Section 10.1: MLS Rules Noncompliance
Posted by PRO Fri, 24 Mar 2006 15:17:00 GMT
The following actions will be taken for violating the MLS rules.
- Automatic and Progressive fines shall be assessed as provided for in these Rules and Regulations.
- All fines, both automatic and administratively determined, must be paid in full within thirty days of the date assessed. If the fine is not paid within thirty days, and provided that at least ten (10) days’ notice has been given, MLS service will be suspended until all fines and charges are paid in full.
Progressive Fines:
These Rules and Regulations are designed to provide the buying and selling public the best possible service and to facilitate cooperation between Participants. The MLS Participant and Subscriber will be warned by electronic means if there is a violation of the Rules and Regulations. If the violation is not corrected within two business days, the fine will be assessed for each violation as follows.
- 1st time offense within one year: $100.00
- 2nd time offense within one year: $150.00
- 3rd time offense within one year: $250.00
- 4th time offense within one year: $500.00
- 5th & subsequent offenses within one year:
Fifth and subsequent offenses within one year require a disciplinary hearing before the MLS Committee. The Committee will impose the appropriate fines and disciplinary measures. Fines may be up to $5000.
The progressive fine schedule is per agent per offense. Fines will be billed to the Subscriber with the Participant copied and ultimately responsible for compliance.
Should a Participant discover any error prior to a fine being issued, they may correct the error and must immediately contact the MLS Department with the information by email, phone or fax to avoid a warning or a fine.
One courtesy warning notification will be issued per twelve-month period for violations. After the one warning notification, the progressive fine schedule above shall be automatically applied to subsequent applicable violations noted below.
- Failure to provide all requested and substantiating paperwork on all listings within twenty-four hours of when the MLS makes a verbal request of the Participant for such documentation. (All sections)
- Failure to disclose a limited service or exclusive brokerage (exclusive agency) listing type in the MLS database. (4.2)
- Entering verbal, net or open listings in the MLS database. (4.2)
- Filing listings that do not meet the requirements of the MLS for listing contracts. (4.4)
- Failure to file an extension with the MLS within two business days of obtaining the seller’s signature. (4.5)
- Entering an extension in the MLS database without the seller’s authorization and signature. (4.5)
- Failure to file a residential, multifamily or vacant land listing with the MLS within two business days after all necessary signatures have been obtained. (4.1,5.0)
- Failure to enter accurate and complete listing data. (5.0)
- Failure to complete a property profile sheet including all required signatures. (5.1)
- Failure to enter the property listing in the correct map area and grid in the MLS database. (5.2)
- Improperly filing duplicate listings of the same property in the MLS database. (5.3)
- Failure to remove a duplicate listing from the MLS database within 24 hours after being notified. (5.3)
- Failure to report a status change (other than active with contract or pending) within two business days after the written acceptance of an offer.
- Failure to report correctly information such as correct listing price, selling price, closing date, and cooperating selling broker. (5.5, 5.6, 5.20)
- Withdrawing a listing prior to the expiration date of the contract without the signature of the Seller and the Participant (5.6)
- Withdrawal of listing prior to the expiration date and reinstating or relisting the property in order to affect the days on market calculation or to make the listing appear on a hot sheet. (5.6)
- Entering in the MLS database an incorrect price range such as "0" for the low price. (5.10)
- Failure to supply at least one exterior photo or artist’s rendering of elevation for RES, Rental and MUL properties within three business days from the entry date. (5.12)
- Adding or including inappropriate advertisement or information, such as company or agent logos, agent or company name, web or email addresses, agent photos, commissions, bonuses or any contact in the photo section. (5.12)
- Adding or including inappropriate advertisement or information to virtual tours, such as but not limited to company logo, agent or company name, web or e-mail address. (5.13)
- Publication, in any field, of access codes, combination lockbox codes, security gate codes, security system alarm codes or any other codes for equipment or systems designed to ensure the security of the property. (7.6)
- Adding information in the address field other than the legal address or adding address incorrectly such as Unit # in the Street Name field, etc. (7.7)
- Revising list price in order to affect hot sheet reports. (7.7)
- Failure to correct the tax identification number after being notified by the MLS. (7.7)
- Failure to respond to notice of inaccurate information on a listing within forty-eight hours or to provide copies of documents within twenty-four hours (excepting weekends and holidays) when requested by the MLS. (7.7)
- Failure to report a Planned Unit Development (Y/N) correctly in the MLS system. (7.7)
- Adding inappropriate advertisement, instructions, or information in the public remarks. (7.9)
- Failure to correct information entered in the Public Remarks after being notified by the MLS. (7.9)
- Failure to disclose variable rate or dual rate commission arrangements. (8.0)
- Filing listings with no compensation in the MLS database. (8.2)
- Failure to provide all requested and substantiating paperwork on all listings within 24 hours of when the MLS makes a verbal request of the Participant for such documentation. (11.1)
- Failure to have appropriate paperwork such as a properly executed listing agreement, a completed and signed profile sheet, office-exclusive certification, properly executed extensions, and properly executed price changes on file when the MLS staff requests the documentation for review. (11.1)
Other Fines
Violations below are considered to have the most serious effect on overall database accuracy and are automatic in the amounts indicated, with no courtesy notification or grace period for correction:
- Failure to report a status change for an active with contract or a pending sale within two business days after the written acceptance of an offer. The Participant will be assessed a fine of $500.00 for each occurrence. (5.5, 5.17)
- Incorrect/Incomplete: For providing incorrect or incomplete information or for failing to correct the information after a fine has been paid. The Participant will be assessed an additional fine of $500.00 for each occurrence.
- Unauthorized Access: A fine of $5000 will be assessed to any Participant/Subscriber/Assistant who allows access to MLS by an unauthorized person. (7.5)
- Unauthorized Application for UOA (Unlicensed Office Assistant) or UPA (Unlicensed Personal Assistant): A fine of $2500 will be assessed to any MLS Participant or Subscriber who applies for Unlicensed Assistant access for any person not directly employed by the Participant or Subscriber. MLS shall have the right to request paperwork verifying direct employment to include W2 and/or 1099 forms. (3.0)
- Required Signatures: For failure to have all required signatures at the time the property was entered in MLS, the Participant shall be assessed a fine up to $2,500.00 as determined by the Board of Directors upon recommendation of the MLS Task Force for each occurrence. (5.0)
- Operating websites in violation of IDX rules: Violators will receive a verbal warning and be given two business days to remove the data, all links and all web pages from the public site or sites. Failure to remove the data will incur an automatic $1,000 fine for the first violation. If the violation persists beyond two business days, MLS services will be suspended for at least thirty days or until the situation is remedied. For second and succeeding violations, there will be immediate assessment of a $5,000 fine and suspension of MLS services for thirty days. Service will not be restored until all requirements are met. For continuing violations of this rule, the Participant and/or subscriber will be required to attend a hearing to determine whether MLS services should be suspended, terminated, or other appropriate action taken. (16.12)
- Section 10.2 applies to noncompliance with any other rule.