Janelle's Compliance 101 study set

Temporarily off the market

Active listings must be available to show! If a listing becomes unavailable for showing temporarily, the status can be changed to "Temporarily Off Market", with the seller's written permission. Listings may stay in this status until the expiration date, but only with seller's permission.

Pending listings

All listings under contract must be placed in Pending status within 2 business days, even if there are contingencies on the contract. When changing a listing to pending, it can be indicated whether or not Backups are being requested. This must be in writing from the seller, and if backups are requested, listing must still be available to show. There is also a "Contract Status" field, to indicate any contingencies on a contract, along with Kick Out Clauses, Waiting on 3rd Party Approval, etc. If the Expected Closing Date is exceeded, must update in the MLS. This is one of the top violations!

Submission of listings!

As many real estate listing agreements state that listings must go into the MLS ASAP, the Code of Ethics requires REALTORS® to cooperate if in the best interest of their sellers, and the purpose of belonging to an MLS is to cooperate with other brokers, it is critical to enter listings into the MLS in a timely manner MLS Rules state that mandatory listing types must be entered into the MLS within 5 business days of the latter of the date the owners signed the listing agreement or the beginning date of the listing agreement or within one-business day of any public marketing of the property. Mandatory listing types include the sale or exchange of •Single family homes •Condominiums, Co-ops and townhouses •Vacant residential lots or parcels •Mobile homes with land •Duplexes, triplexes or quadruplexes

Where do listings go?

Brokers choose where listings should appear!

How to report a violation

Click on the bottom of the listing!

Accessing a team members account

If another agents shares their account with you it can be accessed from the top right corner of the screen. To switch to another user, from the Home page of Matrix, simply click on your name. You will then be able to see the individuals you have the ability to switch to. Select the person you want to switch to, and you will be working in that person's Matrix account. To switch back to yourself, click on that person's name and select yourself.

What determines if it is a manufactured or a mobile home?

In Florida, a manufactured or mobile home on leased land is considered a motor vehicle and that transaction is not covered under a real estate license. The only way to list a manufactured/mobile home in the MLS is if the seller owns the land or the home is in a resident-owned mobile home park.

What to do with an executed listing agreement?

once your have an executed listing agreement, during the 5-business day time frame, you will either enter the listing into the MLS, file a temporary exclusion, or file an office exclusive exclusion. As soon as any marketing begins you have one day to enter the property into the MLS.

Top 6 violations!

photo virtual staging and virtual tour violations listing manipulation failure to report a sold listing pending listing with a past expected closing date exempt listings contact information in the public remarks

Driving directions

Turn by Turn directions are still required. Directions must be from a semi-major intersection to the subject property. Directions cannot include references to digital maps or using a GPS and cannot contain contact information! Good Example of when to say something about GPS> DO NOT USE GPS, Must use our directions. Northeast on Commercial Way. Turn right onto Cortez Blvd. Turn left onto Fort Dade Ave. Take 3rd left onto Sam C Rd. Take 1st right onto Hysell Rd. Hysell Rd becomes Foxfire. Right on Bonzai and property on right.

Virtual staging disclosures

Virtual staging must also be clearly disclosed. Next the public remarks, there is a check box to indicate if Virtual Staging was used. This will auto-populate the public remarks with a required disclosure (we discussed the auto-population in the previous section of this course). Additionally, for each photo that used virtual staging, you must add a caption that indicates "Virtually Staged".

Status change rules

When a listing changes status (including price or change in expiration date), the status change must be made in the MLS within 2 business days A Status Change Form is available with the Listing Forms if your office does not have one.

Days on the market

Active Days on Market (ADOM) - tied to a specific MLS ID Cumulative Days on Market (CDOM) - tied to a property ID When a new listing is created, ADOM is 0. If an expired or withdrawn property is relisted within 60 days, CDOM keeps running. Takes 60 days off market for CDOM to reset to 0.

What do I fill out before I enter a listing? Are there forms for each listing type?

