Department of Justice (DOJ) reaches favorable settlement with NAR over MLS policy

NAR and the U.S. Department of Justice have reached a 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. The settlement terms are favorable for NAR.

Strengthened Membership Rule:
The settlement permits MLSs to adopt a more stringent criterion for brokers seeking to be participants within 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 Website (VOW) 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.

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 of helping members re-energize and strengthen the housing market for the long-term, for their clients, customers and fellow community members.

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 that 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 expect.

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.
• This 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 website of their broker of choice.