I’m sure the real estate sites on the Internet will be full of NAR and DOJ news, but I figured that I’d post something in case you missed it.

NAR and the DOJ have reached an agreement to settle the antitrust lawsuit filed by the Department of Justice in 2005.  Luckily, both sides won.  At least that’s the impression you’d get from their respective press releases.

The DOJ won because the agreement ”guarantees that Internet-based brokerage companies will not be treated differently than traditional brokers.” And because “NAR also has agreed to adopt antitrust compliance training programs” which will update local REALTOR® Associations on the implications of the agreement and antitrust laws in general.

NAR won because “the real estate industry is dynamic, entrepreneurial and fiercely competitive. Thanks to REALTORS®, consumers can access detailed information about millions of properties for sale across the country.”  And because “NAR does not admit any liability or wrongdoing and NAR will make no payments in connection with the settlement.”

Hmm. 

I’ve always believed that there are no stupid questions.  In this instance, to be honest, I haven’t really followed the dispute in great detail, and the coverage I’ve read of the proposed agreement just doesn’t make a lot of sense to me so far.

However, I think this is really the meat of the issue from the DOJ’s standpoint:

• “Under the new policy, brokers participating in a NAR-affiliated MLS will not be permitted to withhold their listings from brokers who serve their customers through virtual office websites (VOWs). In addition, brokers will be able to use VOWs to educate consumers, make referrals, and conduct brokerage services. Such brokers will not be excluded from MLS membership based on their business model. NAR will report to the Department any allegations of noncompliance. “

I find this somewhat confusing because the only real data I have about VOW vs IDX systems is from the Chicago area.  In Chicago, 100% of the listings are shown on the VOW system, while the IDX only has 60% of the listings.

This seems to fly in the face of the statements that brokers were holding their listings out of the VOW.

From NAR’s standpoint, this statement seems to be the meat of the issue:

• “The proposed terms are a win for NAR, REALTORS®, and consumers, and confirm that MLS members must be actively engaged in real estate brokerage by actually helping people buy or sell homes.”

So, I’m thinking that if I’m confused, I might not be the only one.  If anyone out there can explain the dispute and the proposed settlement in English, please leave a comment!  I’ll update this post as possible.