Multiple Listing Service Rules and Regulations

Hillsdale County Board of REALTORS® Multiple Listing Service Bylaws and Rules and Regulations

Adopted and Approved
February 7, 2007
Amended February 15, 2009

Article I- Name

The name of this organization shall be the Multiple Listing Service of the Hillsdale County Board of REALTORS®®, Inc., hereinafter referred to as the Service.

Article II-Purpose

A Multiple Listing Service is a means by which authorized Participants make blanket unilateral offers of compensation to other Participants (acting as subagents, buyer agents, or in other agency or non-agency capacities defined by law); by which cooperation among Participants is enhanced; by which information is accumulated and disseminated to enable authorized Participants to prepare appraisals, analyses, and other valuations of real property for bona fide clients and customers; by which Participants engaging in real estate appraisal contribute to common databases; and is a facility for the orderly correlation and dissemination of listing information so Participants may better serve their clients and the public. Entitlement to compensation is determined by the cooperating broker’s performance as a procuring cause of the sale.

Article III-Service Area

The area within which the Service shall function shall at all times be coextensive with or within the territorial jurisdiction of the Hillsdale County Board of REALTORS®®.

Article IV-Participation

Section 1. Participation Defined.
Participation in the Service is available to the firm, partnership, or corporation of any REALTOR® principal of this or any other Board of REALTORS® without further qualification except payment of required dues and fees and agreement to abide by these Bylaws and the Rules and Regulations of the Service (or as otherwise stipulated in these Bylaws). However, under no circumstances is any individual or firm, regardless of membership status, entitled to Multiple Listing Service “Membership” or “Participation” unless they hold a current, valid real estate broker’s license and are capable of accepting and offering cooperation and compensation to and from other Participants or are licensed or certified by an appropriate state regulatory agency to engage in the appraisal or financing of real property. Use of information developed by or published by a Board Multiple Listing Service is strictly limited to the activities authorized under a Participant’s licensure(s) or certification and unauthorized uses are prohibited. Further, none of the foregoing is intended to convey “participation” or “membership” or any right of access to information developed by or published by a Board Multiple Listing Service where access to such information is prohibited by law. The REALTOR® principal of any firm, partnership, or corporation or the branch office manager designated by said firm, partnership, or corporation shall be termed the “Participant” in the Service and shall have all rights, benefits, and privileges of the Service, and shall accept all obligations to the Service for the Participant’s firm, partnership, or corporation, and for compliance with the Bylaws and Rules and Regulations of the Service by all persons affiliated with the Participant who utilize the service.
Boards are not required to establish prerequisites for MLS participation beyond holding REALTOR® (principal) membership in a Board. However, if the Board wishes to establish these requirements for MLS participation or for access to MLS-generated information, the requirement of attendance at an orientation program is the most rigorous requirement that may be established.

Section 2. Application for Participation
Application for participation shall be made in such manner and form as may be prescribed by the Board of Directors of the Service and made available to any REALTOR® (principal) member of this or any other Board requesting it. The application form shall contain a signed statement agreeing to abide by these Bylaws and any other applicable Rules and Regulations of the Service as from time to time amended or adopted.

Section 3. Discontinuance of Service
Participants of the Service may discontinue the service by giving the Service 14 days written notice and may reapply to the Service after three months by making formal application in the manner prescribed for new applicants for participation provided all past dues and fees are fully paid.

Section 4. Subscribers
Subscribers (or users) of the MLS include non-principal brokers, sales associates, and licensed appraisers affiliated with Participants. The following persons may have access to the service under the supervision of the Participant, but are not required to be Subscribers: affiliated unlicensed clerical staff and personal assistants.

Article V-Service Charges

The charges made for participation in the Service shall be as determined, and as amended from time to time by the Hillsdale County Board of REALTORS® Board of Directors.

Article VI-Governing Body

Section 1. Government of the Service
The government of the Service shall be vested in the Board of Directors of the Hillsdale County Board of REALTORS® as defined in the Hillsdale County Board of REALTORS® Board Bylaws.

Article VII-Application

The following rules and regulations of the Multiple Listing Service of the Hillsdale County Board of REALTORS®, hereinafter referred to as “MLS”, are applicable to member firm Participants and Subscribers.

Article VIII-Membership Responsibility

Section 1.
All member firm Participants and their licensees shall abide by the Bylaws of the Hillsdale County Board of REALTORS®. They shall also abide by the Bylaws and Rules and Regulations of the MLS and the Multiple Listing Policy of the National Association of REALTORS®. Failure on the part of any member firm Participant or its licensees to receive a copy of any of the above mentioned Bylaws, Rules and Regulations and MLS Policy shall not relieve anyone of the responsibility for any violation thereof.

(a) The member firm Participant shall be deemed responsible for any of its licensees’, violations as recited in Section (1) above.

(b) Licensees whose names appear on the Department of Licensing Report will be billed unless a waiver has been provided.

Article IX-Distribution of Governing Documents

Section 1. The Bylaws and Rules and Regulations of the MLS and the Multiple Listing Policy and Code of Ethics of the National Association of REALTORS® shall be published and made available to member firm Participants in such a manner as established by the Hillsdale County Board of REALTORS® Board of Directors.

Article X-Confidentiality and Accuracy of MLS Information

Section 1. Confidentiality of MLS Information Any information provided by the MLS to the Participants shall be considered official information of the service. Such information shall be considered confidential and exclusively for the use of the Participants and those Participants who are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property and licensed or certified appraisers affiliated with such Participants.

(a) Access to MLS information not available by public access (other than described in© below), is available only by subscription and is accessed by Participants and Subscribers via assigned passwords. Passwords are confidential and not to be shared in any form with non-subscribers. Violation of this article and potential penalties are addressed in the Sanctions Policy of this document.

(b) MLS Not Responsible for Accuracy of Information The information published and disseminated by the Service is communicated verbatim, without change by the Service, as filed with the Service by the Participant. The Service does not verify such information provided and disclaims any responsibility for its accuracy. Each Participant agrees to hold the Service harmless against any liability arising from any inaccuracy or inadequacy of the information such Participant provides.

