Rescinding the controversial “no-commingling rule” will require a thumbs-up from the Executive Committee of the National Association of Realtors.
Dave Gallagher2 mins
WASHINGTON, D.C. — The "no-commingling rule" that has been a touchy subject for multiple listing services and home search sites is one step closer to being a thing of the past.
The Multiple Listings Issues and Policy Committee voted on June 3 to rescind the rule that recommends separating MLS and non-MLS listings. However, the NAR Executive Committee must agree before the change becomes official and is taking up the matter in a closed session set for June 4 at the National Association of Realtors legislative meetings.
Tuesday's committee meeting was closed to the press, but Real Estate News obtained a document of the results after it ended.
A controversial policy that landed in court: The prohibition against combining MLS and non-MLS listings has been an awkward situation for years, with many MLSs adopting the policy while some others did not. The rule led to courtroom trouble for NAR and Zillow, who were sued by Real Estate Exchange — known commonly as REX — after Zillow built a separate tab for non-MLS listings, leading to a significant drop in traffic. Zillow and NAR ultimately prevailed in court, and Zillow changed how it handles listings.
'Outdated' approach to listings and search: In the document explaining the change, the committee concluded that "These optional commingling rules are outdated and not reflective of current marketing trends for online listings and property search."
The committee also noted the change was in response to requests for its removal because of diminished benefits of the rule.
In discussing the reasoning behind its decision to drop its two-tab policy earlier this year, Zillow said it has long advocated against the no-commingling as an increasing number of MLSs declined to follow the policy.
"Consumers want and expect a single-search experience, where all available homes for sale can be viewed seamlessly," said Matt Hendricks, vice president of industry affairs at Zillow. "We applaud the many MLSs that have revoked the no-commingling restriction, and we're excited about enhancing the search experience to reflect this progress as we expand single search on a by-market basis."
