The MLS California Real Estate Licence

Be forthright about property condition. You are required to disclose any adverse condition of the property upfront, thereby meeting the ethical and statutory obligations to be truthful and honest in advertising. Here is what Article 2 of NAR's Code of Ethics says: "REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. However, REALTORS® shall not be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts, which are confidential under the scope of agency or non-agency relationships as defined by state law." Certain features or facts about the property may be legally concealed, depending on state or federal law. Here is what the Virginia Association of REALTORS® says in its "Summary of Rights and Obligations of Sellers and Purchasers Under The Virginia Property Disclosure Act", based on the Code of Virginia, Section 55-524: "Purchasers should be aware that neither a seller nor a real estate licensee is obligated to disclose facts or occurrences which have no effect on the physical structure of the property, its physical environment, or the improvements located thereon, or the fact that the property was the site of a homicide, felony, or suicide. Furthermore, it is a violation of federal law to disclose whether a previous occupant of the property was afflicted with the HIV virus or has AIDS. VAR FORM SUM1 REV. 1/08."

: Eyes on Compliance » Chapter 1: Eyes on Compliance » Lesson 2: Avoid False Advertising Page 4 of 5 Slide: U4C1L2S4 • Print Slide Your Facebook page matters. network Advertising includes the marketing done on behalf of listed properties, as well as the advertising done on behalf of the real estate professional and their firms. Advertising happens everywhere that you, as a real estate professional, attempt to increase the awareness of the market about your listings, or about you and your services in general. Personal interest websites, not only your specific website, but your personal pages on social media sites such as Facebook and Twitter, are considered advertising if these sites are used to promote your services and accomplishments. Each state's specific regulations will be different; and professionals' adherence to and knowledge of the state's guidelines is important. Following these guidelines is a good start: Be truthful and honest in all advertising. Always include your firm's name. Do not practice, nor advertise such, outside of your professional qualifications. Adhere to fair housing laws.

Ask these questions to determine how savvy your client is from the start. Is this your first home purchase, or have you owned a home before? Have you consulted with a lender and been pre-approved for a home mortgage loan? Where do you currently live? Do you have easy access to the Internet? Do you have an email account? Do you regularly check your email on your phone? Have you looked for homes online? If so, what are your favorite sites? What do you like most about the Internet home searches? What do you like least? Do you look up driving directions online? If so, what is your favorite site? Have you accessed property tax data online? Do you use online banking? Insurance? Have you contacted any mortgage lender or applied for a loan online? Have you ever checked your credit at an online resource? Is your home currently on the market?

A savvy and informed homebuyer is prepared. Here are key steps that the buyer will often take, with your help, to be fully ready when the right home comes along: Specify the home needed, identifying size, location, and other desired features. Secure lender pre-approval. The savvy homebuyer will know what they can afford, how much is required as a down payment, the estimated closing costs, and any other costs to purchase and close a property. Disclose the maximum funds available within their individual family budget. This amount may be less than the maximum pre-approval amount, but is still the most important number that the buyer can communicate to their real estate professional before the home search process begins. Have reliable access to the Internet. The entire amount of information available to the homebuyer today is easily and efficiently accessible via the Internet. The real estate professional assists the buyer in understanding this, knowing that the ability to view and search online will help both customer and agent to reach the goal in a more satisfactory manner. List and sell their current home, if necessary, first. The facts of life will not always allow this, but the savvy buyer may have the sale of the current home settled first, thereby knowing their actual financial capabilities before the buying process begins. Work with their real estate professional to plan home searches, refine needs and desires, and generally communicate regularly as the process evolves.

Where We Started A Multiple Listing Service (MLS) is a shared database of real estate data and information. Several vendors supply the software/database systems that hold this property data. In this course, "MLS" refers to the combination of the data and software. Most MLSs are owned by local or regional REALTOR® associations. Owning an MLS provides a medium for member agents to cooperatively market properties for sale. Depending on the sophistication of a particular MLS, a wealth of information can be obtained by the members, and when they are allowed access, the general public. A comprehensive MLS allows you to not only view property details, but also to see historical sales data, tax records, demographic information,

Advances in technology allowed MLSs to become powerful sources of information. MLSs were not always the stellar sources of information they've become. In fact, in the pre-MLS days, property was typically advertised by word of mouth, signs, and/or newspaper notices, or it was sold at auctions. The first organized association of real estate brokers and agents occurred in 1847 in New York, but it was short-lived. In 1858, the establishment of the Baltimore Board of Real Estate Brokers and Property Agents, now known as the Greater Baltimore Board of REALTORS®, started the path to a national organization of real estate professionals. This is where MLS systems got their start. The first national organization was established in Chicago in 1908, as the National Association of Real Estate Exchanges. In 1973, this organization was renamed the National Association of REALTORS®. The idea of the MLS expanded as more associations of real estate professionals formed and grew. By the 1920s, the MLS became common across the country. Back then, the actual listings were typewritten, handwritten, or published as a book. Looking back, it's easy to see how limited the early MLS systems were. As you can imagine, in those days, each publication was obsolete before it even came off the presses. In the time it took to publish and distribute the books and papers, new real estate transactions had occurred, and were, of course, not included in the current written publications.

eep it simple and factual. Descriptions of a property in the listing content must avoid words that suggest the type of people in the neighborhood, suitability of the property for a particular family type, ethnic background, or the like. Stick to the facts, embellished only by general adjectives describing the property, its construction, architectural style, factual location, and other verifiable descriptors. Article 10 of NAR's 2014 Code of Ethics addresses a professional's ethical obligations to treat all people equally. Specifically, this Article states: "REALTORS® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. REALTORS® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Amended 1/14) "REALTORS®, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Amended 1/14)"

