Summary

There are several changes in NAR MLS policies and Model MLS governing documents for 2026, pursuant to the new Multiple Listing Options for Sellers Policy, the recommendations from the MLS Policy Risk Assessment PAG, and more. These changes are explained below and can be found in the 2026 Handbook on Multiple Listing Policy.

For additional details go to facts.realtor.

For comprehensive background on the NAR Settlement go to facts.realtor.

Self-Certification: MLS’s must self-certify that their local MLS Rules and Regulations comply with all mandatory policies and rules effective January 2026.

All MLS policies and model MLS rules are identified as one of the following four compliance classifications as noted by the letters:

M Mandatory*
R Recommended
O Optional
I Informational

*Adoption is necessary to ensure compliance with mandatory policies and ensure coverage under the NAR’s insurance policy for associations and MLSs. Unless indicated otherwise, local adoption is required by March 1, 2026.

Changes to Model Rules and Regulations for an MLS (Part Three, C and F)

Listing Procedures, Section 1 Listing Procedures (in pertinent part)...

The different types of listing agreements include:

  • exclusive right-to-sell
  • exclusive agency
  • open
  • net

The service may not accept net listings because they are deemed unethical and, in most states, illegal. Open listings may be accepted at local MLS discretion are not accepted and must be accepted except where required by law because the inherent nature of an open listing. Cooperation is the obligation to share information on listed property and to make property available to other brokers for showing to prospective purchasers and tenants when it is in the best interest of their clients…

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 net listings and may decline to accept open listings at local discretion (except where 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 1.3 Exempt Listings Multiple Listing Options for Sellers

If the seller refuses to permit the listing to be disseminated by the service, the participant 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 certification signed by the seller that he does not desire the listing to be disseminated by the service.

Note 1: Section 1.3 is not required if the service does not require all (indicate type[s] of listing[s] accepted by the service) listings to be submitted by a participant to the service.

Office Exclusive: Where the seller has directed the listing broker to not publicly market their property and to not disseminate it through the MLS to other MLS Participants and Subscribers, the Participant may then take the listing as an office exclusive exempt listing and such listing shall be filed with the MLS, subject to its local filing rules, but not disseminated to other MLS Participants and Subscribers.

Delayed Marketing: Where the seller has directed the listing broker to delay the public marketing of their property through IDX and syndication for [insert local delayed period as set my MLS’s unfettered local discretion]. A delayed marketing exempt listing shall be filed with the MLS, subject to its local filing rules, and disseminated to other MLS Participants and Subscribers. The listing broker shall not be precluded from marketing the delayed marketing exempt listing in a manner consistent with the seller’s choice.

Exempt Listing Disclosure: The filing of an exempt listing (office exclusive or delayed marketing) with the MLS must be pursuant to a certification, signed by the seller, obtained by the listing broker which includes:

  • disclosure about the professional relationship between the Participant and the seller;
  • acknowledgement that the seller understands the MLS benefits they are waiving or delaying with the exempt listing, such as broad and immediate exposure of their listing through the MLS; and
  • confirmation of the seller’s decision that their listing not be publicly marketed and disseminated by the MLS to other MLS Participants and Subscribers as an office exclusive listing or that their listing will not have immediate public marketing through IDX and Syndication as a delayed marketing listing.

Multiple Listing Options for Sellers requirements only apply to listing types that are subject to mandatory submission pursuant to the MLS local rules.

Note 1: The Multiple Listing Options for Sellers policy is designed to give consumers greater choice and flexibility in marketing their homes for sale. Each MLS has the unfettered local discretion in determining what is most suitable for their marketplace regarding a Delayed Marketing Exempt listing which includes adopting “0” days or to not implement the Delayed Marketing aspects of the Multiple Listing Options for Sellers policy.

Note 2: MLS Participants must distribute Office Exclusive eExempt listings through the MLS to other MLS Participants and Subscribers within (1) one business day once after the listing is has been publicly marketed. See Section 1.01, Clear Cooperation. (Amended 8/25) M

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. (Amended 4/92) M

Section 2.2 Submission of Written Offers and Counter-offers

The listing broker shall submit to the seller all written offers until closing unless precluded by law, government rule, regulation, or agreed otherwise in writing between the seller 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. (Amended 11/05) M

Section 2.3 Right of Cooperating Broker in Presentation of Offer

The cooperating broker (subagent or buyer agent) or his representative has the right to participate in the presentation to the seller or lessor of any offer he secures to purchase or lease. He 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 or lessor’s written instructions. None of the foregoing diminishes the listing broker’s right to control the establishment of appointments for such presentations.

