With a resurgence of lawsuits and increasing scrutiny from the Department of Justice, the real estate industry is facing a pivotal moment. Challenges to mandatory REALTOR® membership for MLS access are growing, and the movement toward an Open MLS model is gaining traction.

States like California, Florida, Georgia, Alabama, Massachusetts, and Maine have allowed MLS access without requiring NAR membership for nearly 30 years. Meanwhile, recent lawsuits in Michigan, Pennsylvania, and Louisiana are challenging the necessity of REALTOR® affiliation, arguing that state laws permitting licensed professionals to sell real estate should take precedence over NAR-imposed membership rules.

Additionally, brokerage settlements have eliminated the ability for organizations to require NAR membership. Today, brokerages representing over 650,000 agents cannot or will not mandate NAR membership due to settlement agreements. As a result, many brokerages are now urging MLSs to open their services to all licensed agents—regardless of REALTOR® status.

Overcoming the Fear of an Open MLS

Despite the momentum, many associations and MLSs remain hesitant due to three primary concerns:

  1. Loss of Revenue and Membership

One of the biggest fears is that opening the MLS to all licensees will lead to a decline in association membership and revenue. Traditionally, MLS access has been a significant driver of membership, with many agents joining an association primarily to gain access.

However, associations provide far more than MLS access. Their true value lies in education, advocacy, professional standards, networking, and community engagement. Associations that have decoupled MLS access from NAR membership report minimal membership loss. In fact, one MLS that recently transitioned to an Open MLS has only seen three licensee subscribers—none of whom were previously REALTORS®.

Instead of focusing on compulsory membership, associations should shift their strategy to emphasize voluntary membership benefits, strengthening their value proposition with enhanced services and professional development.

  1. Maintaining Professionalism and Ethical Standards

Another common concern is that allowing all licensees into the MLS will diminish professionalism and ethical standards. However, real-world data does not support this fear.

Online interviews conducted in March 2024 with three MLSs that have operated as Open MLSs for nearly three decades found no significant difference in professionalism or ethical behavior between REALTOR® and licensee only participants. Watch the discussion featuring Art Carter, CEO, California Regional MLS, Merri Jo Cowen, CEO Stellar MLS and Jeff Bosch, CEO, IRES MLS. 

To uphold industry standards, associations can integrate Codes of Conduct into MLS rules and regulations, mirroring the NAR Code of Ethics. This approach ensures all MLS participants adhere to the same high standards—without requiring NAR membership.

  1. Industry Stability and the Future of the MLS

Some worry that an Open MLS could disrupt the industry’s traditional structure. However, states that have already adopted this model have not experienced instability. Instead, they have fostered a more competitive marketplace, increasing participation and expanding listing inventory.

As the legal and business landscape shifts, associations must proactively adapt rather than resist change. Modernizing their approach and providing valuable services beyond MLS access will help them stay relevant and avoid legal vulnerabilities.

The Time to Act Is Now

The fear of an Open MLS is largely unfounded. The experience of states that have embraced this model proves that associations can thrive without requiring NAR membership for MLS access. By focusing on value-driven membership, enforcing professional standards through MLS regulations, and embracing industry evolution, associations can secure their future while fostering a fair, competitive market for all licensed professionals.

WAV Group: Your Partner in Open MLS Success

WAV Group has facilitated productive discussions and successful Open MLS transitions across the country. We assist MLSs with registration forms, billing systems, updated rules and regulations, orientation training, and public relations strategies for launching Open MLS programs.

If you’re considering an Open MLS strategy or need guidance on execution, we’re here to help. Click HERE to connect with us today.