Articles on: Compliance

Unacceptable Use Cases of MLS Data For Vendors

MLS data is specifically authorized for use by its members within their real estate businesses. While vendors may develop products or services that utilize MLS data for the benefit of these members, the data can not be integrated as a core component of the vendor's primary business or services. Essentially, vendors are permitted to support member activities with MLS data, but cannot use this data as a central element of their own business operations.

To better understand this it's important to consider the perspective of the MLS and its members:

The MLS exists to offer valuable data that empowers its members—real estate agents, brokers, and their offices. They depend on this exclusive data to gain a competitive edge.
If vendors could freely integrate MLS data as a core part of their business operations or share it with non-members, it would dilute the value of MLS membership, which members pay to access.
MLS organizations need to maintain strong trust relationships with their members. They enforce these rules to protect members from unauthorized data use and potential business competition.


Unacceptable Use Cases



General Marketplaces:

A vendor cannot create a general-purpose real estate marketplace using MLS data.

Direct Consumer Access:

Vendors shouldn't provide public-facing applications that offer detailed property information from MLS data as a core feature. This would breach the agreement because it effectively becomes a competing service.

Data Services For Non-Members:

Vendors cannot distribute data, reports, analyses, or insights generated from MLS data to entities outside of the MLS membership base. For instance, providing detailed market reports to financial institutions or other third parties without MLS membership would breach these guidelines.

Key Takeaway



The overarching principle is that vendors must support MLS members in their specific business activities while ensuring the use of MLS data does not directly compete with the services offered by the MLS or undermine its business model. Members should retain control over how this data is shared and leveraged within the industry.

Updated on: 29/11/2024

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