Policy III.1. MLS must permit VOWs

Text

A Multiple Listing Service shall permit MLS Participants to operate VOWs, or to have VOWs operated for them by AVPs, subject to the requirements of state law and this Policy.

Summary

Core provision of settlement – permitting VOWs subject to the Policy and rules.

Action Items: MLS

None.

Action Items: VOW-operating broker

None.

Action Items: Affiliated VOW provider (broker technology/marketing partner)

None.

Questions

None.

Other notes

None.

MLSTesseract Blog Post

None.

Policy III.2. MLS must provide download

Text

An MLS shall, if requested by a Participant, provide basic "downloading" of all MLS nonconfidential listing data, including without limitation address fields, listings types, photographs, and links to virtual tours. Confidential data includes only that which Participants are prohibited from providing to customers orally and by all other delivery mechanisms. They include fields containing the information described in paragraph IV(1) of this Policy, provided that sold data (i.e., listing information relating to properties that have sold) shall be deemed confidential and withheld from a download only if the actual sales prices of completed transactions are not accessible from public records. For purposes of this Policy, "downloading" means electronic transmission of data from MLS servers to a Participant's or AVP's server on a persistent basis. An MLS may also offer a transient download. In such case, it shall also, if requested, provide a persistent download, provided that it may impose on users of such download the approximate additional costs incurred by it to do so.

Summary

This provision imposes on MLS the requirement to make data available to brokers for VOWs.

Action Items: MLS

  1. Prepare to provide a persistent download upon participant request. The download must include all non-confidential listing information.
  2. Option: Decide whether to provide a transient download capability.

Action Items: VOW-operating broker

  1. Make a written request of each MLS in which your firm participates to receive a persistent and/or transient download of all of that MLS's listing data.
  2. Evaluate the downloads MLSs are providing to determine whether further information (additional fields and statuses, other types of data, like listing history records, etc.) should be available in the feeds.

Action Items: Affiliated VOW provider (broker technology/marketing partner)

Follow the instructions for VOW-operating brokers.

Questions

  1. Assume an MLS provides a download of listings information via RETS to brokers for “back-office” applications including all listing statuses and fields. Can a broker use that data feed to operate its VOW?
  2. Must the MLS provide a RETS feed of data for VOWs when NAR’s policy establishing a deadline for MLSs to be RETS-compatible passes?
  3. May the MLS provide a data feed for VOWs that is updated only once per day, even if it has technology that would permit more frequent updates?
  4. Assume that MLS has a table of data relating to changes made to listings (a “listing history” table) that is available to brokers using the MLS system, but that MLS has never previously provided the means for that data to be downloaded. Brokers review the listing history to be able to tell a buyer how much a property originally listed for and what price and status changes have occurred with it over its duration. Must the MLS now provide the means for that data to be downloaded and displayed in the broker’s VOW?

Other notes

None.

MLSTesseract Blog Post

Can real estate agents keep secrets?, December 9, 2008
Questions about implications of VOW settlement, November 24, 2008.

Policy III.3. MLS public web sites not required

Text

This Policy does not require an MLS to establish publicly accessible sites displaying Participants' listings.

Summary

See text above.

Action Items: MLS

None.

Action Items: VOW-operating broker

None.

Action Items: Affiliated VOW provider (broker technology/marketing partner)

None.

Questions

None.

Other notes

None.

MLSTesseract Blog Post

None.

Policy III.4. VOW-specific data feeds

Text

If an MLS provides a VOW-specific feed, that feed must include all of the nonconfidential data included in the feed described in paragraph 2 above except for listings or property addresses of sellers who have elected not to have their listings or addresses displayed on the Internet.

Summary

Taken together with III.2, this provision ensures that VOW-operating brokers are entitled to receive a data feed from MLS that includes all the records and fields that a VOW can display (which is nearly all records and fields).

Action Items: MLS

  1. Review MLS data feeds to ensure that at least one meets this requirement; or develop a new data feed if necessary.

Action Items: VOW-operating broker

  1. Assess the data feed you are currently receiving, if any, to ensure that it provides all the data described in Section III.2.
  2. If your MLS creates a new data feed for VOW use, ensure it meets the requirements of this section.

