Below is the proposed VOW policy issued by the National Association of REALTORS® (NAR) Internet Marketing Work Group, based on comprehensive comments received from REALTORS®, MLSs, and associations of REALTORS®.  This proposal will be voted on at NAR's 2003 Annual Convention.

Proposed policy governing use of MLS data in connection with Internet brokerage services offered by MLS Participants
("Virtual Office Websites")

October 2002

Participants may use MLS data 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 MLS active listing data without direct personal involvement or interaction (either in person or remotely) with a broker or licensee. 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.  Scope of Policy. 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. 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 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, 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 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, street address, telephone number, and valid email address. The Participant must verify the validity of the email address by sending an email to the address provided by the Registrant confirming that the Registrant has agreed to the Terms of Use (described in subsection c below). The Registrant may be permitted to access the VOW only after having received such email confirmation.

b.  The Registrant must supply a user name and a password, both of which must be unique to the Registrant, before being permitted to search and retrieve information from the MLS database via the VOW. The Participant must at all times maintain a record of the name, street address, telephone number and email address supplied by the Registrant, and the username and current password of each Registrant, such records to be kept for not less than 30 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 and current password of each Registrant, or of those Registrant(s) 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 of listing data.

After the Registrant has opened for viewing the Terms of Use agreement, a "mouse click" is sufficient to acknowledge agreement to those terms.

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 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, 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, either with respect to a particular Registrant or to all Registrants.

5.  A Participant's VOW must comply with the following additional requirements:

a.  MLS data fields authorized for display may not be changed. The 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 data display or display of fewer than all of the listings or fewer authorized data fields.

b.  The VOW must display a notice on all data displayed indicating that the data is deemed reliable but is not guaranteed accurate by the MLS.

c.  Listings or property addresses of sellers who have directed their listing brokers to withhold their listing or property address from display or distribution on the Internet shall not be accessible to Registrants.

d.  Non-principal brokers or sales licensees affiliated with Participants may operate VOWs if their Participant consents and if permitted by the MLS, such VOW to be subject to the control of the Participant.

e.  MLS data available on a VOW shall be refreshed not less frequently than every seven (7) days.

III. Policies Applicable to Multiple Listing Services.

1.  Associations of REALTORS and their Multiple Listing Services shall enable MLS Participants to operate VOWs, subject to the requirements of state law and the requirements above.

2.  MLSs shall, if requested by a Participant, provide basic "downloading" of active listing information sufficient to operate a VOW, but excluding the listing or the property address, respectively, of any seller who affirmatively directs that the listing or the property address not appear on the Internet or other electronic forms of display or distribution. For purposes of this policy, "downloading" means electronic transmission of data from MLS servers to Participants' servers on, at the discretion of the MLS, a persistent or transient basis. In addition, Associations and MLSs can also offer alternative display options including framing of Board, MLS, or other publicly-accessible sites displaying Participants' listings (with permission of the framed site). This policy does not require associations or MLSs to establish publicly accessible sites displaying Participants' listings.

3.  MLSs may charge the costs of adding or enhancing their "downloading" capacity to enable Participants to operate VOWs to those Participants who will download listing information for that purpose. Assessment of such costs should reasonably relate to the actual costs incurred by the MLS.

4.  MLSs that allow persistent downloading of the MLS database by Participants for display or distribution on the Internet or by other electronic means may require that Participants utilize appropriate security protection, such as firewalls, which requirement may not impose on Participants security obligation greater than those employed by the MLS.

5.  An MLS may permit Participants to make "Sold" data available on a VOW for search by Registrants.

6.  MLSs may require that any listing displayed on a VOW identify the listing firm.

7.  MLSs may prohibit non-principal brokers or sales licensees affiliated with Participants from operating VOWs that do not require registration with the Participant in accordance with section II.2 of these policies.

EFFECTIVE DATE:
The foregoing policies shall become effective upon adoption by the NAR Board of Directors, except that (1) MLSs have until not later than July 1, 2003 to adopt and implement the foregoing policies and (2) Participants shall have until not later than 180 days following adoption and implementation of these policies by an MLS in which they participate to cause their VOW to comply with these provisions. 

COPYRIGHT© 2002 NATIONAL ASSOCIATION OF REALTORS®
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The National Association of REALTORS®, 430 N. Michigan Ave., Chicago, IL 60611 Telephone: 1-800-874-6500