Please Note:
The Questions and Answers below address calREDD™ as
a Business Entity and are not application specific.
Questions about the proposed calREDD® MLMRS merger
Questions about MLS (calREDD™)
Why is a statewide MLS (calREDD™)
being created by C.A.R.?
calREDD™ has been created by C.A.R. in response to
member demand and frustration with the current MLS environment
in California. C.A.R. has heard repeatedly from its members that
the current MLS environment is technologically outdated, inefficient,
and too costly and does not adequately support the members
in serving the needs of their clients and businesses
When will calREDD™ be
available?
Several local associations of REALTORS® (AORs) have
already signed on to deliver calREDD™ services. Early adopters are
expected to begin utilizing the calREDD™ system early this summer.
What is the vision for calREDD™?
To provide California REALTORS® with
one complete and innovative property information and MLS solution
so that California REALTORS® are the source for all
California real property information.
What are some
of the key advantages of calREDD™?
-
The calREDD™ system will introduce much-needed efficiencies,
increased security, and new technology opportunities through
the creation of one common database of California real property
information.
-
Control of the MLS will stay within the hands of California
REALTORS®. Every participating local association
of REALTORS® (AOR) and MLS has voting rights
and the board of directors of C.A.R. retains ultimate control
of calREDD™.
-
The scale, reputation, and resources of C.A.R. afford calREDD™
unique opportunities, including the ability to attract the
development of world-class technologies.
-
The calREDD™ services will be delivered through participating
AORs and MLSs and participants and subscribers will be able
to join through any participating AOR or MLS.
What kind of features can
California REALTORS® expect to see with calREDD™?
The calREDD™ system will consist of one database
for California REALTORS ® (and other users) to input
and search all California real property, regardless of property location,
type, or status. Some of the features will include:
- One database constructed on an open API to open the door to more
options and innovation in user interfaces (the front-end look
and feel of the software) from a variety of vendors.
- Choice of user interface will give system users new
control over their MLS experience.
- Users will be able to more easily create custom applications.
- One Internet Data Exchange (IDX) feed for IDX and VOW Web sites,
without having to reconcile listing data from multiple sources.
- One set of rules.
- One MLS orientation.
- One MLS to input and search listings.
- One MLS participation membership through the AOR or MLS of their
choice.
- One source for all real property information (“property-centric”),
regardless of the property’s status or location within California.
- World-class technology solutions commonly available in consumer
applications.
- Neutral browser and platform so that the system may be accessed
with each individual user's browser and system of choice.
What do you mean when
you say that calREDD™ will be “property-centric”?
Traditional MLSs contain real property records limited
to those currently listed, and historical records of prior listings.
The focus of the MLS has been to facilitate offers of compensation
and empower users to perform real property searches and valuations.
The calREDD™ vision expands this structure to capture all
California real property records regardless of status. Imagine a
database accessible to all California REALTORS® that
contains every piece of real property with volumes of rich detail
associated with each property. This vision won't happen overnight,
but it will happen, and we think that California REALTORS®,
through calREDD™, should be the ones to make it happen.
Won’t the creation
of a statewide MLS result in fewer choices for California REALTORS®?
No. The creation of a statewide MLS is anticipated
to significantly increase the choices for California REALTORS ® with:
- More service options with the ability to join the statewide
MLS through any participating association of REALTORS® or
MLS.
- More technology options and increased MLS innovation due to an
open API system.
- A modern cutting-edge technology platform that when coupled with
the scale of one statewide database will attract even more technology
options.
Where will I go for calREDD™ services?
The calREDD™ system will be offered and serviced
through participating AORs/MLSs. C.A.R. has a long history of working
with local associations of REALTORS® to deliver products
and services to California REALTORS®. AORs/MLSs are
well positioned to be the initial point of contact for delivery of
the calREDD™
service. Participants and subscribers may join calREDD™ through
any participating AOR/MLS, and only will have to join once to access
all participating areas, rather than each one separately.
What vendor has been selected
for calREDD™?
The calREDD™ system will involve multiple vendors
to ensure that California REALTORS ® have the best
technology choices available. Our vendor, Concentric Software, offers
an exciting and new user interface. Demonstrations of calREDD™,
powered by Concentric Software, have been received with great excitement.
