NAR Updates Clear Cooperation Policy: New Options for Sellers
The National Association of Realtors (NAR) has announced a significant revision to its Clear Cooperation policy, aimed at increasing seller autonomy in marketing their properties. This change comes in response to ongoing investigations by the Justice Department, which raised concerns about potential anti-competitive practices within the association.
Background on Clear Cooperation Policy
Initiated in 2018, the Clear Cooperation policy mandates that NAR members publish their property listings on their local Multiple Listing Services (MLS) within one day of publicly advertising the property. Critics have argued that this requirement restricts sellers’ ability to control the marketing avenues for their listings.
Introduction of Delayed Marketing Exempt Listings
In a recent statement, NAR unveiled a new classification of listings known as “delayed marketing exempt listings.” This revision enables sellers to instruct their listing agents to postpone the marketing of their properties via Internet Data Exchange (IDX) and syndication for a predetermined duration. The specific length of this marketing delay will be determined by individual MLSs, allowing them to tailor it to their local market needs.
Impact of the Policy Amendment
Despite pushback from online listing platforms like Zillow, who depend heavily on IDX for populating their sites, the overall influence of this change on listings may be minimal. Currently, only about two percent of property sales occur without being featured on any MLS. This alteration appears primarily aimed at alleviating concerns from the Justice Department and may serve as a proactive measure to mitigate future legal challenges, including those related to litigation from Top Agent Network, which is a competitor in the real estate market.
Legal Challenges Facing NAR
In recent years, NAR has encountered a series of legal hurdles, including notable lawsuits regarding buyer commissions. The association has made headlines for agreeing to a substantial settlement of $418 million related to these disputes. While some stakeholders pushed for the complete abolition of the Clear Cooperation policy, modifying it might be a strategic step to preempt further legal complications and prevent costly settlements in the future.
Conclusion
As NAR continues to navigate a complex legal landscape, the recent amendment to the Clear Cooperation policy represents an effort to balance seller rights with the demands of regulatory scrutiny. This shift not only empowers sellers with more marketing flexibility but also signals NAR’s commitment to adapting to an evolving real estate environment.