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Vice President, Deputy General Counsel of the National Association of REALTORS® discusses the latest developments and what they mean for Arizona REALTORS®

In November of 2020, the National Association of REALTORS® (NAR) notified its members of the fact that it had been cooperating with the United States Department of Justice (DOJ) to develop rules ensuring that the amount of compensation offered to buyer’s agents for each MLS listing be made publicly available.

 At the time, NAR explained that the exact language had yet to be finalized, leaving the question as to when the new rules would be released and implemented. NAR has since clarified that there are multiple legal steps that must first occur before the rules can take effect. For example, a Federal Court will need to formally certify NAR’s agreement with DOJ, a process that takes at least two months, sometimes longer. Thereafter, the new rules will need to be approved by the NAR Board of Directors.

Although the precise timing remains uncertain, it will not happen immediately and there will be ample time for REALTORS® to read and consider the rules before they must be followed. Furthermore, most of the changes will just explicitly state what is already the spirit and intent of NAR’s Code of Ethics and MLS policies regarding providing information about commissions and MLS participation.

NAR has promised to keep members apprised of the status of the new rules and the Arizona REALTORS® will be sure to do the same.

This article is of a general nature and reflects only the opinion of the author at the time it was drafted. It is not intended as definitive legal advice, and you should not act upon it without seeking independent legal counsel.

Scott Drucker

A licensed Arizona attorney, Scott is General Counsel & Assistant CEO for the Arizona REALTORS® serving as the primary legal advisor to the association.

Scott Drucker