In mid-2025, a coalition of California real estate professionals filed an antitrust lawsuit against the National Association of Realtors (NAR), aiming to challenge its Clear Cooperation Policy. The lawsuit claims that this rule, enacted in 2019, unfairly restricts the traditional use of “pocket listings” by obligating agents to submit any property marketed privately into the multiple listing service (MLS) within one business day. Pocket listings have long been a preferred method for discreetly matching exclusive properties with a select network of buyers, especially in luxury and high-value markets.
Clear Cooperation Policy Explained
The Clear Cooperation Policy requires that once a property is advertised through private channels such as social media posts, personalized email campaigns, or a brokerage’s website, it must appear on the MLS by the next business day. While intended to bolster transparency and ensure equal access, the fast-turnaround mandate has drastically reduced opportunities for purely off-market promotions. This shift has significant implications for agents who rely on targeted, confidential marketing approaches tailored to high-net-worth clients.
Controversies and Criticisms
Critics of the policy point to several key concerns regarding competition, consumer choice, and market dynamics:
- Reduced Marketing Flexibility: Forcing rapid MLS entry limits an agent’s ability to craft bespoke promotional strategies that emphasize exclusivity and privacy.
- Increased Transaction Costs: Mandatory MLS fees and associated commissions can inflate overall costs for sellers who might otherwise pursue a low-fee private sale.
- Erosion of Negotiating Leverage: Buyers in private deals often accept streamlined processes and flexible terms, but the policy’s requirements can negate those advantages.
- Luxury Market Impact: Sellers of high-value properties, such as celebrity homes or executive estates, often demand discretion. The one-day rule can deter clients who prefer to manage the timing and audience of their listings.
NAR’s Defense of the Rule
In response, NAR emphasizes the benefits of the Clear Cooperation Policy for the broader market:
- Enhanced Fairness: Prompt MLS entry levels the playing field so that no buyer is excluded from opportunities based on personal connections or network size.
- Consumer Protection: By centralizing listings, homebuyers gain access to complete, up-to-date information, reducing the likelihood of discriminatory practices.
- Stronger Market Data: A robust MLS database delivers more accurate market analytics, which helps agents and sellers make informed pricing and marketing decisions.
Potential Impact on Realtors
If plaintiffs win or policies change, agents regain flexibility in showcasing luxury properties. Possible changes might include:
- Revived the ability to host invitation-only preview events without immediate public disclosure
- Option to circulate detailed brochures to vetted audiences before MLS submission
- Freedom to structure sale terms and timelines without the pressure of a rapid public listing
Lawsuit scrutiny could prompt NAR to clarify guidance or carve out exceptions, empowering agents to craft compliant, creative marketing.
Strategic Approaches for Agents
Forward-thinking brokerages are already blending compliance with innovation to meet both policy requirements and client demands:
- “Coming Soon” Teasers: Publish a brief placeholder on the MLS to satisfy the one-day rule, then circulate a comprehensive property showcase privately.
- Rigorous Documentation: Implement standardized systems to timestamp the first private marketing efforts and track MLS submission deadlines.
- Seller Consultations: Guide clients through the trade-offs between full public exposure and discreet off-market campaigns, ensuring clear expectations on privacy, timing, and potential reach.
- Private Network Engagement: Leverage personal and professional contacts, such as wealth managers, family offices, and relocation specialists, to identify qualified buyers ahead of the public launch.
How Scout Realty Team Supports You
- Comprehensive policy briefings that break down complex regulations into actionable insights
- Customizable marketing templates that balance MLS compliance with the exclusivity of clients’ demand
- Interactive workshops focused on ethical pocket-listing practices, risk mitigation, and brand differentiation.
- Technology solutions that streamline lead management, document tracking, and reporting across both private and public channels
Empower your business and seize every marketing advantage. Reach out to the Scout Realty Team today to schedule a personalized strategy session and learn how our resources, training, and technology can help you master off-market promotions, maintain compliance with NAR policies, and deliver exceptional service to your most discerning clients. Contact our team to get started.
