Rules must not only be made, but enforced. As a cooperative, MLSListings provides a team that is on your side to proactively contact subscribers and correct any errors as they arise to assure the integrity of the data within the MLS.

Even with MLSListings’ Compliance department working full time to enforce agreed - upon standards of practice, there is still a percentage of listings that are not being cooperatively managed. In response to  growing demand from its membership for more assertive action, MLSListings is raising the bar of acceptable standards and assertively enforcing the agreed-upon rules.

DirectConnect recently sat down with the Compliance Manager, Robert Bustamante, to learn more about the role compliance plays in the MLS, common issues they encounter and the increasing enforcement that is taking place. This interview will be the first in a series of articles regarding MLSListings Compliance.

DC:  Could you describe the importance of the role of Compliance within MLSListings?

RB: The Cooperative’s subscribers rely on the MLS Compliance department to provide structure and enforce the agreed-upon practices so they all may partake of the “greater good.” Without a central business rules resource, one could imagine the disorder that would emerge. Compensation would be “at your own risk”.  Listings would become marginally available and information regarding the listing would be unreliable at best and subject to misrepresentation at worst. Certainly dates, times and other content would become irrelevant if accuracy and truth were not a requirement and enforced.

DC:  How is the Compliance Department function structured?

RB:  A real estate broker or agent who becomes a subscriber to the Cooperative agrees to operate in accordance with several core principles:

-          Offer compensation on every listing to other members of the cooperative

-          Always provide true and accurate information to other members of the cooperative

-          Ensure that all their properties are listed or officially excluded within a certain time for other members of the cooperative

-          Bring a willing, ready and able buyer for the properties of other members of the cooperative.

By agreeing to the rules that govern these principles, subscribers also agree to be held responsible. The Compliance Department applies these principles to all subscribers in a consistent and fair way.

MLSListings also has a subscriber advisory group – the MLS Rules Committee – that provides real-world real estate expertise to the compliance function. This group of volunteers develops rules; institutes best practices for standards; and provides oversight to ensure that the Compliance department’s practices and procedures are aligned with the MLS Board of Directors compliance goals.

DC:  How are the rules structured and enforced? Does MLSL have a no-tolerance policy?

RB:  MLSListings adopted the California Association of REALTORS® (CAR) model MLS rules, which were adopted from the National Association of REALTORS® (NAR) model rules. With some minor differences, our MLS rules are very similar to other MLSs throughout the state. Since the Cooperative is made up of people and therefore subject to the human condition of imperfection, the Cooperative uses these rules and guidelines to ensure all the agreed-upon practices and procedures are followed so that the benefit and purpose of the MLS cooperative can be fulfilled. It’s a strong pedigree with respect to “tried and true” practices. We do not have a “zero tolerance” policy but our complaining subscribers do. If there is a listing or rules violation we might make a courtesy contact to advise the agent of the problem even though we have no obligation to do so. So, if you receive a call or email regarding a fixable violation, please act on it right away because if it is not corrected a fine will follow.

DC:  How would someone appeal a decision made by the Compliance Rules Committee?

RB:  Subscribers should be aware that The MLS Rules Committee provides only a review to ensure the Compliance department has acted properly. The most common appeals are “I did not receive a warning prior to a fine” or “I wasn’t aware I was breaking a rule.” Neither of these excuses is valid to reverse the citation.  However, all subscribers who have been disciplined by the MLS in one way or another are entitled to a hearing in which a panel of real estate professionals will be assembled to hear the case and render a decision.

An agent who truly believes he/she was wronged or has a moral or ethical objection to a rule should pursue a hearing. However, bear in mind that the hearing process is resource-intensive for all parties and, as such, the panel may charge an additional administrative fee.

DC: Are there common issues Compliance sees routinely?

RB: Yes, most of them fall into the following categories: misuse of the Remarks area; failure to change status; failure to manage Close of Escrow or other dates; advertising other broker’s listings without permission, and no photo published with the listings.  All of these are rules violations and are subject to a fine.

DC: How can MLS subscribers actively support and promote MLSL’s Compliance program?

RB: Self education is the key. Learn the rules and then share them with others. Be involved with your REALTOR® association, your fellow agents and the MLS. Each subscriber should challenge themselves by asking—is my activity on the MLS cooperative in nature, true and accurate in execution? Or am I trying to just do “what is best for me.” In the end, the activity that works best for others in the community and on the MLS, at least for properties listed on the service, will be what is best for the individual agent and his/her clients.

DC: In your opinion, how would you characterize a “best practices” Compliance program?

RB: A best practices program is one that is sustainable, scalable and objective. The Compliance practices need to be consistent and applied uniformly to all subscribers, day in and day out. Their efforts should fit and make sense for all subscribers – no matter how few or how many – where each subscriber is treated equally in every way.

DC: Any final thoughts?

RB: Cooperatives have a primary purpose that many seem to overlook - by working together we can reach an objective that would be unattainable by acting alone.