(c) Access to Comparable and Statistical Information Board Members who are actively engaged in real estate brokerage, management, mortgage financing, appraising, land development, or building, but who do not participate in the MLS, are nonetheless entitled to receive, by purchase or lease, all information other than current listing information that is generated wholly or in part by the MLS including “comparable” information, “sold” information, and statistical reports. This information is provided for the exclusive use of Board Members and individuals affiliated with Board Members who are also engaged in the real estate business and may not be transmitted, retransmitted or provided in any manner to any unauthorized individual, office or firm except as otherwise provided in these Rules and Regulations.

(d) By the act of submission of any property listing data to the Board MLS the Participant represents that he/she has been authorized to grant and also thereby does grant the authority for the Board to include the property listing data in its copyrighted MLS compilation and also in any statistical report on “Comparables.”

(e) All right, title and interest in every multiple listing compilation created and copyrighted by the Hillsdale County Board of REALTORS®, and in the copyrights therein, shall at all times remain vested in the Hillsdale County Board of REALTORS ®.

(f) Each Participant or Subscriber shall be entitled to access MLS compilations. The Participant or Subscriber shall pay such access fees as are set by the Board. Participants shall acquire by such lease only the right to use the MLS Compilations in accordance with these rules.

The term MLS Compilation, as used in Section D herein, shall be construed to include any format in which property listing data is collected and disseminated to the Participants, including, but not limited to, bound book, loose-leaf binder, computer data base, card file, or any other format whatever.

This section should not be construed to require the Participant to lease a copy of the MLS compilation for any licensee affiliated with the Participant who is engaged exclusively in a specialty of the real estate business other than listing and selling real property, and who does not, at any time, have access to nor use of the MLS information or MLS facility of the board.

(g) Distribution Participants shall at all times maintain control over and responsibility for each copy of any MLS compilation purchased from or leased to them by the Association, and shall not distribute any such copies to persons other than subscribers who are affiliated with such Participant as licensees, those individuals who are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property, and any other subscribers as authorized pursuant to the governing documents of the MLS. Use of information developed by or published by an Association Listing Service is strictly limited to the activities authorized under a Participant’s licensure(s) or certification and unauthorized uses are prohibited. Further, none of the foregoing is intended to convey “Participation”, or “Membership” or any right of access to information developed by or published by an Association MLS where access to such information is prohibited by law.

(h) Display Participants and those persons affiliated as licensees with such Participants, shall be permitted to display the MLS compilations to prospective purchasers only in conjunction with their ordinary business activities of attempting to locate ready, willing, and able buyers for the properties described in said MLS compilation.

(i) Reproduction Participants or their affiliated licensees shall not reproduce any MLS compilation or any portion thereof except in the following limited circumstances: Participants or their affiliated licensees may reproduce from the MLS compilation, and distribute to prospective purchasers, a reasonable number of single copies of property listing data contained in the MLS compilation which relate to any properties in which prospective purchasers are or may, in the judgment of the Participant or their affiliated licensees, be interested. Reproduction made in accordance with this rule shall be prepared in such a fashion that the property listing data of properties other than that in which the prospective purchaser has expressed interest, or in which the Participant or the affiliated licensees are seeking to promote interest, does not appear on such reproduction. Nothing contained herein shall be construed to preclude any Participant from utilizing, displaying, distributing, or reproducing property listing sheets or other compilations of data pertaining exclusively to properties currently listed for sale with the Participant. Any MLS information, whether provided in written or printed form, provided electronically, or provided in any other form or format, is provided for the exclusive use of the Participant and those licensees affiliated with the Participant who are authorized to have access to such information. Such information may not be transmitted, retransmitted, or provided in any manner to any unauthorized individual, office or firm. None of the foregoing shall be construed to prevent any individual legitimately in possession of current listing information, “sold” information, “comparable,” or statistical information from utilizing such information to support an estimate of value on a particular property for a particular client. However, only such information that a Board or Board owned MLS has deemed to be confidential and necessary to support the estimate of value may be reproduced and attached to the report as supporting documentation. Any other use of such information is unauthorized and prohibited by these Rules and Regulations.

It is intended that the Participant be permitted to provide prospective purchasers with listing data relating to properties which the prospective purchaser has a bona fide interest in purchasing or in which the Participant is seeking to promote interest. The term “reasonable,” as used herein, should therefore be construed to permit only limited reproduction of property listing data intended to facilitate the prospective purchaser’s decision-making process in the consideration of a purchase. Factors which shall be considered in deciding whether the reproductions made are consistent with this intent, and thus “reasonable” in number, shall include, but are not limited to, the total number of listings in the MLS compilation, how closely the types of properties contained in such listings accord with the prospective purchaser’s expressed desires and ability to purchase, whether the reproductions were made on a selective basis, and whether the type of properties contained in the property listing data is consistent with a normal itinerary of properties which would be shown to the prospective purchaser.

Article XI-LISTING PROCEDURES

Section 1.

(a)All listings of real or personal property which are listed subject to a real estate broker’s license, and which are taken by Participants or subscribers on an exclusive right to sell listing form, shall be entered into the system within 72 hours after the starting date of the contract and all necessary signatures of sellers have been obtained, with the exception of weekends, holidays and postal holidays.

Note 1: The MLS shall not require a Participant to submit listings on a form other than the form the Participant individually chooses to use provided the listing is of a type accepted by the Service, although a “property data form” may be required as approved by the MLS. However, the MLS, through its legal counsel:
(1) May reserve the right to refuse to accept a listing form which fails to adequately protect the interests of the public and the Participants.
(2) Assure that no listing form filed with the MLS establishes, directly or indirectly, any contractual relationship between the MLS and the client (buyer or seller).
(3)The MLS shall accept exclusive right to sell listing contracts and exclusive agency listing contracts, and may accept other forms of agreement which make it possible for the listing broker to offer cooperation and compensation to the other Participants of the MLS acting as subagents, buyer agents or both.
(4)The listing agreement must include the seller’s authorization to submit the agreement to the MLS. (5)The different types of listing agreements include:
(aa) Exclusive Right to Sell—The exclusive right to sell listing is the conventional form of listing submitted to the MLS in that the seller authorizes the listing broker to cooperate with and to compensate other brokers.
(bb) Exclusive Agency—The exclusive agency listing also authorizes the listing broker, as exclusive agent, to offer cooperation and compensation on blanket unilateral bases, but also reserves to the seller the general right to sell the property on an unlimited or restrictive basis.
(cc) Open—Open listings are not accepted except where required by law because the inherent nature of an open listing is such that it usually does not include the authority to cooperate and compensate other brokers and inherently provides a disincentive for cooperation.
(dd) Net—The service may not accept net listings because they are deemed unethical and, in most states, illegal.

