On April 30, SABOR’s Board of Directors ratified NAR’s Clear Cooperation Policy which went into effect on May 1. This policy requires that within one (1) business day of marketing a listing to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants.
When this policy was initially passed at NAR’s annual meeting in November, we knew our current version of connectMLS would need to be adapted to provide more agent-seller options for members to comply. A work group of SABOR members representing a cross-section of backgrounds and practice areas was established and set out to carefully develop a plan that would allow for the cooperation of MLS participants in a way that makes sense for our unique local market. The result of these efforts is the development of specific enhancements to connectMLS including a new Private Listing Database.
We realize that those who keep listings off MLS do so primarily to satisfy client requests for privacy about the home they are selling. The Private Listing Database (PLD) will allow for listings like these to be input into the MLS, thus complying with the policy, while still maintaining their privacy.
The Private Listing Database, housed inside of connectMLS, is a separate database of properties with modified requirements that allow you to enter those listings and comply with MLS rules while limiting distribution. It will have fewer and different fields to be completed in order for the listing to be placed in the MLS as well as other unique requirements.
Through 2020, education will take precedence over penalty. This means if you have a listing that does not conform with the policy’s requirements, including entry into the PLD when appropriate, we will work with you to bring your listing into compliance rather than penalize you.
Watch this recorded webinar from April 30, 2020 and learn more about this policy from Rene Galicia, NAR’s Director of MLS Engagement.
Frequently Asked Questions
What is NAR’s Clear Cooperation Policy (also known as MLS 8.0)?
The policy states: “Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants.”
What is considered “public marketing”?
Public marketing is advertising intended to bring attention to a listing from agents outside of your brokerage including consumers/the general public. Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public-facing websites (including social media websites), brokerage website displays (including IDX and VOW), digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public.
When did the Clear Cooperation Policy take effect?
The Clear Cooperation Policy took effect on May 1, 2020.
My client signed my listing agreement on April 1, 2020. Does the Clear Cooperation Policy apply to this listing?
No, the Clear Cooperation Policy applies to listings taken by a REALTOR® on or after May 1, 2020.
Does the Clear Cooperation Policy change the current requirement to submit a listing to the MLS within 72 hours of receiving my client’s signature on the listing agreement?
No. The Clear Cooperation Policy does not change the current 72 hour submission rule unless you begin public marketing of the listing. For example: You have just successfully completed your listing presentation and your client has signed a listing agreement with you. If you walk out of this appointment and get in your car and drive to your next listing appointment, you have 72 hours to put the listing in the MLS. However, if after you walk out of the listing appointment you place a sign in the yard and then drive to your next listing appointment, you would have started to publicly market the listing and have one (1) business day to submit your listing to the MLS.
What if my client wants to keep their property off the MLS?
Sellers are still allowed to decide that they do not want to advertise their home for sale to cooperating MLS participants through the MLS. A seller can execute the Authorization to Exclude the listing from the MLS and you can provide that form to SABOR. However, if the property is publicly advertised, regardless of any submitted documentation, then it will need to also be submitted to the MLS to avoid a violation of the Clear Cooperation Policy.
What will happen if I am in violation of the policy?
SABOR has decided that its implementation of the Clear Cooperation Policy will prioritize education over penalty. SABOR will focus on education throughout the remainder of 2020 and violations of the policy will result in notifications educating the Participant and Subscriber on the value of MLS cooperation.
What types of listings does the Clear Cooperation Policy apply to?
The Clear Cooperation Policy will only apply to certain property types designated under Residential: Single Residential, Condominium, and Multi-Family 2-8 units. The Clear Cooperation Policy will not apply to commercial, residential rental, lots and acreage, or farm and ranch property types.
What if I just want to market the listing to other agents within my office, does this rule prohibit “Office Exclusives”?
No. “Office exclusive” listings are an option for sellers concerned about privacy and wide exposure of their property being for sale. In an office exclusive listing, promotion of the listing between the brokers and licensees affiliated with the listing brokerage, and one-to-one promotion between these licensees and their clients, is not considered public marketing and such promotion would not trigger the Clear Cooperation Policy requirement to submit the listing to the MLS within one (1) business day. However, if the property is publicly marketed, submission to the MLS is required under the Clear Cooperation Policy.
What are the enhancements to the MLS mentioned in the 8.0 email?
Since November 2019, both SABOR’s MLS Committee and the 8.0 Workgroup have been working on various enhancements to the MLS. View the detailed breakdown of what the Private Listing Database looks like here.
What if my client has signed the listing agreement, but the property needs some repairs and isn’t ready to show and I do not want to publicly market the listing until the repairs are completed?
The same listing agreement rules that have previously applied still apply which require submission of a listing to the MLS within 72 hours of executing the contract unless a listing date addendum is used. If your client has executed a Sellers’ Authorization to Exclude the property from the MLS and as long as the property is not marketed outside of your office, you do not yet need to put the listing into the MLS.
Once you place a sign in the yard, you have publicly marketed and triggered the Clear Cooperation Policy requirements. The listing needs to be put in the MLS within 1 business day. The Private Listing Database is designed to accommodate situations like these and enforcement of the Clear Cooperation Policy’s requirements won’t begin until long after the Private Listing Database is available.