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Code of Ethics Changes Will Hurt REALTORS®.

By Ryan Ward

Real Estate Agent with Keller Williams Realty Consultants

December 07, 2007 12:29 AM

What will it take to you guys here at Active Rain to mobilize? This is a serious change that needs your attention! NAR amended the code of ethics to disallow the use of 'MLS' in any of our advertising. I have started a petition and I received one comment. That's absurd. This is a serious matter.

Do you not care? Do you not believe it? I posted here because as agents and brokers on Active Rain, you are considered to be some of the most tech savvy agents in the country.

Please take a minute to look through what the new amendment actually states. If you have even the slightest interest in being able to maintain your integrity on the internet with consumers and not be passed up by internet companies which NAR cannot control, you need to participate in this.

So I will ask again, please read this post here on AR:

http://activerain.com/blogsview/295711/NAR-Code-of-Ethics

And if you actually care about what the NAR is doing to you and I as members, consider signing the petition.

Thank you for your time,

Comments(22)

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"JT" Prevatte

Former Agent - Fayetteville, NC

Now, I am not sure. The way I am reading it it is saying that no one can "suggest" that they are an MLS or that they operate an MLS. In other words something like...BuyerMLS.com or something like that.

Then down at the bottom, the part I highlighted, it says that whatever we are "authorized" to represent we can. In other words my MLS system here says that we can link with IDX and put things like "search the MLS" on our webpages. That said I think we are complying with the rule.

Like I said, I think it is saying that some people are representing themselves or misleading consumers by using addresses like the one that I mentioned above and that is what NAR is trying to change with this rule, in my opinion.

Section 4.4 - Use of the terms MLS and Multiple Listing Service

No MLS participant, subscriber or licensee affiliated with any participant shall, through the name of their firm, their URLs, their e-mail addresses, their website addresses, or in any other way represent, suggest or imply that the individual or firm is an MLS, or that they operate an MLS. Participants, subscribers and licensees affiliated with participants shall not represent, suggest or imply that consumers or others have direct access to MLS databases, or that consumers or others are able to search MLS databases available only to participants and subscribers. This does not prohibit participants and subscribers from representing that any information they are authorized under MLS rules to provide to clients or customers is available on their websites or otherwise.

Dec 07, 2007 12:51 AM

Ryan Ward

Keller Williams Realty Consultants - Atlanta, GA

this is the part of concern:

Participants, subscribers and licensees affiliated with participants shall not represent, suggest or imply that consumers or others have direct access to MLS databases

This is where they can stop you from using the term. It will be MLS board dependent, but, it provides them the authority to exercise the option. Perhaps this link will convince you:

http://www.realtor.org/RMODaily.nsf/pages/News2007111504?OpenDocument

Very much worth the read...

Dec 07, 2007 12:55 AM

Terry & Bonnie Westbrook

Westbrook Realty Broker-Owner - Grand Rapids, MI

Westbrook Realty - Grand Rapids Forest Hills MI Re

Are you giving access to the MLS when you offer access on your web site. The MLS is more than just current lisitngs. I think is is misleading to say you are giving access to all the services available on the MLS. When I fact you are not. The public would be just as likely to search for listings with out the term MLS.

Dec 07, 2007 01:10 AM

Ryan Ward

Keller Williams Realty Consultants - Atlanta, GA

Terry,

Yes I am in fact giving access to the MLS. What you see are listings that are provided from a feed from the MLS. How is that not an MLS data feed?

The public already searches by using the term 'MLS' and I sold a house this year to someone who found my website using the term. I know I am not the only one. Noone is saying that it is all of the services. Nor should it need to.

The ramifications of this are that you and I won't be able to market to the consumer who is in fact using the term while nonmembers can and will use it. It's downright anticompetitive and I believe if pushed by the courts they would lose. The only people hurt by this are their own members. what sense does that make?

NAR cannot trademark the name and they would if they could, but, soccer already has the trademark.

It's a very bad idea for any of us to guess at how the public can be "changed" to search. They already have decided that 'mls' gets them to see homes listed for sale on websites. The question is whether they will actually be able to see mls listings on our websites by searching for mls listings.

By the way - r.com is in violation of the NAR code of ewthics violation as we speak. Do you think they might realize that the public uses the term mls? I'll answer that - of course they do.

It's absurd and obscene.

Dec 07, 2007 01:19 AM

Richard C. Decker,P.A.-Realtor Broward County FL

RE/MAX Partners - Fort Lauderdale, FL

Ryan - I am agreeing with Jeffrey here and his interpretation. If a site is named in such a way that the consumer thinks he is getting into the core of a MLS rather than just downloaded and reformatted information, then that is wrong. I also believe it not allowed that the term REALTOR be used in site name, email addresses. I know... REALTOR.com - but they probably received permission, I would think... Like all disclaimers - if you have something in writing then it can happen.

IDX is a feed of limited fields within the active listings - no closed sales. Many web developers encourage that feed to be incorporated in sites, if allowed by the agents Broker and board rules. Florida Living Network has a search user interface that allows searching of property.

I think the word ' direct ' is the focus of the intent of the sentence :

...suggest or imply that consumers or others have direct access to MLS databases, or that consumers or others are able to search MLS databases available only to participants and subscribers."

Dec 07, 2007 01:26 AM

Ryan Ward

Keller Williams Realty Consultants - Atlanta, GA

Richard,

They have direct access to all active listings in my mls.

Did you read the links above before you posted? You will surely change your tune as soon as you do.

I can, in fact, truthfully advertise on my website that consumers have direct access to the mls database which contains all active listings because that is exactly what it is.

They are trying to tell me that this is a lie. The amendment seeks to dissallow us from using mls entirely. It's written in lawyerspeak to make it look as if this is innocuous. It is not.

Dec 07, 2007 01:33 AM

Ryan Ward

Keller Williams Realty Consultants - Atlanta, GA

You can sit by and let it happen or you can do something about it.

Dec 07, 2007 01:42 AM

Richard C. Decker,P.A.-Realtor Broward County FL

RE/MAX Partners - Fort Lauderdale, FL

Ryan- IMO the wording is to imply that the name of the site or email address is not to imply to the public that they have direct access ( bypassing the username and password login that subscribers need ) to the MLS data. And in my MLS and Board the listing agent can also opt in or out of Internet advertising, OK to advertise other Broker listings. The 'IDX ok' is locked by our board so that all listings are sent in IDX feeds. IDX feeds contain only the active listing and contain only some of the fields for the listings.

Mechanically and technically how the info gets from the agents input to their board and then the contractural agreements to share that data with all the outlets of that data is what is not clear.

When you say DIRECT - are you saying the consumer is actually at the board source of the data ? or at one of the distribution point outlets of that data?

Dec 07, 2007 01:55 AM

Ryan Ward

Keller Williams Realty Consultants - Atlanta, GA

I have a custom IDX on my website. I get a direct feed from the MLS database to my website.

Wether you have your idx framed in or you have a custom idx, that data is dirtectly fed from an mls database.

You cannot slice that up with semantics. It is in fact, MLS data sourced from an MLS datafeed.

You are however, missing the larger point by worrying about how they phrased the amendment. It was intended to keep 'mls' out of reach as a way to be found by agents while they cannot control non members.

By definition they are creating an anti-competitive environment and they will likely be sued and probably lose as this viloates a lot of things. Not to mention ethics.

Dec 07, 2007 02:04 AM

Richard C. Decker,P.A.-Realtor Broward County FL

RE/MAX Partners - Fort Lauderdale, FL

Ryan - Exactly,... the user of your website is searching the information from the IDX feed ( which can be opted in or out by the brokerage ) and thus is a subset of your MLS database. The user is NOT directly accessing YOUR MLS. You are providing a service to your user of searching a subset of the MLS database - NOT the MLS database. Still believing that the wording is to 'protect the public' from believing that they are actually seeing the true MLS Database, containing ALL the listings.

Dec 07, 2007 02:25 AM

Ryan Ward

Keller Williams Realty Consultants - Atlanta, GA

Richard,

Which part of a direct mls data feed that shows listings on my website are you not getting?

It is a direct feed accessing the mls database of active listings. Go back and read the this part:

Participants, subscribers and licensees affiliated with participants shall not represent, suggest or imply that consumers or others have direct access to MLS databases

This is in fact exactly what consumers are doing when they use my website. They have direct access to the mls database of active listings. So not only would I suggest or imply that they have access, I will in fact feel quite confident that I am giving them access to the mls database and have no problem saying so.

Again, you are getting caught up in the semantics and not seeing the forest for the trees. The intent is what is important here and the intent of this amendment is to not allow me to use the term in any way. This is a disservice to consumers. It is anti-competitve to me by my own group and does not allow me to compete on a level playing field non memebers.

Dec 07, 2007 02:34 AM

Ryan Ward

Keller Williams Realty Consultants - Atlanta, GA

Lenn Harley wrote more about it here:

http://activerain.com/blogsview/298519/NAR-APPROVES-VOLUNTARY-RESTRICTIONS

You guys need to wake up and protect your own interests.

Dec 07, 2007 03:31 AM

Richard C. Decker,P.A.-Realtor Broward County FL

RE/MAX Partners - Fort Lauderdale, FL

Ryan - Jessie -

So now we have shifted from implying to the public that they are directly accessing the MLS database to do their search... to an Internet loss of positioning due to not being able to use the word MLS on your site ?

