Make NAR membership optional, state association says
Alabama Realtors wants members to have “greater flexibility” with their dues dollars. Without it, NAR faces legal risk and could “lose these members forever.”
The Alabama Association of Realtors has asked NAR to allow its members to "choose where they allocate their membership and dues dollars between the local, state, and national levels" — or risk losing them forever.
It's a request that strikes at the heart of what's known as the "Three-Way Agreement," which requires agents who join their local Realtor association to also join their state association and NAR.
"While there is loyalty to the Realtor organization (between all three levels — local, state, and national), there is a growing and vocal desire for greater choice and flexibility in deciding where members spend their hard-earned membership and dues dollars," the Alabama Association said in a letter sent Sept. 17 to Nykia Wright, CEO of the National Association of Realtors.
The letter requests a response "as soon as possible," with the 2025 billing cycle approaching.
"NAR is reviewing the AAR's letter," a spokesperson said, highlighting the benefits of its "integrated membership model."
"In Alabama, this is how NAR was able to secure landmark wins for more than 18,000 Alabama Realtors, including a favorable decision in the Alabama eviction moratorium case at the U.S. Supreme Court and release of liability as part of our proposed settlement related to broker commissions," the NAR rep said. "State and local associations set their own dues, but NAR's annual membership dues of $156 help to make these and other member services possible."
What's at stake: "We understand that this decision carries significant risk," said the letter, which was signed by Alabama Realtors CEO Jeremy Walker and President Senia Johnson. "But there is also risk in doing nothing from a member sentiment and legal standpoint."
Frustrated members are "actively looking for alternatives" to Realtor associations, the letter said. And alternatives are emerging. "If we fail to act, we may lose these members forever."
Letting Realtors decide for themselves will create a "membership that is genuinely invested in where they choose to join," the letter said. "Each level of the organization will have to work harder to ensure our services align with members' needs and expectations."
The legal risk includes lawsuits filed this summer challenging mandatory NAR membership. And the letter seemed to obliquely refer to litigation the industry has faced over commissions: "Consumers require and deserve greater choice in making decisions about real estate transactions," it stated. "Our members have requested the same flexibility."
NAR on why the 'Three-Way Agreement' matters: The structure of the Realtor organization — a federation of associations at the state, local and national levels — provides "a framework for effective communication, delivery of goods and services, and enforcement of the Realtors Code of Ethics," NAR explains on its website.
NAR also credits the "federated structure" with increasing the overall organization's size and allowing "the Realtor organization to use its combined resources (both human and financial) and influence to have a unified, powerful voice in shaping public policy, set recognized standards for ethical real estate practice, and contribute to the betterment of the real estate industry."