While it seems to be called by a variety of names, for this article, we will refer to it as “syndication.” Most traditionally, syndication is the automated process of pulling information from the Multiple Listing Service (MLS) data or from a broker and displaying it to the public on third party websites. Syndication is basically the sharing of the broker’s listing information beyond the MLS and the company or agent’s personal website. 

Listing syndication provides companies the ability to advertise their listings to consumers well beyond the local MLS, which is a great marketing benefit. However over the course of the last year, a conversation about the quality of information being posted on sites has come into question. 

Let’s begin with defining the players. The syndicator is the third party that is receiving the information from the MLS, broker or agent, such as ListHub or Point2. The information is the content that the MLS, broker or agent is providing to the syndicator. And a publisher is a third party that the syndicator has entered into an agreement with to resyndicate the information. 

Essentially listing syndication is a data license. Simply stated, this data license is entered into by the MLS, broker or agent with the syndicator agreeing to allow the syndicator to display that listing information for consumers to see. 

Traditionally the MLS provides the information to the syndicator through a data license agreement which commonly does not permit the syndicator to resyndicate. Often each MLS provides a list of syndicators that the broker may choose from to syndicate their information. The broker may choose all of the MLS provided syndicators, some or possibly none. Most commonly, when the information is being provided by the MLS to these syndicators, the information is most accurate. Because the MLS is the provider of the information to the syndicator and the MLS is informed by the company if the listing is modified, terminated or expired, the MLS will be providing the most accurate information relating to that listing. 

The goal of this article is to highlight some of the consequences of entering into syndication agreements beyond those of the MLS. Of course, this presumes that company policy permits agents to enter into separate syndication agreements.

Agents should first look to their company policy to see if syndication agreements are permissible. If the company policy does not specifically address syndication agreements, then the agent may wish to speak to their supervising broker as syndication agreements separate from MLS are a fairly recent phenomenon and the company policy may not yet have been modified. For brokers that have not updated their company policy to address syndication, now may be the time. 

Another way to look at listing syndication is to treat it as a data license. Simply stated, this data license is entered into by the MLS, broker or agent, with the syndicator agreeing to display that listing information for consumers to see. 

Firms may enter into their own separate data license agreements but cannot include the information of other companies as part of that agreement. The firm may choose to prohibit an agent of their company from entering into a syndication agreement. If the firm wishes to enter into its own syndication agreement or permits an agent to enter into a syndication agreement, there are a couple of items to keep in mind when reviewing and entering into the data license agreement. All data license agreements are not created equally and should be treated accordingly. 

A data license agreement should provide the MLS, broker or agent the opportunity to set the parameters for the syndication. For example, the syndication agreement would allow the broker to remain in custody of the listing content during the term of the listing, and when the agreement expires, the provider agrees to purge the data from its site. 

Like any contract, the devil is in the details, and when in doubt ask for clarification before signing. Below are just 10 details to consider: 

1. Read the fine print.
2. Determine what information to be provided. 
3. Limitations, if any, with that information.
4. Permission to resyndicate the information. 
5. Rights after the listing expires, terminates or sells.
6. Security of the information.
7. Content that is distributed for consumer viewing. 
8. Frequency of picking up the information feed.
9. Term of the agreement, and if an automatic renewal included.
10. Termination rights. 

There is one last item to mention: inaccurate information. Inaccurate information is being provided to consumers and has started to create a buzz in the real estate community. The common and frequent incidence most often occurs when sites pull information without permission from syndicators or MLS, and do not update the information regularly or at all. Aside from not having permission to publish this information, which means a cease and desist letter will be sent by your attorney, consumers are coming across this inaccurate information, which creates a great deal of confusion. 

Another way this is occurring is through resyndication. Does the syndicator have the ability at their pleasure to resyndicate the information to a third party or publisher? If so, what consequence may that have for the firm? One of the biggest issues in this scenario is trying to figure out the terms of the agreement between the syndicator and the publisher as well as if the publisher can sell your information to another publisher. If so, how does the agent control the quality of the information, and if the agent discovers inaccurate information, how does the agent go about getting that information corrected? Lastly, does the broker have any rights relating to that publisher’s content? 

Philosophically this issue of published inaccurate information does present a few questions, such as:  

• If we know that the consumer is receiving inaccurate information that can easily be corrected by a conversation with the agent, what is the harm? 
• Is all press good press? 
• Are there legal consequences, if any? 

Wisconsin has administrative rules and statutes relating to advertising, and the REALTOR^® Code of Ethics Article 12 addresses presenting a true picture in advertisements and representations to the public. I leave you with one last question to consider. 

Do you know where your listings are? 

Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA.