While the Code of Ethics establishes obligations that may be higher than those mandated by law or by RERA, in any instance where the Code of Ethics and the law or RERA conflict, the obligations of the law and/or RERA must take precedence.
An MLS Member broker / agent has a responsibility of fair practice to his clients, to the general public, and to fellow brokers. To that end, these Code-of-Ethics and Standards of Practice shall address an MLS Member’s conduct towards all these three important groups.
Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. MLS Members should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment. Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which MLS Members should dedicate themselves, and for which they should be diligent in preparing themselves. MLS Members, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow MLS Members a common responsibility for its integrity and honor.
In recognition and appreciation of their obligations to clients, customers, the public, and each other, MLS Members continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession. MLS Members having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate government authorities.
Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, MLS Members urge exclusive or non-exclusive representation of clients, but do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. In instances where their opinion is sought, or where MLS Members believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage or gain.
The term MLS Member has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal. In the interpretation of this obligation, MLS Members can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, “Whatsoever ye would that others should do to you, do ye even so to them.” Accepting this standard as their own, MLS Members pledge to observe its spirit in all of their activities whether conducted personally, through associates or others, or via technological means, and to conduct their business in accordance with the tenets set forth below.
When representing a buyer, seller, landlord, tenant, or other client as an agent, MLS Members pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve MLS Members of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-professional capacity, MLS Members remain obligated to treat all parties honestly.
Standard of Practice 1-1
MLS Members, when acting as principals in a real estate transaction, remain obligated by the duties imposed by the Code of Ethics.
Standard of Practice 1-2
The duties imposed by the Code of Ethics encompass all real estate-related activities and transactions whether conducted in person, electronically, or through any other means.
The duties the Code of Ethics imposes are applicable whether MLS Members are acting as agents or in legally recognized professional capacities except that any duty imposed exclusively on agents by law or regulation shall not be imposed by this Code of Ethics on MLS Members acting in non-professional capacities.
As used in this Code of Ethics, “client” means the person(s) or entity(ies) with whom a MLS Member or a MLS Member’s firm has a professional relationship; “customer” means a party to a real estate transaction who receives information, services, or benefits but has no contractual relationship with the MLS Member or the MLS Member’s firm; “prospect” means a purchaser, seller, tenant, or landlord who is not subject to a representation relationship with the MLS Member or MLS Member’s firm; “agent” or “broker” means a RERA registered individual or entity (including brokers and sales associates) acting in a professional relationship as defined by state law or regulation.
Standard of Practice 1-3
MLS Members, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.
Standard of Practice 1-4
MLS Members, when seeking to become a buyer/tenant representative, shall not mislead buyers or tenants as to savings or other benefits that might be realized through use of the MLS Member’s services.
Standard of Practice 1-5
MLS Members may represent the seller/landlord and buyer/tenant in the same transaction only after full disclosure to and with informed consent of both parties.
Standard of Practice 1-6
MLS Members shall submit offers and counter-offers objectively and as quickly as possible.
Standard of Practice 1-7
When acting as listing agents, MLS Members shall continue to submit to the seller/landlord all offers and counter-offers until a closing occurs or the execution of a lease unless the seller/landlord has waived this obligation in writing. MLS Members shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. MLS Members shall recommend that sellers/landlords obtain the advice of legal counsel prior to acceptance of a subsequent offer.
Standard of Practice 1-8
MLS Members, acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers and counter-offers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing. MLS Members, acting as agents or brokers of buyers/tenants, shall recommend that buyers/tenants obtain the advice of legal counsel if there is a question as to whether a pre-existing contract has been terminated.
Standard of Practice 1-9
The obligation of MLS Members to preserve confidential information provided by their clients in the course of any professional relationship as recognized by law continues after termination of the relationships. MLS Members shall not knowingly, during or following the termination of professional relationships with their clients:
Standard of Practice 1-10
MLS Members shall, consistent with the terms and conditions of their real estate registration & MLS Membership, and their property management agreement if applicable, competently manage the property of clients with due regard for the rights, safety, and health of tenants and others lawfully on the premises.
Standard of Practice 1-11
MLS Members who are employed to maintain or manage a client’s property shall exercise due diligence and make reasonable efforts to protect it against reasonably foreseeable contingencies and losses.
