NAR scores another court victory over membership rules
A Pennsylvania judge dismissed a 2024 case challenging mandatory membership requirements just a week after a similar suit was dismissed in Texas.
The National Association of Realtors appears to be on a legal winning streak, tallying its third court victory this month.
On July 31, a case challenging NAR's mandatory membership policies was dismissed in U.S. District Court for the Eastern District of Pennsylvania. A week earlier, another membership-related case in Texas was dismissed, and on July 15, NAR prevailed in an antitrust case brought by Homie Technology.
What this case was about: In Oct. 2024, Maurice Muhammad filed a lawsuit against NAR, the Pennsylvania Association of Realtors and the Greater Lehigh Valley Multiple Listing Service.
Muhammad, a broker in Allentown, Pennsylvania, alleged that requiring agents to join NAR in order to gain access to their local MLS was a violation of antitrust laws. Muhammad also alleged that this policy disproportionately affected minority professionals who lack the financial resources to pay the mandatory fees.
Why the case was dismissed: Judge Joseph Leeson dismissed the case with prejudice, meaning it cannot be refiled.
In a 50-page opinion, Leeson said that aside from the membership fee — which, he argued, can serve pro-competitive purposes — there were no indications that the plaintiff was excluded from participation in the association or MLS.
"Accordingly, the antitrust claims failed," Leeson wrote.
What NAR had to say: In a statement, a spokesperson said the decision reinforces the position that NAR's "policies foster competition and are not discriminatory."
"Like other national membership organizations, NAR's integrated structure is essential to the value we provide our members, including a unified voice on policy issues, a uniform Code of Ethics, and valuable tools and professional development opportunities that help members get to, and execute, their next transaction," the statement read.