MLSLI Rules Violations – Beware!

Aug 09, 2019

There has been an increase in the number of listing agreements that either fail to include commission splits to cooperating brokers or contain different commission splits than indicated on Stratus.  These deficiencies may land you in an Administrative Review for potential MLSLI Rules violations.

MLSLI Rule 601.2 requires that commission splits with cooperating brokers be clearly stated on the listing agreement at the time it is signed by the owner(s). Rule 301.2 requires Participants to file with the MLS all information accurately.  Rule 501.16 requires the Participant to produce the listing agreement to the MLS for review within 24 hours of such request. 

The above MLSLI Rules taken together could cause an Administrative Review Panel to sanction a Participant for failure to state clearly on the listing agreement the cooperating broker commission split or to state a cooperating broker commission split different from that agreed to by the owner(s) on the listing agreement. 

Sanctions for MLSLI Rules violations range from a letter of warning, to a fine of up to $15,000.00, educational courses, or any combination thereof.  So, guide yourself accordingly!