2. Fix, control, recommend, or suggest the cooperative compensation offered by listing brokers to potential cooperating brokers.

Transcription

1 Sussex County Association of REALTORS Multiple Listing Service Rules and Regulations Effective January 1, 2001 Revised 7/03, 12/05, 7/06, 01/07, 9/07, 01/08, 05/08, 07/08, 09/08, 01/09, 02/09, 06/09, 05/11, 9/11, 5/12, 1/13, 3/13. 11/13, 5/14, 11/14, 5/15, 2/16 INTRODUCTION The Sussex County Association of REALTORS operates a Multiple Listing Service as a Committee of the Association. The model MLS Rules are drafted to be in compliance with the applicable policies of the National Association of REALTORS. These rules and regulations will be amended or updated from time to time to comply with changes in NAR policies or applicable law. The MLS shall be governed by the Multiple Listing Service Committee in accordance with the bylaws of the Sussex County Association of REALTORS and such rules and regulations as adopted by the Board of Directors. All actions of the MLS Committee shall be subject to the approval of the Board of Directors. A Multiple Listing Service is a means by which authorized Participants make blanket unilateral offers of compensation to other Participants (acting as subagents, buyer agents, or in other agency or non-agency capacities defined by law); by which cooperation among participants is enhanced information is accumulated and disseminated to enable authorized Participants to prepare appraisals, analyses, and other valuations of real property; for bona fide clients and customers; engaging in real estate appraisal contribute to common databases; and is a facility for the orderly correlation and dissemination of listing information so participants may better serve their clients and the public. Entitlement to compensation is determined by the cooperating broker's performance as procuring cause of the sale (or lease). (Amended 11/96) (Amended 1/07) MLS ANTITRUST COMPLIANCE POLICY The purpose of multiple listing is the orderly correlation and dissemination of listing information to participants so they may better serve the buying, selling, and leasing public. Boards and associations of REALTORS and their multiple listing services shall not enact or enforce any rule which restricts, limits, or interferes with participants in their relations with each other, in their broker/client relationships, or in the conduct of their business in the following areas. Boards and associations of REALTORS and their MLSs shall not: 1. Fix, control, recommend, or suggest the commissions or fees charged for real estate brokerage services (Interpretation 14). 2. Fix, control, recommend, or suggest the cooperative compensation offered by listing brokers to potential cooperating brokers. 3. Base dues, fees, or charges on commissions, listed prices, or sales prices. Initial participation fees and charges should directly relate to the costs incurred in bringing services to new participants. 4. Modify, or attempt to modify, the terms of any listing agreement; this does not prohibit administrative corrections of property information necessary to ensure accuracy or consistency in MLS compilations. 1

2 5. Refuse to include any listing in an MLS compilation solely on the basis of the listed price. 6. Prohibit or discourage participants from taking exclusive agency listings or refusing to include any listing in an MLS compilation solely on the basis that the property is listed on an exclusive agency basis. 7. Prohibit or discourage participants from taking office exclusive listings; certification may be required from the seller or listing broker that the listing is being withheld from the MLS at the direction of the seller. 8. Give participants or subscribers blanket authority to deal with or negotiate with buyers, lessees, sellers, and lessors exclusively represented by other participants (Interpretation 10). 9. Establish, or permit establishment of, any representational or contractual relationship between an MLS and sellers, buyers, landlords, or tenants. 10. Prohibit or discourage cooperation between participants and brokers that do not participate in the MLS. 11. Prohibit or discourage participants or subscribers from participating in political activities (Interpretation 15). 12. Interfere in or restrict participants in their relationships with their affiliated licensees (Interpretations 16 and 17). As used in this policy, rule includes all rules, regulations, bylaws, policies, procedures, practices, guidelines, or other governance provisions, whether mandatory or not. Multiple listing service and MLS means multiple listing service committees of boards and associations of REALTORS and separately-incorporated multiple listing services owned by one or more boards or associations of REALTORS. These policy prohibitions are subject to and limited by applicable statutes, ordinances, and governmental regulations, to agreements entered into by an MLS or board or association of REALTORS and an agency of government, and to final decrees of courts or administrative agencies. This policy does not prohibit boards or associations of REALTORS or their MLSs from adopting rules or policies establishing the legitimate uses of MLS information, from prohibiting unauthorized uses of MLS information, or from establishing rules or policies necessary to prevent illegal collective action, including price-fixing and boycotts. It is the duty and responsibility of all boards and associations of REALTORS and MLSs owned by or controlled by boards or associations of REALTORS to ensure that all bylaws, rules, regulations, and other governance provisions comply with all mandatory multiple listing policies of the NATIONAL ASSOCIATION OF REALTORS. Boards and associations of REALTORS failing to conform with these policies will be required to show cause why their charters should not be revoked. PARTICIPATION Participant. A participant is any individual who applies and is accepted by the MLS, 2

