RE/MAX is taking a tough stance on Clear Cooperation
As the debate over the controversial Clear Cooperation Policy (CCP) continues, another major brokerage has entered the market.
In the company’s third-quarter 2024 earnings call on Friday: RE/MAX CEO Erik Carlson said the brokerage supports the CCP because it “believes in prioritizing consumer interests over practices that benefit a few at the expense of the many.”
“Agents and companies that promote listings to the broadest possible audience serve the best interests of both buyers and sellers and fulfill their fiduciary responsibilities,” Carlson said. “Buyers deserve equal access to available properties, and sellers deserve the broadest possible visibility for their homes. We stand for trust, transparency and professionalism.”
Carlson’s comment that ending the policy will “benefit only a few at the expense of many” could be interpreted as a veiled shot in the direction of brokers like Compass And The Agencywhose growth plans include turning their platforms into a hub for exclusive listings.
CCP is a rule imposed by the National Association of Real Estate Agents (NAR) that requires agents to list their properties on a NAR-affiliated multiple listing service (MLS) within one day of signing a listing agreement. It poses a significant barrier to building an exclusive list of listings.
Compass has been more than vocal in its opposition to the CCP. During his third-quarter 2024 earnings call on Wednesday, Compass CEO Robert Reffkin framed the brokerage’s position as support for “seller’s choice,” stating that “homeowners should not be forced to do anything they don’t want to do’.
CCP is rated by NAR as the Ministry of Justice (DOJ), under President Joe Biden’s watch, has targeted real estate practices it considers anticompetitive.
So far, NAR has declined to make a final decision on whether to keep or dump CCP. NAR’s advisory board held a meeting on the topic last week, which ended without action as the trade group stated that further evaluation was necessary.
But NAR’s reluctance to make changes may simply be a delaying tactic. The presidential election will result in a change of administration, regardless of whether Vice President Kamala Harris or former President Donald Trump wins. But a second Trump administration would likely shift priorities for the DOJ and allow NAR to enforce policy without the threat of DOJ intervention.
Positions on CCP of real estate entities are largely determined by self-interest. Advertising is the lifeblood of MLSers, who have spoken out in favor of the policy. Last week, Denee Evans, CEO of the Council of multiple listing servicessent an email to its members and NAR stating that concerns about the policy are “inherently invalid.”
Meanwhile, Agency founder Mauricio Umansky has made no secret of his opposition to the CCP HousingWire in October that the policy is “anti-competitive and anti-choice, on which our entire country was built.” The Agency also strives for exclusive listings.
RE/MAX’s earnings call revealed mixed results for the company. Although the company posted a profit of just under $1 million on revenue of $78.48 million, the number of agents remains stagnant. The company announced that it had 52,808 agents in the US at the end of the third quarter, a decline of 6.5% year over year.
After the earnings call, shares RE/MAX fell sharply.
