T
he Clear Cooperation Policy (CCP), implemented by NAR in May 2020, governs how listings are publicly marketed and entered into the multiple listing service (MLS). Under CCP, the listing broker must submit the listing to the MLS within one business day of marketing it to the public. This policy was created to address off-MLS listings used as billboards to drive consumers to contact agents, limiting sellers' access to the broader marketplace.

    The distribution of listing information and cooperation among MLS participants is pro-competitive and pro-consumer. By joining an MLS, participants agree to cooperate with other members unless doing so isn't in their client's best interests. The CCP advances the positive benefits that MLS participation fosters for homebuyers and sellers.

    While the policy has its issues and should be reviewed and refined over time, it is essential to understand its core purpose: putting consumers first. Some large brokerages are pushing to remove the CCP, but this is not about helping consumers; rather, it's about keeping listings off the broader marketplace for internal promotion, recruiting agents, generating leads, and boosting profits.

    These companies will say that consumers should have a choice between public and private listings, but their real motives are to convince sellers that keeping their property out of the broader marketplace is a benefit. They'll tell sellers things like "it's about privacy" or "we'll sell it internally and lower the commission amount." However, this practice can harm sellers, losing them anywhere from 5% to 17% of potential sales value.

    Removing the CCP could lead to catastrophic litigation if large brokerages start holding back inventory to double-end deals. A national lawsuit could arise, stating that agents recommended this practice when they could have made more money by putting the property on the MLS. Damages from such a lawsuit could be devastating for the industry and consumers alike.