It’s Settled: US v NARIt’s Settled: US v NAR

Next Steps for MLSsNext Steps for MLSs

Today’s AgendaToday’s Agenda

Timeline for NARTimeline for NARTimeline for MLSsTimeline for MLSsWhat did not change: IDXWhat did not change: IDXMLS Participation Rule StrengthenedMLS Participation Rule StrengthenedChanges to VOW PolicyChanges to VOW Policy– What’s newWhat’s new– What’s gone What’s gone

Timeline for NARTimeline for NAR

May 27 May 27 Settlement reachedSettlement reachedJune 12 June 12 CIS filed with CourtCIS filed with Court{Mid-June }{Mid-June } Comment period beginsComment period begins

{Late Aug{Late Aug}} Comments/responses filedComments/responses filed{Early Sept.}{Early Sept.} Court approval requestedCourt approval requested{Sept.}{Sept.} NAR notifies MLSsNAR notifies MLSs{Nov.}{Nov.} MLSs adopt policy & rulesMLSs adopt policy & rules

Timeline for MLSsTimeline for MLSs

Take no action now. Take no action now. Become familiar with modified policies and Become familiar with modified policies and future steps.future steps.Sept. – Nov.Sept. – Nov.– Adopt VOW policy, Adopt VOW policy, – Select options / adopt VOW rules Select options / adopt VOW rules – Adopt revised “Participant” definitionAdopt revised “Participant” definition– Return certification form to NAR Return certification form to NAR

IDX remains unalteredIDX remains unaltered

Highlights of Policy ChangesHighlights of Policy Changes

““Participant” requirement strengthenedParticipant” requirement strengthened• Must actively endeavor to list or sell property Must actively endeavor to list or sell property

of the type in the MLS on a continual basisof the type in the MLS on a continual basis• No minimum # of transactions required No minimum # of transactions required

(must be trying)(must be trying)• Seasonal and part-timers OKSeasonal and part-timers OK• Limited service brokers OK if comply with Limited service brokers OK if comply with

state lawstate law

ImplementationImplementation

• Include affirmative representation on MLS Include affirmative representation on MLS applicationapplication

• MLS may evaluate if MLS has basis to believe MLS may evaluate if MLS has basis to believe Participant fails to qualifyParticipant fails to qualify

• One year “wait” before terminations (5/27/09)One year “wait” before terminations (5/27/09)

Revised VOW PolicyRevised VOW Policy

Broker opt out is goneBroker opt out is goneSellers’ rights:Sellers’ rights:– No Internet displayNo Internet display– No address displayed on InternetNo address displayed on Internet– Turn off bloggingTurn off blogging– Turn off automated valuationsTurn off automated valuations– Deletion of false information Deletion of false information

Revised VOW PolicyRevised VOW Policy

New VOW ObligationsNew VOW Obligations– Maintain means of communication to receive Maintain means of communication to receive

comments on accuracy of information on comments on accuracy of information on VOWVOW

– Correct or remove false information when Correct or remove false information when notified by listing brokernotified by listing broker

– Able to respond knowledgeably about Able to respond knowledgeably about properties in market area served by properties in market area served by Participant and displayed on VOW.Participant and displayed on VOW.

New VOW PolicyNew VOW Policy

Sold DataSold Data– Sold information can be displayed on a VOW Sold information can be displayed on a VOW

unless the MLS is in a state where sales unless the MLS is in a state where sales prices are not publicly available.prices are not publicly available.

– If sales prices not publicly available, MLS can If sales prices not publicly available, MLS can elect to prohibit display on VOWs. elect to prohibit display on VOWs.

New VOW PolicyNew VOW Policy

Affiliated VOW Partners (“AVPs”)Affiliated VOW Partners (“AVPs”)– Participants can have a vendor operate their Participants can have a vendor operate their

VOWs (AVP)VOWs (AVP)– AVP subject to Participant’s oversight and AVP subject to Participant’s oversight and

accountabilityaccountability– MLSs may require license agreementMLSs may require license agreement– MLS provides same feed, same manner, MLS provides same feed, same manner,

same frequency, same cost same frequency, same cost

New VOW PolicyNew VOW Policy

Participants’ VOWs must comply with new Participants’ VOWs must comply with new policy 180 days after MLS’s adoption of policy 180 days after MLS’s adoption of VOW rules.VOW rules.

Timeline for MLSsTimeline for MLSs

Take no action now. Take no action now. Become familiar with modified policies and Become familiar with modified policies and future steps.future steps.Sept. – Nov.Sept. – Nov.– Adopt VOW policy, Adopt VOW policy, – Select options / adopt VOW rules Select options / adopt VOW rules – Adopt revised “Participant” definitionAdopt revised “Participant” definition– Return certification form to NAR Return certification form to NAR