‘Unfiltered’: What agents need to know about rules vs. laws 

The Real Estate Insiders Unfiltered podcast explores the people and forces that shape the real estate industry. Check out our top takeaways and this episode from NextHome co-CEOs James Dwiggins and Keith Robinson.

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On this episode of Real Estate Insiders Unfiltered, ARELLO CEO Jessica Hickok has three important words for agents: "Know your law." 

Since NAR's new rules took effect, her organization — the Association of Real Estate License Law Officials, which focuses on real estate education, licensing and enforcement — has been fielding more calls from agents who don't quite understand the difference between association policies and state laws. 

Her take on those policy changes and other challenges facing the industry? "This is just another lion over the hill," Hickok said — it may have "a louder roar," but the industry will get through it.

That assessment is based on a long and varied career in real estate. Hickok was a licensed agent for nearly 14 years, then spent another decade in association leadership, serving as CEO at a local and state association and overseeing a local MLS before taking the helm at ARELLO In 2023. 

She also reveals the top issues regulators are hearing about and weighs in on the surprisingly contentious topic of "days on market."

Realtors vs. licensees: One distinction that has become increasingly important following the commissions settlements is that not all licensed agents are Realtors — in fact, Hickok said, "typically that's about half and half for what we have in active licenses," meaning that in addition to the roughly 1.5 million Realtors, there are another million-plus licensed real estate agents who are not association members. 

Why does that matter? "Realtor members, they have to follow NAR's policies, but for licensees following state laws and regulations, the law will always trump any kind of member policy there is," Hickok said.

"Your MLS rules and regulations, and your requirements of membership within the Realtor organization are not the law. You have to know your law in order to practice real estate in your state. So know your law, understand your fiduciary to your clients and customers, and understand your fiduciary duties to the public as well." 

What concerns are regulators hearing? "The phones are ringing off the hook, and it's more Realtors complaining about other Realtors — how they didn't have a buyer broker agreement or a buyer agency agreement." The response? "If there's a state law, then yes, you can file a complaint, but not all states have that requirement. … You have to take that back to your association, call your local association and talk to them about it."

"Understanding the difference between member requirements and laws has been a big thing. We also see a lot of phone calls about private listing networks and the rise of those and what's going on there. And broker supervision is always an issue."

So, ARELLO isn't involved in MLS or NAR policy enforcement? "The only thing the state regulators can enforce is what's in the law," Hickok said. "The problem is, the laws and even the structure or the makeup of these real estate jurisdictions vary from state to state. So a standard regulation across the board about what they should be enforcing probably isn't feasible because there's so many different laws out there." 

The regulatory POV on 'days on market' and private listing networks: "If you disclose [days on market] or if you are asked to disclose it, the law says you must be accurate. … So really the regulators are saying, 'Is it accurate or not?'" 

"If there's misrepresentation and fraud, the regulators are going to step in. If the consumer is not being protected, the regulators are going to step in. So if a property is privately marketed for weeks, but it only shows a few days on the market, it creates the illusion of fresh demand. So, you know, that's part of the reason we're talking a lot about these private listing networks that are popping up."

Why DOM accuracy matters: It's not just relevant to buyers and sellers, Hickok noted. "There are a whole lot of housing programs and federal and state funding to help those areas where real estate markets may not be as strong. And the one thing that I don't think anybody thinks about with days on market is that it's showing how strong the real estate market is, and you want that to be accurate."

"So if turnover isn't happening in your homes or it's taking a long time to close them or they sit on the market forever, maybe that's going to help with the reporting that comes in for getting funding into your counties or your cities."