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A months-long battle between the National Association of Realtors and Phoenix Realtors appears to have concluded Thursday after the latter organization agreed to abandon a controversial membership option.
In a statement, NAR said that Phoenix Realtors had agreed to withdraw MLS Choice. Doing so, the statement adds, brings Phoenix Realtors into compliance with NAR rules and thus allows the association to retain its charter — something NAR had moved to revoke. In place of MLS Choice, Phoenix Realtors will instead provide a different offering dubbed “non-member MLS access.”
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Phoenix Realtors first announced MLS Choice last fall. The idea was to offer a new membership level — at a cost of $249 a year — that would provide agents with access to things like state-compliant forms and legal help, but which wouldn’t require them to join NAR or the state Realtor association.
The announcement of MLS Choice came amid pressure on Realtor organizations to decide whether to change the so-called “three-way agreement,” a NAR policy requiring agents to be members of the local, state and national Realtor organizations in order to use the “Realtor” title. In the months since the conflict between NAR and Phoenix Realtors erupted, the three-way agreement has remained one of the real estate industry’s most discussed issues.
In December, NAR sent Phoenix Realtors a cease and desist letter threatening legal action if it moved forward with MLS Choice. Phoenix Realtors then fired back, saying it would not back down and calling MLS Choice “both legally sound and a responsible offering to a changing industry.” In Thursday’s statement, Phoenix Realtors added that NAR began the process of revoking its charter amid the conflict, and that at issue were concerns about the weakening of, and confusion over, the Realtor brand.
Thursday’s announcement reveals that the two organizations have ultimately reached a compromise.
The new “non-member MLS access” offering “will eliminate any further confusion,” according to the statement, and will not give users access to the “Realtor” title. However, the non-member option will still give non-Realtors access to the Arizona Regional Multiple Listing Service (ARMLS), as well as some products and services. Phoenix Realtors has had offerings giving non-Realtors ARMLS access since 1996, according to the statement.
NAR said in the statement that the issue “was never about MLS access, and NAR policy on this has not changed.” It also said it is “pleased to have reached this resolution, which protects the rigorous standards of the Realtor brand.”
Phoenix Realtors described the resolution as “a mutually beneficial agreement that ensures Phoenix Realtors’ non-member offering complies with NAR’s constitution, bylaws and the three-way agreement.”
“Phoenix Realtors remains committed to the Realtor brand, the three-way agreement, and the benefits made possible by the relationship between the Phoenix association, Arizona Association of Realtors and NAR,” the statement adds. “This outcome supports both Phoenix Realtors’ and NAR’s ultimate goal of helping Realtor members succeed and the real estate industry at large thrive.”
