Phoenix Realtors fires back at NAR over MLS Choice program 

Phoenix Realtors has responded to a cease-and-desist letter from NAR, saying that PAR is willing to talk, but "will not categorically withdraw" its new MLS Choice offering.

In a letter dated Dec. 23, the attorney for the Phoenix association challenges NAR's interpretation of what MLS Choice is and says NAR's "threats" will "chill the innovation of other associations and MLSs."

"NAR asserts that MLS Choice is a PAR "membership option" and that "PAR is allowing real estate licensees to become a member [sic] of PAR through 'MLS Choice" without joining the state or national association. As PAR has explained repeatedly, MLS Choice does no such thing," attorney Christopher Osborn wrote.

"Rather, MLS Choice simply enables non-REALTORs to obtain MLS services and other products and services such as transaction forms and education, which are products and services offered by REALTOR associations and MLSs to non-REALTORs across the country."

MLS Choice costs $249 annually — less than half the price of a three-tier membership. The Phoenix Realtors site states that real estate professionals who choose it cannot call themselves "Realtors" and will lose access to association benefits including discounted insurance and a broker legal hotline.

How we got here: In an email sent Dec. 18 by NAR to its board of directors and other leaders, NAR General Counsel Lesley Muchow said the national association 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.

However, NAR also made clear that it was not attempting to limit access to the MLS for non-Realtors. "MLS participation is determined at the local level," Muchow wrote. "This is a matter of maintaining standards for the Realtor brand as we always have and will continue to do."

Real Estate News has reached out to NAR for additional comment.

What Phoenix association leadership has to say: CEO Andy Fegley said in a statement sent to Real Estate News on Dec. 23 that "MLS Choice is not and never will be a Realtor membership. It is a fee-based subscription. There is a difference between increasing choice and replacing it, and we will always proudly support and champion Realtors."

"We were surprised to learn that NAR would view increased options as a threat, and we've engaged in meaningful discussion with them to help alleviate their confusion," Fegley added. "Our primary goal is to engage in an amicable path forward with NAR so that we can best serve our industry's real estate professionals."

What's next: Phoenix Realtors has offered to make changes to MLS Choice materials, its attorney wrote, and "asks that NAR reconsider its position and engage in meaningful conversation about solutions rather than using NAR's substantial financial superiority to quash PAR's effort to innovate and serve the demands of the real estate market."