Data Entry forms are required for all listing types entered into the MLS! The Data Entry Form ensures collection of all characteristics of the listing that can be marketed in the MLS, and ensures that the seller grants permission for how the listing will be marketed. All data fields available for the property are on the form, and the last page has a place for the sellers and broker (or listing agent, if permitted by broker) to sign it. We want to stress that while we don't always ask for this form to be submitted, that it is required to be filled out so that if admin/data integrity requests the form the list agent is able to provide it. Failure to provide the form can result in a penalty.

How violations are detected!

Enforcing Rules is all about maintaining the integrity of the system, not about policing agents! Stellar MLS uses software called Listing Data Checker to scan the MLS for common violations. Notices are sent with the details of the violation via email. Agents also report violations in listings to the MLS.

Variable commissions / dual commissions!

For example, a broker charges X% commission if they bring their own buyer, but a higher Y% if another brokerage brings a buyer and needs to be compensated. (Seller receives discount if broker finds own buyer). This must be disclosed, because if there are multiple offers, one from the listing broker and one from another broker, the listing broker's offer will be more competitive because a lower commission would be owed. The commission amounts do not have to be disclosed in the MLS, just that it is a variable commission listing. Per Code of Ethics, if asked, listing broker would need to share the amount of the differential, but not specific commission amounts being charged.

How to report a violation

For minor violations, a courtesy warning is issued first. For more serious violations, an automatic fine may be assessed. Article 11.4 If a violation is not corrected, the fine amount can keep going up. If a fine is issued in error, there is a waiver and appeal process, described when the fine is issued. Article 12 The most important thing to do if you get a notice to correct something in your listing is to correct it! We all want accurate data and information.

Creating a new listing ID

If a listing is expired or withdrawn, and the same office picks it back up within 30 days, rather than creating a new listing to reset ADOM to 0, the original listing must be reactivated. After 30 days, a new listing can be created if there is a new listing agreement. This rule is in place to keep listings from being deactivated and recreated to misleadingly appear as new. If a different office picks up an expired or withdrawn listing, a new listing can be created, but CDOM will keep running until it has been off the market for

What is new construction?

Incomplete New Construction Documentation is one of the top violations. First, we must understand when New Construction can be entered as residential property. All three of the following must exist:Specific Lot Specific Structure Specific Price

Say cheese! Listing photos

Incorrect photos are one of the top violations. A listing must have at least one photo prior to being active. The first photo is usually the front exterior (showing majority of building), but can also be a water view FROM the subject property (not a nearby water view) or an aerial photo (cannot be from a copyrighted source like Google Maps).

First photo must be....

Incorrect photos are one of the top violations. A listing must have at least one photo prior to being active. The first photo is usually the front exterior (showing majority of building), but can also be a water view FROM the subject property (not a nearby water view) or an aerial photo (cannot be from a copyrighted source like Google Maps). If an aerial shot or water view is the first photo, the second must be the front exterior. (Exception for Vacant Land - which is addressed in the Article on Listing Photos) There can be no broker signage or information identifying the list agent in photos (remember - these go out on customer reports so we must protect the cooperative nature of the MLS.) A listing broker cannot use another broker's photos without written permission. For example, if one broker's listing expired and is picked up by another brokerage, written permission would need to be granted to reuse the original broker's photos.

How do I find the different listing classifications?

It is important that you enter your listing under the proper classification. This is one of the top 10 violations! Residential property is defined by the industry as 4 units or less or 10 acres or less. However, the MLS has a separate category for Income Property (duplexes, triplexes, etc.) and a separate category for Vacant Land. Even though a duplex technically is residential property, it goes under the Income classification. A residential lot is also technically residential, but goes under Vacant Land. Be sure to enter listings under the proper classification

Who makes the rules?

Many rules come from NAR's Handbook on Multiple Listing Policy, and all NAR-backed MLSs must abide by these. Other rules are enacted by MFR's Board of Directors, often as a result of an industry trend or recommendations from the MLS Advisory Council.

