Why is Redfin allowed to publish the Last Sold Prices in non-disclosure states? (RE agent, appraiser)
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I recently bought a home in Austin & am peeved that Redfin publicly posted my sale price since TX is a non-disclosure state. Zillow, Trulia, etc do not for what it's worth...
I know a few realtors frequent this board so hopefully someone can shine some light on the subject. Thanks!
Non disclosure simply means the price isn't reported to the register of deed or assessor's office in the county when a sale is made. There are circumstances under which the information can be shared.
Last edited by carolinadawg2; 04-17-2015 at 11:50 AM..
I actually have pursued this course of action! But I have come to a dead end, was hoping someone with more knowledge could shed some light on the subject
Here's what I did so far...
(1) I asked Redfin. They said they publish whatever comes through the ACTRIS MLS and to contact them. Ok, cool
(2) So I contacted ACTRIS and they told me to contact the MLS :eyeroll:
(3) Then I contacted the MLS & someone got back to me to say that Redfin is a Realtor VOW (Virtual Office Website) which is a little different from the other publisher sites & the Department of Justice requires the MLS to allow VOWs to use their information
I don't really understand why it's OK for VOW sites to make this type of information public in a non-disclosure state though. Is this a federal ruling vs. states rights type of thing? I tried to Google for an answer but came up short
Anyone in the real estate industry able to explain?
Non disclosure simply means the price isn't reported to the register of deed or assessor's office in the county when a sale is made. It doesn't mean its illegal to make it public.
VOW's are a technology that were supposed to allow online brokerages, like Redfin, be able to compete and not be forced into old ways of doing things. Clients were supposed to be allowed access to get CMA's and other data that agents normally run for their clients when they are looking at buying homes. That is the purpose of a VOW site.
So Redfin just makes people sign in for an account to get sold data, but you aren't a client of Redfin in the way that it was intended with the VOW policy. Since the DOJ was looking at MLSs for anti-trust issues, they kind of let Redfin do their thing, I think.
It isn't an issue in most states since that information gets recorded and is public, but you really need TexasHorseLady or FalconHeadWest to weigh in since they are agents in Texas.
I actually have pursued this course of action! But I have come to a dead end, was hoping someone with more knowledge could shed some light on the subject
Here's what I did so far...
(1) I asked Redfin. They said they publish whatever comes through the ACTRIS MLS and to contact them. Ok, cool
(2) So I contacted ACTRIS and they told me to contact the MLS :eyeroll:
(3) Then I contacted the MLS & someone got back to me to say that Redfin is a Realtor VOW (Virtual Office Website) which is a little different from the other publisher sites & the Department of Justice requires the MLS to allow VOWs to use their information
I don't really understand why it's OK for VOW sites to make this type of information public in a non-disclosure state though. Is this a federal ruling vs. states rights type of thing? I tried to Google for an answer but came up short
Anyone in the real estate industry able to explain?
"There is a critical sentence in the listing agreement in Broker Authority Section 11 D. 7 that allows Realtors to disclose your private information (protected by law) to the MLS. This section of the contract outlines the authority the Broker has as your agent.
Here is how it reads:
“ … disclose the sales price and terms of the sale to other brokers, appraisers, or other real estate professionals.”"
I would assume Redfin is, as a "VOW", considered a "real estate professional". You might want to check your agreement and see if it matches that.
I was slightly wrong there...there are limitations on the sharing of the information, see my post above for clarification. I'm still not sure there are actually any criminal or civil penalties for sharing the information outside of the authorized limits.
Last edited by carolinadawg2; 04-17-2015 at 12:05 PM..
It's because they're a Broker and not just a third party website buying information. Look at Realty Austin's website. They've decided to copy Redfin even with all the back-lash. Monkey see, monkey do even if it's not for the better of the clients.
By the end of the year, you're going to have many more brokerages posting this information also, just to compete. It's totally and completely wrong!
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