MLSListings Adopts Clear Cooperation Policy
On April 15, 2020, the MLSListings Board of Directors adopted the California Association of REALTORS® (C.A.R.) model rule changes to implement the National Association of REALTORS® (NAR)-mandated MLS policy changes known as “Clear Cooperation” (i.e., Policy Statement 8). Clear Cooperation Policy (CCP) rule enforcement begins on May 1, 2020.
CCP OVERVIEW
Under the new rule, brokers and agents are still able to take an “office exclusive” listing. If so, they must still submit the signed form to the MLS or use the online exclusion feature in lieu of listing.
However, once a listing is excluded under the new rule, an agent can only promote the listing for sale within their own brokerage. If they promote, communicate, or advertise it in any way outside of their brokerage, they must add it to the MLS in Active status within one business day.
- This rule is focused on “excluded” or “exclusive” or “waivered” listings but ANY advertising of a property not on the MLS triggers the 1 business day requirement
- Listings entered as Coming Soon on the MLS may only be advertised as Coming Soon off the MLS
- MLSListings’ Compliance will provide a courtesy warning for a period of time. Fine amount is $500.00 for the first instance but will continue to escalate until the violation is cured and the listing is added. Fines for Showing violations have increased to $500.00 and are effective immediately.
Background
The National Association of REALTORS®’ Board of Directors approved MLS Statement 8.0, also known as the Clear Cooperation policy, at its meeting in San Francisco, November 11, 2019
The policy requires listing brokers who are participants in a multiple listing service to submit their listing to the MLS within one business day of marketing the property to the public.
NAR’s MLS Technology and Emerging Issues Advisory Board proposed the policy as a way to address the growing use of off-MLS listings. The advisory board concluded that leaving listings outside of the broader marketplace excludes consumers, undermining REALTORS®’ commitment to provide equal opportunity to all. The policy doesn’t prohibit brokers from taking office-exclusive listings, nor does it impede brokers’ ability to meet their clients’ privacy needs.
What does Clear Cooperation mean?
The Clear Cooperation Policy (CCP) means that a broker or agent is still able to take an “office exclusive” listing. If so, they must still submit the signed form to the MLS or use the online exclusion feature in lieu of listing.
However, once a listing is excluded under the new rule, an agent can only promote the listing for sale within their own brokerage. If they promote, communicate, or advertise it in any way outside of their brokerage, they must add it to the MLS in Active status within one business day.
What does all this mean to me and what has changed?
Put simply, you must list on the MLS by the next business day if you are advertising the property for sale.
If you advertise an excluded listing outside of your brokerage for sale, you will need to enter the listing on the MLS within one business day. Active status satisfies this requirement on the MLS.
What is a Seller Exclusion?
A Seller Exclusion is instruction from the seller to not advertise the property for sale on the MLS.
What does it mean if I file an exclusion with the MLS?
Once a listing is excluded under the new rule, an agent can only promote the listing for sale within their own brokerage. If they promote, communicate, or advertise it in any way outside of their brokerage, they must add it to the MLS for cooperation within one business day.
What is considered advertising?
Public marketing or advertising includes, but is not limited to, conveying or displaying any information about the property or its availability for sale through or on any:
- windows, signs,
- public-facing websites,
- social media,
- brokerage or franchise-operated websites (including IDX and VOW),
- digital communications marketing (ex: email, text or phone blasts, social media messaging),
- multi-brokerage or franchise listing sharing networks,
- flyers or written material or on any applications available to the public or
- through conducting an open house.
What does “add it to the MLS for cooperation” mean?
Active or Coming Soon in the MLS counts for being “in the MLS for cooperation.”
If you are caught violating the rule (i.e., advertising an exclusive listing outside of your brokerage), you must add it as Active on the MLS. You can select No Internet to minimize distribution and manage showings by appointment only, no lockbox, etc.
How does Coming Soon work under this new rule?
Coming Soon works the same as it always has: a property may be added as Coming Soon within 3 days of signing the listing agreement and must be in compliance with MLS rules.
If a property is in Coming Soon on the MLS can I put a Coming Soon sign in my yard?
Yes, if no exclusion was filed and it is on the MLS.
Can I show and sell in Coming Soon?
Yes, provided you allow all brokers and agents the opportunity to bring a buyer
Can I advertise a Coming Soon listing as being For Sale off the MLS?
No, it can only be advertised as Coming Soon.
What property types are covered by this rule?
This rule applies only to Residential for sale listings within the 5 counties in the MLSListings service area. These are 1-to-4 unit residential property and vacant residential lots.
Commercial, lease and new construction properties of 5+ units, are exempt.
What listing agreement types are under this rule?
Exclusive Right to Sell or Seller Reserved (formerly Exclusive Agency) listings.
When does this new rule for Clear Cooperation begin?
The rule enforcement begins May 1st, 2020.
There will be an “educational period” of time where compliance with the rule is required but fines will be the last used effort to compel cooperation with the rule. Brokers and Office Managers are part of the notification process.
Warnings will be issued for educational purposes but the expectation is that listing agents will comply with the rules.
What is the fine for violating the rule?
The agent will be notified in writing (with a copy to their Broker or Office Manager) and instructed to list the property on the MLS within 1 business day.
- If not listed, the agent is assessed a fine of $500.00 and instructed they still must add it to the MLS.
- If still not added within another business day, the agent is assessed a fine of $1,000, which doubles each business day until the NAR limit of $15,000 is reached or until the listing is submitted.
- Such amounts are cumulative, with each escalation added to the total amount due.
Note: Other MLSs are fining upwards of $5,000 per occurrence.
How can I get additional questions answered?
Additional Resources
