The Right and Wrong of Broker Data

There is a lot of confusion about real estate listing data today. I believe that the confusion is the cause of agitation that pits technology companies, consumers, real estate agents, pundits, MLSs, franchises, and associations of REALTORS against one another. For many, there is a belief that the listing data is free and access should be provided to all. The reality is that the listing data is legally bound to the real estate listing broker who is the custodian and responsible party for that data.

Being a custodian, or the responsible party, has nearly boundless latitude and altitude. Today's real estate broker can do pretty much whatever they want with their data, subject to state and federal laws. The actions or permissions for data use are measured by the individual broker's choices of privacy and values. The data is their asset, and how they treat that asset is their choice. What is really great about America is that in any given market, there is wide stratification of broker data management values. If anything, I would suggest that the pendulum is leaning toward uncontrolled and highly permissive use rather than tightly managed restricted use.

An emerging trend in real estate is a growing attitude among the nation's leading MLSs that the data belongs to the broker. There are two well-structured categories of data:

• MLS services that allow participants and subscribers the right to share listing data for certain purposes. Those purposes fall into three categories: MLS purposes accessed in the MLS system; IDX services for consumer display of another firm's listing; and VOW services for virtual office client servicing.
• Supporting the broker with the management of the data they own and control. Effectively, in this second category, the MLS provides the firm with their data in a clean and updated format via a data feed or API to use as they wish.