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Compass ditches Clear Cooperation Policy

Brokerage notified NAR, MLS leadership it will ignore national rules

Compass Ditches Clear Cooperation Policy
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Key Points

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This summary is reviewed by TRD Staff.
  • Compass has informed the National Association of Realtors (NAR) and multiple listing services (MLS) that it will no longer comply with the Clear Cooperation Policy (CCP) or any other national MLS rules.
  • The brokerage states it has consistently opposed the CCP since its 2019 inception and has utilized "private exclusives and Coming Soons" to demonstrate its non-adherence to consumer restrictions within the policy.
  • Compass cited the "legal risk" of national rules like the CCP, warning that more class-action lawsuits, distinct from recent commission-focused cases, could be filed against the industry.

Compass is going rogue. 

The residential giant this week notified leadership with the National Association of Realtors and multiple listing services it would not adhere to the Clear Cooperation Policy or any of NAR’s national MLS rules. 

The move advances its yearslong fight over the policy, which it has criticized as anti-consumer and punitive to brokerages. Proponents of the policy say CCP ensures transparency and equal access to listings. 

In its message to NAR leadership, Compass pointed to its opposition to the policy since its inception in 2019. The brokerage said it has “consistently acted to demonstrate its non-adherence” to the rule, which mandates listings are added to the MLS within 24 hours of being publicly marketed, with use of private exclusives and listings marked as “Coming Soon”.

“Programmatically, Compass has not followed any national, mandatory NAR MLS rules in a consistent or coordinated manner,” the message said. “Each MLS in which Compass operates has its own rules, and our agents are trained to comply with local MLS regulations, not national NAR mandates restricting client options.”

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The brokerage has pushed back against local MLSes, including the Northwest MLS, which it sued in April over its rules against pre-marketing and office exclusives, California’s CRMLS and in Chicago via the executives of recently acquired @properties.

In its message to leadership, Compass also cited the “legal risk” of national rules like CCP, warning in the message that more class-action lawsuits could be on the way against the industry group that executed a landmark settlement last year over its commission guidelines. 

“In the coming years, the risk is significant that the industry could face class actions that are distinct from the currently pending compensation-focused cases, with the potential for a significant amount of damages,” said the firm. 

Compass previously pushed for MLSes to ignore NAR’s policy, and Reffkin has been a vocal proponent of repealing it altogether.

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