Tracking Your Data. Presented By: John DiMichele, CIO

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2 Table of Contents Course Objective 2 Discussion Highlights 2 What Do We Have? 3 On the System 3 Internally 3 Member Choice & Data Security (graphic) 4 Indirect Access to the Database 4 Where is the Data Going? 4 Rules, Policies and the Authorized User Agreement 5 Data Transfer Agreements 5 VOWs, IDX and Permission Management 8 IDX 8 Sample Sites (Note space only) 9 VOW 10 Background 11 What Was Proposed in the US? 12 What Are the Differences Now? 12 What s the Difference 13 On the Street 13 Why the Move Towards IDX and VOWs? 13 Implementation 14 Sample Graphics 15 Reaction 16 Course Summary 17 Additional Notes (space) 18 1

3 Course Objective This course is designed to provide Realtors with a brief outline of the current amount and sources of data that TREB currently has on their behalf, as well as where we are sending it and how it is distributed. They will come to understand better TREB s underlying policies and contracts concerning Data Transfer. It will also provide the Realtor with an understanding of what a VOW is, what IDX means and the difference between the two. The Realtor will gain an understanding of the benefits and risks in these types of data transfer. The course provides the Realtor information as to the data exchange process and setup with CREA as well as a brief look at Permission Management. Discussion Highlights Current data distribution What are we sending and where? TREB Data Policies MLS Rules and Authorized User Agreement Data Transfer Agreements (DTA s) VOWs and IDX CREA Mls.ca, IXN, REALTORLink, WebForms Permission Management 2

4 What do we have? On The System TREB maintains a database of MLS listed properties o Active o Sold and other off market records Member Broker/Firm Information Member Information Internally Membership information Accounting data Staffing information Organizational Information Business Documentation What do we have? The type of data varies with the with respect to the entity that is receiving it Direction from the Broker Respecting Privacy and Regulatory laws For Example: o mls.ca o Prospect Match o Statistical data - CREA, CMHC 3

5 Member Choice & Data Security (Graphic) Indirect Access to the Database Third Party Service Providers Top Producer Broker Front Desk Systems Virtual Tours Providers Photos Slide shows More Services Providers requesting access to the data and/or linking to the MLS system Where is the Data Going? TMLS Distributed through Members in day to day trading of Real Estate CMAs, Prospect Match, , photocopies Landtree Printers Books, Custom books, dailies Wireless Provider 4

6 Where is the Data Going? OREA/OIS o Commercial Data CREA o Mls.ca, IXN o REALTORlink o NAF- National Authentication Facility o WebForms Data Transfer Agreements (DTA S) o Member Websites o Other Real Estate Websites Rules, Policies and the Authorized User Agreement Only data you should be displaying is your own unless you have consent of the Listing Broker o Contracts No aggregating and/or creating a separate database Undue strain on the MLS system Data Transfer Agreements Technology Corner Broker direction to TREB Signed copy to TREB Third Party signature in accordance to TREB s Third Party Access to Data Policy Record of DTA in DTA database Semi-annual notice to Brokers Terminations must be in writing 5

7 Data Transfer Agreements (1st Graphic) Data Transfer Agreements (2nd Graphic) 6

8 Data Transfer Agreements (3rd Graphic) Data Transfer Agreements (4th Graphic) 7

9 Data Transfer Agreements Direction from Brokers to TREB Does not form a contract between the Broker and the Third Party Service provider Third Parties are bound On the Brokers data is sent to the Third Party Copies are filed Input into a database Semi annual update letters to Brokers Written terminations VOWs, IDX, and Permission Management VOWs and IDX IDX One database of all listings Homestore J. Lennox Scott erealty and Zip Realty MLS.ca Broker Reciprocity = IDX = Internet Data Exchange IDX starts with the premise that no broker can advertise another broker s listings without the listing broker s consent. IDX - Board Run 1 Advertising another Broker s listing with the permission of the listing Broker Brokers can Opt Out of participation Consumers conduct searches from Realtor web sites Displayed fields are limited like an advertisement 2 boards in Canada have launched IDX o London o Vancouver Have had excellent participation IDX Why have an IDX Broker control of data Marketing and differentiation 8

10 First and ongoing contact with consumer as the best source of information Stickier sites Comprehensive electronic consumer catalogue IDX NAR Policy All REALTOR owned/operated MLSs must enable MLS Participants to display on their websites aggregated MLS information consistent with Internet Data Exchange ( IDX ) policies NAR Board approved IDX, to be implemented by January Sample Sites Notes (Slides 26 through to 29) Sample Sites Notes (Slides 30 through to 34) Sample Sites Notes (Slides 35 through to 38) 9

