by Karen Kage, Chief Executive Officer

During the week of May 10th, I attended the NAR Mid-Year Meetings in Washington D.C. It was a great opportunity for me to talk with other MLS leaders from around the country and find out how they are handling some of the same industry changes that Realcomp Subscribers are also facing. I’d have to say the two (2) most talked about issues continue to be VOW (Virtual Office Website) policy implementation and the legal challenges of full and limited service brokers working together. Here is a summary of these topics:

VOW Policy

The NAR VOW policy originally required MLSs to adopt and implement its provisions by July 1, 2004. However, as many of you know, the NAR has been waiting for feedback from the Department of Justice (DOJ) regarding the implementation of the proposed VOW policy. The two main points being questioned by the DOJ are the ability for the broker to optout of participating in a VOW selectively (by individual office) or on a blanket basis. It was anticipated that an update on the review by the DOJ would be provided at the NAR MLS Committee Meeting. However, no such update was available. Therefore, the NAR MLS Committee recommended, and the Board of Directors approved, an extension of the compliance date to January 1, 2005. We now look forward to an update on this policy from the DOJ at the NAR Meetings in November.

What does this mean for Realcomp Subscribers? It means that we will hold off on implementing the VOW policies until we receive a report from the DOJ. We do not want to put any of our subscribing offices at risk by adopting policy that we may be required to change shortly after implementing. This has been a long drawn out process and we are looking forward to some resolution yet this year.

Limited Service and MLS Entry Only Listings

This is a much talked about subject with every MLS! A “Risk Management and License Law Forum” was held to discuss the challenges of full service and limited service brokers working together. A great deal of good information was exchanged. I will be watching NAR’s website for details of the discussions and will pass that along to you once it becomes available.

I also wanted to find out how other MLSs are designating these listings. I spoke with both Board/Associationowned and privately-owned MLSs and it seems we are all using similar methods to flag the listings. Of the approximately twenty MLSs with whom I spoke, not one of them had made the decision to prohibit the Limited Service or MLS Entry Only listings from their database. They reported that they had been advised to accept these listings, but to also establish ways of identifying the level of service being offered.

Again, I will provide more information on these important topics as it becomes available. And, please let me know what you think. I can be reached by e-mail or by phone at 248-699-9120.