Avoid phrases or words that imply a preference for or against a protected class. Here are some examples that will help you avoid the pitfalls of a fair housing violation: Located in a predominantly (Caucasian, African American, etc.) neighborhood. Replace with: Located in XYZ subdivision. The first comment is clearly race oriented and could be construed as either negative or positive, whereas the second comment merely states a fact. Being so close to schools makes this home ideal for families. Replace with: The property is two blocks from Lincoln Elementary, and only three blocks from Washington High. Here, the first statement shows a preference for families, suggesting that buyers without school age children need not apply. In the second description, the proximity of the specific schools is a fact, and any prospective buyer makes their own decision about whether this is desirable or not. The nearby Baptist church lends serenity and grace to the neighborhood. Replace with: The well-established neighborhood features tree lined streets and sidewalks. Once again, the first statement singles out a particular religion and lends it the authority to influence the quality of the neighborhood. The second statement is factually verifiable, even if the term "well-established" is subjective. The home features wheelchair accessible showers in both full baths. On the surface, this statement suggests a discriminatory bias. In this instance, fair housing laws allow descriptions of features in a home or building that are designed for handicap accessibility. You may also make factual comments about nearby facilities, such as jogging paths or fitness centers, without violating the law's provisions for handicap as a protected class.

The Federal Fair Housing Act prohibits discrimination in any form for a variety of __________ classes. Congratulations! That's the correct answer! D. protected

C. Located on a quiet cul-de-sac, just blocks from Spring Dale Elementary, in the Elm Bridge subdivision.

Do not make any statements about a property for sale, yourself as the real estate professional, or your brokerage firm, unless those statements are true. Following this guideline will help avoid any charge of false advertising. The 2014 NAR Code of Ethics devotes Article 12 to REALTOR® guidelines; most MLS's and their governing associations, as well as state law, also publish similar guidelines. Specifically, Article 12 states: "REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional." Article 12 is further broken down into 13 Standards of Practice. Two of these are of particular interest: "Standard of Practice 12-6: REALTORS®, when advertising unlisted real property for sale/lease in which they have an ownership interest, shall disclose their status as both owners/landlords and as REALTORS® or real estate licensees" (Amended 1/93). "Standard of Practice 12-8: The obligation to present a true picture in representations to the public includes information presented, provided, or displayed on REALTORS®' Web sites ..." (Adopted

Disclose your status. Professionals always identify themselves and their firm in all real estate related communications or advertising. NAR calls this part of presenting a true picture. With widespread use of online research and syndicated listings, you must ensure that the property description, including your specific agent and brokerage information, carries correctly to other sites. An important distinction exists between the requirement to disclose the real estate professionals involved and accurately describing the listed property. Article 12 of NAR's Code of Ethics provides additional guidance: "Standard of Practice 12-8: REALTORS® shall use reasonable efforts to ensure that information on their websites is current. When it becomes apparent that information on a REALTOR®'s website is no longer current or accurate, REALTORS® shall promptly take corrective action." "Standard of Practice 12-12: REALTORS® shall not: 1) use any URLs or domain names that present less than a true picture, or 2) register URLs or domain names, which, if used, would present less than a true picture."

ind the Right Information Onlineonline An Internet connection is required for access to the wealth of online information available to the real estate client. Knowing that the client has a reliable connection, you can help tailor that information to make the home buying process efficient and seamless. Most MLS systems contain various tools allowing you to interact with your client. A very powerful tool, sometimes referred to as a Prospect, provides a link to a tailored website. The site is the result of a custom search for homes using as much detailed information as the home buying client shares with you, their agent. The process is typically dynamic, allowing the client to watch the market for their desired home and to communicate with the agent with various comments and questions about the listings. If you can capture the client's home search through this type of system, you can often prevent the client from accessing a competing broker's website to search for homes by eliminating the need to do so. The majority of homes listed for sale are with real estate professionals through an MLS. If you have set up your search within your MLS system, your client sees all homes for sale in that MLS meeting their own criteria, regardless of listing agent or firm. Your client will have one central point to look at listings and this point will always be associated with you, their agent.

Each customer or client is different. You must tailor your guidance to fit the sophistication of each client. The goal with all clients is to educate and inform, thereby making them savvy buyers. In doing so, they become confident in their agent, and in the knowledge they acquire. The result is a happy homeowner and a referral source for life.buyer. communityYou cannot ethically pass judgment on what neighborhoods or schools are "good" or "better," but having links to municipal and school system websites affords the buyer an opportunity to conduct research to their own satisfaction. Let your clients draw their own conclusions. At the same time, they are constructing an image in their mind about their life in their new community and their new home. A catchy and interactive website, well-linked to what homeowners consider important, can be invaluable in separating you from your peers. A simple Google search will lead you to dozens of companies offering web-design services for real estate professionals. An excellent no-cost option is to create your website with WordPress, a popular and easy-to-use content management system that offers tremendous flexibility in the layout and design of a site.

Comply with Antitrust Regulationssecret deals Antitrust laws exist to promote fair and honest business dealings. Collusion, or illegal fixing of prices or market conditions, happens when business competitors illegally agree to influence the market, to the detriment of other competitors and clients. The very nature of an MLS being a cooperative association of competitors naturally raises the specter of collusion. Member firms and agents must be careful not to engage in price fixing activities, including the open discussion of their firm's compensation sharing and service pricing structures. The MLS and its governing association must establish rules and regulations that benefit all firms, never excluding any member firm or its listings for not adhering to rigid pricing requirements

Examples of activities between competing firms that might be illegal are: Price fixing, including commission splitting within firms; open discussion of these matters with other member firms, especially at association or MLS meetings, could be a violation of the law. Any agreement to limit one firm's presence in any area or niche to the benefit of another, and vice versa, is by its nature anti-competitive, thus a possible violation of the law. Any prohibition on how member firms of an MLS conduct their business, within ethical and legal guidelines, in order to enforce conformity of price or service. In a free and open marketplace where the participants compete for the business of the consumer, any discussion or establishment of a prevailing, common, set, or standard pricing structure is collusive and open to interpretation as an antitrust violation.