Action Items: Affiliated VOW provider (broker technology/marketing partner)

See "Action Items: VOW-operating broker."

Questions

  1. Does a data feed need to include types of data not traditionally included in MLS data feeds? For example, many MLSs have a table of data that records changes to listing data, sometimes called “listing history.” Listing history data is often available to brokers on the MLS via a special report (though sometimes it is also merged into standard listing reports); brokers in turn can disclose facts from the listing history (usually past status and price changes) to consumers. It seems this meets the definition of data that VOWs can display under III.2., but very few MLSs currently make it available via RETS or other feeds.

Other notes

None.

MLSTesseract Blog Post

None.

Policy III.5. MLS may charge reasonably estimated costs

Text

An MLS may pass on to those Participants who will download listing information the reasonably estimated costs incurred by the MLS in adding or enhancing its "downloading" capacity to enable such Participants to operate VOWs.

Summary

This section permits MLSs to recover its costs for creating data feeds meeting the requirements of the policy.

Action Items: MLS

  1. Assess the costs that MLS has incurred or will likely incur in providing a data feed that meets the policy's requirements. Assess the number of feeds to which brokers/salespersons will subscribe. (This will likely be a guessing game, to some extent.) Establish a fee.

Action Items: VOW-operating broker

  1. Inquire of all MLSs in which you operate to ascertain what the fees will be.

Action Items: Affiliated VOW provider (broker technology/marketing partner)

See "Action Items: VOW-operating broker."

Questions

  1. Can the MLS estimate into the cost for feeds the increased rule monitoring and enforcement burden it incurs in providing a data feed? This section does not say "only" the reasonably estimated costs. etc. That leaves open the door to the argument that the provision was intended only to make it clear that fees imposed on participants for VOW feeds could include these costs, but that it was not intended to prevent MLSs collecting fees to cover other costs. There are theories of legal construction that go both ways as to how this should be interpreted (no surprise there).
  2. Can the MLS safely charge the same thing for VOW data feeds as it does for IDX data feeds? After all, the same sorts of enforcement costs are built into both kinds of feed. If the MLS charges the same for IDX and VOW feeds, that should undermine the notion that MLS is somehow favoring traditional brokerage; in fact, because of great number of IDX sites, these costs will likely be borne disproportionately by IDX sites and traditional brokers.

Other notes

None.

MLSTesseract Blog Post

None.

Policy III.6. Site security and audit trails

Text

An MLS may require that Participants

(1) utilize appropriate security protection, such as firewalls, as long as such requirement does not impose security obligations greater than those employed concurrently by the MLS, and/or

(2) maintain an audit trail of Registrants' activity on the VOW and make that information available to the MLS if the MLS has reason to believe that any VOW has caused or permitted a breach in the security of the data or a violation of applicable MLS rules.

Summary

This section provides for two more options for MLSs with regard to the operation of broker VOWs; the requirements to use security protection and the requirement to maintain and make available audit trails of user activity.

Action Items: MLS

  1. Option: Decide whether to require brokers to use security protection, and decide what level of protection to require. Note that MLS must use the same or greater measures.
  2. Option: Decide whether to require brokers to maintain an audit trail of registrants’ activity on VOWs.

Action Items: VOW-operating broker

  1. Learn whether MLS has adopted its options under this section of the Policy.
  2. Implement required security measures, if any.
  3. Implement audit trail, if required.
  4. If audit trail is required, ensure that the VOW’s privacy policy alerts consumers that their information, including usage patterns, may be disclosed to MLS subject to the provisions of this section.

Action Items: Affiliated VOW provider (broker technology/marketing partner)

  1. Consult with MLSs where you are operating and learn whether they have adopted options under this section of the Policy.
  2. Implement required security measures, if any.
  3. Implement audit trail capabilities, if required.
  4. If preparing a standard privacy policy for broker clients to use on their VOWs, ensure that the privacy policy alerts consumers that their information, including usage patterns, may be disclosed to MLS subject to the provisions of this section.

Questions

  1. Some efforts might be reasonable in the context of a VOW, but not for the MLS. For example, because anyone can register on a VOW, the MLS may want to impose a requirement for Captcha technology on the VOW to reduce registrations by bots and spiders. Such a requirement makes no sense on the MLS system itself, as user names and passwords there are assigned by the MLS. Any problem imposing this requirement on brokers’ VOWs?

