Will federal AI regulations override state housing efforts?

"Sam DeBord, CEO of the Real Estate Standards Organization (RESO), emphasized the complex environment that agents, brokers and MLSs already operate within with or without new AI-specific laws layered on top. He said that being ready for the regulations that come next starts with understanding how MLS licensing works and who ultimately controls compliance. Real estate agents get licensed to use MLS data through their relationship with their brokerage, which is the participant in the MLS, DeBord said."

"So all of these parties are bound by the license that the MLS grants to advertise the clients' listings according to those rules. They should all be monitoring where that data is used. It's usually the MLS that's responsible for compliance measures if its data is being used outside of the license terms. This structure matters as AI developers increasingly seek large, standardized datasets."

"DeBord said a national approach to AI oversight could, in theory, reduce confusion. Reasonable, consumer-centric, standard regulation across the country could bring a lot of efficiency for professionals and home buyers and sellers, as opposed to fragmented laws across states, he said. Over the past two years, states have taken the lead on AI regulation particularly where automated systems intersect with housing and credit."

Real estate agents obtain MLS access through their brokerage, which is the MLS participant and holds licensing responsibilities. All parties are bound by MLS license terms that govern how clients' listings are advertised. Brokers, agents and MLSs should monitor where MLS data is used, and the MLS typically enforces compliance when data is used outside license terms. AI developers increasingly seek large, standardized datasets, making MLS data a focal point for training systems that affect pricing and consumer outcomes. State laws have targeted AI in housing and lending, with Colorado treating such AI as high‑risk and New York advancing anti‑discrimination measures. A national regulatory approach could reduce fragmentation.

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