Why are there so many rules?

Most rules are in place for one of two reasons: 1)To ensure that we are sharing good data with one another. 2)To ensure that we are maintaining the cooperative nature of the MLS, and that we can safely share listing with our customers without worrying about them working directly with the listing broker and bypassing us. Rules are easily searchable and readily available any time. We will talk about how to access them in just a moment.

Virtual staging

On the exterior of a property, you may add a table and chairs or potted plants on a patio or lanai, but you may not enhance the exterior features of the house itself in any way. You may also not virtually change landscaping or scenic views of the property.

MLS Subcriptions

One user Highly sensitive data Unlicensed assistants and Appraisers must have their own accounts, purchased through your local Realtor® Board Password sharing is strictly prohibited and fines can range from $500-$15000

Virtual tours

Only unbranded tours with no agent information are allowed in MLS. This protects cooperative nature of MLS, as virtual tours are seen on customer reports. Only virtual tours may be placed in Virtual Tour links. No YouTube videos, web sites, etc. Remember: Property Panorama offers MFRMLS subscribers a free virtual tour for each listing with up to 5 photos. Real Biz Media and Property Panorama offer full virtual tour subscriptions at a highly discounted rate. Both of these tools can be found on the mfrlogin.com dashboard. Narration is allowed in virtual tours as long as there is no branding or identifying information within the narration.

Why an MLS?

Overview of the MLS and Framework for Rules and Regulations Where to Find Rules and Regulations Listings Required Disclosures Compensation and Cooperation Photos and Virtual Tours Listing Remarks Status Changes MLS Data Top Violations

Agent owned property

Per both MLS Rules and the Code of Ethics, agents must disclose if they are buying or selling property for themselves or a family member. Under the Realtor Information field there are places to disclose this, but it should also be disclosed in the Realtor Remarks. When a MLS participant/subscriber is buying property for him or herself or a family member, disclose in writing to list agent no later than time of submitting offer

Compliance 101

Power Point

Do I need to disclose Special Sale Provisions? And what are they?

Properties that may be classified as Auction, REO/Bank Owned, or Short Sales, must be disclosed in the Special Sale Provision field. There are also other specific disclosures to be made in the Realtor and Public Remarks for these types of properties. We have relatively few of these listings in the MLS at this time; however, if you do list one, please refer to the appropriate Article to make sure you are in compliance with the rules.

Public remarks

Public Remarks are a great place to sell exciting facts about the listing, but as these are seen on customer reports and public sites, can also get an agent into trouble. There can be no identifying information, contact information, web sites, vendor information, lockbox or showing information, codes, open house information, owner name, inappropriate comments, etc. in Public Remarks, as these do show up on customer reports.

Public remarks section

Public Remarks are a great place to sell exciting facts about the listing, but as these are seen on customer reports and public sites, can also get an agent into trouble. There can be no identifying information, contact information, web sites, vendor information, lockbox or showing information, codes, open house information, owner name, inappropriate comments, etc. in Public Remarks, as these do show up on customer reports.

Is it public marketing?

Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, all social media platforms public or private, brokerage website displays (including IDX and VOW), digital communications marketing (email or text blasts, or automated voice calls/messaging), multi-brokerage listing sharing networks, and applications available to the general public.

How can I search the rules and regs?

Rules and Regulations are easily searchable! On the home page of the Rules, there is a list of each Article, and a specific article can be pulled. There is also a Live Search box, where a keyword can be typed in and the rule pertaining to that keyword will be pulled. Rules and Regs can also be downloaded; however, if you rely on this, you may end up with an outdated version.