11 Sample Sites Notes (Slides 39 through to 42) Sample Sites Comparison Notes (Slides 43 and 44) VOW VOW = Virtual Office Website A NAR white paper defined a VOW as: "the equivalent of a brick and mortar office where potential purchasers enter, describe the property being sought, provide contact information, and receive listing information responsive to their stated needs." An alternative delivery mechanism for the information distributed by brokers to clients with whom they have a broker/consumer relationship. A site that displays listings to qualified buyers interested in the listings but prevents general access to this information A way to get around the Opt Out provision. In theory the public must first register, establish a lawful relationship with the Broker and agree to Terms of Use before getting access to the data. Therefore this is NOT considered advertising. 10

12 Background Austin Board Of Realtors and erealty o Precursor to IDX erealty and Zip Realty o operate VOWs in response to consumer demand o opportunity to increase productivity and service levels o they are respectful of the consumer s time and point of view and their focus is on the client s security and privacy erealty and Zip Realty o sites are designed to increase communication and efficiencies for the salesperson o targeted searching the consumer needs are anticipated and the results are fewer showings (40% fewer) o Traditional Brokers have the listings, ebrokers have the buyers and any Broker who places a listing on MLS is asking for help in marketing and selling the listing therefore, and to that end, access should not be restricted. erealty and Zip Realty o The business model is based on the ideas that a modern consumer wants: o A new and improved way to buy and sell. o More control of the process. o More information overall. o Detailed MLS information. o Sold Data. o Detailed search functionality. o To engage the Realtor over the internet. Customer Acquisition Stats as reported by erealty Traditional erealty # of Prospects # that viewed data without Terms 44 0 # that viewed data after agreement to 6 8 Terms # of prospects that did NOT view MLS

13 Concerns o Data security, privacy. o Can an agency relationship, disclosure, or acceptance of terms, be established by a click of the mouse? o Can you police the consumer? How do we reconcile the investment of time and money by the broker who generates the listings? Third Parties. Brokers have been operating VOWs for several years. VOWS are pre-qualifiers A marketing tool, competitive edge, method of differentiation. Drawing the line in the sand (buyer broker vs. listing broker) What Was Proposed in the US? IDX The Consumer is a Visitor Advertising Permission is required Data displayed is limited IDX rules apply VOW Agency relationship Service provider Permission not required All the data MLS rules apply What Are The Differences Now? IDX The Consumer is a Visitor Advertising Permission is required Data displayed is limited Regulatory rules apply VOW Registration and Acknowledgement Service provider Permission is required (opt outs) Data displayed is agreed to (Parity) MLS rules but policed by Participants 12

14 What s The Difference? Consumer information is captured on a VOW. IDX is advertising, therefore subject to regulation and Provincial laws supercede everything. On the Street We made a few calls to Realtors in The U.S. and not as big an issue as expected. It was more about what they were advertising - disparaging the traditional Broker. Should be regulated as the number of VOW sites is growing and there is a need to be able to deal with mis-users. Why The Move Towards IDX and VOWs? Broker control of data Driving traffic to broker sites Reacting to consumer demand for information Reacting to increase in consumer technology skills A way to capture the consumer at source A potential revenue stream for brokers A potential revenue stream for third parties 13

15 Implementation US mandatory policy in effect July 2006? o VOW operators to comply within 180 days. o Discussions continue. New Unified Policy: o ILD Internet Listing Display Policy o Combines both IDX and VOW policies o Hoping to satisfy the DoJ (US Department of Justice) ILD o Permissions language o Selective Opt-Out removed o Better control of opt-outs generally o Continues to prevent unrestricted data access to Third Parties o Restricts referral companies from access. DoJ Launches Anti-trust Lawsuit one day after NAR releases new ILD policy. Main concerns are with the Opt-Out aspect regarding VOWs Referal companies FTC and DoJ co-host public forum on Competition and Real Estate The debate is becoming broader TREB s Current Role o Third Party Access to Data Policy o Service provider o DTAs o 3PV o Options o Prospect Match In Canada o EDU Task Force o October 2003 suggested policies were published TREB has been reviewing CREA is now offering MLS.ca solution and a Permission Management module. CREA Permission Management o Framing Policy o Board options o Broker options CREA IDX and VOWs o IXN 14

16 MLS.ca (Graphic) Button to MLS.ca (Graphic) 15

17 Frame of MLS.ca (Graphic) Reaction As the Real Estate industry becomes more transparent o data is made readily available to the consumers in bulk by parties within the profession, o the outside and sideline industries are able to see the potential revenue and want to become partners. Lending Tree, Home Gain, MS and Primedia They are working around having the data. The US Government is getting involved. 16

18 Course Summary The information that the Realtor should be ab le to take with them from this course: A basic understanding of the types of data that TREB manages both internal and external A general picture of where that data goes, what is done with it and how it is protected. An understanding of the basic concept of the rules, policies, and the Authorized User Agreement concerning data and its transfer. An understanding of the Data Transfer Agreement and its purpose. A general picture of what IDX is. A general picture of what a VOW is. An idea of what the differences are between the US and Canada for IDX and VOWs. A general picture of the implementation of IDX and VOWs. 17

19 Additional Notes 18

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