Report of Saul Klein, CAR Director and MLS Committee
Regional Representative, Region 24
Anaheim, CA
Saturday, October 13, 2007:
After Four days of explanation and debate, the California
Association of REALTORS Board of Directors approved a motion, clearing the way
for a voluntary statewide MLS. The motion, created by the MLS Working Group
(The MLS Working Group was established by past CAR president Jim Hamilton 2 ½
years ago), was changed at the last minute this morning by the Working Group
prior to being placed on the floor. The change to the Working Group motion
reflected the specific type of entity to be created…that entity
being a not for profit, mutual benefit association.
At the MLS Committee meeting on Friday, the MLS Committee
created its own motion which was offered as a substitute motion to the Board of
Directors. The MLS Committee motion directed the MLS Working Group to prepare a
more detailed business plan prior to creating the entity and was
rejected by the directors. The MLS Committee motion, made by past MLS Committee
Chair Bob Hart, was passed by a unanimous vote at the Committee, before being
rejected as a substitute motion for the Working Group motion, by the Board of
Directors.
There has been great forward movement by MLSs in California
to form “super regional” MLSs and this forward movement can be
contributed in part to the work of the Working Group, applying an indirect
pressure, as it worked to advance the MLS Statement of Principles in the
state (see statement of principles below).
Technologies and rules for cooperation are already being created at the
regional level and could reduce some of the time to make a statewide MLS a
reality in California.
Motion:
The MLS working Group recommends formation of an entity to
develop a statewide hybrid MLS with a single data base. This system could be
used as a primary MLS at a local Association’s option, or as an
aggregated data base by local Associations or Regional MLSs.
Further that the following be formed
a.
An MLS Rules working group of the MLS Committee to
recommend statewide rules to be used in the statewide Hybrid MLS for report in
January.
b.
An MLS Statewide Governance working group to recommend a
specific governance structure for report in January.
c.
An MLS Standards Subcommittee Group to report through
the MLS Committee to recommend data standards and report in January.
d.
An AE working group to recommend the most efficient and
member-oriented approach on which services should be retained at the local
level.
Finally, that the previously approved $500,000 also fund
minor expenses of the working groups. (Note that none of the $500,000approved
at the June meeting has been used).
Saul
Saul
Klein
President/CEO,
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MLS Working Group Statement of
Principles
(Adopted by the C.A.R. Board of
Directors 9/24/2005)
1. MLS data needs to be fully standardized with local options for
data field variation.
We believe that local customization of MLS data fields has made
the comparison of data between MLS’s unnecessarily complex. A lack of
uniformity has created artificial boundaries that impede the efficient
operation of the market and the ability of REALTORS® to service their clients.
We support universal data fields that are standard across all MLS’s while
also recognizing the need for adding local descriptors.
2. California REALTORS® should have universal access to all MLS
data.
C.A.R. members are licensed by the state Department of Real Estate
and as such are able to sell property throughout California. Consumers have
access to statewide and even nationwide listings through a variety of data
aggregation sites on the Internet. In order for REALTORS® to provide their
clients with the information they want, California REALTORS® should have access
to all listing data in the state. Shared databases and reciprocal agreements
should be strongly encouraged.
3. Use of MLS data and its distribution to third parties should be
controlled by the brokers who provide the data.
We believe that a listing represents intellectual capital and that
the process of creating a listing is a value-enhancing activity. Brokers
entering into an exclusive agreement with sellers accept the responsibility for
marketing the property and should have control over distribution of the listing
data. The rampant and uncontrolled dissemination of valuable listing
information on the Internet has increased the cost of doing business and
devalued the role of the agent and broker in this process.
4. MLS entities should exist for the benefit of the participants
and subscribers.
We believe that MLS fees should be set at a rate that gives the MLS
and/or the Local Association a fair return for delivery of MLS services. We
believe that local Associations of REALTORS® provide valuable services to their
members. These include services and activities that advocate for homeownership,
ethics and professionalism in the industry. We believe that local AOR’s
should be adequately and fairly compensated for these services, including those
that may be directly associated with an MLS. 1 2
5.. MLS rules should be uniform
and enforced consistently.
Over the years the relevant market area for many brokers and
agents has expanded beyond the artificial boundaries of now out-dated MLS
regions. As a result brokers are increasingly operating in multiple MLS
environments and facing complex issues related to the disparities in rules,
regulations and enforcement governing different MLS’s. We believe rules
should be established that simplify and enhance the experience of MLS users
across systems. To that end we believe that the C.A.R. Model MLS Rules should
form the basis to develop statewide rules and standards of enforcement.
6. MLS Boards of Directors should include broker owners with
appropriate regional representation.
We believe that broker involvement in MLS governance is critical.
The MLS is the single most important business tool in the real estate industry
and as such the provision of MLS services should be accountable to all
participants. We believe it is imperative that brokers from both large and
small firms be given representation on MLS Boards.
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