BROKER RISK MANAGEMENT
WEEKLY PRACTICE TIP
As you may be aware, the U. S. Department of Justice (“DOJ”) challenged the policies of the National Association of REALTORS® (“NAR”) pertaining to the display of listings from the MLS on brokers’ virtual office websites, or VOWs.
As a result of a settlement reached between NAR and DOJ, all MLSs were required to adopt and implement what are now the official NAR VOW policies and rules no later than
- Exclusion of the property address from the Internet.
- Exclusion of comment or property review feature from the Internet.
- Exclusion of automated estimate of property value feature from the Internet.
FORMS CHANGES: To accommodate these changes, C.A.R. has made some modifications to two of its standard forms:
1. The MLS paragraph in the “Residential Listing Agreement” (WinForms form RLA) has been modified to reference the Internet opt-out options.
2. The “Seller Instruction to Exclude Listing from the Multiple Listing Service or Internet” (WinForms form SEL) has been revised to include optional paragraphs allowing the seller to choose among the various opt-outs.
NEW VERSIONS AVAILABLE NOW ONLINE: The new versions of these two forms are currently available on WinForms Online. In addition, they will be available in paper forms by
Users of the WinForms Desktop can access the new forms by going to the CAR website (www.car.org) and click on the “WinForms Online” icon on the right side under “Tools,” download the viewer if not already downloaded, and follow the directions to create a WinForms online account.
USE OF CURRENT FORMS:
1. RESIDENTIAL LISTING AGREEMENT: CAR advises that, because the current version of the RLA already gives the broker unrestricted authority to submit the listing to the MLS (and, thus to additional Internet sites), the existing RLA form may continue to be used.
2. SELLER INSTRUCTION TO EXCLUDE LISTING FROM THE MULTIPLE SERVICE: Also, the existing SEL may continue to be used for those sellers who want to exclude the listing from the MLS entirely, including exclusion from any Internet sites receiving data from the MLS.
NEW INTERIM FORM: For agents who may have difficulty accessing the online version of the SEL form for sellers who wish to exclude some or all of the features listed above from the Internet display of listings, the attached form can be used for that purpose until such time as agents are able to access the revised SEL form.
PRACTICE TIPS:
1. Listing agents should now begin using the new forms.
2. Discuss with your sellers their respective options regarding how their listed property will be displayed on various Internet sites.
3. Check with your local MLS to determine whether any additional requirements or forms are, or will be required, as a result of the DOJ and NAR settlement.
4. These changes may not affect MLSs that are not owned by local Associations of REALTORS®. If you belong to such an MLS, check with them regarding their rules related to the above.
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This Weekly Practice Tip is attorney-client privileged and for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.
SELLER INSTRUCTION TO EXCLUDE LISTING FROM THE INTERNET
This is an addendum (“Addendum”) to the Residential Listing Agreement dated _________________,
2009 on property known as ___________________________________________________ (“Property”)
in which _________________________________________________________ is referred to as Seller
and _____________________________________________________________ is referred to as Broker.
1. SELLER TOTAL OPT-OUT – FULL EXCLUSION OF PROPERTY FROM THE INTERNET: Seller advises Broker that Seller does not want the Property to be displayed on the Internet. Seller has been advised and understands that if this option is checked, prospective buyers who search for listings on the Internet will not find information about the Property in their search results.
2. SELLER OPT-OUT – SPECIFIC INTERNET FEATURE EXCLUSIONS
A. Exclusion of Property Address from the Internet: Seller advises Broker that Seller does not want the address of the Property to be displayed on the Internet; and/or
B. Exclusion of Comment or Property Review Feature from the Internet: Seller advises
Broker that Seller does not want visitors to Internet sites displaying the Property listing to have the ability to write comments or reviews about Seller’s Property on those sites or the ability to hyperlink to another site containing such comments or reviews if the hyperlink is in immediate conjunction with Seller’s Property; and/or
C. Exclusion of Automated Estimate of Property Value Feature from the Internet:
Seller advises Broker that Seller does not want visitors to Internet sites displaying the Property listing to display an automated estimate of the market value of the Property, or the ability to hyperlink to another site containing such automated estimate of market value if the hyperlink is in immediate conjunction with Seller’s Property.
By signing below, Seller acknowledges that Seller has read, understands, accepts and has received a copy of this Addendum.
Seller__________________________________________ Date __________, 2009
Seller__________________________________________ Date __________, 2009
Real Estate Broker _______________________________
By____________________________________________ Date __________, 2009
Agent