NAR and DOJ reach settlement

Washington, D.C. (May 27, 2008) -- The National Association of REALTORS® (NAR) and the Department of Justice (DOJ) reached a favorable settlement on May 27, 2008, concluding a two-year DOJ investigation followed by two and half years of litigation regarding NAR's multiple listing policy pertaining to the display of listing data from the MLS on brokers' virtual office Web sites, or VOWs.

The terms of the proposed final order validate REALTORS®' position that MLS members must be actively engaged in real estate brokerage by actually helping people buy or sell homes. This will ensure that MLSs are used for what they were originally intended to do -- to help real estate professionals find buyers for people who want to sell their homes.

Settlement Overview
Strengthened Membership Rule
The settlement permits MLSs to adopt a more stringent criterion for brokers seeking to be participants in an MLS. Instead of merely possessing a broker's license, participants must be actively engaged in real estate brokerage by actually helping people buy or sell homes. This will ensure that MLSs are used for what they were originally intended to do -- to help real estate professionals find buyers for people who want to sell their homes.

Revised VOW policy
The final order requires that NAR adopt a revised Virtual Office Web site policy, and that NAR request MLSs adopt the new policy within 90 days of the court's approval of the parties' agreement, expected by late summer. NAR has agreed to these revisions, which continue to protect the rights of sellers who do not want their property or their property's address displayed on the Internet. The new policy also protects sellers from having false or other unwanted information about their listings appear on the VOW site of members of the MLS, and allows sellers to object to additional features near the listing. The revised policy also includes provisions confirming the opportunity for participants to use vendors to operate their VOWs for them.