Note 2: Exclusive agency listings and exclusive right to sell listings with named prospects exempted should be clearly distinguished by a simple designation such as a code or symbol from exclusive right to sell listings with no named prospects exempted since they can present special risks of procuring cause controversies and administrative problems not posed by exclusive right to sell listings with no named prospects exempted. Care should be exercised to ensure that different codes or symbols are used to denote exclusive agency and exclusive right to sell listings with prospect reservations.

NOTE 3: The MLS does not regulate the type of listings its members may take. This does not mean that the MLS must accept every type of listing. The MLS shall decline to accept open listings (except where acceptance is required by law) and net listings and it may limit its service to listings of certain kinds of property. But if it chooses to limit the kind of listings it will accept, it shall leave its members free to accept such listings to be handled outside the MLS.

NOTE 4: The MLS may, as a matter of local option, accept exclusively listed property that is subject to auction. If such listings do not show a listed price, they may be included in a separate section of the MLS compilation of current listings.

(b) The full gross price must be stated in the contract.

(c) Under “additional remarks,” brokers may note a request from sellers that a listing not be placed in the MLS. A copy of the listing contract must be provided to Hillsdale County Board of REALTORS ® office upon request (within 24 hours) should a question arise as to why the listing is not in the service.

(d) Online offices may input their own listings and make any necessary changes and updates to the listing.

(e) The Board office will accept a change form, email or phone call to report changes to listings. Changes must be reported within 72 hours.

(f) Listings of business opportunities are not required to be entered in the MLS system. If entered in the MLS system, it may be with or without complete information.

Article XII - Additional Listing Criteria

Section 1. Listings Subject to Rules and Regulations of the Service
Any listing agreement taken by a member firm Participant, to be processed by the MLS is subject to the MLS Rules and Regulations immediately upon the signature(s) of the seller(s) being obtained.

Section 2. Detail on Listings Entered into the Service A listing agreement or property data form (including the online form used by the service) shall be complete in every detail ascertainable. All fields required by the MLS, as determined by the Hillsdale County Board of REALTORS ® Technology Committee, shall be filled in with the appropriate content and NOT left blank or filled in with zeros, or other numbers or symbols indicating data has not been obtained.

Note: Required fields determined by the Hillsdale County Board of REALTORS® Technology Committee shall be documented in a separate Board publication entitled: “MLS Data Requirements.” Failure to comply with the requirements so noted will subject the offender to penalties under Addendum A-Board Sanctions Policy.

Section 3. Exempted Listings Any listing which a seller has requested NOT to have entered into the MLS is exempt if the request has been noted and signed by the seller.

Section 4. Change of Status of Listing Any change in listed price or other changes in the original listing agreement shall be made only when authorized in writing by the owner and listing broker, and shall be entered into the MLS within 72 hours (except weekends, holidays and postal holidays) after said authorized change is received by the listing broker. All change forms must have the sellers and broker/sales agents signatures and seller’s date of signature. If an office is contacted regarding the signatures they have 24 hours to submit the information to the Board Office.

Section 5. Withdrawal of Listing Prior to Expiration Listed property may be withdrawn from the MLS by the listing broker before the expiration date of the listing agreement provided the withdrawal has been duly requested and authorized by the seller and the member firm Participant.

Section 6. Contingencies Applicable to Listings Any contingency in a listing shall be explicitly noted in the listing agreement and processed to the membership accordingly. (See Article XIII, Section (9), Note 1)

Section 7. Listing Price Specified The full gross listing price stated in the listing contract shall be included in the information published in the MLS compilation of current listings unless the property is subject to auction. The MLS shall not accept net listings or open listings.

Section 8. Listing Multiple Unit Properties All properties which are to be sold or which may be sold separately must be indicated individually in the MLS. When part of a listed property has been sold, proper notification should be made in the MLS.

Section 9. No Control of Commission Rates or Fees Charged by Participants The MLS shall not fix, control, recommend, suggest, or maintain commission rates or fees for services to be rendered by Participants. Further, the MLS shall not fix, control, recommend, suggest or maintain the division of commissions, or fees between cooperating Participants or between Participants and non-Participants.

Section 10. Expiration, Extension, and Renewal of Listings Listings filed with the multiple listing service will automatically be removed from the compilation of current listings on the expiration date specified in the agreement, unless prior to that date the MLS receives notice that the listing has been extended or renewed. (Amended 11/01)
If notice of renewal or extension is received after the listing has been removed from the compilation of current listings, the extension or renewal will be published in the same manner as a new listing. Extensions and renewals of listings must be signed by the seller(s), filed with the listing office and available to the service at its request. Any extension or renewal of a listing must be entered into the MLS within 72hours.

Section 11. Termination Date on Listings Listings entered into the service shall bear a definite and final termination date as negotiated between the listing broker and the seller.

Section 13. Listings of Suspended Participants When a Participant (broker) of the service is suspended from the MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics, Association Bylaws, MLS Bylaws, MLS Rules and Regulations, or other membership obligation except failure to pay appropriate dues, fees or charges), all listings currently filed with the MLS by the suspended Participant shall, at the Participant’s option, be retained in the service until sold, withdrawn, or expired, and shall not be renewed or extended by the MLS beyond the termination date of the listing agreement in effect when the suspension became effective. If a Participant has been suspended from the Association (except where MLS participation without Association Membership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees or charges, an Association MLS is not obligated to provide MLS services, including continued inclusion of the suspended Participant’s listings in the MLS compilation of the current listing information. Prior to any removal of a suspended Participant’s listings from the MLS, the

suspended Participant should be advised in writing of the intended removal so that the
suspended Participant may advise his/her clients. All listings of the suspended Participant will be withdrawn.

