realestate

National Association of Realtors prevails in court over membership regulations

Pennsylvania judge dismisses mandatory membership case, mirroring Texas decision.

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Pennsylvania judge has dismissed a lawsuit challenging the National Association of Realtors' (NAR) mandatory membership requirements, marking the organization's third court victory this month. The case was filed in October 2024 by Maurice Muhammad, a broker who alleged that NAR's policy of requiring agents to join in order to access their local Multiple Listing Service (MLS) violated antitrust laws.

    Muhammad claimed that this policy disproportionately affected minority professionals who couldn't afford the mandatory fees. However, Judge Joseph Leeson dismissed the case with prejudice, stating that there was no evidence that Muhammad was excluded from participating in the association or MLS aside from the membership fee.

    Leeson's 50-page opinion argued that the membership fee can serve pro-competitive purposes and therefore did not constitute an antitrust violation. The decision reinforces NAR's position that its policies foster competition and are not discriminatory, according to a spokesperson for the organization.

    NAR's integrated structure is seen as essential to providing value to its members, including a unified voice on policy issues, a uniform Code of Ethics, and professional development opportunities. This latest victory follows similar dismissals in Texas and an antitrust case brought by Homie Technology earlier this month.

National Association of Realtors wins court case over membership regulations in Washington D.C.