By Karen Kage, Chief Executive Officer

One of the main topics of discussion during the recent National Association of REALTORS^® (NAR) Mid-Year Meetings was surrounding the rules for operating a Virtual Office Website (VOW). The reason for this debate is the investigation and negotiation between the NAR and the Department of Justice (DOJ). The department has been conducting an investigation of the VOW policy for the past 20 months. The following is an update from these meetings on this important topic.

The current VOW policy is based on the premise that real estate brokerage can be conducted online. It governs rules for the display of listing data on a VOW which usually provides more detailed property information and requires consumers to register along with disclosing certain information about themselves. The policy also requires consumers to agree to terms of use. These policies are separate and different from those that govern data display through Internet Data Exchange (IDX).

So why is the DOJ investigating this policy? The current policy allows brokers to opt-out through one of two (2) options. A blanket opt-out is one in which the listing broker allows no display of company listings on any VOW. A selective opt-out allows the broker to decide on which VOWs their listings can appear. According to NAR analysts, the DOJ’s position is that letting brokers decide on which VOWs their listings may appear could impact the ability of some VOW operators to compete in the real estate marketplace and, may be viewed by the DOJ as a restraint on trade.

During the Mid-Year Meetings, the NAR leadership was authorized to develop a single, uniform policy governing the display of MLS data on Internet websites. This new set of policies would combine the current VOW and IDX policies into one. Further, the NAR’s leadership team was authorized to negotiate with the DOJ on these listing display policy modifications in an attempt to reach an agreement.

What does this mean for Realcomp? The Realcomp Board of Governors, at their May 20th meeting, agreed to rescind the previous decision to adopt the current VOW rules which were to become effective July 1, 2005. Once the NAR has finished their negotiations with the DOJ, and the combined rules are published, Realcomp’s Board of Governors will review the revisions for consideration and adoption.

Please let me know if you have any questions or comments about this. I can be reached by e-mail or by phone at 248.699.9120.

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