realestate

NAR's role in pocket listing practices under scrutiny

Top Agent Network doubles down on claims Clear Cooperation is anticompetitive and limits consumer choice.

T
op Agent Network (TAN) is intensifying its lawsuit against the National Association of Realtors (NAR), accusing the association's Clear Cooperation Policy of being anticompetitive and anti-consumer choice. The policy, which requires agents to submit listings to the Multiple Listing Service (MLS) within a certain timeframe, has been at the center of TAN's complaints since 2020.

    TAN argues that NAR is stifling competition by controlling the dominant MLS in most markets through its affiliates. The company claims that the Clear Cooperation Policy violates federal and state antitrust laws because it has no consumer benefits and only serves to protect less productive agents who are part of NAR's membership. TAN also alleges that NAR has a strong incentive to maintain its large membership numbers, which includes limiting competition from private listing services like itself.

    TAN seeks to stop NAR from conspiring to shut down competition and limit consumer choice in the real estate market. The company argues that sellers have legitimate reasons for not wanting their homes listed on the MLS, such as concerns over privacy or avoiding costly repairs and staging. TAN's lawsuit also highlights its own unique business model, which limits membership to the top 10% of agents responsible for most residential transactions.

    In a significant development, TAN has dropped the San Francisco Association of Realtors (SFAR) from the lawsuit, leaving NAR as the sole defendant. In exchange, NAR will not challenge the jurisdiction or venue of the case. NAR now has 30 days to respond to the amended complaint.

National Association of Realtors (NAR) officials questioned about pocket listing policies nationwide.