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.
Good for Phoenix! We are not slaves to the NAR but desire some freedom. The NAR is not our friend
Our realty business will only benefit from more choice.
It looks like Phoenix took the first step to support the agents it’s job is to support. NAR fell down on it’s obligations. They’re an anchor on agents.
NAR opened all Realtors up to lawsuits by settling and it is only getting worse. Now they want to go after Associations. They are trying to protect their personal wallets and trying to pay for more advertising to try and smooth things over. I think it is time for local associations to serve the needs of their agents. They know what is appropriate for our communities. Realtors work hard for the listings and Realtor.com, Homes.com and Zillow are profiting from it. I was considering going Choice, but I still have to abide by NAR’s policy to use the MLS. But I love where Phoenix is going with it! Go Phoenix!!
NAR has NOT done the right things for a long time—it’s been in the news for years. It’s about time that brokerages push back, on membership in this particular trade organization.
Exactly
As a broker I am totally 100% behind Phoenix and think all MLS should adopt their policy. I have always felt that both NAR and CAR are organizations that have been forced upon agents and are an unfair restraint of trade, and should be prohibited. Agents should be allowed to determine which organizations they want to become a member of, and not have their hard earned income going to organizations that are not providing them any return on investment. I think all agents should refuse to pay NAR dues and sue them if they try to limit their access to MLS in any way. I hope the DOJ continues investigating NAR and frees agents from their unfair forced labor practices.
NAR has outlived its usefulness. They failed miserably this past year on so many levels. Time for them to go.
This could be one of the dominoes that causes NAR to fall. If other states follow Phoenix Realtors example quickly, NAR will not be able to stop it.
NWMLS in Washington State is not owned by the Realtors and doesn’t require you to be a Realtor to have a membership. About 50% of Real Estate Brokers in Washington are non-Realtors.
I agree agents should not be forced into paying to support an organization if they feel it is not only not working for our benefit of late, but actually hurting it. The sexual harassment on top of caving on the lawsuit has significantly harmed our industry, and opened the door to continue in that direction. I do understand that the risk of losing was huge, but the case just should have been defended better and not have gone in that direction. I would not join IF I was allowed a choice, and feel it isn’t right to be FORCED to have to join and pay for it – even if the lawsuit didn’t happen. There should be a choice!
NAR is making the same mistake governments make: they have forgotten that they exist to serve the members, not the other way around. Rather than offering support and valuable services people will appreciate and happily pay for, they have become an arrogant regulatory regime that enriches its bureaucrats at the expense of its members and the profession It’s the reason so many internet-based and other alternative services have emerged that are reducing, and will ultimately eliminate, the necessity and value of NAR membership.
All MLS’s need to adopt Phoenix MLS’s system, NAR does NOT represent us who are members, they just dictate and destroy opportunities for Buyers and their Agents! The ONLY reason we maintain our pathetic membership is for the RE Forms, nothing else! There was NO Vote or even an opportunity for discussion, the corrupt NAR Leaders sold the Members down the river! We truly believe they need to close up, a fresh, new National Real Estate Entity is in order that only exists to represent Real Estate Agent Members, not the NAR!!!! Being a Member since 1977, no longer is it viable for our business representing our good and wonderful RE Clients!!!!!!!!
The NAR has proven itself to be a self-congratulatory, non-essential layer of bureaucracy that has wedged itself between real estate sales agents and their business . The NAR holds an iron-fist over what should be only the agents’ business. It should be made law that real estate agents have an easy, affordable option to obtain our business tools (MLS, forms, programs, etc) that the NAR makes so difficult for us to do.
I guess I have always had a different view. I believe NAR has created a National playground to allow real estate to have some structure and rules to protect consumers as well as other eal estate players. The State Associations drill down on a more localized level to help maintain an effective playground to conduct the real estate business and act as a buffer between the state licensing division that may control the real estate business. Each local association drills down even further making each local market work effectivly, given the many customs and practices each local market has in place. The various multiple listing services, and there are far too many, offer a different service, from the basic cultivation of information to create an effective marketplace of information. Blaming NAR for the various lawsuits is quite unfair considering that the many comments from “REALTORS” as well as non Realtors and the many listing sites deserve much of the blame. While the overall benefits have changed, the major benefit is still there. Structure is a necessary evil, needed because if we are left to our own devicies, we will create an unstructured real estate marketplace unable to withstand the damage that will be caused. The only reason NAR has so many members is because real estate brokers keep non-productive agents on their books; and even when a broker may look to remove those agents another will gladly bring them on board. 1,500,000 NAR members to help in the sale of maybe 5,000,000 homes a year? Maybe 500,000 members are needed nationwide and a better career will be had by all. Service to consumers would increase and most of the grumbling will go away. Look into thyself, and stop the blame game, for there is plenty of blame for all of us to share. There are plenty of options for anyone who wants to leave NAR and no longer be called a REALTOR. Those who want to leave should just leave, there is no reason to try to destroy what has made many successful. If you belive NAR has lost touch, is no longer relevant then just move on without all the fanfare. You are just playing into the many organizations who want this industry to lose it’s way so that they can come in and scoop it all up. Have you not learned a thing from the many websites, corporate investors and real estate disrupters who have profitted from your years of hard work and have their hands more deeply in your pocket that the Realtor Associations?
we would all be more than happy to leave NAR but NAR has made it impossible by requiring local associations to require NAR membership in order to be able to use their MLS, and are collecting NAR dues on their behalf. This is just another way NAR has forced unwanted membership on agents.(is this not a perfect example of unfair labor practices) Since each state has its own real estate governing body and state licenses are not intertwined, why do we need NAR. But you are right, it is time to stop criticizing NAR and start forcing our local associations to stop requiring NAR membership. I hope Phoenix serves as example for the rest of the local and state MLS boards to change their policies and better serve their members. If not I see non-agency MLS platforms proliferating which will solve the problem with NAR and CAR as agent will no longer need to be members of.
I agree with Frank….you make several great points.
Try not to forget “the rungs of the ladder” that got most Realtors where they are today with NAR.
I’ve been a member since 1972 and have seen a lot of change ….more change coming but our business will survive with those that can adjust.
Who knows….maybe AI will try to replace us !