Staten Island Multiple Listing Service, Inc

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STATEN ISLAND MULTIPLE LISTING SERVICE, INC.RULES AND REGULATIONSListing ProceduresSection 1 Listing Procedures. Listings of real or personal property of the following types,which are listed subject to a real estate broker’s license, and are located within the territorialjurisdiction of the multiple listing service, and are taken by participants on Exclusive Right toSell listings or Exclusive Agency listings shall be delivered to the multiple listing service within48 hours after all necessary signatures of seller(s) have been obtained: (Amended 11/01)a. single family homes for sale or exchangeb. vacant lots and acreage for sale or exchangec. two-family, three-family, and four-family residential buildings for sale or exchanged. commercial/industrial property for sale, lease or exchangee. business property with associated real property lease for salef. single family or two-family homes for rent or leaseNote 1: The multiple listing service shall not require a participant to submit listings on a formother than the form the participant individually chooses to utilize provided the listing is of a typeaccepted by the service, although a property data form may be required as approved by themultiple listing service. However, the multiple listing service, through its legal counsel: reserves the right to refuse to accept a listing form which fails to adequately protect the interestsof the public and the participants, and; assures that no listing form filed with the multiple listing service establishes, directly orindirectly, any contractual relationship between the multiple listing service and the client (buyeror seller).The multiple listing service shall accept exclusive right-to-sell listing contracts and exclusiveagency listing contracts, and may accept other forms of agreement which make it possible for thelisting broker to offer compensation to the other participants of the multiple listing service actingas subagents, broker agents or buyer agents.The listing agreement must include the seller’s written authorization to submit the agreement tothe multiple listing service. (Amended 11/96)The different types of listing agreements include:· exclusive right-to-sell· exclusive agency· open· netThe service may not accept net listings because they are deemed unethical and, in most states,illegal. Open listings are not accepted except where required by law because the inherent natureof an open listing is such as to usually not include the authority to cooperate and compensateother brokers and inherently provides a disincentive for cooperation. (Amended 4/92)

The exclusive right-to-sell listing is the conventional form of listing submitted to the multiplelisting service in that the seller authorizes the listing broker to cooperate with and to compensateother brokers. (Amended 4/92)The exclusive agency listing also authorizes the listing broker, as exclusive agent, to offercooperation and compensation on blanket unilateral bases, but also reserves to the seller thegeneral right to sell the property on an unlimited or restrictive basis. Exclusive agency listingsand exclusive right-to-sell listings with named prospects exempted should be clearlydistinguished by a simple designation such as a code or symbol from exclusive right-to-selllistings with no named prospects exempted, since they can present special risks of procuringcause controversies and administrative problems not posed by exclusive right-to- sell listings withno named prospects exempted. Care should be exercised to ensure that different codes or symbolsare used to denote exclusive agency and exclusive right-to-sell listings with prospect reservations.(Amended 4/92)Note 2: A multiple listing service does not regulate the type of listings its members may take.This does not mean that a multiple listing service must accept every type of listing. The multiplelisting service 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 itchooses to limit the kind of listings it will accept, it shall leave its members free to accept suchlistings to be handled outside the multiple listing service.Section 1.1 Types of Properties. Following are some of the types of properties that may bepublished through the service, including types described in the preceding paragraph that arerequired to be filed with the service and other types that may be filed with the service at theparticipant’s option provided, however, that any listing submitted is entered into within the scopeof the participant’s licensure as a real estate broker: (Amended 11/91) residential incomeproducing motel-hotel residential income mobile homes subdivided vacant lot mobilehome parks land and ranch commercial income business opportunity industrialSection 1.1.1 Listing Subject to Rules and Regulations of the Service. Any listing taken on acontract to be filed with the multiple listing service is subject to the rules and regulations of theservice upon signature of the seller(s).Section 1.2 Detail on Listings Filed with the Service. A listing agreement or property dataform, when filed with the multiple listing service by the listing broker, shall be complete in everydetail which is ascertainable as specified on the property data form.Section 1.3 Exempted Listings. If the seller refuses to permit a required listing to bedisseminated by the service, the participant may then take the listing as an office exclusive andsuch listing shall be filed with the service but not disseminated to the participants. Filing of thelisting must be accompanied by certification (Office Exclusive Certification) signed by the sellerthat he does not desire the listing to be disseminated by the service.Section 1.4 Change of Status of Listing. Any change in listed price or other change in theoriginal listing agreement shall be made only when authorized in writing by the seller and shallSIMLS Inc. Rules and Regulations – Approved by MLS BOD 3-8-20162

