Rules & Regs 7 Listing Procedures Part 2

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7.9        Withdrawal of Listing Prior to Expiration

Listings of property must be withdrawn from the MLS by the listing broker before the expiration date of the listing agreement if the listing broker has received written instructions from the seller to withdraw the listing from the MLS. Listing broker may withdraw any listing from the MLS 48 hours after providing seller with written notice of the broker’s intention to withdraw the listing based on a dispute with the seller regarding the terms of the listing agreement. The MLS may require the listing broker to provide a copy of any notice of dispute or any written instructions from the seller. Sellers do not have the unilateral right to require the MLS to cancel any listing. However, the MLS reserves the right to remove a listing from the MLS database if the seller can document that his or her listing agreement with the listing broker has been terminated or is invalid. Withdrawal from the MLS with the seller’s consent does not relieve the obligation of the listing broker to report the sale and sales price if it closes escrow while the seller is represented by the listing broker.

For violation of this section, see Appendix A, Citable Infractions, 3.4, Purposely Manipulating the MLS System to Circumvent the Rules.

7.10     Contingencies

Any contingency or condition of any term in a listing shall be specified and noticed to the participants and subscribers.

7.11     Detail on Listings Filed with the Service

7.11.1               Completeness of Listings

All listings input into the MLS shall be complete in every detail including full gross listing price, listing expiration date, compensation offered to other broker participants and any other information required to be included as determined by the MLS and approved by the Board of Directors. For residential listings, the property address must be input into the MLS where one exists at the time the listing is filed, or the parcel identification number must be input instead if the property address is unavailable. If no address or parcel identification number is available at the time the residential listing is filed, the listing must, at a minimum, contain a legal description of the property sufficient to describe the location of the property. Listings that are incomplete shall be ineligible for publication in the MLS and subject to immediate removal.

7.11.2               Listing Photograph Requirements

All listings that are entered into the MLS for sale or lease must include a property photograph within 1 day after entry, except for those submitted as Members Only-Do Not Show. Properties with existing buildings must include a photograph of the front of the building. Images may not be text only but may include text or overlays which describe or detail specific property characteristics or attributes e.g. boundaries, pointers or physical descriptions. Any additional text or overlays is prohibited. Any enhancements or modifications to images must be disclosed in the public remarks, e.g. color enhancement or virtual staging. Listings that will not have a property photo must have an MLS-provided “Seller Prefers No Photo” image published on the listing within the required time and must have written authorization from the seller to exclude a primary image, and that certification must be provided to the service upon request. On new construction, a realistic artistic rendering of the intended appearance of the front of the building will suffice until the building is completed, at which time an appropriate photograph must be submitted.

7.11.2                Virtual Open House A Virtual Open House

must be a live scheduled event at a designated time where an agent holds the house “open” but hosts it virtually by providing web links to video conferencing services e.g. Zoom, Google Meet, GoToMeeting, For a Virtual Open House event, the agent is physically at the listing and gives a tour of the property via meeting software. The Virtual Open House audience can view the live stream and can interact with the agent. The Virtual Open House event may contain registration requirements for security but may only be name and/or email address. The event registration page may only contain listing agent and office name with no other brokerage branding, or agent contact information, photos or logos and must be free from unrelated media. Any recording of a Virtual Open House event may only be used in a listing as a branded video tour subject to the MLS rules.

For violation of these sections, see Appendix A, Citable Infractions, 3.1, Submission of Listings That Do Not Satisfy the Requirements of the MLS Rules.

