Redfin, the online real estate broker, leaves National Association of Realtors

Redfin is cutting ties with the National Association of Realtors, one month after The New York Times published an article detailing a yearslong pattern of allegations of sexual harassment, discrimination and retribution that the organization did not address.

The online brokerage, based in Seattle, said it was not yet able to fully extricate itself from the national group, known as NAR, because of the group’s influence in the industry. But Redfin announced Monday that, effective immediately, it would require many of its 1,800 brokers and real estate agents to cancel their memberships and cease paying dues, which often amount to hundreds of dollars per year for each member.

NAR is a powerful nonprofit with 1.5 million members, making it the largest professional organization in the United States. It has more than $1 billion in assets and, in many home markets in the United States, controls access to the databases of home listings that agents rely on to buy and sell homes, as well as lockboxes and industry-standard contracts.

Even before the sexual harassment allegations against the organization came to light, NAR faced rumblings of discontent within the industry. The organization is the subject of multiple lawsuits that claim its policies violate antitrust laws and inflate the fees that home sellers must pay to their buyers’ agents.

Glenn Kelman, Redfin’s CEO, said he had been frustrated with NAR’s refusal to consider changes to its policies on broker compensation for quite some time. In June, Redfin’s leadership team determined that Joe Rath, Redfin’s head of industry relations, would resign from NAR’s board of directors. Redfin qualified for a seat on the 900-person board in 2022 based on its size and the scope of its influence.

Mantill Williams, an NAR spokesperson, said in an emailed statement that the organization respected Redfin’s decision. But he insisted that NAR’s policies on agent compensation, as well as its requirements that many agents pay dues to access home listing databases, were “considered the best value in the world.”

“NAR stands by its pro-consumer, pro-competitive guidance for affiliated local broker marketplaces that ensure equity, efficiency, transparency and market-driven pricing options for homebuyers and sellers,” Williams said.

He declined to comment on the allegations of sexual harassment and their influence on Redfin’s decision.