NAR Alternative Trade Group: ‘Clear Cooperation’ Should Be ‘Clear Collaboration’

Above, Jason Haber, co-founder of the American Real Estate Association

When in February of 2024 a new organization, the American Real Estate Association (AREA, our acronym, not theirs), was launched as a potential alternative to the embattled National Association of REALTORS® (NAR), founders Jason Haber, with Compass, and The Agency’s Mauricio Urmansky, did not have much more than hopes and ideas that it could move forward. 

But slowly and surely it has, with a “listening tour” held in March, an advisory group created in May and a two-tier membership program offered in August. Now, the trade group has its own idea about NAR’s controversial Clear Cooperation rule, sharing with members on March 7 its own more flexible policy, terming it Clear Collaboration.

“Our proposal gives sellers the decision on when, how and where to list their home,” Haber told RISMedia. “It empowers them to make the best decision for themselves. It provides for consumer choice while at the same time it provides for full transparency within the industry.”

The Clear Collaboration proposal, which is designated as a “working draft,” is somewhat sparse on details, but the main way it would differ from NAR’s Clear Cooperation Policy is in explicitly removing the obligation to syndicate listings to the portals (while still requiring they are submitted to the MLS). Placing listings on the portals would still be an option, but “sellers can opt to keep (listings) off public-facing consumer sites.”

“Real estate professionals, under our plan, would still be required to collaborate with one another. This means firms big and small are not cut out of sharing listing data and information. This is a reasonable and balanced approach that is good for our industry and for the consumer,” Haber says.

Haber tells RISMedia that this will require adjustments from MLSs, as nearly all of them have existing agreements with portals to provide their listings.

“MLSs, depending on their contractual agreements, may need to phase this in,” he says. “We believe, in general, that the MLSs should be directing a lot of this since it’s their data and members we are really talking about here. Going forward, MLSs can adopt the spirit of Clear Collaboration into their policies and future contracts.”

Subheading it as “mandatory submission, not mandatory marketing,” AREA explained in its missive to members that Clear Collaboration is a modern, consumer-focused policy.

“Clear Collaboration is a balanced, fair policy that respects seller choice, ensures professional access to listings and fosters a competitive real estate environment,” the proposal claims.

Haber also highlights potential scrutiny from the Department of Justice (DOJ), which has indicated it is still unhappy with many NAR-created policies and practices, including Clear Cooperation. He says that Clear Collaboration “aligns more with DOJ concerns, specifically citing arguments made by DOJ lawyers saying that Clear Cooperation limits homeseller choice.

“Our conviction that change is needed is bolstered by recent court decisions,” he says.

Additionally, the “working draft” argues that Clear Collaboration will continue to provide transparency and level the playing field by still requiring that listings are submitted to the MLS. Listings that are not syndicated on the portals “can adhere to different requirements, such as modified photography policies or restricted data fields, to protect seller privacy.”

The policy also foreshadows stronger penalties than Clear Cooperation, which some have claimed is not being enforced by many MLSs, while also leaving the specific window to submit listings open-ended. Violators would risk losing IDX access, according to the working draft.

“Clear Collaboration (also) permits a reasonable period for agents and brokerages to share listings internally before submitting to the MLS, allowing for customized marketing strategies while preventing monopolization of data,” the policy reads.