Checking in here with some brief updates on all things CRMLS, C.A.R., and the new CCP policies adopted by NAR. As many readers likely know, NAR updated its CCP policy in March of this year by creating the “Multiple Listing Options for Sellers” that allows for “Delayed Marketing” of a property on the MLS in certain circumstances (the “New policy”). Since the change, one of the oft-repeated questions we have been receiving from practitioners is: “Does this change the MLS and how I use it?” This article will discuss CRMLSs position on the new policy changes and what REALTORS® can expect when using CRMLS on behalf of their clients.
A Brief History of CCP
Prior to the recent policy change, the CCP required that all properties be listed on the Multiple Listing Service (“MLS”) within one day of being publicly marketed. Readers will remember, the CCP was adopted by NAR in 2019 out of a concern for the rising risk of antitrust liability facing the real estate industry (a concern that was warranted given the antitrust litigation of the last six years). The original intent of the CCP was to create more transparency by ensuring properties were widely marketed on the MLS to prospective buyers, thereby preventing would-be industry gatekeepers (and actual gatekeepers) from limiting the availability of the properties to only a few select industry insiders off the MLS.
Essentially, under the new position, NAR has made a carveout to the “one day rule.” Now, sellers can choose to delay marketing their property under what is called a “delayed marketing exempt option.” The delayed marketing exempt option allows sellers to hold off on marketing their property via the Internet Data Exchange (“IDX”) for a set time period (MLSs will have local discretion to determine that time period). Sellers can also opt for an “office exclusive exempt listing,” which permits the seller to market the property exclusively through a broker’s system for a set time. Under both of these options, a full disclosure of the benefits of full exposure marketing on the MLS and IDX must be signed by the seller.
CRMLS’s Position
CRMLS, which is the largest MLS in the world, has decided not to incorporate the New Policy. CRMLS has flagged several issues it finds concerning about the new policy, including but not limited to: it views the new policy as confusing, as not clearly addressing actual consumer concerns or needs, and being at risk of reducing the transparency that CCP aimed to create.
But what does this mean for the relationship of NAR and CRMLS (and for REALTORS® who are using CRMLS)? Many REALTOR® Associations and Realtors® have expressed concern that with CRMLS and NAR seemingly at odds on the policy, there could be a potential impact to those Associations who are stakeholders in CRMLS as well as their members.
Behind the scenes, NAR and CRMLS have engaged in conversations regarding CRMLS’s position on the New Policy. To date, NAR has indicated to CRMLS that its position falls within the discretion and guidelines laid out by NAR on the New Policy. Further, NAR has provided confirmation to CRMLS, that despite the different views the two organizations have on the issues raised by the New Policy, NAR is fully compliant with NAR’s guidance and rules on the New Policy. For now, at least, readers who regularly use CRMLS can do so knowing NAR has indicated CRMLS is in compliance with NAR’s guidelines regarding the New Policy.
The California Association of REALTORS®’ (“C.A.R.’s”) Position
While C.A.R. has not issued an official statement on the New Policy, it has noted the original iteration of the CCP does significant work to protect rights on the fair housing front. Harkening back to the original reasoning for adopting the CCP in the first place, C.A.R. notes that “By requiring that most properties be listed on an MLS promptly, the policy minimizes the number of pocket listings — a tactic where homes are selectively marketed to a limited, private audience, often excluding entire communities.” (Ibid.) It will be interesting to see what type of official position C.A.R. takes, if any as we get closer to the September deadline.
Conclusion
As with all things in the real estate industry, the only thing set is stone, is the fact that nothing is set stone. That being said, REALTORS® who use CRMLS can do so without worrying whether they are running afoul of NAR. NAR has communicated to CRMLS its position falls within NAR’s guidance and complies with NAR’s rules at this time. When it comes to C.A.R., while no official stand has been taken, the signals tend to suggest that it agrees with principles of CRMLS’s position. It will be interesting to watch how NAR navigates potentially having C.A.R. and CRMLS (two of the biggest organizations in the industry) both take official stands against it.
