Where the word MLS Member is used in this Code and Preamble, it shall be deemed to include associates. While the Code of Ethics establishes obligations that may be higher than those mandated by law, in any instance where the Code of Ethics and the law conflict, the obligations of the law must take precedence.
PREAMBLE
Under all is the land. Upon its wise utilization and widely allocated ownership depends the survival and growth of free institutions and of our civilization. MLS Members should recognize that the interests of a nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.
Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which MLS Members should dedicate themselves, and for which they should be diligent in preparing themselves. MLS Members, therefore, must be zealous in the maintenance and improvement of the standards of their calling and share with their fellow MLS Members a common responsibility for its integrity and honor.
In recognition and appreciation of their obligations to clients, customers, the public, and each other, MLS Members continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession. MLS Members having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of MLS Members.
Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, MLS Members urge exclusive representation of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. In instances where their opinion is sought, or where MLS Members believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage or gain.
The term MLS Member has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal.
In the interpretation of this obligation, MLS Members can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, “Whatsoever ye would that others should do to you, do ye even so to them.”
Accepting this standard as their own, MLS Members pledge to observe its spirit in all of their activities and to conduct their business in accordance with the tenets set forth below.
DUTIES TO CLIENTS AND CUSTOMERS
ARTICLE 1
When representing a buyer, seller, homeowner, tenant, or other client as an agent, MLS Members pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve MLS Members of their obligation to treat all parties honestly. When serving a buyer, seller, property owner, tenant or other party in a non-agency capacity, MLS Members remain obligated to treat all parties honestly.
- Standard of Practice 1-1
MLS Members, when acting as principals in a real estate transaction, remain obligated by the duties imposed by the Code of Ethics.
- Standard of Practice 1-2
The duties the Code of Ethics imposes are applicable whether MLS Members are acting as agents or in legally recognized non-agency capacities except that any duty imposed exclusively on agents by law or regulation shall not be imposed by this Code of Ethics on MLS Members acting in non-agency capacities.
As used in this Code of Ethics, “client” means the person(s) or entity(ies) with whom a MLS Member or a MLS Member’s firm has an agency or legally recognized non-agency relationship; “customer” means a party to a real estate transaction who receives information, services, or benefits but has no contractual relationship with the MLS Members or the MLS Member’s firm; “prospect” means a purchaser, seller, tenant, or homeowner who is not subject to a representation relationship with the MLS Members or MLS Member’s firm; “agent” means a real estate licensee (including brokers and associates) acting in an agency relationship as defined by state law or regulation; and “broker” means a real estate licensee (including brokers and sales Associates) acting as an agent or in a legally recognized non-agency capacity.
- Standard of Practice 1-3
MLS Members, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.
- Standard of Practice 1-4
MLS Members, when seeking to become a buyer/tenant representative, shall not mislead buyers or tenants as to savings or other benefits that might be realized through use of the MLS Member’s services.
- Standard of Practice 1-5
MLS Members may represent the seller/homeowner and buyer/tenant in the same transaction only after full disclosure to and with informed consent of both parties.
- Standard of Practice 1-6
MLS Members shall submit offers and counter-offers objectively and as quickly as possible.
- Standard of Practice 1-7
When acting as listing brokers, MLS Members shall continue to submit to the seller/homeowner all offers and counter-offers until closing or execution of a lease unless the seller/homeowner has waived this obligation in writing. MLS Members shall not be obligated to continue to market the property after an offer has been accepted by the seller/homeowner. MLS Members shall recommend that sellers/homeowners obtain the advice of legal counsel prior to acceptance of a subsequent offer except where the acceptance is contingent on the termination of the pre-existing purchase contract or lease.
- Standard of Practice 1-8
MLS Members, acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers and counter-offers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing. MLS Members, acting as agents or brokers of buyers/tenants, shall recommend that buyers/tenants obtain the advice of legal counsel if there is a question as to whether a pre-existing contract has been terminated.
