MLS data--Proprietary, not-releaseable?

[Fred]

Right Pam,

Richard, I was agreeing with your point. I don't think appraisers under a general legal attack for using on MLS data.

 

[bradellis]

Just to chime in- there are some court cases that hhve already dictated that the public may hav access to the MLS and even can list their own home for sale without using a broker member.

NO- this is not confidential data.

Brad

 

[Will Granger]

Hmmmmmmmmmmm :?:
I am guilty of printing and attaching the MLS comparables as the last three sheets of the report before my qualifications sheet. I don't send those pages when doing EDI. Should I stop doing this? I've never had a complaint in a million years of appraising.
When I send EDI reports, are the comparables on the form going in to some large national database or other subterfuge? Our MLS shows DOM from date of the last "new" listing of that property. It could have been listed by several other companies for a year or two prior. Our MLS computer allows us to search the listing history of a property. It takes some time to get true DOM, if there has been a lot of brokers involved. The only request I have for DOM is for relo work.

 

[Farm Gal]

Will:

Check with your board - or DON"T - ignorance may be bliss.

And if it ain't broke, don't fix it. You are sort of 'grandfathered' in my opinion.

Different MLS Boards have different rules, unfortunately there is no one set across the country and some areas like ours have vastly different rules for the different boards and areas we cover!

I usually inform lenders that we cannnot provide them with actual listing sheets, but am willing to give them whatever data they desire... pain in the rear, but so it goes... Usually it is only an REO issue. and usually they just go away.

Regards!

 

[Will Granger]

Lee Ann,
Thanks for the heads up. I have been on our MLS Committee for 10 years and was Chairman for a while. The MLS data is property of the MLS corp. and is not to be dissemenated to the public. I continue to think adding it to an appraisal is not giving it to the public, but most clients are "public." I think I will quit giving it to mortgage lenders as a matter of course anyway. Paper and time are expensive. Have a day!

 

[Jo Ann Meyer Stratton]

I completely agree with Richard. If the days on market is confidential, so is the number of bedrooms, baths, features, and other information in the MLS listing. But---that information is advertised in the paper, handouts, mailouts by the realtors and everything else they do to market the property. If your board doesn't publish the days on market, then start counting the days or months since the ad first appeared--and now you have the days on market. Now I do not and will not copy a MLS listing that has (Confidential Information) at the bottom and send someone. I talk to a realtor or party to the transaction or been inside the home near time of sale, then rephrase, add, delete the information that is necessary to produce a good appraisal report. The info from all those sources gives a clearer picture of why or why not that sale was really a comparable property. And with all the AVMs, BPOs, desk top appraisals, etc looming on the horizon--appraisers need to provide reports that are so superior to those products that a client will not even consider them. And opt for a licensed or certifiec appraiser to at least look at the exterior of the property. Other wise, Fannie Mae is right, why bother with an appraisal. So produce work that is of value to the client in making an informed lending decision. And do not just be a form filler!! :!:

 

[Francois K. Gregoire]

Will:

Check with your board - or DON"T - ignorance may be bliss.

And if it ain't broke, don't fix it. You are sort of 'grandfathered' in my opinion.

Different MLS Boards have different rules, unfortunately there is no one set across the country and some areas like ours have vastly different rules for the different boards and areas we cover!

I usually inform lenders that we cannnot provide them with actual listing sheets, but am willing to give them whatever data they desire... pain in the rear, but so it goes... Usually it is only an REO issue. and usually they just go away.

Regards!

Lee Ann, Will and Others,

Although MLS Rules and Regulations vary from Board to Board and MLS to MLS, there are some constants. The National Association of REALTORS publishes 'Model Bylaws for Providing MLS', Model Bylaws for MLS Corporations' and 'Model Rules and Regulations'.

There is only a certain amount of deviation allowed from the 'Models' if the Associations and the MLS's want to be eligible for NAR sponsored E & O Insurance.

Here are the pertinent sections from the 'Model Rules and Regulations'

Section 12.1—Display: Participants and those persons affiliated as licensees with such Participants shall be permitted to display the MLS compilation to prospective purchasers only in conjunction with their ordinary business activities of attempting to locate ready, willing, and able buyers for the properties described in said MLS compilation.

Option #1

Section 12.2—Reproduction: Participants or their affiliated licensees shall not reproduce any MLS compilation or any portion thereof, except in the following limited circumstances.