Where the cooperating broker is not present during the presentation of the offer, the cooperating broker can request in writing, and the listing broker must provide, as soon as practical, written affirmation stating that the offer has been submitted to the seller, or written notification that the seller has waived the obligation to have the offer presented. (Adopted 11/19) M 

Section 2.4 Right of Listing Broker in Presentation of Counter-offer

The listing 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. (Adopted 11/93) M

Compliance with Rules

Section 7 Compliance with Rules—Authority to Impose Discipline

By becoming and remaining a participant or subscriber in this MLS, each participant and subscriber agrees to be subject to the rules and regulations and any other MLS governance provision. The MLS may, through the administrative and hearing procedures established in these rules, impose discipline for violations of the rules and other MLS governance provisions. Discipline that may be imposed may only consist of one or more of the following:

a. letter of warning
b. letter of reprimand
c. attendance at MLS orientation or other appropriate courses or seminars which the participant or subscriber can reasonably attend taking into consideration cost, location, and duration
d. appropriate, reasonable fine not to exceed $15,000
e. suspension of MLS rights, privileges and services for not less than thirty (30) days nor more than one (1) year
f. termination of MLS rights, privileges, and services with no right to reapply for a specified period not to exceed three (3) years. (Revised Amended 11/1425) M

Orientation

Section 17 Orientation

Any applicant for MLS participation and any licensee (including licensed or certified appraisers) affiliated with an MLS participant who has access to and use of MLS-generated information shall complete an orientation program of no more than eight (8) classroom hours devoted to the MLS rules and regulations and computer training related to MLS information entry and retrieval and the operation of the MLS within thirty (30) days after access has been provided. (Amended 11/04) M

Participants and subscribers may be required, at the discretion of the MLS, to complete additional training of not more than four (4) classroom hours in any twelve (12) month period when deemed necessary by the MLS to familiarize participants and subscribers with system changes or enhancements and/or changes to MLS rules or policies. Participants and subscribers must be given the opportunity to complete any mandated orientation and additional training remotely. (Amended 11/17) Deleted

Section 18, Internet Data Exchange (IDX) (in pertinent part)…

Section 18.2 Participation

Note: Select one of the following four options. Participation in IDX may be limited to MLS participants engaged in real estate brokerage by adopting Option #23 or Option #4. M

Option #1: Participation in IDX is available to all MLS participants who consent to display of their listings by other participants.

Option #2: Participation in IDX is available to all MLS participants who are REALTORS® and who consent to display of their listings by other participants.

Option #3: Participation in IDX is available to all MLS participants engaged in real estate brokerage who consent to display of their listings by other participants. (Amended 11/09)

Option #4: Participation in IDX is available to all MLS participants who are REALTORS® who are engaged in real estate brokerage and who consent to display of their listings by other participants. (Amended 11/0925)…

Section 18.3.11

Listings obtained through IDX feeds from REALTOR® Association MLSs where the MLS Participant holds participatory rights must be displayed separately from listings obtained from other sources. Listings obtained from other sources (e.g., from other MLSs, from non-participating brokers, etc.) must display the source from which each such listing was obtained.* (Amended 05/17) O

Note: An MLS Participant (or where permitted locally, an MLS Subscriber) may co-mingle the listings of other brokers received in an IDX feed with listings available from other MLS IDX feeds, provided all such displays are consistent with the IDX rules, and the MLS Participant (or MLS Subscriber) holds participatory rights in those MLSs. As used in this policy, “comingling” means that consumers are able to execute a single property search of multiple IDX data feeds resulting in the display of IDX information from each of the MLSs on a single search results page; and that Participants may display listings from each IDX feed on a single webpage or display. (Adopted 11/14)

Section 19, Virtual Office Websites (VOWs) (in pertinent part)…

Section 19.23

A Participant shall cause any listing displayed on his or her VOW obtained from other sources, including from another MLS or from a broker not participating in the MLS, to be searched separately from listings in the MLS. O

Changes to MLS Policy Statements

Part Two, Policies, B. Structure (in pertinent part)…

Section 3 Multiple Listing Service Reciprocal Agreements Between Associations, Contract Service for Multiple Listing Service, or Other Association Agreements Concerning the Association Multiple Listing Service (Policy Statement 7.19)

If an agreement is in effect or being considered between associations of REALTORS® or between MLSs for establishment of an MLS cooperative venture of any type, the agreement should be in writing including, but not limited to, the following items:

  1. purpose of the agreement
  2. geographic territory to be served
  3. rights and responsibilities of each association and its members
  4. form of governing body
  5. method of appointment or election of such governing body
  6. responsibilities and accountability of the governing body to the respective associations party to the agreement
  7. roles and responsibilities of each association for enforcement of the Code of Ethics and for dispute resolution between MLS Participants
  8. intent of the multiple listing service(s) to operate in compliance with the multiple listing policies of the National Association
  9. terms and procedures for resolving controversies between associations or between the association and the MLS. The agreement should also specify the terms under which the agreement may be terminated
  10. rights and responsibilities of recipients of data related to relicensing of data (Amended 11/04) M

Section 4 Relationship of Association with Independent Multiple Listing Service in Association Area (Policy Statement 7.20)

No association may make or maintain any rule prohibiting a REALTOR® from participating in an independent multiple listing service. Associations shall take every action necessary to avoid responsibility and liability for the policies, practices, conduct and activities of any unaffiliated multiple listing service not owned and operated by it. In this connection the association shall document by letter to such independent multiple listing service that the association has no relationship or agreement with the service, no jurisdiction over the service, and no responsibility for it. (Amended 2/94)

This policy statement is not intended to prohibit associations from entering into cooperative relationships with independent multiple listing services (that limit participation to appropriately licensed or certified individuals or firms), including reciprocity agreements, regionalization agreements, and other forms of cooperative venture. (Adopted 2/94)

Such agreements may limit coverage under the National Association’s blanket errors and omissions insurance policy and associations will want to ascertain the extent of insurance coverage, and the availability of coverage from other sources, prior to entering into such agreements. (Adopted 2/94)

Explanation: A primary responsibility of an association of REALTORS® is to protect the interests of the association and its members. With respect to an unaffiliated independent multiple listing service not owned or controlled by the association, or that is not party to an agreement with the association, the association has no jurisdiction over such multiple listing service and can, therefore, assume no responsibility for it or its actions. Positive effort should, therefore, be made to establish clearly that there is no relationship between the association of REALTORS® and the independent multiple listing service even though some or all of the multiple listing service Participants may also be members of the association, and that no direct or indirect control is exercised by the association in connection with said independent multiple listing service. Such effort by the association should be documented to provide a basis for extricating the association from any litigation which may be brought against the independent multiple listing service and which may also name the association as a party to such litigation. (Amended 2/94) M

Section 6 Service Area of Association Multiple Listing Services (Policy Statement 7.42)

The service area of multiple listing services owned and operated by associations of REALTORS® is not limited to the jurisdiction of the parent association(s) of REALTORS®. Rather, associations are encouraged to establish multiple listing services that encompass natural market areas and to periodically reexamine such boundaries to ensure that they encompass the relevant market area. While associations are encouraged to work cooperatively to establish market area multiple listing services, the absence of such an agreement shall not preclude any association from establishing and maintaining a multiple listing service whose service area exceeds that of the parent association(s) jurisdiction. MLSs may not require other offices of a firm to participate in the MLS if any office of that firm participates in that MLS. (Revised 11/17) M

Part Two, Policies, C. Administration, Operational Issues (in pertinent part)…

Section 1 Procedures to Be Followed by an Association of REALTORS® Upon Demand for Access to the Association’s Multiple Listing Service without Association Membership (Policy Statement 7.25)

In states other than California, Georgia, Alabama, and Florida, whenever an association is confronted with a request or demand by an individual for access to the association’s multiple listing service without membership in the association, member associations are advised that the association should immediately advise both the state association and the Member Policy Department of the National Association, and the recommended procedures will be provided to the member association with any other pertinent information or assistance. It is important that the state association and National Association be advised immediately if such request or demand for access to the association MLS as described is received. M

Section 2 Prerequisites for Participation in or Access to a Commercial/ Industrial Multiple Listing Service of an Association of REALTORS® (Policy Statement 7.26)

An association may require any applicant for commercial information exchange participation or commercial/industrial MLS participation and any licensee affiliated with the CIE or C/I MLS Participant who has access to and use of CIE or C/I MLS-generated information to complete an orientation program of no more than twelve (12) classroom hours devoted to the CIE or C/I MLS rules and regulations and computer training related to the CIE or C/I MLS information entry and retrieval. (Amended 11/96)

Note: Associations are not required to establish prerequisites for CIE or C/I MLS participation beyond holding REALTOR® (principal) membership in an association. However, if an association wishes to establish prerequisites for CIE or C/I MLS participation or access to CIE or C/I MLS-generated information, the requirement of attendance at an orientation program is the most rigorous prerequisite that may be required. (Amended 11/96) M