- Standard of Practice 1-9
The obligation of MLS Members to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law. MLS Members shall not knowingly, during or following the termination of professional relationships with their clients:
- reveal confidential information of clients; or
- use confidential information of clients to the disadvantage of clients; or
- use confidential information of clients for the MLS Member’s advantage or the advantage of third parties unless:
- clients consent after full disclosure; or
- MLS Members are required by court order; or
- it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or
- it is necessary to defend a MLS Member or the MLS Member’s employees or associate against an accusation of wrongful conduct.
Information concerning latent material defects is not considered confidential information under this Code of Ethics.
- Standard of Practice 1-10
MLS Members shall, consistent with the terms and conditions of their real estate licensure and their property management agreement, competently manage the property of clients with due regard for the rights, safety and health of tenants and others lawfully on the premises.
- Standard of Practice 1-11
MLS Members who are employed to maintain or manage a client’s property shall exercise due diligence and make reasonable efforts to protect it against reasonably foreseeable contingencies and losses.
- Standard of Practice 1-12
When entering into listing contracts, MLS Members must advise sellers/homeowners of:
- the MLS Member’s company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities;
- the fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/homeowners may represent the interests of buyers/tenants; and any potential for listing brokers to act as disclosed dual agents, e.g. buyer/tenant agents.
- Standard of Practice 1-13
When entering into buyer/tenant agreements, MLS Member must advise potential clients of:
- the MLS Member’s company policies regarding cooperation;
- the amount of compensation to be paid by the client;
- the potential for additional or offsetting compensation from other brokers, from the seller or homeowner, or from other parties; and
- any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g. listing broker, subagent, homeowners’ agent, etc.
- Standard of Practice 1-14
Fees for preparing appraisals or other valuations shall not be contingent upon the amount of the appraisal or valuation.
- Standard of Practice 1-15
MLS Members, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, divulge the existence of offers on the property.
ARTICLE 2
MLS Members shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. MLS Members shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts that are confidential under the scope of agency or non-agency relationships as defined by state law. Article 2 does not impose upon the MLS Member the obligation of expertise in other professional or technical disciplines.
- Standard of Practice 2-1
MLS Members shall not be parties to the naming of a false consideration in any document, unless it is the naming of an obviously nominal consideration.
- Standard of Practice 2-2
Factors defined as “non-material” by law or regulation or which are expressly referenced in law or regulation as not being subject to disclosure are considered not “pertinent” for purposes of Article 2.
ARTICLE 3
MLS Members shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker.
- Standard of Practice 3-1
MLS Members, acting as exclusive agents or brokers of sellers/ homeowners, establish the terms and conditions of offers to cooperate. Unless expressly indicated in offers to cooperate, cooperating brokers may not assume that the offer of cooperation includes an offer of compensation. Terms of compensation, if any, shall be ascertained by cooperating brokers before beginning efforts to accept the offer of cooperation.
- Standard of Practice 3-2
MLS Members shall, with respect to offers of compensation to another MLS Member, timely communicate any change of compensation for cooperative services to the other MLS Member prior to the time such MLS Member produces an offer to purchase/lease the property.
- Standard of Practice 3-3
Standard of Practice 3-2 does not preclude the listing broker and cooperating broker from entering into an agreement to change cooperative compensation.
- Standard of Practice 3-4
MLS Members, acting as listing brokers, have an affirmative obligation to disclose the existence of dual or variable rate commission arrangements (i.e., listings where one amount of commission is payable if the listing broker’s firm is the procuring cause of sale/lease and a different amount of commission is payable if the sale/lease results through the efforts of the seller/homeowner or a cooperating broker). The listing broker shall, as soon as practical, disclose the existence of such arrangements to potential cooperating brokers and shall, in response to inquiries from cooperating brokers, disclose the differential that would result in a cooperative transaction or in a sale/lease that results through the efforts of the seller/homeowner. If the cooperating broker is a buyer/tenant representative, the buyer/tenant representative must disclose such information to their client before the client makes an offer to purchase or lease.
- Standard of Practice 3-5
It is the obligation of subagents to promptly disclose all pertinent facts to the principal’s agent prior to as well as after a purchase or lease agreement is executed.