Participants or their affiliated licensees may reproduce from the MLS compilation and distribute to prospective purchasers a reasonable* number of single copies of property listing data contained in the MLS compilation which relate to any properties in which the prospective purchasers are or may, in the judgment of the Participant or their affiliated licensees, be interested.

*It is intended that the Participant be permitted to provide prospective purchasers with listing data relating to properties which the prospective purchaser has a bona fide interest in purchasing or in which the Participant is seeking to promote interest. The term reasonable, as used herein, should therefore be construed to permit only limited reproduction of property listing data intended to facilitate the prospective purchaser's decision-making process in the consideration of a purchase. Factors which shall be considered in deciding whether the reproductions made are consistent with this intent and thus reasonable in number, shall include, but are not limited to, the total number of listings in the MLS compilation, how closely the types of properties contained in such listings accord with the prospective purchaser's expressed desires and ability to purchase, whether the reproductions were made on a selective basis, and whether the type of properties contained in the property listing data is consistent with a normal itinerary of properties which would be shown to the prospective purchaser.

Reproductions made in accordance with this rule shall be prepared in such a fashion that the property
listing data of properties other than that in which the prospective purchaser has expressed interest, or in which the Participant or the affiliated licensees are seeking to promote interest, does not appear on such reproduction.

Nothing contained herein shall be construed to preclude any Participant from utilizing, displaying, distributing, or reproducing property listing sheets or other compilations of data pertaining exclusively to properties currently listed for sale with the Participant.

Any MLS information, whether provided in written or printed form, provided electronically, or provided in any other form or format, is provided for the exclusive use of the Participant and those licensees affiliated with the Participant who are authorized to have access to such information. Such information may not be transmitted, retransmitted, or provided in any manner to any unauthorized individual, office, or firm.

None of the foregoing shall be construed to prevent any individual legitimately in possession of current listing information, sold information, comparables, or statistical information from utilizing such information to support an estimate of value on a particular property for a particular client. However, only such information that a Board or Board-owned Multiple Listing Service has deemed to be nonconfidential and necessary to support the estimate of value may be reproduced and attached to the report as supporting documentation. Any other use of such information is unauthorized and prohibited by these rules and regulations.

Option #2

Section 12.2—Reproduction: Participants or their affiliated licensees shall not reproduce any MLS compilation or any portion thereof, except in the following limited circumstances.

Participants or their affiliated licensees may reproduce from the MLS compilation and distribute to prospective purchasers a reasonable** number of single copies of property listing data contained in the MLS compilation which relate to any properties in which the prospective purchasers are or may, in the judgment of the Participants or their affiliated licensees, be interested.

**Refer to Footnote #2, Page 15-10.

Nothing contained herein shall be construed to preclude any Participant from utilizing, displaying, distributing, or reproducing property listing sheets or other compilations of data pertaining exclusively to properties currently listed for sale with the Participant.

Any MLS information, whether provided in written or printed form, provided electronically, or provided in any other form or format, is provided for the exclusive use of the Participant and those licensees affiliated with the Participant who are authorized to have access to such information. Such information may not be transmitted, retransmitted, or provided in any manner to any unauthorized individual, office, or firm.

None of the foregoing shall be construed to prevent any individual legitimately in possession of current listing information, sold information, comparables, or statistical information from utilizing such information to support an estimate of value on a particular property for a particular client. However, only such information that a Board or Board-owned Multiple Listing Service has deemed to be nonconfidential and necessary to support the estimate of value may be reproduced and attached to the report as supporting documentation. Any other use of such information is unauthorized and prohibited by these rules and regulations.

Option #3

Section 12.2—Reproduction: Participants or their affiliated licensees shall not, under any circumstances, reproduce any MLS compilation or any portion thereof.

Nothing contained herein shall be construed to preclude any Participant from utilizing, displaying, distributing, or reproducing property listing sheets or other compilations of data pertaining exclusively to properties currently listed for sale with the Participant.

Note: Concerning Section 12.2, Member Boards are advised to select one rule from the three (3) alternatives that are presented as Options 1, 2, and 3, taking into consideration any policy that may have been established or any recommendations or suggestions from the appropriate State Association, as well as the needs and practices of the local Member Board.