Several AORs are already beta testing the new system and the initial
AORs will "go live" with calREDD™ this summer
The calREDD™ system will be uniquely positioned
to use its size, scale, and reputation to require new and exciting
innovation, reliability, scalability and efficiencies from its technology
partners. Ongoing review of new and emerging technologies will continue
as we work toward the vision of calREDD™ to create a world-class
property information solution that provides California REALTORS ® with
many long-awaited technology innovations and efficiencies.
What kind of technical support
and customer service will calREDD™
offer?
calREDD™ is committed to ensuring that existing
levels of technical support and customer service will be met or exceeded.
Many local AORs and MLSs already provide top-notch support and service,
and will continue to do so. For those who cannot or choose not to
provide support and/or service for calREDD™, alternatives will be
available.
What will calREDD™ cost?
The calREDD™ services will be offered at a wholesale
price to participating AORs/MLSs. The wholesale cost of the system
is anticipated to be at, or much lower, than current wholesale costs
paid by AORs/MLSs. Of course, participating AORs/MLSs will need to
add their own costs to the wholesale cost (customer service, technical
support, add-on technologies, rules enforcement, etc.) to reach a
retail price. Each participating AOR/MLS will be free to set its
own price for the calREDD™ system and any related add-on products
and services.
Will calREDD™ limit
the number of photos that can be entered for a particular listing?
No limit on the number of photos is anticipated.
Will I be required to use
a particular browser or operating system in order to access calREDD™?
No. calREDD™ requires its technologies partners
to be platform- and browser-neutral so that users may access the
system utilizing the tools that they prefer.
Will participating in calREDD™ result
in a loss of local field options and descriptions?
The inclusion of local field options within calREDD™
is a priority. In addition, intelligent search technology,
as is used in many consumer search sites, may provide a solution
and allow greater flexibility in the use of local terminology without
sacrificing search results.
Will participating in calREDD™ save
individual participants and subscribers money?
Each participating AOR/MLS will determine its own retail
price for calREDD™ services. However, MLS vendor costs should
be lower with widespread participation in calREDD™. In addition,
participants and subscribers only will need to join calREDD™ once
and may choose to participate through any participating AOR/MLS in
the state. Other efficiencies also may lead to lower costs for participants
and subscribers, such as reduced technology costs associated with
reconciling listing information from multiple MLSs. For those who
are joining multiple MLSs now, there definitely should be savings
if all those MLSs participate.
For those who only belong to one MLS, the result should be the same
or lower costs with superior technology and statewide exposure for
listings and statewide access to data.
May a subscriber (agent)
join calREDD™ through an AOR/regional MLS other than the
one joined by the subscriber’s broker (participant)?
Yes. Participants and subscribers may join calREDD™
through different participating AORs/MLSs. As long as a subscriber’s
broker (participant) has joined calREDD™ anywhere in the state,
the subscriber also may join calREDD™ through any participating
AOR/MLS in the state.
Will my local AOR or regional
MLS have its own MLS rules?
No. Participation in calREDD™ will require uniform
rules and uniform rules enforcement. The rules include a citation
policy and fine schedule. Local AORs/MLSs will be free to adopt local
marketing meeting and caravan requirements as those services will
not be provided by calREDD™. To view the current calREDD™
rules,
click
here.
How will the calREDD™ MLS
rules be enforced?
Participating AORs/MLSs will receive complaints, initiate
citations, and hold initial hearings (rules violations and arbitrations)
locally. Appeals will go to a specially trained panel pulled from
a pool of panelists made up of REALTORS® from all
areas of the state.
How will jurisdiction to
enforce the calREDD™ MLS rules and to arbitrate disputes
be handled?
Participating AORs/MLSs will have jurisdiction to enforce
the calREDD™ rules (file complaints, initiate citations, and
hold hearings) for participants and subscribers who access calREDD™
through them. Arbitrations involving disputes between participants
who access calREDD™ through different participating AORs/MLSs
will be heard at any participating AOR/MLS within a 50-mile radius
of the property at issue or at C.A.R. under the C.A.R. Interboard
Arbitration Rules. Further enforcement rules will be detailed in
the California Code of Ethics, calREDD™ Rules and Arbitration
Manual.
