Common MLS Violations | How to avoid trouble

It is no secret that with distressed properties becoming the overwhelming number of listings in the greater Sacramento Region that this has caused an increase in potential MLS violations as many of the agents are from out of the area and are not really versed in the actual MLS rules.

Most of these violations could be avoided if out of area agents just read through the regulations. Metrolist has a forty page document  available on their website, the same website used to upload listings to the MLS system.

The brokerage I work for has identified the six most common MLS rules and the fines associated with each. Note fines were current as of 5/08.

• Placing a non Metrolist keybox on the listing. This is one of the most common violations that I see.  Out of area agents think they are going to save themselves a little money and not buy a supra lock box, well the fine is $100 and recently they also made it mandatory that if caught without a Metrolist box that the agent buy one so cost is now over $200. 
• Failure to correctly categorize the listing as a short sale.  Gaining the approval of the lenders is key to a successful short sale and to not disclose if the property is subject to a short sale is misleading.  Fine $100.
• Entering a listing in the MLS program more than 3 business days after the listing date. This is to avoid agents holding on to listings without properly exposing the home to the open market. Fine $100.
• Putting confidential information in public remarks. Some of this has to do with safety and integrity of the data. Easy access to alarm codes, mechanic lock boxes, present a potential safety hazard to the property. Other confidential information is a bit more arbitrary, commission splits, but they are written to protect the MLS members and therefore should be respected. $100 fine.
• Marketing the property prior to the On Market Date.  So MLS rules are a bit complicated when it comes to when a property comes on the market, however the basic concept is that the "marketing" of the property can not begin until  the property is active in the computer system.  This again is just part of the rules. This is a $250 violation.
• Placing a link to a website in the property description remarks.  OK so I would love to advertise my website directly in my listings but since my fellow agents are also not allowed to advertise that is fine as well.  The fine for this is $100.

While I am a director on the Yolo Association of Realtors, this is just some information that my office recently provided to all the agents, at least in my office.  I hope that out of town agents not familiar with Metrolist rules are able to avoid getting fined and hope this provides a quick refresher to those of us in the Sacramento Region on the MLS.

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