POINT OF VIEW: Whatley Report

Decision time

In 1787, more than a decade after the United States declared its independence from Great Britain, 55 delegates from 12 states gathered in Philadelphia to draw up the Constitution of the United States.

The delegates realized that our new nation was foundering. Under the Articles of Confederation, the United States had no president and no central court. Congress had little power and, as a result, couldn’t deal with serious national problems such as paying the war debt. Without a structure and guiding principles, the country couldn’t sustain.

The Constitution’s framers set out the fundamental laws that, two centuries later, still define who we are as a nation. But the Constitution they created wasn’t a perfect document. It didn’t end slavery or give women the right to vote. Most states wouldn’t ratify the Constitution without assurances that they’d see a bill of rights, which followed in 1791.

The Miracle at Philadelphia teaches us that although decision-making is difficult and typically requires compromise, that doesn’t excuse leaders from making decisions. In fact, the ability to make decisions at critical moments is the essence of leadership. That’s important to remember as we consider the debate over virtual office Web sites, sites that operate as brokerages but maintain relationships primarily online.

Today, VOWs are operating in an unregulated environment. That’s expected to change in May, when NAR’s Board of Directors will vote on a policy to regulate the use of MLS information by brokers operating these sites.

We’ve been debating how that policy might read for more than a year now. As an industry, frankly, we’ve had difficulty coming to grips with how to regulate VOWs. The VOWs themselves aren’t satisfied with the current Internet Data Exchange policy; they want to operate in an environment that allows them to provide as much information to consumers as the broker down the street provides. Many of our largest companies, however, argue that the VOW policy shouldn’t limit their ability to control whether and where their listing data appears on the Internet. When there are valid arguments on both sides of an issue, that makes it especially difficult to make a decision. However, inaction isn’t an option. Our Board of Directors has been elected to lead; that’s what we need to do.

One policy proposal that has emerged is outlined in an educational supplement beginning on page 56 of this issue of REALTOR® Magazine. The proposal would allow VOWs to post all listings except those whose sellers want no online exposure. But consumers couldn’t access the listings without establishing a lawful relationship with the VOW. An alternative proposal, which should be completed by the time you read this, would allow brokers to make independent decisions to opt out of having their listings displayed by any VOW. These two proposals will be debated in May, and one will come before our Board May 17.

Whether you’ll be voting on the policy or not, I urge you to read the VOW supplement and understand its ramifications. Will this proposal—or the alternative now being developed—be the final word? Probably not. There’ve been 27 amendments to the U.S. Constitution. But like our Founding Fathers, we need a starting point. We need policies and rules to ensure that our data is protected and that our ability and willingness to share listing information for purposes of compensation and cooperation remain steadfast. Decision time is here.

—NAR President Cathy Whatley, CIPS, CRS®, GRI, LTG

For additional information on VOWs and Internet Data Exchange, visit REALTOR.org/VOW. To view the second VOW proposal (also available at REALTOR.org/VOW), click here.