Other notes

None.

MLSTesseract Blog Post

None.

Policy III.7. Monitoring advertising and branding on VOWs

Text

An MLS may not prohibit or regulate display of advertising or the identification of entities on VOWs ("branding" or "co-branding"), except to prohibit deceptive or misleading advertising or co-branding. For purposes of this provision, cobranding will be presumed not to be deceptive or misleading if the Participant's logo and contact information (or that of at least one Participant, in the case of a VOW established and operated by or for more than one Participant) is displayed in immediate conjunction with that of every other party, and the logo and contact information of all Participants displayed on the VOW is as large as the logo of the AVP and larger than that of any third party. 

Summary

This section limits MLS’s ability to regulate advertising and “co-branding” of VOWs, “except to prohibit deceptive or misleading advertising or co-branding.” The section provides a “safe harbor,” in other words, a description of branding that is presumed NOT to be deceptive or misleading.

Action Items: MLS

None.

Action Items: VOW-operating broker

  1. Revise existing VOWs or VOW designs to keep co-branding and advertising within safe-harbor limits.

Action Items: Affiliated VOW provider (broker technology/marketing partner)

  1. Revise existing VOWs or VOW designs to keep co-branding and advertising within safe-harbor limits.

Questions

  1. A site meeting the safe-harbor limits is “presumed” to be non-deceptive. This suggests that such sites could still be shown to be deceptive and required to remedy the deceptive components.
  2. The section makes reference to “a VOW established and operated by or for more than one Participant.” What would that look like?

Other notes

None.

MLSTesseract Blog Post

100,000 VOWs by the end of 2010, November 18, 2008.

Policy III.8. Enhanced information and functions

Text

Except as provided in this Policy, an MLS may not prohibit Participants from enhancing their VOWs by providing information obtained from sources other than the MLS, additional technological services (such as mapping functionality), or information derived from nonconfidential MLS data (such as an estimated monthly payment derived from the listed price), or regulate the use or display of such information or technological services on any VOW. 

Summary

This section affirmatively permits brokers to add data and functionality and prohibits MLSs from regulating the practice, except as provided in the policy.

Action Items: MLS

None.

Action Items: VOW-operating broker

  1. If your site is going to provide these enhancements, ensure that they do not violate other provisions of the policy. (Cross references?)

Action Items: Affiliated VOW provider (broker technology/marketing partner)

See "Action Items: VOW-operating broker."

Questions

None.

Other notes

None.

MLSTesseract Blog Post

None.

Policy III.9. General prohibition on MLS regulations

Text

Except as provided in generally applicable rules or policies (such as the REALTOR® Code of Ethics), an MLS may not restrict the format of data display on a VOW or regulate the appearance of VOWs. 

Summary

See text, above.

Action Items: MLS

None.

Action Items: VOW-operating broker

None.

Action Items: Affiliated VOW provider (broker technology/marketing partner)

None.

Questions

None.

Other notes

None.

MLSTesseract Blog Post

Can real estate agents keep secrets?, December 9, 2008
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Policy III.10. AVPs permitted access to listing data

Text

Subject to the provisions below, an MLS shall make MLS listing data available to an AVP for the exclusive purpose of operating a VOW on behalf of a Participant. An MLS shall make MLS listing data available to an AVP under the same terms and conditions as those applicable to Participants. No AVP has independent participation rights in the MLS by virtue of its right to receive data on behalf of a Participant, or the right to use MLS data except in connection with operation of a VOW for a Participant. AVP access to MLS data is derivative of the rights of the Participant on whose behalf the AVP is downloading data.

a. A Participant, non-principal broker or sales licensee, or AVP may establish the AVP's right to receive and use MLS data by providing to the MLS a writing in which the Participant acknowledges its or its non-principal broker's or sales licensee's selection of the AVP to operate a VOW on its behalf.

b. An MLS may not charge an AVP, or a Participant on whose behalf an AVP operates a VOW, more than a Participant that chooses to operate a VOW itself (including any fees or costs associated with a license to receive MLS data, as described in (g), below), except to the extent that the MLS incurs greater costs in providing listing data to the AVP than the MLS incurs in providing listing data to a Participant.

