NNRMLS and Virtual Office Websites. How does this mandate impact our members?

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1 NNRMLS and Virtual Office Websites How does this mandate impact our members?

2 Department of Justice vs National Association of REALTORS The Department of Justice has dictated how real estate information will be shared via a Virtual Office Website These changes are mandatory and failure to comply will result in NAR turning the MLS over to the DOJ for review list will be provided to DOJ on May 1 st, 2009

3 VOWs What they are Brokerage productivity tool that requires lawful consumer/broker relationship Means for delivering valuable content to consumers of real estate Opportunity for brokers to offer more interactive participation using the internet Residential Listings Only All Residential Listings unless opted out of the internet entirely by seller Subject to Section 14 of Rules and Regulations as mandated by NAR and DOJ

4 VOWs What they are NOT Really amped up IDX websites The final step in freeing the data The DOJ s idea of a good prank

5 The Formal Definition of a VOW by NAR Participant s Internet Website through which the Participant is capable of providing real estate brokerage services to consumers with whom the Participant has first established a brokerconsumer relationship where the consumer has the opportunity to search MLS data, subject to the Participant's oversight, supervision, and accountability

6 What we ve done What we need to do Adopt Bylaw, Rules & Regs, and Policy changes Formally declare Confidential Fields Create Legal Agreement Establish How To Process Establish Monitoring Processes/Resources Implement New Technology to Support Data Feed On-Going Compliance Monitoring & Enforcement

7 New Formal Definition of Participant as Mandated by NAR New Definition of a Participant language has been adopted. (Copies provided) Key to the Change: Participant ACTIVELY ENDEAVORS to make or accept offers of cooperation and compensation with respect to properties in MLS. Previous language = CAPABLE OF offering and accepting.

8 Definition of Participant Actively means Continually part-time and seasonal OK No Minimum Production Numbers No Level of Service Requirement Doesn t have to be listing AND selling Participant who spends time running real estate companies (hiring, training, marketing, etc) and sales associates do the listing and selling - OK, as business is actively engaged

9 Rules & Regs Section 14 Virtual Office Websites Copies provided All Governing Docs available online at MLS Docs in Paragon and members.nnrmls.com

10 Who Can Operate a VOW? A non-principal broker, or sales licensee affiliated with a Participant, may, with the Participant's consent, operate a VOW or have a VOW operated on its behalf by an Affiliated VOW Partner. Such a VOW is subject to the Participant s supervision and accountability and the terms of this Policy

11 What can be Displayed on a VOW? The right to display Residential Listings in response to consumer searchers is limited to display of MLS data supplied by the MLS in which the Participant has participatory rights. This does not preclude a firm with offices participating in different MLSs from operating a master website with links to such offices VOWs. All MLS fields except those defined as Confidential (per DOJ/NAR agreed upon limitations)

12 Participant/Subscriber Rights No Broker Opt-out Listings may be excluded on basis of Geography, List Price, Type of Property, Cooperative Compensation Offered by the listing broker, or whether the listing broker is a REALTOR An Office Exclusive Listing (not in MLS) can be displayed on that Participant s VOW. (MLS Waiver of Benefits) Must be able to answer questions re: any listing displayed on VOW

13 VOW Agreement Participants and the Affiliated VOW Partners (AVPs) operating VOWS on their behalf must execute the license agreement required by the MLS VOW License Agreement currently in final stages of legal review To execute a VOW License Agreement with NNRMLS: Broker = $2500 per year AVP = $500 set up fee Any VOW with same AVP under Broker = no charge Any VOW with Different AVP/same Broker = $2500/$500

14 Seller Rights Sellers may opt-out of display on VOWS: by opting-out of display on any internet site by opting-out of address display on any site Sellers MAY NOT opt-out of some/all VOWS Seller may direct that Automated Valuation and/or Blogging of their property be disabled. Seller s directions will be represented on Listing Form and Exclusive Right to Sell via ZipForms available on MLS Docs Addendum for Existing

15 Reflecting Seller Options Listing Input/Exclusive Right to Sell Designed to: 1. Assist listing agents to explain the choices available to sellers re: Display and Interaction on the VOW as pertains to their property and 2. Act as documentation that the listing agent is in compliance with rules. Internet: Yes/No existing field Address: Yes/No existing field Automated Valuation: Yes/No Comments/Reviews (Blogging): Yes/No

16 Language for Opt-Out Seller wishes the Broker to submit the Property s listing information for dissemination to Internet sites with no restrictions. OR I/We have elected NOT to display the listed Property on ANY Internet Site I/We have elected to WITHHOLD the Address of the listed Property from display on ANY Internet Site I/We DO NOT want an Automated Valuation displayed or linked to the listed Property. (Customers may be notified that this feature was disabled at the request of the seller) I/We DO NOT want a Commentary/Review Section displayed or linked to the listed Property. (Customers may be notified that this feature was disabled at the request of the seller)

17 Seller Opt-Out Addendum Existing Listings Use for Existing Listings Only Defaulted to no but agents need to address the options with sellers Include signed addendum in your file

18 What is Automated Valuation? Examples: Zestimate MLStimate It is a computer-generated estimate of the worth of a house today, given the data we have available. Zillow.com does not offer the Zestimate as the basis of any specific real-estate-related financial transaction. Our data sources may be incomplete or incorrect; also, we have not physically inspected a specific home. The MLStimate valuation tool based on property information from Northern Nevada Regional MLS; the regions most accurate and timely real estate data source. The MLStimate is a simple and easy-to-use AVM plug-in for your agent website. The MLStimate is a free service available to NNRMLS members. If you are interested in having the MLStimate on your website, fill out the broker authorization form available in the MLS Docs section of Paragon

19 What is Commentary/Review? Popular Trend Consumer Reviews Found Directly within the Search Can t Control External Blogs

20 What About IDX? Seller doesn t know the difference between VOW and IDX. Internet is Internet Currently we don t know of any IDX sites that include AVM or Review within the search NAR is providing changes to IDX Policy in May

21 Parity Issues - How VOW Rules will Effect Bricks & Mortar Firms Confidential Information Excluded from Display Compensation Private Remarks Occupied by/showing Instructions Listing Type Identification of Listing Firm

22 Confidential Information Exclusion Compensation, instructions, type of listing and private remarks are excluded from display on VOW therefore same data may NOT be given out from traditional means Rules & Reg Section 12.B.2. Use of MLS Info Citation Policy Distribution of Confidential Information: Distribution, in any form, of confidential information, including but not limited to the compensation, private remarks, occupied by, showing instructions, listing type fields is prohibited. (1-09 Policy Section a-b; Rules & Regs Section 12.B.2) Citation $250 for 1 st offense, $1000 for 2 nd offense, $2500 for 3 rd and successive offenses

23 Identifying Listing Firm on VOW Requirement - the Listing Firm must be Identified on the VOW listing display Equal Requirement in Bricks and Mortar Therefore All Listing Reports created and/or sent from Paragon will identify the Listing Firm New Language : The seller of this property is represented by ABC Jones, XYZ Real Estate Firm.

24 Complete VOW Information Available Online Please read the new Section 14 Virtual Office Websites Q&A sheet provided by NAR All related information available at members.nnrmls.com and MLS Docs/VOWs Please contact Shelley with questions or