3 meets and continues to meet all of the following requirements of either a broker participant or an appraiser participant as defined below. Broker Participant. A broker participant must meet all of the following criteria: a. The Participant must hold a valid Delaware real estate broker s license; b. The Participant is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal; c. The Participant offers or accepts compensation in the capacity of a real estate broker; d. The Participant has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended; e. The Participant pays all applicable MLS fees. Appraiser Participant. An appraiser participant must meet all of the following criteria: a. The Participant holds a valid Delaware appraisers license; b. The Participant is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal; c. The Participant has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended; d. The Participant pays all applicable MLS fees. Subscriber. A subscriber is an individual who applies and is accepted by the MLS, meets and continues to meet all of the following requirements of either a real estate subscriber or an appraiser subscriber as defined below: Real Estate Subscriber. Is a subscriber who meets all of the following requirements: a. The individual holds a valid Delaware real estate salesperson s or broker s license; b. The individual is employed by or affiliated as an independent contractor with a broker participant; c. The individual has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended; d. The individual pays all applicable MLS fees. Appraiser Subscriber. An appraiser subscriber is a subscriber who meets all of the following requirements: a. The individual holds a valid Delaware real estate appraisers license; b. The individual is employed by or affiliated as an independent contractor with an appraiser participant; c. The individual has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended; d. The individual pays all applicable MLS fees Clerical Users. Clerical users are unlicensed individuals under the direct supervision of an MLS participant or subscriber that perform only administrative and clerical tasks that do not require a real estate license or an appraiser s license. Each participant and subscriber 3

4 shall provide the MLS with a waiver form signed by the participant of all clerical users employed by or affiliated as independent contractors with the participant or subscriber and shall notify the MLS of any changes, or deletions from the list within 7 calendar days of the change. Notification of Licensees. Each participant shall provide the MLS with a list of all real estate licensees or certified or licensed appraisers employed by or affiliated as independent contractors with such participant or with such participant s firm and shall immediately notify the MLS of any changes, additions or deletions from the list. The list shall include any licensees under any broker associate affiliated with the participant. Participation is Not Transferable. Participation in the MLS is on an individual basis and may not be transferred or sold to any corporation, firm or other individual. Any reimbursement of MLS fees is a matter of negotiation between those transferring the business or determined by internal contract arrangement within the firm. Property Type Definitions: A listing can only be entered into one property type with the exception of farms (which may be listed in farms and also in land) and Commercial (which may be listed in Commercial and also in Residential provided that the parcel is zoned commercial with residential use and a home exists on the parcel).. A listing must be entered into the property type consistent with the following: Residential For Sale a. Single Family- A single dwelling with detached walls, either on its own parcel of land or part of a condominium ownership. Can be an attached home on its own parcel of land (i.e. Duplex or Row House) that is not part of a condominium ownership. Includes manufactured and modular homes with a permanent foundation. Manufactured homes must have surrendered their title and be a Class C home to qualify. b. Condo/Townhouse- A single dwelling with attached walls, either on one level or multi-level. Must be part of a condominium ownership. c. Multi-Family- A detached dwelling with multiple living units on one parcel of land. Must be sold in its entirety. d. Mobile Home- A manufactured home with or without a permanent foundation that still has a title from DMV. Can be on its own parcel of land or part of a mobile home park. e. Timeshare- A form of property ownership under which a property is held by a number of people, each with the right of possession for a specified time interval. f. Fractional Ownership- The deeded ownership in a property that allows for a property to be owned by multiple owners who are deeded a fractional share of the property. g. Residential Rental: Residential rental is a residential property for lease and is subject to the Delaware Residential Landlord Tenant code. Lots/Land for Sale a. Residential- Unimproved land zoned for any type of residential use. b. Agricultural- Unimproved land for agricultural purposes. c. Mobile Home- Unimproved land zoned for manufactured homes. d. Commercial/Industrial- Unimproved commercially zoned property. Farms for Sale- Real property used as an agricultural business. This may include unimproved land used for crops, as well as improved land for other agricultural purposes. 4