- Standard of Practice 3-6
MLS Members shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation.
- Standard of Practice 3-7
When seeking information from another MLS Member concerning property under a management or listing agreement, MLS Members shall disclose their MLS Member status and whether their interest is personal or on behalf of a client and, if on behalf of a client, their representational status.
- Standard of Practice 3-8
MLS Members shall not misrepresent the availability of access to show or inspect a listed property.
ARTICLE 4
MLS Members shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, MLS Members shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative.
- Standard of Practice 4-1
For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by MLS Members prior to the signing of any contract
ARTICLE 5
MLS Members shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties.
ARTICLE 6
MLS Members shall not accept any commission, rebate, or profit on expenditures made for their client, without the client’s knowledge and consent.
When recommending real estate products or services (e.g., homeowner’s insurance, warranty programs, mortgage financing, title insurance, etc.), MLS Members shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the MLS Member or MLS Member’s firm may receive as a direct result of such recommendation.
- Standard of Practice 6-1
MLS Members shall not recommend or suggest to a client or a customer the use of services of another organization or business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion.
ARTICLE 7
In a transaction, MLS Members shall not accept compensation from more than one party, even if permitted by law, without disclosure to all parties and the informed consent of the client or clients.
ARTICLE 8
MLS Members, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing.
- Standard of Practice 8-1
For the protection of all parties, MLS Members shall use reasonable care to ensure that documents pertaining to the purchase, sale, or lease of real estate are kept current through the use of written extensions or amendments.
ARTICLE 9
MLS Members shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin. MLS Members shall not be parties to any plan or agreement to discriminate against a person or persons based on race, color, religion, sex, handicap, familial status, or national origin.
MLS Members, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin.
- Standard of Practice 9-1
MLS Members shall not volunteer information regarding the racial, religious or ethnic composition of any neighborhood and shall not engage in any activity that may result in panic selling. MLS Members shall not print, display or circulate any statement or advertisement with respect to the selling or renting of a property that indicates any preference, limitations or discrimination based on race, color, religion, sex, handicap, familial status, or national origin.
- Standard of Practice 9-2
As used in this Article, “real estate employment practices” relates to employees and independent contractors providing real-estate related services and the administrative and clerical staff directly supporting those individuals.
ARTICLE 10
The services which MLS Members provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate.
MLS Members shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.
- Standard of Practice 10-1
When MLS Members prepare estimates of real property value or price, other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, such opinions shall include the following:
- identification of the subject property;
- date prepared;
- defined value or price;
- limiting conditions, including statements of purpose(s) and intended user(s);
- any present or contemplated interest, including the possibility of representing the seller/homeowner or buyers/tenants;
- basis for the opinion, including applicable market data;
- if the opinion is not an appraisal, a statement to that effect
- Standard of Practice 10-2
The obligations of the Code of Ethics in respect of real estate disciplines other than appraisal shall be interpreted and applied in accordance with the standards of competence and practice which clients and the public reasonably require to protect their rights and interests considering the complexity of the transaction, the availability of expert assistance, and, where the MLS Member is an agent or subagent, the obligations of a fiduciary.
- Standard of Practice 10-3
When MLS Members provide consulting services to clients involving advice or counsel for a fee (not a commission), such advice shall be rendered in an objective manner and the fee shall not be contingent on the substance of the advice or counsel given. If brokerage or transaction services are to be provided in addition to consulting services, a separate compensation may be paid with prior agreement between the client and MLS Member.
- Standard of Practice 10-4
The competency required by this Article relates to services contracted for between MLS Members and their clients or customers; the duties expressly imposed by the Code of Ethics; and the duties imposed by law or regulation.
ARTICLE 11
MexMLS® members shall be careful at all times to present a true picture in their advertising and representations to the public. MLS Members shall also ensure that their professional status (e.g., broker, appraiser, property manager, etc.) or status as MLS Members is clearly identifiable in any such advertising.
