Data ownership debate to be studied by GAO

It looks as though the federal government will be weighing in soon on the issue of who is the rightful owner of property data.  Last week, House Financial Services Committee Chairman Michael G.  Oxley (OH) released a letter requesting a Government Accountability Office (GAO) study on the restrictions placed on Multiple Listing Services (MLSs) and their impact on home buyers.

“The MLSs effectively are the residential real estate marketplaces – where home sellers provide essential information to buyers,” Chairman Oxley wrote. “Today all, or virtually all, MLSs appear to provide information about homes for sale in electronic form, yet there appear to be significant limitations on the accessibility of this information.  Please review and explain any rules for Internet display of MLS information, and any other relevant regulatory.”

Back in September, we were dealing with the argument of “do I own it or don’t I?” when Homestore, owner and operator of REALTOR.com®, forced us to disable our REALTOR.com® listing import feature on your Agent XSites claiming “copyright” to your listings data, and that any Agent XSites owners using this feature are violating their Terms of Use.

Now, Chairman Oxley is asking the GAO to address the following questions in its study:

• How does consumer and industry use of information technology in residential real estate compare to the use in other areas of commerce?
• How could greater use of information technology benefit consumers and residential real estate professionals?  Among other things, could it help increase homeownership among lower income or non-English speaking consumers?
• What legal or regulatory barriers or self-regulatory practices hinder greater innovation and modernization of residential real estate transactions?
• Do the MLSs in effect function as the marketplaces for residential real estate?
• What is the general governance structure, including any governmental oversight or regulation, of MLSs?
• What are the legal and practical effects of the “IDX” and “VOW” rules adopted by the National Association of REALTORS® (NAR) for Internet display of MLS information, and what purpose do they serve?  Could these rules result in the blocking of legitimate commerce, particularly against certain licensed real estate brokers?
• What is “REALTOR.com®” and how does this company generally promote the use of technology by consumers and real estate agents?  Is this an IDX or a VOW site subject to the NAR rules?
• What are the state law obligations of real estate agents and brokers to consumers to promote homes for sale, and how, if at all, are these obligations consistent with restrictions on display of information over the Internet?
• Has the Internet facilitated the custom of agents representing both the buyer and the seller in the same transaction and, if so, is this good for the consumer?

In response to the study, NAR has indicated its confidence that its policies on electronic display of MLS information are in the best interest of consumers and the general public. “America’s multiple listing services are the most open and competitive systems in the world for sharing information about property for sale.  Our reciprocal and voluntary MLS system is one reason America enjoys a record rate of homeownership,” said NAR President Walt McDonald, broker-owner of Walt McDonald Real Estate, Riverside, Calif.

“NAR’s policies governing the electronic display of MLS information have made more real estate data available online than ever before,” McDonald continued. “These rules protect sellers’ privacy, their rights to control the marketing of their property, and the integrity of the MLS system at the same time that they make it easier than ever for homebuyers to shop for property online.”

You can be sure we’ll keep you updated on this issue that hits close to home for many of you.  In the meantime, we’re interested in hearing your comments and stories about your experiences with data ownership or REALTOR.com® in light of Oxley’s GAO request.  E-mail amanda@alamode.com