Dispelling a misconception
The end of the year is drawing near — and so are the dreaded annual association membership dues for 2024.
Many agents balk at the thought of having to pay these excessive and unnecessary dues. Further, as we move into a challenging recessionary economy, brokers need to ask themselves what they can tangibly do to reduce their operational costs and remain competitive – and in turn, attract good agents.
Cat out of the bag: association membership is unnecessary.
However, many real estate licensees still erroneously believe they must join the National Association of Realtors (NAR)®, the California Association of Realtors (CAR)® or the local Association of Realtors (AOR) branch of CAR® to practice real estate in California. Worse, these trade union leviathans are too often equated with the Department of Real Estate (DRE) due to their past inappropriate top-level liaisons.
And for those tuned into the news, NAR® is currently notorious in the headlines for losing an anti-trust lawsuit evolving from their cooperative compensation rules.
Related article:
Some licensees have a slightly better grasp of the implications of membership or non-membership in the real estate trade union, but still mistakenly believe that union membership is necessary in order to access their local multiple listing services (MLS).
This impression is not unfounded. Before 1976, most real estate trade unions owned their local MLS and required all access to come through membership in their association. Such practice was prohibited in 1976. [Marin County Board of Realtors, Inc. v. Palsson (1976) 16 C3d 920]
high-endrolex.com
Palsson prohibited making association membership a requirement for MLS access to the marketplace. The association was allowed to exact a “reasonable fee” from nonmembers, derogatorily called Palsson members, for MLS access.
As an agent, your obligation to become a trade union member in order to access the MLS depends on your broker’s membership level with the AOR.
For access to the MLS, AORs give brokers the option of:
- Realtor member, which includes CAR® and NAR® membership along with MLS subscription; or
- an MLS participant/subscriber only.
Thus, trade union membership is not required to practice real estate nor is it required to access an MLS. This fact can be confirmed with your local AOR, as they well know the rules.
Subscribing to the MLS without entanglement
To subscribe to the MLS, you are to:
- have a valid California real estate license;
- be a broker, or a sales agent under a broker who is a member of the MLS;
- apply for access to the MLS; and
- pay an MLS fee, which varies by AOR.
If you are an agent of a broker who is not a member of an AOR, your broker will not require you to be a member of an AOR. However, if your broker is a member of an AOR, your broker will require you to also be a member of the AOR. Remember, as a sales agent, you are acting on behalf of your broker – an agent of the agent – and are to parallel the broker’s membership or non-membership in the AOR.
No other restrictions apply to MLS access. None.
Real estate brokers and their agents can continue to access an MLS without paying excessive and unnecessary dues or entangling themselves in a trade union’s bureaucracy, codes and arbitration rules.
Knowledge is strength — and in this case, money saved.
Related article:
NAR® members jump ship following sexual harassment allegations and more anti-trust lawsuits
Editor’s note – This article was originally published in September 2019 and has been updated.
How can you join the MLS if the only way seems to be through an AOR and those make you join CAR and NAR? Feels like a racket but I don’t see a way around joining just the MLS!
Hi Marie,
For MLS access, an AOR may reasonably require you to pay an MLS fee to the AOR. It cannot also require trade union membership for MLS access.
However, as an agent, your obligation to become a trade union member in order to access the MLS depends on your broker’s membership level with the AOR.
Best of luck,
Editorial Staff
Hi Marie, The way around, is to join my Brokerage. We are MLS Only and not Realtors… We use CRMLS via PSAR – San Diego. You are welcome to join.
Regards
Colin Campbell
SDbeachhomes@yahoo.com
I was a little surprised that FIRST TUESDAY directly competes with C.A.R. And N.A.R………KNOWLEDGE IS POWER…..
The local MLS will not work with any forms not CAR approved. The cost for CAR forms is basically equivalent to NAR/CAR dues which include the approved forms.
This what I have found as well for California. The whole thing is like a catch 22. You don’t have to be a member BUT you will no longer have access to Zip Forms. Zip Forms, when I priced it came in at $1499/year! for non-members of CAR . It was a whole lot less expensive in places like Wisconsin, but then again I imagine no state has as many forms as CA! We are drowning in them!
This will not work in Las Vegas. For them, only full board Realtor Members are allowed access to the MLS.
Is this still true? Where do you go online to actual get just the MLS?
Great article! I used to be an exclusive MLS member only but then AOR forced us to become members by raising the cost of the winforms and eliminating the paper forms which forced us to join their waste of a Realtor fee.
I’m one of the independent Broker’s that is an MLS member without the unnecessary pyramid scheme of NRA/CAR or as the author states, “without paying excessive and unnecessary dues or entangling themselves in a trade union’s bureaucracy, codes and arbitration rules.” Thank you for offering this advice to FT members! I continue to be a customer for this very reason of shared knowledge and wisdom in the industry that is fast about to change! Re: https://twitter.com/metrotuned/status/1173732842733326336?s=20