R.J. Alex, WRAR president

Greater Wilmington Business Journal, Apr. 28, 2013: A nearly 6-year-old agreement allowing two regional realty associations to share property and listing information has been terminated, potentially leaving in its wake unintended consequences for area Realtors.

“I’m losing sleep over this,” said Wilmington Regional Association of Realtors (WRAR) president R.J. Alex. “This could really impact a lot of people in both associations, and hopefully, we can identify the problem and reach a solution.”

Earlier this year, the Brunswick County Association of Realtors (BCAR) board of directors voted to end its reciprocal data access agreement with WRAR.

As a result of the discontinued arrangement, members from both groups will no longer have access to each other’s multiple listing service, or MLS.

The two groups had held a reciprocal data access agreement since Aug. 14, 2007.

New Hanover, Pender and northern Brunswick counties all fall within WRAR’s MLS territory, while much of southern Brunswick – including Oak Island, Calabash and Shallotte – Bladen and Columbus counties fall within the BCAR listing service.

For Realtors working in the markets, it could become more difficult view all the available inventory on the market to show potential buyers. It may also make it more difficult properly price a home to sell and could prompt Realtors to join both associations.

The end result could prove risky for area Realtors, who must navigate the market to make sales and depend on the listing service to find available properties for their clients.

“I’ve had some brokers express concern about visibility of listings and access in our region,” said Pete Frandano, co-owner of Southport-based Southport Realty. “The Realtors at our firm and in the area are very much aware of what has happened.”

Frandano, a former BCAR board member, said a number of Realtors were concerned by the severed agreement.

“I respect both sets of board members from WRAR and BCAR, and hopefully they will come to resolution,” he said. “But I’m a free market person, and I think anytime someone gets in the way of the free market, bad things happen.”

The terminated agreement between the two associations does not affect regional commercial brokerage listings, which uses a separate listing service to market and sell office, retail, land and industrial properties in the region.

Statistics used to track residential sales, median and average home sales in the Wilmington MLS will also not be affected since southern Brunswick County stats are tracked by BCAR.

The defunct agreement also severs future compensation agreements between the agencies for properties sold in each territory and terminates shared access codes between the associations for KeyBoxes – a device that unlocks residences on the market via an electronic code administered by the group.

In a certified letter delivered to WRAR officials in February, BCAR attorneys cited “unauthorized sharing of confidential information with third parties” as a reason for terminating the agreement.

No specific examples were listed in the letter.

Officials with the Shallotte-based Bellamy, Rutenberg, Copeland, Epps, Gravely & Bowers law firm, which drafted the letter and represents the BCAR, did not return phone calls for comment.

Steve Candler, CEO of the Brunswick Realtor group, and Larry McNeill, president of the group, also did not return phone calls and emails for comment.

In an April 9 letter addressed to members, WRAR’s MLS president Jody M. Wainio said the Brunswick group was within its right to terminate its agreement with or without cause.

But she warned the changes could put brokers’ licenses at risk.

For example, if a WRAR Realtor were to access a BCAR KeyBox, it would be considered trespassing – resulting in a violation to the MLS code of ethics, according to the letter.

The same would apply for a BCAR Realtor trying to gain access to a WRAR KeyBox, which will be difficult to identify since both association’s boxes look identical.

Wainio stated in the letter that the only way WRAR members would be able to gain access to BCAR KeyBoxes was by making arrangements with a Realtor who had the property listed with the Brunswick County group and vice versa.

Other inconveniences could include a lack of access to showings, which helps Realtors schedule appointments for viewings, and causing both offices to coordinates calls to view properties – an action unnecessary had the agreement not been terminated.

Alex said WRAR board members were unaware of any problems with the agreement.

“We were all shocked,” he said. “We had no idea that they were considering such a termination … we really didn’t see it coming.”

Alex, who during his installment ceremony in January pledged to work with all area realty groups, said he was willing to talk with BCAR officials to have the agreement reinstated.

“It seems like a unilateral agreement,” Alex said of the board’s decision to dissolve its agreement with WRAR. “It’s something that was not even hinted on. We’re very surprised by the decision and are trying to find a solution on how we can resolve this matter.”

Alex said he has heard from Realtors affiliated with the Brunswick County association, saying that many of the members were upset and confused about the board of director’s decision.

“Their membership knew nothing about it,” he said.

Alex said both realty associations have in the past partnered with each other on events and training for its members. He said it’s important to continue such a partnership to promote regional cohesion and marketing of the area.

“We want to resolve this because it will become an inconvenience for their members as well as ours,” he said. “We don’t want to cause confusion or place buyers and sellers in a position that will make it harder to sell or purchase a home in the area.”

Wainio urged the groups to rescind their decision regarding KeyBoxes and to meet to resolve any issues that resulted in the board’s decision to terminate the agreement.

“It is very hard to seek reconciliation and a mutually beneficial resolution without any knowledge of the perceived offense,” Wainio’s letter stated.

“We are simply dumbfounded by the lack of willingness by BCAR’s board to afford WRAR the opportunity to clear the air by sitting down to discuss the issue that has precipitated this action and seek resolution short of severing a relationship that has benefited Realtors in both associations since 2007.”

In a letter addressed to WRAR through BCAR’s attorney’s last month, officials with the Supply-based group were, “not interested in arranging a meeting with the principals,” adding that the decisions to terminate “are final.”

Alex called the group’s tone and decision troubling.

“It’s very difficult to identify the problem if we don’t know what the problem is,” he said. “This has really caused an upheaval between Brunswick County and our membership.”