Los Angeles, California — The battle over the National Association of Realtors’ Clear Cooperation Policy has resurfaced, spearheaded by Mauricio Umansky, founder of The Agency and co-founder of the pocket listings website PLS.com. Umansky has reignited an antitrust lawsuit against NAR, which he initially filed in 2020, with the aim of challenging restrictive real estate listing rules that he claims limit homeowners’ marketing choices.
The newly refiled complaint as of July 1 alleges that the Clear Cooperation Policy undermines homeowner agency, asserting that individuals should have the freedom to decide how they market their properties. This legal action follows a precedent where California Regional MLS, Bright MLS, and MRED settled with PLS in January 2024, prompting PLS to temporarily withdraw its case against NAR. However, that withdrawal was without prejudice, leaving the door open for renewed allegations.
Umansky’s determination was evident in social media remarks made prior to the lawsuit’s refiling. He contended that homeowners should dictate the terms of selling their homes and expressed eagerness to pursue the case against NAR again. Despite his prominent industry presence and reality television fame, he is not a plaintiff in this litigation.
This lawsuit aligns with similar legal actions by Compass, a rival brokerage led by Robert Reffkin, which has challenged NAR’s policies regarding private listings. Recent litigation from Compass against Zillow and the Northwest Multiple Listing Service (NWMLS) echoes claims of anticompetitive practices surrounding listing regulations, particularly those affecting the marketing of properties.
In late May, Zillow unveiled a policy to block publicly marketed listings that lacked widespread availability through MLS, effective June 30. NWMLS’s regulations also hinder pre-marketing and office exclusives, practices critical to Compass’s three-phase marketing strategy.
Legal authorities have noted that the U.S. Department of Justice has investigated the Clear Cooperation Policy for anticompetitive implications, although no official stance has been taken.
PLS’s legal documentation argues that the Clear Cooperation Policy effectively stifles competition by discouraging listings that might otherwise flourish in the market. The startup has positioned itself as a response to consumer demand for privacy and flexibility, claiming that NAR’s policy presented a significant impediment to its growth.
NAR has indicated readiness to counter the lawsuit, stating that the Clear Cooperation Policy fosters transparency while allowing sellers the option to maintain privacy through exclusive listings. The policy, introduced in 2019, has long been contentious among industry stakeholders, receiving additional adjustments earlier this year to allow a “delayed marketing” option for sellers.
PLS describes its legal endeavors as a defense of innovation against an established system that stifles competition in real estate. Its statements indicate a resolve to combat constraints imposed by industry gatekeepers who seek to maintain the status quo in a landscape increasingly demanding diverse selling strategies.
The outcome of this renewed legal confrontation could significantly influence real estate marketing approaches, with implications for both homeowners and industry players navigating the evolving landscape of property sales.
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