Local
MLSs
are
in
the
driver’s
seat

The
clearest
theme
running
through
the
recommendations
from
the
trade
association’s
Presidential
Advisory
Group
(PAG)
is
decentralization.
Policies
that
once
dictated
national
rules
around
membership
requirements,
non-member
access,
training,
orientations,
service
areas,
open
listings
and
even

IDX
permissions
are
on
the
chopping
block.

“Repealing
these
policies
will
promote
MLSs
making
independent
local
decisions,”
the
PAG
wrote
repeatedly
across
multiple
recommendations.

With
that
comes
more
flexibility
from
market
to
market.
Brokers
operating
across
regions
should
expect
greater
differences
in
rules,
fees,
access
requirements
and
enforcement
processes.

Why
the
shift?
Risk
—
and
lots
of
it

NAR’s
move
is
laser-focused
on

antitrust
exposure.
Many
of
the
now-repealed
policies
were
outdated,
never
enforced,
inconsistently
applied
or
vulnerable
to
misinterpretation
in
litigation.

“Obsolete
or
ambiguous
policies
introduce
unnecessary
legal
risk,”
the
PAG
wrote.
“This
review
is
about
modernizing
MLS
policy
and
aligning
it
with
current
practice.”

The
good
news
is
that
clearer,
slimmer
policy
equals
less
national
liability.

As
part
of
giving
power
back
to
the
MLSs,
they
can
now
decide
whether
to
accept
open
listings.
Also,
MLSs
can
choose
to
allow
non-member
brokers
to
participate
in
the
MLS.
Decisions
about
transmitting
listings
to
aggregators
or
running
public
portals
are
affirmed
as
local
calls.

Membership
requirements
could
change

Multiple
policies
dealing
with
whether
an
MLS
can
(or
must)
require

association
membership
are
being
repealed.
That
doesn’t
mean
everyone
gets
in,
but
it
does
mean
that
MLSs
will
now
decide
locally
whether
to
allow
non-Realtor
licensees
to
participate.

This
could
open
doors
in
some
markets
and
reinforce
barriers
in
others.
MLSs
have
already
signaled
they
want
clear
messaging
and
guidance,
but
at
the
end
of
the
day,
the
decisions
will
be
local.

Expect
new
training
and
onboarding
requirements

The
repeal
of
orientation
and
training
rules
means
local
MLSs
have
descriptions
about
required
MLS
onboarding,
mandatory
classroom
hours
and
more,
but
they
have
to
build
their
own
onboarding
and
training
standards.

The
PAG
emphasized
that
MLSs
want
best
practices
and
will
likely
look
to
the

Council
of
Multiple
Listing
Services
(CMLS),
state
associations
and
vendors
to
fill
the
gap.

One
of
the
most
sweeping
changes
is
a
repeal
of
the
entire
MLS
Disciplinary
Guidelines
section
and
a
removal
of
the
national
cap
of
a
$15,000
fine.
This
means
each
MLS
will
now
independently
determine
fine
amounts
and
disciplinary
practices.

“Discipline
should
be
commensurate
with
the
offense,”
the
PAG
noted,
but
now
each
MLS
gets
to
define
what
that
looks
like.

Real
estate
brokerages
that
operate
across
multiple
markets
will
likely
see
different
enforcement
in
each
of
the
MLSs
they
are
a
part
of.

NAR
is
stepping
back.
MLSs
are
stepping
forward.
And
brokers
will
feel
that
shift
most
in
places
where
the
rules
used
to
be
uniform
and
predictable.

As
one
PAG
member
summarized
during
discussion:
“If
local
MLSs
want
control,
they
now
have
it.
But
with
control
comes
responsibility
—
and
scrutiny.”