MLS Listing Rules
The Multiple Listing Service, known as the MLS, is a computerized service for use by licensed real estate agents and appraisers. The New Jersey Multiple Listing Service, Inc. describes the service as "...organizational structure, policies, and systems needed for the cooperative sale of real estate." Private companies operate MLS programming and offer the computerized service to offices and agents in the U.S. States with dense metropolitan areas, such as California, operate a number of independent MLS programs.
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Access
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To gain access to the MLS, the manager of a real estate sales office must hold a real estate broker's license as well as membership in local and national real estate associations. Licensed appraisers may also have access to the MLS service. Membership requires payment of a branch fee as well as a monthly office and agent fee. Some states, such as Rhode Island, also charge a monthly administration fee, but the service allows access to real estate information for the entire state.
Language Compliance
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The MLS requires users to comply with a citation policy for listings. Failure to follow these language rules may result in fines for violators. Language abbreviations include symbols for active, sold, cancelled, leased, withdrawn and expired listings. Various notations for sold property include a "pending" status for property and also a "hold do not show" citation for properties not actively on the market, but not withdrawn. Sold properties may continue to be shown if the agent feels that the offer is not strong, and the citation, "back-up offers are being taken," may be used to attract other offers should the original buyer fail to perform.
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Legal Agreements
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The real estate broker, through the agent, must obtain written permission from the seller to allow posting the property on the MLS service. The MLS posting allows other real estate offices and agents easy access to information about the property. If the seller signs the agreement, the broker must post the property on the MLS within a set number of hours, which varies with the individual real estate board. This limitation ensures all board members have an opportunity to sell the property. It also prevents an office from "hoarding" a prime listing. California boards, for example, require posting to the MLS within 72 hours of signing the listing agreement. Fines are assessed when this rule is not met.
Mandatory Reporting
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In order for the service to remain a valuable research tool for the real estate market, listings must be kept accurate. Real estate brokers must supervise agents in the office to keep listings up to date regarding availability and sales status. California MLS rules require sales, defined as "recorded transfers of title of property," to be reported by the end of the next business day after escrow closes. The real estate board assesses fines when this rule is not followed.
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References
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