The National Association of Realtors (NAR) has begun the process of revoking the charter for Phoenix Realtors after the Arizona-based group refused to withdraw its planned MLS Choice program.
Real Estate News received an emailed statement from NAR that claimed Phoenix Arizona violated the national organization’s bylaws and constitution by “offering a non-Realtor membership option.” In a separate email, NAR General Counsel Lesley Muchow announced that the national organization “has no choice but to defend the Realtor trademark, our integrated model, and Realtor and consumers they serve. Without action, we put the benefits NAR member rely on – such as market research, business resources, a unified advocacy platform and a single Code of Ethics – at risk.”
Phoenix Realtors introduced MLS Choice earlier this month, promoting it as being “the first time brokers will be able to offer their agents the opportunity to access both the MLS and legal forms, along with several existing benefits, outside of the traditional three-tier membership system with local, state and national associations.” Phoenix Realtors stressed this was possible because “NAR changed its mandatory MLS policy at the 1994 NAR Mid Year Meetings to eliminate the requirement that participants in realtor-association MLSs must be realtor association members. As a result each MLS may determine for itself whether non-members will or will not be permitted to participate in the MLS.”
Phoenix Realtors CEO Andy Fegley issued a statement noting MLS Choice was a fee-based subscription for real estate professionals and those who take advantage of it cannot call themselves realtors or have access to NAR-exclusive benefits.
“There is a difference between increasing choice and replacing it, and we will always proudly support and champion realtors,” Fegley said, adding his group was eager to “engage in an amicable path forward with NAR so that we can best serve our industry’s real estate professionals.”
According to Muchow, NAR’s charter revocation process will require Phoenix Realtors to “review its reasons for non-compliance.” If the panel rules against Phoenix Realtors, the group will be given a deadline to stop MLS Choice. If Phoenix Realtors, another hearing will be held before members of NAR’s Executive Committee, which could recommend the revocation of the charter, which would be voted upon by the full Executive Committee.
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