Bylaws and MLS Rule Changes Effective August 15, 2024

Mandatory Bylaws and MLS Rules & Regulations Changes

This email serves as notice of the following mandatory changes from the National Association of REALTORS to the MLS Rules and Regulations and the Bylaws pursuant to the National Association of REALTORS Settlement Agreement.

All changes are effective August 15, 2024.

This email includes notice in three parts:

Mandatory Changes to the Space Coast MLS Rules and Regulations from National Association of REATLORS.
Rules and Enforcement established to the Space Coast MLS Rules and Regulations pursuant to the settlement agreement, along with minor changes to the Space Coast MLS Rules and Regulations reflecting the recent database conversion
Mandatory Bylaw changes to the Space Coast AOR and MLS Bylaws from the National Association of REALTORS. Removes all language of communication compensation in the MLS and defines cooperation.

Space Coast Association of REALTORS, Inc: Article XIX- Subsidiary Multiple Listing Service: Section 2 Purpose; Section 4 Participation.
Space Coast Multiple Listing Service, Inc: Article 2 Purpose; Article 4 Participation

MLS Rule Changes – Effective August 15, 2024

Below are mandatory MLS changes from the National Association of Realtors® as well as local rule changes that have been adopted to Space Coast MLS Rules and Regulations. These changes will take effect August 15, 2024.

Click here to view the redline version of the Space Coast MLS Rules and Regulations. The language in GREEN is new and the language in RED has been deleted

Click here to see the clean version of the MLS Rules and Regulations (changes incorporated)

A brief description of the changes to the MLS Rules and Regulations is provided below along with established fines for non-compliance to the mandatory MLS changes.

Overview of Mandatory MLS Changes from National Association of Realtors®:

Click here to view word-by-word notice of changes as mandated by the NATIONAL ASSOCIATION OF REALTORS®. The language in GREEN is new and the language in RED has been deleted.

Article 2: Purpose – removes compensation; defines cooperation

Article 4: Participation– removes compensation; defines cooperation

Section 1: Listing Procedures – removes compensation; defines cooperation

Section 4.6: No Filtering of Listings: Participants and Subscribers must not filter out or restrict MLS listings based on the level of compensation or cooperation.

Section 5.0: No Compensation Specified on the MLS – Removal of language on the offer of compensation in the MLS. Adds language that Participants, Subscribers or their sellers must not make offers of compensation in the MLS.

Section 5.0.0: Required Consumer Disclosure – Defines the required disclosures of compensation, that compensation is not set by law and is fully negotiable

Section 5.0.2: Written Buyer Agreement - All MLS participants working with a buyer must enter into a written agreement with the buyer prior to touring a home.

Section 5.3: Removal of Dual of Variable Rate Commission Arrangements

Section 5.4: Removal of Display of Listing Broker’s Offer of Compensation

Section 16.3: Removal of section

Section 16.11: Removal of section

Section 16.15: Removal of statement in section

Section 16.18: Removal of section

Section 16.21: Removal of section

Cooperation Defined: Cooperation: the obligation to share information on listed property and to make property available to other Brokers for showing to prospective purchasers and tenants when it is in the best interests of their clients.

Overview of locally adopted Space Coast MLS Changes:

Click here to view word-by-word notice of changes as approved by the Board of Directors. The language in GREEN is new and the language in RED has been deleted.

Fine: Communicating Commission/Compensation in the MLS, Ancillary Products, or Association Platforms

Section 22.16: Established fines for communication of offers of compensation in the MLS, ancillary products, and/or Association platforms. If a participant or subscriber communicates an offer of compensation within the MLS or any of the ancillary products they will be subject to the fines as set forth in the MLS Rules and Regulations, $1,000 and 2 Hour Mandatory Class on MLS Compliance, second violation $1,500 to both the subscriber and participant, subsequent fines $3,000 to both the subscriber and participant.

Fine: If reported that an agent is working with a buyer without a written buyer agreement, MLS staff will contact the agent (and broker) to request a copy of the agreement, which must be provided in 1 business day

Section 22.17: Established fines for failure to have a written buyer agreement. Failure to provide the MLS the written buyer agreement upon request will request in an administrative fine of $250. $500 will be assessed if not provided within 5 business days, along with attendance in the 2 hour mandatory class on MLS Compliance.

Section 1.4.1 Listing Status Types – updates listing status updates to reflect the newest version of Space Coast MLS database pursuant to RESO Standards. New status Active Under Contract, removal of Back Up and Contingent Status’.

Section 1.5.1: Listing Data Manipulation – ADDED: Any change to the list price, regardless of status without written consent by the seller is considered listing data manipulation.

Section 1.6: Change reflects Active Under Contract – removal of contingent status

Section 1.16: Auction Properties – Updated to reflect the newest version of Space Coast MLS database.

Section 2.7: Advertising of a Listing Filed with the MLS – Addresses permission to advertise, as content is provided marked for public within the MLS. Full revised rule below.

Section 2.11: Disclosing the Existence of Offers for Short Sales – Updated to reflect the current statuses within the MLS.