- Standard of Practice 11-1
MLS Members may use the term “free” and similar terms in their advertising and in other representations provided that all terms governing availability of the offered product or service are clearly disclosed at the same time.
- Standard of Practice 11-2
MLS Members may represent their services as “free” or without cost even if they expect to receive compensation from a source other than their client if the potential for the MLS Member to obtain a benefit from a third party is clearly disclosed at the same time.
- Standard of Practice 11-3
The offering of premiums, prizes, merchandise discounts or other inducements to list, sell, purchase, or lease is not, in itself, unethical even if receipt of the benefit is contingent on listing, selling, purchasing, or leasing through the MLS Member making the offer. However, MLS Members must exercise care and candor in any such advertising or other public or private representations so that any party interested in receiving or otherwise benefiting from the MLS Member’s offer will have clear, thorough, advance understanding of all the terms and conditions of the offer. The offering of any inducements to do business is subject to the limitations and restrictions of state law and the ethical obligations established by any applicable Standard of Practice.
- Standard of Practice 11-4
MLS Members shall not offer for sale/lease or advertise property without authority. When acting as listing brokers or as subagents, MLS Members shall not quote a price different from that agreed upon with the seller/homeowner.
- Standard of Practice 11-5
MLS Members shall not advertise nor permit any person employed by or affiliated with them to advertise listed property without disclosing the name of the firm.
- Standard of Practice 11-6
MLS Members, when advertising unlisted real property for sale/lease in which they have an ownership interest, shall disclose their status as both owners/homeowners and as MLS Members or real estate licensees.
- Standard of Practice 11-7
Only MLS Members who participated in the transaction as the listing broker or cooperating broker (selling broker) may claim to have “sold” the property. Prior to closing, a cooperating broker may post a “sold” sign only with the consent of the listing broker.
Article 12
MLS Members shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it.
Article 13
If charged with unethical practice or asked to present evidence or to cooperate in any other way, in any professional standards proceeding or investigation, MLS Members shall place all pertinent facts before the proper tribunals of the Member Board or affiliated institute, society, or council in which membership is held and shall take no action to disrupt or obstruct such processes.
- Standard of Practice 13-1
MLS Members shall not be subject to disciplinary proceedings in more than one Board of MLS Members or affiliated institute, society or council in which they hold membership with respect to alleged violations of the Code of Ethics relating to the same transaction or event.
- Standard of Practice 13-2
MLS Members shall not make any unauthorized disclosure or dissemination of the allegations, findings, or decision developed in connection with an ethics hearing or appeal or in connection with an arbitration hearing or procedural review.
- Standard of Practice 13-3
MLS Members shall not obstruct the Board’s investigative or professional standards proceedings by instituting or threatening to institute actions for libel, slander or defamation against any party to a professional standards proceeding or their witnesses based on the filing of an arbitration request, an ethics complaint, or testimony given before any tribunal.
- Standard of Practice 13-4
MLS Members shall not intentionally impede the Board’s investigative or disciplinary proceedings by filing multiple ethics complaints based on the same event or transaction.
Duties to MLS Members
Article 14
MLS Members shall not knowingly or recklessly make false or misleading statements about competitors, their businesses, or their business practices.
- Standard of Practice 14-1
MLS Members shall not knowingly or recklessly file false or unfounded ethics complaints.
Article 15
MLS Members shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other MLS Members have with clients.
- Standard of Practice 15-1
This Article is not intended to prohibit aggressive or innovative business practices that are otherwise ethical and does not prohibit disagreements with other MLS Members involving commission, fees, compensation or other forms of payment or expenses.
- Standard of Practice 15-2
Article 16 does not preclude MLS Members from making general announcements to prospects describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another MLS Member. A general telephone canvass, general mailing or distribution addressed to all prospects in a given geographical area or in a given profession, business, club, or organization, or other classification or group is deemed “general” for purposes of this standard.