Section 14. Listings of Expelled Participants When a Participant (broker) of the service is expelled from the MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics, Association Bylaws, MLS Bylaws, MLS Rules and Regulations, or other membership obligations except failure to pay appropriate dues, fees or charges), prior to removal of any of the expelled Participant’s listings, the expelled Participant should be advised in writing of the intended removal so that the expelled Participant may advise his/her clients. All listings of the expelled Participant will be withdrawn.

Section 15. Listings of Resigned Participants When a Participant (broker) withdraws from the MLS, the MLS is not obligated to provide services, including continued inclusion of the withdrawn Participant’s listings in the MLS compilation of current listing information. Prior to removal of any of a withdrawn Participant’s listings from the MLS, the withdrawn Participant should be advised in writing of the intended removal so that the withdrawn Participant may advise his/her clients.

Section 16. Jurisdiction Only listings of the designated types of property located within the jurisdiction of the MLS are required to be submitted to the service. Listings of property outside the MLS’s jurisdiction will be accepted if submitted voluntarily by a Participant, but cannot be required by the service. (Amended 11/01)

Article XIII -Selling Procedures

Section 1. Showings and Negotiations Appointments for showings and negotiations with the seller for the purchase of listed property filed with the MLS shall be conducted through the listing broker except under the following circumstances:

(a) The listing broker gives the cooperating broker specific authority to show and/or negotiate directly, or

(b) After reasonable effort, the cooperating broker cannot contact the listing broker or his representative. However, the listing broker, at his option, may preclude such direct negotiations by cooperating brokers.

Section 2. Presentation of Offers The listing broker must present the offer as soon as possible, or give the cooperating broker a satisfactory reason for not doing so.

Section 3. Disclosing the Existence of Offers Listing brokers, in response to inquiries from buyers or cooperating brokers shall, with the seller’s approval, disclose the existence of offers on the property. Where disclosure is

authorized, the listing broker shall also disclose whether offers were obtained by the listing licensee, by another licensee in the listing firm, or by a cooperating broker. (Adopted 11/05)

Section 4. Availability of Listed Property Listing brokers shall not misrepresent the availability of access to show or inspect listed property.

Section 5. Submission of Written Offers The listing broker shall submit to the seller all written offers until closing unless precluded by law, government rule, regulation, or agreed otherwise in writing between the seller and the listing broker. Unless the subsequent offer is contingent upon the termination of an existing contract, the listing broker shall recommend that the seller obtain the advice of legal counsel prior to acceptance of the subsequent offer. (Adopted 11/87) Participants representing buyers or tenants shall submit to the buyer or tenant all offers and counter-offers until acceptance, and shall recommend that buyers and tenants
obtain legal advice where there is a question about whether a pre-existing contract has been terminated. (Amended 11/05)

Section 6. Right of Cooperating Broker in Presentation of Offer The cooperating broker, subagent or buyer agent, or his representative shall have the right to participate in the presentation to the seller or lessor of any offer he secures to purchase or lease. The cooperating broker does not have the right to be present at any subsequent discussion or evaluation of that offer by the seller(s) or lessor and the listing broker. However, if the seller or lessor gives written instructions to the listing broker that the cooperating broker not be present when an offer the cooperating broker secured is presented, the cooperating broker has the right to a copy of the seller’s/lessor’s written instructions. None of the foregoing diminishes the listing broker’s right to control the establishment of appointments for such presentations.

Section 7. Right of Listing Broker in Presentation of Counter-Offer The listing broker or his representative has the right to participate in the presentation of any counter-offer made by the seller or lessor. He does not have the right to be present at any discussion or evaluation of a counter-offer by the purchaser or lessee (except where the cooperating broker is a subagent). However, if the purchaser or lessee gives written instructions to the cooperating broker that the listing broker not be present when a counter-offer is presented, the listing broker has the right to a copy of the purchaser’s or lessee’s written instructions.

Section 8. No one shall divulge to anyone the terms, price or conditions recited in any offer to purchase presented cooperatively, on a specific property before the offer is presented to the seller.

Section 9. Reporting Sales to the Service. Sales shall be reported immediately to the Multiple Listing Service by the listing broker unless the negotiations were carried on under Section 2(a) or (b) hereof, in which case the cooperating broker shall report, sending copy to the listing broker within 24-hours after acceptance. (Amended 4/92)

NOTE 1: The listing agreement of a property filed with the MLS by the listing broker should include a provision expressly granting the listing broker authority to advertise; to file the listing with the MLS; to provide timely notice of status changes of the listing to the MLS; and to provide sales information including selling price to the MLS upon sale of the property. The listing agreement should also include a provision expressly granting the listing broker the right to authorize dissemination of this information by the MLS to its Participants.

Section 10. Reporting Resolutions of Contingencies The listing broker shall report to the MLS within 72 hours that a contingency on file with the MLS has been fulfilled or renewed, or the agreement is cancelled.

Section 11. Advertising of Listing Filed with the Service A listing shall not be advertised by any Participant, other than the listing broker, without the prior consent of the listing broker.

Section 12. Reporting Cancellation of Pending Sale The listing broker shall report immediately in the MLS the cancellation of any pending sale that has been previously posted in the MLS, and the listing shall be reinstated immediately.

Article XIV - Refusal to Sell

Section 1. If the seller of any listed property filed with the MLS refuses to accept a written and executed offer satisfying the price, terms and conditions stated in the listing contract, such information shall be transmitted to the MLS office regarding status of the listing which, in turn shall immediately be transmitted to all Participants.

Article XV -Prohibitions

Section 1. Information for Participants Only Any listing filed with the service shall not be made available to any broker or firm not a member of the MLS without the prior consent of the listing broker.

Section 2. Only the “For Sale” signs of the listing broker may be placed on a property.