Unfortunately, you did not attain a minimum passing score of 70%. You will need to retake and pass the quiz in order to continue with the course. Please take a few moments to review your quiz results below at which point you can re-take the quiz or return to the course to review the content for this section of the course. No need to be frustrated, you can take the quiz as many times as you need to. 1. To meet the ethical and statutory obligations of being truthful and honest in advertising, you must disclose __________. A. the property owner`s cell phone number, and where they work B. any adverse condition of the property upfront This is the correct answer C. the listing and selling agents` work histories D. the future development plans for adjacent properties This was your answer, which is incorrect. Feedback: You must disclose any adverse condition of the property upfront to be truthful and honest in advertising. 2. In a free market, any discussion or establishment by competitors of a prevailing, common, set, or standard pricing structure is __________. A. permitted This was your answer, which is incorrect. B. collusive This is the correct answer C. encouraged D. a state matter only Feedback: In a free market, any discussion or establishment by competitors of a prevailing, common, set, or standard pricing structure is collusive. 3. You should not include a phrase like "good neighborhood" in a description; instead you should ______. A. describe the demographic make-up of the neighborhood B. neighborhood describe the type of person who would best "fit in" in that neighborhood C. ask the sellers to writer their own description of the neighborhood D. suggest to buyers that inquire about the neighborhood that they check with local authorities and other objective sources of information. Congratulations, this is the correct answer! 4. The listing agent and broker information, including phone number and Web site, should appear in the __________ of the listing in the MLS. A. Remarks field B. Agent-only fields, and not be available to the general public, in the basic MLS listing This is the correct answer C. Pictures of the property, with the sign in the front yard D. General public fields This was your answer, which is incorrect. Feedback: The listing agent and broker information should only appear in the agent only fields. 5. When advertising a property you must avoid phrases that imply a preference for or against a __________. A. protected class Congratulations, this is the correct answer! B. city law C. particular sports team D. HOA covenants and bylaws 6. The activities between competing firms that antitrust laws would consider legal include __________. A. requiring all MLS members to discuss their commission splitting policies B. requiring all MLS members to follow a similar price schedule C. MLS members voting to ban one firm from adding foreclosure listings to the MLS D. MLS members chipping in to pay for MLS-based advertisements Congratulations, this is the correct answer! 7. Being the source of data for property sales and offerings, __________ are the underpinnings of an honest and efficient market. A. NAR® members B. tax assessors C. appraisers D. MLS systems Congratulations, this is the correct answer! 8. Which of the following questions could you ask to gauge how tech-savvy your customer is? A. Where did you go to school? B. Do you bank online? Congratulations, this is the correct answer! C. Do you work evenings? D. What was your previous employer`s name? 9. One of these phrases should NOT appear publicly in an MLS listing. Which one? A. New locks installed 2012 B. Lockbox combination: 2744 Congratulations, this is the correct answer! C. Locking front gate with antique hardware D. Locking built-in gun cabinet in den Retake Exam Continue Course

Eyes on Compliance Lesson 1: Adhere to Fair Housing Regulations The U.S. Fair Housing Act (Title VIII of the Civil Rights Act of 1968, as amended) prohibits bias for or against any client in the protected classes: Race Color National origin Handicap Religion Familial status Sex Certain exceptions may allow for age specific communities; however, when the community or neighborhood is not legally set up for residents of a certain age or older, reference to age as a preference or limitation of a buyer is strictly illegal. The Fair Housing logo, which should appear on Web site and print ads, tells users that you abide by and embrace the Fair Housing Laws. Unit Quizzes and the minimum required study time must be met to unlock Final Exam.

Keep financial arrangements quiet. confidential While you must be careful about antitrust issues, some simple steps can keep you and your firm from having problems. Make sure that your firm has established a business model that supports your individual pricing structure, even if the commission rates and fees charged are similar to those of other firms. There are many types of real estate brokerage firms operating from a variety of business models with varying levels of success. Avoid the use of terms that suggest your fees and commissions are standard or prevailing rates. Any reference or insinuation to other firms' rates as a reason for yours could be suspect. When narrowing your geographical areas of concentration, never do so with the consent or agreement of any other firm or agent. Agreements between firms to divide areas are collusive. Never openly discuss your firm's procedures, rates, commission splits, or other financial information in public settings. This is most important when the setting involves members of competing firms. Save this type of discussion for recruiting interviews, when this information is part of the hiring process.

Keep With the Code - Advertising and Ethics The selling of real estate is a satisfying business, both personally and economically. For the basic homebuyer, up to the large commercial buyer, each transaction often represents the largest financial expense of that buyer's lifetime. The sums of money involved are large and the potential for dishonesty, especially when unregulated, is high. advertisingRegulatory agencies, professional organizations, and state and federal laws govern the real estate industry. Each MLS and its governing associations establish rules of conduct and ethical guidelines, often derived from the NAR Code of Ethics and Standards of Practice. State laws and federal statutes such as the Fair Housing Act and the Real Estate Settlement Procedures Act (RESPA) enhance each MLS system's guidelines. Here is Article 1 of NAR's Code of Ethics: "Duties to Clients and Customers Article 1: When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly (Amended 1/01)." This sentiment is further amplified by Standard of Practice 1-3: "REALTORS®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value."

