Section B · Organized Real Estate
Drive Market Transparency: The Clear Cooperation Path Forward
The industry is split on the Clear Cooperation Policy (CCP). NAR needs to take a decision on what Clear Cooperation should be, and work to unite the industry behind this vision.
In Context
NAR implemented the CCP in November 2019 (effective May 1, 2020) in response to concerns that off-MLS listings were disadvantaging buyers and sellers. The policy has since faced legal challenges and criticism, while drawing attention from federal regulators who—after overseeing the removal of compensation from the MLS—now appear to question requiring submission of publicly marked listings to the MLS.
The CCP mandates that brokers, and by extension sellers, must enter listings into the MLS under specific conditions or face penalties. Listing on the MLS provides sellers with broader exposure to potential buyers through other agents, though commissions from double-sided in-house transactions are typically lower than those involving separate listing and selling agents. Additionally, the MLS displays price drops and days on market, which gives buyers valuable insights that helps them identify slower-moving listings and make competitive offers. Critics argue that this transparency can hurt sellers by highlighting the property’s time on the market.
The Opportunity
Opportunity: Keeping CCP
The CCP garners support from small and some large brokers for promoting fair housing and limiting brokers from serving both buyers and sellers in the same transaction. It curtails larger brokerages dominating both sides of a transaction by preventing them from withholding properties from the MLS to increase the chances of double-ending transactions. If the policy is rescinded, smaller firms could be disadvantaged due to reduced access to listings. Aggregators and paper brokerages, which have built consumer portals reliant on MLS data to generate leads and referrals, also defend the CCP, as they benefit from comprehensive listing access.
Opportunity: Removing CCP
Larger brokers argue that the CCP is “anti-homeowner” because it forces sellers to display “negative insights,” such as days on market, which can put them at a disadvantage during negotiations. These brokers contend that the MLS exists to provide listings on behalf of homeowners, and sellers should have the freedom to choose how to market their property. While most sellers use the MLS for its ability to generate broad exposure, given shrinking margins that some larger brokers prefer to retain as many in-house transactions as possible to increase market share.
An updated guideline from NAR is needed soon.
Perspective
The term “consumer” is often used broadly to imply that if something benefits consumers, it must be the right course of action. However, consumers have diverse needs and perspectives; one size does not fit all. Supporters of the CCP typically focus on homebuyers, while those advocating for its removal emphasize the interests of home sellers. The larger opportunity for the industry lies in uniting to ensure that consumers, brokers, and agents continue to have access to transparent real estate marketplaces, which underpins the dynamic U.S. real estate industry and is envied worldwide.
The Transition
More Transparency
More Lawsuits
Fewer Lawsuits
Less Transparency
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