Some brokers and MLSs are upset that multi-state brokerage eRealty is using its MLS data downloads as a means to provide exclusive access to listings in key relocation destinations across the U.S. on the Yahoo! Real Estate portal.

Is eRealty side-stepping MLS rules or has the company found a clever use for listings to give them a competitive edge on leading portals?

For the answer, Agent News asked Laurie Janik, general counsel to the NAR.

"My view is that a large broker may cut a deal with Yahoo! because they have listings in many marketplaces, but there are rules that governing the distribution of listings," says Janik. "The means of distribution can be faxing, mailing, handing it out to buyers in the office, or delivering it electronically."

"Our rules govern what information can be provided and how much, but our rules don't discriminate between methods of delivery," she clarifies. "The same rules that have always applied to access to information will apply to the Internet environment."

According to a white paper published by the NAR:

"(Internet Data Exchange) IDX is a form of public advertising, while VOWs are a ways for participants to provide clients or customers with listing information responding to their stated needs in much the same way as they would give information to a client or customer sitting in their office."

"Use of current listing information, under IDX, is premised on each participant consenting to public, electronic display of their listings by other participants. If a participant refuses to allow other participants to display his or her listings on their Websites, that participant is not eligible to receive current listing information for display under IDX. The rights of MLS participants to submit listing information, and to receive and share it with bonafide prospective purchasers in the ordinary course of business, are not affected whether participants take advantage of IDX or not."

MLSs can establish reasonable rules and regulations related to participating virtual VOWs including requiring that the listing agent's contact information remains on the listing, for example.

"The concept is that I can go to Yahoo! and am passed to eRealty's virtual office," explains Janik. "At that point I am going to get agency disclosures, and terms of use and the I am going to have to agree to the terms. It's an online environment that gives a similar experience as in a brick and mortar office where you would receive a printout of listings."

"I don't consider this a loophole, as this has been around for a while," says Janik. "What is new is eRealty has an exclusive relationship with Yahoo!."

"I did see a trademark misuse on the Chicago search that I didn't like," adds Janik, "but if I know eRealty, they will fix it as soon as they are aware of it."

The NAR's position means that any broker with a direct data feed from the local MLS can do the same thing as eRealty, or the broker can choose the MLSs IDX solution instead.

"IDX is advertising with no strings attached," says Janik. "A VOW is a parallel to a broker's office, so a site where you have to declare yourself a bonafide seeker of property might deter some people. With a VOW, you have to qualify the prospect, obtain their identity, give agency disclosures before you tell them what type of property you can show them, find out what type of agency they are interested in."

Russell Capper, CEO of eRealty told Agent News that "About 80 or 90 percent of people choose not to agree to the terms of use."

But the ones that do agree to the terms give their contact information, making them stronger candidates as leads. It seems that eRealty has found a clever way to do something other brokers have not been able to do - hurdle past listing brokers as the first point of contact. Due to the listings-centric nature of most national listings portals, most agents and brokers can only be found via their active listings or paid advertising tools.

While Yahoo! would not disclose their financial terms (whether they are accepting referral or advertising fees) for allowing brokers exclusive portal rights for city searches on Yahoo! Real Estate, a spokesperson said, "Yahoo! Real Estate would make an arrangement with a broker who'd like to take advantage of the advertising opportunity."

Published: March 8, 2002

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.