An MLS by Any Other Name

Over the last month there has been a lot of information to digest in our industry. Unfortunately there has also been a lot of misinformation as well. There seems to be a lot of confusion about MLS, so lets see if I can clear some things up. Before I dive in, I do want to remind everyone that neither “multiple listing service” nor “MLS” are trademarked in the United states.

MLSs provide online platforms that compile home listings from brokerages in a given market. They enable agents to efficiently see available homes for sale and get helpful marketplace data and typically share listing information to national and local websites that advertise property information. There are many MLSs across the U.S., and each has its own rules to make sure its information is complete, accurate, and transparent.

Let’s begin with realtor association owned and operated MLS’s. These entities Can require REALTOR membership to Participate, or at local discretion, be available to nonmembers. The fees are determined locally and can include a differential for nonmember Participants. All Participants are required to follow MLS Rules and Regulations to help keep data complete, accurate, professional and organized.

Next we have Independent MLS (aka MLSs NOT owned and operated exclusively by a REALTOR Association). These entities had the option of opting into the NAR Settlement agreement and follow the established policy and practice changes, which would help to protect the MLS and Participants from future lawsuits. If an Independent MLS did not opt into the NAR Settlement Agreement, brokers are advised to consult their own legal counsel to assess any risks associated with using the service.

Finally, we have brokerage websites and real estate portals. These entities may obtain listing information from an MLS and other sources and can include market information, like trends and average prices. They may have their own established sets of rules and fees for membership.

MLSs allow real estate professionals to see, share, and promote homes for sale so they can be found by the largest pool of potential buyers. MLSs provide the most accurate, reliable, and detailed information about properties (both that have sold and are for sale), including listing price, address, features, disclosures, and square footage. MLSs also help promote fair housing and equal opportunity by giving real estate professionals and their clients access to consistent information.
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