Sun 13 Aug 2006
REALTOR® with a capital “R”
Posted by Marlow Harris under Real Estate
Do you know why the term “REALTOR®” is capitalized? It is because REALTOR® is a registered trademark of the National Association of REALTORS (NAR). (r)ealtor is NOT proper use of the REALTOR® registered trademark NOR is it appropriate to use it as a generic term when you mean a real estate agent.
Why is this important? Because there is a lawyer named David Barry who filed suit in 1998 to cancel NAR’s trademarks for the terms “Realtor”, “Realtors” and “REALTORS®”. He lost, but he’s still making waves and filing suits today. His latest endeaver is to start an independant Multiple Listing Service in the U.S. He has an organization, The Open MLS Institute which appears to be masquerading as a non-profit organization, but is actually funded by several real estate companies who want to use copywrited listings for their own profit.
Barry’s main arguments for an open MLS appear to be ethical, yet most of the ethics situations he sites are clear violations of the National Association of Realtors Code of Ethics. It seems like most of the ethics violations he cites could be taken care of by requiring membership in the NAR (hence bringing real estate agents under the jurisdiction of a Code of Ethics), yet in the past, Barry has sued to do away with some state real estate boards requirements that MLS members belong to the National Association of Realtors.
What is David Barry’s true goal? Some may say that his goal is not ethics or reform, but destroying the NAR and the privately-owned MLS’s so companies that do not share these goals, or, in some cases, even actively participate in the buying and selling of real estate, can use the privately held data (listings) for their own benefit and profit.
It has been interesting to watch Mr. Barry, and he’s someone to keep an eye on.
9 Responses to “ REALTOR® with a capital “R” ”
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August 18th, 2006 at 10:13 am[...] My definition of Pandora’s Box is the one one that attributes “the box” to a “woman’s womb” from which new life springs forth. While I do not necessarily agree with Inman’s new three part series on negating the mls offering started yesterday, or all of David Barry’s undertakings around the country, clearly I am not the only one trying to pry open Pandora’s Box. The box WILL be opened! Whether the DOJ or David Barry choose in the end to take the ultimate credit, truth is, it is just simply time for the box to be broken open by everyone at once. [...]
August 16th, 2006 at 4:55 pm
While Mr. Barry’s ultimate motives may be suspect, his argument is correct. As both a member and competitor of the NAR, I have had my problems with that organization. I gave up my membership in the NAR several years after the Homestore debacle. Wanting access to the MLS now, I was forced to become a member once again.
There is nothing wrong with competition. Brokers should have a choice with MLS’s just as we now have a choice which phone company we use or which company we get electric power from.
August 16th, 2006 at 5:38 pm
I agree that making NAR membership mandatory for MLS participation is problematic. No one should be forced to join a union or professional organization. However, if one reaps the benefits from that union or professional organizations political efforts, and then declines membership, that is also a problem.
I believe a real estate agent should not be forced to join the NAR, but I understand why an MLS may want to make that mandatory. It’s difficult to legislate ethics, as we all know. Better to make membership optional and hope that members will see the benefits and join for themselves. After all, membership in a professional organization is one of the key qualifiers when establishing an individuals “professional” status. Without membership in a professional organziation, one can hardly be considered a professional!
August 21st, 2006 at 11:47 pm
I think the NAR is a wonderful organization for real estate agents who are Realtors. They do more than just collect money from their members.
There are many sites online trying to provide info to homebuyers and sellers. The top real estate site is Realtor.com. This is where all the listings are listed. Why settle for second best?
You can search trulia, craigslist, msn live, etc…but your only getting whats posted by real estate agents. Why even bother? Realtor.com has it all. If your looking for fsbo, foreclosures, etc… try foreclosure.com
August 25th, 2006 at 5:16 am
there is nothing wrong with competition as long as it a good competition.. NAR is doing a great job..
September 3rd, 2006 at 7:17 am
“You can search trulia, craigslist, msn live, etc…but your only getting whats posted by real estate agents. Why even bother? Realtor.com has it all. If your looking for fsbo, foreclosures, etc… try foreclosure.co”
Often, these sites offer additional information, such as the number of days on the market, which the NAR, in its infinite wisdom, will fight tooth and nail to hide. Realtor.com is limited to the information the NAR wants buyers to see. This is inefficient and actually a disservice to buyers. Information is a powerful thing. Why can’t the NAR understand that the market is changing; consumers will drive the market and are increasingly demanding more information. Why not adapt to the changing market? There’s plenty ‘o profit for everyone
September 3rd, 2006 at 8:24 am
I agree that perhaps it is a disservice to Buyers if they do not know how long a house has been on the market, but SELLERS are often clients too. They should have the opportunity to have their homes marketed to their advantage. There are two sides to everything, my friend.
September 8th, 2006 at 3:24 pm
“SELLERS are often clients too. They should have the opportunity to have their homes marketed to their advantage. There are two sides to everything, my friend.”
Thank you Marlowe for reminding people that there are two parties involved here. Great post as usual.
October 3rd, 2008 at 7:30 am
I agree Realtor should not be able to be trademarked, because the public believes it to be a term to describe the profession and not a trade organization. They should lose this trademark. NAR membership shouldn’t be required and I see the benefits as very minimal. They offer various things that most people never use and for all the money I pay every year I don’t know what I really see in return. Each MLS can have their own code of ethics so that is a weak argument