MRED MLS moves to make association membership optional 

In what may be part of an emerging trend, one of the nation's largest multiple listing services is moving toward eliminating the mandatory membership requirement that its subscribers need to meet to enjoy MLS access.

Midwest Real Estate Data (MRED) voted this week to make it voluntary for MRED subscribers to be part of the National Association of Realtors, as well as their state and local associations.

MRED President and CEO Rebecca Jensen confirmed the March 16 vote, which was first reported by The Real Deal, in a phone interview with Real Estate News. Jensen noted that the decision still needs to be finalized by MRED's board, which is slated to consider the move on March 19. If approved, the 15 associations aligned with MRED would then have the option of adopting the changes.

Lessening litigation risk: One of the key reasons MRED is moving in this direction is to derisk amid the industry's current period of antitrust litigation, according to Jensen.

As the eighth-largest MLS in the nation serving about 50,000 subscribers across Illinois, Iowa, Wisconsin and Indiana, MRED is also keeping an eye toward the future — and believes this policy shift would help boost membership.

"We're not doing this in any way to shun NAR or talk poorly about them at all," said Jensen, who described herself as an association advocate who sees value in being an NAR member.

Looking ahead, Jensen expects other MLSs will consider similar changes because "it's definitely been a topic of conversation for at least two years."

What NAR had to say: At NAR NXT last fall, NAR made several changes to its Multiple Listing Services Handbook, including the repeal of some policies pertaining to non-member MLS access. The change came amid ongoing mandatory membership lawsuits, some of which have argued that NAR and local associations have been "unjustly enriched" by these fees at the expense of members.

At the time of the policy shift, the national organization described association membership requirements as "a matter of local discretion." 

When asked about the March 16 MRED vote, an NAR spokesperson said that 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."

"Each MLS has full discretion to set their own participation requirements to suit their local marketplace, including whether to require Realtor membership," the spokesperson said in an emailed statement. "NAR remains committed to protecting the benefits MLSs provide agents, consumers, and the industry."

Potential cost savings: The money agents could save on membership fees may be significant. According to reporting by The Real Deal, a typical Chicago agent pays around $1,000 in annual membership fees — but that total could drop to a MLS base fee of $414.

However, some major brokerages may continue requiring agents to be NAR and local association members because of the risk management resources and other services those organizations offer, noted Illinois Realtors CEO Jeff Baker.

"Whether it is access to forms, legal and educational resources, or simply the use of the term 'Realtor', the simple fact is, it is still overwhelmingly to the advantage of a broker to remain a Realtor member," Baker said in an emailed statement.