Standard of Practice 1-12
When entering into listing contracts / agreements, MLS Members must advise sellers / landlords of:
Standard of Practice 1-13
When entering into buyer/tenant agreements, MLS Members must advise potential clients of:
Standard of Practice 1-14
MLS Members, in response to inquiries from buyers or cooperating brokers shall, only with the sellers’ approval, disclose the existence of offers on the property. Where disclosure is authorized, MLS Members shall also disclose, if asked, whether offers were obtained by the listing broker, another broker in the listing firm, or by a cooperating broker.
MLS Members shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. MLS Members shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate broker relationship, or to disclose facts which are confidential under the scope of professional relationships.
Standard of Practice 2-1
MLS Members shall only be obligated to discover and disclose adverse factors reasonably apparent to someone with expertise in those areas required by their real estate regulatory authority. Article 2 does not impose upon the MLS Member the obligation of expertise in other professional or technical disciplines.
Standard of Practice 2-2
MLS Members shall not be parties to the naming of a false consideration in any document, unless it be the naming of an obviously nominal consideration.
Standard of Practice 2-3
Factors defined as “non-material” by law or regulation or which are expressly referenced in law or regulation as not being subject to disclosure are considered not “pertinent” for purposes of Article 2.
MLS Members shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker.
“Cooperating Compensation” is defined as the percentage of compensation which a listing agent is willing to share with the buyer’s agent upon the successful closing of a transaction with the buyer’s agent’s client. In India
Standard of Practice 3-1
MLS Members, acting as exclusive agents or brokers of sellers / landlords, shall establish the terms and conditions of offers to cooperate. Unless expressly indicated in offers to cooperate, cooperating brokers may not assume that the offer of cooperation includes an offer of compensation. Terms of compensation, if any, must be outlined in the MLS Listing of a property and shall be ascertained by cooperating brokers before beginning efforts to accept the offer of cooperation.
Standard of Practice 3-2
Any change in compensation offered for cooperative services must be communicated to the other MLS Member prior to the time that MLS Member submits an offer to purchase / lease the property. After an MLS Member has submitted an offer to purchase or lease property, the listing broker may not attempt to unilaterally modify the offered compensation with respect to that transaction.
Standard of Practice 3-3
Standard of Practice 3-2 does not preclude the listing broker and cooperating broker from entering into an agreement to change cooperative compensation. A modification to the cooperating compensation can be made if mutually agreed to in writing by both parties. Barring any written confirmation by both parties, the cooperating compensation which is listed in the MLS Listing of a property, must be honored in its entirety immediately upon the closing of the transaction.
Standard of Practice 3-4
MLS Members, acting as listing brokers, have an affirmative obligation to disclose the existence of dual or variable rate commission arrangements (i.e., listings where one amount of commission is payable if the listing broker’s firm is the procuring cause of sale/lease and a different amount of commission is payable if the sale/lease results through the efforts of the seller/landlord or a cooperating broker). The listing broker shall, as soon as practical, disclose the existence of such arrangements to potential cooperating brokers and shall, in response to inquiries from cooperating brokers, disclose the differential that would result in a cooperative transaction or 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.
Standard of Practice 3-5
It is the obligation of subagents to promptly disclose all pertinent facts to the principal’s agent prior to as well as after a purchase or lease agreement is executed.
Standard of Practice 3-6
MLS Members shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker inquiring for his clients.
Standard of Practice 3-7
MLS Members shall not misrepresent the availability of access to show or inspect a listed property.
Standard of Practice 3-8
MLS Members shall not provide access to listed property on terms other than those established by the owner or the listing broker.
Standard of Practice 3-9
The duty to cooperate established in Article 3 relates to the obligation to share information on listed property, and to make property available to other brokers for showing to prospective purchasers / tenants when it is in the best interests of sellers / landlords.
MLS Members shall not accept any commission, rebate, or profit on expenditures made for their client, without the client’s knowledge and consent.
When recommending real estate products or services (e.g., homeowner’s insurance, warranty programs, mortgage financing, etc.), MLS Members shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the MLS Member or his firm may receive as a direct result of such recommendation.
Standard of Practice 4-1
MLS Members shall not recommend or suggest to a client or a customer the use of services of another organization or business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion.
MLS Members shall keep in a special account in an appropriate financial institution, separated from their own funds, monies coming into their possession in trust for other persons, such as escrows, trust funds, clients’ monies, and other like items.
