In the ever-evolving landscape of real estate, policies that promote transparency and fairness are crucial for a healthy market. One such policy is the National Association of Realtors' (NAR) Clear Cooperation Policy (CCP) which is now under attack. “Clear Cooperation is being picked apart by large real estate companies with huge market share and eager attorneys threatening litigation,” writes Brown Harris Stevens CEO Bess Freedman in a recent opinion piece for Inman News.

While there may be room to improve upon some aspects of the policy, Freedman argues:

“dismantling Clear Cooperation entirely will have a profound ripple effect on the industry – and not in a good way.”

Forgoing all the tenets of CCP could lead to reduced transparency and cooperation among agents. Freedman recalls a time in real estate reminiscent of the "Wild West," where agents guarded listing information, resulting in a lack visibility and limited motivation to cooperate. The essence of CCP has been instrumental in moving away from such practices, promoting a more equitable environment for buyers, sellers, and agents alike. “Do we really want to go back to a time when buyers had to visit multiple sources to cobble together information?” asks Freedman.

The CCP was designed to curb the prevalence of "private exclusives," where properties are marketed discreetly, limiting exposure to select clients. While this strategy might benefit certain sellers seeking discretion, it often excludes a broader pool of potential buyers, undermining the principles of a free and open market. 

“Let’s be clear: sellers have the choice to transact however they want whether it’s on the MLS or off-market. They don’t even have to use an agent. This is how free markets work,” adds Freedman.

By ensuring that publicly marketed properties are accessible through the MLS, CCP enhances transparency and fairness in real estate transactions for buyers, sellers, and renters alike.

Read the full piece on Inman.com