It’s my perception that everyone loves rules…until they are caught breaking them. Everyone believes that everyone else is breaking the rules…except for themselves. Everyone understands the importance of enforcing the rules…until the fines show up on their invoice. The bottom line is that we have a complicated love-hate relationship with rules, and to overcome that, we need to get back to basics and understand that the most effective way to avoid fines is to learn the rules and understand why they exist in the first place.
Prior to becoming the CEO of HGAR (the Hudson Gateway Association of REALTORS®) and OneKey MLS, I was the professional standards administrator of HGAR for many years, administering hundreds upon hundreds of hearings and mediations. During all those years, it was rare that the acts that led to the complaints appeared to be premeditated. Usually, they were the result of ignorance, laziness or lack of forethought. I think that’s the case with enforcement of MLS rules as well, and we have to collectively do better.
I believe that from an MLS perspective, there are two primary motivations for rules. The first is to ensure that the agents “do the right thing” in terms of effective cooperation to advance the interests of the consumer. Rules like the prompt entry of listings into the MLS, allowing full access to the listed property to cooperating agents, the timely submission of offers and counteroffers, are all examples of advancing effective cooperation.
Understanding and fulfilling fiduciary duties is vital, especially in the hyper-litigious environment we currently find ourselves. An example of an agent doing “the wrong thing” would be entering a listing into the MLS, promoting the public open house, then immediately withdrawing the listing from the MLS and putting it temporarily into off-market status, without the seller’s knowledge or consent. This practice smacks of self-dealing. Further, MLS rules often stipulate that transferring a listing from active status to temporarily off market doesn’t just require the seller’s knowledge and consent, but further requires that such instruction must be in writing.
The other primary motivation for rules is to maintain accurate, timely and complete listing data, which benefits both the brokerage community as well as consumers. For many years, brokers were perceived to be the “gatekeepers” to the MLS data. The MLSs published biweekly listing books, which were worth their weight in gold. With the advent of the internet and the proliferation of consumer-facing sites, all of that changed. However, the listing agent is still at the center of the data-aggregation process, and the old saying of “garbage in, garbage out” still holds true. If bad data is entered into the data food chain, it can corrupt the entire food chain, as well as creating a significant liability for both the listing agent and the listing office.
I cannot emphasize enough the importance of accurate and complete listing data, and you can certainly make the argument that ensuring that accurate listings are entered into the MLS also fulfills fiduciary obligations to the seller. Please understand that the MLS rules are the product of thorough and thoughtful discussion and ongoing evaluation by a committee of active, dedicated participants, with countless years in the business. Ultimately, rules are not intended to be punitive; they are intended to ensure that the MLS is the most powerful tool in the daily life of real estate professionals.
To learn more about OneKey MLS, visit https://www.onekeymlsny.com/.