MLS Members, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing.
Standard of Practice 6-1
For the protection of all parties, MLS Members shall use reasonable care to ensure that documents pertaining to the purchase, sale, or lease of real estate are kept current through the use of written extensions or amendments.
Standard of Practice 6-2
When assisting or enabling a client or customer in establishing a contractual relationship (e.g., listing and representation agreements, purchase agreements, leases, etc.) electronically, MLS Members shall make reasonable efforts to explain the nature and disclose the specific terms of the contractual relationship being established prior to it being agreed to by a contracting party.
MLS Members shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. MLS Members shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.
Standard of Practice 7-1
When involved in the sale or lease of a residence, MLS Members shall not volunteer information regarding the racial, religious, or ethnic composition of any neighborhood, nor shall they engage in any activity which may result in panic selling, however, MLS Members may provide other demographic information.
Standard of Practice 7-2
When not involved in the sale or lease of a residence, MLS Members may provide demographic information related to a property, transaction or professional assignment to a party if such demographic information is (a) deemed by the MLS Member to be needed to assist with or complete, in a manner consistent with Article 7, a real estate transaction or professional assignment and (b) is obtained or derived from a recognized, reliable, independent, and impartial source. The source of such information and any additions, deletions, modifications, interpretations, or other changes shall be disclosed in reasonable detail.
Standard of Practice 7-3
MLS Members shall not print, display or circulate any statement or advertisement with respect to selling or renting of a property that indicates any preference, limitations, or discrimination based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.
Standard of Practice 7-4
As used in Article 7, “real estate employment practices” relates to employees and independent contractors providing real estate related services and the administrative and clerical staff directly supporting those individuals.
The services which MLS Members provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, land brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate.
MLS Members shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client.
Standard of Practice 8-1
When MLS Members prepare opinions of real property value or price they must:
unless a lack of any of these is disclosed to the party requesting the opinion in advance.
When an opinion of value or price is prepared other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, the opinion shall include the following unless the party requesting the opinion requires a specific type of report or different data set:
Standard of Practice 8-2
The obligations of the Code of Ethics in respect of real estate disciplines other than appraisal shall be interpreted and applied in accordance with the standards of competence and practice which clients and the public reasonably require to protect their rights and interests considering the complexity of the transaction, the availability of expert assistance, and, where the MLS Member is an agent or subagent, the obligations of a fiduciary.
Standard of Practice 8-3
When MLS Members provide consultive services to clients which involve advice or counsel for a fee (not a commission), such advice shall be rendered in an objective manner and the fee shall not be contingent on the substance of the advice or counsel given. If brokerage or transaction services are to be provided in addition to consultive services, a separate compensation may be paid with prior agreement between the client and MLS Member.
Standard of Practice 8-4
The competency required by Article 8 relates to services contracted for between MLS Members and their clients or customers; the duties expressly imposed by the Code of Ethics; and the duties imposed by law or regulation.
MLS Members shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. MLS Members shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional.
Standard of Practice 9-1
MLS Members may use the term “free” and similar terms in their advertising and in other representations provided that all terms governing availability of the offered product or service are clearly disclosed at the same time.
Standard of Practice 9-2
The offering of premiums, prizes, merchandise discounts or other inducements to list, sell, purchase, or lease is not, in itself, unethical even if receipt of the benefit is contingent on listing, selling, purchasing, or leasing through the MLS Member making the offer. However, MLS Members must exercise care and candor in any such advertising or other public or private representations so that any party interested in receiving or otherwise benefiting from the MLS Member’s offer will have clear, thorough, advance understanding of all the terms and conditions of the offer. The offering of any inducements to do business is subject to the limitations and restrictions of state law and the ethical obligations established by any applicable Standard of Practice.
Standard of Practice 9-3
MLS Members shall not offer for sale/lease or advertise property without authority. When acting as listing brokers or as subagents, MLS Members shall not quote a price different from that agreed upon with the seller/ landlord.
Standard of Practice 9-4
MLS Members shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that MLS Member’s firm in a reasonable and readily apparent manner either in the advertisement or in electronic advertising via a link to a display with all required disclosures.
Standard of Practice 9-5
Only MLS Members who participated in the transaction as the listing broker or cooperating broker (selling broker) may claim to have “sold” the property. Prior to closing, a cooperating broker may post a “sold” sign only with the consent of the listing broker.
