Midwest Real Estate Data (MRED) moved Monday to formally separate access to its multiple listing service (MLS) from mandatory membership with the National Association of Realtors (NAR) — a change the organization’s leader said is aimed at expansion and risk management.
MRED offers wholesale listing data and technology to roughly 40 partner Realtor associations and MLSs across the Midwest. These groups in turn provide services to their member agents.
Under the change approved Monday by MRED’s association owners, the partner groups will have the option to offer MLS access to licensed agents who are not Realtors.
“It’s now up to each individual association to say whether or not they are going to offer membership access to non-Realtors,” MRED CEO Rebecca Jensen told HousingWire. “Nothing requires them to. It is just simply an opportunity for them to change things.”
MRED is jointly owned by Realtor associations and brokerage firms. While association owners signed off this week, the policy must still clear other hurdles.
Jensen said she will present revised rules and regulations to the group’s board of managers next week. Proposed updates include a code of conduct designed to ensure any non-Realtor participants will be held to professional standards.
“Assuming that passes, which I hope it does — but you know, it’s not up to me, it’s up to the board — it would be up to each individual Realtor association or MLS that we partner with to implement it,” Jensen said.
Partner groups will face individual business decisions on whether to extend additional services — such as lockbox access or forms libraries — to non-Realtor subscribers, she added.
The move positions MRED to enter markets where non-Realtor access is already permitted, either by state law or voluntary policy.
Jensen cited so-called “Thompson states” — a reference to past litigation in parts of the Southeast — and California as examples where restrictions on tying membership to MLS access are already in place.
“It would just allow MRED to be able to expand our marketplace,” she said. “As MRED’s market area expands, I don’t want to have an artificial boundary where I can’t expand into an area that already allows non-Realtor access, because of my operating agreement.”
Jensen also specified there are no current plans to make use of MRED’s private listing network being dependent on Realtor status, with member organizations holding autonomy to make their own access decisions.
Overall, she said the rule change would reduce legal exposure.
“It helps us de-risk in case a lawsuit was brought, where we would say we don’t have that requirement,” she said.
Additionally, she stressed that Monday’s decision was not a rebuke of NAR.
“We’re very supportive of NAR and the Realtor,” Jensen said. “This, in no way, was changed because of NAR. We hope that we have as strong of a relationship going forward as we did prior to this change. I’m hopeful that NAR remains a strong voice for consumers and Realtors.”
NAR weighed in on the decision in an emailed statement.
“Local MLSs play a key role in fostering transparent, competitive and fair housing markets by delivering agents and consumers the most accurate and up-to-date information on home listings,” the association said. “Each MLS has full discretion to set their own participation requirements to suit their local marketplace, including whether to require Realtor membership.
“NAR remains committed to protecting the benefits MLSs provide agents, consumers and the industry.”