January 24, 2008

MLS/Computer and Business Technology Committee

Proposed Revisions of C.A.R. Model MLS Rules  [Mandatory]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, Section 10.1 Reporting of Sales to incorporate NAR mandated change.Recommendation:  That CAR Model MLS Rule 10.1be revised as set forth in these papers.Background Information:The change at issue in this paper is designed to lessen complications arising when the cooperating broker is put in a position to report status changes to the MLS.  This reporting conflict occurs when the cooperating broker has been either instructed by the listing broker to deal with the seller directly or has dealt with the seller directly after being unable to reach the listing broker withina specified time period in accordance with Model MLS Rule 9.1. ModelMLS Rule 9.1 Showings and Negotiations provides:“Appointments for showings and negotiations with the seller for the purchase of listed property filed with the service shall be conducted through the listing broker except under the following circumstances:(a) the listing broker gives the cooperating broker specific authority to show and/or negotiate directly with the seller, or(b) after reasonableeffort and no less than 24 hours, the cooperating broker cannot contact the listing broker or his representative. However, the listing broker, at his option, may preclude such direct negotiations by the cooperating broker by giving notice to all participants through the MLS.In the event all showings and negotiations will be conducted solely by the seller, the listing broker shall clearlyset forth such fact in the listing information published by the service.”In the event that the cooperating broker has conductednegotiations under Model MLS Rule 9.1 (a) or (b), Model MLS Rule 10.1 then requires the cooperating broker to take on reporting obligations.  The problem with this shift is that most MLSs use a “broker load” system of data entry, and thusthe cooperating broker can not access the property listing to make the status changes. To better manage this conflict, reinforcelisting broker responsibilities and conform to new NAR-mandated policy, the proposed rules change would instead require the cooperating broker to report the sale to the listing broker who then has the ultimate responsibility to report the sale to the service.  This change makes sense technically, as well as philosophically, as it keeps the listing broker responsible for all reporting requirements.Again, the changes outlined above are mandatory for compliance with NAR policy, and must be incorporated into the C.A.R. Model MLS Rules.  C.A.R. staff has also added languageto clarify that the selling price, as well as the sold status, must be input.Proposed Rules Changes:  The proposed amendment to the C.A.R. Model MLS Rules is set forth in underline and strikeout as follows:

10.1  Reporting of Sales.   Listings with accepted offers shall be reported to the MLS or input into the MLS database as “pending” within 24 hours of the acceptance by the listing broker unless the negotiations were carried on under Section 9.1 (a) or (b), in which case, the cooperating broker shall notify the listing broker of the “pending” status within XX hours after acceptance, whereby the listing broker shall then report or input the status change to the MLS within XX hours of receiving notice from the cooperating broker. report to the MLS or input the listing in the MLS as “pending” and send a copy of the listing’schanged status to the listing broker within 24 hours after acceptance.  The listing shall be published on the MLS as pending with no price or terms prior to the final closing.  Upon final closing, the listing broker shall report or input the listing in the MLS as “sold” and report the selling price within 24 hours of the final closing date unless the negotiations were carried on under Section 9.1 (a) or (b), in which case, the cooperating broker shall notify the listing broker of the “sold” status and selling price within XX hours after the final closing date, whereby the listing broker shall then report or input the status change and selling price to the MLS within XX hours of receiving notice from the cooperating broker.  Listings which were not input into the MLS as a result of the seller’s instructions may be input into the MLS “sold” data at the listing broker’s option.

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Proposed Motion: (If approved by the MLS Committee)  That, CAR Model MLS Rule 10.1 be amended as set forth above, subject to NAR approval.

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