MLS Rule Changes Effective March 1, 2022

MLS Rules & Regulations Update

MLS Rule Changes – Effective March 1, 2022

Below are mandatory MLS changes from the National Association of Realtors® as well as a local rule change that has been adopted to Space Coast Association of Realtors® MLS Rules and Regulations. These changes will take effect March 1, 2022.

Click here to view word-by-word notice of changes with fines included (new language is underlined, ~~strikethrough~~ is removed language. Click here to see the current MLS Rules and Regulations with these changes incorporated.

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

Added Section 4.5 – Services Advertised as “FREE”: This rule states that Brokerages and Agents must not represent that their services to a client or customer are free or available at no cost to their clients unless there will be no financial compensation from ANY SOURCE for those services. For example, as a buyer’s agent you cannot state your services are free, you will be receiving compensation from the close of a successful transaction by representing the buyer’s side. (See MLS Rules and Regulations for Fines)

Added Section 5.4 – Display of Listing Brokers Offer of Compensation: This rule states that once a listing is filed with the MLS the listing brokers offer of compensation will now be visible on MLS consumer-facing websites (IDX). With the display of offer of compensation there is also a disclaimer that must be displayed on the public facing MLS. The disclaimer will state: The listing broker’s offer of compensation is made only to participants of Space Coast MLS as well as Florida Realtors® MLS Advantage Participants.

As a reminder: the MLS is your only guaranteed offer of compensation. By being a member of Space Coast Association of Realtors® you are guaranteeing your cooperation and offer of compensation to other members of Space Coast Association of Realtors®. Space Coast Association of Realtors® also participants in the statewide MLS program Florida Realtors® MLS Advantage, what this means is you also guarantee your cooperation and offer of compensation to all Florida Realtors® MLS Advantage Participants (You can view that list here: https://www.floridarealtors.org/tools-research/mls-advantage).

Members do not need to take action on this mandatory policy change as our MLS vendor will start pushing offers of compensation starting March 1, 2022

Added Section 1.24 – Property Addresses: At the time of filing a listing you must include a property address. If an address doesn’t exist a parcel identification number can be used. Where an address or parcel identification number are unavailable, the information filed with the MLS must include a legal description of the property sufficient to describe its location. (See MLS Rules and Regulations for Fines)

Overview of locally adopted MLS Change:

Revised Section 2.7 – Advertising of a Listing Filed with the MLS: This rule has always stated that you cannot advertise a listing that is not yours without the prior consent of the listing broker. Effective March 1, 2022, a change will be made in FlexMLS to allow for blanket approval for any member to advertise listings in the MLS. This will be a YES or NO Mandatory field on each individual listing and will automatically default to NO. Listing agents with the brokers approval may choose to give one, all, or none of their listing’s blanket approval. (See MLS Rules and Regulations for Fines)

A few key details:

Once the listing is marked YES for blanket approval you CANNOT rescind the blanket approval authorization.
“Courtesy Of” with the listing agents name and brokerage must be included in the verbiage of the advertisement.
No changes or manipulation of the listing data may occur.
The advertising agent cannot portray the listing as their own or belonging to their office unless that is a true representation.
Must follow State applicable advertising rules.

Overview of Mandatory MLS Changes from National Association of Realtors® that take effect September 1, 2022:

Revisions to Sections 18 & 19 (IDX & VOW): Listing broker attribution will now include an email or phone number in a reasonably prominent location and in a readily visible color and typeface not smaller than the median used in the display.

FAQ for National Association of Realtors® Mandatory MLS Changes:

Services Advertised as “FREE”:

Question: Are MLS Participants and Subscribers prohibited from offering free CMAs, BPOs or other valuations and services to consumers?
Answer: No. MLS Participants and Subscribers can continue to offer services for free if they do not receive compensation from any source for those services. Even though a broker or agent may not charge a client or customer, they cannot represent those services as free if they will receive compensation from another source such as their listing broker.