Section 3 MLS Indoctrination Requirements Relating to Individuals Entitled to Participation without Association Membership (Policy Statement 7.38)

In processing the application of an individual entitled by law to MLS participation without REALTOR® membership, the listing information and services shall be promptly provided upon completion of the following: 1. confirmation applicant has a valid, current, real estate license or certificate 2. applicant’s written application and agreement to abide by the MLS rules and regulations 3. applicant’s completion of any required MLS orientation on MLS bylaws, MLS rules and regulations, other MLS related policies or procedures, and computer training related to MLS information entry and retrieval within a reasonable time not to exceed thirty (30) days, and 4. payment of all required initial MLS fees or charges If any examination on the MLS orientation is given, it shall be an open-book, no-pass, no-fail examination for programmed learning purposes only. (Amended 11/04) M

Section 7 Names of Multiple Listing Services (Policy Statement 7.54)

The names of association owned or operated multiple listing services (including multi-association and regional multiples) should rationally relate to the area served. Challenges by other associations to the appropriateness of any name utilized shall be considered and determined by the board of directors of the state association if attempts to resolve the conflict locally fail. Documentation of the attempt to resolve the conflict shall be forwarded to the state association. Challenges to the names of multiple listing services with multi-state jurisdictions shall be resolved by the National Association. The chairperson of the multiple listing policy committee shall appoint a panel of committee members to hear the challenge, and forward its recommendations to the National Association’s Board of Directors for final disposition. Challenges to pre-existing names must be filed within one (1) year following the January 1, 1993 effective date. Existing in-state multiple listing services shall be grandfathered as to their names. Each state association shall have the right to override the grandfather provision by a two-thirds (2/3) vote of its board of directors. (Amended 4/92) M

Section 10 Nonmember Broker/Appraiser Access (Policy Statement 7.55)

MLSs may, as a matter of local discretion, make limited participation in MLS available to all brokers (principals) and firms comprised of brokers (principals) and to licensed or certified real estate appraisers (principals) and firms comprised of licensed or certified real estate appraisers. Limitations on participatory rights, if any, shall be determined locally. (Amended 11/04) O

Section 13 Orientation and Other Training (Policy Statement 7.92)

Multiple listing services may, as a matter or local discretion, require applicants for MLS participation and licensees (including licensed or certified appraisers) affiliated with an MLS Participant who have access to and use of MLS-generated information to complete an orientation program of no more than eight (8) classroom hours devoted to the MLS rules and regulations, computer training related to MLS information entry and retrieval, and the operation of the MLS within thirty (30) days after access has been provided. Participants and Subscribers may also be required, at the discretion of the MLS, to complete additional training of not more than four (4) classroom hours in any (12) twelve month period when deemed necessary by the MLS to familiarize Participants and Subscribers with system changes or enhancements and/or changes to MLS rules or policies. Participants and Subscribers must be given the opportunity to complete any mandated orientation and additional training remotely. (Amended 11/17) M

Part Two, Policies D. Data, Current Listings (in pertinent part)…

Section 4 Open Listings (Policy Statement 7.62)

Except where required by law, multiple listing services shall not include open listings in MLS compilations since open listings generally do not include authority to cooperate with and compensate other brokers. (Adopted 11/04) M

Section 5 Office Exclusive Listings (Policy Statement 7.63) Multiple Listing Options for Sellers (Policy Statement 8.14)

If a seller withholds consent for a listing to be published in an MLS compilation of current listings, such listings shall be field with the MLS but not disseminated to other Participants. As a matter of local discretion, certification maybe required from the seller or from the listing broker that the listing is being withheld from the MLS at the discretion of the seller.

Office Exclusive: Is an exempt listing where the seller has directed that their property not be disseminated through the MLS and not be publicly marketed. The office exclusive listing shall be filed with the MLS but not disseminated to other MLS Participants and Subscribers.

Delayed Marketing: Is an exempt listing where the seller has directed the listing broker to delay the public marketing of that listing through IDX and syndication for any period as allowed by the local MLS in its unfettered discretion. A delayed marketing listing shall be filed with the MLS and does not preclude the listing firm from marketing the listing in a manner consistent with their seller’s choice.

Exempt Listing Disclosure: The filing of an exempt listing (office exclusive or delayed marketing) with the MLS must be pursuant to a certification obtained by the listing broker from the seller which includes:

  • disclosure about the professional relationship between the Participant and the seller;
  • acknowledgement that the seller understands the MLS benefits they are waiving or delaying with the exempt listing, such as broad and immediate exposure of their listing through the MLS; and
  • confirmation of the seller’s decision that their listing not be publicly marketed and disseminated by the MLS as an office exclusive listing or that their listing will not have immediate public marketing through IDX and Syndication as a delayed marketing listing.

