After a prolonged wait amid the saber-rattling threats of more legal action, the National Association of Realtors’ (NAR) decision on the future of its Clear Cooperation Policy (CCP) has been released. And, of course, this much-anticipated release — CCP 2.0 — supposedly solves all of the inherent problems and makes everything work better.
In the words of Tom Hanks to Meg Ryan in You’ve Got Mail, “If only.”
Or to quote another real estate expert, Maxwell Smart, who emphatically declared, “Missed it by THAT much….”
Darryl Davis wrote, “Just when you thought things might settle down after all the chaos around commissions, lawsuits and Clear Cooperation Policy (CCP) debates, the National Association of Realtors has decided to ‘clarify’ things … by making them more complicated.”
He adds, “Let’s be honest — was anyone even asking for this?” and continued, “It feels like NAR leadership sat down in a room to evaluate CCP — maybe even consider repealing or refining it — and instead of fixing a policy that’s been under fire since Day 1, they walked out with a completely new one — a policy that no one asked for that solves a problem no one said existed.”
My impression is that it misses the mark on both ends of the spectrum: “Delayed Marketing Exempt Listings” fail to do away with CCP as hoped for by some brokerages and further complicates and erodes it for those who wanted to keep it.
At the heart of the CCP issue is the idea that all listings be available on one platform so that sellers have the widest possible group to market to so as to maximize their potential, and buyers can go to one place to search for listings, confident that all the available homes on the market will be there.
There has always been the option for sellers to sell off-market if they choose to do so: The only requirements are that all of their options be explained to them fully, they make their choice official by signing a listing disclosure and their agent alerts the local MLS of their choice.
In response to a growing number of entities attempting to sell homes off-market and skirt the MLS, CCP was inaugurated to maintain the integrity of the MLS so that we did not return to a system where listings are scattered across the internet and hidden inside numerous broker portals — ironically, the way things used to be and the very reason the MLS came about in the first place.
With claims of “wanting to break up a monopoly,” some brokerages have been pushing for the removal of CCP so they can, in fact, establish a monopoly of their own behind their carefully guarded gates. I explained in a previous post: “While some have considered NAR to be a monopoly, in truth, they hold no listings, have no real estate sales and are not a brokerage in any sense of the word.”
If you want to fully understand what a monopoly really is and, conversely, grasp the need for full transparency in a market system, read Ron Chernow’s book Titan: The Life of John D. Rockefeller, Sr. If you need a wakeup call, that is it. Any broker who has insisted that a removal of CCP would give their brokerage a competitive advantage is absolutely correct — but only for their agents, not consumers.
FAQ
So what exactly do the new rules mean for the industry? Here are my top questions and answers:
Q: What exactly are the changes in this new policy?
A: The new policy “introduces a new category of exempt listings called ‘delayed marketing exempt listings.’ The exemption will allow a seller the option to instruct the listing agent to delay marketing a listing through Internet Data Exchange (IDX) and syndication for a period of time. Each MLS will have discretion to determine a delayed marketing period that is most suitable for their local marketplace.”
Q: How is this different than before?
A: To begin, informing the MLS that a broker has a new listing is still mandatory. However, a seller now has the option of:
- Their listing being on the MLS for dissemination only to brokers and their agents for a limited period of time
- Allowing it, from the moment it becomes live on the MLS, to be broadcast through the MLS’s IDX feed to portals such as Homes.com, Realtor.com, Zillow.com and more
Q: How long can a seller ‘delay’ their home being syndicated to the IDX (Internet Data Exchange)?
A: That will be determined by local MLSs.
Q: How is this policy different than the previous policy?
A: Previously, a broker was required to alert the MLS within one day after signing a listing with a seller. Provision could be made — in a disclosure signed by the seller — to hold a listing off the market for a period of time agreed upon by the seller — as in the case of a home being prepared for the market.
During this period, marketing was not allowed. On or before the specified date, as soon as the home was ready, it would go live on the MLS and be broadcast to internet portals through the IDX.
Under the new rules, the home can be marketed to other brokers through the MLS during the off-market period, but cannot be broadcast through the IDX to public-facing portals.
Q: How will this affect the ‘Coming Soon’ status utilized by some MLSs?
A: The “Coming Soon” status and accompanying rules have always been a source of confusion, and the rules have varied widely from MLS to MLS, as have differing agents’ use (or abuse) of the status.
My guess is that the new rules are going to make this status even more confusing.
Q: Doesn’t this new provision potentially undermine the best interests of the vast majority of sellers by making their listings available for sale through a closed set of brokers before they go to the wider market?
A: Duh. While there may be some sellers who desire privacy or a quick close, they represent a very small minority of sellers. This new policy is a misguided attempt to protect a small minority of sellers and is an obvious attempt to pacify those brokerages pushing for private listings for the purpose of enhancing their bottom line.
Q: Does this mean there will be the potential of buyers missing out on properties that fit their criteria that will effectively be ‘hidden’ on the MLS for a predetermined period of time?
A: Absolutely.
Q: When does the new policy go into effect?
A: It is effective as of March 25, 2025, and must be fully implemented by MLSs by Sept. 30, 2025.
Q: Doesn’t this actually make things more complicated?
A: Yes … it means there will be a new level of explanation required so sellers understand their options, and it will add additional complications to listing documents. It will, in the best case scenario, add at least one more line to listing documents and provide one more box for a seller to check or not check. This will also mean the addition of more fields on the MLS.
Summer Goralik writes:
“For those who prefer to read between the lines, here’s the deal: Rather than promoting clarity, NAR has added another layer of complexity, creating yet another exemption to the CCP under the guise of ‘seller choice.’ Put simply, NAR had an opportunity to simplify and reinforce transparency in real estate. Instead, it made an already complex system even more convoluted.”
Q: Does implementation of the new rules potentially undermine the role and effectiveness of the MLS?
A: Absolutely. Again, Goralik states the situation very clearly:
“Moreover, this new path under CCP, presented under the guise of expanded ‘seller choice,’ ultimately weakens the very purpose of the MLS: to provide a centralized, transparent marketplace that benefits both buyers and sellers.” She queries, “if I am going to end this piece with a question, the more important one is this: How much further can transparency be compromised before the very foundation of the MLS is unrecognizable?”
The purpose of this article is to provide a high-level view of the changes to CCP and the larger issues that will arise from its implementation. If you wish to do a deep dive and examine the minutia, you can read NAR’s entire FAQ here. Only, that is, if you wish to be more confused and frustrated than you might already be.
Carl Medford is the CEO of The Medford Team.
