'MLS' in Web site address? Yes, no, or maybe so
By Glenn Roberts Jr., Thursday, May 22, 2008.Bookmarking Sites
There is still uncertainty in some markets on whether or not it's OK for Realtors to use the term "MLS" or "multiple listing service" in their Web site addresses. Some MLSs have passed policies banning participants from using these terms in Web addresses, company names, etc., and the National Association of Realtors board of directors has approved language for an optional policy that MLSs can adopt in restricting the use of MLS-related terms.
There is some debate (even a legal battle) on the issue, as Realtors who use or seek to use MLS in their marketing argue that non-Realtors and non-MLS members are free to use the term because it is not legally protected by NAR. Meanwhile, some Realtors and MLS officials say that improper use of the term "MLS" can serve to confuse and mislead consumers about the definition and function of MLSs.
Last week, members of a National Association of Realtors' committee made some minor changes to language in a case example that supports a provision in the code of ethics relating to Realtor's presentation of a true picture in their advertising and other representations to the public. The case example relates to a situation in which a Realtor used "MLS" in a Web site address. The original language in the case example "might be overbroad, and there could be circumstances where the letters MLS in a Realtor's URL might not be misleading," according to information considered by the committee.
When the case example was approved last year, it read: "While Realtor Z's Web site included information about other participants' listings that the MLS had provided -- and that Realtor Z was authorized to display -- the fact remained that a real estate-related URL that included the letters MLS would lead reasonable consumers to conclude that the Web site would be an MLS's, and not a broker's Web site. Realtor Z was found in violation of Article 12 as interpreted by Standard of Practice 12-10."
And after the committee's change: "While Realtor Z's Web site included information about other participants' listings that the MLS had provided -- and that Realtor Z was authorized to display -- the fact remained that a real estate-related URL that includes the letters MLS will, in many cases lead reasonable consumers to conclude that the Web site is an MLS's, and not a broker's Web site. That was the case with Realtor Z's URL and Realtor Z was found in violation of Article 12 as interpreted by Standard of Practice 12-10."
Is it deceptive for a Realtor who is an MLS participant to own and use a Web site address that includes the term 'MLS?' What if the Realtor is a member of the MLS? Displays listings data from the MLS? Includes disclaimers stating that the Realtor does not own or operate an MLS?
It's a local matter for local MLSs to handle through specialized policies or through secretive arbitration processes if there are complaints. Because the results of these case-by-case arbitration proceedings are confidential, it's difficult to know how this issue is being dealt with at the local level.
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Submitted by Jim Lee, Knoxville TN Realtor on May 23, 2008 - 5:17am.
And apparently "yes, no, or maybe" is going to be the final answer for now.
Some boards or associations say it's OK, some say it's not OK, and some say, yeah, it's OK but you have to have a disclaimer.
Even though Professional Standards hearings and the results are confidential, you can draw your own conclusions if the websites remain up and running afterwards.
For the ones I've been following the results are; yes, no, and maybe.
No consistency is possible since we're dealing with over 900 boards of Realtors, just uneven enforcement of a unenforceable ruling.
Submitted by Tony Arko on May 23, 2008 - 5:33am.
I had dinner with the head of NAR's Policy Committee during last week's Mid-Year conference and we grilled him for about 30 minutes on this topic. The main thing NAR wants to prevent is a member of the public ending up at a REALTOR website but thinking they are at a neutral MLS site.
If it could be reasonable thought that a url with the term MLS in it is deceptive, than it is in violation.
For instance, a url like www.tennesseemls.com is going to be almost certainly interpreted as deceptive. But a url like www.franklymls.com would not because it will more than likely not be mistaken for a neutral site.
Also, the look and feel of the site once you land on it will also contribute to the determination of perceived possible deception.
Submitted by Dave Phillips on May 23, 2008 - 1:48pm.
MLS has become a generic term for "a database of homes for sale." MLS is the offical trademark of Major League Soccer and NAR has nolegal right to inforce this rule, but can (and did) make it an ethics violation. Actually, the rule "true picture in advertizing" has been around for years in the Code. The only thing new is the case that relates to the use of MLS. It will be up to hearing panels to decide if the website presents a true picture or not.
Submitted by Richard Greenwood on May 23, 2008 - 3:30pm.
You'll find several at www.BetterHomeSelling.com with "MLS" in their domain name. It seems to be working for them.
Submitted by Gregory Bain on May 23, 2008 - 7:56pm.
I'm glad to see my membership dues put to such good use (not). You would think the fat cats at the NAR would be working to resolve such real issues as with the law suit with the Department of Justice.
While it is often said, patriotism is the last refuse of a scoundrel. Same is with ethics - those who cry the most are the ones who need it but will never have it.
Those at the top have created the problems we in the trenches work with every day.
Gregory Bain, ABR, SRES
Realtor Associate
NJHomes@Ask4Greg.com
Submitted by Bill Lublin on May 27, 2008 - 5:46pm.
Bill Lublin CRB,CRS,GRI
CEO CENTURY 21 Advantage Gold
Visit my Blog at MovePhilly
Search for Homes in Pa & NJ
Hi Tony; Enjoyed the dinner as well as the company, but I'm Chairman of the Professional Standards Committee, not Policy. And You got it right - its about true picture not just the letters in the URL. Next time you come up to Philly for dinner and I'll buy!
Gregory, with all due respect, no one in the committee or at NAR created any problem; we just wrote a case study to explain how someone might misuse the letters MLS in a URL in a manner that could mislead a consumer. And I might suggest, before making a sweeping statement about anyone's ethical practices, you know who they are, and what they do. The people that I've met who work on Professional Standards all over the country are generally people who are succesful and practice at the higest level.
Submitted by Chuck Marunde, J.D. on June 1, 2008 - 8:13pm.
I'm not sure what all the to-do is about. MLS in my website domain stands for "major lack of stupid", so my whole domain expanded is, "Sequim's major lack of stupid listings," because we have such incredible real estate, there are no stupid listings. Who wouldn't want to live in Sequim, Washington after realizing how amazing it is here?
Chuck Marunde, J.D.
Real Estate Attorney (Ret.)
Broker/Owner/Realtor
SequimMLSListings.com