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NAR Releases 2003 VOW Work Group Report

Proposed policy governing use of MLS data in connection with Services Information Internet brokerage services offered by MLS Participants ("Virtual Office Websites") Participants may use MLS data (defined as information fields, images and other property listing-related content) in connection with providing brokerages services over the Internet (or by other electronic means) in accordance with the policies set forth below. Except as permitted in Section III, MLSs may not adopt rules or regulations that are more or less restrictive than, or otherwise inconsistent with, these policies. I. Definitions and Scope of Policy. 1.For purposes of this policy, the term Virtual Office Website ("VOW") refers to a Participant"s Internet website, or a feature of a Participant"s Internet website, through which the Participant provides real estate brokerage services to consumers with whom the Participant has first established a broker-consumer relationship (as defined by state law) where the consumer has the opportunity to search for MLS data, subject to the Participant"s oversight, supervision and accountability. As used herein "Participant"s VOWs" and "VOWs" also refers to such websites, or features of websites, operated by non-principal brokers and sales licensees affiliated with MLS Participants, where permitted by this policy. 2.The right to display listings in response to consumer searches is limited to display of MLS data supplied by the MLS(s) 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. 3.Participant"s Internet websites may also provide other features, information, or services in addition to the VOW (including the Internet Data Exchange function), which other features, information, or services are not subject to this policy. Unless state law or regulation provides otherwise (such as, but not limited to, broker Internet activity being deemed to be advertising), use of MLS active listing data on a VOW does not require separate permission from the listing brokers whose listings will be available to consumers via a VOW. II. Policies Applicable to Participants" VOWs. 1.Participants may provide brokerage services via a VOW that include making MLS active listing data available, but only to consumers (hereinafter "Registrants") with whom the Participants have first established lawful consumer-broker Housing relationships, including completion of all actions required by state law in connection with providing real estate brokerage services to clients and customers. Such actions shall include, but are not limited to, satisfying all applicable agency, Opportunity non-agency, and other disclosure obligations, and execution of any required agreement(s). Where state law permits any of the requirements imposed on Participants or consumers to be satisfied after brokerage services are commenced, all such requirements Program and obligations shall nevertheless be satisfied before access to MLS active listing data is provided to the Registrant via the VOW. 2.Participants" VOWs must obtain the identity of each Registrant and obtain each Registrant"s agreement to Terms of Use of the VOW, as follows: a. A Registrant must provide his or her name, telephone number, a valid email address and, at the option of the MLS, a street address. The Participant must send an email to the address provided by the Registrant confirming that the Registrant has RPAC agreed to the Terms of Use (described in subsection c below). The Registrant may be permitted to access the VOW only after the Participant has verified that the email address provided is valid and that Registrant received the Terms of Use confirmation. b.The Registrant must supply a user name and a password, the combination of which must be different from those of all other Registrants on the VOW, before being permitted to search and retrieve information from the MLS database via the VOW. The user name and password may be established by the Registrant or may be supplied by the Participant, at the option of the Participant. An email address may be associated with only one user name and password. The Registrant"s password and access must expire on a date certain. The Participant must at all times maintain a record of the name, telephone number, email address and, if required by the MLS, a street address supplied by the Registrant, and the username and current password of each Registrant, such records to be kept for not less than 180 days after the expiration of the validity of the Registrant"s password. If the MLS has reason to believe that a Participant"s VOW has caused or permitted a breach in the security of the data or a violation of MLS rules related to use by one or more Registrants, the Participant shall, upon request, provide to the MLS a copy of the record of the name, email address, username, current password, and audit trail, if required, of any Registrant identified by the MLS to be suspected of involvement in the violation. c.The Registrant must be required to affirmatively express agreement to a "Terms of Use" provision that requires the Registrant to open and review an agreement that provides at least the following: i.That the Registrant acknowledges entering into a lawful consumer-broker relationship with the Participant; ii.That all data obtained from the VOW is intended only for the Registrant"s personal, non-commercial use; iii.That the Registrant has a bona fide interest in the purchase, sale, or lease of real estate of the type being offered through the VOW; iv.That the Registrant will not copy, redistribute or retransmit any of the data or information provided; v.That the Registrant acknowledges the MLS"s ownership of and the validity of the copyright in the MLS database. After the Registrant has opened for viewing the Terms of Use agreement, a "mouse click" is sufficient to acknowledge agreement to those terms. The Terms of Use Agreement may not impose a financial obligation on the Registrant or create any representation agreement between the Registrant and the Participant. d.An agreement entered into at any time between the Participant and Registrant imposing a financial obligation on the Registrant or creating representation of the Registrant by the Participant must be established separately from the Terms of Use, must be prominently labeled and may not be accepted solely by mouse click. The Registrant must also receive a subsequent confirmation of the terms of the agreement and the agreement may not become effective until the Registrant acknowledges acceptance of those terms, by mouse click or otherwise. Prior to entering into a representation agreement, the Participant must ask the Registrant whether the Registrant is a party to an existing exclusive representation agreement. 3.A Participant"s VOW must protect the MLS data from misappropriation by employing reasonable efforts to monitor for and prevent "scraping" or other unauthorized accessing, reproduction or use of the MLS database. 4.A Participant"s VOW may not make available for search by or display to Registrants the following data intended exclusively for other MLS participants and their affiliated licensees: a.Expired or withdrawn listings or, unless the MLS affirmatively acts (pursuant to section III.5 of this policy) to permit such use, Sold data. b.The compensation offered to other MLS Participants. c.The type of listing agreement c.The type of listing agreement i.e. exclusive right to sell or exclusive agency. d.The seller(s) and occupant(s) name(s) phone number(s) and email address(es) where available. e.Instructions or remarks intended for cooperating brokers only such as those regarding showing or security of the listed property. Notwithstanding the foregoing such information may be provided to a Registrant if the listing broker has expressly and affirmatively consented to the Participant"s providing such information for that listing broker"s listings either with respect to a particular Registrant or to all Registrants. 5.A Participant"s VOW must comply with the following additional requirements: a.No advertising may be visible when displaying any portion of the listings of other Participants except that the name address phone number and company logo of the Participant operating the VOW and any other information required by state law is not prohibited advertising. b.MLS data fields authorized for display may not be changed. The MLS data may be augmented with additional data so long as the source of such other data is clearly identified. This requirement does not restrict the format of MLS data display or display of fewer than all of the listings or fewer authorized data fields. c.The VOW must display a notice on all MLS data displayed indicating that the data is deemed reliable but is not guaranteed accurate by the MLS. Furthermore a Participant"s VOW may include other appropriate disclaimers necessary to protect the Participant and/or the MLS from liability. d.Listings or property addresses of sellers who have directed their listing brokers to withhold their listing or property address from display on the Internet (including but not limited to publicly-accessible websites or VOWs shall not be accessible to Registrants. Notwithstanding the foregoing listing brokers may display on their VOWs or other website(s) the listing or property address of a consenting seller. e.Non-principal brokers or sales licensees affiliated with Participants may operate VOWs if their Participant consents such VOW to be subject to the control of the Participant. In such cases both the Participant and the non-principal shall be accountable for compliance with these policies. f.MLS data available on a VOW shall be refreshed not less frequently than every seven (7) days. g.Except as provided elsewhere in this policy or elsewhere

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