The National Association of Realtors MLS Policy Statement 8, also known as the MLS Clear Cooperation Policy, adopted by the national Realtor group last November, went into effect for all multiple listing services nationwide on May 1. The new NAR policy requires listing brokers who are participants in an MLS to submit their listing to the MLS within one business day of marketing the property to the public. Agents may promote a listing only within their brokerage - not with others on the MLS or outside of the brokerage.
NAR adopted the policy to address the growing use of off-MLS listings, also known as "pocket listings." NAR believes leaving listings outside of the broader marketplace excludes consumers and undermines the Realtor commitment to provide equal opportunity to all.
"Pocket listings exclude consumers they don't allow everyone access to the same information about a particular property," explained Mary Kay Groth, president of the Silicon Valley Association of Realtors. "Limiting access to a property does not promote cooperation in real estate because it excludes many prospective buyers. Most often the home will sell for a lower price than if a greater number of people had a chance to view each property."
Within the MLSListings service area, which includes the counties of San Mateo, Santa Clara, Santa Cruz, San Benito and Monterey, the Clear Cooperation Policy applies to one to four-unit residential property and vacant residential lots. It does not apply to commercial listings and new construction of five plus units. Brokers/agents can still take an exclusive listing, but they can only promote or advertise the listing within their brokerage. If advertised to the public or to an outside agent, the listing must be added to the MLS within one business day as an Active listing.
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.
MLSListings has launched a communication campaign to educate brokers and agents about the new rules. At a recent Silicon Valley Association of Realtors meeting, MLSListings Director of Compliance Robert Bustamante urged agents to communicate with their broker about the new policy. "Brokers, in turn, should counsel their agents, and agents counsel their sellers about what it means to have an 'exclusive' listing," said Bustamante.
If caught violating the rule, an agent must enter the listing as Active. Agents in violation will receive courtesy notices for violations with a copy sent to their broker or office manager. The fine for a violation is $500 and escalates until the property is listed or the NAR maximum of $15,000 is reached. Many MLSs are imposing fines upwards of $5,000.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.