Multiple Listing Options for Sellers requirements only apply to listing types that are subject to mandatory submission pursuant to the MLS local rules. M

(New) Section 22 Definition of “syndication” (Policy Statement 8.15)

“Syndication” as used in NAR MLS policy, refers to the MLS’s display of Participants’ listings on an MLS public website and the MLS’s distribution of Participants’ listings to a third-party to advertise and/or display on their website. It does not apply to the transmission of Delayed Marketing Exempt Listings (DMEL) through a Brokerage Back Office feed (MLS Policy Statement 8.7) or a data feed of an MLS Participant’s listings (MLS Policy Statement 8.3). (Adopted 11/25) I

Part Two, Policies, Advertising, Print and Electronic, Section 1 Internet Data Exchange (IDX) Policy (Policy Statement 7.58) (in pertinent part)…

Additional Local Issues/Options

  1. Where MLS participatory rights are available to non-member brokers or firms as a matter of law or local determination, the right to IDX display of listing information may be limited, as a matter of local option, to Participants who are REALTORS®. (Amended 05/12)
  2. MLSs may, but are not required to, limit the right to display listing information available pursuant to IDX to MLS Participants licensed as real estate brokers.
  3. MLSs may, but are not required to, limit the right to display listing information pursuant to IDX to MLS Participants engaged in real estate brokerage. (Amended 11/09)
  4. MLSs may, but are not required to, allow non-principal brokers and sales licensees affiliated with MLS Participants to use information available through IDX to populate their own websites or to use in other IDX displays.
    Even if use of information through IDX is provided to non-principal brokers and sales licensees affiliated with MLS Participants, such use is subject to the affiliated Participants’ consent and control and the requirements of state law and/or regulation, and MLS rules. (Amended 05/12)
  5. MLSs cannot prohibit Participants from downloading and displaying or framing other brokers’ listings obtained from other sources, e.g., other MLSs, non-participating brokers, etc., but can, as a matter of local option, require that listings obtained through IDX feeds from REALTOR® Association MLSs be searched separately from listings obtained from other sources. (Amended 11/14)
    Note: An MLS Participant (or where permitted locally, an MLS Subscriber) may co-mingle the listings of other brokers received in an IDX feed with listings available from other MLS IDX feeds, provided all such displays are consistent with the IDX rules, and the MLS Participant (or MLS Subscriber) holds participatory rights in those MLSs. As used in this policy, “comingling” means that consumers are able to execute a single property search of multiple IDX data feeds resulting in the display of IDX information from each of the MLSs on a single search results page; and that Participants may display listings from each IDX feed on a single webpage or display. (Adopted 11/14)
  6. MLSs may, as a matter of local option, charge the costs of adding or enhancing their downloading capacity to Participants who will download listing information. Assessment of such costs should reasonably relate to the actual costs incurred by the MLS. (Amended 11/06)
  7. MLSs may prohibit advertising controlled by Participants (including co-branding) on any pages displaying IDX-provided listings. (Amended 05/12)
    MLSs permitting advertising (including co-branding) on pages displaying IDX-provided listings may prohibit deceptive or misleading advertising (including co-branding).
    For purposes of this provision, co-branding will be presumed not to be deceptive or misleading if the Participant’s logo and contact information is larger than that of any third party. (Amended 11/09) M

Section 3 Transmittal of Participants’ Listings to Aggregators (Policy Statement 7.87)

MLSs are not required to transmit Participants’ listings to third-party aggregators or to operate a public website displaying listing information. If an MLS transmits Participants’ listings to third-party aggregators and/or operates a public website displaying listing information, all exclusive listings, regardless of type, will be included in the data feed (unless a Participant withholds consent for such transmission), except that MLSs may exclude from such data feed any listing where both of the following conditions are present:

a. the listed property’s street address or a graphic display of the property’s specific location will be displayed to the public; and
b. the seller displays on the property a “for sale by owner” sign or other sign or notice indicating that the seller is soliciting direct contact from buyers. (Adopted 11/06) M

Part Two, Policies, E. Participants Rights (in pertinent part)…

Section 2 Association Membership as Prerequisite to MLS Participation (Policy Statement 7.7)

To the extent permitted by law, the National Association remains firmly and unequivocally committed to the principle that association membership is a reasonable condition of participation in the association’s multiple listing service providing membership in the association is readily available to all eligible and qualified individuals on reasonable and nondiscriminatory terms and conditions. (Amended 11/04) R