be filed with the service within twenty-four (24) hours (excepting weekends, holidays, and postalholidays) after the authorized change is received by the listing broker. Availability Statuschanges (i.e. Acceptance, Under Contract, Sold, Temporary Off Market, Hold, Released,Withdrawn, Back on Market (Active)) must be reported to the SIMLS within twenty-four (24)hours (excepting weekends, holidays, and postal holidays) after the authorized change is receivedby the listing broker. If a Participant refuses or fails to comply with these provisions the listingin question may be removed by the SIMLS. Prior to removal of any listing the participant shallbe advised of the intended removal so the participant can advise his/her client(s). (Adopted09/2009)Section 1.5 Withdrawal of Listing Prior to Expiration. Listings of property may be withdrawnor released from the multiple listing service by the listing broker before the expiration date of thelisting agreement, provided notice is filed with the service, including a copy of the agreementbetween the seller and the listing broker which authorizes the withdrawal or release.Sellers do not have the unilateral right to require an MLS to withdraw or release a listing withoutthe listing broker’s concurrence. However, when a seller(s) can document that his exclusiverelationship with the listing broker has been terminated, the multiple listing service may removethe listing at the request of the seller. (Adopted 11/96)Note: The “Release” may be a form or a letter from the listing participant to the seller(s)unconditionally releasing said seller(s) from their contract. This form or letter does not requirethe seller’s signature. The listing participant is not protected on this release. The use of thisform by the listing broker is strictly voluntary and an option to be exercised at the discretion ofthe listing broker.A “Withdrawal” is a form or a letter, signed by the seller(s) and the listing participant wherebythe seller(s) states that he no longer wishes to sell, lease or otherwise dispose of the propertyand in the event said property is sold, leased or otherwise disposed of within days (It isrecommended that the amount of time be fair and reasonable.), the listing participant will bepaid a commission. The use of this form is strictly voluntary and an option to be exercised atthe discretion of both the listing participant and the seller(s).Section 1.6 Contingencies Applicable to Listings. Any contingency or conditions of any termin a listing shall be specified and noticed to the participants.Section 1.7 Listing Price Specified. The full gross listing price stated in the listing contract willbe included in the information published in the MLS compilation of current listings. (Amended11/92)Section 1.8 Listing Multiple Unit Properties. All properties which are to be sold or which maybe sold separately must be indicated individually in the listing and on the property data form.When part of a listed property has been sold, proper notification should be given to the multiplelisting service.SIMLS Inc. Rules and Regulations – Approved by MLS BOD 3-8-20163

Section 1.9 No Control of Commission Rates or Fees Charged to Participants. The multiplelisting service shall not fix, control, recommend, suggest, or maintain commission rates or feesfor services to be rendered by participants. Further, the multiple listing service shall not fix,control, recommend, suggest, or maintain the division of commissions or fees betweencooperating participants or between participants and nonparticipants.Section 1.10 Expiration of Listings. Listings filed with the multiple listing service willautomatically be removed from the compilation of current listings on the expiration datespecified in the agreement, unless prior to that date the MLS receives notice, signed by the seller,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 thecompilation of current listings, the listing must be submitted as a new listing with a new ListingAgreement, signed by the seller. Extensions and renewals of listings must be signed by theseller(s) and filed with the service. (Amended 11/01)Section 1.11 Termination Date on Listings. Listings filed with the service shall bear a definiteand final termination date, as negotiated between the listing broker and the seller.Section 1.12 Jurisdiction. Only listings of the designated types of property located within thejurisdiction of the MLS are required to be submitted to the service. Listings of property locatedoutside the MLS’s jurisdiction will be accepted if submitted voluntarily by a participant, butcannot be required by the service. (Amended 11/01)Section 1.13 Listing of Suspended Participants. When a participant of the service is suspendedfrom 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 obligationexcept failure to pay appropriate dues, fees, or charges), all listings currently filed with the MLSby the suspended participant shall, at the participant’s option, be retained in the service untilsold, withdrawn or expired, and shall not be renewed or extended by the MLS beyond thetermination date of the listing agreement in effect when the suspension became effective. If aparticipant has been suspended from the association (except where MLS participation withoutassociation membership is permitted by law) or MLS (or both) for failure to pay appropriatedues, fees, or charges, an association MLS is not obligated to provide MLS services, includingcontinued inclusion of the suspended participant’s listings in the MLS compilation of currentlisting information. Prior to any removal of a suspended participant’s listings from the MLS, thesuspended participant should be advised, in writing, of the intended removal so that thesuspended participant may advise his clients.Section 1.14 Listing of Expelled Participants. When a participant of the service is expelledfrom 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 obligationsexcept failure to pay appropriate dues, fees, or charges), all listings currently filed with the MLSSIMLS Inc. Rules and Regulations – Approved by MLS BOD 3-8-20164