MLS presents both pros and cons for real estate professionals. When the MLS was in its infancy—and not computerized—real estate professionals had a distinct advantage over the consumer and the general public. The real estate professionals were the gatekeepers to the knowledge about their own listings. Today, consumers have access to MLS data through a variety of sources, including REALTOR.com, the official site of National Association of REALTORS® (NAR), and numerous brokerage websites. Some brokerage sites may require that you sign in (after creating a user name and password) to access the MLS information, but other than that, you're free to virtually roam on your own. Consumers can also search public websites such as Zillow.com, Trulia.com, and others to find listing details. Sites like these display real estate offerings from a variety of sources across the country. As this trend continues, many of today's home buyers and sellers have become better informed about the real estate market than ever before. As a real estate professional, you can use your clients' access to the MLS to help make the home buying experience an all-around better, more satisfying experience for all involved parties. When clients conduct their own online searches of MLS sites, they save time, get a realistic idea of what is available, and get an early look at the size and type of house they can expect for their budgets. Some agents may be afraid that consumers' access to online MLSs may push real estate professionals out of the picture, but statistics show that this worry is unfounded. In fact, NAR's Profile of Home Buyers and Sellers 2013 showed that an overwhelming majority of consumers—88 percent—who conducted online property searches went on to use an agent to purchase a house. note NOTE: According to NAR's Profile of Home Buyers and Sellers 2013, 42 percent of buyers searched online for properties as their first step in the home buying process. At some point in the process, a whopping 92 percent of buyers looked online for homes. Do these numbers sound like an accurate representation of your clientele? vft VIRTUAL FIELD TRIP: Want to learn more about today's buyers and sellers? Go to Video: 2013 Profile of Home Buyers and Sellers to watch Jessica Lautz, Director of NAR Member and Consumer Survey Research, and Rob Freedman, REALTOR® Magazine, discuss the highlights of the 2013 Profile of Home Buyers and Sellers.

MLS presents both pros and cons for real estate professionals. When the MLS was in its infancy—and not computerized—real estate professionals had a distinct advantage over the consumer and the general public. The real estate professionals were the gatekeepers to the knowledge about their own listings. Today, consumers have access to MLS data through a variety of sources, including REALTOR.com, the official site of National Association of REALTORS® (NAR), and numerous brokerage websites. Some brokerage sites may require that you sign in (after creating a user name and password) to access the MLS information, but other than that, you're free to virtually roam on your own. Consumers can also search public websites such as Zillow.com, Trulia.com, and others to find listing details. Sites like these display real estate offerings from a variety of sources across the country. As this trend continues, many of today's home buyers and sellers have become better informed about the real estate market than ever before. As a real estate professional, you can use your clients' access to the MLS to help make the home buying experience an all-around better, more satisfying experience for all involved parties. When clients conduct their own online searches of MLS sites, they save time, get a realistic idea of what is available, and get an early look at the size and type of house they can expect for their budgets. Some agents may be afraid that consumers' access to online MLSs may push real estate professionals out of the picture, but statistics show that this worry is unfounded. In fact, NAR's Profile of Home Buyers and Sellers 2013 showed that an overwhelming majority of consumers—88 percent—who conducted online property searches went on to use an agent to purchase a house. note NOTE: According to NAR's Profile of Home Buyers and Sellers 2013, 42 percent of buyers searched online for properties as their first step in the home buying process. At some point in the process, a whopping 92 percent of buyers looked online for homes. Do these numbers sound like an accurate representation of your clientele? vft VIRTUAL FIELD TRIP: Want to learn more about today's buyers and sellers? Go to Video: 2013 Profile of Home Buyers and Sellers to watch Jessica Lautz, Director of NAR Member and Consumer Survey Research, and Rob Freedman, REALTOR® Magazine, discuss the highlights of the 2013 Profile of Home Buyers and Sellers.

By the 1950s, organized MLS data was typically available on individual cards. Imagine you were a real estate licensee back then. You'd organize your individual cards (each card containing information about a single property) in a shoebox or card catalogue. Can you imagine carrying these with you everywhere you went? The card systems gave way to listing sheets, which eventually led to bound books. If an association was large enough, these bound books could easily resemble the phone books that we (seldom) use today: large, cumbersome, and instantly out-of-date. We can only assume real estate professionals back in those days had strong (or perhaps aching!) backs, and Superman-esque arms of steel. Believe it or not, although the popularity and frequency of publishing MLS books has decreased dramatically over the last 15 years, there are still a few MLS systems around the country that continue to produce the hefty books. As computers evolved, associations began entering their data into computer systems. The earliest access to computer-stored data was by a "dumb terminal," often without a screen. PC Magazine defines a dumb terminal as "A display terminal that provides keyboard input and screen output and no data processing capability, [which] flourished in the days of minicomputers and mainframes." As you can probably imagine, those early days of the computer age meant that data transmission was slow and limited, with cryptic, sterile printouts, and no photographs.

MLS" can refer to two things: the MLS system (the software and databases) or the MLS functionality. When most agents think of MLS, they think about the compensation offer, which is the promise among brokers for the listing agent to pay the selling agent part of the commission in the event of a sale. The rules of the MLS are set up to make that offer of compensation possible. If it weren't for computerized MLS systems, every time an agent wanted to show a property to clients, that agent would have to call the listing agent and ask about the compensation—before even showing the property to clients! Can you imagine how time-consuming and frustrating—for both you, as the agent, and the consumer, as the potential buyer—that would be? Thankfully, the MLS system already has that rule (the promise of shared compensation) built into it, making that part of the system simple and productive. As the Internet and its endless streams of data exploded into our everyday lives, so they also exploded into the real estate industry. Expanding technological innovations gives MLS users access to data that a real estate licensee could only dream about in the past. The Internet and smartphones, along with myriad other technological advances in today's always-connected world, have merged so the data is right at your fingertips. You can call up the data you need whenever and wherever you need it, with nothing more than a few keystrokes. Once the private domain of real estate professionals, the MLS systems of today are linked through technology to a vast array of websites and databases; many of these are accessible to the general public, and they are often available at no cost. The face of the MLS world continues to change rapidly, as associations of real estate professionals and their MLS systems enter into alliances with other associations, or form syndication agreements with commercial vendors. These arrangements offer home buyers and sellers access to countless venues for researching property transactions. note NOTE: According to NAR's Profile of Home Buyers and Sellers 2013, 85 percent of sellers reported that their home was listed or advertised on an MLS website.