Standard of Practice 9-6
The obligation to present a true picture in representations to the public includes information presented, provided, or displayed on MLS Members’ websites. MLS Members shall use reasonable efforts to ensure that information on their websites is current. When it becomes apparent that information on a MLS Member’s website is no longer current or accurate, MLS Members shall promptly take corrective action.
Standard of Practice 9-7
MLS Member firm websites shall disclose the firm’s name and state(s) of registration in a reasonable and readily apparent manner. Websites of MLS Members and non-members affiliated with a MLS Member firm shall disclose the firm’s name and that MLS Member’s or non-member’s state(s) of registration in a reasonable and readily apparent manner.
Standard of Practice 9-8
MLS Members’ obligation to present a true picture in their advertising and representations to the public includes Internet content posted, and the URLs and domain names they use, and prohibits MLS Members from:
Standard of Practice 9-9
MLS Members intending to share or sell consumer information gathered via the Internet shall disclose that possibility in a reasonable and readily apparent manner.
Standard of Practice 9-10
MLS Members shall not:
Standard of Practice 9-11
The obligation to present a true picture in advertising, marketing, and representations allows MLS Members to use and display only professional registrations, designations, certifications, and other credentials to which they are legitimately entitled.
MLS Members shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it.
If charged with unethical practice or asked to present evidence or to cooperate in any other way, in any professional standards proceeding or investigation, MLS Members shall place all pertinent facts before the proper tribunals of RERA or affiliated institute, society, or council in which membership is held and shall take no action to disrupt or obstruct such processes.
Standard of Practice 11-1
MLS Members shall not be subject to disciplinary proceedings in more than one RERA tribunal of MLS Members or affiliated institute, society, or council in which they hold membership / registration with respect to alleged violations of the Code of Ethics relating to the same transaction or event.
Standard of Practice 11-2
MLS Members shall not make any unauthorized disclosure or dissemination of the allegations, findings, or decision developed in connection with an ethics hearing or appeal or in connection with an arbitration hearing or procedural review.
Standard of Practice 11-3
MLS Members shall not obstruct RERA’s investigative or professional standards proceedings by instituting or threatening to institute actions for libel, slander, or defamation against any party to a professional standards proceeding or their witnesses based on the filing of an arbitration request, an ethics complaint, or testimony given before any tribunal.
Standard of Practice 11-4
MLS Members shall not intentionally impede RERA’s investigative or disciplinary proceedings by filing multiple ethics complaints based on the same event or transaction.
Each MLS Member is solely responsible for each property listing entered into IndiaMLS by the MLS Member. MLS Members must ensure their property listings are completely accurate and statuses are current and up-to-date at all times.
Standard of Practice 12-1
Any errors or false representations being displayed on the listing will fall under the sole liability of the MLS Member whose MLS ID is shown as the listing agent, regardless of who (administrative assistants, fellow brokers, etc.) physically entered the listing into IndiaMLS. All facts, descriptions, and related pictures associated with the property listing must be accurate.
Standard of Practice 12-2
In the event a listing status changes, for example from Active to Sold or to Under Contract, the listing must be updated within no more than 48 hours of an event which causes the status to change, such as an executed agreement, the delivery / receipt of a token deposit, etc.
If the listing status of a property listing entered into the MLS system is not updated within the required timeframe of 48 hours, the MLS Member can and may be subject to disciplinary action and/or a monetary fine by IndiaMLS. Until all fines are cleared, access to IndiaMLS can be suspended. Multiple infractions of this policy can be grounds of permanent termination of membership into IndiaMLS.
Standard of Practice 12-3
MLS Members are prohibited from entering false or fake property listings into IndiaMLS. In the event, an MLS Member is found to have entered a “fake” listing into IndiaMLS, he/she will be subject to disciplinary action and/or a monetary fine by IndiaMLS. Until all fines are cleared, access to IndiaMLS can be suspended. Multiple infractions of this policy can be grounds of permanent termination of membership into IndiaMLS.
MLS Members shall not knowingly or recklessly make false or misleading statements about other real estate professionals, their businesses, or their business practices.
Standard of Practice 13-1
MLS Members shall not knowingly or recklessly file false or unfounded ethics complaints.
