A REALTOR® Association looking to allow non-members to participate in an MLS and/or provide association products and services to non-members must understand potential limitations to such efforts. While non-member participation is determined at the local level, associations and association-owned MLSs must adhere to applicable state and federal law as well as the NAR Constitution, Bylaws and policies. Associations that adopt non-compliant non-member programs or policies may incur unanticipated legal liability and/or be subject to charter revocation. To avoid such pitfalls, associations and association-owned MLSs considering whether to offer non-members MLS access, products and services should be knowledgeable of and account for the following: 

REALTOR® Associations and Association-Owned MLSs Must:

  • Adopt and adhere to the NAR Constitution, Bylaws and applicable policies, including the Three-Way Agreement and Dues Formula.
  • Control use of the REALTOR® Marks in respective jurisdiction to ensure only members use the Marks.
  • Clearly differentiate between the benefits offered to members versus the products or services available for purchase by non-members.
  • Present a true picture in advertising, marketing, and other representations which accurately depicts the value members receive in comparison to non-member purchase offerings.

REALTOR® Associations and Association-Owned MLSs May Not:

  • Adopt any rule, regulation, practice or policy inconsistent with NAR policy.
  • Advertise, market or imply non-member MLS access, products or services are a form or type of membership.
  • Engage in false, deceptive or misleading advertising and marketing practices which create market confusion, dilute the REALTOR® Brand or infringe on the REALTOR® Marks.
  • Knowingly or recklessly make false or misleading statements about other associations, MLSs, or their programs, products or services.

REALTOR® Associations and Association-Owned MLSs Need to Consider:

  • Failure to comply with mandatory NAR policies may render an association and/or MLS ineligible for coverage under the NAR Insurance Program and may, as a last resort, result in charter revocation.
  • Purchasing separate professional liability insurance covering the provision of certain products and services to non-members which may not be covered by the NAR Insurance Program.
  • Offering products and services related to MLS participation (e.g., standard forms, legal hotline, market stats, education) for purchase a la carte, rather than aggregated or bundled.
  • Charging different MLS subscription fees to non-members and REALTOR® members. Any difference in participation fees for non-member participants should be reasonable and directly related to the costs of providing services.
     

Associations and association-owned MLSs with compliance-related questions may contact narpolicyquestions@nar.realtor.

Download