President's Perspective
Protect Your Data
Protect Yourself!
Lynda Long
President
llong@coldwellbanker.com
Keep your User Name and Password confidential
By now, you should be aware that, since software is not required to reside on your computer, any person with internet access has the capability of accessing the MLS if the operator has a valid User Name and password. Any person – regardless of whether or not they are a member of CBR, are a Realtor®, or are even licensed.
Yes, this means that a member of the public can access your database if they have a valid User Name and password! And, with this access, a non-member can add, edit, modify, remove, etc. information from the system.
How can a non-member get a valid User Name and password? Well, there's only one way I can figure out…if a valid User provides this information.
What I can't figure out is why?
Why would any member of the CBR MLS provide access to a non-member?
Years ago, the only way to provide some buyers with a complete inventory list was to let them search through the book. And, although I know it was against the rules, I did allow one or two of my buyers to look at the book. (I'm probably going to get in trouble now.)
But today, buyers (and sellers) have access to all listings online. So why would anyone provide access to our database. Access that allows a non-member the ability to modify information. A breach of this nature in the security of our MLS system can undermine the integrity of our data. Folks, this is serious!
For this reason, you will be required to change your MLS password each quarter. This will help to restore any lapse in security. However, if you feel there may be a security concern, you can change your password more often.
Further, the MLS committee will be establishing consequences for any member proven to have shared their User Name or password with a non-member. As a voting leader, I can assure you that I intend to support the most punitive of their recommendations.
On another note…
Has anyone ever asked you why the public cannot list their properties in the MLS? Did you hesitate in awkward silence trying to come up with a diplomatic response? Do you know the answer?
If your first response is that “the multiple listing service is a benefit of membership – a benefit that we pay to create, operate and maintain.” – then you get an “A”. However, there is a legal reason…
Originally, the MLS was created for two reasons. First, the MLS provides us a way to compile all listing information into one place. This allows us to market our listings to all members through one vehicle and also enables us to make a comprehensive inventory search on a buyer's behalf.
Second, the MLS was created to offer compensation. You see, the multiple listing system is, by definition, a “unilateral offer of compensation.” It is actually considered a legal contract in Ohio. Further, by Ohio law, only licensed real estate brokers (and appraisers) are able to receive compensation on the sale of real property.
This applies to agents, also. Although we are MLS users, we are not MLS participants because only real estate brokers can take listings and receive compensation.
No Duty to Disclose Area's
Racial Makeup
Did you hear about the December ruling in Cincinnati? An Ohio appellate court ruled that a buyer's representative did not have a fiduciary duty to give her client requested information about an area's racial composition.
After requesting information on the area's racial makeup (which the agent did not provide), the buyers purchased a home and later found that they were the only African-American family in their subdivision.
They sued their agent alleging breach of contract, breach of fiduciary duty, and fraud. The buyers argued that providing information to a client concerning racial composition of a community when the client requests such information was a fiduciary duty a licensee owed to its client as well as a contractual duty in this instance, based on the duties described in the Agency Disclosure form.
The court looked at other decisions from other courts, and found no decision imposing a duty upon a real estate liecnsee to disclose information about the racial composition of a neighborhood. Further, the court found that a real estate licensee could be liable for unlawful racial steering in violation of the federal Fair Housing Act if the licensee provided such information.
The trial court ruled in favor of the Buyer's Representative on all of the allegations and, when the buyers appealed, the 1st District Court of Appeals affirmed the trial court's ruling. Although Columbus is not located within the same jurisdiction, it stands to reason that this decision may have influence on other Ohio appellate districts.
You can find the whole story from the ‘Members Only' page of our web site, www.ColumbusRealtors.com. Also, the March Ohio Realtor® will carry a comprensive article by Lorie Garland, Assistant Vice President of Legal Services.
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