NAR hits Phoenix Realtors with cease-and-desist over MLS Choice 

The National Association of Realtors has sent a cease and desist letter to Phoenix Realtors, saying that the association's new MLS Choice option "purports to allow real estate licensees to become members of PAR without becoming a member of the Arizona Association of Realtors or NAR."

In an email sent Dec. 18 by NAR to its board of directors, association leaders and others, NAR General Counsel Lesley Muchow said it was taking "necessary action" to defend its three-way agreement, which requires Realtors to join local, state and national associations, and to enforce the NAR constitution and bylaws.

What is MLS Choice? The Phoenix Realtors site describes MLS Choice as a way for brokers to "offer their agents the opportunity to access both the MLS and legal forms, along with several existing benefits, outside of the traditional three-tier membership system."

MLS Choice costs $249 annually — less than half the price of a three-tier membership. The site distinguishes MLS Choice from association membership, stating that real estate professionals who choose it cannot call themselves "Realtors" and will lose access to association benefits.

What Phoenix Realtors — and a local brokerage leader — had to say: Andy Fegley, CEO of Phoenix Realtors, told Real Estate News in November that his organization "will always support NAR." He described MLS Choice as a "modernization" effort to "create a choice for brokers on how they wish to run their business" and said other associations have offered similar levels of choice.

Real Estate News has reached out to Fegley for comment on NAR's cease-and-desist action and its assertion that MLS Choice allows local Realtor association membership.

Bret Lamberson, designated broker and in-house counsel for Russ Lyon Sotheby's International Realty, said on Thursday that his Arizona-based company is evaluating MLS Choice as an option. Lamberson made clear that he views NAR as "a very powerful ally for our entire profession." 

"I'm always one for evolution," Lamberson added. "But I also want to have reasonable reassurance that these new alternatives have staying power."

What NAR had to say: Realtor associations are "chartered to strengthen the Realtor organization to benefit its members and the consumers they serve and set and enforce standards for ethical real estate practices," Muchow said in the email to leaders.

"To be clear, NAR does not require that real estate professionals be members of a Realtor association to access an MLS. MLS participation is determined at the local level," the letter continued. "NAR continues to promote competition and supports pro-consumer local broker marketplaces. This is a matter of maintaining standards for the Realtor brand as we always have and will continue to do."

Resistance to membership rules: NAR has faced increasing pushback against membership requirements in recent months. Several lawsuits have been filed by agents and brokers challenging membership rules; the Alabama Association of Realtors asked NAR in September to make membership in the national association optional; and most recently, two large brokerages — Realty ONE and HomeSmart — announced they will allow their agents in Arizona to opt out of NAR membership in 2025. 

Real Estate News has reached out to NAR for additional comment on its cease-and-desist action, including what will happen if the Phoenix association does not comply.