A READER WRITES:
Why isn't the MLS issuing fines for
Clear Cooperation?
Dear Stellar MLS,
Last week I was out showing properties with my buyers. As we were leaving the subdivision, we saw a brokerage for-sale yard sign for a home only a few houses down from the home I had just shown them. My buyers asked me why that home was not on our showing schedule and if they could see it. I immediately went into Matrix to pull the showing instructions, but this property was not in the MLS, and I could not reach the listing agent for more information.
I had to tell my buyers that the property was not available for showings yet but that I would follow up with them as soon as I found out more info. My buyers were confused, and I looked as though I was not handling their search thoroughly. I know it’s against the Clear Cooperation rule to market a property without it being in the MLS, so I reported the agent, but I learned later through a mutual colleague that they never got fined. What gives?!
-Agent Missing Out
Dear Agent Missing Out,
We understand your frustration because by not putting this property into the MLS, the agent you reported is making it much more difficult for other agents to help their buyers find the right home and potentially earn commission on this property – they may also be missing out on top offers for their sellers. The scenario you have shared goes against the whole purpose of an MLS – to uphold cooperation and ensure fair compensation for agents.
That said, it’s also possible that you and your buyers happened to come upon the yard sign that day, and the next day the property was input into the MLS, which is within the Clear Cooperation guidelines.
Your question raises a good point about reporting these suspected violations legitimately, so fines are issued when warranted. Unfortunately, the perception of CC rules being broken without consequence is taking root in our industry when many violations reported are within the timeframe guidelines of the rule. As you know, the Clear Cooperation rule was put into place by NAR® to help ensure that a property is available for all MLS participants to view equally, not just a select few.
The NAR® Clear Cooperation Rule States:
Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants. Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, brokerage website displays (including IDX and VOW), digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public.
Since Stellar MLS can’t see every instance of rogue public marketing, we rely on you to let us know when other agents are violating the rules. When you’re reporting an agent for publicly marketing a listing that is not in the MLS, here are a few things to keep in mind.
- The Clear Cooperation rule states that the listing broker must submit the listing to the MLS within one business day of marketing a property to the public. If you see public marketing, it could be that this agent will put this listing in the MLS within one business day, and it will not violate the rules. Remember, one business day does not include the weekends, so if a property is marketed on a Friday, as long as it’s in the MLS by Monday, the rules have not been violated.
- When you see a violation, report it ASAP! We start the one business day clock as soon as we get your report, so the longer you wait, the longer the violator has!
- Stellar MLS does NOT alert violators when they have been reported. Keep in mind, that if you talk to the agent who has violated the rule before reporting them, they will still have one business day from when they are reported to put their property in the MLS.
Download our full One Business Day handout here!
Finally, thank you for reporting this person. We want cooperation and fair compensation as much as you do and wish we could see every instance of public marketing without MLS entry as soon as it happens. Since the MLS can’t have eyes everywhere, we rely graciously on agents like you to help maintain our cooperation rules.
Sincerely,
The Stellar MLS Admin & Data Integrity Team