Rules & Regs 12 Prohibitions And Requirements Part 1

Participants and subscribers are required to notify the MLS within 1 day of any final action taken by the BRE or the BREA against the participant, subscriber or any licensee affiliated with the participant or subscriber including, but not limited to any final decisions restricting, suspending or revoking a real estate license or appraiser’s certification or license of a participant, the participant’s firm or corporation under which the participant or subscriber acts, or any licensee affiliated with the participant or the participant’s firm or licensee or appraiser who was affiliated with the participant or participant’s firm at the time of the underlying act.

If a participant, subscriber, appraiser or a licensee affiliated with a participant or subscriber commits a felony or a crime involving moral turpitude or violates the Real Estate Law or the laws relating to appraisers, the participant or subscriber shall be in violation of this section. However, a participant or subscriber shall not be found to have violated this section unless the participant, subscriber, appraiser or salesperson licensed to the participant has been convicted, adjudged, or otherwise recorded as guilty by a final judgment of any court of competent jurisdiction of (1) a felony, or (2) a crime involving moral turpitude, or (3) on a determination by any court of competent jurisdiction, or official of the State of California authorized to make the determination, that the participant or subscriber violated a provision of the California Real Estate Law or a Regulation of the Real Estate Commissioner or law relating to appraisers.

In addition to the notification requirements of paragraph 12.1, a participant may not allow any licensee, under the participant’s license, whose license has been revoked, suspended or restricted by the DRE to use the MLS in any manner while the DRE discipline is in effect except that the licensee may use the MLS under a restricted license providing such use is consistent with and does not violate such license restrictions.

Broker Participants and real estate subscribers shall not solicit a listing filed with the service unless such solicitation is consistent with Article 16 of the N.A.R. Code of Ethics, its Standards of Practice and its Case Interpretations. The purpose of this section is to encourage sellers to permit their properties to be filed with the service by protecting them from being solicited through unwanted phone calls, visits and communications, prior to expiration of the listing, by brokers and salespersons seeking the listing upon its expiration. This section is also intended to encourage all licensed real estate brokers to participate in the service by assuring them that other broker participants and real estate subscribers will not attempt to persuade the seller to breach the listing agreement or to interfere with the listing broker’s attempts to market the property. This section does not preclude solicitation of listings under circumstances otherwise permitted under Article 16 of the N.A.R. Code of Ethics, its Standards of Practice and its Case Interpretations.

Participants and subscribers may not use the remarks in a property data profile sheet or listing submitted to the MLS or inputted directly into the MLS database for purposes of disparaging other real estate agents or conveying information about other offices or for conveying any other information that does not directly relate to the marketing of the listing.

By submitting remarks to the MLS, Participant and/or Subscriber represents and warrants he or she has the authority to grant, and hereby grants the MLS and the other Participants and Subscribers the right to reproduce and display the remarks in accordance with these rules. Copying of remarks by a subsequent listing agent for use in his or her own listing requires prior written authorization from the originating listing agent or other appropriate party with the legal right to reproduce and display such remarks.

a.   Information in the public remarks shall only relate to the property’s attributes*, description and condition of the property.

b.   No contact information is permitted, including names, phone or fax numbers, email addresses or website addresses (including virtual tours and transaction tracking URLs) or calling instructions.

c.   No showing instructions are permitted, including references to lockbox, alarm, gate or other security codes, or the vacancy of the property. However, a statement that the property shall be delivered vacant is not a violation.

d.   No information directed toward real estate agents or brokers, including compensation or bonuses offered to buyer brokers may be shown in public remarks.

                 * qualities, features or characteristics of the property

For violation of this section, see Appendix A, Citable Infractions, 4.2, Misuse of Public Remarks.

a.   “For Comp Purposes Only” must appear in the first line of confidential remarks when a listing is entered for that purpose.

b.   References to burglar alarm, security system or gate codes may be placed in confidential remarks only with seller’s written permission.

c.   Caution:  Title or escrow information may be entered in confidential remarks; however, participants/subscribers should note that any verbiage which implies a requirement to use a specific title company or escrow service may be a violation of RESPA. You are advised to seek legal counsel for specific advice when using such verbiage.

d.   Except for reciprocal listings, no reference may be made to licensees who are not participants or subscribers.

 12.5.3 Remarks - Listing Content and Fair Housing Laws

All listing information, including all remarks, submitted to the MLS must be in compliance with fair housing laws. The MLS monitors listing content and employs a process for identifying potential violations of fair housing laws. Should potential fair housing law violations be identified, Participants and Subscribers will be advised to immediately remove or correct such potential violations. Failure to remove or correct may subject Participants and Subscribers to discipline and/or subject the listing to immediate removal from display.
 

For violation of this section, see Appendix A, Citable Infractions, 4.3, Misuse of Confidential Remarks.

Only the “For Sale” signs of the listing broker may be placed on the property.

Only broker participants or real estate subscribers who participated in the transaction as the listing broker or buyer broker may claim to have “sold” the property. Prior to closing, a buyer broker may post a “sold” sign on a property only with the consent of the listing broker. This section does not, however, prohibit any broker from advertising the addresses, sales prices of and limited public information about the properties that have sold in a neighborhood after the information regarding the properties has been published as long as the advertisement does not imply the agent was involved in the transaction unless such is the case and as long as the advertisement otherwise presents a “true picture” as is meant under Article 12 of the N.A.R. Code of Ethics, its Standards of Practice and its Case Interpretations. The MLS may apply additional restrictions to the electronic display of information regarding sold listings.

