Changes to NAR Clear Cooperation Policy: A New Era for Sellers
The National Association of Realtors (NAR) is taking significant steps to revise its Clear Cooperation policy, a rule establishing how property listings are managed within Multiple Listing Services (MLS). This update comes in the wake of ongoing scrutiny from the Justice Department regarding potential anti-competitive practices.
Background on the Clear Cooperation Policy
The Clear Cooperation policy mandates that NAR members must submit any listing to their local MLS no later than one day after it has been publicly marketed. Critics of this rule have long contended that it restricts sellers’ autonomy in determining the marketing strategy for their properties.
The Latest Amendments
In a notable policy shift, NAR announced an amendment allowing sellers to opt out of syndicating their listings. This change introduces a new classification known as “delayed marketing exempt listings.” According to NAR, this exemption grants sellers the ability to instruct their listing agents to postpone marketing the listing through the Internet Data Exchange (IDX) and syndication for a specific duration. Each MLS will have the authority to establish the duration that aligns with their local market dynamics.
Reactions and Implications
Despite this reform, some stakeholders have expressed concerns, particularly online listing platforms like Zillow, which heavily rely on IDX for populating listings on their sites. Nevertheless, data suggests the impact on online listings may be minimal; currently, only around two percent of property listings are sold without being featured on the MLS.
This adjustment appears strategically aligned with NAR’s efforts to appease the Justice Department during its investigation while also serving to protect the organization against potential legal claims, including a lawsuit from Top Agent Network, which advocates for a more exclusive platform for real estate transactions.
A Response to Legal Challenges
The NAR has been under mounting pressure from various legal challenges, most notably those related to buyer commissions. As a result of these lawsuits, the organization has already agreed to settle claims totaling $418 million. While many in the real estate community had hoped for a complete repeal of the Clear Cooperation policy, its modification may suggest a proactive approach to mitigating future legal exposures.
As the landscape of real estate continues to evolve, these changes may redefine how agents and sellers approach marketing strategies, ultimately providing sellers with greater flexibility in their property promotion efforts.
For further insights and details regarding this pivotal shift in real estate practice, refer to NAR’s official communication on the matter.
