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Why Everyone’s Wrong About Clear Cooperation

What is Clear Cooperation?

In residential real estate, the Clear Cooperation Policy (CCP) is a rule from the National Association of Realtors (NAR) that ensures fairness and transparency in how properties are shared with other agents. It says that if a property is publicly marketed, like on social media, flyers, or websites, it must be listed on the MLS (Multiple Listing Service) within one business day. However, there’s an exception called an "office exclusive." This happens when a seller asks not to market the property publicly. In that case, the listing can stay within one brokerage but cannot be advertised to the public in any way.

The Clear Cooperation Policy (CCP) was introduced by NAR with the right intentions: to curb "pocket listings", ensure fair access to listings for all buyers, and foster transparency and cooperation among brokers. By promoting these values, CCP helped reduce ethical violations and support equal housing opportunity across the country.

Sitzer/Burnett vs NAR: A Turning Point in Real Estate

For a time, CCP seemed effective until the 2023 Sitzer/Burnett class action lawsuit which resulted in NAR agreeing to a $418 million settlement. For some reason, that settlement put the residential real estate industry under intense scrutiny which led NAR to also revisit their Clear Cooperation Policy. The plaintiffs in the case argued that mandatory commission sharing via the MLS artificially inflated home selling costs.

While we understand the concerns raised, we respectfully disagree with the core argument of the NAR settlement. The real driver behind rising prices over the past 4-5 years has been a combination of high mortgage rates and supply and demand imbalances. Unfortunately, in a complex non-transparent market, real estate professionals became the convenient scapegoat.

The aftermath of the settlement has left many in the industry questioning the role and relevance of NAR and the MLS. It raises an important question: Is the current status quo outdated? If so, what comes next?

Pressing Concerns From The Professionals

Two major concerns raised by the real estate industry regarding the removal of the Clear Cooperation Policy center around seller autonomy and potential anti-competitive behavior.

First, critics argue that the policy limits a seller’s freedom to choose how their property is marketed. In some cases, sellers such as a high-profile individual or those with privacy or health concerns may prefer a more discreet or selective marketing approach. However, procedures like office exclusives already exist to accommodate these scenarios. We are talking about a relatively small percentage of sellers that may want to limit exposure of their homes, the majority would want as many eyeballs viewing their listing as possible. We believe the Clear Cooperation Policy (CCP) serves an important purpose, it gives the average consumer a clearer, more complete view of what’s truly available on the market.

The second, and arguably more significant, concern involves anti-competitive practices by NAR and affiliated listing platforms. Critics claim that the Clear Cooperation Policy centralizes power within the MLS system and may violate antitrust principles, particularly when agents are penalized for marketing properties outside of the MLS. This concern has gained more traction recently, especially after Zillow, Redfin, and StreetEasy announced they would no longer display listings that aren't submitted to the MLS within one business day of signing a listing agreement. This reinforces fears that certain platforms may be limiting access to inventory in ways that prioritize control over competition.

Naturally, the listing platform's stance sparked various emotions across the residential real estate industry, the most prevalent being outrage. What’s surprising is that they chose to alienate the professionals who empower their platform. Without agent participation and listing syndication, their entire model collapses. It’s reminiscent of Napster’s misstep where they distributed copyrighted music for free without securing agreements from the artists and labels who created the content in the first place. While Zillow and MLS platforms do operate under legal frameworks, they often enforce user agreements that strip agents of certain rights. Agents often face restrictions such as being prohibited from using watermarks, surrendering ownership rights over listing photos, and losing the ability to capture buyer leads directly as certain platforms redirect inquiries to third-party agents. It's understandable why agents feel their content is being leveraged unfairly without adequate control or compensation.

The everyday consumer does not understand that Zilow’s main revenue comes from selling buyer leads. When listings appear on Zillow, buyer inquiries are sold to agents who pay for access in specific ZIP codes. If buyers could contact the listing agent and their team directly, it would reduce commissions and eliminate the middleman, giving consumers faster, more accurate information straight from the source.

Is it time to rethink the status quo?

In today’s climate, we’re seeing a rise in the use of Private Listing Networks (PLNs). Private Listing Networks allow agents to share listings privately within their company. While we understand the strategy, we believe this trend represents a step backward in our industry. Instead of fragmenting the market, brokers should unite behind platforms that are committed to empowering real estate professionals and the consumers they serve.

It’s also widely acknowledged that the real estate industry could benefit from some consolidation. The current barrier to entry is relatively low, allowing nearly anyone to obtain a license with minimal training or experience. By raising the standard for entry, we can cultivate a higher caliber of professionals. This will foster better service, build greater trust, and create a more seamless experience for consumers across the board.

Establishing yourself as the go-to real estate expert in a specific market takes time, consistency, and dedication which we can resonate with. At ListMeet, we stand by the principle: Your Listing, Your Lead. When a consumer requests to view a property using either the ‘Meet Now’ option for on-demand tours or the ‘Meet Later’ feature, they connect directly with the listing agent and their staff.

ListMeet is designed to serve both sides of the real estate marketplace. We provide value to consumers searching for their next home while empowering real estate professionals.

-The ListMeet Team

May 15th, 2025