Breaking News on MLS Choice and NAR

Breaking News on MLS Choice

The Phoenix REALTORS® and NAR have reached a resolution of their dispute regarding the proposed “MLS Choice” policy and NAR’s three way agreement.

Phoenix REALTORS® stated that it has eliminated its “MLS Choice” membership option but will continue to offer non-REALTORS® access to ARMLS as it has done since 1996. In addition, Phoenix REALTORS® will provide certain products and services to non-REALTOR® licensees who purchase non-member MLS Access. Phoenix REALTORS® emphasizes that non-member MLS Access is not a membership of any kind and licensees who purchase non-member MLS Access are not REALTORS®, may not use the REALTOR® mark, and would not belong to local, state, or national REALTOR® associations, or have access to the many benefits of REALTOR® membership. With these clarifications and updates, Phoenix REALTORS® will retain its charter.

We covered the background of the dispute last month in a TDA article — https://thedataadvocate.com/mls-choice-and-the-nar-three-way-agreement

NAR Statement

NAR President Kevin Sears stated that “From the beginning, we’ve taken this matter very seriously, carefully following our established processes as outlined in our Bylaws and Charter Revocation Procedure. We are pleased that process ultimately led us to productive discussion and a path forward for Phoenix REALTORS® to retain its charter.

During this process, we received some questions about NAR’s position on compliance and MLS access. First, I’d like to say that our policy about MLS access has not changed. MLSs have local discretion to determine individual participation requirements based on their market and applicable law. MLS participation is determined at the local level, and in Phoenix, ARMLS is and has long been open to non-REALTORS®. This matter was never about MLS access.

Separate from MLS access, local associations also retain the discretion to sell services and resources to non-members but cannot offer non-REALTOR® memberships to brokers and agents unless in a form expressly permitted by NAR’s Constitution and Bylaws.

The issue here came down to the fact that promoting an offering that both explicitly and implicitly acted as a membership option is in clear violation of NAR’s Constitution, Bylaws, and the Three-Way Agreement. NAR’s integrated model is core to who we are and the benefits we provide our members and consumers at the local, state, and national levels. It is critical we maintain the rigorous standards of the REALTOR® brand and our Code of Ethics. It’s what sets us apart from other real estate professionals.”

Products and Services For Non-Members

Sears then directed attention to some new NAR guidelines about providing products and services to non-members –

https://www.nar.realtor/ae/manage-your-association/non-member-products-services-guidelines

NAR considers several factors in determining whether an offering effectively functions as a membership or is otherwise in violation of NAR’s Constitution and Bylaws. These include, but are not limited to, whether the non-member products or services are:

• Advertised and marketed explicitly or implicitly as a membership;
• Available in exchange for annual dues (rather than for purchase or at a fee);
• Available in an aggregated bundle of products and services similar to a REALTOR® membership rather than individually (à la carte) or in a limited offering. For example, NAR will evaluate if there is sufficient differentiation in the products or services available to members and the products and services available for purchase by non‑members;
• Associated with attributes of membership rather than related to MLS participation;
• Offered in a manner that seeks to circumvent the Three-Way Agreement and the requirement for membership in the national and state associations;
• Offered in a manner that results in trademark infringement, could create market and consumer confusion, or may dilute the REALTOR® brand;
• Offered in a manner that involves false, deceptive, or misleading practices or representations.