ARMLS adopts new independent board model 

The Arizona Regional Multiple Listing Service (ARMLS) will soon begin transitioning to a new corporate governance structure that reflects the MLS's response to industry shifts — particularly the decoupling of commissions — that are still getting ironed out in a post-NAR settlement landscape.

ARMLS's shareholders and board of directors have approved the creation of a new, smaller board that may include business leaders from within and beyond the real estate industry. New board members will be entirely independent of the MLS, and they cannot be licensed to conduct real estate transactions within the state of Arizona, the association-owned MLS informed Real Estate News.

Mitigating risk after years of lawsuit fatigue

The shift, according to ARMLS CEO Matt Consalvo, is largely about protecting the organization from potential future litigation in light of the industry's barrage of legal battles. 

"What we really are struggling with is the inherent conflicts or the inherent perceived conflicts of brokers and agents making decisions within the MLS," Consalvo told Real Estate News. "While the MLS industry is under scrutiny right now, let's just take those optics off the table."

Under the new structure, "independence means [board members] are not fighting for the commission dollar or the transaction in the state of Arizona," Consalvo added. "That's our distinction." 

A smaller board, a new advisory council

ARMLS's board has averaged around 18 directors, and those members have been agents or brokers appointed by associations or elected by the MLS's subscribers. Following a transitional period, the board will look quite different, consisting of just five members who are not active Arizona state licensees. It may include experts from a variety of backgrounds, like finance or law, or real estate professionals who are licensed in other states.

Arizona-based brokers and agents who previously served on the board, as well as other state licensees, will instead be eligible to serve on a shareholder advisory council that provides industry context to board members. Council members will be nominated and appointed by the four ARMLS Shareholder Associations. The advisory council will not be involved in creating new policies or have voting power, but one councilperson will sit on the board of directors as a liaison appointment, Consalvo said, ensuring the advisory council's concerns are heard. Each liaison will be limited to a one-year term on the board.

To support a smooth transition, ARMLS plans to roll the new structure out gradually over the next one-and-a-half to two years, Consalvo said. Starting in April, individuals can apply for independent board positions through a self-nomination process, and a nominating committee will determine who best fits the MLS's current needs.

"Strong governance only works when it balances independence with real-world insight," ARMLS Chair Lance Billingsley said in a statement. The new board structure "further separates business expertise from the practice of real estate to make more objective, forward-looking decisions while still staying grounded in the needs of the brokers and agents it serves," Billingsley added. 

The beginning of a trend?

ARMLS isn't the first MLS to rework its board of directors. In October 2025, NorthstarMLS made a similar move, reducing its board from 20 directors to 11, six of whom were recruited from outside of the real estate industry. Northstar CEO Tim Dain characterized the decision as "a proactive, forward-thinking move that will strengthen the organization."

Consalvo had been in discussions with Northstar leaders prior to that announcement and realized that both MLSs shared similar visions. ARMLS just took a bit longer to sort out the details, he said, adding that the organization wanted to ensure its board would be viewed as entirely independent.

"The scrutiny from counsel, the scrutiny from regulators, the scrutiny from litigators — it's just uncomfortable, because I don't agree with them most of the time, but it's hard to have a good relationship with somebody when you're slapping them upside the head and saying, 'You're wrong,'" Consalvo said. 

"How about we just remove the question? We take the question off the table by saying, 'You can't poke at our perception because our perception is independent, great thinkers.' They're going to make the right decision for the MLS to benefit its subscribers and how it creates an orderly marketplace."

A renewed call for independent boards

While some MLSs have been rethinking their board structures, other industry leaders have turned their attention to NAR — an organization with a massive board of directors. 

In the spring of 2025, 15 brokerage executives came together to form the Pro-Agent Restore Trust in NAR Working Group. Their goal? To urge NAR to both clean up its own house and address issues impacting all real estate professionals, including policies that have the potential to make the industry vulnerable to more litigation. 

One of the group's sticking points has been the trade association's lack of "true independent board members," according to a letter the group penned to NAR last year. NAR's governance structure includes an 8-person paid leadership team, a 1,000-member volunteer board, and 95 committees, forums, councils and boards.

"Independent governance is the cornerstone of all high performing, on purpose organizations," the group wrote in its letter. "Without it, organizational drift occurs at best and fiduciary alignment breaks down at worst."

While NAR has not announced any specific changes to its board structure, its three-year strategic plan includes a tighter budgetary focus, and CEO Nykia Wright has said the organization must "be more agile" operationally.