5 Commercial/Improved Property: Any improved real property that is zoned for commercial use, including zoning for conditional uses. May include a business for sale that is included with the real property. Commercial Land: any unimproved real property that is zoned for commercial use, including zoning for conditional uses. Commercial Business only: Any business for sale that does NOT include the real property, but does include a leasehold interest in real property, which is transferred in conjunction with the business. Participants should consult with their E&O provider regarding coverage of these transactions. Commercial Lease- Vacant commercial property for lease only. Can also include unimproved commercial land for lease. Auctions a public sale in which property is sold to the highest bidder. Auctions are not permitted in the MLS. Tax Identification Rules: Each new listing that includes real property must be tied to the appropriate tax district, map, parcel and unit number as assigned by the Sussex County Tax Department when entering the listing on the SCAOR MLS system. Properties that are located outside of Sussex County will use the tax identification system that is specific to the county where the property is located. Any listing that does not include any real property for sale such as residential lease, commercial for lease, commercial business only, will not have any Tax Identification fields on the listing input sheets. Once the tax identification items are entered into the SCAOR MLS, the user must select Get Tax Information which will authenticate the Tax ID information as well as auto-populate the listing with information form the tax database. The system will not allow listings to be entered without the selection of Get the Tax Information. New Communities: In new communities where model homes are to be listed, the model home must be listed on a valid parcel owned by the seller and included in the parcels to be sold within the new homes community. When the parcel designated for the model home is placed under contract, the Participant must update the listing tied to the parcel to reflect the improvements described in the Agreement of Sale. In such cases, the Participant will move the model home listing to another available parcel owned by the seller and included in the parcels to be sold within the new home community. A Participant will not list more model homes than the remaining unsold parcels permit. Community and Building Tables: The MLS shall incorporate a list of Communities and Buildings as part of the information for each parcel in Sussex County where it applies, as this data is not available in the tax information that is available in the Sussex County tax database. Community: An improved subdivision, which may be owned fee simple or leasehold, and which may be subject to either a Home Owners Association, a Condominium Association, or is designated as a subdivision by Sussex County. Building: A single condominium structure that is either part of a larger condominium community or is a single structure in an existing MLS Community or Municipality, where the MLS has deemed it relevant to be searchable on its own. 5

6 Listing Status Definitions: Active: Active w/kickout Pending: Properties actively listed for sale or lease in which the Participant must have a valid listing agreement signed by the seller/lessor before entering a listing as Active. Listings that have a signed purchase or lease agreement shall not be classified as Active. A listing is active with kick out when a purchase agreement has been signed by both parties and the purchase agreement contains a buyer kick out addendum. Typically a kick out addendum specifies that the property should continue to be marketed and that if an additional contract is presented to the seller, the seller can initiate a kick out provision with the buyer named in the primary contract. Agents should disseminate Active with Kick out listings to prospective purchasers as if they were active listings. A listing is pending when a purchase agreement has been signed by both parties and the property is no longer available for showings. This must be reflected in the MLS within 48 hours. Sold: Expired: Withdrawn: Short Sale: Properties where a successful closing occurred and title was transferred from the seller to the buyer. Properties in which the listing contract has reached its agreed upon expiration date and the Participant has not secured written permission from the seller to extend the listing for an additional period of time. Properties in which the Participant and the seller have terminated the listing contract before the agreed upon expiration date. If known, a short sale disclosure shall be stated in the Agent Remarks section and shall include notice if a third party approval is required. In addition, the Short Sale Addendum Required box should be checked off under Contract Information within Coded Features. Participants must disclose potential short sales( defined as a transaction where title transfers, where the sale price is insufficient to pay the total of all liens and costs of sale and where the seller does not bring sufficient liquid assets to the closing to cure all deficiencies) when reasonably known to the listing participants. (Amended 5/09) LISTING PROCEDURES Section 1 Listing Procedures: Listings of real or personal property which fall under the property types as described under the Property Type Definitions section, which are subject to a real estate broker s license located within the territorial jurisdiction of the Sussex County Association of REALTORS, located in Georgetown, Delaware ( the association ) taken by Participants on an exclusive right to sell listing form or an exclusive agency listing form, shall be delivered to or input electronically to the Multiple Listing 6

7 Service ( the Service ) within forty-eight (48) hours after all necessary signatures of seller(s) have been obtained. Note 1: The Multiple Listing Service shall not require a Participant to submit listings on a form other than the form the Participant individually chooses to utilize provided the listing is of a type accepted by the Service, although a property data form may be required as approved by the Multiple Listing Service. However, the Multiple Listing Service, in consultation with legal counsel: 1. May reserve the right to refuse to accept a listing form which fails to adequately protect the interests of the public and the Participants, or comply with and Federal, State or county laws. 2. Assure that no listing form filed with the Multiple Listing Service establishes, directly or indirectly, any contractual relationship between the Multiple Listing Service and the client (buyer or seller) The Multiple Listing Service shall accept exclusive right to sell listing contracts and exclusive agency listing contracts, and may accept other forms of agreement which make it possible for the listing broker to offer cooperation and compensation to the other Participants of the Multiple Listing Service acting as cooperating agents, buyer agents, or dual agents, as permitted by applicable state law. The listing agreement must include the seller s written authorization to submit the agreement to the Multiple Listing Service. The different types of listing agreements include: (a) exclusive right to sell (b) exclusive agency (c) open (d) net The Multiple Listing Service will not accept net listings because they are deemed unethical and, in most states, illegal. Open listings are not accepted except where required by law because the inherent nature of an open listing is such as to usually not include the authority to cooperate and compensate other brokers and inherently provides a disincentive for cooperation. The exclusive right to sell listing is the conventional form of listing submitted to the Multiple Listing Service in that the seller authorizes the listing broker to cooperate with and to compensate other brokers. The exclusive agency listing also authorizes the listing broker, as exclusive agent, to offer cooperation and compensation on blanket unilateral basis, but also reserves to the seller the general right to sell the property on an unlimited or restrictive basis. Exclusive agency listings and exclusive right to sell listings with named prospects exempted should be clearly distinguished by a simple designation such as a code or symbol from exclusive right to sell listings with no named prospects exempted, since they can present special risks of procuring cause controversies and administrative problems not posed by exclusive right to sell listings with no named prospects exempted. Care should be exercised to ensure that different codes or symbols are used to denote exclusive agency and exclusive right to sell listings with prospect reservations. Note 2: A Multiple Listing Service does not regulate the type of listings its Members may take. This does not mean that a Multiple Listing Service must accept every type of listing. The Multiple Listing Service shall decline to accept open listings (except where 7