by the expelled 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 terminationdate of the listing agreement in effect when the expulsion became effective. If a participant hasbeen expelled from the association (except where MLS participation without associationmembership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees, orcharges, an association MLS is not obligated to provide MLS services, including continuedinclusion of the expelled participant’s listings in the MLS compilation of current listinginformation. Prior to any removal of an expelled participant’s listings from the MLS, theexpelled participant should be advised, in writing, of the intended removal so that the expelledparticipant may advise his clients.Section 1.15 Listing of Resigned Participants. When a participant resigns from the MLS, theMLS is not obligated to provide services, including continued inclusion of the resignedparticipant’s listings in the MLS compilation of current listing information. Prior to any removalof a resigned participant’s listings from the MLS, the resigned participant should be advised, inwriting, of the intended removal so that the resigned participant may advise his clients.Selling ProceduresSection 2. Showings and Negotiations. Appointments for showings and negotiations with theseller for the purchase of listed property filed with the multiple listing service shall be conductedthrough the listing broker, except under the following circumstances:a. the listing broker gives the cooperating broker specific authority to show and/ornegotiate directly, orb. after reasonable effort, the cooperating broker cannot contact the listing broker or hisrepresentative; however, the listing broker, at his option, may preclude such directnegotiations by cooperating brokers. (Amended 4/92)Section 2.1 Presentation of Offers. The listing broker must make arrangements to present theoffer as soon as possible, or give the cooperating broker a satisfactory reason for not doing so.(Amended 4/92)Section 2.2 Submission of Written Offers. The listing broker shall submit to the seller allwritten offers until closing unless precluded by law, government rule, regulation, or agreedotherwise in writing between the seller and the listing broker. Unless the subsequent offer iscontingent upon the termination of an existing contract, the listing broker shall recommend thatthe seller obtain the advice of legal counsel prior to acceptance of the subsequent offer.Participants representing buyers or tenants shall submit to the buyer or tenant all offers andcounter-offers until acceptance, and shall recommend that buyers and tenants obtain legal advicewhere there is a question about whether a pre-existing contract has been terminated. (Amended11/05)SIMLS Inc. Rules and Regulations – Approved by MLS BOD 3-8-20165

Section 2.3 Right of Cooperating Broker in Presentation of Offer. The cooperating broker(subagent, broker agent or buyer agent) or his representative has the right to participate in thepresentation to the seller or lessor of any offer he secures to purchase or lease. He does not havethe right to be present at any discussion or evaluation of that offer by the seller or lessor and thelisting broker. However, if the seller or lessor gives written instructions to the listing broker thatthe 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 or lessor’s written instructions. Noneof the foregoing diminishes the listing broker’s right to control the establishment ofappointments for such presentations. (Amended 4/92)The fine for failure to comply with Section 2.3 - 2,500.00Section 2.4 Right of Listing Broker in Presentation of Counter-offer. The listing broker orhis representative has the right to participate in the presentation of any counter-offer made by theseller or lessor. He does not have the right to be present at any discussion or evaluation of acounter-offer by the purchaser or lessee (except when the cooperating broker is a subagent).However, if the purchaser or lessee gives written instructions to the cooperating broker that thelisting broker not be present when a counter- offer is presented, the listing broker has the right toa copy of the purchaser’s or lessee’s written instructions. (Adopted 11/93)The fine for failure to comply with Section 2.4 - 2,500.00Section 2.5 Reporting Sales to the Service. Status changes, including final closing of sales andsale prices, shall be reported to the multiple listing service by the listing broker within 24 hoursafter they have occurred. If negotiations were carried on under Section 2 a. or b. hereof, thecooperating broker shall report accepted offers and prices to the listing broker within 24 hoursafter occurrence and the listing broker shall report them to the MLS within 24 hours afterreceiving notice from the cooperating broker. (Amended 11/08)The fine for failure to comply with Section 2.5 - Acceptance 250.00, other Status 100.00Note 1: The listing agreement of a property filed with the MLS by the listing broker should include aprovision expressly granting the listing broker authority to advertise; to file the listing with the MLS; toprovide timely notice of status changes of the listing to the MLS; and to provide sales informationincluding selling price to the MLS upon sale of the property. If deemed desirable by the MLS to publishsales information prior to final closing (settlement) of a sales transaction, the listing agreement shouldalso include a provision expressly granting the listing broker the right to authorize dissemination of thisinformation by the MLS to its participants.Note 2: In disclosure states, if the sale price of a listed property is recorded, the reporting of the sale pricemay be required by the MLS.The MLS may provide sale price information to governmental bodies only to be used forstatistical purposes (including use of aggregated data for purposes of valuing property)and to confirm the accuracy of information submitted by property owners or theirSIMLS Inc. Rules and Regulations – Approved by MLS BOD 3-8-20166

