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Privacy and The Real Estate Process

August 27 2013

realtrends privacy re"People who use web-based email today cannot be surprised if their emails are processed by the recipient's [e-mail provider] in the course of delivery. Indeed, 'a person has no legitimate expectation of privacy in information he voluntarily turns over to third parties.' "- Google lawyers in a June 2013 court filing

Privacy: "the right to be let alone" Louis Brandeis, citing Judge Thomas Cooley, described in an 1890 paper (cowritten with Samuel D. Warren).

The real estate process includes numerous privacy oriented policies, from MLS and Association agreements to disclosure documents, franchise fees, rebates and agent compensation practices. Consider three examples that illuminate the growing concerns in and around personal and professional privacy.

1. MLS agreements that assert control and require brokers to cede ownership over broker created listing data. Certain multiple listing service agreements assert ownership over broker created listing data. This means the data brokers enter into an MLS system may be "owned" by the MLS. Conflicts have arisen when the MLS transmits broker created data (sometimes with and without compensation) to third parties that may offer conflicting services with the originating broker, such as national aggregators.

What you can do: Brokers should be pro-active in formulating MLS terms and conditions that support their business model(s).

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