Dec 07, 2007 05:50 AM

Ryan Ward

Keller Williams Realty Consultants - Atlanta, GA

It's not an implication. It's direct access to the MLS database of active listings that is fed to my website nightly by my MLS.

It's also not an implication that they will seek to replace us for these keyword search terms because they can. They are coveted keywords.

Dec 07, 2007 06:05 AM

Forrest Barbee

BHHS Nevada Properties - Las Vegas, NV

Lots of good discussion! However, the larger issue is that the NAR MLS leadership remains out of touch with 2007! They spent the last year working on this agenda item to protect the MLS name . . . but that horse left the barn decades ago.

They also worked on . . . and passed a measure that allows your local board to "pull the plug" on all of your brokerage listings in the event that even one licensee fails to make a timely status change to his/her listing. Of course, adoption by locals boards is voluntary . . . for now! That literally means that my local board could immediately de-list over 3000 of my company's listings over such a violation. Isn't that consumer friendly!

Again, the NAR level MLS groups have worked two years on a national MLS Gateway. Oh, but the term MLS was removed right in the middle of the discussion at the NAR Convention once everyone realized that this effort was no longer moving in that direction. In fact, the so-called Gateway will be primarily a consumer driven database. Meanwhile, there was no prototype database to show anyone and no real clarity on where this is headed or when! That leave the door wide open for Point2NLS, Trulia, Zillow, etc. to build a national MLS database long before NAR can pull it together.

We seriously need the entire population of Realtors represented by their local boards, state associations, and certainly at NAR. We need a cross-section of younger as well as newer Realtors as state and national representatives. How else are we going to address their concerns or reach the younger generation of buyers and sellers with the technology, products, and service they demand?

The first step is easy! If you have any time in you schedule at all . . . please consider joining one committee (any committee) at your own local board and simply get involved.

Dec 08, 2007 09:10 AM

. .

San Diego, CA

They cannot keep me from ranking for any term I want. It is simple to circumvent this.

Dec 08, 2007 09:29 AM

. .

San Diego, CA

They can start here.

Dec 08, 2007 09:36 AM

Bob Crain

Crain Realty - North County Luxury Homes - San Marcos, CA

San Diego County Real Estate Broker

Funny Bob but did you sign the patition?

Dec 21, 2007 02:21 PM

. .

San Diego, CA

No I didn't. And I won't, because I don't agree with the petition as written.

4.4 is not the problem. Enforcement is.

There are numerous issues.

1. Use of the acronym "MLS" in a way that doesn't mislead the consumer on a website.

2. Use of the acronym "MLS" in a url.

3. Defining "MLS database".

I'll start with #3. A direct feed from the MLS is not what they are searching on our sites. The direct feed from the MLS is to a secondary database that serves up the mls listings on our sites. None of us stream the MLS. That is the point NAR is making. The consumer IS NOT searching the MLS on our sites. They are searching MLS listings. Big difference. IMO, the bigger issue is "does it matter?".

#2. This is where the bulk of the misdirection lies for the consumer. We have numerous sites in San Diego where the url implies that its the MLS. What does NashvillesMLS.com imply? It's no different in other cities. The problem is that enforcement is situational and up to each local mls. That's absurd. It's either the right thing to do or it doesn't need to be done. No worries in San Diego though. SanDiego-mls.com is owned by an agent who sits on the local board and is a Director to the Regional MLS. He is one of the few who makes the rules here.

If the petition were about making it equitable across the board, I would sign it now, but that won't ever happen and NAR knows that. Our NAR folks here in San Diego made sure of it.

#1. "Search The MLS' or "Search MLS LIstings". I have done it both ways. For years I stuck to the verbage of "Search MLS Listings" on my sites. I changed it a few months back, since it was apparent the mls didn't care. I can switch it back at the drop of a hat if needed.

The consumer doesnt care as long as it gets to see inventory,

I think the bigger issue is this:

Standard of Practice 12-12

REALTORS^® shall not:
1. use URLs or domain names that present less than a true picture, or
2. register URLs or domain names which, if used, would present less than a true picture. (Adopted 1/08)

Now NAR can tell me what domains I cannot register? Not likely.

This isn't a petition issue. This gets settled in court. I have already laid the groundwork for that.

Jan 08, 2008 03:25 PM

Jim Lee, REALTOR, CRS

RE/MAX Shoreline - Portsmouth, NH

Buying or Selling? Ann & Jim are the local experts

www.FreeTheMLS.com is another petition that everyone against this new coe changes needs to get on board with.

Mar 05, 2008 08:09 AM