Alabama REALTORS® Pushes to End Mandatory NAR Membership

Membership in the National Association of REALTORS® (NAR) has long been an essential requirement for real estate professionals, but that may soon change in the deep south. Alabama REALTORS® is now pushing to end mandatory NAR membership, allowing REALTORS® to only join local and statewide associations. 

Alabama REALTORS® CEO Jeremy Walker and President Senia Johnson, in a letter dated Sept. 17 addressed to NAR CEO Nykia Wright, outlined their petition’s reasoning and requests.

The letter begins with a preface claiming that Alabama REALTORS®’ leadership has heard from association members desiring more “flexibility and choice” in joining NAR. The letter also emphasizes that members are “proud to be part of the REALTOR® organization and fully support NAR’s federal advocacy efforts.”

The letter continues, saying members should be able to choose whether to pay membership dues to local, state and national associations instead of all as a blanket package.

“While this decision carries risks, we feel it is necessary for the REALTOR® organization to adapt to the rapidly changing real estate landscape. Consumers require and deserve greater choice in making decisions about real estate transactions. Our members have requested the same flexibility in choosing which Association level they join.”

Walker and Johnson also claim that the “greater flexibility” of choice “will ensure accountability” and create an environment where REALTORS® are “genuinely invested” in the individual associations they voluntarily choose to become a part of.

In response to an emailed inquiry from RISMedia, an NAR spokesperson said the organization is reviewing the letter, but also defended the current “integrated membership model” as something that provides uniformity and resources to disparate REALTOR® communities.

“NAR was able to secure landmark wins for more than 18,000 Alabama REALTORS®, including a favorable decision in the Alabama eviction moratorium case at the U.S. Supreme Court and release of liability as part of our proposed settlement related to broker commissions,” the spokesperson wrote. “State and local associations set their own dues, but NAR’s annual membership dues of $156 help to make these and other member services possible.”

Walker and Johnson saw the legal issue from a different perspective, claiming in the letter that there are legal “risks” associated with the current model. They explicitly cited two lawsuits: one filed in August, in which Michigan brokers and an agent sued NAR and their state associations over mandatory membership, claiming post-settlement changes devalue association membership due to the lack of a “guaranteed” broker commission by using MLS. 

The letter also mentions a defunct lawsuit filed in Illinois that focuses on lockbox restrictions and REALTOR® membership, claiming that litigation is “expected” to be revived. 

Alabama REALTORS®’ approach is less aggressive, but reflects the same evident dissatisfaction among REALTORS® on the ground.

“(F)rustrated members are actively looking for alternatives to REALTOR® membership. If we fail to act, we may lose these members forever,” Walker and Johnson wrote. “However, by allowing greater flexibility, we may be able to retain them as members at one or more levels of the organization.”

Alabama REALTORS® did not respond to a request for comment at press time.

Read the full letter by Alabama REALTORS® to NAR here.