The National Association of REALTORS® Meets Competition from a New Trade Association and Listing Service
The National Association of REALTORS®, the largest trade organization in the United States, with assets totaling just over $1B, is being rivaled by the inception of the American Real Estate Association.
In late January, Compass Real Estate agent, Jason Haber, founder of the National Association of REALTORS® Accountability Project and Television Celebrity and owner of the Agency Brokerage, Mauricio Umansky announced the launch of the American Real Estate Association, AREA.
Haber, who held a press conference on the steps of the head office of the National Association of REALTORS® last September has been vocal about demanding transparency inside the oblique walls of N.A.R following the New York Times Expose outing the NAR President, Kenny Purcell for sexual harassment of 29 employees and former leaders within the organization. Haber also called for the resignation of CEO Bob Goldberg, who has since announced his resignation at the end of 2024.
As part of this challenge for power over the lucrative real estate trade landscape, co-founder of AREA, Mauricio Umansky has repurposed another company he co-founded in 2021 – The Property Listings Service to its new name The National Listings Service.
With the continuous lawsuits and questions around antitrust laws in the real estate industry leaving many broker-owners concerned about the repercussions, critics of AREA wonder how anything will be different if there isn’t a decoupling of a trade association and listing services.
Attorney, Collen Clark, of Schmidt & Clark LLP offered his written responses to the following questions.
What are your thoughts about AREA offering the “National Listing Service”?
Attorney, Collen Clark: “The National Listing Service is a platform that allows real estate agents to share and access information about properties for sale. It is not a monopoly, as there are other listing services available, such as Zillow, Trulia, and Realtor.com.
However, if AREA requires its members to use the National Listing Service exclusively, and prohibits them from using other platforms, then it could be seen as a form of tying, which is an antitrust violation.
Tying occurs when a seller forces a buyer to purchase a second product or service as a condition of buying the first one. In this case, AREA would be forcing its members to buy the National Listing Service as a condition of joining the trade organization.
This could reduce consumer choice and harm competition in the listing service market.”
Can one person control both a real estate trade Association AND property listing data?
Attorney, Collen Clark: “Does it pose a legal problem if the founder of the listing service is also the founder of the new association? Well, this could raise some ethical and conflict of interest issues, as the founder would have a financial stake in both the listing service and the trade organization.
The founder could also use his or her influence to favor the National Listing Service over other platforms, or to set the fees and terms of the service in a way that benefits him or her personally.
Plus, the founder could use the trade organization to lobby for policies that favor the listing service or discourage members from using other platforms. This could create a situation where the founder is not acting in the best interest of the members or the consumers, but rather in his or her self-interest.”
Given the plethora of lawsuits across the Nation right now regarding antitrust allegations and consumer protections, what opportunities do you see AREA providing that the National Association of REALTORS® has not been able to establish?
Attorney, Collen Clark: “AREA is adopting a more democratic and transparent governance structure. Eschewing traditional roles such as president or vice president, AREA aims to give more voice and influence to its members. This approach could cultivate a more collaborative and inclusive culture among agents, and circumvent the conflicts of interest and scandals that have previously marred NAR’s leadership.”
About AREA (American Real Estate Association)
There is no information on their public website as of late, only statements to the press.
About Collen Clark
Lawyer and Founder of Schmidt & Clark LLP
Website: https://www.schmidtandclark.com/
Twitter: https://twitter.com/schmidtandclark
Facebook: https://www.facebook.com/schmidtandclark/
About the National Listings Service
Unlike other portals, The NLS will always connect you directly to the listing agent. Your information will never be sold to 3rd party agents or platforms. Simply send an inquiry and get the information you need – hassle-free. No more frustration dealing with random agents who don’t know the details and you can relax knowing you won’t trigger a flood of nuisance calls.
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