How is calREDD™ structured?
The calREDD™ brand operates under the corporate
structure of California MLS, Inc., a non-profit mutual benefit
corporation. The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
is the sole member of California MLS, Inc., with no right to payment
of dividends. The California MLS, Inc. is governed by a 17-member
board of directors. The initial board of directors is made up of
a diverse group of California REALTORS® strategically
selected to represent the different geographic, firm affiliations,
firm sizes, and practice areas of California’s REALTORS®.
Although the California MLS, Inc. board of directors has been structured
as an autonomous body, ultimate control of California MLS, Inc.
resides with C.A.R. In addition, participating AORs/MLSs are provided
with significant voting rights.
Our association of REALTORS® participates
in a regional MLS and intends to continue to provide MLS services
through the regional MLS. May our association also participate
in calREDD™?
Yes, participating AORs/MLSs will be able to join calREDD™ through
one of two options:
- Use of calREDD™ as its sole MLS system (primary option);
OR
- Use of calREDD™ as a duplicate MLS system (hybrid option).
Under the hybrid option, the participating AOR/MLS
will utilize calREDD™ as a duplicate system and feed data from
its current system into the calREDD™ system. Although participating
under the hybrid option shares some of the benefits of the primary
option (one set of rules, uniform enforcement, one orientation, and
access to statewide system), participating under the hybrid option
is likely to increase vendor costs and therefore is generally less
efficient and provides less savings on vendor costs. Additionally,
this structure may impede access to the new technologies expected
to be available to the user. For this reason, those AORs/MLSs that
begin under the hybrid option eventually may elect to participate
directly under the primary option. Q. How do existing large
regional MLS data sharing and collabortive efforts differ from
calREDD™?Although several regional MLSs have attempted to create
a statewide MLS, either alone or in concert with others, these are
good steps but do not have the long-term vision of a true statewide
MLS, nor have they achieved it. The calREDD™ technology and long-term
vision is to allow choice, both of agent and broker, and to remove
technology redundancies that do not add value and to use the advanced
tools that are fast and platform-neutral. However, many regional
collaboration efforts have made great strides and calREDD™ hopes to
build on those efforts and work cooperatively with existing regional
MLSs to expedite the creation of one statewide MLS for California.
Will this make my local AOR
go out of business?Local AORs will continue to play a critical role in
delivering MLS services, and calREDD™ will be accessed through
participating AORs/MLSs. The cost of calREDD™ to participating
AORs/MLSs is anticipated to be no more, and likely less, than those
of their current vendor. However, AORs may lose revenue from cross-over
or duplicate MLS fees from other areas. If the vendor costs provided
by calREDD™ are significantly less than current fees, then
these may cancel each other out. In addition, some areas may experience
increased competition for participants and subscribers and will be
challenged to provide better services at competitive prices. Local
AORs will need to price dues and MLS fees to cover their local operational
costs. These will be managed, as they are currently, by local boards
of directors, budget and finance committees, and local staff.
How will participating
local associations of REALTORS® and regional MLSs provide
input?
Liaison groups and forums will be established to receive
input and create venues for items of discussion, including issues
such as rules, enforcement, and technology. Participating AORs/MLSs
will serve a primary role in delivering calREDD™ and, as such,
their input will be actively sought. The primary philosophy is that
all choices are member-centric. That is, the services and prices
will benefit the members and their business interests first.
Will the active listings
in calREDD™ carry an offer of compensation to all participants
of calREDD™?
Yes. The rules applicable to offering compensation
are anticipated to remain unchanged, and all active listings will
include an unconditional offer of compensation to all other participants
of calREDD™.
Does offering commission to licensees, who
practice in an area outside the location of the property, and who
may be unfamiliar with local requirements, encourage them to breach
their duties to their clients?
Being from out of the area of the property does not change the
legal duties of agents and brokers to comply with the law. This
includes fulfilling the fiduciary duties to clients as well as
conducting careful visual inspections and fulfilling all other
duties needed in conjunction with a transaction. Most agents and
brokers recognize that real estate is a local business, requiring
knowledge of local customs, practices and laws to accomplish a
successful transaction. The Code of Ethics and MLS rules and regulations
are, and will remain, important tools to ensure compliance by all
participants and subscribers.