Section 7 Presentation of Offers (Policy Statement 7.71)

Consistent with Standard of Practice 1-6, MLSs may require that listing brokers make arrangements for prompt presentation of offers and, where offers cannot be presented promptly, that listing brokers explain to cooperating brokers why offers they procured could not be presented. (Adopted 11/04) M

Section 13 Submission of Offers (Policy Statement 7.72)

As required by Standard of Practice 1-7, listing brokers will continue to submit written offers to their seller-clients until closing unless precluded by law, government rule or regulation, or unless agreed otherwise in writing between the seller and the listing broker. Except where a subsequent offer is contingent upon termination of an existing contract, listing brokers shall recommend that sellers obtain the advice of legal counsel prior to accepting any subsequent offer. (Adopted 11/04) M

Section 9 Rights of Cooperating Brokers in Presentation of Offers (Policy Statement 7.73)

Cooperating Participants or their representatives have the right to participate in the presentation of any offer they secure to purchase or lease to the seller or lessor. They do not have the right to be present at any discussion or evaluation of the offer by the seller or lessor and the listing broker. However, if a seller or lessor gives written instructions to a listing broker that cooperating brokers may not be present when offers they procure are presented, cooperating brokers have the right to a copy of those instructions. This policy is not intended to affect listing brokers’ right to control the establishment of appointments for presentation of offers.

Where the cooperating broker is not present during the presentation of the offer, the cooperating broker can request in writing, and the listing broker must provide, written affirmation stating that the offer has been submitted to the seller, or written notification that the seller has waived the obligation to have the offer presented. (Amended 11/19) M

Section 10 Rights of Listing Brokers in Presentation of Counter-offers (Policy Statement 7.74)

Listing participants or their representatives have the right to participate in the presentation of any counter-offer made by a seller or a lessor. They do not have the right to be present at any discussion or evaluation of a counter-offer by the purchaser or lessee (except where the cooperating broker is a sub-agent). However, if a purchaser or lessee gives written instructions to the cooperating broker that the listing broker may not be present when a counter-offer is presented, the listing broker has a right to a copy of those instructions. (Adopted 11/04) M

Part Two, Policies, F. Enforcement of Rules (in pertinent part)…

Section 4 Financial Penalty Not to Exceed $15,000 (Policy Statement 7.89)

Notwithstanding the limitations established in the NATIONAL ASSOCIATION OF REALTORS® Code of Ethics and Arbitration Manual or in other National Association policy, multiple listing services operated as committees of associations of REALTORS® or as separate, wholly-owned subsidiaries of one or more associations of REALTORS® are authorized to impose financial penalties on Participants or Subscribers as discipline for violations of MLS rules or other MLS governance provisions not greater than fifteen thousand ($15,000) dollars. (Adopted 11/07) M

Section 5 MLS Disciplinary Guidelines

Associations of REALTORS® and their multiple listing services have the responsibility of fostering awareness, understanding, and appreciation for the duties and responsibilities of MLS Participants and Subscribers, and of receiving and resolving complaints alleging violations of the rules and regulations. The REALTOR® organization is firmly committed to vigorous, fair, and uniform enforcement. Enforcement achieves a number of goals. Where Participants or Subscribers are wrongly or mistakenly charged with violations, the hearing process provides personal and professional vindication. Where violations are determined, enforcement process educates Participants and Subscribers about their duties and obligations, and serves as a meaningful deterrent of future violations.

Allegations of conduct inconsistent with the rules are often viewed by respondents as threats to their professional and personal reputations. This can result not only in their mounting vigorous defenses but also, at times, to threats of legal challenge should a violation be determined and discipline imposed. Given that MLS participation can have significant economic value, associations and their MLSs need to strictly adhere to their established procedures when considering potential violations. This caution ensures that the rights of the parties will be observed, and legal exposure of associations and their MLSs will be minimized.

At the same time, well-founded caution should not be confused with reservation, reluctance, or hesitancy. Rules become aspirations at best, and potentially meaningless, if not enforced with vigor and determination.

Fundamental to fair and consistent enforcement is reasonable and judicious use of discipline, as both an educational device and as punishment. Associations and their MLSs have a wide variety of sanctions available to them that may be imposed for violations. These range from simple letters of warning to termination of MLS rights and privileges. Between these extremes are mandatory attendance at remedial education sessions, financial penalties, probation, and suspension.