7.12     Unilateral Contractual Offer; Subagency Optional No Compensation Specified on MLS Listings

In filing a property with the MLS, the broker Participants, Subscribers, and their sellers are prohibited from making offers of compensation to buyer brokers and other buyer representatives in the MLS. Participants and Subscribers are prohibited from disclosing in the MLS, in any way, the total commission negotiated between the seller and the listing broker, or total broker compensation (i.e. combined compensation to both listing brokers and buyer brokers). The MLS reserves the right to remove a listing from the MLS database that does not conform to the requirements of this rule. This rule does not prevent sellers from offering buyer concessions on the MLS so long as such concessions are not limited to or conditioned on the retention of or payment to a Buyer Broker or other buyer representative. makes a blanket unilateral contractual offer of compensation to the other MLS broker participants for their services in selling the property. Except as set forth in Rule 7.15 below, a Broker Participant must specify some compensation to be paid to either a buyer’s agent or a subagent and the offer of compensation must be stated in one, or a combination of, the following forms (1) a percentage of the gross selling price; or (2) a definite dollar amount. The amount of compensation offered through the MLS may not contain any provision that varies the amount of compensation offered based on conditions precedent or subsequent or on any performance, activity or event. In the event there are any service fees or administrative costs, etc to be imposed on buyer’s agent’s compensation, any such reductions should be factored in as a reduced amount the listing broker initially offers to a buyer broker and may not be made a condition of the offer. Furthermore, the MLS reserves the right to remove a listing from the MLS database that does not conform to the requirements of this section. At the broker participant’s option, a broker participant may limit his or her offer of compensation to buyer’s agents only, to subagents only, or make the offer of compensation to both. Any such limitations must be specified on the property data form and in the MLS. The amount of compensation offered to buyers’ agents or subagents may be the same or different but must be clearly specified on the property data profile sheet. Broker participants wishing to offer subagency to the other MLS broker participants must so specify on the property data profile sheet and on the MLS, otherwise, the offer of compensation does not constitute an offer of subagency. The offer of compensation may be any amount including zero ($0 / 0%).

For violation of this section, see Appendix A, Citable Infractions, 3.3, Purposely Manipulating the MLS System to Circumvent the Rules.

7.13     Acceptance of Contractual Offer

The Listing Broker Participant’s contractual offer (with or without subagency) is accepted by the Buyer Broker Participant by procuring a buyer which ultimately results in the creation of a sales or lease contract. Payment of compensation by the Listing Broker Participant to the Buying Broker Participant/buyer broker under this section is contingent upon either (1) the final closing or (2) the Listing Broker Participant’s receipt of monies resulting from the seller’s or buyer’s default of the underlying sales or lease contract. Notwithstanding this section, the listing broker and/or buyer broker shall still retain any remedies they may have against either the buyer or seller due to a default under the terms of the purchase agreement, listing agreement or other specific contract. Any dispute between participants arising out of this section shall be arbitrated under Section 16 of these rules and shall not be considered an MLS rules violation.

7.147.13           Consent to Act as Dual Agent

By offering compensation and/or subagency to broker participants, the listing broker is not automatically representing that the seller has consented to the buyer broker acting as a dual agent representing both the buyer and the seller. No buyer broker shall act as both an agent of the buyer and the seller without first contacting the listing broker and ascertaining that the seller has consented to such dual agency.

7.157.14           Listings Requiring Special Disclosure or Identification on the System.

7.15.1                Estate Sale, Probate and Bankruptcy Listings

Compensation offered through the MLS to buyer brokers on estate sale, probate or bankruptcy listings is for the amount published therein as long as the buyer broker produces the contract which is ultimately successful and confirmed by the court, if court confirmation is required. In the event the contract produced by the buyer broker is overbid in court and the overbid contract is confirmed, the original buyer broker shall receive the amount of compensation specified as “unconfirmed buyer broker’s compensation” or “u.c.b.” in the property data profile sheet and on the MLS. For estate sale or probate listings, the compensation offered through the Service under these rules and this section shall be considered an agreement as referred to in California Probate Code Section 10168 and will therefore supersede any commission splits provided by statute when there is no agreement. This section contemplates that estate sale, probate and bankruptcy judges have broad discretion and therefore are not intended as a guarantee of a specific result as to commissions in every probate or bankruptcy sale. All listings that require or may require court confirmation must be so identified.

7.15.27.14.1 Short Sale - Lender Approval Listings

Participants must disclose potential short sales (defined as a transaction where title transfers, where the sale price is insufficient to pay the total of all liens and costs of sale and where the seller does not bring sufficient liquid assets to the closing to cure all deficiencies) when reasonably known to the listing broker. This section does not allow Participants with short sale listings to place any reduction conditions MLSListings on compensation offered through the MLS for items such as lender reductions of the gross commission, short sale negotiator fees or other administrative costs of the transaction. Any reductions from the commission for such items, if any, should be factored in as a reduced amount the listing broker initially offers to a cooperating broker and may not be made a condition of the offer.