8 acceptance is required by law) and net listings, and it may limit its service to listings of certain kinds of property. But, if it chooses to limit the kind of listings it will accept, it shall leave its Members free to accept such listings to be handled outside the Multiple Listing Service. Section 1.1 Listings Subject to Rules and Regulations of the Service: Any listing taken on a contract to be filed with the Multiple Listing Service is subject to the rules and regulations of the Service upon signature of the seller(s)/lessors. Section 1.2 Detail on Listings Filed with the Service: A listing agreement or property data form, when filed with the Multiple Listing Service by the listing broker, shall be complete in every detail which is ascertainable as specified on the property data form. Section 1.3 Exempted Listings: If the seller/lessor refuses to permit the listing to be disseminated by the Service, the REALTOR may then take the listing ("office exclusive") and such listing shall be filed with the Service but not disseminated to the Participants. Filing of the listing should be accompanied by separate certification signed by the seller/lessor that he does not desire the listing to be disseminated by the Service. A copy is to be sent to the Association office. Section 1.4 Change of Status of Listing: Any change in listed price or other change in the original listing agreement shall be made only when authorized in writing by the seller/lessor and shall be filed with the Service within forty-eight (48) hours after the authorized change is received by the listing broker. Section 1.5 Withdrawal of Listing Prior to Expiration: Listings of property may be withdrawn from the Multiple Listing Service by the listing broker before the expiration date of the listing agreement, provided notice is filed with the Service, including a copy of the agreement between the seller/lessor and the listing broker which authorizes the withdrawal. Sellers/lessors do not have the unilateral right to require an MLS to withdraw a listing without the listing broker s concurrence. However, when a seller(s)/lessor (s) can document that his exclusive relationship with the listing broker has been terminated, the Multiple Listing Service may remove the listing at the request of the seller/lessor. (Adopted 11/96) Section 1.6 Contingencies Applicable to Listings: Any contingency or conditions of any term in a listing shall be specified and noticed to the Participants. This can be accomplished by adding any changes in the agent remarks section. Section 1.7 Listing Price Specified: The full gross listing price stated in the listing contract will be included in the information published in the MLS compilation of current listings. Section 1.8 Listing Multiple Unit Properties: All properties which are to be sold or which may be sold separately must be indicated individually in the listing and on the property data form. When part of a listed property has been sold, proper notification should be given to the Multiple Listing Service. 8

9 Section 1.9 No Control of Commission Rates or Fees Charged by Participants: The Multiple Listing Service shall not fix, control, recommend, suggest, or maintain commission rates or fees for services to be rendered by Participants. Further, the Multiple Listing Service shall not fix, control, recommend, suggest, or maintain the division of commissions or fees between cooperating Participants or between Participants and non-participants. Section 1.10 Expiration, Extension, and Renewal of Listings: Any listing filed with the Multiple Listing Service automatically expires on the dates specified in the agreement, unless renewed by the listing broker and notice of renewal or extension is filed with the Service prior to expiration. If notice of renewal or extension is dated after the expiration date of the original listing, then a new listing must be secured for the listing to be filed with the Service. It should then be published as a new listing. Any extension or renewal of a listing must be signed by the seller(s) and be filed with the Service. Section 1.11 Termination Date on Listings: Listings filed with the Service shall bear a definite and final termination date, as negotiated between the listing broker and the seller/lessor. Section 1.12 Jurisdiction: Only listings of the designated types of property located within the jurisdiction of the Association are required to be submitted to the Service. Listings of property located outside the Association s jurisdiction will be accepted if submitted voluntarily by a Participant, but cannot be required by the Service. (a) Listings outside of the Association s jurisdiction must be located in a county where the Association has access to that county s tax records, which currently comprises all counties in Delaware and those counties in Maryland that are contiguous with Sussex County, Delaware. (11/14) Section 1.13 Listings of Suspended Participants: When a Participant of the Service is suspended from the MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics, Association bylaws, MLS bylaws, MLS rules and regulations, or other membership obligation except failure to pay appropriate dues, fees, or charges), all listings currently filed with the MLS by the suspended Participant shall, at the Participant s option, be retained in the Service until sold, withdrawn or expired, and shall not be renewed or extended by the MLS beyond the termination date of the listing agreement in effect when the suspension became effective. If a Participant has been suspended from the Association (except where MLS participation without Association membership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees, or charges, a Association MLS is not obligated to provide MLS services, including continued inclusion of the suspended Participant s listings in the MLS compilation of current listing information. Prior to any removal of a suspended Participant s listings from the MLS, the suspended Participant should be advised, in writing, of the intended removal so that the suspended Participant may advise his clients. Section 1.14 Listings of Expelled Participants: When a Participant of the Service is expelled from the MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics, Association bylaws, MLS bylaws, MLS rules and regulations, or other membership obligations (except failure to pay appropriate dues, fees, or charges), all listings currently filed with the MLS shall, at the expelled Participant s option, be retained in 9