Standard of Practice 13-2
The obligation to refrain from making false or misleading statements about other real estate professionals, their businesses, and their business practices includes the duty to not knowingly or recklessly publish, repeat, retransmit, or republish false or misleading statements made by others. This duty applies whether false or misleading statements are repeated in person, in writing, by technological means (e.g., the Internet), or by any other means.
Standard of Practice 13-3
The obligation to refrain from making false or misleading statements about other real estate professionals, their businesses, and their business practices includes the duty to publish a clarification about or to remove statements made by others on electronic media the MLS Member controls once the MLS Member knows the statement is false or misleading.
MLS Members shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other MLS Members have with clients.
Standard of Practice 14-1
Article 14 is not intended to prohibit aggressive or innovative business practices which are otherwise ethical and does not prohibit disagreements with other MLS Members involving commission, fees, compensation or other forms of payment or expenses.
Standard of Practice 14-2
Article 14 does not preclude MLS Members from making general announcements to prospects describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another MLS Member. A general telephone canvass, general mailing or distribution addressed to all prospects in a given geographical area or in a given profession, business, club, or organization, or other classification or group is deemed “general” for purposes of this standard.
Article 14 is intended to recognize as unethical two basic types of solicitations:
First, telephone or personal solicitations of property owners who have been identified by a real estate sign, multiple listing compilation, or other information service as having exclusively listed their property with another MLS Member, and
Second, mail or other forms of written solicitations of prospects whose properties are exclusively listed with another MLS Member when such solicitations are not part of a general mailing but are directed specifically to property owners identified through compilations of current listings, “for sale” or “for rent” signs, or other sources of information required by Article 3 and Multiple Listing Service rules to be made available to other MLS Members under offers of cooperation.
Standard of Practice 14-3
Article 16 does not preclude MLS Members from contacting the client of another broker for the purpose of offering to provide, or entering into a contract to provide, a different type of real estate service unrelated to the type of service currently being provided (e.g., property management as opposed to brokerage) or from offering the same type of service for property not subject to other brokers’ exclusive agreements. However, information received through a Multiple Listing Service or any other offer of cooperation may not be used to target clients of other MLS Members to whom such offers to provide services may be made.
Standard of Practice 14-4
MLS Members shall not solicit a property listing which is currently listed exclusively with another broker.
Standard of Practice 14-5
MLS Members shall not solicit buyer / tenant agreements from buyers / tenants who are subject to exclusive buyer / tenant agreements.
Standard of Practice 14-6
When MLS Members are contacted by the client of another MLS Member regarding the creation of an exclusive relationship to provide the same type of service, and MLS Members have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement or, alternatively, may enter into an agreement which becomes effective upon expiration of any existing exclusive agreement.
Standard of Practice 14-7
The fact that a prospect has retained an MLS Member as an exclusive representative or exclusive broker in one or more past transactions does not preclude other MLS Members from seeking such prospect’s future business.
Standard of Practice 14-8
The fact that an exclusive agreement has been entered into with a MLS Member shall not preclude or inhibit any other MLS Member from entering into a similar agreement after the expiration of the prior agreement.
Standard of Practice 14-9
MLS Members, prior to entering into a representation agreement, have an affirmative obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same type of real estate service.
Standard of Practice 14-10
MLS Members, acting as buyer or tenant representatives or brokers, shall disclose that relationship to the seller/landlord’s representative or broker at first contact and shall provide written confirmation of that disclosure to the seller/landlord’s representative or broker not later than execution of a purchase agreement or lease.
Standard of Practice 14-11
On unlisted property, MLS Members acting as buyer/tenant representatives or brokers shall disclose that relationship to the seller/landlord at first contact for that buyer/tenant and shall provide written confirmation of such disclosure to the seller/landlord not later than execution of any purchase or lease agreement.
MLS Members shall make any request for anticipated compensation from the seller/landlord at first contact.
Standard of Practice 14-12
MLS Members, acting as representatives or brokers of sellers / landlords or as subagents of listing brokers, shall disclose that relationship to buyers / tenants as soon as practicable and shall provide written confirmation of such disclosure to buyers / tenants not later than execution of any purchase or lease agreement.
Standard of Practice 14-13
All dealings concerning property exclusively listed, or with buyer / tenants who are subject to an exclusive agreement shall be carried on with the client’s representative or broker, and not with the client, except with the consent of the client’s representative or broker or except where such dealings are initiated by the client.
