realestate

NAR Cleared in Pennsylvania Membership Lawsuit

Year‑old suit over association’s membership rules was appealed after July dismissal; higher court now dismissed it.

T
he U.S. Court of Appeals for the Third Circuit dismissed Maurice Muhammad’s lawsuit against the National Association of Realtors (NAR), the Pennsylvania Association of Realtors, and the Greater Lehigh Valley MLS on Oct. 28. The dismissal followed a July ruling by a Pennsylvania district court that found no evidence Muhammad was barred from the MLS or the association. The appellate court’s brief noted the case was dismissed because Muhammad failed to submit a required brief and appendix.

    Muhammad’s suit, filed in Oct. 2024, claimed that tying MLS access to mandatory NAR membership violated antitrust law and unfairly burdened minority agents who could not afford the fees. Although the Pennsylvania case is closed, similar challenges are still pending in several states. A Texas case dismissed in July is on appeal, and new lawsuits have been filed in California, Georgia, Michigan, Louisiana, and Washington, D.C. All allege that NAR’s membership rules—requiring Realtors to join local, state, and national associations and pay dues to access MLS data—constitute unlawful mandatory membership.

    NAR maintains that its integrated structure promotes competition and is non‑discriminatory. The trade group argues that unified membership provides a single voice on policy, a consistent Code of Ethics, and valuable tools and professional development that help members close transactions.

National Association of Realtors cleared in Pennsylvania membership lawsuit.