10 the Service until sold, withdrawn, or expired, and shall not be renewed or extended by the MLS beyond the termination date of the listing agreement in effect when the expulsion became effective. If a Participant has been expelled from the Association (except where MLS participation without Association membership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees, or charges, a Association MLS is not obligated to provide MLS services, including continued inclusion of the expelled Participant s listings in the MLS compilation of current listing information. Prior to any removal of an expelled Participant s listings from the MLS, the expelled Participant should be advised, in writing, of the intended removal so that the expelled Participant may advise his/her clients. Section 1.15 Listings of Resigned Participants: When a Participant resigns from the MLS, the MLS is not obligated to provide services, including continued inclusion of the resigned Participant s listings in the MLS compilation of current listing information. Prior to any removal of a resigned Participant s listings from the MLS, the resigned Participant should be advised, in writing, of the intended removal so that the resigned Participant may advise his clients. Section 1.16 Photos: Photos cannot depict marketing or promotional messages made on behalf of the listing broker, agent or seller. A virtual tour attached to a listing must be unbranded, in a generic format free of any marketing or contact information. Section 1.17 Customer Remarks: The participant cannot display broker, agent or builder contact information in the Customer remarks section of a listing. If necessary, this information and any contact information should be included in the Agent remarks section only. The intent of the content in customer remarks cannot be to direct a customer to the office, the participant, the subscriber, the builder, seller or owner of the listed property. Section 1.18 Required Attachments: Sellers Disclosure of Real Property Condition Report or Real Property Condition Exemption Form, Radon Disclosure, and Lead Based Paint Disclosure (if built before 1978) must be attached to the listing in the MLS within 72 hours of listing entry. Section 1.19 Bulletin Board Usage: The participant and/or subscriber may utilize a bulletin board on the home page of the MLS in order to post listing notices to communicate open houses, new price changes, new seller incentives, and/or new listings. Open house notices are eligible for display for 7 days. All others are eligible for a 3-day display. A participant and/or subscriber will not be authorized to post notices regarding a listing of another participant or for any use not specifically listed above. Section 1.20 Seller Contribution: The Participant must complete the seller contribution field when closing a listing. This field must be completed with a numerical value reflecting the Seller s contributions toward the purchaser s closing cost. Section Limited Service Listings under which the listing broker will not provide one or more of the following services: a. arrange appointments for cooperating brokers to show listed property to potential purchasers/lessees but instead gives cooperating brokers authority to make such appointments directly with the seller(s)/lessor(s) 10

