NeighborCity

Last updated
NeighborCity
Company typePrivate
IndustryReal Estate Information Services
Founded2007
FounderJonathan Cardella
Area served
 US
Key people
Jonathan Cardella, Founder and CEO, Ali Vahabzadeh, President and COO
Parent American Home Realty Network
Website www.neighborcity.com

NeighborCity was a residential real estate information and service company that rated real-estate agents in the United States, offering a way for buyers and sellers of homes to compare and evaluate agents. [1] [2] [3] [4] It was based in San Francisco.

Contents

The company rated almost every member of the National Association of Realtors in the United States, based on transaction and listing history. [3] NeighborCity analyzes agents' performance based on closing rate, number of closings, number of active listings, geographic specialization, number of days on market, rate of dual agency, sales price per square foot, and the difference between ask and sale price, for the homes they sell. [3] [5] NeighborCity provides an evaluation of the quality of service delivered by agents, with respect to their clients' interests and relative to competing real-estate agents. [3] [5]

The company also maintained a national database of real-estate listings. [3] [4] [5] The site recommended corresponding independent buy-side real estate agents next to each for-sale listing, along with a performance score and a link to a detailed professional profile for each recommended agent. [3] [4] [5]

NeighborCity ended and its assets were donated to Consumer Advocates in American Real Estate (CAARE). [6]

History

Jonathan Cardella founded NeighborCity in 2007, and he served as the company's chief executive officer. Ali Vahabzadeh was the president and chief operating officer. [7] The company is owned and operated by American Home Realty Network, Inc. (AHRN), a licensed California real estate brokerage. [1] [4] [8]

By 2018 NeighborCity's assets had been donated to the non-profit Consumer Advocates in American Real Estate (CAARE). [6] As of 2021 the NeighborCity url redirects to CAARE. [9]

Business model

NeighborCity used real-estate transaction and listing database information from national sources to construct its rankings. [1] NeighborCity received a portion of the commission earned by brokers on closed transactions that result from referrals. [2]

Lawsuits over IP rights to listing data

NAR and MLS suits

In March 2012, shortly after NeighborCity provided the public performance rankings of National Association of Realtors members, Metropolitan Regional Information Systems filed a civil lawsuit against AHRN/NeighborCity claiming copyright violations by using MLS real estate listing information to craft its realtor-rating database. [2] Northstar MLS of St. Paul, Minnesota, followed suit with similar litigation in April 2012. [8] [10]

NeighborCity alleged that the suit was brought to prevent buyers and sellers from getting accurate information about the performance of individual brokers., [8] and asserted that the lawsuits had no merit, stating that because the plaintiffs had failed to comply with requirements of the Copyright Act for copyright registration and that information for which the plaintiffs claimed ownership was not subject to copyright. [8] [11]

Initial judicial opinions in both cases addressed the issue of what is subject to copyright protection. [8] [11] The court upheld NeighborCity's claim in determining that the MLS listing data does not qualify for copyright protection because facts, including property features such as "main floor full bath" and "whirlpool," are not protectable works to which the MRIS and Northstar MLS can claim ownership; however, the court found that photographs and property descriptive texts are likely to be copyrightable. [8] [11]

In November 2013, a Maryland Federal District court found that NeighborCity "adequately alleged" a conspiracy among multiple MLSs and the National Association of Realtors. [12]

Berkshire Hathaway suit

In May 2013, Berkshire Hathaway subsidiary HomeServices of America filed a similar lawsuit against NeighborCity.com for reuse of photos from its (subsidiaries') listings without express permission. [13] NeighborCity filed a countersuit claiming anti-competitive practices. The litigation among the parties included lawsuits in federal courts in Minnesota and North Carolina. [14] HomeServices of America announced settlement of both of these lawsuits in September 2014. [15]

AgentMatch dispute

In November 2013, NeighborCity sent to realtor.com, operator of Move, Inc., a cease-and-desist letter alleging that Move's AgentMatch tool infringed on NeighborCity's trademark of the term "Agent Match" and that the tool potentially infringes on a 2010 patent application filed by NeighborCity. [16]

See also

Related Research Articles

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<i>Metropolitan Regional Information System, Inc. v. American Home Realty Network, Inc.</i>

Metro. Reg'l Info. Sys., Inc. v. Am. Home Realty Network, Inc., 722 F.3d 591 (2013)., was a United States Court of Appeals for the Fourth Circuit case in which a court held two issues:

