In an escalating dispute between the National Association of REALTORS® (NAR) and Phoenix Association of REALTORS® (PAR) that seems to grow more intense by the day, NAR is now apparently planning action to revoke PAR’s charter over its refusal to cease and desist allowing agents and brokers to access listing services without NAR membership.
In a letter to NAR December 23, lawyers for PAR said the organization will not accede to NAR’s demand to withdraw its new MLS Choice membership option. In response, according to a PAR spokesperson who emailed RISMedia with the new information, “NAR notified Phoenix REALTORS® of its intent to move forward with the charter revocation process that (same) evening.”
According to NAR’s website, the charter revocation process happens, “…in the event a state or local association violates…the NAR Constitution or Bylaws and such association continues to operate knowingly and willfully out of compliance with mandatory policies adopted by the NAR Board of Directors.”
On Christmas Eve, PAR provided RISMedia with a statement from CEO Andy Fegley.
“NAR’s decision to move forward with charter revocation is a disservice to the industry,” the statement read. “We’ve been transparent from the beginning that the MLS Choice subscription is a scaled-down option of non-membership for real estate professionals to consider. It allows them to ask the question, ‘What level of programs and services do I actually need to be successful?’ And anyone serving real estate professionals should stand in support of that: creating the ideal environment for success. A ‘one-size-fits-all’ approach does nothing to spur this industry forward, something that desperately needs to happen.
“We are committed to REALTORS® and evolving alongside a changing industry–but NAR has clearly committed to hampering innovation. We are prepared to continue defending the necessity of subscription options like MLS Choice, and we stand behind all of the professionals we serve.”
Additionally, RISMedia was given access to a three-page letter from PAR legal counsel Christopher R. Osborn, addressed to NAR attorney Christopher M. Curran, which included PAR’s reservation of rights to “pursue all legal and equitable remedies in anticipation of litigation as the only forum available for resolution of this dispute.”
Other PAR positions stated in the letter are that:
- NAR continues to misrepresent MLS Choice. MLS Choice is an option for Phoenix area brokers to purchase MLS access and services necessary to practice real estate without being required to join an association of REALTORS® at any level. I don’t know how PAR can make that clearer.
- NAR is being unreasonable. NAR provided notice of its incorrect position that PAR is somehow violating NAR’s constitution and bylaws a mere four business days before determining alleged non-compliance.
- PAR demands that NAR cease and desist from enticing PAR members to leave PAR. PAR is disappointed that NAR has apparently already predetermined the outcome, stating that “reasonable efforts” to work with PAR to resolve this situation “will continue to fail.”
- PAR seeks an amicable resolution. PAR is willing to engage in dispute resolution discussions. PAR simply requires NAR to come to the table in good faith, which NAR has yet to do. PAR looks forward to further explaining its position to the first charter revocation panel.
A NAR spokesperson provided RISMedia with this statement:
“Under their charters from NAR, state and local associations are prohibited from adopting any practice inconsistent with NAR’s bylaws and Constitution. Phoenix REALTORS® is violating NAR’s bylaws and Constitution by offering a non-REALTOR® membership option. NAR has no choice but to take action to defend the REALTOR® trademark, our integrated model, and the members and consumers they serve. Without action, we put the benefits NAR members rely on—such as market research, business resources, a unified advocacy platform, and a single Code of Ethics—and the organization itself at risk.
NAR has begun the process—as outlined in our bylaws—to revoke Phoenix REALTORS®’ charter. As a next step, Phoenix REALTORS® will have an opportunity to meet and discuss with a panel of NAR’s Executive Committee. Should the local association continue to violate NAR policy, a hearing before a larger panel of our Executive Committee will be scheduled.”
