New XML group forms Source: Inman News Features ©2000- Carl D. Holcombe Frustration builds over lack of communication with other groups SAN FRANCISCO – Worries over a lack of cooperation and potentially restrictive controls have spurred the creation of a new XML standards group for online real estate. Announced Sunday at the National Association of Realtors' convention, the six-week-old Alliance for Advanced Real Estate Transaction Technology brings together nearly 20 companies in Web realty. The alliance hopes to set up XML standards for data and documents, and act as a bridge to other XML groups and companies. XML, essentially a common ground for data exchange, is generally considered as a way to create easily transferable documents and nformation between branches of online realty, such as title and mortgage companies, and real estate agents and multiple listing services. "Certain people have been adding friction to the process hoping that will allow (their role and business) to stay around longer," said Ari Vidali, chief technology officer for iProperty. "So the question is how can we create a frictionless proposition." He said the online realty community can't stay in its separate "little world and silos," adding, "Let's leave the partisan politics aside." He said AART hoped to make significant progress to establishing better communication on XML standards. Vidali said XML standards, despite the NAR- and Homestore-driven Real Estate Transaction Standards (RETS), have been slow to fruition. The group does not oppose RETS, although there is an undercurrent of concern over NAR and Homestore control over such valuable defining standards, which could create barriers to rival businesses, some AART members said.NAR and Homestore.com are not members of the new alliance. Some members are concerned that other players in online realty are more focused on maintaining control within their niche. Such an environment, they said, could delay XML standards integration by many months or even years. The alliance's main purpose is to "turbo-charge cooperation among existing vertical standards efforts and build interoperability between them," said Vidali. "We believe strong alliances within our industry are crucial for innovation and value creation." "In order for the real estate and mortgage finance industries to realize the true potential of e-commerce, it is essential that the industry develop open standards for information exchange," said Cy Brinn, president of GHR Systems, a loan-origination technology provider. Nick Karris, an online realty analyst with Gomez Advisors, said consumers are being shortchanged by a "business-as-usual" approach on the Internet, when it comes to the standards. "Only by cooperation and even greater information sharing can we take advantage of this (Web realty) opportunity together," said Karris. Otherwise, consumers will lose out in the end, he said. Besides RETS and the Mortgage Industry Standards Organization, other XML groups exist for areas such as legal contract data, classified advertising, Fannie Mae and Freddie Mac, and insurance, said Vidali. "We need to get them all together so they can talk," said Karris. AART is expected to grow to between 75 and 100 companies and groups by first-quarter 2001. The group is also open to for-sale-by-owner companies. AART members include 9Keys.com; AppraisalHub.com; Bowstreet.com; Deloitte and Touche, GHR Systems; HomeAdvisor Technologies Inc.; HomeBid.com; iLumin.com; Inciscent; InfoStream; Instanet Forms; Intellitouch; Interealty; iProperty; MarketLinx; Property I.D.; Supra Products and VISTA Information Solutions.