Phoenix Association of Realtors® agrees to drop “MLS Choice” option that had prompted NAR to start Charter revocation process

In December, 2024, the National Association of Realtors® (NAR) had sent a cease-and-desist letter to the Phoenix REALTOR®, the local association of real estate licensees in the Phoenix area, over its new membership option called “MLS Choice.”

The NAR message appeared to be that the MLS Choice option may be in violation of so-called “three-way agreement” between NAR, Arizona REALTORS® (the state association of real estate licensees) and Phoenix REALTORS® (the local association of real estate licensees).

NAR claims that it is a federation or union of organizations, rather than a single entity organization.  The basis for the federation structure is what it calls a “three-way agreement” between the local, state, and national associations.  It argues that all local associations and their REALTOR® members are members of state associations of REALTORS® and of the National Association of REALTORS®.  By entering into the “three-way agreement,” the local and state associations have agreed to comply with the policies and code of ethics of NAR and are granted permission to use the “REALTOR®” designation.

The MLS Choice option seemed to create another type of membership that allows real estate licensees to become members of Phoenix REALTORS® without becoming members of the Arizona REALTORS® or NAR.

On February 21, 2025, the Phoenix REALTOR® announced that it was discontinuing the “MLS Choice” option and replacing it with “Non-member MLS Access” option.  This was the result of the negotiations between the NAR and the Phoenix REALTOR® after NAR initiated its charter revocation process.  The new program still allows non-members (of Phoenix REALTOR®, Arizona Realtors®, or National Association of Realtors®) to pay 50% less than members and access the MLS.

You can review the announcement by the Phoenix REALTOR® here.

You can review the press release by the Phoenix REALTOR® here.

The announcement by the NAR can be found here.

Thus, it appears that the Phoenix Realtors® compromised with NAR under the threat of losing its charter, but it can still offer MLS access to brokers who have no affiliations with local, state associations or the NAR.