The real estate professional can enhance the savvy buyer's experience by providing __________. Congratulations! That's the correct answer! A. coupons to moving and home improvements websites B. links to municipal governments and schools C. gas cards to convenience stores D. directions to nearby attractions Feedback: Link to information that buyers want to know, usually pertaining to the community make-up and lifestyle. Congratulations! Please use the next button to continue.

Public versus Agent Only Informationaccess Maintain a level of discretion. Earlier in this course, we discussed avoiding costly errors by not including content in a listing, especially the public portion, which harms the seller's position. You share many items in a full listing entry, beyond the description of the property and its offer price. For this reason, the MLS allows different levels of access to the database. These levels of access are very important when the MLS negotiates syndication agreements and are equally important between the real estate professionals who comprise the associations and their MLS systems. A comprehensive MLS system allows the presentation of information for buyers only, sometimes in a "full" or a "brief" format. You can use this feature to provide email or printed information on homes to clients without compromising the more sensitive information that might be in the listing content. Complete listing content will be available to member professionals, only.

Ethics keep this industry alive. When coupled with the guidelines of Fair Housing and anti-trust laws, the NAR's Code of Ethics provides a clear set of rules that govern how real estate professionals conduct their business. Broken into three main parts, the Code describes the real estate professional's "Duties to Clients and Customers", "Duties to the Public" (potential clients), and "Duties to REALTORS®". Adherence by all real estate professionals to ethical and Fair Housing guidelines makes for an honest and efficient market. Being the source of data for property sales and offerings, MLS systems are the underpinning of this honest market. With the entry of the each new piece of data regarding properties for sale, real estate professionals now influence the market in ways unheard of in the past, all because of the power of the computer-driven MLS systems and their availability online. If there were general misrepresentations of the market across an MLS system, such as listing price distortions, false sales price entries, or unwillingness of larger firms to work with smaller ones, then a true efficient market would not exist. Adherence to the rules by all agents and their firms, with the strict oversight of the MLS systems and their governing associations, keeps the market running smoothly and efficiently. Unit Quizzes and the minimum required study time must be met to unlock Final Exam.

RESPA evens the playing field for consumers. RESPA is a statute, first passed by Congress in 1974, and enforced by the Department of Housing and Urban Development (HUD). RESPA applies to one to four family residential purchases involving a federally related mortgage loan, which includes almost all mortgage types in the market today. The HUD Web site, www.hud.gov, states that "The purposes of RESPA are to: Help consumers become better shoppers for settlement services, and Eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services."RESPA evens the playing field for consumers. RESPA is a statute, first passed by Congress in 1974, and enforced by the Department of Housing and Urban Development (HUD). RESPA applies to one to four family residential purchases involving a federally related mortgage loan, which includes almost all mortgage types in the market today. The HUD Web site, www.hud.gov, states that "The purposes of RESPA are to: Help consumers become better shoppers for settlement services, and Eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services."

Avoid phrases or words that imply a preference for or against a protected class. Here are some examples that will help you avoid the pitfalls of a fair housing violation: Located in a predominantly (Caucasian, African American, etc.) neighborhood. Replace with: Located in XYZ subdivision. The first comment is clearly race oriented and could be construed as either negative or positive, whereas the second comment merely states a fact. Being so close to schools makes this home ideal for families. Replace with: The property is two blocks from Lincoln Elementary, and only three blocks from Washington High. Here, the first statement shows a preference for families, suggesting that buyers without school age children need not apply. In the second description, the proximity of the specific schools is a fact, and any prospective buyer makes their own decision about whether this is desirable or not. The nearby Baptist church lends serenity and grace to the neighborhood. Replace with: The well-established neighborhood features tree lined streets and sidewalks. Once again, the first statement singles out a particular religion and lends it the authority to influence the quality of the neighborhood. The second statement is factually verifiable, even if the term "well-established" is subjective. The home features wheelchair accessible showers in both full baths. On the surface, this statement suggests a discriminatory bias. In this instance, fair housing laws allow descriptions of features in a home or building that are designed for handicap accessibility. You may also make factual comments about nearby facilities, such as jogging paths or fitness centers, without violating the law's provisions for handicap as a protected class.

Sellers are sometimes the source of the discrimination. During the presentation and interview for a listing, you must listen for directions from the seller that could compromise the fair housing guidelines. Educating sellers about fair housing will help set the stage, and may even prevent the seller from saying or doing something, however innocently, that might be a violation of the law. It is illegal to limit potential buyers within the protected classes. In reality, all buyers fall within one or more of the protected classes, and excluding a class of buyer may effectively exclude the ultimate buyer of the property. If an accommodation with the seller is unreachable, the agent should walk away from the listing. Here is an example: During the course of a listing presentation, the sellers, longtime residents of their community and owners of their home, offer light-hearted and jovial comments on how the community has changed over the years. Throughout this discussion, you notice continual references to the increased Hispanic population, including references to how this increase has harmed the community and made it less desirable. The sellers ask you, in a roundabout way, to respect the "quality" of their specific neighborhood, as they proudly tell you that no Hispanic family lives there. Accepting this listing without setting the ground rules demanded by fair housing regulations could put you in a difficult situation when marketing the house, especially if buyers of Hispanic descent make an offer that the sellers reject, for no apparent quantifiable reason.

Even "Agent Only" sections should be free of discriminatory comments. Statements implying discrimination for or against certain classes, outright misrepresentation of the condition of the property, and disclosure of facts concerning the seller that are not material to the selling of the property are as wrong when made in the Agent Only portion of a listing as when publicly disclosed. Other equally inappropriate remarks would include derogatory comments about the seller, outright advertising of you or your brokerage, recruiting pitches to other agents, promises of additional compensation to the cooperating agent without the seller's consent, and any other items that are equally self-serving, false, or harmful to the seller. We touched on fair housing laws earlier and Unit 3 will go into further detail.

