C.A.R. Issues Briefing Paper
October 19, 2006
MLS/Computer and Business Technology Committee
Proposed Revisions of C.A.R. Model MLSRules The following is for study only and has NOT been approved by the MLS/Computer and Business Technology Committee, Executive Committee, or the Board of Directors.Issue: Revision of the C.A.R. Model MLS Rules regarding Section 2.0 Purpose and Sectio n 13.6 (Lockbox) WrittenAuthority to incorporate NAR mandated changes.Recommendation: That CAR Model MLS Rules 2.0 and 13.6 be revised as set forth in these papers.Background Information:Amongst the changes set forth in the 2006 NAR MLS Handbook, NAR expanded the definition of an MLS (as set forth in underline) to include “a means by which information is accumulated and disseminated to enable authorized participants to prepare appraisals, analyses and other valuations of real property for bonafide clients and customers.” The impetus for this revision was brokers who wanted to be able to utilize MLS data to service corporate client companies evaluating a particular market and/or area, including housing, for business expansion. To accommodate this practice, it was determined that the previous definition of appraisals and other valuations of real property had to be expanded to include “analyses,” yet also needed to be restricted to “bonafide clients and customers.”NAR’s definition of an MLS also includes a statementthat “Entitlement to compensation is determined by the cooperating broker’s performance as a procuring cause of the sale or lease.” With regard to lockbox policy, another change set forthin the 2006 NAR MLS Handbook provides that, “Inclusions in MLS compilations cannot be required as a condition of placing lockboxes on listed property.” It was added to the statement requiring written authority from the seller for a lockbox to be placed on the property.The amendments outlined above are mandatory for compliance with NAR policy, and must be incorporated into the C.A.R. Model MLS Rules.Proposed Rules Changes: The proposed additional language to the C.A.R. Model MLS Rules is set forth in underline as follows:
2. PURPOSE. A Multiple Listing Service is a means by which authorized MLS broker participants establish legal relationships with other participants by making a blanket unilateral contractual offer of compensation and cooperation to other broker participants; by which information is accumalated and disseminated to enable authorized participants to prepare appraisals, analyses and other valuations of real property for bonafide clients and customers; by which participants engaging in real estate appraisal contribute to common databases; and is a facility for the orderly correlation and dissemination of listing information among the participants sothat they may better serve their clients, customers and the public. Entitlement to compensation is determined by the cooperating broker's performance as a procuring cause of the sale or lease.
...........................................................13.6 Written Authority. Participants and subscribers shall not place a lockbox on a property without written authority from the seller and occupant if other than the seller. Inclusions in MLS compilations cannot be required as a condition of placing lockboxes on listed property.Proposed Motion: (If approved by the MLS Committee) That, subject to NAR approval, the CAR Model MLS Rules 2 and 13.6 be amended as set forth above.
