The MLS Policies Task force met many times throughout 2018 to review and update several rules related to the entering of listings. Their purpose was:
- To examine current policies & behaviors relating to the entry of property listings into the MLS
- To examine the current fine and penalty structure of MLS rules & violations
- To look at existing Coming Soon policies in other markets in an effort to establish guidelines of our own.
After many months of deliberating, the task force's recommendations were sent to the Board of Directors and approved. The following new rules will take effect January 1, 2019.
NEW MLS LISTING STATUS: Delayed Entry Status
A new status will be created in the MLS wherein an agent can secure their listing agreement with their client even when the client, or the property, are not ready for advertising. This could include Seller(s) being out of town, needing to get repairs made, etc. Listing agents can delay the live date of a listing, with the Seller(s) signed consent, with a 30-day cap and option to renew the Delayed Entry Status. Days on market will not count in Delayed Entry and will not be publicly searchable.
During this status period, no showings may be scheduled and the listing agent may not market the property. The Seller consent form will include language that explicitly states that the seller and agent have a signed listing agreement and are therefore in a formal listing agreement. The Seller(s) will be made aware that any inquiries from other agents must be directed to listing agent so as to not violate the Code of Ethics.
The listing will automatically turn to an ACTIVE status on the date provided on the Seller consent form. Once in ACTIVE status, the listing agent may move the listing to a Withdrawn status with their Seller(s) consent. The Delayed entry status may be extended or ended early with the Seller(s) consent via a new signed or amended and initialed Delayed Entry Form being submitted to MLS staff. The consent form will be required at the same time the MLS Property Validation Form (formerly called the Property Change Report) is sent in to MLS staff.
How It Works:
- Agent will sign Exclusive Right-to-Sell agreement with their client obtaining all necessary signatures. At this time, the Seller Delayed Entry Authorization form will also be filled out, date for active status written in and be signed by the client.
- The listing agent, or authorized admin, will enter the listing according to current MLS policies into the MLS system within the 72-hour time frame and leave it as an incomplete listing. They will then simultaneously send the Seller Delayed Entry Authorization form to the MLS staff along with the MLS Property Validation Form.
- Once MLS staff has received the Seller Delayed Entry Authorization form the MLS staff member will place the listing in the DE status.
- When the Active Date listed on the Seller Delayed Entry Authorization form is reached in the MLS, the property will automatically turn to an Active Status and Days on Market will begin.
- Prior to the Active Date being reached, the listing agent, broker or authorized admin may extend or end the Delayed Entry status period by submitting an updated Seller Delayed Entry Authorization form signed or initialed by the client and turned into MLS staff before the listing goes active.
- Following the Active Date being reached, the listing agent can then move the property to Withdrawn Status should that be the desired status of their client. This will also need to be done by MLS staff via the Property Validation Form.
CLARIFYING RULES ON COMING SOON LISTINGS
Beginning in January, any property that utilizes a “coming soon” sign must follow the following rules or will be considered in violation of MLS Rules and Policies. There is no coming soon status. Any property coming soon is a withdrawn listing and must be in the MLS as such.
- The property cannot be considered Coming Soon until the Seller(s) sign and agree to all terms of the new Coming Soon Disclosure Form. This form must be signed by the Seller(s) and turned into MLS staff so that the property may be classified by staff as Withdrawn status, which is the only status a coming soon property can exist in. This form must be turned in with the MLS Property Validation form within the 72-hour listing period BEFORE A SIGN CAN BE PLACED.
- The Coming Soon period can only exist for no more than 5 days. Any property found to have a coming soon sign on it extending past the 5-day period could be subject to violation fines.
- Coming soon properties cannot be shown by any agent during the 5-day period as they require being placed in Withdrawn status, which does not allow showings. Showings may only commence when the listing is moved to an Active status.
**Fines for violations will match that of Delayed Entry Status
VIOLATIONS FOR DELAYED ENTRY AND COMING SOON
Violations of Delayed Entry Policies:
Policing: There are four separate violations for Delayed Entry properties that may occur.
- Failure to turn in the Seller Delayed Entry Authorization form within the 72-hour listing period.
- If showings by either the Listing and/or a Buyer Agent are allowed prior to the Active status date, both parties are in violation and may be fined as determined by MLS policies.
- The Listing Agent in any public or private facing digital or traditional media manner advertised the property, or there was a sign of any kind in the yard or near the property.
- The Seller mentions agent in any form on any marketing publicly.
- First offense will be a written warning to Agent and Broker from MLS Staff.
- Second offense will be a $1,000 fine.
- Third offense will be a 15-day suspension of Association and MLS services.
- Fourth and subsequent offenses will be a 30-day suspension of Association and MLS services.
Appeals of these above penalties will be handled in the procedures defined in the Dayton REALTOR Multiple Listing Service violation policy.
The reporting party must provide the property address, a detailed description of the violation, the parties involved and any proof necessary to issue a fine. Violations will be sent to firstname.lastname@example.org.
Violations of Coming Soon Policies:
- Not submitting the Coming Soon Disclosure Form to MLS staff in order for the property to be moved to Withdrawn status.
- If showings by either the Listing and/or a Buyer Agent are allowed prior to the Active status date, both parties are in violation and may be fined as determined by the MLS Committee.
- If the “coming soon” sign or any language promoting “coming soon” is not removed from the listing following the 5 day period or in any marketing - the listing agent could be subject to violation fines.
**Fines and penalities will match that of Delayed Entry Status.
ADJUSTMENT TO 72-HOUR LISTING RULE
Effective January 1, 2019, the 72-hour listing period will include all weekdays, including Saturday and Sunday, in which a property must be entered and listed in the MLS. Only nationally recognized holidays will be excluded from the 72-hour rule.
NEW RULE: If a listing is taken on a Friday, it must be in the MLS by Monday.
CHANGE IN MLS FINE STRUCTURE
Effective January 1, 2019, the MLS Fines and Penalty Structure will be as follows:
Following submission of an alleged rule violation, the MLS Department shall send a “Warning” email notice to the listing Participant (Broker) with a copy to the listing Subscriber (Agent) within 24 hours stating the listing number, the address of the listing, the nature of the violation, and the appropriate way to correct the violation.
A second and third “Warning” notice shall be sent out to the listing (Broker) Participant with a copy to the listing (Agent) Subscriber each additional 24-hour period the listing violation remains in an Active, pending-show for backup, pending or withdrawn status in the MLS.
If the violation is not corrected by the listing Participant or Subscriber within 24 hours following the third “Warning” notice (72 hours), the MLS Department shall send the MLS Participant with a copy to the MLS Subscriber a Notice of Violation via email and levy a “Fine” per violation to the MLS Subscriber per the following escalating fine structure:
- For failure to correct violation after 3 warnings are issued, first fine is billed to account for $100.00.
- For failure to correct violation 72 hours after first fine is issued will result in an additional $100.00 fine.
- Fine escalates $100.00 every additional 72 hours and caps at $500.00
- After $500.00 cap is reached, MLS service for (Agent) Subscriber will be suspended until fine is paid.
ADJUSTMENT TO ACTIVE PENDING STATUS NAME
Effective January 1, 2019 the Active Pending Status will be renamed to “Pending Show for Backup.”