Using MLS data

Sending an email to a customer through Matrix is not advertising...that is one-on-one communication. This section refers to advertising listings. An IDX feed is the only way to advertise another broker's active listing online without written permission, as an agent/broker opts into IDX feeds when entering a listing

print advertising

Sending an email to a customer through Matrix is not advertising...that is one-on-one communication. This section refers to advertising listings. An IDX feed is the only way to advertise another broker's active listing online without written permission, as an agent/broker opts into IDX feeds when entering a listing. Print advertisements cannot contain information on another brokers' active listing without permission - first because the listing belongs to that broker, and second because the seller has to authorize advertising. Print advertisements may contain data on sold listings or aggregate data, but the disclosure from article 6.5 of the Rules and Regulations should be used. These advertisements should not be misleading and make it look like an agent sold a listing for which they did not represent the buyer or seller.

Compensation rules?

Serving as a means of cooperation and making "blanket, unilateral offers of compensation" is a key purpose of the MLS. However, in order to be compliant with Federal Anti-Trust Laws, the MLS cannot do ANYTHING to regulate commissions or commission splits. These are at the sole discretion of the listing broker and there is no "standard commission". The MLS does not ask how much is being charged to the seller. However, the MLS does ask how much a cooperating broker will be compensated should they bring a buyer. Remember - commissions are paid to and between brokers, who then in turn compensate sales associates. For residential listings, commission can be offered as a percentage, dollar amount, or percentage minus dollar amount. However, commissions offered in MLS must match the listing agreement. For example, if the listing agreement says the cooperating broker will receive X%, the MLS would not be able to say X%-$199. These must be blanket, unilateral offers. No additional terms can be placed in the Realtor Remarks restricted when a commission will be paid (i.e. This commission will only be paid for full price offers, etc.). Any bonus that may be offered would be entered in the appropriate fields of the listing at the time the bonus is in effect. Note: Non Rep is more commonly referred to as "No Brokerage Relationship". There is an No Brokerage Relationship disclosure that would be signed for this type of agency. As a default, brokers are Transaction Brokers unless otherwise stated in writing.

Where to find the owners exclusion form?

So where can the Owner's Exclusion forms be found? 1)External Links in Matrix 2)Document Library at StellarMLS.com 3)Form Simplicity and Transaction Desk

Where can the rules and regs be found?

The Rules and Regulations can be found in three places: 1)In Matrix, under the External Links widget on the home page. 2)Under the Resources tab on the StellarMLS.com company web site. 3)Under the Rules & Regs box at the bottom of the page in Stellar University.

Withdrawn listings

The Withdrawn status that you choose will depend on your broker's policies on withdrawn listings and/or the circumstances of the withdrawal. A listing that is withdrawn unconditionally would potentially be able to be listed right away by another broker.

Sold listings

The appraiser or agent will rely on the ______________ most. This establishes the market value based on recent sales.

What kind of listing types will the MLS accept?

The only types of listings not accepted in the MLS are Net and Open Listings. A net listing is where the seller expects to "net" a certain amount, say $100,000. Anything the property sells for in excess of that is what the broker keeps. These do not fit in with the cooperative nature of the MLS and not allowed to be entered. An open listing is "implied" and not exclusive to a particular brokerage. For example, a seller makes an offer to several brokerages that whichever one brings the buyer will get compensated. There is no written, exclusive agreement though. This listing could not go in the MLS. Remember: Listing agreements are with the broker! Exclusive Right to Sell: Listing broker has the exclusive right to list the property,and gets paid if the property sells during the listing agreement time period, regardless of who finds the buyer. (Broker gets paid even if seller finds their own buyer). Exclusive Agency: Broker has exclusive right to list property, but seller maintains right to sell property on own and not owe a commission. Exclusive Right with Exception: Broker has an Exclusive Right to List Property, but there is a "named prospect" in the listing agreement. If that person buys, no commission is owed. Example: An agent sees a For Sale By Owner sign and talks the seller into listing with her. Seller agrees to list property, but has already showed the property to Bob Buyer. Wording is placed into listing agreement saying that if Bob Buyer purchases the property, no commission is owed. This must be disclosed, because what if Bob does purchase the property, but went though another brokerage? Now no commission is owed, but Bob's brokerage is expecting compensation. *The scenario above is one example, but the named prospect can be anyone (family member, close friend, etc.).