Will the “mandatory
submission” rules under the current C.A.R. Model MLS Rules
be mirrored in the calREDD™ Rules?
Yes. Participants/subscribers will be required to submit
all exclusive right-to-sell or exclusive agency listings on one-
to four-unit residential property and vacant lots. Exceptions will
continue to be made in situations in which a seller refuses to permit
the listing to be disseminated by the MLS. However, until calREDD™ has
started servicing all areas of the state, mandatory submission only
will be required in areas actively serviced. Areas that are actively
serviced will be clearly communicated and designated.
Will “off market” property
information be permitted for display in Internet Data Exchange
(IDX) Web sites?
Yes. The calREDD™ rules have been expanded to permit
the display of off-market (pending and sold) listing information
on IDX Web sites. This change has been made to reflect the statewide
trend toward allowing such information within IDX Web sites, the
wide availability of such information from public sources, and the
mandatory inclusion of sold listing information in Virtual Office
Web sites (VOW).
Will calREDD™ offer
a public Web site?
It is anticipated that a stand-alone consumer Web site
will be necessary to compete with the existing consumer Web sites.
MLS consumer Web sites traditionally provide more accurate information
and therefore are more attractive to the consumer. No decision on
when to create a consumer Web site and how it will function will
be made without further study and input from C.A.R. members. However,
calREDD™ will continue to feed listings, with listing broker
consent, to marketing sites that are consistent with REALTOR® interests.
Will the calREDD™ real
property database be licensed to third-party aggregators?
C.A.R. and calREDD™ firmly respect the right
of individual brokers to decide whether or not to syndicate their
listings to third-party aggregation sites. For those who elect to
syndicate their listings, calREDD™ will offer services to facilitate
that process. For example, most California brokers and agents direct
their MLS to feed listings to REALTOR.com®, and calREDD™ anticipates
doing the same.
Will calREDD™ offer
lockboxes?
Not in the initial phase. However, calREDD™ already
is studying local area and vendor differences in lockbox usage. Lockbox
usage rules have been incorporated into the calREDD™ Rules
to facilitate enforcement of lockbox requirements. In the future,
calREDD™ may be able to use its bargaining power to negotiate
better lockbox pricing and services. If calREDD™ adds lockbox
service, distribution of lockbox services is anticipated to remain
at participating AORs/MLSs. Your input on this issue is welcome and
may be directed to info@calredd.com.
Will participation in calREDD™ be
limited to REALTORS®?
No. California law does not permit REALTOR® membership
to be a requirement for participation in the MLS. However, calREDD™ and
participating AORs/MLSs may offer different levels of service to
REALTORS® than the core MLS services they deliver
to other users of the system.
Is C.A.R. qualified to
run an MLS?
Both C.A.R. and the governing structure of the California
MLS, Inc. (calREDD™) are made up almost entirely of California
REALTORS®. Ample talent is available both inside and
outside C.A.R., and all necessary resources will be utilized and/or
acquired, as appropriate, to run calREDD™, with optimal technology
and efficiency in mind. Both C.A.R. and calREDD™’s purpose and
focus is to serve the best interests of all California REALTORS®.
California REALTORS® have a 100-plus-year history
of working together to innovate the practice of California real estate,
and we are confident that they will continue to do so with calREDD™.
If our regional MLS is dissolved,
what will happen to its staff and assets?
Such decisions will be made at the local region. There
may remain valid functions and repurposing opportunities for regional
MLS staff. Some of the functions of technical support or rules enforcement
still may be done by a regional MLS. If the AORs and MLSs determine
that maintaining the regional MLS is not in the best interests of
their members, or shareholder AORs and member real estate professionals,
then the shareholder or member may elect dissolution. In that event,
shareholders or members (usually AORs) of the regional MLS would,
in most cases, receive their share of any remaining assets following
dissolution.
Will there be an upfront
cost to the local association of REALTORS®/regional
MLS to join calREDD™?
None is anticipated. Although the board of directors
of the California MLS will make ultimate pricing and services decisions,
it is not anticipated that local associations of REALTORS®/regional
MLSs will be charged an initial fee to join calREDD™.
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