Whether or not it’s refining your corporation mannequin, mastering new applied sciences, or discovering methods to capitalize on the subsequent market surge, Inman Join New York will put together you to take daring steps ahead. The Subsequent Chapter is about to start. Be a part of it. Be part of us and 1000’s of actual property leaders Jan. 22-24, 2025.
4 days after the Nationwide Affiliation of Realtors issued a cease-and-desist letter over its MLS Alternative membership, Phoenix Realtors has responded.
Andy Fegley | Credit score: LinkedIn
“We are surprised to learn that NAR would view increased options as a threat, and we’ve engaged in meaningful discussion with them to help alleviate their confusion,” he added. “Our primary goal is to engage in an amicable path forward with NAR so that we can best serve our industry’s real estate professionals.”
Fegley additionally shared PAR’s counsel’s letter to NAR, which reiterated the variations between NAR and MLS Alternative memberships and outlined the laws that help the creation of MLS-only merchandise for non-Realtors.
“NAR asserts that MLS Choice is a PAR ‘membership option’ and that ‘PAR is allowing real estate licensees to become a member [sic] of PAR through ‘MLS Choice’ without joining the state or national association,” the letter learn. “As PAR has explained repeatedly, MLS Choice does no such thing … Like other associations across the country, PAR has offered an MLS-only product for years — for example, MLS access to non-Realtor builders. MLS Choice is not a departure from that.”
MLS Alternative — previously often known as MLS Solely — has lengthy been utilized by Arizona brokers in circumstances the place brokers aren’t required to keep up three-way memberships to entry the Arizona Regional A number of Itemizing Service. That possibility was made doable by a 1994 NAR rule that eradicated the requirement that contributors in Realtor-association MLSs have to be Realtor affiliation members. That left MLSs to determine whether or not subscribers wanted to be Realtor members, which has remained a standard requirement at the moment.
Non-Realtors can subscribe to MLS Alternative for $249 to realize entry to state-compliant kinds, authorized assist and persevering with training with out becoming a member of NAR, the Arizona Affiliation of Realtors or PAR. Brokers becoming a member of MLS Alternative can’t name themselves Realtors and gained’t have entry to NAR advocacy, enterprise instruments, training alternatives and certifications — variations which might be specified by a color-coded chart on PAR’s web site.
“As the chart makes clear, using easy-to-understand colors and graphical depictions, MLS Choice does not include membership in PAR,” the letter learn. “Nor does it include benefits of any level of association membership. Instead, MLS Choice is an option for brokers to subscribe to MLS and other educational and business services that NAR does not dispute may be offered by PAR to non-Realtors.”
PAR’s counsel stated the cease-and-desist letter is finally a manufactured alternative to defend its three-way settlement coverage, which is on the middle of a number of antitrust lawsuits in California, Texas and Michigan. PAR claimed NAR grew to become conscious of MLS Alternative on Oct. 15, when NAR First Vice President-Elect Christine Hansen allegedly realized about MLS Alternative from a neighboring affiliation and advised fellow NAR leaders. Nonetheless, PAR stated NAR waited till Dec. 18 to ship its demand.
“NAR left PAR a mere three business days to obtain counsel, discern NAR’s poorly articulated concerns, which NAR could have raised any time in the preceding eight weeks, and attempt to address them,” the letter learn. “PAR questions NAR’s motivation in waiting until the eve of two major winter holidays to raise its concerns, but nonetheless PAR immediately retained counsel … PAR recognizes that NAR wants an occasion to defend its ‘three-way agreement’ requiring licensees to belong to local, state, and national associations to receive Realtor benefits, but this is not that occasion.”
PAR’s counsel stated they spoke with NAR on methods to make MLS Alternative promotional materials “even more clear” concerning the variations between the memberships, however NAR and its counsel had been allegedly “expressly uninterested” in any choices exterior of PAR canceling the membership.
Nonetheless, PAR stated it’s unwilling to withdraw the MLS Alternative possibility and can cost ahead with its rollout, regardless of NAR’s authorized risk.
“PAR respectfully asks that NAR reconsider its position and engage in meaningful conversation about solutions rather than using NAR’s substantial financial superiority to quash PAR’s effort to innovate and serve the demands of the real estate market,” the letter ended. “There is no doubt that NAR’s now nationally publicized threats against PAR will, as NAR seems to have intended, chill the innovation of other associations and MLSs.”
“Nevertheless, if NAR is willing to talk, PAR would like to hear, listen, and engage in discussion,” it added. “But PAR will not categorically withdraw MLS Choice which you told me is the only response to the Demand that NAR will accept.”
Inman reached out to NAR about PAR’s letter, and an affiliation spokesperson stated NAR is resolute in its stance about MLS Alternative. The following step, they stated, shall be revoking Phoenix Realtors constitution.
“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,” they added. “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.”
Lesley Muchow
In a earlier Inman article, NAR Basic Counsel Lesley Muchow stated PAR’s protection of MLS Alternative falls flat, as NAR already doesn’t require brokers to be Affiliation members to entry an MLS.
“NAR continues to promote competition and supports pro-consumer local broker marketplaces,” she added. “This is a matter of maintaining standards for the Realtor brand as we always have and will continue to do.”
E mail Marian McPherson