Section 3. Sold Signs Prior to closing, only the sold sign of the listing broker may be placed on a property, unless the listing broker authorizes the cooperating (selling) broker to post such a sign. (Amended 4/96)

Section 4. Participants shall not solicit a listing on property filed with the service unless such solicitation is consistent with Article 16 of the REALTORS® Code of Ethics, its Standards of Practice and its Case Interpretations.

NOTE 1: This section is to be construed in a manner consistent with Article 16 of the Code of Ethics and particularly Standards of Practice 16-4. This section is intended to encourage sellers to permit their properties to be filed with the service by protecting them from being solicited, prior to expiration of listing, by brokers and sales persons seeking the listing upon its expiration. Without such protection a seller could receive hundreds of calls, communications, and visits from brokers and sales persons who have been made aware through MLS filing of the date the listing will expire and desire to substitute themselves for the present broker. This section is also intended to encourage brokers to participate in the service by assuring them that other Participants will not attempt to persuade the seller to breach the listing agreement or to interfere with their attempts to market the property. Absent the protection afforded by this section, listing brokers would be most reluctant to generally disclose the identity of the seller or the availability of the property to other brokers. This section does not preclude solicitation of listings under the circumstances otherwise recognized by the Standards of Practice related to Article 16 of the Code of Ethics.

Article XVI -Division of Commissions

Section 1. Compensation Specified on Each Listing The listing broker shall specify, on each listing filed with the multiple listing service, the compensation offered to other multiple listing service Participants for their services in the sale of such listing. Such offers are unconditional except that entitlement to compensation is determined by the cooperating broker’s performance as the procuring cause of the sale (or lease) or as otherwise provided for in this rule. The listing broker’s obligation to compensate any cooperating broker as the procuring cause of the sale (or lease) may be excused if it is determined through arbitration that, through no fault of the listing broker and in the exercise of good faith and reasonable care, it was impossible or financially unfeasible for the listing broker to collect a commission pursuant to the listing agreement. In such instances, entitlement to cooperative compensation offered through MLS would be a question to be determined by an arbitration hearing panel based on all relevant facts and circumstances including, but not limited to, why it was impossible or financially unfeasible for the listing broker to collect some or all of the commission established in the listing agreement; at what point in the transaction did the listing broker know (or should have known) that some or all of the commission established in the listing agreement might not be paid; and how promptly had the listing broker communicated to cooperating brokers that the commission established in the listing agreement might not be paid. (Amended 11/98)
In filing a property with the multiple listing service of an association of REALTORS®, the Participant of the service is making blanket unilateral offers of compensation to the other MLS Participants, and shall therefore specify on each listing filed with the service, the compensation being offered to the other MLS Participants. Specifying the compensation on each listing is necessary, because the cooperating broker has the right to know what his compensation shall be prior to his endeavor to sell. (Amended 11/96)
The listing broker retains the right to determine the amount of compensation offered to other Participants (acting as subagents, buyer agents, or in other agency or non-agency capacities defined by law) which may be the same or different. (Amended 11/96)
This shall not preclude the listing broker from offering any MLS Participant compensation other than the compensation indicated on any listing published by the MLS, provided the listing broker informs the other broker, in writing, in advance of his producing an offer to purchase, and provided that the modification in the specified compensation is not the result of any agreement among all or any other Participants in the service. Any superseding offer in compensation must be expressed as either a percentage of the gross sales price or as a flat dollar amount. (Amended 11/95)

Note 1: The association multiple listing service shall not have a rule requiring the listing broker to disclose the amount of total negotiated commission in his listing contract, and the association multiple listing service shall not publish the total negotiated commission on a listing which has been submitted to the MLS by a Participant. The association multiple listing service shall not disclose in any way the total commission negotiated between the seller and the listing broker. *The compensation specified on listings filed with the multiple listing service shall appear in one of two forms. The essential and appropriate requirement by an association multiple listing service is that the information to be published shall clearly inform the Participants as to the compensation they will receive in cooperative transactions, unless advised otherwise by the listing broker, in writing, in advance of his producing an offer to purchase. The compensation specified on listings published by the MLS shall be shown in one of the following forms:
(1). by showing a percentage of the gross selling price
(2). by showing a definite dollar amount (Amended 11/95)

Note 2: The listing broker may, from time to time, adjust the compensation offered to other multiple listing service Participants for their services with respect to any listing by advance published notice to the service so that all Participants will be advised. (Amended 4/92)

Note3: The multiple listing service shall make no rule on the division of commissions between Participants and non-Participants. This should remain solely the responsibility of the listing broker.

Note 4: Multiple listing services, at their discretion, may adopt rules and procedures enabling listing brokers to communicate to potential cooperating brokers that gross commissions established in listing contracts are subject to court approval or to lender approval; and that compensation payable to cooperating brokers may be reduced if the gross commission established in the listing contract is reduced by a court or by a lender. In such instances, the fact that the gross commission is subject to court or to lender approval and either the potential reduction in compensation payable to cooperating brokers or the method by which the potential reduction in compensation will be calculated must be clearly communicated to potential cooperating brokers prior to the time they produce an offer that ultimately results in a successful transaction. (Adopted 11/98)

Note 5: Nothing in these MLS rules precludes a listing Participant and a cooperating Participant, as a matter of mutual agreement, from modifying the cooperative compensation to be paid in the event of a successful transaction. (Adopted 11/05)

Section 2. Participant as Principal If a Participant or any licensee (or licensed or certified appraiser) affiliated with a Participant has any interest in a property, the listing of which is to be disseminated through the MLS, that person shall disclose that interest when the listing is filed with the MLS and such information shall be disseminated to all MLS Participants.

