For the last few years the subject of what’s known as the Clear Cooperation Policy (CCP) has caused quite a stir in the real estate world. In 2020 a lawsuit was filed against NAR, the author of CCP, only to be dismissed and revived a number of times. The gist of it alleges that NAR’s CCP rule is anticompetitive and violates antitrust laws. With what appears to be a way to satisfy both sides–those that want to keep it and those that want it gone–NAR announced on March 25 a compromise of sorts by adding a complementary option. Here’s the latest on the Clear Cooperation Policy:
WHAT IS THE CLEAR COOPERATION POLICY?
The Clear Cooperation Policy (CCP) was set forth in 2020 and is enforced by the National Association of Realtors® (NAR). The policy mandates that listings be entered into the MLS within one business day of public marketing. Real estate portals, like Zillow, benefit from the policy because it allows it–and potential buyers– to have immediate access to all new MLS listings. Other groups and brokerages want the choice to keep the listings private and market them in-house. Those in favor of getting rid of the policy argue that it’s anti-competitive and restricts sellers’ choices. Those that want to keep the policy in place claim it maintains transparency to consumers by ensuring that all publicly marketed properties are able to be seen by all potential buyers.
AIMING FOR A WIN-WIN
On March 25 NAR President Kevin Sears declared that the CCP would remain but that a complementary add-on would be put in place as a way to “meet the growing needs of selling clients.” Dubbed the “Multiple Listing Options for Sellers Policy” it provides two additional options to the Clear Cooperation Policy. However, the new option does not include an “opt out” to the policy itself. And, once a listing is “publicly marketed” it must be filed and provided to other MLS participants for cooperation within (1) one business day, per the usual.
OPTION #1: “OFFICE EXCLUSIVE EXEMPT LISTING”
The Office Exclusive Exempt Listing means the seller commits to marketing their property only within their brokerage for a set period of time. It means sellers have directed that their property not be listed on the MLS and not be publicly marketed. That being said, an MLS might require that these listings be submitted but it isn’t allowed to share them with other MLS systems or subscribers. Regardless, if the decision is made to publicly market the broker has one business day to list the property for display on the MLS.
Keep in mind that an Office Exclusive is not the same thing as a “pocket” listing. While both are off-market listings, an Office Exclusive is only marketed within its brokerage, whereas a pocket listing can be marketed to a select group of agents and buyers at the discretion of the brokerage. Recall that one of the goals of the Clear Cooperation Policy was to limit pocket listings as a way to ensure transparency in the market and to make it easier for agents to research real estate comps. (Note: Not all so-called pocket listings violate MLS rules or state laws.)
OPTION #2: “DELAYED MARKETING EXEMPTION”
Delayed Marketing Exempt Listings must be filed with the MLS and available for other MLS participants and subscribers to access. They can also be shared with their clients and consumers. However, the MLS and other participants and subscribers are “delayed” from displaying the listing through an Internet Data Exchange (IDX) feed or syndicating those listings to other entities.
As a result, entities who rely on immediate syndication of listings will now have to wait before these listings will show up on their portals, whether that’s Zillow or an agent’s personal website. Likewise, buyers who rely on listing portals to research what’s for sale will also have to wait. At the moment, it looks like regional MLS entities around the country will ultimately be responsible for deciding the timeframes surrounding the new options.
THINGS TO CONSIDER
At the end of the day, the issue of CCP is all about what’s best for both sellers and buyers. A Zillow study between 2023 and 2024 showed that sellers left $4,975 on the table when they sold their home “off-market.” Similarly, another study done by Bright MLS from 2019 through the first quarter of 2023 showed that homes listed on the MLS sold for an average of 17.5% more than off-market sales. So why would a seller choose to keep a listing from being displayed publicly on MLS? Most agents cite privacy concerns and specific requests for private listings from sellers, especially when listing for celebrities and other well-known individuals. Another reason to keep a listing in-house, at least initially, is to gauge the saleability of a property and ascertain whether the listing price meets market expectations. As such, a listing can avoid gathering “days on market” in the MLS system and other negative outcomes, such as price reductions.
As it stands, a signed disclosure by sellers will be required for either option. Per NAR, the Multiple Listing Options for Sellers Policy goes into effect immediately, but MLSs have until Sept. 30, 2025 to implement it. For more interpretation on the new CCP options, click here.