c. An MLS may not place data security requirements or restrictions on use of MLS listing data by an AVP that are not also imposed on Participants.

d. An MLS must permit an AVP to download listing information in the same manner (e.g., via a RETS feed or via an FTP download), at the same times and with the same frequency that the MLS permits Participants to download listing information.

e. An MLS may not refuse to deal directly with an AVP in order to resolve technical problems with the data feed. However, the MLS may require that the Participant on whose behalf the AVP is operating the VOW participate in such communications if the MLS reasonably believes that the involvement of the Participant would be helpful in order to resolve the problem.

f. An MLS may not condition an AVP's access to a data feed on the financial terms on which the AVP provides the site for the Participant.

g. An MLS may require Participants and AVPs to execute license or similar agreements sufficient to ensure that Participants and AVPs understand and agree that data provided by the MLS may be used only to establish and operate a VOW on behalf of the Participant and not for any other purpose.

h. An MLS may not (i) prohibit an AVP from operating VOWs on behalf of more than one Participant, and several Participants may designate an AVP to operate a single VOW for them collectively, (ii) limit the number of entities that Participants may designate as AVPs for purposes of operating VOWs, or (iii) prohibit Participants from designating particular entities as AVPs except that, if an AVP's access has been suspended or terminated by an MLS, that MLS may prevent an entity from being designated an AVP by another Participant during the period of the AVP's suspension or termination.

i. Except as stated below, an MLS may not suspend or terminate an AVP's access to data (a) for reasons other than those that would allow an MLS to suspend or terminate a Participant's access to data, or (b) without giving the AVP and the associated Participant(s) prior notice and the process set forth in the applicable provisions of the MLS rules for suspension or termination of a Participant's access. Notwithstanding the foregoing, an MLS may immediately terminate an AVP's access to data (a) if the AVP is no longer designated to provide VOW services to any Participant, (b) if the Participant for whom the AVP operates a VOW ceases to maintain its status with the MLS, (c) if the AVP has downloaded data in a manner not authorized for Participants and that hinders the ability of Participants to download data, or (d) if the associated Participant or AVP has failed to make required payments to the MLS in accordance with the MLS's generally applicable payment policies and practices.

Summary

This section requires that MLSs allow affiliated VOW providers (brokers' technology/marketing partners) to have access to the VOW data for purposes of operating VOWs on behalf of brokers. It comes with a number of restrictions on the MLSs and the AVPs.

Action Items: MLS

  1. Option (but probably a very good idea): Develop a license agreement for broker and AVP to sign pursuant to sub-section g. Note that the agreement must be consistent with the other provisions of Section III.10.
  2. Option: Review your MLS rule enforcement procedures and consider adopting a streamlined approach. In the absence of specific procedures for enforcing MLS rules, NAR policy requires that the MLS use procedures set out in the NAR Code of Ethics and Arbitration Manual. That procedure is probably too cumbersome to be really effective for most MLS rules, and it may not provide for staff-initiated or anonymously initiated complaints (which should probably be permitted provided the MLS has facts available to evaluate the complaints).

Action Items: VOW-operating broker

  1. Make sure that you have provided written notice to MLS for each and every AVP working with your firm and any agents in it. If MLS has a required license agreement for this purpose, ensure that you have reviewed it, signed it, and retained a copy for your files.

Action Items: Affiliated VOW provider (broker technology/marketing partner)

See "Action Items: VOW-operating broker."

Questions

Many. This will be a focus of discussion on MLSTesseract.

Other notes

None.

MLSTesseract Blog Post

100,000 VOWs by the end of 2010, November 18, 2008.

Policy III.11. Anti-referral rules prohibited

Text

An MLS may not prohibit, restrict, or impede a Participant from referring Registrants to any person or from obtaining a fee for such referral.

Summary

See text, above.

Action Items: MLS

None.

Action Items: VOW-operating broker

None.

Action Items: Affiliated VOW provider (broker technology/marketing partner)

None.

Questions

None.

Other notes

None.

MLSTesseract Blog Post

None.