We’ve got some new and important changes to the MLS rules to take note of. Download a PDF of the rules for your reference here:
Below is a summary of the rule changes that were sent by the Board. Take careful note of the new fee schedule.
Exclusions to listing agreements – (Page 13 of the rules) the new rule requires the listing agent to list in the “Agent Remarks” the names of any individual(s) or companies who have been excluded from participating in the sale of this property by exclusion by the seller(s). These exclusions, as required by the seller, must also be included in the Listing Agreement.
This new language applies to individuals that the seller(s) may have been working with prior to the listing agreement, therefore they have been specifically excluded from the listing agreement (in other words they could buy it direct from the seller without compensation to the Listing Brokerage, therefore no co-brokerage would be available if the property was sold to this particular individual(s)). This exclusion could also pertain to a specific real estate brokerage or agent that the seller, for personal reasons, is refusing to work with. The rule now reads as follows:
Section 1.18 Exclusions: Exclusions to a contract must be listed in the agent information section of the listing agreement. Any Exclusions authorized or required by the Seller pertaining to a particular person(s) who are prohibited from participating in the sale must be included in the listing agreement and listed in the agent remarks section of the listing.
Branding of Photos and Contact Information – (Page 14 of the Rules) This addition to the existing rule prohibits photos from being altered to include colored borders, artwork, headliners or any added text of any kind. Also, it is prohibited to add any third-party contact information such as photographer names, builders or architect names. The new rule reads as follows:
Section 1.19 Contact information on listings: No contact information including Open House notification shall be placed in the Narrative (Public Remarks) section or the Driving Directions section of the listing. Photos cannot be branded with listing firm, listing agent information, colored borders, or any third-party contact information such as photographers, builders or architects. Contact information may be placed in the agent information section, or in the listing information field provided for that purpose. Examples of contact information include but are not limited to name, phone number, email address or branding of any type, including builders.
Section 1.21 Photos in the MLS: (this sentence has been added to this section) …Photos are not to contain banners, artwork, headliners or any added text of any kind.
Reporting Sales to the Service – (Page 16 of the Rules) This new rule strictly prohibits listing agents/firms for coercing selling agents/firms from misrepresenting the sales agent in the transaction for statistical purposes. The new rule reads as follows:
Section 2.5 Reporting Sales to the Service (this sentence has been added to this section) …Only the listing agent and the primary sales agent directly involved in the transaction may claim credit for the sale in the MLS database. No other agent shall coerce or direct the listing agent to report the sale under a different agent other than the agent(s) directly involved in the sale.
Publishing of combination lockbox codes or other security codes – (Page 21 of the Rules) This new rule prohibits the publishing of any security codes in the MLS. You should also note, that the Association does not recommend or endorse the use of combination lockboxes to provide access to properties listed in the MLS. The new rule reads as follows:
Section 6.1.13 – Combination Lockboxes: The MLS Governing Body does not endorse nor recommend the use of combination lockboxes listed in the MLS. It is strictly prohibited to publish the combination access codes or any other access codes (such as gate codes, lobby codes, etc.) anywhere in the MLS compilation except in the Office Only remarks section of the MLS.
Sharing of MLS Passwords – (Page 26 of the MLS Rules) this rule has been amended to allow the MLS to fine, not only the person who shares their MLSpassword but to fine the member who uses someone else’s password to access the MLS. The new rule reads as follows:
Section 13.1 – Sharing of MLS Passwords Prohibited: MLSParticipants and subscribers are strictly prohibited from sharing their MLS Passwords or providing access to the MLS database. Any MLSParticipant or Subscriber who shares their MLS password will be fined $15,000 for each occurrence. Any MLS Participant or users of a password, other than their own, will be fined $15,000 for each occurrence.
Changes in Rules and Regulations – (Page 26 of the Rules) this section has been amended to clarify that the Board of Directors approves all changes to the Rules and that they become effective upon notice being delivered to the membership. The new rule reads as follows:
Section 14 – Changes in Rules and Regulations: Amendments to the Rules and Regulation of the MLS shall become effective upon adoption by the Board of Directors and notice of such changes shall be delivered to the MLS Participants and Subscribers.
Section 20 – Fines for Non-Compliance – (Page 38 of the Rules) This rulechange is for clarification purposes. For violating the specific rules listed in paragraphs (a) through (l) of the rules are standardized for first finable and second finable offense. For your first violation anything listed in (a) through (l) you will be given 1 business day to correct the violation, failure to correct in 1-day results in a fine of $50. The second time you violate anything listed in (a) through (l) you will receive notice to correct in 1-day and an automatic fine of $250. Any additional future violations of (a) through (l) is a minimum fine of $500 and requires a hearing before the MLS Governing Body. The new rulereads as follows:
Section 20.2 For failure to comply with each of the following provisions in addition to the provisions of Sections 9 and 9.1 the Participant shall receive courtesy notice and allowed 1 business day to correct the violation, if it is a first offense. A repeat or second offense will incur an automatic fine, as stipulated in these rules: First offense – $50.00; Second offense $250.00.
The MLS Committee has expressed interest in making several additional changes to the MLS Rules and these were sent back to the MLS Committee for additional consideration:
ADDITIONAL FINES UNDER CONSIDERATION BY THE MLS COMMITTEE:
FAILURE TO FOLLOW LISTING AGENT SHOWING INSTRUCTIONS – Currently the rules provide for a $200 fine for failing to follow the showing instructions. The Committee proposed that this fine be increased to $15,000. The Directors agreed that the fine should be increased, since entering a property without permission is trespassing, but they were concerned that $15,000 fine was excessive and should be re-evaluated.
LOAN OF LOCKBOX AND/OR GIVING OUT OF MECHANICAL LOCKBOX CODES/SECURITY CODES – Currently if you loan your lockbox key to another individual (REALTOR or Not) there is an automatic fine of $500 and the committee proposed that the fine be increased to $15,000. Additionally, if you give someone (REALTOR or Not) the combination code to any property that you are not the listing agent/office there is an automatic fine of $500 the committee proposed that fine be increased to $15,000. These same penalties (fines) would apply to the recipient (the REALTOR that used the code). So, the person that gave it out and the person that received and used it. Both were sent back to the MLS Committee for further consideration since the fines seemed excessive.
Comments