Section 3. Participant as Purchaser If a Participant or any licensee (including licensed and certified appraisers) affiliated with a Participant wishes to acquire an interest in property listed with another Participant, such contemplated interest must be disclosed, in writing, to the listing broker not later than the time an offer to purchase is submitted to the listing broker. (Adopted 2/92)

Section 4. Dual or Variable Rate Commission Arrangements The existence of a dual or variable rate commission arrangement (i.e. one in which the seller/landlord agrees to pay a specified commission if the property is sold/leased by the listing broker without assistance and a different commission if the sale/lease results through the efforts of a cooperating broker; or one in which the seller/landlord agrees to pay a specified commission if the property is sold/leased by the listing broker either with or without the assistance of a cooperating broker and a different commission if the sale/lease results through the efforts of a seller/landlord) shall be disclosed by the listing broker by a key, code, or symbol as required by the MLS. The listing broker shall, in response to inquiries from potential cooperating brokers, disclose the differential that would result in either a cooperative transaction, or, alternatively, in a sale/lease that results through the efforts of the seller/landlord. If the cooperating broker is a buyer/tenant representative, the buyer/tenant representative must disclose such information to their client before the client makes an offer to purchase or lease. (Amended 5/01)

Article XVII -Limitations on Use of MLS Information

Section 1. Use of information from the MLS compilation of current listing information from the Board’s “statistical report,” or from any “sold” or “comparable” report of the Board or MLS for public mass-media advertising by an MLS Participant or in other public representations may not be prohibited. However, any print or non-print forms of advertising or other forms of public representations based in whole or in part on information supplied by the Board or its MLS must clearly demonstrate the period of time over which such claims are based and must include the following, or substantially similar, notice: “Based on information from the Board/Association of REALTORS® (alternatively, from the Hillsdale MLS) for the period (date) through (date).” 

Article XVIII -Waiver Policy

Section 1. Upon application and approval at the discretion of the Board of Directors of the Hillsdale County Board of REALTORS® Multiple Listing Service a service waiver may be granted for those individuals employed by or affiliated as an independent contractor with the Participant who does not actually have access to and use the service. (This waiver does not apply to the REALTOR® Participant.) A waiver is granted for the balance of the current calendar year. The exemption, if recommended, shall be effective when approved by the Board of Directors. The exemption for any individual shall automatically be revoked upon the individual’s utilization of the service in any manner. If the Hillsdale County Board of REALTORS® Multiple Listing Service is not notified of reinstatement of the user and the user is found using the system, the Participant will be found in violation and fined $200 in addition to retroactive MLS fees back to the date of waiver. At the time a waiver is requested to be reinstated prior to the next calendar year the past fees and/or fines may be waived at the discretion of the Hillsdale County Board of REALTORS® Multiple Listing Service Directors.
Article XIX -Amendments to Rules and Regulations

Section 1. Amendments to the Rules and Regulations of the service shall be by consideration and approval of the Board of Directors of the Hillsdale County Board of REALTORS®.

Article XX Additional Provisions

Section 1. Sales of Property Not Listed in this MLS. An agent is allowed to file a sale to the MLS by completing a selling and financing form with as much information as possible, with the actual sale price reported. The reported sale price will be used for the production figures of the office and agents for the annual MLS production reports. The profile may be sent to the MLS office to allow MLS staff to input it in the system. Photos and sketches will not be required, and sellers’ signatures will not be required. The remarks section must explain that this listing is only a record of a sale.

Section 2. Reporting of Sales to the MLS. Requests from a buyer or seller that the sale price of a property be kept confidential, must be made in writing and submitted to the Board Office upon request. One dollar ($1.00) may be entered as the sale price under such circumstances. The buyer or seller must, however, give approval for the agent to allow the actual sale price to be disclosed for appraisals and
the compilation of agent sales statistics.

Article XXI-Fees

Section 1. Listings Any listing input by Board staff into any Multiple Listing Service, shall be input for a fee to be set from time to time by the Board of Directors and to be paid by the listing agent or broker.

Section 2. Reciprocal Listings. The Hillsdale County Board of REALTORS® has reciprocal agreements with other area associations. The reciprocal listing input fee will be charged at the same rate the reciprocal board charges the Hillsdale Board, except that the agent shall also pay a listing input fee to the Hillsdale Board Office as noted in Section 1, above.

Section 3. Application Fees. The application fee for a new office, or for a current member office principal ownership change, is $200.00. This is not to be construed that multiple owners have to pay the fee to join the MLS.

Section 4. Appraisers. Licensed appraisers who are REALTOR® members only, who belong to another Board or Association shall be allowed access to the MLS Online system, upon payment of a set-up fee of $200 and the same monthly MLS fees as are charged to other members.

Section 6. Books. Member purchase of MLS books is not mandatory.

Article XXII-Internet Data Exchange

Section 1. IDX Defined IDX affords MLS Participants the option of authorizing display of their active listings on other Participants’ Internet Web sites.

Section 2. Authorization Participants’ consent for display of their active listings by other Participants pursuant to these rules and regulations is presumed unless a Participant affirmatively notifies the MLS that the Participant refuses to permit display (either on a blanket or on a listing-by-listing basis). If a Participant refuses on a blanket basis to permit the display of that Participant’s listings, that Participant may not download or frame the aggregated MLS data of other Participants. Even where Participants have given blanket authority for other Participants to display their listings on IDX sites, such consent may be withdrawn on a listing-by-listing basis as instructed by the seller.

Section 3. Participation Participation in IDX is available to all MLS Participants who consent to display of their listings by other Participants.

Section 4. Participants must notify the MLS of their intention to establish an IDX site and must make their site directly accessible to the MLS for purposes of monitoring/ensuring compliance with applicable rules and policies.

Section 5. Participants must protect IDX information from misappropriation by employing reasonable efforts to monitor and prevent “scraping” or other unauthorized accessing, reproduction, or use of the MLS database.

Section 6. Listings or property addresses of sellers who have directed their listing brokers to withhold their listing or property address from display on the Internet (including, but not limited to, publicly-accessible Web sites or VOWs) shall not be accessible via IDX sites. Notwithstanding this prohibition, listing brokers may display on their IDX sites or their other Web site(s) the listing or property address of consenting sellers.

Section 7. Participants may exclude listings from display on their IDX sites based only on objective criteria including, but not limited to, factors such as geography, list price, type of property, or cooperative compensation offered by listing brokers. Examples include property type (“condos,” “single family detached,” “multi-family,” etc.), price, or location (“downtown”).