7.15.37.14.2. Auction Listings

Only auction listings which comply with these MLS Rules and Regulations, including, but not limited to Sections 7.12 and 7.13, may be submitted to the Service. Auction listings entered into the MLS system shall have listing contracts as required under these rules, be clearly labeled as auction listings, and provide all the terms and conditions of the auction. Reserve auctions are not permitted on the MLS. Auction listings shall further specify the following:

(a) The list price, which shall be seller’s minimum acceptable bid price;

(b) The date, time and place of the auction;

(c) All required procedures for Participants/Subscribers to register their representation of a potential bidder;

(d) The amount of the buyer’s premium, if any;

(e) The time or manner in which potential bidders may inspect the listed property;

(f) Whether or not the seller will accept a purchase offer prior to the scheduled auction; and

(g) Any other material rules or procedures for the auction.

Subsections (b) through (g) above shall not appear in a listing’s public remarks.

 7.15.4 Lender Owned Listings (REOs) and New Subdivision Sales

Compensation offered through the MLS to buyer brokers on listings in which the seller is a lending institution or its assignee (commonly referred to as “REO” listings) or a new subdivision sales office is for the amount published therein unless the listing broker indicates on the MLS the following: (a) the published compensation is a percent of the gross selling price minus concessions, credits or upgrades accepted by the buyer (net selling price); (b) this fact is clearly communicated to buyer brokers in the listing and (c) the accepted contract to purchase ultimately includes the specific dollar amount of the seller concessions. Listings qualifying under this section must be so identified upon entry into the system.

7.15.57.14.3 Government Agency (Federal, State and Municipal) As Seller

Property listings wherein the seller is a government agency or government agency controlled program (e.g., HUD, Neighborhood Stabilization (NSP) Inclusionary Housing) must be so identified upon entry into the system.

7.16 Changes to Offer of Compensation by Listing Broker to All Broker Participants

The listing broker may, from time to time, adjust the published compensation offered to all MLS broker participants with respect to any listing by changing the compensation offered on the MLS or MLSListings MLS Rules Page 18 providing written notice to the MLS of the change. Any change in compensation will be effective after the change is published in the MLS, either through electronic transmission or printed form, whichever occurs first. The listing broker may revoke or modify the offer of compensation in advance as to any individual broker participant in accordance with general contract principles but in no event shall the listing broker revoke or modify the offer of compensation without the buyer broker’s consent later than the time the buyer broker (a) physically delivers or transmits by fax or e-mail to the listing broker a signed offer from a prospective buyer to purchase the property for which the compensation has been offered through the MLS, or (b) notifies the listing broker in person or by telephone, fax or e-mail that the buyer broker is in possession of a signed offer from a prospective buyer to purchase the property for which the compensation has been offered through the MLS and is awaiting instructions from the listing broker as to the manner of presentation or delivery of that offer. Any independent advance revocations, modifications of the offer or agreements between real estate brokers are solely the responsibility of such brokers and shall not be submitted to, published by, or governed in any way by the Service.

7.177.15 Broker Participant or Real Estate Subscriber as Principal

If a listing broker has any interest in property, the listing of which is to be disseminated through the Service, that person shall disclose that interest on the MLS.

For violation of this section, see Appendix A, Citable Infractions, 3.1, Submission of Listings That Do Not Satisfy the Requirements of the MLS Rules.

7.187.16 Multiple Unit Properties

All properties which are to be sold or which may be sold separately must be indicated individually in the MLS and will be published separately. When part of a listed property has been sold, the listing broker shall input the appropriate changes on the MLS.

7.197.17 Expiration, Extension, and Renewal of Listings

Listings shall be changed to the appropriate off market status on the expiration date specified on the listing unless the listing is extended or renewed by the listing broker. The listing broker shall obtain written authorization from the seller(s) before filing any extension or renewal of a listing. Any renewals or extensions received after the expiration date of the original listing shall be treated as a new listing and will be subject to any fees applicable to new listings. At any time and for any reason, the MLS has the right to request a copy of the seller’s written authorization to extend or renew a listing. If a listing broker is requested to provide a copy of such authorization and does not do so within 1 day of the request, the listing shall be subject to immediate removal from the MLS.