representatives in connection with property valuation challenges; and to third-partyentities only to be used for academic research, statistical analysis, or for providingservices to participants and subscribers. In any instance where a governmental body orthird-party entity makes sale price information provided by the MLS available other thanas provided for in this provision, a listing participant may request the sale priceinformation for a specific property be withheld from dissemination for these purposeswith written authorization from the seller, and withholding of sale price information fromthose entities shall not be construed as a violation of the requirement to report sale prices.Note 3: As established in the Virtual Office Website (“VOW”) policy, sale prices can only be categorizedas confidential in states where the actual sale prices of completed transactions are not accessible frompublic records.)Section 2.6 Reporting Resolution of Contingencies. The listing broker shall report to themultiple listing service within twenty-four (24) hours that a contingency on file with the multiplelisting service has been fulfilled or renewed, or the agreement cancelled.The fine for failure to comply with Section 2.6 - 100.00Section 2.7 Advertising of Listings Filed with the Service. A listing shall not be advertised byany participant other than the listing broker without the prior consent of the listing broker.The fine for failure to comply with Section 2.7 - 1,000.00Section 2.8 Reporting Cancellation of Pending Sale. The listing broker shall reportimmediately to the multiple listing service the cancellation of any pending sale, and the listingshall be reinstated immediately.The fine for failure to comply with Section 2.8 - 250.00Section 2.9 Disclosing the Existence of Offers. Listing brokers, in response to inquiries frombuyers or cooperating brokers, shall, with the seller’s approval, disclose the existence of offerson the property. Where disclosure is authorized, the listing broker shall also disclose, if asked,whether offers were obtained by the listing licensee, by another licensee in the listing firm, or bya cooperating broker. (Adopted 11/05)Section 2.10 Availability of Listed Property. Listing brokers shall not misrepresent theavailability of access to show or inspect listed property. (Adopted 11/05)The fine for failure to comply with Section 2.10 - 250.00SIMLS Inc. Rules and Regulations – Approved by MLS BOD 3-8-20167

Refusal to SellSection 3 Refusal to Sell. If the seller of any listed property filed with the multiple listingservice refuses to accept a written offer satisfying the terms and conditions stated in the listing,such fact shall be transmitted immediately to the service and to all participants.ProhibitionsSection 4 Information for Participants Only. Any listing filed with the service shall not bemade available to any broker or firm not a member of the MLS without the prior consent of thelisting broker.Section 4.1 For Sale Signs. Only the For Sale sign of the listing broker may be placed on aproperty. (Amended 11/89)The fine for failure to comply with Section 4.1 - 250.00Section 4.2 Sold Signs. Prior to closing, only the sold sign of the listing broker may be placedon a property, unless the listing broker authorizes the cooperating (selling) broker to post such asign. (Amended 4/96)The fine for failure to comply with Section 4.2 - 250.00Section 4.3 Solicitation of Listing Filed with the Service. Participants shall not solicit a listingon property filed with the service unless such solicitation is consistent with Article 16 of theREALTORS ’ Code of Ethics, its Standards of Practice, and its Case Interpretations.Note: This section is to be construed in a manner consistent with Article 16 of the Code of Ethicsand particularly Standard of Practice 16-4 (REALTORS shall not solicit a listing which iscurrently listed exclusively with another broker. However, if the listing broker, when asked by theREALTOR , refuses to disclose the expiration date and nature of such listing; i.e., an exclusiveright to sell, an exclusive agency, open listing, or other form of contractual agreement betweenthe listing broker and the client, the REALTOR may contact the owner to secure such informationand may discuss the terms upon which the REALTOR might take a future listing or, alternatively,may take a listing to become effective upon expiration of any existing exclusive listing.(Amended 1/94)). This section is intended to encourage sellers to permit their properties to befiled with the service by protecting them from being solicited, prior to expiration of the listing, bybrokers and salespersons seeking the listing upon its expiration.Without such protection, a seller could receive hundreds of calls, communications, and visitsfrom brokers and salespersons who have been made aware through MLS filing of the date thelisting will expire and desire to substitute themselves for the present broker.SIMLS Inc. Rules and Regulations – Approved by MLS BOD 3-8-20168