This Article is intended to recognize as unethical two basic types of solicitations:
First, telephone or personal solicitations of property owners who have been identified by a real estate sign, multiple listing compilation, or other information service as having exclusively listed their property with another MLS Member; and
Second, mail or other forms of written solicitations of prospects whose properties are exclusively listed with another MLS Member when such solicitations are not part of a general mailing but are directed specifically to property owners identified through compilations of current listings, “for sale” or “for rent” signs, or other sources of information required by Article 3 and Multiple Listing Service rules to be made available to other MLS Member® under offers of sub agency or cooperation.
- Standard of Practice 15-3
Article 16 does not preclude MLS Members from contacting the client of another broker for the purpose of offering to provide, or entering into a contract to provide, a different type of real estate service unrelated to the type of service currently being provided (e.g., property management as opposed to brokerage) or from offering the same type of service for property not subject to other brokers’ exclusive agreements. However, information received through a Multiple Listing Service or any other offer of cooperation may not be used to target clients of other MLS Members to whom such offers to provide services may be made.
- Standard of Practice 15-4
MLS Members shall not solicit a listing which is currently listed exclusively with another broker. However, if the listing broker, when asked by the MLS Member, refuses to disclose the expiration date and nature of such listing; i.e., an exclusive right to sell, an exclusive agency, open listing, or other form of contractual agreement between the listing broker and the client, the MLS Member may contact the owner to secure such information and may discuss the terms upon which the MLS Member might take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing.
- Standard of Practice 15-5
MLS Members shall not solicit buyer/tenant agreements from buyers/tenants who are subject to exclusive buyer/tenant agreements. However, if asked by a MLS Member, the broker refuses to disclose the expiration date of the exclusive buyer/tenant agreement, the MLS Member may contact the buyer/tenant to secure such information and may discuss the terms upon which the MLS Member might enter into a future buyer/tenant agreement or, alternatively, may enter into a buyer/tenant agreement to become effective upon the expiration of any existing exclusive buyer/tenant agreement.
- Standard of Practice 15-6
When MLS Members are contacted by the client of another MLS Member regarding the creation of an exclusive relationship to provide the same type of service, and MLS Members have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement or, alternatively, may enter into an agreement which becomes effective upon expiration of any existing exclusive agreement.
- Standard of Practice 15-7
The fact that a prospect has retained a MLS Member as an exclusive representative or exclusive broker in one or more past transactions does not preclude other MLS Member from seeking such prospect’s future business.
- Standard of Practice 15-8
The fact that an exclusive agreement has been entered into with a MLS Member shall not preclude or inhibit any other MLS Member from entering into a similar agreement after the expiration of the prior agreement.
- Standard of Practice 15-9
MLS Members, prior to entering into a representation agreement, have an affirmative obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same type of real estate service.
- Standard of Practice 15-10
MLS Members, acting as buyer or tenant representatives or brokers, shall disclose that relationship to the seller/homeowner’s representative or broker at first contact and shall provide written confirmation of that disclosure to the seller/homeowner’s representative or broker before the execution of a purchase agreement or lease.
- Standard of Practice 15-11
On unlisted property, MLS Members acting as buyer/tenant representatives or brokers shall disclose that relationship to the seller/homeowner at first contact for that buyer/tenant and shall provide written confirmation of such disclosure to the seller/homeowner before the execution of any purchase or lease agreement.
MLS Members shall make any request for anticipated compensation from the seller/ homeowner at first contact.
- Standard of Practice 15-12
MLS Members, acting as representatives or brokers of sellers/homeowners or as subagents of listing brokers, shall disclose that relationship to buyers/tenants as soon as practicable and shall provide written confirmation of such disclosure to buyers/tenants not later than execution of any purchase or lease agreement.
- Standard of Practice 15-13
All dealings concerning property exclusively listed, or with buyer/tenants who are subject to an exclusive agreement shall be carried on with the client’s representative or broker, and not with the client, except with the consent of the client’s representative or broker or except where such dealings are initiated by the client.
Before providing substantive services (such as writing a purchase offer or presenting a CMA) to prospects, MLS Members shall ask prospects whether they are a party to any exclusive representation agreement. MLS Members shall not knowingly provide substantive services concerning a prospective transaction to prospects who are parties to exclusive representation agreements, except with the consent of the prospects’ exclusive representatives or at the direction of prospects.