For violation of this section, see Appendix A, Citable Infractions, 3., Purposely Manipulating the MLS System to Circumvent the Rules.

7.19.17.17.1 Extension for Protected Buyer

In the event a listing broker’s listing has expired but a commission extension right for a protected buyer has been timely activated in the listing agreement and listing broker represents seller in said transaction, listing broker may be considered the “listing broker” for MLS reporting of sale as long as satisfactory documentation is presented to MLS.

For violation of this section, see Appendix A, Citable Infractions, 3.4, Purposely Manipulating the MLS System to Circumvent the Rules.

7.207.19 Listings of Participants or Subscribers Suspended, Expelled or Resigned.

7.20.17.19.1 Failure to Pay MLS Fees; Resignation

When a participant or subscriber is terminated from the Service for failure to pay MLS fees or charges, or if the participant or subscriber resigns from the Service, the MLS shall cease to provide services to such participant or subscriber, including for broker participants the continued inclusion of listings in the MLS compilation of current listing information. In the event listings are removed from the MLS pursuant to this section, it shall be the sole responsibility of the participant to notify the seller(s) that the property is no longer listed in the MLS.

7.20.27.19.2 Violation of MLS Rules

When a participant or subscriber is suspended from the Service for a violation of the MLS rules and regulations, the MLS shall cease to provide services to such participant or subscriber except that the listings in the MLS at the time of suspension shall, at the suspended participant’s option, be retained in the MLS compilation of current listing information until sold, withdrawn or expired, and shall not be renewed or extended by the MLS beyond the termination date of the listing agreement in effect when the suspension became effective. In the event listings are removed from the MLS pursuant to this section, it shall be the responsibility of the participant to notify the seller(s) that the property is no longer listed in the MLS. When a participant or subscriber is terminated or expelled from the Service for a violation of the MLS rules and regulations, the MLS shall cease to provide services to such participant or subscriber. For broker participants, the continued inclusion of listings in the MLS compilation of current listing information will also cease. In the event listings are removed from the MLS pursuant to this section, it shall be the sole responsibility of the participant to notify the seller(s) that the property is no longer listed in the MLS.

7.21     No Control of Commission Rates or Fees Charged by Participants

The MLS shall not fix, control, recommend, suggest, or maintain commission rates or fees for services to be rendered by participants. Further, the MLS shall not fix, control, recommend, suggest, or maintain the division of commissions or fees between buyer participants or between participants and nonparticipants.

7.22     Dual or Variable Rate Commission Arrangements

The existence of a dual or variable commission arrangement shall be disclosed by the listing broker by a key, code or symbol as required by the MLS. A dual or variable rate commission arrangement is one in which the seller or owner agrees to pay a specified commission if the property is sold by the listing broker without assistance and a different commission if the sale results through the efforts of a buyer broker, or one in which the seller or owner agrees to pay a specified commission if the property is sold by the listing broker either with or without the assistance of a buyer broker and a different commission if the sale results through the efforts of a seller or owner. The listing broker shall, in response to inquiries from potential buyer brokers, disclose the differential that would result in either a cooperative transaction or, alternatively, in a sale that results through the efforts of the seller or owner. If the buyer broker is representing a buyer or tenant, the buyer broker must then disclose such information to his or her client before the client makes an offer to purchase or lease.

For violation of this section, see Appendix A, Citable Infractions, 3.4, Purposely Manipulating the MLS System to Circumvent the Rules.

7.237.20 Co-Listings

Only the listings of Participants and Subscribers will be accepted by the MLS. All brokers and agents co-listed on a property must be MLS Participants or Subscribers. Co-listing agent or colisting broker information must be published in the designated co-listing fields and may also be published in the private remarks area.

For violation of this section, see Appendix A, Citable Infractions, 3.4, Purposely Manipulating the MLS System to Circumvent the Rules.