NAR's Michigan Legal Win: Bolstering the Three-Way Membership Model Am | Brick & Bit
Real Estate
NAR's Michigan Legal Win: Bolstering the Three-Way Membership Model Am
A federal judge dismissed the Hardy lawsuit against NAR in Michigan, upholding its three-way membership model. Agents gain clarity, but homebuyers face ongoing
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Brick & Bit
April 1st, 2026
6 min readHousingWireAI-curated content
Key Takeaways
NAR's integrated structure survives another legal challenge, but pressure on commissions and competition persists, with federal regulators watching closely.
A federal judge dismissed another antitrust lawsuit against the National Association of Realtors (NAR), bolstering its membership model in a...
This ruling adds to a string of similar dismissals in Louisiana, Illinois, Pennsylvania, and Texas since 2024, reflecting a consistent judic...
A federal judge dismissed another antitrust lawsuit against the National Association of Realtors (NAR), bolstering its membership model in a real estate market under intense regulatory and legal pressure. This 2026 ruling not only reinforces NAR's operational structure but also sets a key judicial precedent amid growing scrutiny over commission practices and Multiple Listing Service (MLS) access.
The Big Picture
The National Association of Realtors just scored another significant legal victory. On Wednesday, Judge Johnathan Grey of the U.S. District Court in Detroit dismissed the Hardy lawsuit, filed in August 2024. Plaintiffs, a group of consumers and independent agents, claimed that requiring all agents and brokers in Michigan to be members of NAR, their state Realtor association (Michigan Association of Realtors), and a local board (such as the Greater Metropolitan Association of Realtors) to list properties on RealComp—the state's primary MLS—violated antitrust laws, specifically the Sherman Act. The court found the plaintiffs' claims "misleading and contradicted by reality," noting that the three-way membership does not restrict competition but promotes transparency and standardization in the market.
judge signing legal documents in his chambers
This ruling adds to a string of similar dismissals in Louisiana, Illinois, Pennsylvania, and Texas since 2024, reflecting a consistent judicial trend favoring NAR. The organization, representing over 1.5 million members nationwide, has faced multiple legal challenges over its commission and MLS access practices, including Department of Justice investigations and class-action suits. In November 2025, NAR unveiled historic MLS policy changes, allowing each MLS to set its own access and membership rules, which could modulate the future impact of such cases by decentralizing control. However, this Michigan ruling suggests that, at least in the near term, courts are backing NAR's integrated model as an industry pillar.
“NAR's integrated structure survives another legal challenge, but pressure on commissions and competition persists, with federal regulators watching closely.”
By the Numbers
- **Dismissed lawsuits since 2024:** Multiple federal judges have tossed similar cases in Illinois, Pennsylvania, Texas, and Louisiana, solidifying a judicial trend favorable to NAR.
- **Hardy lawsuit date:** Filed in August 2024, dismissed in 2026 after a nearly two-year legal process.
- **Dismissal motion:** Defendants, including NAR and its affiliates, filed it in January 2025, arguing lack of legal merit.
- **MLS policy changes:** NAR announced them in November 2025, with gradual implementation starting in 2026, allowing each MLS to define local rules.
- **NAR members:** Over 1.5 million nationwide, with a strong base in Michigan through state and local affiliations.
By the Numbers
- **Dismissed lawsuits since 2024:** Multiple federal judges have tossed similar cases in Illinois, Pennsylvania, Texas, and Louisiana, solidifying a judicial trend favorable to NAR.
- **Hardy lawsuit date:** Filed in August 2024, dismissed in 2026 after a nearly two-year legal process.
- **Dismissal motion:** Defendants, including NAR and its affiliates, filed it in January 2025, arguing lack of legal merit.
- **MLS policy changes:** NAR announced them in November 2025, with gradual implementation starting in 2026, allowing each MLS to define local rules.
- **NAR members:** Over 1.5 million nationwide, with a strong base in Michigan through state and local affiliations.
chart of judicial trends showing dismissals of lawsuits against NAR since 2024
Why It Matters
This ruling has deep, multifaceted implications for the real estate sector. For NAR and its affiliates, like the Michigan Association of Realtors and Greater Metropolitan Association of Realtors, it's a crucial legal breather that validates their three-way membership model. It reinforces the idea that this structure is essential for competition and transparency, as an NAR spokesperson argued, highlighting that standardized membership facilitates information sharing and protects consumers. Member agents and brokers can operate with more certainty, knowing MLS access through this membership remains viable, stabilizing their business models amid regulatory uncertainty.