This section is also intended to encourage brokers to participate in the service by assuring themthat other participants will not attempt to persuade the seller to breach the listing agreement or tointerfere with their attempts to market the property. Absent the protection afforded by thissection, listing brokers would be most reluctant to generally disclose the identity of the seller orthe availability of the property to other brokers.This section does not preclude solicitation of listings under the circumstances otherwiserecognized by the Standards of Practice related to Article 16 of the Code of Ethics.Section 4.4 Use of the Terms MLS and Multiple Listing Service. No MLS participant,subscriber, or licensee affiliated with any participant shall, through the name of their firm, theirURLs, their e-mail addresses, their website addresses, or in any other way represent, suggest, orimply that the individual or firm is an MLS, or that they operate an MLS. Participants,subscribers and licensees affiliated with participants shall not represent, suggest, or imply thatconsumers or others have direct access to MLS databases, or that consumers or others are able tosearch MLS databases available only to participants and subscribers. This does not prohibitparticipants and subscribers from representing that any information they are authorized underMLS rules to provide to clients or customers is available on their websites or otherwise.(Adopted 11/07)Division of CommissionsSection 5 Compensation Specified on Each Listing. The listing broker shall specify, on eachlisting filed with the multiple listing service, the compensation offered to other multiple listingservice participants for their services in the sale of such listing. Such offers are unconditionalexcept that entitlement to compensation is determined by the cooperating broker’s performanceas the procuring cause of the sale (or lease) or as otherwise provided for in this rule. The listingbroker’s obligation to compensate any cooperating broker as the procuring cause of the sale (orlease) may be excused if it is determined through arbitration that, through no fault of the listingbroker and in the exercise of good faith and reasonable care, it was impossible or financiallyunfeasible for the listing broker to collect a commission pursuant to the listing agreement. Insuch instances, entitlement to cooperative compensation offered through MLS would be aquestion to be determined by an arbitration hearing panel based on all relevant facts andcircumstances including, but not limited to, why it was impossible or financially unfeasible forthe listing broker to collect some or all of the commission established in the listing agreement; atwhat point in the transaction did the listing broker know (or should have known) that some or allof the commission established in the listing agreement might not be paid; and how promptly hadthe listing broker communicated to cooperating brokers that the commission established in thelisting agreement might not be paid. (Amended 11/98)In filing a property with the multiple listing service of an association of REALTORS , theparticipant of the service is making blanket unilateral offers of compensation to the other MLSparticipants, and shall therefore specify on each listing filed with the service, the compensationbeing offered to the other MLS participants. Specifying the compensation on each listing isSIMLS Inc. Rules and Regulations – Approved by MLS BOD 3-8-20169

necessary, because the cooperating broker has the right to know what his compensation shall beprior to his endeavor to sell.* (Amended 11/96)*The compensation specified on listings filed with the multiple listing service shall appear in one of two forms. Theessential and appropriate requirement by an association multiple listing service is that the information to bepublished 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 submitting an offer to purchase. Thecompensation 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 price2. by showing a definite dollar amount (Amended 5/10)The listing broker, with the informed consent of the seller/landlord (under NY State law), retainsthe right to determine the amount of compensation offered to other participants (acting assubagents, buyer agents, or in other agency or non-agency capacities defined by law) which maybe the same or different. (Amended 11/96)This shall not preclude the listing broker from offering any MLS participant compensation otherthan the compensation indicated on any listing published by the MLS, provided the listing brokerinforms the other broker, in writing, in advance of submitting an offer to purchase, and providedthat the modification in the specified compensation is not the result of any agreement among allor any other participants in the service. Any superseding offer of compensation must be expressedas either a percentage of the gross sales price or as a flat dollar amount. (Amended 5/10)Note 1: The multiple listing service shall not have a rule requiring the listing broker to disclosethe amount of total negotiated commission in his listing contract, and the association multiplelisting service shall not publish the total negotiated commission on a listing which has beensubmitted to the MLS by a participant. The association multiple listing service shall not disclosein any way the total commission negotiated between the seller and the listing broker.Note 2: The listing broker may, from time to time, adjust the compensation offered to othermultiple listing service participants for their services with respect to any listing by advancepublished notice to the service so that all participants will be advised. (Amended 4/92)Note 3: The multiple listing service shall make no rule on the division of commissions betweenparticipants and nonparticipants. This should remain solely

SIMLS Inc. Rules and Regulations - Approved by MLS BOD 3-8-2016 2 The exclusive right-to-sell listing is the conventional form of listing submitted to the multiple listing service in that the seller authorizes the listing broker to cooperate with and to compensate

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