NAR AND DEPARTMENT OF JUSTICE REACH SETTLEMENT 
Washington, D.C. (May 27, 2008) - NAR and the U.S. Department of Justice have reached a favorable settlement, concluding a two-year DOJ investigation followed by two and half years of litigation regarding NAR's multiple listing policy pertaining to the display of listing from the MLS on brokers' virtual office Web sites, or VOWs. This will be a story reported throughout the news media today.
The settlement terms are favorable for NAR. We settled with the DOJ without financial penalty or admission of guilt.
The terms of the proposed final order validate NAR's position - that MLS members must be actively engaged in real estate brokerage by actually helping people buy or sell homes. This will ensure that MLSs are used for what they were originally intended to do - to help real estate professionals find buyers for people who want to sell their homes.
It is likely that the DOJ will communicate this settlement as a victory for them and affirmation of its long persecution of Realtors®. This could not be further from the truth. NAR remained fully prepared to litigate the provisions of the VOW policy that were challenged by the government. However, the terms of the settlement are clearly in the best interests of NAR's members and the consumers they serve, allowing the association to focus on finding ways to help Realtors® re-energize and strengthen the housing market for the long term, for their clients, customers and fellow community members.
Media Strategy:
Don't call reporters. No need to be proactive and alert the media. NAR Public Affairs is prepared to implement a detailed communications strategy.
Do respond if called upon; or refer call to NAR Public Affairs (202/383-7515). By participating in the story you can deliver pro-Realtor® messages and demonstrate to your members that you are on top of the issue. If you avoid questions, you can be assured that our opponents will dominate the coverage.
Be prepared. Review the talking points below and prepare your own. Complete information is available at www.realtor.org/DOJ.
Media Tips:
Should you receive a call from a media outlet regarding this event, here are some tips to help you handle the call.
Don't overreact. There is no reason to make the story bigger by indicating concern.
Stay on message. Bridge from a negative question to deliver a positive message.
Everything is on the record. All that you can say can be included in the story.
Don't speculate. If you aren't familiar with the issue, it's OK to say so.
Refer calls to NAR. NAR Public Affairs stands ready to handle any media inquiries you may get.
Settlement Overview:
Strengthened Membership Rule:
The settlement permits MLSs to adopt a more stringent criterion for brokers seeking to be participants in an MLS. Instead of merely possessing a broker's license, participants must be actively engaged in real estate brokerage by actually helping people buy or sell homes. This will ensure that MLSs are used for what they were originally intended to do - to help real estate professionals find buyers for people who want to sell their homes.
Revised VOW policy:
The final order requires that NAR adopt a revised Virtual Office Web site policy, and that NAR request MLSs adopt the new policy within 90 days of the court's approval of the parties' agreement, expected by late summer. NAR has agreed to these revisions, which continue to protect the rights of sellers who do not want their property or their property's address displayed on the Internet. The new policy also protects sellers from having false or other unwanted information about their listings appear on the VOW site of members of the MLS, and allows sellers to object to additional features near the listing. The revised policy also includes provisions confirming the opportunity for participants to use vendors to operate their VOWs for them.
Impact:
The resolution of this litigation fills the void in MLS policy created when the suit was filed challenging the VOW policy. MLSs and their participants will now have a policy to guide the use of MLS listings by brokers on their VOWs. Most consumers do not use VOWs because these sites require online registration. Today's consumers can find sites throughout the Internet on which to gather information without having to register their name and contact information first.
Be Prepared:
Realtors® and Realtor® associations should be ready for the potentially negative or controversial news stories starting as early as May 27, 2008. The following general talking points should help answer questions from members or reporters.
Talking Points:
NAR has negotiated a settlement with DOJ that benefits our members and the clients and customers they serve.
Although NAR was prepared to litigate the lawfulness of the VOW policy and rule governing MLS participation, the terms agreed upon are clearly in the best interest of NAR members.
NAR did not admit any wrongdoing.
Now that the lawsuit has been resolved, NAR can focus on looking ahead to continue to find ways to help members re-energize and strengthen the housing market for the long-term, for their clients, customers and fellow community members.
NAR's efforts are focused on re-energizing the housing market - that's what matters most to consumers.
Realtors® are lobbying lawmakers and regulators at all levels of government to enact and implement public policies that will stimulate the housing market.
NAR believes that it is time for Realtors®, regulators, policymakers and other leaders to work together to improve the housing market and strengthen the economy.
NAR has always encouraged innovation and competition in real estate brokerage, and favors no business model.
The real estate industry is dynamic, entrepreneurial and fiercely competitive. The agreement restates our commitment to consumers and to maintaining one of the most competitive marketplaces in the world.
NAR members represent almost every conceivable business model, including full-service, limited-service, discount models, and others. About one in eight Realtors works for a business model other than a full-service firm.
In this market, the value of Realtors® and the services and resources they provide, including the MLS system, has never been greater.
The DOJ agreement implicitly acknowledges the important role played by the more than 800 MLSs across the country that help make buying and selling a home easier.
The agreement strengthens the MLS system, and ensures that MLSs will continue to be a vital tool for broker-to-broker cooperation and compensation as they have for more than 100 years.
Consumers will continue to be able to access and view listing information on the Web site of their broker of choice.
Additional Messages:
Multiple Listing Services are a powerful force for competition.
MLSs enable small brokerages and new entrants to have the same access to this information as large and established ones. They make it easy for sellers to reach buyers and for buyers to find the right property. The American MLS system is so successful that many foreign countries are now establishing MLS systems based on the U.S. model.
The real estate industry has been effectively harnessing the Internet for years, to the benefit of sellers and buyers alike.
No other industry in the world has virtually its entire inventory online at one site, but you can find more than 2.2 million homes for sale at www.realtor.com, which has 7 million unique visitors each month.
The industry has made a multimillion dollar investment to create the infrastructure and systems to put millions of properties online through the MLSs. You can't shop for property in your bedroom slippers in most other countries like you can in America.
Realtors® are industry innovators - they're some of the greatest entrepreneurs in America.
We're always looking for innovative ways to provide the services real estate consumers want.
Questions and Answers:
Critics say the real estate industry is a cartel. What's your response to that?
The real estate industry is highly competitive and entrepreneurial. Today consumers can choose from 1.2 million Realtors ® and a variety of different kinds of companies and business models, including discount brokerages and fee-for-service brokers.
Do Multiple Listing Services discriminate against brokers who operate VOWs?
Absolutely not. Multiple Listing Services are a powerful force for competition. The MLS enables small brokerages and new entrants to have the same access to this information as large and established ones. They make it easy for sellers to reach buyers and for buyers to find the right property. The American MLS system is so successful that many foreign countries are now establishing MLS systems based on the U.S. model.
Has the real estate industry opposed innovations that would lower costs to consumers?
The real estate industry has been effectively harnessing the Internet for years, to the benefit of sellers and buyers alike. No other industry in the world has virtually its entire inventory on line at one site, but you can find more than 2.2 million homes for sale at www.realtor.com, which has 7 million unique visitors each month.
The industry has made a multimillion dollar investment to create the infrastructure and systems to put 2 million to 3 million properties on line through the MLSs. You can't shop for property in your bedroom slippers in most other countries like you can in America
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