Yet, consumers and critics might see this as a significant setback. The Hardy suit alleged the model restricts competition and keeps transaction costs high, with commissions often exceeding 5-6% of the sale price. Though the court disagreed, public and regulatory pressure on commissions doesn't vanish; in fact, it intensifies in a context of elevated housing prices and inflationary concerns. In Michigan, where the real estate market has shown recent volatility, any perceived barriers to competition can fuel discontent among buyers and sellers. The 2025 MLS policy changes might offer some flexibility by allowing local options, but implementation will be key, and it's likely to vary significantly between regions, creating a fragmented landscape.
What This Means For You
For real estate agents, this ruling offers immediate stability in a turbulent legal environment. If you're a NAR member, your business model relying on MLS access through three-way membership seems safe for now, backed by judicial precedents. But don't get complacent: MLS rule changes mean you must watch for local updates, as new access options could emerge, affecting your competitiveness. For instance, some MLSs might introduce low-cost memberships or fee-based access, altering market dynamics. Moreover, ongoing regulatory pressure suggests adaptability will be essential for long-term survival.
What This Means For You
For real estate agents, this ruling offers immediate stability in a turbulent legal environment. If you're a NAR member, your business model relying on MLS access through three-way membership seems safe for now, backed by judicial precedents. But don't get complacent: MLS rule changes mean you must watch for local updates, as new access options could emerge, affecting your competitiveness. For instance, some MLSs might introduce low-cost memberships or fee-based access, altering market dynamics. Moreover, ongoing regulatory pressure suggests adaptability will be essential for long-term survival.
1Review and optimize your memberships: Ensure your NAR, state, and local board affiliations are current to maintain MLS access, and evaluate if there are additional benefits you can leverage, such as training or marketing tools.
2Actively monitor MLS shifts: The 2025 rule changes might alter how you list properties; be ready to adapt by subscribing to local MLS newsletters and participating in industry meetings.
3Diversify your services and platforms: Don't rely solely on MLS; explore alternative platforms like Zillow, Redfin, or for-sale-by-owner listings to reach buyers and mitigate future risks.
agent reviewing contract on tablet with market charts in background
For homebuyers and sellers, the situation is trickier and potentially costly. Commissions will likely remain a significant expense, representing thousands of dollars per transaction. This ruling could slow efforts to trim those fees, as it validates the current model. Consider negotiating commissions directly with agents—some may be willing to adjust fees in competitive markets—and look for low-cost listing options if available in your area, such as flat-fee services or online platforms. Additionally, educating yourself on the transaction process can help you make more informed decisions and potentially save money.
What To Watch Next
Two immediate catalysts deserve priority attention in the coming months. First, the rollout of MLS policy changes NAR announced in November 2025. Each MLS can now set its own access and membership rules, which could fragment the market, creating regional variations in how agents access listings. Watch for announcements from major MLSs, such as RealComp in Michigan or Midwest Real Estate Data in Illinois, in the coming months; their approach could influence national trends. For example, if a large MLS adopts more flexible rules, it might pressure others to follow suit, shifting the industry's power balance.
Second, track appeals or new lawsuits. Though this case was dismissed, plaintiffs might appeal to a higher court, such as the Sixth Circuit Court of Appeals, or file similar suits in other states. Legal pressure on NAR isn't over; in fact, it could intensify if federal regulators perceive ongoing anticompetitive practices. Any move by the Department of Justice or Federal Trade Commission (FTC) would be a turning point, possibly leading to formal investigations or enforcement actions. Additionally, state legislators might intervene with new laws to regulate commissions, as seen in recent proposals in California and New York.
The Bottom Line
The Michigan ruling strengthens NAR and its three-way membership model, providing a crucial legal breather amid a hostile regulatory landscape. For agents, it's a signal to shore up membership while exploring alternatives and preparing for imminent MLS changes. For consumers, it means commissions will likely stay high near-term, with few immediate options to reduce them. Watch how MLS changes unfold in 2026 and any fresh legal or regulatory action; these factors will determine whether the current model can adapt to an evolving market or face deeper challenges. Ultimately, this ruling isn't the end, but another chapter in an ongoing battle for transparency and competition in the real estate sector.
The Bottom Line
The Michigan ruling strengthens NAR and its three-way membership model, providing a crucial legal breather amid a hostile regulatory landscape. For agents, it's a signal to shore up membership while exploring alternatives and preparing for imminent MLS changes. For consumers, it means commissions will likely stay high near-term, with few immediate options to reduce them. Watch how MLS changes unfold in 2026 and any fresh legal or regulatory action; these factors will determine whether the current model can adapt to an evolving market or face deeper challenges. Ultimately, this ruling isn't the end, but another chapter in an ongoing battle for transparency and competition in the real estate sector.
