K
ey takeaways:

    NAR’s recent conference decisions—dropping the rule that MLS access requires association membership and rejecting a broader disclosure of referral fees—signal a move from national to local control. MLSs now have a chance to set the industry’s standards while expanding access.

    Why local matters

    The NAR Code of Ethics (COE) splits duties into two groups: consumer protection (honesty, fiduciary duties, fair housing, advertising) and professional cooperation (respect for exclusive relationships, showing etiquette, dispute resolution). State licensing laws now cover most consumer duties, leaving the COE’s second bucket to govern how agents cooperate. Local MLSs are best positioned to enforce these cooperation rules because they understand their markets and can act swiftly.

    Non‑Realtor access concerns

    Local leaders often argue that non‑Realtors should be barred from MLSs because they aren’t bound by the COE. The real issue is whether all participants will follow the same cooperation and data standards. If NAR supports non‑member access, the responsibility for setting those standards falls on the MLS, not the national body. MLSs can adopt their own rules for cooperation, data integrity, and compensation without violating NAR policy.

    Case in point: NWMLS

    Northwest MLS (NWMLS) in Washington state demonstrates effective local governance. On June 25, 2025, NWMLS issued a clear Referral Disclosure form that specifies who refers whom, where, and at what fee. The form is included in service agreements at the time the consumer signs, eliminating the need for a national vote or lengthy parliamentary procedure. This rapid, practical change shows that regional MLSs can modernize rules faster than a national organization with thousands of decision‑makers.

    Building a modern Code of Cooperation

    An MLS that wants to open participation while raising standards can craft a Code of Cooperation around three pillars:

    1. **License‑law alignment** – Require all participants to maintain good standing with state licensing authorities, with MLS sanctions triggered by state discipline.

    2. **Professional conduct rules** – Mandate accurate, timely listing data; clear guidelines for showings, access, offer presentation; and respect for exclusive representation agreements.

    3. **Transparency standards** – Enforce mandatory disclosure of referral fees and other third‑party compensation, modeled after NWMLS’s required forms and fields.

    These provisions can be embedded in MLS participation agreements and rulebooks, enforced through local processes, and applied to all members regardless of Realtor status. Membership becomes optional; standards remain robust.

    Implications for the industry

    NAR’s decisions reinforce the idea that MLSs should lead local governance. By adopting modern Codes of Cooperation, MLSs can open access, foster competition, and elevate professional standards simultaneously. This shift from top‑down rule‑making to local autonomy reflects the reality that real estate is a local business, and the best standards emerge from those who know the market.