  1. The copyright owner of a collective work, such as an automated database, was not required by a pre-suit copyright registration requirement to identify names of creators and titles of individual work.
  2. By clicking yes to the term of use and uploading photograph, is sufficient to writing component in assignment of right under 17 U.S.C. § 204

Jonathan Cardella is an entrepreneur and businessman, who is best known as Founder and Chairman of Ventive and Founder & CEO of its sister company, Strike Tax Advisory. He formerly owned Ski West, which was sold to Overstock.com and renamed Overstock Travel in 2005; he was retained as CEO. He also served as CIO of FixYa. Jonathan also founded and operated NeighborCity, as its CEO, which was an innovative real estate tech company that rated, ranked and recommended residential real estate agents to homebuyers and sellers. NorthstarMLS and Berkshire Hathaway Home Services sued NeighborCity and Cardella for allegedly violating copyright law by using Northstar MLS's and Berkshire Hathaways Home Service's real estate listing data without permission. The claims against Cardella were dismissed and all remaining claims were settled without admission of fault. NeighborCity's case was instrumental in paving the way for real estate startups and technology companies to safely utilize MLS data, while also bringing to light the alleged anti-competitive practices of the National Association of Realtors, Berkshire Hathaway Home Services, Nortstar MLS, and related MLSs.

Ben Caballero is an American entrepreneur, real estate professional, founder and CEO of HomesUSA.com. He holds the record in the Guinness World Records for real estate sales. In 2015 Caballero became the first real estate professional to exceed USD $1 billion in home sales in a single year. In 2018 he became the first real estate professional to exceed $2 billion in home sales in a single year, a threshold he surpassed again in 2019 and 2020. Between 2004 and 2021, Caballero was the real estate agent of record for approximately 48,000 property sales and $17 billion in cumulative transaction volume.

Creig Northrop is an American real estate agent and broker. He is the founder and CEO of Northop Realty, a real estate brokerage.

References

  1. 1 2 3 Carrns, Ann (May 2012). "New Battle on Providing Real Estate Agent Performance Data". The New York Times. Retrieved 17 February 2013.
  2. 1 2 3 Masnick, Mike (11 October 2012). "Fight Over Real Estate Listings Escalates As NeighborCity Counters Copyright Claims With Antitrust Accusations". TechDirt. Retrieved 17 February 2013.
  3. 1 2 3 4 5 6 "About NeighborCity". NeighborCity. Retrieved 17 February 2013.
  4. 1 2 3 4 Slind-For, Victoria (23 May 2012). "Vuitton, Facebook, NeighborCity: Intellectual Property". Bloomberg. Retrieved 17 February 2013.
  5. 1 2 3 4 Restuccia, Paul (13 May 2012). "Real estate agent ranking site rankles its neighbors". BostonHerald.com. Retrieved 17 February 2013.
  6. 1 2 "Neighborcity was a great consumer-friendly business that was innovative and challenged the real estate cartel". CAARE. Archived from the original on 21 April 2018. Retrieved 16 November 2021.
  7. ↑ "NeighborCity". AngelList. Retrieved 17 February 2013.
  8. 1 2 3 4 5 6 "MRIS injunction against NeighborCity applies only to photographs". Inman News. 21 November 2012. Retrieved 17 February 2013.
  9. ↑ "Neighborcity donated their web traffic to CAARE.org" . Retrieved 16 November 2021.
  10. ↑ Brambila, Andrea V. "NeighborCity hit with MLS copyright lawsuits". Inman News. Retrieved 17 February 2013.
  11. 1 2 3 Fuller, Matt. "Neighborcity.com alleges NAR, MRIS, NorthstarMLS violate anti-trust laws: op/ed". AGBeat. Retrieved 17 February 2013.
  12. ↑ "Neighborcity.com to have its day in court in NAR antitrust suit". Inman. Retrieved 10 January 2014.
  13. ↑ Mary Dumon (2013-05-22). "Berkshire Sues NeighborCity.com in IP Dispute". Technorati. Archived from the original on 2013-10-21. Retrieved 2013-10-17.
  14. ↑ Pribek, Jane F. (2013-07-18). "Listing firms battle in federal court". Minnesota Lawyer. Retrieved 2024-05-17.
  15. ↑ "HomeServices of America, Inc. Announces Settlement of Copyright-Infringement Lawsuit". HomeServices of America. 2014-09-03. Retrieved 2024-05-17.
  16. ↑ "NeighborCity hits Move with cease-and-desist letter over 'AgentMatch' tool". Inman News. Retrieved January 11, 2014.
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