New Developments in the Push for Private Listings
The Clear Cooperation Policy (CCP) saga continues. Just recently, I wrote a blog post here about the push for private real estate listings in Washington State, spearheaded by Compass Real Estate and some other brokerages. As mentioned, this has been part of an ongoing argument about the merits of requiring new listings to become immediately available to all potential buyers and thus broaden the pool of competitors to buy properties, versus permitting a subset of buyers to view specific listings before they become broadly available to benefit from more specialized marketing tools. The National Association of Realtors, which instituted the CCP, has traditionally required listings to be submitted to the multiple listing service within 24 hours of being publicly promoted. Although the Northwest Multiple Listing Service (NWMLS) effective in Washington State is not a part of the NAR, they have shared this CCP approach.
Recently, however, the NAR has announced that a seller can temporarily keep their home off the internet data exchange. The internet data exchange permits agents and home search sites like Zillow, Redfin, and others to display listings from the Multiple Listing Service (MLS). The NAR has indicated that each MLS will get to decide the timing of the “delay” before a seller must engage in traditional broad marketing. In other words, there is no uniform standard, and the deadline to establish that timeline is September 30th. Moreover, to use this “delayed marketing exempt listings” category, the agent must obtain a signed agreement from the seller that: (1) discloses the professional relationship between the Participant (the agent, broker, etc. involved) and the Seller; (2) acknowledgment that the Seller understands the benefits of the MLS being waived/delayed; and (3) confirmation of the seller’s decision not to publicly market through the MLS.
Zillow, however, has seemingly struck back. Zillow has adopted a policy that, beginning in May, it will bar real estate listings from its website that have not been made widely available on the MLS. While Zillow has expressly indicated that its new standards are not responsive to any CCP update, and that more broadly, it seeks to address all listings generally, Zillow’s policy will nevertheless likely have the greatest impact on those who seek to use delayed marketing exempt listings.
Meanwhile, the NWMLS has not adopted this approach, and continues to reject the arguments of those who wish to push against CCP and advocate for private listings. However, given that the NWMLS has adopted the CCP, which NAR promulgated in the first place, it will be interesting to see if the latest update from NAR permitting temporary delays will have an impact in Washington State. If it does, it may be that home search sites like Zillow, Redfin, or others will push back on this development. In any case, the real estate industry is seeing moves and countermoves play out in real time regarding public listing of real estate properties nationally. We will continue to provide updates here as matters develop.
If you face issues in the purchase and/or sale of real estate, or if you are a property owner needing guidance with your real estate issues, the lawyers at Beresford Booth remain available to assist you. Beresford Booth has extensive experience with real estate issues, as discussed here. Please do not hesitate to contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.
