Pushback over going “clear”: NAR sued for pocket listing ban

Real estate association’s Clear Cooperation Policy, particularly attractive for celebrity home sellers, took effect this month

TRD NATIONAL /
May.May 11, 2020 02:00 PM
CAP: NAR President Vince Malta and TAN founder David Faudman (Credit: YouTube, NAR, iStock)

CAP: NAR President Vince Malta and TAN founder David Faudman (Credit: YouTube, NAR, iStock)

The National Association of Realtors is facing a lawsuit for effectively barring its members from taking off-market listings, often called pocket listings.

The suit was filed by Top Agent Network, a networking and communication platform open to agents that meet a certain criteria, according to the Wall Street Journal. NAR’s open listings policy went into effect on May 1.

Top Agent Network filed the suit in the U.S. District Court for the Northern District of California. It names NAR — the nation’s most powerful real estate trade organization — as a defendant, along with its California subsidiary, and its San Francisco subsidiary specifically.

NAR’s board approved its controversial “Clear Cooperation Policy” late last year. The policy requires brokers to submit a listing to a multiple listing service within a business day of marketing a property to the public.

Much of the backlash to NAR’s policy came from agents who take on pocket listings and increasing number of private listings platforms that depend on them.

Pocket listings are most popular at the highest end of the residential market — including San Francisco and Los Angeles — and especially attractive for celebrity clients who want to maintain their privacy.

NAR and its affiliates operate many of the MLS platforms across the country and supporters of the rule have argued that the Clear Cooperation Policy will help MLS platforms compete with private listing platforms.

Top Agent Network founder David Faudman said that the rule could “destroy” his business and said the NAR is “trying to eliminate competition” with the rule. [WSJ] — Dennis Lynch


Related Articles

arrow_forward_ios
The custom-built home (Credit: WSJ)

Aspen home with oxygen-pumping system hits market for $49M

Aspen home with oxygen-pumping system hits market for $49M
(iStock)

Pandemic slammed brakes on nearly half of would-be homebuyers: Survey

Pandemic slammed brakes on nearly half of would-be homebuyers: Survey
The final week of June saw the average loan size hit $360,300, a record high in the history of MBA’s purchase index (iStock)

Size of home purchase loans hits record high

Size of home purchase loans hits record high
(iStock)

Home loans are getting bigger, even as application volume drops

Home loans are getting bigger, even as application volume drops
(iStock)

Party’s over? Applications for homes loans fall

Party’s over? Applications for homes loans fall
Housing construction hasn’t recovered to pre-pandemic levels yet, but more permits were issued last month than expected. (Credit: iStock)

Housing starts are still low, but jump in permits suggest builders are planning

Housing starts are still low, but jump in permits suggest builders are planning
Mortgage Banker Association’s weekly index shows another increase in purchase applications for home loans during the second week of June 2020 (iStock)

Mortgage applications to buy homes hit 11-year high

Mortgage applications to buy homes hit 11-year high
The pandemic has brought a silver lining for Lennar

The pandemic has brought a silver lining for Lennar

The pandemic has brought a silver lining for Lennar
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...