Section 18.3.11: Removal of Rule

Section 19.19: Rule updated to be compliant with required note.

Section 19.23: Removal of Rule

Section 22: Enforcement of Fines for Non-compliance – added language pursuant to the NAR MLS Policy Manual.

Section 22.2: Updated letter C to reflect the current statuses within the MLS.

Revised Section 2.7 – Advertising of a Listing Filed with the MLS: A listing, regardless of its status in the MLS, shall not be advertised by any Participant other than the listing broker without the prior consent of the listing broker.

The listing agent with the Participants (Broker) approval may grant Blanket Approval for any member to advertise their listing(s) in the MLS. This will be a YES or NO mandatory field on each individual listing, and the default will be set to NO in the MLS. With consent to advertise the listing, you are permitted to share and/or post the listing and its photo(s)/video(s) as it appears in the MLS. Attribution must always be provided.

When a listing is marked YES, the listing agent gives permission to allow other agents to advertise their listing in print or on the internet, this grants permission only to share/post the listing and/or video as it appears in the MLS. In addition to any applicable advertising rules, these additional rules apply:

1. No changes or manipulation of the listing data may occur, a true and accurate picture of the listing must be presented and may not attempt to mislead the consumer.

2. The advertising agent cannot portray the listing as their own or belonging to their office unless that is a true representation.

3. A “courtesy of” notice with the listing agent’s name & brokerage must be included in the verbiage of the advertisement in a readily visible color and font, with typeface not smaller than the median used in the display of listing data.

4. Once you mark a listing YES for blanket approval you cannot rescind the blanket approval authorization.

5. Permission is not granted to share/post videos, photos, “live” or any other content that was not created by the listing brokerage, listing agent, or their vendors.

6. Permission is not granted to share/post any videos, photos, “live” or any other content that was not posted for public view on the MLS.

Action Item for ALL MEMBERS:

Members need to double check their MLS Listings and ensure they remove any mention in the private remarks, office remarks, marketing remarks, and driving directions that mention: compensation, commission, and bonus(s) by August 15, 2024.

On August 15, 2024 the below fields will automatically be removed from Space Coast MLS and any data feeds:

Mandatory Bylaw Changes from National Association of Realtors®: Effective August 15, 2024

Notice is hereby given that the NATIONAL ASSOCIATION OF REALTORS® Board of Directors approved bylaw changes that local REALTOR® associations and MLSs are mandated to adopt, failure to adopt these changes places the Association Charter and Errors and Omissions Insurance at risk.

The Space Coast Association of REALTORS® and Space Coast Multiple Service Listing Bylaws provide that when the National Association of REALTORS® mandates a change to the Bylaws, the Board of Directors must review and approve the proposed changes, the Space Coast Association of REALTORS® and Space Coast Multiple Service Listing met on Wednesday, July 24,2024 and approved the mandatory changes.

We are required to notify the members of the mandatory change to the Bylaws and that no membership vote is required for National Association of REALTORS® mandated changes.

The revision of the Bylaws reflects the mandatory policy changes from the NATIONAL ASSOCIATION OF REALTORS® and re-defines the purpose, participation, removal of the offer of compensation, and defines cooperation.

A copy of the revised Bylaws can be found on the Association website here.

The language in GREEN is new and the language in RED has been deleted.

Article/Section 2: Purpose

A Multiple Listing Service(MLS) is a means by which Participants make blanket unilateral offers of compensation to other Participants (acting as subagents, buyer agents, or in other agency or non-agency capacities defined by law); by which cooperation among Participants is enhanced; by which information is accumulated and disseminated to enable authorized Participants to prepare appraisals analyses, and other valuations of real property for bona fide clients and customers; by which Participants engaging in real estate appraisal contribute to common databases; and is a facility for the orderly correlation and dissemination of listing information so Participants may better serve their clients and the public. Entitlement to compensation is determined by the cooperating broker’s performance as a procuring cause of the sale (or lease).

Article/Section 4: Participation

Any REALTOR® of this or any other Board or Association of REALTORS® who is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal, without further qualification, except as otherwise stipulated in these bylaws, shall be eligible to participate in Multiple Listing upon agreeing in writing to conform to the rules and regulations thereof and to pay the costs incidental thereto.* However, under no circumstances is any individual or firm, regardless of membership status, entitled to Multiple Listing Service membership or participation unless they hold a current, valid real estate broker’s license and offer or accept compensation to and from other Participants cooperate or are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property.** Cooperation is the obligation to share information on listed property and to make property available to other brokers for showing to prospective purchasers and tenants when it is in the best interests of their clients. Use of information developed by or published by a Board or Association of REALTORS® an Association Multiple Listing Service is strictly limited to the activities authorized under a Participant’s licensure(s) or certification and unauthorized uses are prohibited. Further, none of the foregoing is intended to convey participation or membership or any right of access to information developed by or published by a Board or Association of REALTORS® an Association Multiple Listing Service where access to such information is prohibited by law.