11 b. accept and present to the seller(s)/lessors offers to purchase procured by cooperating brokers but instead gives cooperating brokers authority to present offers to purchase/lease directly to the seller(s)/lessor(s) c. advise the seller(s)/ lessor(s) as to the merits of offers to purchase/lease d. assist the seller(s)/lessor(s) in developing, communicating, or presenting counter-offers e. participate on the seller's(s') lessor s (s) behalf in negotiations leading to the s le/lease of the listed property Section MLS Entry-only Listings under which the listing broker will not provide any of the following services: a. arrange appointments for cooperating brokers to show listed property to potential purchasers/lessees but instead gives cooperating brokers authority to make such appointments directly with the seller(s)/lessor(s) b. accept and present to the seller(s)/lessor(s) offers to purchase/lease procured by cooperating brokers but instead gives cooperating brokers authority to present offers to purchase/lease directly to the seller(s)/lessor(s) c. advise the seller(s)/lessor(s) as to the merits of offers to purchase/lease d. assist the seller(s) in developing, communicating, or presenting counter-offers e. participate on the seller's(s')/lessor (s ) behalf in negotiations leading to the sale/lease of the listed property. Section 1.23 Add-a-comp: The Add-A-Comp feature exists for the purpose of making sold data available to MLS users within the MLS system, when a transferred property was not originally offered in the MLS. A broker representing either party may submit the sales information to the MLS after the transfer has occurred. Such information is valuable in the preparation of appraisals and CMA s. The broker submitting the sale to the MLS must be in possession of the transaction s Settlement Disclosure Form. The information submitted, including but not limited to; sales price, seller concessions, and broker fees must be as stated on the Settlement Disclosure Form. SCAOR will not make this information available in RETS and other data feeds. The Add-A-Comp input screen is found under the Maintenance tab. Compensation: No offer is made as there is no listing agreement. Cooperation: No offer is made as there is no listing agreement. Exclusivity: Does not apply. Section 1.24 Cumulative days on the Market is a record of how many days the property, and all of its listings, has been on the market. When a property, listed by the tax identification number and/or address in the MLS is removed from the MLS, the days on market cumulative data will stop. If the property is re-entered on the MLS within 180 days, by any Participant, the cumulative data will reactivate from the most recent day on the market. Participants and subscribers may not remove an re-enter a listing without the Seller s written acknowledgement. Note: Days on the market is a count used by the MLS to let Participants and subscribers know how many calendar days a property s current listing has been on the 11

12 market. Cumulative Days on the market reflects the entire duration of the property on the MLS regardless of the listing broker. ( 7/14) SELLING/LEASING PROCEDURES Section 2 Showings and Negotiations: Appointments for showings and negotiations with the seller/lessor for the purchase/lease of listed property filed with the Multiple Listing Service shall be conducted through the listing broker, except under the following circumstances: (a) (b) the listing broker gives the cooperating broker specific authority to show and/or negotiate directly, or after reasonable effort, the cooperating broker cannot contact the listing broker or his representative; however, the listing broker, at his option, may preclude such direct negotiations by cooperating brokers. Section 2.1 Presentation of Offers: The listing broker must make arrangements to present the offer as soon as possible, or give the cooperating broker a satisfactory reason for not doing so. Section 2.1 a.- Application for Residential Rental: The listing broker will have complete control of what is required for the application process. All lease application policies, procedures, and fees are at the sole discretion of the listing broker, and shall be the same for all applicants in accordance with all State and Federal Fair Housing guidelines. At the time of application, the listing broker shall provide each applicant with a written copy of all policies, procedures, fees, and the required summary of the Delaware Residential landlord/tenant code. The intent of this provision is to allow residential rentals in the MLS. All state, federal, and local laws are enforced by the appropriate jurisdiction and not the SCAOR MLS. Section 2.2 Submission of Written Offers and Counter Offers: The listing broker shall submit to the seller or landlord all written offers until closing or lease signing unless precluded by law, government rule, regulation, or agreed otherwise in writing between the seller or landlord and the listing broker. Unless the subsequent offer is contingent upon the termination of an existing contract, the listing broker shall recommend that the seller obtain the advice of legal counsel prior to acceptance of the subsequent offer. Participants representing buyers or tenants shall submit to the buyer or tenant all offers and counter-offers until acceptance, and shall recommend that buyers and tenants obtain legal advice where there is a question about whether a pre-existing contract has been terminated. Section 2.3 Right of Cooperating Broker in Presentation of Offer: The cooperating broker or his representative has the right to participate in the presentation to the seller or lessor of any offer secured to purchase or lease. The cooperating Broker, however, does not have the right to be present at any discussion or evaluation of that offer by the seller or lessor and the listing broker. However, if the seller or lessor gives written instructions to the listing broker that the cooperating broker not be present when an offer the cooperating broker secured is presented, the cooperating broker has the right to a copy of the seller s/lessor s written instructions. None of the foregoing diminishes the listing broker s right to control the establishment of appointments for such presentations. Section 2.4 Right of Listing Broker in Presentation of Counter-Offer: The listing 12

