T
he Alabama Association of Realtors is pushing for greater flexibility in how members allocate their dues dollars between local, state, and national levels. If not granted, they risk losing members forever. In a letter to NAR CEO Nykia Wright, the association asked for permission to allow members to choose where they spend their membership and dues dollars.

    The request targets the "Three-Way Agreement," which requires agents who join their local Realtor association to also join their state association and NAR. The Alabama Association argues that while there is loyalty to the organization, there's a growing desire for choice and flexibility in deciding how to allocate hard-earned membership dollars.

    NAR is reviewing the request, highlighting the benefits of its integrated membership model. A spokesperson pointed out that this structure has allowed NAR to secure landmark wins for Alabama Realtors, including favorable decisions at the U.S. Supreme Court and release of liability related to broker commissions.

    However, the letter warns that failing to act will carry significant risk, including lawsuits challenging mandatory NAR membership. Frustrated members are actively looking for alternatives, and if left unchecked, they may lose these members forever. The association believes that letting Realtors decide where to allocate their dues dollars will create a more invested membership.

    The legal risk is real, with lawsuits filed this summer challenging mandatory NAR membership. The letter also references the industry's history of litigation over commissions, stating that consumers and members alike require greater choice in making decisions about real estate transactions.

    NAR argues that its federated structure provides a framework for effective communication, delivery of goods and services, and enforcement of the Realtors Code of Ethics. This structure has allowed the organization to increase its size and influence public policy, set standards for ethical practice, and contribute to the betterment of the industry.