The National Association does not recommend specific penalties for certain offenses or for violations of particular rules. This is in deference to the wisdom and autonomy of the hearing panel privy to the details of complaints coming before them; in recognition of the fact that no two complaints are identical; and in view of the facts that the details of each hearing, including the experience of respondents, their history of prior violations, and mitigating or extenuating circumstances, may all come into play in determining an appropriate penalty. At the same time, there are key points to be considered with respect to imposition of discipline.

  • Discipline that can be imposed is strictly limited to those forms authorized in the National Association of REALTORS® Code of Ethics and Arbitration Manual and to any additional form authorized by the National Association’s board of directors.
  • Discipline should be commensurate with the offense. Unintentional or inadvertent violations should result in penalties designed to educate respondents about the conduct expected of them. Only authorized forms of discipline may be utilized.
  • Discipline should be progressive. The disciplinary emphasis on violations by new members or by long-standing members with no history of prior violations should be primarily educational. Repeated or subsequent violations should be addressed with more serious forms of discipline, including substantial fines, suspension, and termination of MLS rights and privileges.
  • A gray area can exist with respect to “first time violations” that are clearly not the result of ignorance or mistake but rather demonstrate flagrant disregard for the rules. While the educational aspect of enforcement cannot be disregarded, the fact that the rules exist to protect clients and customers, the public, and to ensure effective, efficient functioning of the MLS, must also be considered in determining commensurate discipline.
  • Mitigating or extenuating circumstances should be considered in determining appropriate discipline. The fact that a respondent recognizes or acknowledges inappropriate conduct or took steps to remediate or minimize harm or injury, should be considered in determining appropriate discipline.
  • Respondent’s records of earlier violations or, conversely, the fact that they have not violated the rules in the past, can be considered in determining appropriate discipline. Hearing panels cannot consider past violations in deciding whether the conduct currently complained of violates the rules.

Crafting appropriate, meaningful discipline can challenge panels that have concluded the rules have been violated. This discussion is offered as guidance, rather than as a hard and fast template, to assist panels in meeting their responsibility in ensuring the rules’ viability and vitality through vigorous and evenhanded enforcement.

Progressive Discipline

Discipline imposed for violation of the rules should be progressive. The severity of discipline should increase incrementally for subsequent violations. The disciplinary emphasis where first time violations occur should be primarily educational. Repeated or subsequent violations should result in more serious forms of discipline being utilized, including substantial fines, suspension, and termination of MLS rights and privileges. At the same time, a gray area can exist where a first-time violation is not attributable to ignorance or oversight, but rather to blatant disregard for the rules. While the educational emphasis of enforcement cannot be disregarded, the fact the rules exist to protect clients and customers, the public, and to ensure the effective, efficient functioning of the MLS must be carefully considered in determining appropriate discipline.

Factors hearing panels should consider in determining appropriate discipline include, but are not necessarily limited to:

  • The nature of the violation
  • Harm caused by the violation. Was the violation a minor mistake causing little or no harm or, alternatively, was a client, customer, member of the public, or another Participant harmed?
  • Was the violation inadvertent or unintentional or, conversely, was it the result of knowing disregard for the obligations of MLS Participants and Subscribers?
  • How much real estate experience did the violator have? Did he, or should he, have known better?
  • Has the violator been found in violation of the rules previously? How often? How recently? Is the current violation related or similar to earlier violations?
  • Are there mitigating or extenuating circumstances that should be considered in determining appropriate discipline?
  • Did the violator acknowledge the violation? Did the violator express remorse or contrition?
  • Are there other factors that ought to be considered?

Administrative Sanctions

The following is guidance for issuing administrative sanctions for MLS rule violations:

  • Category 1 violation means a rule violation relating to listing information provided by a Participant or Subscriber.
  • Category 2 violation means a rule violation relating to IDX and VOW displays.
  • Category 3 violation means a rule violation relating to cooperation with a fellow Participant or Subscriber, and mandatory submission of listings to the service.

First Category 1 violation (or first violation within three [3] years):

Possible discipline:

  • Letter of warning
  • Fine of $500 or less
  • Attendance at relevant education session
  • Any combination of the above

Repeat Category 1 violation (within three [3] years):

Possible discipline:

  • Attendance at relevant education session(s) or course
  • Fine of $2,000 or less
  • Any combination of the above

First Category 2 violation (or first violation within three [3] years):

Possible discipline:

  • Letter of reprimand
  • Fine of $2,000 or less
  • Attendance at relevant education session(s)
  • Any combination of the above

Repeat Category 2 violation (within three [3] years):

Possible discipline:

