Rules & Regs 17) Nonpayment Of MLS Fees 18) Changes in Rules and Regulations

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17.  NONPAYMENT OF MLS FEES

17.1 Nonpayment of MLS Fees

If MLS fees, fines, charges or other amounts owed the MLS are not paid within fifteen (15) days after
the due date, the nonpaying participant’s, subscriber’s and/or clerical user’s MLS services shall be
subject to suspension until such outstanding amounts are paid in full. The MLS may suspend MLS
services under this section provided the MLS gives the participant and/or subscriber at least ten (10)
calendar days’ prior notice of the proposed suspension date. Such notice may be included with the
original billing statement for MLS fees, fines or charges or any time thereafter. In the event the
amounts owed remain unpaid for twenty-eight (28) days after the due date, the nonpaying participant
and/or subscriber’s MLS services shall automatically terminate regardless if notice of such termination
is given.

17.2 Disputed Amounts

If a participant and/or subscriber disputes the accuracy of amount owed, the participant and/or
subscriber may request a hearing before the Board of Directors. In order to request such a hearing, the
participant and/or subscriber must first pay the disputed amount in whole, which may be refunded in
whole or part in accordance with the Board of Directors’ determination. Hearings under this section
shall be conducted in accordance with the California Code of Ethics and Arbitration Manual. In the
event the Board of Directors confirms the accuracy of the amount owed, the participant and/or
subscriber shall also be subject to paying interest at the rate of ten (10%) per annum on such past due
amounts.

17.3 Reinstatement

Any participant and/or subscriber whose MLS services have been terminated for nonpayment of MLS
fees may reapply for participation in the MLS. However, prior to being granted access, such participant and/or subscriber must pay all fees applicable to new applicants and all past due amounts
owed, including paying interest at the rate of ten (10%) per annum on such past due amounts.

18. CHANGES IN RULES AND REGULATIONS

The rules and regulations of the MLS may be amended by a recommendation from the MLS Rules Committee, subject to approval by the Board of Directors. Any changes to these rules and regulations which are mandated by the National Association of REALTORS® shall automatically be incorporated into these rules and regulations and do not require MLS Rules Committee or Board of Directors approval.

Appendix A – Citable Infractions and Associated Penalties

With Reference to Applicable Rules

Appendix B Rules Enforcement

• Notices of any violation will be sent to both Subscribers and their responsible    

Participant and/or Office Manager. A violation must be corrected within two (2) calendar days of notice of violation unless otherwise specified. Receipt of notice is presumed to be the sooner of three (3) calendar days after mailing or one (1) calendar day after email or facsimile transmission. Failure to correct a noted violation within the two (2) day time period allotted will result in a new violation for the uncorrected violation with the associated fine for that level of violation. Failure to correct a violation within the two (2) day correction period may also subject a non-conforming listing to removal by the MLS from active display. New violations may be issued for any remaining uncorrected violations until the violations are corrected or the maximum fine is reached as set forth below.

• Staff issues a citation for a specified MLS Rules violation, per incident.
• Uncured violations will result in an escalating fine, doubling until the NAR limit is reached. Such amounts are cumulative, with each escalation adding to the total amount due.
• The Participant/Subscriber has 25 days to pay the fine or 15 days to file a challenge.
• If the fine is not paid within the 25-day period, staff will issue a 10-day notice informing the Participant/ Subscriber that nonpayment by the end of those 10 days will result in suspension of MLS service.
• For each 3rd violation a $200 administrative fee will be charged.
• If a hearing panel finds that there was a violation of the MLS Rules, in addition to any fines or disciplinary action, a $250 administrative fee will be charged.

• Violations will be assessed over a 12 month cycle.
• Fines may not exceed the NAR limit for a single incident.
• Ethics violations will be referred to the appropriate Association.
• The MLS Committee and/or the Board of Directors reserves the right, at its discretion, to charge a Participant or Subscriber with rules violations by virtue of the hearing process, including the possibility of additional fees or fines, suspension or expulsion, rather than utilizing the citation process. Thus, the above fines may not be all inclusive. Any Participant or Subscriber who accumulates in excess of 3 (three) administrative sanctions in one calendar year, unless otherwise specified, shall be required to attend a hearing for their actions and potential violations of MLS rules. Additionally, the responsible Participant is required to attend any such hearing of a Subscriber.

• Reporting of violations will remain confidential. When requested by a complainant, the MLS shall provide a process for processing reports of violations without revealing the complainant’s identity. If the matter is forwarded to hearing, then the MLS Committee, Grievance Committee, MLS staff or other representative must serve as the complainant when the original complainant does not consent to participating in the process or the disclosure of his or her name.

Appendix C – Authorized Providers

Monterey County Association of REALTORS®

San Benito County Association of REALTORS®

San Mateo County Association of REALTORS®

Santa Clara County Association of REALTORS®

Santa Cruz County Association of REALTORS®

Silicon Valley Association of REALTORS®

Appendix D –Property Classes & Property Types

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