13 broker or his representative has the right to participate in the presentation of any counter-offer made by the seller or lessor. He does not have the right to be present at any discussion or evaluation of a counter-offer by the purchaser or lessee (except when the cooperating broker is a subagent). However, if the purchaser or lessee gives written instructions to the cooperating broker that the listing broker not be present when a counter-offer is presented, the listing broker has the right to a copy of the purchaser s or lessee s written instructions. Section 2.4 (a)- Ratifying Residential Rental Agreement: The listing broker will prepare the residential rental agreement and provide the applicant with a summary of the Delaware Residential Landlord Tenant Code as prepared by the Attorney General s Office CIS for rentals, and all other disclosure as required by law. The listing broker will present the long term lease agreement (along with any deposit that may be required) to the lessor for review. It is the listing broker and the lessor s responsibility to review the agreement and disclosures for accuracy. The intent of this provision is to allow residential rentals in the MLS. All state, federal, and local laws are enforced by the appropriate jurisdiction and not the SCAOR MLS. Section 2.4 (b)- Occupancy The date and time of occupancy shall be defined by the ratified residential rental agreement at which time the applicant will become the lessee and the owner will become the lessor. Any compensation due to a cooperating broker is due at the time of occupancy as described in the MLS. The management services of the residential rental property shall be as defined in the listing brokers Listing Agreement and/or Management agreement. Any issues or concerns between the lessor and the lessee must be resolved as per the residential rental agreement found in Title 25 of the Delaware Landlord Tenant Code. The intent of this provision is to allow residential rentals in the MLS. All state, federal, and local laws are enforced by the appropriate jurisdiction and not the SCAOR MLS. Section 2.5 Reporting Contracts to the Service: Contracts shall be reported immediately by status change to the Multiple Listing Service by the listing broker unless the negotiations were carried on under Section 2(a) or (b) hereof, in which case the cooperating broker shall report, sending a copy to the listing broker within twenty-four (24) hours after acceptance. Note: The listing agreement of a property filed with the MLS by the listing broker should include a provision expressly granting the listing broker authority to file the listing with the MLS; to provide timely notice of status changes of the listing to the MLS; and to provide sales information including selling price to the MLS upon sale of the property. If deemed desirable by the MLS to publish sales information prior to final closing (settlement) of a sales transaction, the listing agreement should also include a provision expressly granting the listing broker the right to authorize dissemination of this information by the MLS to its Participants. Section 2.6 Reporting Resolutions of Contingencies: The listing broker shall report to the Multiple Listing Service within twenty-four (24) hours that a contingency on file with the Multiple Listing Service has been fulfilled or renewed, or the agreement cancelled. 13

14 Section 2.7 Advertising of Listing Filed with the Service: A listing shall not be advertised by any Participant other than the listing broker without the prior consent of the listing broker. Section 2.8 Reporting Cancellation of Pending Sale: The listing broker shall report immediately to the Multiple Listing Service the cancellation of any pending sale, and the listing shall be reinstated immediately. REFUSAL TO SELL OR TO RENT Section 3 Refusal to Sell: If the seller/ lessor of any listed property filed with the Multiple Listing Service refuses to accept a written offer satisfying the terms and conditions stated in the listing, such fact shall be transmitted immediately to the Service and to all Participants. PROHIBITIONS Section 4 Information for Participants Only: Any listing filed with the Service shall not be made available to any broker or firm not a Member of the MLS without the prior consent of the listing broker. Section 4.1 "For Sale" and For Rent Signs : Only the "For Sale"/ For Rent sign of the listing broker may be placed on a property. Section 4.2 "Sold" Signs: Prior to closing, only the "Sold" sign of the listing broker may be placed on a property, unless the listing broker authorizes the cooperating (selling) broker to post such a sign. (Amended 4/96) Section 4.3 Office Telephone # :The Participant must ensure the telephone number in the MLS is the same number on record with the Delaware Real Estate Commission. Section 4.4 Solicitation of Listing Filed with the Service: Participants shall be prohibited from soliciting a listing on property filed with the Service unless such solicitation is consistent with Article 16 of the Realtors Code of Ethics, its Standards of Practice, and its Case Interpretations. Note: This Section is to be construed in a manner consistent with Article 16 of the Code of Ethics and particularly Standard of Practice This Section is intended to encourage sellers/lessors to permit their properties to be filed with the Service by protecting them from being solicited, prior to expiration of the listing, by brokers and salespersons seeking the listing upon its expiration. Without such protection, a seller/lessor could receive hundreds of calls, communications, and visits from brokers and salespersons who have been made aware through MLS filing of the date the listing will expire and desire to substitute themselves for the present broker. This Section is also intended to encourage brokers to participate in the Service by assuring them that other Participants will not attempt to persuade the seller/lessor to breach the listing agreement or to interfere with their attempts to market the property. Absent the protection afforded by this Section, listing brokers would be most reluctant to generally disclose the identity of the seller or the availability of the property to other brokers. This Section does not preclude solicitation of listings under the circumstances 14