  • Attendance at relevant education session(s) or course
  • Fine of $10,000 or less
  • Suspension from the MLS or from the MLS’ lockbox key access for three (3) months or less
  • Any combination of the above

First Category 3 violation (or first violation within three [3] years):

Possible discipline:

  • Letter of reprimand
  • Fine of $10,000 or less
  • Attendance at relevant education session(s)
  • Suspension from MLS or from use of the MLS’ lockbox key access for ninety (90) days or less
  • Any combination of the above

Repeat Category 3 violation (within three [3] years):

Possible discipline:

  • Attendance at relevant education session(s) or course
  • Fine of $15,000 or less
  • Suspension from MLS or from use of the MLS’ lockbox key access for six (6) months or less
  • Termination from MLS or from use of the MLS’ lockbox key access for 1 to 3 years
  • Any combination of the above

MLSs are encouraged to use the MLS Schedule of Fines Table provided in Appendix 4 to establish standardized administrative sanctions for violations of the MLS rules.

Scope of MLS Handbook for addressing MLS Rule Violations

Potential violations of the MLS rules will be processed in accordance with MLS Policy Statement 7.21, and under the process provided for in Section 9 of the NAR model MLS Rules and Regulations. Potential violations of a data license agreement are not governed by NAR policy and will thus follow the terms for resolution in the agreement itself. (Amended 11/20) I

Part Two, Policies, H. Lock Box/Key Repositories (in pertinent part)…

Section 3 Centralized Key Repositories (Policy Statement 7.46)

A centralized key repository is defined as a system operated by an association multiple listing service which enables an MLS participant to place keys to listed properties in a central location to be made available to other participants and their affiliated licensees to facilitate the showing of listed properties. Under certain circumstances and subject to strict operational rules and regulations, an association multiple listing service may choose to operate a centralized key repository in lieu of a lock box system and still be eligible for coverage under the errors and omissions insurance program of the National Association of REALTORS®. (Approved 2/86) I

Section 4 Minimum Security Measures for Centralized Key Repositories of Association Multiple Listing Services (Policy Statement 7.47)

  1. A centralized key repository is defined as a system operated by a multiple listing service which enables a Participant to place keys to listed property in a central location to be made available to other Participants and their affiliated sales licensees to facilitate the showing of listed property.
  2. Use of the system must be strictly limited to Participants and their affiliated sales licensees.
  3. Keys to listed property may not be submitted unless the property is exclusively listed by the Participant and the listing agreement includes a provision whereby the seller specifically authorizes the listing Participant to place keys in the system. In lieu of such authorization in the listing agreement, the MLS may require the seller’s authorization be provided on a separate document prepared by the MLS.
  4. All keys to listed property must be stored in a locked, secure area in the association or MLS office.
  5. All keys become the property of the association or MLS.
  6. No key may be issued without the consent of the listing office. Any individual requesting a key must indicate, in writing, who in the listing office has authorized the showing.
  7. All keys must be coded in a manner which prevents their identification with a particular property until issued by an authorized representative of the association or MLS.
  8. Lost or stolen keys must be reported to the association or MLS as quickly as possible.
  9. A police report must be filed as quickly as possible whenever a key is lost or stolen.
  10. Any person losing a key must immediately advise the property owner and the listing broker and offer to have all necessary locks changed as quickly as possible.
  11. The issuance of keys must be discontinued immediately upon request of the seller.
  12. Keys must be issued for a specified period of time and failure to return a key within the allotted time shall be considered as a violation of the rules or procedures. When a key is more than twenty-four (24) hours overdue, the association or MLS must contact the person to whom the key was issued and the principal broker or branch manager of the firm to confirm the key has not been lost or stolen and to request its immediate return.
  13. Keys must be destroyed upon expiration of the listing or upon closing (whichever occurs first) or earlier at the direction of the listing Participant.
  14. All rules and procedures for the operation of any centralized key repository must be in writing and be submitted to the National Association for review and approval prior to implementation.
  15. Any association member or employee involved in the administration or operation of the system shall be bonded. M

Part Two, Policies, I. Virtual Office Websites: Policy Governing Use of MLS Data in Connection with Internet Brokerage Services Offered by MLS Participants, IV. Requirements that MLSs May Impose on the Operation of VOWs and Participants (in pertinent part)…

3. An MLS may not prohibit Participants from downloading and displaying or framing listings obtained from other sources, e.g., other MLSs or from brokers not participating in that MLS, etc., but may require either:

a. that such information be searched separately from listings obtained from other sources, including other MLSs, or b. if such other sources are searched in conjunction with searches of the listings available on the VOW, that any display of listings from other sources identify such other source.