D
an Duffy, CEO of United Real Estate, argues that the National Association of Realtors (NAR) must go beyond the reforms already announced. He and a coalition of 15 top executives—representing roughly 100,000 agents—formed the Pro‑Agent Restore Trust in April to push NAR toward a leaner, more transparent model that protects agents from future litigation and restores industry trust.
**Why the current reforms fall short**
The recent commission‑related lawsuits exposed a systemic risk in NAR’s long‑standing policies. While the association pledged greater transparency and streamlined operations, many brokerage leaders feel those promises are insufficient. Agents remain “furious” about the settlement’s impact on their reputations and earnings, and Duffy insists that independent governance is essential to prevent a repeat of such legal battles.
**Key demands from the working group**
1. **Independent oversight** – NAR’s self‑governance has lacked independent directors, creating a risk of entrenched decision‑making that can lead to systemic failures. The group calls for directors not selected by NAR leadership, tasked with regular financial reviews and holding the board accountable for its mission.
2. **Financial transparency** – NAR’s balance sheet is described as “frothy,” with large reserves and a lack of timely disclosure. The group urges the release of audited 990 tax forms and an annual report that truly reflects financial performance, rather than a sanitized narrative. Delayed reporting fuels perceptions of avoidance and erodes member confidence.
3. **Reduced litigation risk** – A bloated balance sheet invites scrutiny and potential lawsuits. By trimming excess capital and operating costs, NAR can lower its profile as a litigation target, protecting both the association and its members from costly legal exposure.
4. **Smart spending** – NAR’s expenses have grown without corresponding benefits. The working group identifies tens of millions of dollars that could be cut without harming advocacy, training, or education—NAR’s core functions. A leaner budget would make membership dues feel worthwhile and reduce the sense that agents are paying for an opaque organization.
**The new paradigm**
Duffy envisions an NAR where agents are excited to pay dues, clearly understand the value they receive, and feel no obligation to join. He stresses that rebuilding trust requires concrete actions, not just promises. The Pro‑Agent Restore Trust aims to compel NAR to address these issues, ensuring the association serves the industry’s best interests rather than its own.
In summary, Dan Duffy and his coalition demand independent governance, full financial disclosure, reduced litigation exposure, and smarter spending. They seek a reformed NAR that delivers real value to agents, restores confidence, and safeguards the industry against future legal and financial risks.