The real estate professional is ethically bound to represent the interests of __________. Congratulations! That's the correct answer! A. their client, whether buyer or seller B. the seller in every transaction C. the highest bidder D. the property owners' association

These should be used only by the professional and not disclosed to the general public. Lockbox combination This should be obvious. The seller allows access to their home by virtue of the ethical standards and honesty inherent in your profession. A buyer should never view a property without a real estate professional (or the owner/seller) present. To do so otherwise is to trespass. A better tactic here is to advise other agents to call for the code, thereby reducing the chance of a copy of the agent's listing report getting into the wrong hands. Showing time restrictions Lifestyle issues might prohibit showings at certain times; this can be communicated to other agents. You must use the minimum information necessary, even when advising your fellow professionals.

Unit 2: Service to Buyers and Sellers » Chapter 3: Use the MLS to Service Buyers » Lesson 3: Public versus Agent Only Information Page 2 of 5 Slide: U3C3L3S2 • Print Slide These should be used only by the professional and not disclosed to the general public. Lockbox combination This should be obvious. The seller allows access to their home by virtue of the ethical standards and honesty inherent in your profession. A buyer should never view a property without a real estate professional (or the owner/seller) present. To do so otherwise is to trespass. A better tactic here is to advise other agents to call for the code, thereby reducing the chance of a copy of the agent's listing report getting into the wrong hands. Showing time restrictions Lifestyle issues might prohibit showings at certain times; this can be communicated to other agents. You must use the minimum information necessary, even when advising your fellow professionals. Pets Always advise other agents about the presence of pets in the home privately. The agent representing the buyer can then advise their client of this fact. Even if a dog is in a kennel for showings, or locked in the garage, their presence might be part of the seller's home security plan. Public knowledge of the containment of a barking dog is an open invitation to burglary. A buyer might have an allergy or aversion to certain animals. Home security codes Given the variety of systems on the market and the likelihood of police involvement should an alarm go off, this information is best left unpublished completely. A better tactic is to indicate a minimum response time for showings, without stating the reason. You, or the seller, could then disable the system just prior to the scheduled showing, enabling it after the showing is finished. Ongoing/upcoming repairs We discussed the use of the term repairs earlier in this course. If there are legitimate ongoing repairs of any kind, especially if a portion of the property is a construction site, you must advise other agents. Public disclosure is not necessary, as this will only affect interested buyers.

apter 2: The Theory Behind the MLS Lesson 1: Evolution of the MLS REALTOR logo REALTOR® Associations affiliated with NAR own the majority of MLS systems nationwide. In essence, these associations own the right to gather listing data generated by their members (real estate professionals), then assimilate and present the data to the members and syndication partners. Usually, third-party vendors produce the actual database systems. The vendor then tailors these systems to meet the individual requirements of the particular association. An MLS is typically oriented to particular geographic areas—either local or regional. Some individual brokerage firms or groups of brokerage firms, or combinations of firms and associations, own privately-held MLS systems. In order to feed REALTOR.com, the MLS and its ownership generally must affiliate with NAR. For the handful of associations and MLS systems that do not have affiliations with NAR, a feed to REALTOR.com may be allowed if the affiliation does not have overlapping boundaries with an NAR-affiliated MLS system.

Your license defines your legal geographic range; your MLS is a niche range. A license to practice real estate in a given state allows you to practice your craft within the state's boundaries. In the past, you could not access the MLS data statewide unless you pay the required fees and dues to join the all of the controlling associations existing statewide, along with the concurrent MLS fees. These membership fees and dues generally limited an individual real estate professional's affiliation to one or two associations and MLS systems. Most licensees still only belong to one or two MLS systems; however, the data from other MLSs is broadly distributed online. The barriers between regions are, in some ways, crumbling. This global access is not without its own hiccups. We'll discuss those later in this course.

ongratulations! You successfully passed your quiz. Click below to return to the Table of Contents and continue your course. 1. An MLS is typically oriented to particular __________. A. local or regional geographic area Congratulations, this is the correct answer! B. county C. protected class as defined by HUD D. major city 2. The __________ sets the policy on how members can use the MLS and the information stored therein. A. Department of Housing and Urban Development (HUD) B. Federal National Mortgage Association (FNMA) C. individual governing association or board This is the correct answer D. National Association of REALTORS® (NAR®) This was your answer, which is incorrect. Feedback: Each governing association or board sets its own policies on how its members can use the MLS and the information stored therein. 3. What was incorporated into MLS systems in 2008 to allow for almost instantaneous updates of data? A. The Helsinki Project B. The Real Estate Transaction Standard (RETS) Congratulations, this is the correct answer! C. The Manhattan Project D. The National Association of REALTOR® 4. Flat fee brokers give sellers the potential for __________. A. multiple offers from many potential buyers at the same time B. exposure to many potential buyers at a very small cost Congratulations, this is the correct answer! C. rejection by many potential buyers at the end of each week D. exposure to many potential buyers at the prevailing commission rate 5. In the early days before MLS systems and associations of real estate professionals, how was a property typically sold? A. By door to door salesmen This was your answer, which is incorrect. B. At public auction This is the correct answer C. Online D. For well over market value Feedback: In the early days before MLS systems and associations of real estate professionals, property was typically sold at public auction. 6. The National Association of REALTORS® is upgrading IDX and VOWs with a new set of rules. What are these rules called? A. NAR® Super MLS B. Back to the Future MLS phone book C. The Internet Listing Display (ILD) Congratulations, this is the correct answer! D. Buyers` Bill of Rights 7. The general public has access to a vast array of MLS information because of __________. A. alliances between real estate professional associations and syndication of MLS data to third parties Congratulations, this is the correct answer! B. collusion between real estate professional associations and sharing of MLS data to third parties C. competition between real estate professional associations and denial of MLS data to third parties D. animosity between real estate professional associations and parsing of MLS data to third parties 8. An information sharing system among real estate professionals in a specific geographic location is called ________ A. an MLS Congratulations, this is the correct answer! B. an IDX C. an ILD D. an RETS 9. Many agents were required to keep memberships in multiple MLS systems because they frequently worked in two different geographic locations. To address this, some MLS systems have ______. A. gone bankrupt B. merged Congratulations, this is the correct answer! C. eliminated boundaries D. offered online listings Retake Exam Continue Course

