Just days after attorney Michael Ketchmark publicly warned National Association of Realtors (NAR) brokers about potential legal repercussions if they vote to maintain the controversial Clear Cooperation Policy (CCP), Compass has intensified the pressure. The brokerage giant recently sent letters to multiple MLSs, urging them to reconsider enforcing CCP, hinting strongly at litigation risks if they fail to act.
As Rob Hahn outlined in his recent analysis, Compass’s message to MLSs was clear: adopt flexible enforcement models similar to those already implemented by key MLSs such as Bright, SFAR, and MRED, or risk being targeted in court. Hahn noted the letter contained “a suggestion with a hint of threat: ‘your MLS is subject to litigation risk’ and ‘would create additional legal risks.’”
Compass specifically advocated for more flexible MLS policies, including options allowing for “Coming Soon” listings to be marketed publicly without accruing days on market or disclosing price changes prior to officially becoming active listings. This aligns closely with the industry trends and consumer privacy concerns highlighted in my previous article, where attorney Ketchmark argued that CCP restricts homeowners’ control over their own property marketing.
Compass’s demands also emphasized maintaining the “Office Exclusive” category, allowing sellers who prefer complete confidentiality to avoid MLS exposure entirely—a practice common in commercial real estate but contentious in residential circles.
According to Hahn, Compass has effectively already “won the war” on Clear Cooperation regardless of how NAR votes, due to widespread non-enforcement or relaxed interpretations of the rule among major MLSs nationwide. He summarized the situation succinctly: “MLSs, brokers, and agents should prepare for a post-CCP environment.”
The debate now focuses increasingly on viable solutions like the “MLS Exclusive” model, which offers a compromise between ensuring broad professional exposure and maintaining seller privacy—exactly the kind of market-driven flexibility Compass seeks. This approach, already under consideration by MLSs like MARIS in St. Louis, would satisfy legal concerns raised by Ketchmark while aligning closely with Compass’s demands.
As NAR’s vote approaches, the message from both legal and industry heavyweights like Ketchmark and Compass is clear: reform the policy now or brace for potentially costly litigation and market disruption.