Question: Why was this Policy adopted?
Answer: It reinforces Participants and Subscribers' ethical duty to be truthful and accurate in their advertising, marketing, and other representations.

Display of Listing Broker’s Offer of Compensation:

Question: Why was this policy adopted?
Answer: This policy reinforces transparency for clients and consumers working with MLS participants and subscribers in a real estate transaction.

Question: Does the policy apply to any additional compensation that is being offered by the Participant?
Answer: Yes, if the additional compensation is predicated on the receiving cooperating broker being the procuring cause of the resulting successful transaction. The information about the offer of compensation must be as accurate to what appears in the MLS.

Question: If a Participant or Subscriber does not have a website or use IDX or VOW display, do they now have to?
Answer: No, the policy accounts for the fact that all brokers and agents do not have websites or use IDX or VOW display. Participants and subscribers can determine how to best provide compensation information to their clients and consumers.

Property Addresses:

Question: Why is it important for MLSs to require a property address, parcel identification number, or legal description of the location at the time the listing is filed with the MLS?
Answer: The property's location is a key piece of listing content that Participants and Subscribers use to serve the interests of their clients and customers. Disclosure of this information at the time of filing the listing is consistent with the MLS's core tenets of efficiency, transparency, and collaboration.

Question: Must the new policy apply to commercial MLSs or to the submission of commercial property types in MLSs that accept both residential and commercial listings?
Answer: No. The new policy statement is specifically required to apply to residential listings. It is within an MLS's local discretion to require a commercial property listing have an address, parcel identification or legal description of the location at the time of filing.

Question: What is an example of a legal description?
Answer: A legal description is a written way to identify the property location. This description can usually be found in legal documents such as the property deed, tax records, or mortgage documents. For reference, here is an example of what a legal description may look like: LEGAL DESCRIPTION OF PROPERTY. LOT 9, IN THE SOUTHEAST 1/4 OF SECTION 4, TOWNSHIP 30 SOUTH, RANGE 16 EAST, ACCORDING TO THE PLAT OF PINELLAS GROVES, INC., RECORDED IN PLAT BOOK 1, PAGE 55, PUBLIC RECORDS OF PINELLAS COUNTY, FLORIDA, LESS THE WEST 150 FEET THEREOF AND ALSO LESS THAT PART LYING WITHIN 120 FEET OF THE SURVEY LINE OF STATE ROAD S-688, SECTION 15120, AS DESCRIBED IN CLERK'S INSTRUMENT No. 260901B, OFFICIAL RECORDS BOOK 2081, PAGE 593, PINELLAS COUNTY RECORDS. Source: https://www.lawinsider.com/clause/legal-description-of-property(link is external)

Revisions to Listing Broker Attribution:

Question: Who decides which email or phone number to use?
Answer: The policy calls for the listing Participant (i.e., principal broker/MLS Participant), to provide the email address or phone number that they wish to have displayed as part of the listing attribution in IDX and VOW.

Question: If the MLS already displays an email address or phone number that the listing Participant had provided to be displayed with their listings, would this comply with policy?
Answer: Yes, but the listing Participant is entitled to change this information if they wish. Ultimately, the listing Participant will decide which email address or phone number to use and if that will be the same or different for each of the brokerage's listings. The email or phone number provided can be that of the firm, the broker, the agent, or other source to obtain property information. The intent is to ensure that the listing Participant can provide consumers the best contact information for the listing(s).

Question: Is this a mandatory requirement when displaying properties under the IDX rules?
Answer: Yes. Existing policy requires disclosure of the listing brokerage. This expands it to also require an email address or phone number as provided by the Listing Participant.

Question: When is the implementation deadline for this Policy change?
Answer: While the typical implementation deadline is March 1, 2022, for MLS policy changes, the deadline for implementation for this policy change has been extended to September 1, 2022.

MLS Rules & Regulations

All MLS Rules & Regulation changes are shown above and are effective March 1, 2022.

If you have any questions with regards to the MLS Rules please don't hesitate to contact our Association Leadership Team, MLS Committee and/or Board of Directors.