Nar’s Mls Cleanup Shifts Power Locally. Here’s What You Need To Know

When the National Association of Realtors (NAR) quietly conducted an antitrust risk assessment of every MLS policy earlier this year, the result was a sweeping 18-policy purge across the MLS Handbook.

On Monday, NAR announced the approval of a series of updates to the MLS Handbook that essentially returns decisions back to local MLSs on private listings, non-member access and more.

The new policies change how MLSs function, who gets access and how rules are enforced.

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 Many of the now-repealed policies were outdated, never enforced, inconsistently applied or vulnerable to misinterpretation in litigation.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Multiple policies dealing with whether an MLS can (or must) require association membership are being repealed.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.”