Understanding the Clear Cooperation Policy

Published On

March 23, 2025

The real estate industry works best when people collaborate and share real estate news and information. A key part of this is the Multiple Listing Service (MLS), which is run by the National Association of Realtors® (NAR). This platform allows real estate professionals to share and find property listings. NAR created the Clear Cooperation Policy to ensure everyone has fair access and transparency regarding property information. This rule greatly affects how real estate professionals do their work.

Exploring the Clear Cooperation Policy: An Overview

Homes for sale

The Clear Cooperation Policy is designed to lower the number of "off-market" or "pocket" listings. This policy requires listing brokers to send listings to the MLS within one business day after they start marketing the property to the public. It ensures that all buyers get a fair chance to see available properties and helps create a more competitive and open real estate market.

The policy causes a major change in the industry, affecting real estate professionals and consumers. Let’s examine what this means in more detail.

The Origin and Purpose of the Policy

The Clear Cooperation Policy started because of worries about off-market listings, also known as "pocket listings." These listings are shared only within a brokerage or with a few selected people, raising issues about fairness, transparency, and possible violations of fair housing rules.

The Department of Justice (DOJ) investigated ongoing litigation regarding unfair practices in the real estate industry, which increased demand for more transparency. The National Association of Realtors® (NAR) implemented the Clear Cooperation Policy last month to address these issues. This policy aims to make things fair by allowing all MLS participants to access listing information quickly.

This policy reduces the practice of keeping listings away from the wider market. This helps ensure equal access and leads to a fairer process for buyers and sellers.

Key Components and Requirements

The Clear Cooperation Policy has a simple rule: If a residential property is listed with a real estate professional and marketed publicly, it must be sent to the MLS within one business day of marketing. This rule applies to many property types and marketing methods, including yard signs, digital ads, brokerage website displays, and social media posts.

However, this policy has some exceptions. For example, office-exclusive listings can be advertised only to agents within the same brokerage. Listings under other types of agreements, like open listings, also do not need to be submitted to the MLS.

These exceptions help the policy support transparency while providing some flexibility for special cases and different types of listings.

The Impact on Real Estate Professionals

Real estate professionals discussing compliance

The Clear Cooperation Policy has changed how real estate professionals work. This means they must adjust their methods, especially those using off-market listings. This change might be tough initially, but it ultimately helps agents and consumers.

Thanks to initiatives by Freddie Mac, real estate agents and brokers can now work in a clearer setting. They have equal access to property information, which creates a fairer situation and helps them serve their clients better.

Compliance Challenges and Solutions

Following the Clear Cooperation Policy means real estate professionals must pay close attention to their compliance. One main issue is understanding what “public marketing” really means. Agents need to remember that even casual marketing actions, like posting on social media, can lead to the requirement of submitting to MLS within one business day.

To make compliance easier, there are several solutions:

  • Use MLS systems effectively: Most MLS platforms offer tools and resources to help users understand the Clear Cooperation Policy.
  • Invest in training and education: Real estate professionals should keep up with any changes or new details about the policy through workshops, webinars, or online resources.
  • Adopt clear communication practices: Brokers must establish clear internal communication channels to ensure that all agents in their brokerage know and follow the policy.

Real estate professionals can work within the Clear Cooperation Policy by tackling these challenges head-on.

Benefits for Agents and Brokers

The Clear Cooperation Policy was seen as a strict rule at first. However, it has many benefits for agents and brokers:

  • Increased Market Exposure: Listing properties on the MLS reaches more potential buyers, helping them sell homes faster and often at higher sale prices.
  • Enhanced Professionalism: The policy encourages transparency and teamwork in the real estate industry. This builds trust and respect among agents, improving the industry's image.
  • Simplified Marketing Efforts: Since all listings must be on the MLS, agents don't need to create separate marketing plans for off-market properties. This saves time and allows them to give better service to clients.

Over time, the Clear Cooperation Policy has shown its worth in making the real estate industry stronger and fairer for everyone involved.

Navigating Policy Compliance for Listings

Understanding the Clear Cooperation Policy is important for success. You need to know its rules and how they apply to listing and marketing. This means recognizing the various marketing activities called "public marketing." You also need to submit listings to the MLS on time.

Now, let’s look at some specific steps agents can take to ensure they follow the rules and avoid problems.