other way to influence the more savvy buyer is with your personal website containing __________. A. the coolest online games B. tons of personal information and photographs to pump up your visibility C. links to other important sites, such as government offices, schools, and utilities Congratulations, this is the correct answer! D. catchy graphics and animation 2. Part of what makes today`s MLS such a powerful tool is __________. A. the ability to negotiate contracts B. the relative ease of accessing property information This is the correct answer C. the ability to show houses to qualified buyers D. the complete ease of performing market analysis This was your answer, which is incorrect. Feedback: The relative ease of accessing property information is part of what makes today`s MLS such a powerful tool. 3. A home purchase is often the __________ your buyers will ever make. A. single largest financial decision Congratulations, this is the correct answer! B. last significant choice C. quickest decision D. easiest decision 4. Listing content that contains the use of brand names conveys __________ to potential buyers. A. snobbishness and disdain B. sophistication and education C. value and overpricing D. quality and newness Congratulations, this is the correct answer! 5. Disclosure of facts concerning the seller that are _________ to the selling of the property are as wrong when made in the agent only portion of a listing as when publicly disclosed. A. material B. not material Congratulations, this is the correct answer! C. integral D. important 6. The majority of homes for sale are__________. A. for sale by owner in the local newspaper B. listed with real estate professionals through an MLS Congratulations, this is the correct answer! C. foreclosures by HUD and FNMA D. never sold due to poor marketing 7. The power behind any MLS lies in the __________ coming together to share information about properties for sale. A. commissions between real estate professionals B. collusion of real estate brokers C. data entry by real estate office staff D. cooperation between real estate professionals Congratulations, this is the correct answer! 8. You must __________ to fit the sophistication of each client. A. adjust your commission fees B. change the level of service you provide C. tailor the level of real estate guidance you provide Congratulations, this is the correct answer! D. curtail the volume of communications 9. Using a __________ will enhance static photos in listing details. A. virtual tour Congratulations, this is the correct answer! B. false background C. professional photographer D. sepia tone or black and white finish

Congratulations! You successfully passed your quiz. Click below to return to the Table of Contents and continue your course. 1. Using a __________ will enhance static photos in listing details. A. virtual tour Congratulations, this is the correct answer! B. false background C. professional photographer D. sepia tone or black and white finish 2. You must __________ to fit the sophistication of each client. A. adjust your commission fees B. change the level of service you provide C. tailor the level of real estate guidance you provide Congratulations, this is the correct answer! D. curtail the volume of communications 3. To ensure an active and competitive market, an MLS system should __________ about property sales. A. hide detailed information B. make information as private a possible C. ensure a free flow of information Congratulations, this is the correct answer! D. ignore certain information 4. If your MLS allows you to attach documents and links to your listing, you should include __________. A. copies of other listings in the area B. a selection of your previously sold properties C. a plat of the property and specific disclosure documents Congratulations, this is the correct answer! D. your biographical information 5. A comprehensive MLS system allows an alternate presentation of information for __________ only, sometimes in a full or "brief" format. A. buyers Congratulations, this is the correct answer! B. appraisers C. tax assessors D. attorneys 6. One of the most important aspects of successfully marketing a property is the __________ in the MLS. A. agent only comments B. seller`s heritage information C. listing content, as presented Congratulations, this is the correct answer! D. buyer agent commission split listed 7. A key step that the savvy buyer will take to be fully prepared when the right property comes along is __________. A. take long vacations while looking for a home B. secure loan pre-approval Congratulations, this is the correct answer! C. change real estate professionals weekly D. attend at least 20 open houses 8. The majority of homes for sale are__________. A. for sale by owner in the local newspaper B. listed with real estate professionals through an MLS Congratulations, this is the correct answer! C. foreclosures by HUD and FNMA D. never sold due to poor marketing 9. Listing content that contains the use of brand names conveys __________ to potential buyers. A. snobbishness and disdain B. sophistication and education C. value and overpricing D. quality and newness Congratulations, this is the correct answer! Retake Exam Continue Course

se the MLS to Service Buyers Lesson 1: Gauge the Savvy of your Customer Today's real estate clients have more information available to them than their counterparts did in years past. The savvy buyer can find comparable properties for sale, interpret demographics for neighborhoods, research lenders and terms, analyze foreclosure data, and determine tax information, and a host of other items, all by using the Internet from the comfort of their own home or office. However, not every potential client takes the time to read or research homes as you would. The sheer magnitude of information available and the complexities of the home buying process make you even more important today than ever to your clients. You can gauge the "savvy" of your client, whether buyer or seller, in various ways. Establish rapport with your client early, asking questions designed to probe the client's needs and desires, while allowing you an opportunity to determine the sophistication of the customer. You are then able to direct the customer to the resources they need. Even with a fully informed customer, you add value to the experience, establishing your place as an important and essential part of the entire process.