Suggest you take a look at your MLS Rules and Regulations to see if there is a limitation on the Reproduction and Distribution of the information if you are REALLY concerned.

 

[Farm Gal]

Frank, perhaps if I cut excess verbage it would more clear: I believe we said the same thing:

Check with your board.

Different MLS Boards have different rules

Emphasis on the word suggested: many 'boards' in my area consist of handwritten sheets shared between member Realtors®, who quite decently provide them to any licensed appraiser who asks nicely and doesn't mess up the three ring binders in which they are contained.

Any MLS information, whether provided in written or printed form, provided electronically, or provided in any other form or format, is provided for the exclusive use of the Participant and those licensees affiliated with the Participant who are authorized to have access to such information. Such information may not be transmitted, retransmitted, or provided in any manner to any unauthorized individual, office, or firm.

Technically, if the written local board rules do prohibit: this means is it not permissable for appraisers to pass listing sheets as comparable data, NOR to disseminate any of the information contained there-in to any other licensed or certified appraiser (eg. commentray on interior condition, presence of seller participation, which just happened NOT to make it to the county tax assessor records, or any other non-primary data about the sale).

"None of the foregoing shall be construed to prevent any individual legitimately in possession of current listing information, sold information, comparables, or statistical information from utilizing such information to support an estimate of value on a particular property for a particular client.

"Legitimately" becomes a sticky issue: I personally am going to hope that if it ever came to court that the practice of professional reciprocity, and what lies in the banking industry and public's best interest would hold more sway with the judge than 'the rules' as interpreted by a individual lawyer out to get an individual appraiser.

However, only such information that a Board or Board-owned Multiple Listing Service has deemed to be nonconfidential and necessary to support the estimate of value may be reproduced and attached to the report as supporting documentation. Any other use of such information is unauthorized and prohibited by these rules and regulations.

My personal take is that lender clients do NOT have an across the board need for all of this data, and that if they are not trusting of my professional ability to disseminate the NEEDED as oposed to wanted data they desire, they need to hire a different appraiser.

I will not support AVM development any more than I have to.
Personally I think it bad practice to provide MLS sheets reagardless of from whence I receive them.

Section 12.2—Reproduction: Participants or their affiliated licensees shall not, under any circumstances, reproduce any MLS compilation or any portion thereof.

Under a strictly written board rule, this effectively prohibits the development of an appraisal which uses ANY MLS data.

Note: Concerning Section 12.2, Member Boards are advised to select one rule from the three (3) alternatives that are presented as Options 1, 2, and 3, taking into consideration any policy that may have been established or any recommendations or suggestions from the appropriate State Association, as well as the needs and practices of the local Member Board.

"advised" "suggested" and mostly never fully developed....
One would hope that this final phrase would hold sway. I think that despite the increasing formality and insistance of the legal nitpickers of the world, that boards which have less formal practices would permit in the greater public interest for appraisers to share data from overlapping boards and proceed with the business of doing thier jobs.

This is not to say that one should not participate in legal practice of ones profession, but how many of the local sweatshops in your area have every one of their personell as active dues paying participants?

Regards!
Lee Ann

 

[airphoto]

LeeAnn, et al ..

My two cents, for what it's worth:

1. The MLS's and Realtors know what we're doing with this information.

2. The MLS's and local Boards allow appraisers membership in their MLS's and Boards ..

3. Any legal system is going to go forward from allowing membership, with full knowledge of the reason for the appraiser's membership, and his/her use of the data for the common good of both the realtors/MLS's/appraisers and construct that this information is provided with full knowledge by the MLS/Board and does not violate any form of confidentiality in the form in which the appraiser commonly uses it.

4. Agreed .. don't provide the actual MLS print-out!

5. I would think that to find against the appraiser would leave the local MLS/Board open to a charge of taking the membership fees under false pretenses. Cannot have it both ways!

 

[jtrotta]

OK, lets assume the MLS data can be used wherever & however you like - if you do not verify it at town hall, you could be in a compromising situation :? - if you send it along or do not verify the accuracy - if you get elected to show up in a court room do you think they may use this against you 8O
If you use the MLS information; send it along inclusive of your report and any of it is inaccurate, you can not go after anyone (in our area there is a phrase they insert- "the information contained herein is deemed reliable, but not guaranteed") take that into the court room and see what good it does :lol:

Good Luck