Section 8. Participants must refresh all MLS downloads and refresh all MLS data at least once every seven days.

Section 9. Except as provided in these rules, an IDX site or a Participant or user operating an IDX site may not distribute, provide, or make any portion of the MLS database available to any person or entity.

Section 10. When displaying listing content, a Participant’s or user’s IDX site must clearly identify the name of the brokerage firm under which they operate in a readily visible color and typeface.

Section 11. Display Display of listing information pursuant to IDX is subject to the following rules:

(a) Listings displayed pursuant to IDX shall contain only those fields of data designated by the MLS. Display of all other fields (as determined by the MLS) is prohibited. Confidential fields intended only for other MLS Participants and users (e.g. cooperative compensation offers, showing instructions, property security information, etc.) may not be displayed on IDX sites.

(b) The type of listing agreement (e.g., exclusive right to sell, exclusive agency, etc.) may not be displayed ion IDX sites.

(c) Participants shall not modify or manipulate information relating to other Participants’ listings. (This is not a limitation on site design but refers to changes to actual listing data.) MLS data may be augmented with additional data not otherwise prohibited from display so long as the source of the additional data is clearly identified. This requirement does not restrict the format of MLS data display or display of fewer than all of the available listings or fewer authorized data fields.

(d) All listings displayed pursuant to IDX shall identify the listing firm in a readily visible color and typeface not smaller than the median used in the display of listing data.

(e) All listings displayed pursuant to IDX shall identify the listing agent.

(f) Non-principal brokers and sales licensees affiliated with IDX Participants may display information available through IDX on their own Web sites subject to their Participant’s consent and control and the requirements of state law and/or regulation.

(g) Listing information downloaded an/or otherwise displayed pursuant to IDX shall be limited to properties listed on an exclusive right to sell basis.

(h) All listings displayed pursuant to IDX shall show the MLS as the source of the information.

(i) Participants (and their affiliated licensee, if applicable) shall indicate on their Web sites that IDX information is provided exclusively for consumers’ personal, non-commercial use, that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that the data is deemed reliable but is not guaranteed accurate by the MLS. The MLS may, at its discretion, require use of other disclaimers as necessary to protect Participants and/or the MLS from liability.
(j) The right to display other Participants’ listings pursuant to IDX shall be limited to a Participant’s office(s) holding participatory rights in this MLS.

(k) Listings obtained through IDX must be displayed separately from listings obtained from other sources, including information provided by other MLSs. Listing obtained from other sources (e.g. from other MLSs, from non-participating brokers, etc.) must display the source from which each such listing was obtained.

(l) Display of expired, withdrawn, and pending listings is prohibited.

(m) Display of seller’s(s’) and/or occupant’s(s’) name(s), phone number(s), and email address(es) is prohibited.

(n) Service fees and charges for participation in IDX shall be as established annually by the Board of Directors. (Adopted 11/01, Amended 5/05)

Section 12. Virtual Office Websites

Section 12.1
(a) A Virtual Office Website (“VOW”) is a Participant’s Internet website, or a feature of a Participant’s website, through which the Participant is capable of providing real estate brokerage services to consumers with whom the Participant has first established a broker-consumer relationship (as defined by state law) where the consumer has the opportunity to search MLS Listing Information, subject to the Participant’s oversight, supervision, and accountability. A non-principal broker or sales licensee affiliated with a Participant may, with his or her Participant’s consent, operate a VOW. Any VOW of a non-principal broker or sales licensee is subject to the Participant’s oversight, supervision, and accountability.

(b) As used in Section 19 of these Rules, the term “Participant” includes a Participant’s affiliated non-principal brokers and sales licensees – except when the term is used in the phrases “Participant’s consent” and “Participant’s oversight, supervision, and accountability”. References to “VOW” and “VOWs” include all VOWs, whether operated by a Participant, by a non-principal broker or sales licensee, or by an Affiliated VOW Partner (“AVP”) on behalf of a Participant.

(c) “Affiliated VOW Partner” (“AVP”) refers to an entity or person designated by a Participant to operate a VOW on behalf of the Participant, subject to the Participant’s supervision, accountability and compliance with the VOW Policy. No AVP has independent participation rights in the MLS by virtue of its right to receive information on behalf of a Participant. No AVP has the right to use MLS Listing Information except in connection with operation of a VOW on behalf of one or more Participants. Access by an AVP to MLS Listing Information is derivative of the rights of the Participant on whose behalf the AVP operates a VOW.

(d) As used in Section 19 of these Rules, the term “MLS Listing Information” refers to active listing information and sold data provided by by Participants to the MLS and aggregated and distributed by the MLS to Participants.

Section 12.2
(a) The right of a Participant’s VOW to display MLS Listing Information is limited to that supplied by the MLS in which the Participant has participatory rights. However, a Participant with offices participating in different MLSs may operate a master website with links to the VOWs of the other offices.

(b) Subject to the provisions of the VOW Policy and these Rules, a Participant’s VOW, including any VOW operated on behalf of a Participant by an AVP, may provide other features, information, or functions, e.g. Internet Data Exchange (“IDX”).

(c) Except as otherwise provided in the VOW Policy or in these Rules, a Participant need not obtain separate permission from other MLS Participants whose listings will be displayed on the Participant’s VOW.