Mere possession of a broker's license is not sufficient to qualify for MLS participation. Rather, the requirement that an individual or firm offers or accepts cooperation and compensation cooperate means that the participant actively endeavors during the operation of its real estate business to list real property of the type listed on the MLS and/or to accept offers of cooperation and compensation made by listing brokers or agents in the MLS. share information on listed property and make available to other brokers for showing to prospective purchases and tenants when it is in the best interests of their clients(s). “Actively” means on a continual and ongoing basis during the operation of the participant's real estate business. The ‘'actively” requirement is not intended to preclude MLS participation by a participant or potential participant that operates a real estate business on a part-time, seasonal, or similarly time-limited basis or that has its business interrupted by periods of relative inactivity occasioned by market conditions. Similarly, the requirement is not intended to deny MLS participation to a participant or potential participant who has not achieved a minimum number of transactions despite good faith efforts. Nor is it intended to permit an MLS to deny participation based on the level of service provided by the participant or potential participant as long as the level of service satisfies state law.

The key is that the Participant or potential Participant actively endeavors to make or accept offers of cooperation and compensation cooperate with respect to properties of the type that are listed on the MLS in which participation is sought. Cooperation is the obligation to share information on listed property and to make property available to other brokers for showing to prospective purchasers and tenants when it is in the best interests of their clients. This requirement does not permit an MLS to deny participation to a Participant or potential Participant that operates a “Virtual Office Website” (VOW) (including a VOW that the Participant uses to refer customers to other Participants) if the Participant or potential Participant actively endeavors to make or accept offers of cooperation and compensation cooperate. An MLS may evaluate whether a Participant or potential Participant actively endeavors during the operation of its real estate business to offer or accept cooperation and compensation cooperate only if the MLS has a reasonable basis to believe that the Participant or potential Participant is in fact not doing so. The membership requirement shall be applied in a nondiscriminatory manner to all Participants and potential Participants.

Nonmember Participation Defined: (a) A nonmember applicant for MLS participation who is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal, shall supply evidence satisfactory to the MLS that he/she has no record of recent or pending bankruptcy; has no record of official sanctions involving unprofessional conduct; agrees to complete a course of instruction (if any) covering the MLS Rules and Regulations and computer training related to MLS information entry and retrieval, and shall pass such reasonable and non-discriminatory written examination thereon as may be required by the MLS; and shall agree that if elected as a Participant, he/she will abide by such rules and regulations and pay the MLS fees and dues, including the nonmember differential (if any), as from time to time established. Under no circumstances is any individual or firm entitled to MLS participation or membership unless they hold a current, valid real estate broker's license and cooperate and offer or accept compensation to and from other participants or are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property. Cooperation is the obligation to share information on listed property and to make property available to other brokers for showing to prospective purchasers and tenants when it is in the best interests of their clients. Use of information developed by or published by an association multiple listing service is strictly limited to the activities authorized under a Participant's licensure(s) or certification and unauthorized uses are prohibited. Further, none of the foregoing is intended to convey participation or membership or any right of access to information developed by or published by an association multiple listing service where access to such information is prohibited by law.

Mere possession of a broker's license is not sufficient to qualify for MLS participation. Rather, the requirement that an individual or firm offers or accepts cooperation and compensation cooperate means that the Participant actively endeavors during the operation of its real estate business to list real property of the type listed on the MLS share information on listed property to make property available to other brokers for showing to perspective purchasers and tenants when it is in the best interests of their client(s). and/or to accept offers of cooperation and compensation made by listing brokers or agents in the MLS. “Actively” means on a continual and ongoing basis during the operation of the Participant's real estate business. The ‘'actively” requirement is not intended to preclude MLS participation by a Participant or potential Participant that operates a real estate business on a part-time, seasonal, or similarly time-limited basis or that has its business interrupted by periods of relative inactivity occasioned by market conditions. Similarly, the requirement is not intended to deny MLS participation to a Participant or potential Participant who has not achieved a minimum number of transactions despite good faith efforts. Nor is it intended to permit an MLS to deny participation based on the level of service provided by the participant or potential participant as long as the level of service satisfies state law.

The key is that the Participant or potential Participant actively endeavors to make or accept offers of cooperation and compensation cooperate with respect to properties of the type that are listed on the MLS in which participation is sought. Cooperation is the obligation to share information on listed property and to make property available to other brokers for showing to prospective purchasers and tenants when it is in the best interests of their clients. This requirement does not permit an MLS to deny participation to a participant or potential participant that operates a “Virtual Office Website” (VOW) (including a VOW that the participant uses to refer customers to other participants) if the Participant or potential Participant actively endeavors to cooperate. make or accept offers of cooperation and compensation. An MLS may evaluate whether a Participant or potential Participant actively endeavors during the operation of its real estate business to cooperate offer or accept cooperation and compensation only if the MLS has a reasonable basis to believe that the Participant or potential Participant is in fact not doing so. The membership requirement shall be applied in a nondiscriminatory manner to all Participants and potential Participants.

All MLS Rules & Regulations and Bylaw changes are shown above and are effective August 15, 2024.

If you have any questions with regards to the mandated MLS Policy and Governing Document changes please don't hesitate to contact our Association Leadership Team and/or Board of Directors.