hich of the following phrases should be in the publicly viewable fields of an MLS listing? A. Beautiful perennial gardens appeal to seniors and families alike! B. Listed by Ann Spann, licensed real estate agent from Spann Realty, 800-555-8888 This was your answer, which is incorrect. C. Email Ann Spann with any questions: [email protected] D. Open layout provides ample light throughout main floor This is the correct answer Feedback: Broker information belongs in Agent Only fields, and the garden comment shows a preference for protected classes. 2. You should not include a phrase like "good neighborhood" in a description; instead you should ______. A. describe the demographic make-up of the neighborhood B. neighborhood describe the type of person who would best "fit in" in that neighborhood C. ask the sellers to writer their own description of the neighborhood This was your answer, which is incorrect. D. suggest to buyers that inquire about the neighborhood that they check with local authorities and other objective sources of information. This is the correct answer Feedback: You should never include this type of information in a listing, because this could constitute a Fair Housing violation. If buyers ask about this information, suggest they check with local authorities or other objective sources of such information. 3. Certain facts about the property may be legally __________. For example, it is a violation of Federal Law to disclose whether a previous occupant of the property was affected with the HIV virus or has AIDS. A. disclosed B. uncovered C. kept confidential Congratulations, this is the correct answer! D. buried 4. Which of the following questions could you ask to gauge how tech-savvy your customer is? A. Where did you go to school? B. Do you bank online? This is the correct answer C. Do you work evenings? D. What was your previous employer`s name? This was your answer, which is incorrect. Feedback: Understanding how the customer uses the internet regularly can let you know how comfortable they are online. 5. One of these phrases should NOT appear publicly in an MLS listing. Which one? A. New locks installed 2012 B. Lockbox combination: 2744 Congratulations, this is the correct answer! C. Locking front gate with antique hardware D. Locking built-in gun cabinet in den 6. Creating a marketing campaign that uses all images of Caucasian newlyweds to appeal to young white buyers is considered a type of: A. Indirect marketing B. Merchandising C. Discrimination Congratulations, this is the correct answer! D. Publicity 7. Tasha only wants to look at homes currently owned by people of her own ethnicity. Good MLS listings ________ A. have this info in the Agent Only field B. have this info in the publicly viewable fields C. do not include this info anywhere in a listing Congratulations, this is the correct answer! D. subtly indicate this through the photos used 8. You are listing your brother`s house for sale. In the MLS listing, you should include ________. A. your relationship to the seller Congratulations, this is the correct answer! B. your brother`s work information C. pictures of your brother D. nothing that would give away the identity of the seller 9. Sylvia would really like to see her home go to a small family. To represent this seller, you should ______. A. respect her wishes and add this preference to the listing B. discuss Fair Housing boundaries with Sylvia Congratulations, this is the correct answer! C. add this preference to the listing, but in the Agent Only section D. verbally mention this to any agent who wants to set up a showing

ults v2.0 (h) (Save Progress & Exit) Help • Glossary • Reports Table of Contents Completion Introduction Unit 1 Unit 2 Unit 3 Unit 3 Quiz Results Your score: 67% Bernadette, Unfortunately, you did not attain a minimum passing score of 70%. You will need to retake and pass the quiz in order to continue with the course. Please take a few moments to review your quiz results below at which point you can re-take the quiz or return to the course to review the content for this section of the course. No need to be frustrated, you can take the quiz as many times as you need to. 1. Julio has an email address that he checks weekly at the library. Your best approach for Julio will be to ______. A. Provide him exact website addresses for him to lookup listing information B. Provide him direct access to the MLS so he doesn`t have to set up an account anywhere C. Request that he check his email daily D. Provide listing information in person in paper or tell him about properties over the phone Congratulations, this is the correct answer! 2. It is just as illegal to show a _____ for a protected group as it is to discriminate. A. preference Congratulations, this is the correct answer! B. familiarity C. home D. brochure 3. When describing a listing in the MLS, what should you include to avoid Fair Housing violations? A. Positive language that summarizes the neighborhood makeup B. A description of the type of family best suited for the home C. Details about the race and religion of the current owners This was your answer, which is incorrect. D. Verifiable and relevant information about the property This is the correct answer Feedback: The listing description should always be descriptive, relevant, and accurate to the property. 4. The NAR® Code of Ethics guides the conduct of REALTORS® as they interact with __________. A. painters, inspectors, and radon remediates B. mortgage brokers, lawyers, and title agencies C. brokers, lawyers, and lenders D. the public, other REALTORS®, clients, and customers Congratulations, this is the correct answer! 5. The activities between competing firms that antitrust laws would consider legal include __________. A. requiring all MLS members to discuss their commission splitting policies B. requiring all MLS members to follow a similar price schedule C. MLS members voting to ban one firm from adding foreclosure listings to the MLS D. MLS members chipping in to pay for MLS-based advertisements Congratulations, this is the correct answer! 6. What is the purpose of the RESPA statute? A. To help consumers become better bargain hunters B. To help agents boost income streams through referral kickbacks C. To help consumers become better shoppers for settlement services This is the correct answer D. To help consumers access public MLS data This was your answer, which is incorrect. Feedback: RESPA helps consumers become better shoppers for settlement services and eliminates kickbacks and referral fees that unnecessarily increase the costs of certain settlement services 7. The __________ prohibits discrimination based on race, handicap, religion, sex, national origin or familial status. A. FAA B. NRA C. Endangered Species Act D. Fair Housing Act Congratulations, this is the correct answer! 8. Josephina is a self-proclaimed computer geek who emailed a list of her favorite property options prior to your first meeting. Your best approach for Josephina will be to _______. A. Decline her as a client because she doesn`t need an agent B. Provide her with exact website addresses for looking at listings C. Send her a list of links where she can find additional listings D. Sift through data with her, helping to prioritize criteria in her searches Congratulations, this is the correct answer! 9. Being the source of data for property sales and offerings, __________ are the underpinnings of an honest and efficient market. A. NAR® members This was your answer, which is incorrect. B. tax assessors C. appraisers D. MLS systems This is the correct answer Feedback: Being the source of data for property sales and offerings, MLS systems are the underpinnings of an honest and efficient market.