15 otherwise recognized by the Standards of Practice related to Article 16 of the Code of Ethics. DIVISION OF COMMISSIONS Section 5 Compensation Specified on Each Listing: The listing broker shall specify, on each listing filed with the Multiple Listing Service, the compensation offered to other Multiple Listing Service Participants for their services in the sale of such listing. Such offers are unconditional except that entitlement to compensation is determined by the cooperating broker s performance as the procuring cause of the sale (or lease) or as otherwise provided for in this rule. The listing broker s obligation to compensate any cooperating broker as the procuring cause of the sale (or lease) may be excused if it is determined through arbitration that, through no fault of the listing broker and in the exercise of good faith and reasonable care, it was impossible or financially unfeasible for the listing broker to collect a commission pursuant to the listing agreement. In such instances, entitlement to cooperative compensation offered through MLS would be a question to be determined by an arbitration hearing panel based on all relevant facts and circumstances including, but not limited to, why it was impossible or financially unfeasible for the listing broker to collect some or all of the commission established in the listing agreement; at what point in the transaction did the listing broker know (or should have known) that some or all of the commission established in the listing agreement might not be paid; and how promptly had the listing broker communicated to cooperating brokers that the commission established in the listing agreement might not be paid. (Amended 11/98) Note: In filing a property with the Multiple Listing Service of an Association of Realtors, the Participant of the Service is making blanket unilateral offers of compensation to the other MLS Participants, and shall therefore specify on each listing filed with the Service, the compensation being offered to the other MLS Participants. Specifying the compensation on each listing is necessary, because the cooperating broker has the right to know what his compensation shall be prior to his endeavor to sell.* (Amended 11/96) The listing broker retains the right to determine the amount of compensation offered to other Participants (acting as subagents, buyer agents, or in other agency or non agency capacities defined by law) which may be the same or different. (Amended 11/96) This shall not preclude the listing broker from offering any MLS Participant compensation other than the compensation indicated on any listing published by the MLS, provided the listing broker informs the other broker, in writing, in advance of his submitting an offer to purchase, and provided that the modification in the specified compensation is not the result of any agreement among all or any other Participants in the Service. Any superseding offer of compensation must be expressed as either a percentage of the gross sales price or as a flat dollar amount. (Amended 11/95) The Multiple Listing Service shall not have a rule requiring the listing broker to disclose the amount of total negotiated commission in his listing contract, and the Association Multiple Listing Service shall not publish the total negotiated commission on a listing which has been submitted to the MLS by a Participant. The Association Multiple Listing Service shall not disclose in any way the total commission negotiated between the seller and the listing broker. *The compensation specified on listings filed with the Multiple Listing Service shall appear in one of two forms. The essential and appropriate requirement by an Association 15

16 Multiple Listing Service is that the information to be published shall clearly inform the Participants as to the compensation they will receive in cooperative transactions, unless advised otherwise by the listing broker, in writing, in advance of his submitting an offer to purchase. The compensation specified on listings published by the MLS shall be shown in one of the following forms: 1. by showing a percentage of the gross selling price 2. by showing a definite dollar amount Note 2: The listing broker may, from time to time, adjust the compensation offered to other Multiple Listing Service Participants for their services with respect to any listing by advance published notice to the Service so that all Participants will be advised. Note 3: The Multiple Listing Service shall make no rule on the division of commissions between Participants and non-participants. This should remain solely the responsibility of the listing broker. Note 4: Multiple Listing Services, at their discretion, may adopt rules and procedures enabling listing brokers to communicate to potential cooperating brokers that gross commissions established in listing contracts are subject to court approval or to lender approval; and that compensation payable to cooperating brokers may be reduced if the gross commission established in the listing contract is reduced by a court or by a lender. In such instances, the fact that the gross commission is subject to court or to lender approval and either the potential reduction in compensation payable to cooperating brokers or the method by which the potential reduction in compensation will be calculated must be clearly communicated to potential cooperating brokers prior to the time they submit an offer that ultimately results in a successful transaction. (Adopted 11/98) Note 5: Compensation Specified on Each Listing Nothing in these MLS rules precludes a listing participant and a cooperating participant, as a matter of mutual agreement, from modifying the cooperative compensation to be paid in the event of a successful transaction. Interboard Arbitration Procedures: Arbitration shall be conducted in accordance with any existing interboard agreement or, alternatively, in accordance with the interboard arbitration procedures in the Code of Ethics and Arbitration Manual of the NATIONAL ASSOCIATION OF REALTORS. Nothing herein shall preclude participants from agreeing to arbitrate the dispute before a particular association of REALTORS Section 5.1 Participant as Principal: If a Participant or any licensee (or licensed or certified appraiser) affiliated with a Participant has any ownership interest in a property, the listing of which is to be disseminated through the Multiple Listing Service, that person shall disclose that interest when the listing is filed with the Multiple Listing Service and such information shall be disseminated to all Multiple Listing Service Participants. Section 5.2 Participant as Purchaser: If a Participant or any licensee (including licensed and certified appraisers) affiliated with a Participant wishes to acquire an interest in property listed with another Participant, such contemplated interest shall be disclosed, in writing, to the listing broker not later than the time an offer to purchase is submitted to the listing broker. Section 5.3 Dual or Variable Rate Commission Arrangements: The existence of a dual or variable rate commission arrangement (i.e., one in which the 16