Realtor.com, NAR Agree to Partnership Changes

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After months of negotiations, the National Association of Realtors and Move Inc. reached a new agreement that will allow changes to Realtor.com, one of the most-viewed real estate site on the Internet.

Under terms of the new deal, Move, the Nasdaq-listed company operating Realtor.com, will be able to make "innovations" to the site without prior approval from NAR. The new "clarity and alignment" to the 14-year-old agreement will allow Move to "drive faster and more competitive improvements on Realtor.com," according to a press release.

But the talks also addressed aspects of Realtor.com's fundamental role in the rapidly evolving Internet listings competition. As part of the agreement, Move received consent from NAR to "syndicate listing data content in accordance with each data content provider's [MLSs and brokers] permission and instructions" -- a key point of contention, which wasn't mentioned until near the bottom of the release.

"The agreement continues to ensure certain content protections for real estate brokers in regards to property listed on Realtor.com," Dale Stinton, chief executive officer of NAR, said in the release. "In addition, and as a result of these discussions, approval provisions were added to the agreement that reflect and reaffirm both organizations' commitment to ensure that brokers and Multiple Listing Services (MLSs) remain in control of their proprietary listing data and related information that displays on Realtor.com."

Talks to renegotiate the agreement started in the spring and a mediator was eventually called in to aid the discussions, Inman News reports.

NAR owns 2.52 percent of Move's common stock and 100 percent of the company's preferred A stock, according to Move's proxy statement. NAR also has the right to elect a director to Move's board. (Elevation Partners, the venture capital firm founded by U2 frontman Bono, owns 15 percent of the common stock.)

Clearly there have been communication issues between Move and NAR, which controls the Realtor brand. One element of the agreement demands NAR and Move "commit" to regular meetings to discuss the business.

Other interesting points in the deal:

• Realtor.com won't be able to display properties that are not represented by a Realtor, ensuring that the site will stay out of the competition for FSBO (for sale by owner) listings.

• The site won't be able to generate automated valuation models, a popular feature on other sites

• Move can't add consumer reviews of agents to the "find-a-realtor" function without approval from NAR

• Move only has to give NAR 10-day notice to approve or deny changes in content on the site, and if NAR doesn't respond in time the initiative will be deemed approved.

• Move no longer needs to seek approval from NAR for the design of the home page. But the agreement calls for the Realtor.com home page to include links to NAR's new sites, Houselogic.com and Realtors Property Resource.

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