The National Association of Realtors (NAR) has taken things a step further in its battle with Phoenix Realtors (PAR) over the local trade group’s MLS Choice program. On Monday, NAR notified its leadership and members that it had made the decision to initiate the charter revocation process against PAR.
This came after PAR informed NAR that it would not withdraw or end the MLS Choice membership program.
Through the MLS Choice membership option, real estate licensees are able to become members of PAR and access the local MLS without becoming members of the Arizona Association of Realtors or NAR.
Through MLS Choice, brokers who are PAR members are able to “offer their agents the opportunity to access both the MLS and legal forms, along with several existing benefits, outside of the traditional three-tier membership system,” according to PAR’s website.
Last week NAR sent a cease-and-desist letter to PAR asking it to end the program. At the time, NAR told HousingWire that its actions were necessary to “support and defend the Realtor trademark.”
In response to a question about its decision to begin the revocation process, a NAR spokesperson wrote in an email that per their charters, state and local associations are prohibited from adopting any practice inconsistent with NAR’s bylaws and Constitution.
“Phoenix Realtors is violating NAR’s bylaws and Constitution by offering a non-Realtor membership option. Without action, we put the benefits NAR members rely on—such as market research, business resources, a unified advocacy platform, and a single Code of Ethics—and the organization itself at risk,” the spokesperson wrote. “NAR has begun the process—as outlined in our bylaws—to revoke Phoenix Realtors’ charter. As a next step, Phoenix Realtors will have an opportunity to meet and discuss with a panel of NAR’s Executive Committee. Should the local association continue to violate NAR policy, a hearing before a larger panel of our Executive Committee will be scheduled.”
In an emailed statement, the CEO and President of PAR’s public relations firm Andrea Aker called NAR’s decision “a disservice to the industry.”
“We’ve been transparent from the beginning that the MLS Choice subscription is a scaled-down option of non-membership for real estate professionals to consider. It allows them to ask the question, ‘What level of programs and services do I actually need to be successful?’ And anyone serving real estate professionals should stand in support of that: creating the ideal environment for success,” Aker wrote. “A ‘one-size-fits-all’ approach does nothing to spur this industry forward, something that desperately needs to happen.”
Aker said PAR is committed to Realtors and evolving alongside the changing industry, but she does not feel that NAR shares the same conviction.
“NAR has clearly committed to hampering innovation,” she wrote.
“We are prepared to continue defending the necessity of subscription options like MLS Choice, and we stand behind all of the professionals we serve,” Aker added.
