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Four days after the National Association of Realtors issued a cease and desist letter over its MLS Choice membership, Phoenix Realtors has responded.
Andy Fegley Credit: LinkedIn
“Our intentions behind MLS Choice could not be clearer. This is another option that is both legally sound and a responsible proposition for a changing industry.” PAR CEO Andy Fegley said in an emailed statement to Inman late Monday. “MLS Choice is not and never will be a membership for real estate agents. It is a paid subscription. There is a difference between increasing choice and replacing it, and we always pride ourselves on real estate agent We will support and defend it.”
“We were surprised to hear that NAR views increased choice as a threat and have had meaningful discussions with them to alleviate their confusion,” he added. “Our primary goal is to work toward amicable progress with NAR so that we can best serve real estate professionals in the industry.”
Fegley also shared a letter from PAR’s attorneys to NAR that reiterates the differences between NAR and MLS Choice membership and outlines regulations that support the creation of MLS-only products for non-real estate agents. did.
“NAR claims that MLS Choice is a ‘membership option’ for PAR and that ‘PAR permits real estate licensees to become members.’ [sic] “You can earn PAR status through MLS Choice without joining a state or national association,” the letter said. “As PAR has repeatedly explained, MLS Choice does no such thing…Like other associations across the country, PAR has offered MLS-only products for years. “MLS Choice doesn’t deviate from that, for example, MLS access to non-realtor builders.”
MLS Choice (formerly known as MLS Only) has long been used by brokers in Arizona when agents do not need to maintain a three-way membership to access the Arizona Regional Multiple Listing Service. It has been. This option was made possible by the 1994 NAR Regulations, which removed the requirement that participants in a Realtor Association MLS must be members of a Realtor Association. This left the MLS to decide whether a subscriber was required to be a real estate agent member, which remains a common requirement today.
Non-Realtors can join MLS Choice for $249 and gain access to state-compliant forms, legal aid, and continuing education without joining NAR, Arizona Association of Realtors, or PAR. Agents who participate in MLS Choice cannot call themselves real estate agents and do not have access to NAR’s advocacy, business tools, educational opportunities, or certifications. These differences are displayed in color-coded graphs on the PAR site.
“MLS Choice does not include membership in PAR, as illustrated by the use of clear colors and graphic depictions,” the letter reads. “It also does not include the benefits of association membership at any level. Instead, MLS Choice is an option for brokers to join the MLS and includes other educational and business services that NAR does not object to. may be provided to non-real estate agents by PAR.”
PAR’s lawyers say the cease-and-desist letter is ultimately a fabricated opportunity to defend the company’s tripartite agreement policy, which is at the center of several antitrust lawsuits in California, Texas, and Michigan. said. PAR said NAR learned of MLS Choice on October 15th, when NAR First Vice President-elect Christine Hansen learned about MLS Choice from a neighboring association and informed other NAR leaders. He claimed to have told him. However, PAR said NAR waited until Dec. 18 to send its request.
“NAR left PAR after just three business days to seek legal counsel and assess and address NAR’s poorly worded concerns that could have been raised at any time during the past eight weeks,” the letter said. ” is written. “While PAR questions NAR’s motives for waiting until the eve of two major winter holidays to raise concerns, PAR nevertheless immediately hired legal counsel… Local, state and national associations can receive real estate agent benefits, but this is not one of those opportunities.”
PAR’s attorneys said they have talked with NAR about how to make the membership distinctions “more clear” in MLS Choice’s promotional materials, but NAR and its attorneys said that options other than canceling PAR’s membership are “not obvious.” It is said that he had no interest in
However, PAR said it has no intention of withdrawing the MLS Choice Option and will move forward with its rollout, despite NAR’s legal threats.
“Rather than use NAR’s substantial financial advantages to counteract PAR’s efforts to innovate in response to the demands of the real estate market, PAR urges NAR to reconsider its position and come up with solutions.” “We respectfully request that we engage in meaningful dialogue regarding this issue,” the letter concludes. “There is no doubt that the threat to PAR that NAR is currently announcing nationally will chill innovation in other associations and MLS, as NAR intended.”
“Nonetheless, if NAR is open to discussion, PAR would like to listen, listen and participate in the discussion,” he added. “But PAR has no intention of flatly rescinding MLS Choice, which you told me was the only answer to the request that NAR would accept.”
Inman contacted NAR about PAR’s letter, and an association spokesperson said NAR is taking a firm stance regarding MLS Choice. The next step is to cancel the contract with Phoenix Realtors.
“Under our charter from the NAR, state and local entities are prohibited from adopting practices that violate NAR’s bylaws and bylaws,” a spokesperson told Inman in an emailed statement. “Phoenix Realtors is violating NAR’s Bylaws and Terms of Service by offering non-Realtor membership options. We have no choice but to take action to protect consumers.”
“Failure to act will jeopardize the benefits and very organization that NAR members rely on, including market research, business resources, a unified advocacy platform, and a single code of ethics,” they added. Ta. “NAR has begun the process of revoking Phoenix Realtors’ charter as set forth in its bylaws. As a next step, Phoenix Realtors will have the opportunity to meet and discuss with a panel of NAR’s Executive Committee. If the local association continues to violate NAR policies, a hearing will be scheduled by a larger committee of the Executive Committee.
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In a previous Inman article, NAR’s General Counsel Leslie Muchau argued that PAR’s defense against MLS Choice is entirely because NAR does not already require agents to be association members to access MLS. He said he was failing.
“[Realtor associations] In an email to NAR’s Board of Directors and association leaders, Muchau wrote: Strengthen the real estate agent organization that benefits its members and the consumers it serves, and set and enforce standards of ethical real estate practice. He said it was intended to. “To be clear, NAR does not require real estate professionals to be members of a real estate agent association in order to access the MLS. MLS participation is determined at the local level.”
“NAR continues to foster competition and support the local broker market for consumers,” she added. “This is a matter of maintaining the standards of the Realtor brand, as we have always done and always will.”
Email Marian McPherson