Showingtime

The reason for this is that the only subscribers with access to the Showing Time remarks are those with an active real estate license. Agents should check with their brokers about showing procedures for listings in that office (some offices use a call center, some ShowingTime, etc.). Also, showing instructions should be checked and followed for all listings. For example, if instructions say to call list agent, do not just pull into driveway to show because it is vacant.

What other disclosures are required?

There are a few other conditions which would require additional disclosure. These are not very common, so we just want to mention them.HUD Listings - these are foreclosures on FHA loans and now owned by HUD. The listing and cooperating broker would need to be registered with HUD, and verbiage would need to go in the Realtor Remarks specifying it is a HUD listing and cooperating broker would need to be registered, along with instructions for submitting a bid on the HUD property. Fractional Listings - these are not time shares! These are fractional ownerships where only one fraction of the property is conveying. A deed would have to be recorded for this to go into the MLS. (Note that timeshares are often simply "right to use contracts".) The public remarks would have to say "Fractional Listing" along with the fraction being conveyed. Joint Listings - Exclusive Listings with more than one broker. These are very rare. Only one broker lists in the MLS with written permission from the other. Very specific rules apply to these listings. Refer to Article 5.3 if you thinking about doing this. Pre-foreclosures - These are properties that are in default. The lender has filed a Lis Pendens, but the seller still owns the property and can sell it. Before marketing a property as a Pre-Foreclosure in the Realtor Info Confidential Field or Remarks, we request that the listing agent obtain written permission from the owner of record.

Listing manipulation

This can be a costly violation! If a listing is expired or withdrawn, and the same office picks it back up within 30 days, rather than creating a new listing to reset ADOM to 0, the original listing must be reactivated. After 30 days, a new listing can be created if there is a new listing agreement. This rule is in place to keep listings from being deactivated and recreated to misleadingly appear as new. If a different office picks up an expired or withdrawn listing, a new listing can be created, but CDOM will keep running until it has been off the market for 60 days.

Setting up a team

To set up a team in Matrix, go to SETTINGS option under your name at the top right. Select Team Settings. Click "Add" to add a team member. You will need their MLS ID. The individual you are adding to your account must also add you to their account if you want mutual access. To access a team member's account, click on your name in the top right corner of Matrix. Select the team member whose account you want to access.

You've got an exclusion form now what do you do?

To submit and Exclusion form, click the "Owner(s) Exclusion" button and follow the instructions for submitting and uploading the form. Each agent can see their own Exclusion forms. Brokers can see all the Exclusion Forms submitted for their office.

What is housing for older persons?

When entering age restrictions for a listing, must include one of the following: This is very important! Putting age restrictions in the MLS for a non-55+ community is a violation of Federal Law! The MLS requires verification of age restrictions in one of two ways: 1)Verify that the community has a valid (future) renewal date on the 55+ Directory published by the Florida Commission on Human Relations (FCHR). This directory is linked to the help bubble in the listing entry, and also in the External Links in Matrix. Please note though that legally, a community does not have to be registered with the FCHR, so if it is not, the MLS requires an affidavit. 2)Get a Housing for Older Persons Affidavit signed by a Board Member or Manager. This must also be notarized. The affidavit can be found under the Listing Forms (linked to the External Links in Matrix). If using the Affidavit, it must be uploaded as an attachment to your listing.

Exempt Listings: What are they?

When the seller does not want their property listed in the MLS. The only way to waive this requirement is for the owners of the property to sign an "Owner(s) Authorization to Temporarily Exclude Listing from MLS" or the form for "Office Exclusive - No Entry into the MLS" and submit this form to the MLS by the 5-business day deadline. Perhaps the owners need some additional time to spruce up the property or do repairs; or maybe your professional photos won't be ready until after the 5-business days. In these scenarios, you would use the temporary exclusion form indicating the date you and the owners agree to activate the listing in the MLS.

Virtual staging

Yes: add virtual furnishings No: enhancing permanent fixtures; paint colors; stage an under construction home