Steps to Ensure Your Listings Comply

To fully follow the Clear Cooperation Policy, keep these steps in mind:

  1. Disclosure and Communication: After you sign a listing agreement, talk to your client about the policy. Explain the benefits and rules for submitting their listing to the MLS. This helps with wider exposure.
  2. Timely MLS Entry: Once you start public marketing, you must submit the listing to the MLS within one business day. This includes activities like Yard Signs—putting up a "For Sale" sign on the property; Digital Marketing—sharing listing details on public websites, social media, or through email blasts; and Brokerage Websites—showing the listing on your brokerage’s website, even in an "office exclusives" section.
  3. Documentation: Keep clear records of your marketing actions. Note the dates and types of what you do. This information is important if there are any questions or issues about compliance.

By carefully following these steps, real estate professionals can avoid issues and remain true to the intent of the Clear Cooperation Policy.

Common Pitfalls and How to Avoid Them

Even with good intentions, real estate professionals can make mistakes with the Clear Cooperation Policy. Here are some common errors and how to avoid them:

  • Misunderstanding "Public Marketing": Public marketing isn't just yard signs. It also includes posting personal social media listings or emailing details beyond your brokerage. These actions require MLS submission. When unsure, always check with your broker or local MLS rules.
  • Waiting to Submit to MLS: Timing is important. Don't wait to enter listings in the MLS, even for small marketing tasks. Create a system to act quickly on any public marketing to prevent violations.
  • Thinking "Office Exclusive" Means No Marketing: "Office exclusive" listings are allowed, but their exemptions are limited. Sharing these listings on public websites or through mass emails is public marketing and needs MLS submission.

Real estate professionals can work confidently within the Clear Cooperation Policy by understanding and addressing these common issues.

Legal and Ethical Considerations

The Clear Cooperation Policy is important for the real estate industry. It has legal and moral impacts on how things are done and is subject to scrutiny. Following this policy is not just about avoiding fines; it also supports fair housing and professional honesty, with proponents arguing that it helps build trust among people in the market.

Knowing the moral background of this policy helps real estate professionals stick to its main values.

Understanding Your Obligations Under the Policy

Following the Clear Cooperation Policy is not just a legal need set by NAR; it's also an ethical duty for real estate professionals. Article 3 in the NAR Code of Ethics highlights the importance of cooperation and fairness when dealing with clients. The Clear Cooperation Policy helps to promote this idea by ensuring equal opportunity and transparency in the market.

While office-exclusive listings are allowed, they should not be used to ignore the spirit of the policy. MLS participants must submit any listing to the MLS within one business day, excluding Saturdays and Sundays, if it is being advertised to the public, no matter the internal brokerage agreements. This may imply that submissions need to be completed by Monday.

Real estate agents demonstrate their commitment to fair and ethical practices by following ethical guidelines and legal rules.

The Role of Ethics in Enforcement

NAR sets the Clear Cooperation Policy, but local MLS boards and Realtor associations mostly enforce it. These local groups depend on reported issues and the ethics of their members to maintain high standards.

NAR's Board of Directors created this policy and provides advice and tools to local boards to help them understand and use it correctly. The Issues Advisory Board at NAR, along with the NAR Board of Directors, also helps by solving problems, clarifying things, and suggesting ways to improve the policy based on how it works in the real world.

In the end, ethical behavior is key to this policy's success. Its ongoing success depends on real estate professionals supporting the policy's cooperation, transparency, and fairness goals.

Conclusion

In conclusion, real estate professionals need to understand the Clear Cooperation Policy. This knowledge helps them follow the rules better. By knowing where this policy comes from, what it requires, and how it affects them, agents and brokers can create better transparency and act more ethically in the industry. They must deal with compliance issues ahead of time, follow the steps, and learn about legal and ethical matters, including matters of discretion. By sticking to these standards, real estate professionals can keep their integrity, gain clients' trust, and succeed in a tough market. Check out our FAQs section for more help ensuring your listings meet the Clear Cooperation Policy.

Frequently Asked Questions

What qualifies as "public marketing" under the policy?

"Public marketing" means advertising beyond your brokerage and its clients. This includes social media posts, yard signs, email blasts, and digital communications marketing, such as digital marketing on public-facing websites that anyone can see. All of these must be submitted to the MLS within one business day.

How does the policy affect private listings?

The Clear Cooperation Policy mainly affects properties with exclusive listing agreements. Homeowners using exclusion forms, like those opting for limited exposure through an "office exclusive" or VOW, can choose their listings. Still, they must submit their Authorization information to the MLS if they do any public marketing.