realestate

Breaking Free from NAR's Restrictive Rules

Clear Cooperation Policy Fails Consumers and Free Enterprise Principles

T
he Clear Cooperation Policy (CCP) was introduced by the National Association of Realtors (NAR) in 2020 with the intention of creating a more "open market." However, its enforcement has been inconsistent and ineffective. MLSs have struggled to enforce the rule, often punted back to NAR for resolution, effectively neutering it.

    The CCP's primary goal is to protect smaller brokerages from larger ones that can accumulate market share by promoting themselves as firms that sell properties quickly. Yet, this protection disregards consumers' needs, who only care about selling their property quickly and don't concern themselves with the brokerage used. A larger brokerage with a pool of active buyers has a higher likelihood of selling a property fast.

    The CCP is an attempt to level the playing field but ultimately ignores the principles of free enterprise. In a competitive market, brokerages can grow or die based on their ability to adapt and innovate. Arbitrary rules imposed by NAR cannot change this natural order.

    Mandating fairness through the CCP may seem like a noble concept, but it's misguided. Sellers want to sell, and buyers want to buy – why should we impose our own demands and prejudices on that process? Our job as real estate practitioners is to facilitate transactions quickly and efficiently.

    The market will always be imperfect, but left alone from artificial influences, the "Invisible Hand" of Adam Smith will achieve relative equilibrium. It's time to abandon the top-down approach and focus on serving consumers' needs. The CCP is just another example of NAR imposing rules without member input, creating liability and damaging our industry's reputation.

    As a business owner who has grown his company from one employee to over 1,500, I understand the importance of adapting to changing market conditions. We need to stop these attempts at social engineering and focus on serving consumers. The rest is just noise.

Real estate agents gather in protest against National Association of Realtors' restrictive policies.