Multiple Listing Service Rules

The Multiple Listing Service is more commonly referred to as MLS. This is an online database that real estate agents use to input property data when selling properties and searching data for buyers when assisting individuals in a home purchase. While this is a very powerful tool for real estate agents today, the MLS is governed by some very specific rules and regulations in the interest of protecting both buyers and sellers.

Property Information

When inputting data into MLS, it is important that real estate agents verify their own data. Many MLS systems will allow Realtors to clone or copy previous information used when the property was previously listed for sale. However, it is common for many mistakes to be made in reference to square footage, school zoning information and room measurements. All of these pieces of information must be independently verified by the real estate agent listing the property for sale. Placing incorrect or unverified data into the MLS service can make the agent liable for lawsuit, fines and other disciplinary action.

Other pieces of data that need verification is the prior year property tax data as well as the correct legal description of the property. Thankfully this can be easily verified in most areas online or by a quick visit to the county clerk's office where the property is located.

Advertising Phrases

Another important rule to follow when inputting MLS listings are the phrases used to advertise the property. All advertising must not violate the Equal Housing Opportunity act. Phrases like "perfect home for young family" are prohibited as that can be considered discriminatory to other age groups. Other factors that cannot be advertised are phrases pertaining to economic class, ethnicity or employment profiles of individuals in a neighborhood. This is called "steering" and is an illegal practice for agents.

Agents placing any type of questionable advertising into the MLS will be automatically flagged and given 48 hours to change the listing or be faced with disciplinary action from their local board as well as their brokerage. Agents that are continually flagged for advertising violations could lose their license.

Price Changes

Any price changes made in MLS on properties listed for sale must have the express permission of the seller attached to it. This is supported by an amendment to a listing agreement where the seller agrees to a price change or property status update. Without the amendment when performing a price change, an agent opens himself up to personal liability should the data not be approved by the seller prior to the change being made. Specific information regarding what is required of Realtors can be found at the local board of Realtors in the area where the property is located.