NAR Reviews Clear Cooperation Policy Amid Ongoing Real Estate Debate
Washington, D.C. – Barely a year after the National Association of Realtors (NAR) settled a lawsuit and revised how real estate agents get paid, the powerful trade group is now reconsidering another key policy that could reshape the housing market nationwide.
The policy, known as Clear Cooperation, requires agents to list homes on multiple listing services (MLS) within one business day of marketing them. Designed to curb “off-market” or “pocket” listings—where properties are marketed to select buyers without being publicly listed—the rule has sparked intense debate since its implementation in 2020.
Industry Divide Over MLS Rules
Proponents argue that Clear Cooperation promotes transparency, ensures compliance with fair housing laws, and helps sellers obtain the best price by exposing their property to the widest pool of buyers. Critics, however, believe the policy limits seller choice and could violate antitrust laws. The NAR is currently assessing whether to repeal, amend, or maintain the rule—a decision that could significantly impact how homes are bought and sold in an already tight housing market.
“We take for granted that you can go to any portal … and have a complete and total data set that’s accurate in real time,” said Leo Pareja, CEO of eXp Realty. “That only comes from the cooperative structure we have set up where everyone shares everything.”
While many real estate firms support Clear Cooperation based on their business models, the policy remains controversial. Zillow and Redfin, which aggregate MLS listings, advocate for keeping the rule. Compass, a luxury-focused brokerage known for its “Private Exclusives,” opposes it. Anywhere Real Estate, the parent company of Century 21, Coldwell Banker, and Sotheby’s International Realty, supports modifying rather than abolishing the rule.
Pocket Listings and Market Trends
Pocket listings remain a small but notable segment of the market, making up about 1.8% of deals in mid-2024, according to Redfin. Their prevalence is higher in luxury real estate, where high-profile clients prefer discreet transactions. These sales also surged during the 2021 pandemic housing boom, reaching 2.8% of transactions.
“Luxury markets like to keep things close to the vest,” said Linda Hussey, a real estate agent in Waikoloa Village, Hawaii. However, some pocket deals happen spontaneously, such as when a buyer and seller are directly connected through an agent.
Pocket listings often rise when inventory is low, and some agents promote their access to off-market deals to attract clients. Although Clear Cooperation aims to limit these sales, they remain permissible under certain conditions, such as transactions within a single brokerage.
Impact on Home Prices and Consumer Choice
The financial impact of pocket listings remains debated. Zillow analyzed 2.72 million homes sold in 2023-2024 and found that pocket listings sold for 1.5% less than comparable MLS-listed homes. Compass, however, claims its data shows pre-marketed homes eventually sold for 2.9% more.
Critics of Clear Cooperation argue it restricts homeowner choices. “At the end of the day, it’s the seller’s house,” said Matt Curtis, a real estate agent in Huntsville, Alabama. “I think the seller ultimately should be able to decide what they can and can’t do.”
Fair housing advocates, however, warn that pocket listings may disadvantage minority and low-income buyers. “It exacerbates potential segregation and discrimination,” said Laurie Brenner, associate vice president of housing and community development at the National Fair Housing Alliance.
The Consumer Federation of America also opposes pocket listings, urging NAR to tighten restrictions on “office exclusives.”
Legal and Regulatory Scrutiny
Clear Cooperation has faced legal challenges. The Top Agent Network, an off-market listings service, sued the NAR in 2020 but dropped its case earlier this year. The Justice Department has also scrutinized the policy as part of a broader investigation into NAR’s practices.
The NAR is expected to rule on the policy in the coming weeks, but legal threats persist. Michael Ketchmark, the lead attorney in the lawsuit that overhauled real estate commissions, has warned of further litigation if the rule is upheld.
As the industry awaits the NAR’s decision, the future of real estate transparency, pricing, and competition hangs in the balance.