NAR ends ‘outdated’ separation of MLS, non-MLS listings
The Executive Committee rescinds the “no-commingling rule,” which had spawned legal action against Zillow and the National Association of Realtors.
WASHINGTON, D.C. — The "no-commingling rule" that has been a touchy subject for multiple listing services and home search sites is now a thing of the past.
In a closed-door meeting on June 4, the NAR Executive Committee affirmed a vote by the Multiple Listings Issues and Policy Committee the day before. The move officially rescinds the rule that recommends separating MLS and non-MLS listings.
"This decision was based on feedback about the rule's declining usage and relevance in local marketplaces," a NAR spokesperson said in a statement first reported by Inman.
A controversial policy that landed in court: The prohibition against combining MLS and non-MLS listings has been an awkward situation for years, with many MLSs adopting the policy while some others did not. The rule led to courtroom trouble for NAR and Zillow, who were sued by Real Estate Exchange — known commonly as REX — after Zillow built a separate tab for non-MLS listings, leading to a significant drop in traffic. Zillow and NAR ultimately prevailed in court, and Zillow changed how it handles listings.
'Outdated' approach to listings and search: In a document obtained by Real Estate News explaining the change, the Multiple Listings Issues and Policy Committee concluded that "These optional commingling rules are outdated and not reflective of current marketing trends for online listings and property search."
The committee also noted the change was in response to requests for its removal because of diminished benefits of the rule.
Zillow, which dropped the two-tab policy earlier this year, applauded the Executive Committee's decision.
"Home shoppers have made their expectation clear: they want a seamless, transparent experience that shows all available homes in one place," Matt Hendricks, Zillow's vice president of Industry Affairs, said in a statement to Real Estate News. "Removing the outdated no-commingling rule is a meaningful step toward ensuring the home search process reflects the way people actually shop for homes today."