One of the biggest challenges facing business leaders today is the management and handling of business data. In the real estate industry, efficient and effective data and information management is a critical issue. There are many overlapping data layers and business processes, including regulatory compliance, new product development, human resources, and advertising, which depend upon reliable data exchange and stable information systems. Moreover, the reliability of partner systems and vendors also play a significant role in how efficiently transactions execute.

Industry standards are created to alleviate much of the painstaking dilemmas that are coupled with exchanging data in both inter- and intra-organizational structures. One of the most important technology standards related to the real estate industry is the Real Estate Transaction Standard (RETS).  RETS is a technology standard that defines a set of methods, tools, regulations, and software requirements for implementing real estate business solutions which involve electronic data exchange. Currently, the standard is used to build software systems that exchange real estate property information. By using RETS-based systems, real estate organizations can significantly reduced operational costs, implement new products faster, and expose their information systems to a wider range of vendors.

At the software level, the RETS consists of two primary software components called "RETS Server" and "RETS Client". A RETS server is a software application that manages and facilitates all data access in accordance to the RETS technical specifications. These technical specifications define the interfaces and protocols for requesting data from database management systems and for responding to client requests for data.

A RETS Client is a software application that complies with the RETS technical specifications and issues requests for data from a RETS Server. There are no imposed limitations upon how a RETS Client is technically implemented. A simple RETS Client can be a web-based application that sends HTML-based information to a web browser. Or, in a more complex scenario, a RETS Client can be integrated into another software application that further processes and/or manipulates data sent/retrieved from the server. As highlighted in the diagram below, a RETS client can be used to access data from multiple databases and third-party systems in a standardized fashion.

With RETS, Broker office systems become more reliable and are able to exchange information much more easily with multiple local MLS systems. This will be particularly beneficial for brokerages that enter listings in more than one MLS system. RETS can also facilitate the creation of enterprise-wide solutions that integrate CRM systems, transaction management and agent productivity tools. Under the standard, tasks like populating marketing web sites, generating print advertisements and organizing transaction services will be easier and more accurate.