T
he CEO of CRMLS, Art Carter, explains how buyers, sellers, and agents could potentially sue over unfair situations created by exclusively listed properties. Some brokers have threatened to sue CRMLS for not removing mandatory cooperation, raising antitrust concerns.

    Buyers are denied the opportunity to hire their own representative when exclusively listed properties don't cooperate with other agents. Agents at firms that ensure all buyers have access to all properties would be denied representation of buyers interested in off-MLS properties, giving them grounds to pursue legal claims against brokerage firms for collusion and anti-consumer practices.

    Sellers harmed by off-MLS practices also have a strong basis for legal claims. Extensive evidence shows that wide exposure through an MLS results in the highest price and quickest sale for sellers. Eliminating mandatory cooperation could prevent other buyer agents from approaching the seller, effectively turning the property into a marketing tool or "billboard" to attract additional buyers.

    This issue is not just about double-ending transactions but redirecting buyers away from their chosen agents and forcing them to work with the exclusive listing agent. The notion that large firms would leverage their market position to divert buyer customers from competing brokerage firms by withholding available properties and then representing those same buyers is both unethical and unacceptable.

    For sellers who end up in this exclusive off-MLS strategy, the consequence is often a longer time on market than if their property had just been listed in the MLS. CRMLS data indicates that most properties initially kept off the MLS are eventually input into CRMLS to secure a sale, with the time spent off-MLS used as an advertising tool for the listing firm.

    CRMLS fully supports the Clear Cooperation Policy and believes that displaying listing data, such as days on market (DOM) or price drops, is vital to share. DOM helps buyers assess a property's appeal and negotiate pricing, while also helping sellers with pricing strategy and positioning in the market. Price drops indicate flexibility and can enhance value perception for both buyers and sellers.

    Maintaining transparency regarding price drops can revitalize the listing, generate urgency, and signal the seller's motivation, ultimately leading to more competitive offers. Accurately depicting DOM and price adjustments is essential to professionalism and a practice that the industry should stop.

    The Clear Cooperation Policy isn't perfect but builds trust in the industry. Trust is critical to every successful real estate transaction and professional relationship. Without it, the industry risks becoming fragmented, eroding trust, reducing consumer choice, and exposing itself to unnecessary regulatory scrutiny. CRMLS will continue to align its rules, policies, and practices with the core principles of cooperation, transparency, and fairness through unwavering support for the CCP.