The National Association of Realtors overwhelmingly approved the Clear Cooperation Policy. The policy requires residential brokers to submit a listing to the Multiple Listings Service within one business day of marketing a property to the public.
UPDATED 11:15 a.m., Nov. 11: The National Association of Realtors’ board approved a controversial policy that could drastically cut down on pocket listings, a popular practice in the world of luxe real estate.
A roughly 120-member NAR committee overwhelmingly approved the Clear Cooperation Policy on Saturday morning, sending it to the organization’s Executive Committee for consideration, according to Inman. On Monday, NAR’s board passed the policy 729-70.
The policy would require brokers to submit a listing to the Multiple Listings Service within one business day of marketing a property to the public. NAR argues it will help make the business more transparent.
Bright MLS Chair Jon Coile said pocket listings undermine the “social contract” that Realtors have with each other. Other supporters say it will help the NAR compete with off-MLS services popping up across the country.
Pocket listings are popular in the higher stratas of residential markets in top-tier cities such as New York, L.A., and Miami for a few reasons. They help obscure ownership and listings for high-profile clients and allow agents to be more flexible with asking prices.
They can be extremely lucrative for agents who have them because they essentially cut out outside agents. Those agents often end up representing both parties in deals.