- Standard of Practice 15-14
MLS Members may enter into contractual relationships or to negotiate with sellers/ homeowners, buyers/tenants or others who are not subject to an exclusive agreement but shall not knowingly obligate them to pay more than one commission except with their informed consent.
- Standard of Practice 15-15
In cooperative transactions, MLS Members shall compensate cooperating MLS Members (principal brokers) and shall not compensate nor offer to compensate, directly or indirectly, any of the sales licensees employed by or affiliated with other MLS Members without the prior express knowledge and consent of the cooperating broker.
- Standard of Practice 15-16
MLS Members, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker’s offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing broker’s agreement to modify the offer of compensation.
- Standard of Practice 15-17
MLS Members, acting as subagents or as buyer/tenant representatives or brokers, shall not attempt to extend a listing broker’s offer of cooperation and/or compensation to other brokers without the consent of the listing broker.
- Standard of Practice 15-18
MLS Members shall not use information obtained from listing brokers through offers to cooperate made through multiple listing services or through other offers of cooperation to refer listing brokers’ clients to other brokers or to create buyer/tenant relationships with listing brokers’ clients, unless such use is authorized by listing brokers.
- Standard of Practice 15-19
Signs giving notice of property for sale, rent, lease, or exchange shall not be placed on property without consent of the seller/homeowner.
- Standard of Practice 15-20
MLS Members, prior to or after terminating their relationship with their current firm shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm. This does not preclude MLS Members (principals) from establishing agreements with their associated licensees governing assignability of exclusive agreements.
Article 16
In the event of contractual disputes or specific non-contractual disputes as defined in Standard of Practice 17-4 between MLS Members (principals) associated with different firms, arising out of their relationship as MLS Members; the MLS Members shall submit the dispute to arbitration in accordance with the regulations of their Board or Boards rather than litigate the matter.
In the event clients of MLS Members wish to arbitrate contractual disputes arising out of real estate transactions, MLS Members shall arbitrate those disputes in accordance with the regulations of their Board, provided the clients agree to be bound by the decision.
The obligation to participate in arbitration contemplated by this Article includes the obligation of MLS Members (principals) to cause their firms to arbitrate and be bound by any award.
- Standard of Practice 16-1
The filing of litigation and refusal to withdraw from such litigation by MLS Members in a matter that could be arbitrated constitutes a refusal to arbitrate.
- Standard of Practice 16-2
Article 17 does not require MLS Members to arbitrate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to arbitrate before the Board.
- Standard of Practice 16-3
MLS Members, when acting solely as principals in a real estate transaction, are not obligated to arbitrate disputes with other MLS Member absent a specific written agreement to the contrary.
- Standard of Practice 16-4
Specific non-contractual disputes that are subject to arbitration pursuant to this Article are:
- Where a listing broker has compensated a cooperating broker and another cooperating broker subsequently claims to be the procuring cause of the sale or lease. In such cases, the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. In either instance, the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction.
- Where a buyer or tenant representative is compensated by the seller or homeowner, and not by the listing broker, and the listing broker, as a result, reduces the commission owed by the seller or homeowner and, subsequent to such actions, another cooperating broker claims to be the procuring cause of sale or lease. In such cases, the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. In either instance, the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction.
- Where a buyer or tenant representative is compensated by the buyer or tenant and, as a result, the listing broker reduces the commission owed by the seller or homeowner and, subsequent to such actions, another cooperating broker claims to be the procuring cause of sale or lease. In such cases, the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. In either instance, the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction.
- Where two or more listing brokers claim entitlement to compensation pursuant to open listings with a seller or homeowner who agrees to participate in arbitration (or who requests arbitration) and who agrees to be bound by the decision. In cases where one of the listing brokers has been compensated by the seller or homeowner, the other listing broker, as complainant, may name the first listing broker as respondent and arbitration may proceed between the brokers.