Before providing substantive services (such as writing a purchase offer or presenting a CMA) to prospects, MLS Members shall ask prospects whether they are a party to any exclusive representation agreement. MLS Members shall not knowingly provide substantive services concerning a prospective transaction to prospects who are parties to exclusive representation agreements, except with the consent of the prospects’ exclusive representatives or at the direction of prospects.
Standard of Practice 14-14
MLS Members are free to enter into contractual relationships or to negotiate with sellers / landlords, buyers / tenants or others who are not subject to an exclusive agreement but shall not knowingly obligate them to pay more than one commission except with their informed consent.
Standard of Practice 14-15
In cooperative transactions MLS Members shall compensate cooperating MLS Member and shall not compensate nor offer to compensate, directly or indirectly, any of staff members (including sales staff) employed by or affiliated with other MLS Members without the prior express knowledge and consent of the cooperating broker.
Standard of Practice 14-16
MLS Members, acting as subagents or as buyer / tenant representatives or brokers, shall not attempt to extend a listing broker’s offer of cooperation and/or compensation to other brokers without the consent of the listing broker.
Standard of Practice 14-17
MLS Members shall not use information obtained from listing brokers through offers to cooperate made through multiple listing services or through other offers of cooperation to refer listing brokers’ clients to other brokers or to create buyer / tenant relationships with listing brokers’ clients, unless such use is authorized by listing brokers.
Standard of Practice 14-18
Signs giving notice of property for sale, rent, lease, or exchange shall not be placed on property without consent of the seller/landlord.
Standard of Practice 14-19
MLS Members, prior to or after their relationship with their current firm is terminated, shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm in order to move their business to their new firm.
In the event of contractual disputes or specific non-contractual disputes as defined in Standard of Practice 15-4 between MLS Members (principals) associated with different firms, arising out of their relationship as MLS Members, the MLS Members shall mediate the dispute if RERA requires its members to mediate. If the dispute is not resolved through mediation, or if mediation is not required, MLS Members shall submit the dispute to arbitration in accordance with the policies of RERA rather than litigate the matter.
In the event clients of MLS Members wish to mediate or arbitrate contractual disputes arising out of real estate transactions, MLS Members shall mediate or arbitrate those disputes in accordance with the policies of RERA, provided the clients agree to be bound by any resulting agreement or award.
The obligation to participate in mediation and arbitration contemplated by this Article includes the obligation of MLS Members to cause their firms to mediate and arbitrate and be bound by any resulting agreement or award.
Standard of Practice 15-1
The filing of litigation and refusal to withdraw from it by MLS Members in an arbitrable matter constitutes a refusal to arbitrate.
Standard of Practice 15-2
Article 15 does not require MLS Members to mediate in those circumstances when all parties to the dispute advise RERA in writing that they choose not to mediate through RERA’s facilities. The fact that all parties decline to participate in mediation does not relieve MLS Members of the duty to arbitrate.
Article 15 does not require MLS Members to arbitrate in those circumstances when all parties to the dispute advise RERA in writing that they choose not to arbitrate before RERA.
Standard of Practice 15-3
MLS Members, when acting solely as principals in a real estate transaction, are not obligated to arbitrate disputes with other MLS Members absent a specific written agreement to the contrary.
Standard of Practice 15-4
Specific non-contractual disputes that are subject to arbitration pursuant to Article 15 are:
Standard of Practice 15-5
The obligation to arbitrate established in Article 14 includes disputes between MLS Members in different states in instances where, absent an established inter-association arbitration agreement, the MLS Member requesting arbitration agrees to submit to the jurisdiction of, travel to, participate in, and be bound by any resulting award rendered in arbitration conducted by the respondent(s) MLS Member’s association, in instances where the respondent(s) MLS Member’s association determines that an arbitrable issue exists.
The reader should be aware of the following policies which have been approved by RERA and the Association of Registered Brokers: In filing a charge of an alleged violation of the Code of Ethics by an MLS Member, the charge must read as an alleged violation of one or more Articles of the Code. Standards of Practice may be cited in support of the charge.
The Standards of Practice serve to clarify the ethical obligations imposed by the various Articles and supplement, and do not substitute for, the Case Interpretations in Interpretations of the Code of Ethics.
Modifications to existing Standards of Practice and additional new Standards of Practice are approved from time to time. Readers are cautioned to ensure that the most recent publications are utilized.