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Governance Gap
Why agents and brokerage leaders think the real danger isn’t lawsuits — it’s who’s making the rules
Splits and Caps Daily: Action for Agents
November 26, 2025
📈 Market Move:
Rulemaking Reckoning
NAR’s Governance Problem: The Risk No One Wants to Admit. Here’s the short version: After the commission lawsuits, a group representing ~100,000 agents took a hard look at how NAR actually operates — and what they found is scaring a lot of brokerage leaders. Dan Duffy (CEO of United Real Estate) says the real threat isn’t the lawsuit itself… it’s the system that allowed it to happen.
Agents are still pissed.
They feel NAR damaged their reputation, cost the industry a billion dollars, and didn’t defend them. Trust is at an all-time low.
Governance is the real systemic risk.
NAR is self-governed with almost no independent oversight — meaning decisions get made inside an echo chamber of long-standing relationships. Duffy wants outside directors who audit financials, challenge decisions, and actually hold leadership accountable.
The money makes NAR a target.
NAR is sitting on a giant balance sheet and releases its 990s painfully late. Even if nothing sketchy is happening, it looks bad. And worse: having that much cash makes NAR a magnet for future lawsuits.
The organization is bloated.
Duffy says NAR could cut tens of millions in costs without touching what members actually value (advocacy, training). Current “reforms” aren’t enough.
The big picture:
His group wants a version of NAR where agents feel good paying dues, know exactly what they get, and aren’t dragged into another lawsuit because of outdated, opaque rulemaking.
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