The National Association of Realtors (NAR) introduced the Clear Cooperation Policy to foster transparency in real estate transactions in 2019. The policy requires agents to submit listings to the Multiple Listing Service (MLS) within one business day of any public marketing. While the policy aims to ensure open access to property listings, many in the industry argue that it limits homeowner flexibility and restricts an agent's ability to meet client needs, potentially conflicting with NAR’s own Code of Ethics and various state laws designed to protect consumers' rights.
Compass founder Robert Reffkin strongly advocates eliminating the Clear Cooperation Policy.
Reffkin argues that this policy, requiring listings to be on the MLS within one day of public marketing, restricts client choice and violates fiduciary duties. Compass is committed to putting clients first, ensuring privacy, flexibility, and ethical standards. Realtors should be able to tailor marketing strategies to individual client needs without undue pressure from policies that may not serve everyone’s best interests.
Ethical Conflict: This policy conflicts with the NAR's Code of Ethics and state laws regarding client confidentiality and fiduciary duties.
Client Autonomy: Clients often have unique reasons for opting out of MLS listings, such as privacy concerns during sensitive personal situations (e.g., illness, divorce), and should not be coerced into broader public exposure.
Fiduciary Responsibilities: Realtors are bound to uphold fiduciary duties such as confidentiality and loyalty, which can be compromised by forced compliance with the Clear Cooperation Policy.
Legal Implications: The Clear Cooperation Policy puts Realtors at risk of violating state laws regarding fiduciary obligations and client confidentiality, exposing them to potential legal repercussions.
Reffkin advocates for repealing the Clear Cooperation Policy to allow for a more flexible approach that respects diverse client needs and privacy concerns in real estate transactions.
Almost 100 brokerage leaders, representing nearly 200,000 real estate agents, have joined Compass in asking NAR to end Clear Cooperation.