A listing shall not be advertised by any participant or subscriber, other than the listing broker, without the prior consent of the listing broker except as provided in Sections 12.16 and 12.20 relating to display of listings on the internet.

For violation of this section, see Appendix A, Citable Infractions, 5.2, Violation of IDX Rules and 5.3, Advertising of Listing Filed with the MLS (Outside scope of IDX).

Except as provided in Sections 12.7, 12.8, 12.11 and 12.15, truthful use of information from the MLS compilation of current listing information, from the MLS’s “statistical report” or from any “sold” or “comparable” report of the MLS for public mass media advertising by an MLS participant or subscriber or in other public representations for purposes of demonstrating market share is not prohibited. However, any print or non-print forms of advertising or other forms of public representations must clearly demonstrate the period of time over which such claims are based and must include the following, or substantially similar, in a manner readily visible to consumers but not less than 7 pt type,

Based on information from the MLSListings MLS as of ______(date the MLS data was obtained).  All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.

For violation of this section, see Appendix A, Citable Infractions, 5.4, Failure to Provide Adequate Informational Notice on Print or Non-Print Forms of Advertising or Other Forms of Public Representations.

Participants and subscribers may not engage in false or misleading advertising, including, but not limited to, advertisements or representations regarding the participant’s or subscriber’s relationship to the service, about the service itself, or about any property listed with the service. MLS participants and subscribers shall present a true picture in their advertising and representations to the public, including Internet content, images and the URLs and domain names they use, and participants and subscribers may not:

a.   engage in deceptive or unauthorized framing of real estate brokerage websites

b.   manipulate (e.g., presenting content developed by others) listing and other content in any way that produces a deceptive or misleading result;

c.   deceptively use metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic:.

d. present content developed by others without either attribution or without permission; or

e. otherwise mislead consumers, including use of misleading images.

For violation of this section, see Appendix A, Citable Infractions, 1.2, Misuse of MLS Information.

In recognition that the purpose of the MLS is to market properties and offer compensation to foster cooperation with other broker participants and real estate subscribers for the sole purpose of selling the property, and that sellers of properties filed with the service have not given permission to disseminate the information for any other purpose, participants and subscribers are expressly prohibited from using MLS information for any purpose other than to market property to bona fide prospective purchasers or to support market evaluations or appraisals as specifically allowed by Sections 12.14, 12.15, 12.16 and 12.20. Any use of MLS information inconsistent with these Sections is expressly prohibited. Nothing in this Section, however, shall limit the MLS from entering into licensing agreements with MLS participants and subscribers, member Associations of REALTORS ® or third parties for use of the MLS information.

For violation of this section, see Appendix A, Citable Infractions, 1.2, Misuse of MLS Information.

Any information provided by the service to participants, subscribers and licensees shall be considered and treated as confidential and shall be for the exclusive use of participants, subscribers and licensees for purposes described in Sections 2, 12.7, 12.11, 12.14, 12.15, 12.16, 12.20 and this section. Participants, subscribers and licensees shall at all times maintain control over and responsibility for each copy of any MLS compilation and shall not distribute any such copies to persons other than participants and subscribers. Participants and subscribers are responsible for the security of their passcodes and shall not give or allow use of or make available their passcodes to any person. Participants, subscribers and licensees may reproduce or display the information as provided in these rules.

For violation of this section, see Appendix A, Citable Infractions, 1.1, Use of MLS System by Unauthorized Party.

Clerical users may have access to MLS information solely under the direction and supervision of a participant or subscriber. Clerical users may not provide any MLS information to persons other than the participant or subscriber under whom they are registered. Access by clerical users to the database is solely for clerical and administrative functions for the participant or subscriber under whom the clerical user is registered.

For violation of this section, see Appendix A, Citable Infractions, 1.2, Misuse of MLS Information.

Unless subject to an executed license agreement with the MLS, only Participants and Subscribers are entitled to the right and license to access the Active Listing MLS Compilation and the Comparable Data MLS Compilation.  This does not limit the right of participants to produce or provide statistical, analytical and/or market trending information for dissemination to clients or potential clients, nor of the MLS to license third parties to provide or produce statistical, analytical and/or market trending information for use by participants or subscribers or their clients.

Subject to Sections 12.15, 12.16 and 12.20, broker participants and real estate subscribers shall be permitted to display the MLS compilation in electronic, faxed, printed, broadcast (e.g., television, podcasts, radio, etc.) format or provided through any other delivery method to specifically identified and bona fide prospective purchasers only in conjunction with their ordinary business activities of attempting to locate ready, willing and able buyers for the properties described in said MLS compilation. Broker participants and real estate subscribers shall be permitted to display the MLS compilation in either electronic or printed format to specifically-identified and bona fide sellers or prospective sellers only in conjunction with their ordinary business activities in listing properties. Appraiser participants and appraiser subscribers shall be permitted to display the MLS compilation to the person requesting the appraisal only in conjunction with their ordinary business activities of producing a written appraisal. Such displays under this section shall be only in the immediate presence or under the direct control of the MLS participant or subscriber.

When providing listing information to customers or clients using MLS-provided email, reports or flyers, or using similar tools provided by authorized third parties, Listing Agent and Listing Office must be clearly identified for active/pending listings.

Display of confidential information is never permitted.

Appraisal offices are not authorized to operate IDX websites or to provide listing information to the public in any form.

12.14.4 Clerical Users
Clerical users are expressly prohibited from displaying or distributing MLS information to anyone other than the participant or subscribers under whom the clerical user is registered.

For violation of this section, see Appendix A, Citable Infractions, 1.2, Misuse of MLS Information.

###