Section 12.3
(a) Before permitting any consumer to search for or retrieve any MLS Listing Information on his or her VOW, the Participant must take each of the following steps:
(i) The Participant must first establish with that consumer a lawful broker-consumer relationship (as defined by state law), including completion of all actions required by state law in connection with providing real estate brokerage services to clients and customers (hereinafter “Registrants”). Such actions shall include, but are not limited to, satisfying all applicable agency, non-agency, and other disclosure obligations, and execution of any required agreements.
(ii) The Participant must obtain the name of, and a valid email address for, each Registrant. The Participant must send an email to the address provided by the Registrant confirming that the Registrant has agreed to the Terms of Use (described in subsection (d) below). The Participant must verify that the email address provided by the Registrant is valid and that the Registrant has agreed to the Terms of Use.
(iii) The Participant must require each Registrant to have a user name and a password, the combination of which is different from those of all other Registrants on the VOW. The Participant may, at his or her option, supply the user name and password or may allow the Registrant to establish its user name and password. The Participant must also assure that any email address is associated with only one user name and password.
(b) The Participant must assure that each Registrant’s password expires on a date certain but may provide for renewal of the password. The Participant must at all times maintain a record of the name, email address, user name, and current password of each Registrant. The Participant must keep such records for not less than 180 days after the expiration of the validity of the Registrant’s password.
(c) If the MLS has reason to believe that a Participant’s VOW has caused or permitted a breach in the security of MLS Listing Information or a violation of MLS rules, the Participant shall, upon request of the MLS, provide the name, email address, user name, and current password, of any Registrant suspected of involvement in the breach or violation. The Participant shall also, if requested by the MLS, provide an audit trail of activity by any such Registrant.
(d) The Participant shall require each Registrant to review, and affirmatively to express agreement (by mouse click or otherwise) to, a “Terms of Use” provision that provides at least the following:
(i) That the Registrant acknowledges entering into a lawful consumer-broker relationship with the Participant;

(ii) That all information obtained by the Registrant from the VOW is intended only for the Registrant’s personal, non-commercial use;

(iii) That the Registrant has a bona fide interest in the purchase, sale, or lease of real estate of the type being offered through the VOW;

(iv) That the Registrant will not copy, redistribute, or retransmit any of the information provided except in connection with the Registrant’s consideration of the purchase or sale of an individual property;

(v) That the Registrant acknowledges the MLS’s ownership of, and the validity of the MLS’s copyright in, the MLS database.
(e) The Terms of Use Agreement may not impose a financial obligation on the Registrant or create any representation agreement between the Registrant and the Participant. Any agreement entered into at any time between the Participant and Registrant imposing a financial obligation on the Registrant or creating representation of the Registrant by the Participant must be established separately from the Terms of

Use, must be prominently labeled as such, and may not be accepted solely by mouse click.

(f) The Terms of Use Agreement shall also expressly authorize the MLS, and other MLS Participants or their duly authorized representatives, to access the VOW for the purposes of verifying compliance with MLS rules and monitoring display of Participants’ listings by the VOW. The Agreement may also include such other provisions as may be agreed to between the Participant and the Registrant.
Section 12.4: A Participant’s VOW must prominently display an e-mail address, telephone number, or specific identification of another mode of communication (e.g., live chat) by which a consumer can contact the Participant to ask questions, or get more information, about any property displayed on the VOW. The Participant, or a non-principal broker or sales licensee licensed with the Participant, must be willing and able to respond knowledgeably to inquiries from Registrants about properties within the market area served by that Participant and displayed on the VOW.
Section 12.5: A Participant’s VOW must employ reasonable efforts to monitor for, and prevent, misappropriation, “scraping”, and other unauthorized use of MLS Listing Information. A Participant’s VOW shall utilize appropriate security protection such as firewalls as long as this requirement does not impose security obligations greater than those employed concurrently by the MLS. Section 12.6 (a) A Participant’s VOW shall not display listings or property addresses of any seller who has affirmatively directed the listing broker to withhold the seller’s listing or property address from display on the Internet. The listing broker shall communicate to the MLS that the seller has elected not to permit display of the listing or property address on the Internet. Notwithstanding the foregoing, a Participant who operates a VOW may provide to consumers via other delivery mechanisms, such as email, fax, or otherwise, the listings of sellers who have determined not to have the listing for their property displayed on the Internet.
(b) A Participant who lists a property for a seller who has elected not to have the property listing or the property address displayed on the Internet shall cause the seller to execute a document that includes the following (or a substantially similar) provision:
Seller Opt-Out Form
1.Please check either Option a or Option b
a.[ ] I have advised my broker or sales agent that I do not want the listed property to be displayed on the Internet.

OR

b.[ ] I have advised my broker or sales agent that I do not want the address of the listed property to be displayed on the Internet.

2. I understand and acknowledge that, if I have selected option a, consumers who conduct searches for listings on the Internet will not see information about the listed property in response to their search.
_
initials of seller
(c) The Participant shall retain such forms for at least one year from the date they are signed, or one year from the date the listing goes off the market, whichever is greater.
Section 12.7:

(a) Subject to subsection (b), a Participant’s VOW may allow third-parties (i) to write comments or reviews about particular listings or display a hyperlink to such comments or reviews in immediate conjunction with particular listings, or (ii)
display an automated estimate of the market value of the listing (or hyperlink to such estimate) in immediate conjunction with the listing

(b) Notwithstanding the foregoing, at the request of a seller the Participant shall disable or discontinue either or both of those features described in subsection (a) as to any listing of the seller. The listing broker or agent shall communicate to the MLS that the seller has elected to have one or both of these features disabled or discontinued on all Participants’ websites. Subject to the foregoing and to Section 19.8, a Participant’s VOW may communicate the Participant’s professional judgment concerning any listing. A Participant’s VOW may notify its customers that a particular feature has been disabled “at the request of the seller.”

Section 12.8: A Participant’s VOW shall maintain a means (e.g., e-mail address, telephone number) to receive comments from the listing broker about the accuracy of any information that is added by or on behalf of the Participant beyond that supplied by the MLS and that relates to a specific property displayed on the VOW. The Participant shall correct or remove any false information relating to a specific property within 48 hours following receipt of a communication from the listing broker explaining why the data or information is false. The Participant shall not, however, be obligated to correct or remove any data or information that simply reflects good faith opinion, advice, or professional judgment.
Section 12.9: A Participant shall cause the MLS Listing Information available on its VOW to be refreshed at least once every three (3) days.

Section 12.10: Except as provided in these rules, the NATIONAL ASSOCIATION OF REALTORS® VOW Policy, or any other applicable MLS rules or policies, no Participant shall distribute, provide, or make accessible any portion of the MLS Listing Information to any person or entity.

Section 12.11: A Participant’s VOW must display the Participant’s privacy policy informing Registrants of all of the ways in which information