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On August 1, Canopy MLS implemented policy changes pursuant to the proposed NAR settlement agreement.
With these changes, the Canopy MLS Board of Directors approved four new violations to be enforced by Canopy MLS compliance staff.
- Making an offer of compensation within the MLS
The first new violation is for making an offer of compensation within the MLS, which is strictly prohibited.
Canopy MLS compliance staff use Listing Data Checker, an application designed to help multiple listing services validate the quality and accuracy of their data, and enforce corrections.
If the Listing Data Checker program identifies words such as, for example, “compensation,” “commission,” “bonus,” or “co-broke” in any MLS Remarks field or any other text fields, the listing will be flagged for review by the Canopy MLS compliance staff.
When a listing is flagged for review, Canopy MLS compliance staff will also check the listing for other violations, which could include things like:
- Providing, in the MLS, a unique property code that agents can call or text which sends back to the cooperating agent an automated text communicating the offer of compensation.
- Uploading documents into the MLS (or ShowingTime) that reference offers of compensation.
- Linking to a specific listing with an offer of compensation on the listing brokerage’s website.
- Linking to a virtual tour that includes an offer of compensation.
Per the National Association of Realtors®, the MLS listing MAY link to the main homepage of the listing brokerage or agent’s website, or to a specific listing on the listing brokerage or agent’s website, or to a virtual tour, as long as there is no offer of compensation on the linked page. However, this link cannot appear in the Public Remarks.
Agents should review all of their listings for compliance.
Listing Data Checker integrates with Matrix and provides the “Listing Compliance Check” tool that highlights potential compliance issues so agents can correct them right away, to avoid a receiving a compliance notice.
Keywords used to detect potential violations are highlighted in RED, but whether there is an actual violation depends upon the context in which the keyword is used.
If Canopy MLS compliance staff determine that the listing includes an offer of compensation, a violation notification email will be sent to the listing agent, co-listing agent, and Member Participant of the listing brokerage, and Canopy MLS compliance staff will immediately remove the violating language from the listing.
For the remainder of 2024, Canopy MLS compliance staff will manage compensation violations as a warning with no fine attached. Beginning January 1, 2025 violations will carry an immediate $100 fine.
- Failure to provide required consumer disclosures; and
- Failure to enter into a written buyer agreement prior to touring a home.
These two new violations cannot be detected or identified automatically by Canopy MLS compliance staff. They are: Failure to provide required consumer disclosures; and Failure to enter into a written buyer agreement prior to touring a home.
NOTE: The disclosures referred in rule #2 above are in reference to the disclosures required under the NAR Settlement Agreement and which are already included in both NC and SC standard forms. These forms should not be attached to the MLS listing.
Potential violations of these two rules will be addressed if an alleged violation is reported to Canopy MLS compliance staff. Before submitting a complaint, Canopy MLS staff encourages Subscribers, whenever possible, to report violations to one another prior to initiating a Canopy MLS Violation Report.
However, if a complaint needs to be submitted, it should be in writing, with as much evidence and supporting documentation as possible. To report a violation, send an email to [email protected].
Anyone may report an alleged violation of the Canopy MLS Rules and Regulations. Canopy MLS compliance staff process all complaints received. When requested by a complainant, the MLS will process a complaint without revealing the complainant’s identity.
Canopy MLS compliance staff use Listing Data Checker to notify the respondent and the respondent’s Member Participant of the complaint and alleged violation.
If Canopy MLS compliance staff receive a report that the required consumer disclosures were not provided to a seller or buyer, or that a Subscriber failed to enter into a written buyer agreement prior to touring a home we will request documentation from the respondent to verify the validity of the complaint. Requested documentation must be provided to Canopy MLS within two business days or a $100 fine will be imposed.
If the documentation provided by the respondent demonstrates there is no violation, the matter is closed. If the respondent cannot provide the requested documentation to demonstrate compliance with the rule, then Canopy MLS will send a violation notice. A violation of these rules will be processed as a warning with no fine until the end of 2024. Beginning January 1, 2025 violations will carry an immediate $100 fine.
- Using MLS data or data feeds to establish a platform to make offers of compensation from multiple brokers
The fourth new violation is for using MLS data or data feeds to establish a platform to make offers of compensation from multiple brokers.
Under the terms of the NAR settlement, MLSs cannot create, facilitate, or support any non-MLS mechanism (including by providing listing information to an internet aggregator’s website for such purpose) for Participants, Subscribers, or sellers to make offers of compensation to buyer brokers or other buyer representatives.
However, the settlement does allow offers of compensation to be communicated on a broker IDX website, but only for the brokerage’s own listings.
Canopy MLS compliance staff regularly audit brokerage websites for compliance with the rules and policies that govern the display of listing data.
A violation of this rule will be enforced immediately and will result in the immediate suspension of the respondent’s access to any MLS data and data feeds until the violation is corrected. Beginning January 1, 2025 violations of this nature will also carry a $100 fine. For rule #4, the suspension of data feed is effective now, not January 1.
Enforcing these four new rules is new territory for everyone, including the Canopy MLS compliance staff, and the reason why fines for violations are not being imposed until the beginning of 2025. We ask for your patience and understanding as we all adapt to the changes.
Another rule to consider, which is not new, is that Canopy MLS Member Participants and Subscribers may not take legal action against another Member Participant or Subscriber for alleged Canopy MLS Rules and Regulations violation(s) unless the complaining Member Participant has first exhausted the remedies provided in the Canopy MLS Rules and Regulations.
It is vitally important that we hold each other accountable.
If you have any questions, please email [email protected] or call 704-940-3159, Opt. 4.
The Canopy MLS Compliance Program flyer provides additional information about the Canopy MLS Compliance Program.
For more information watch Stay in compliance with Canopy MLS or read Important reminders to help you stay compliant with MLS rules.
Finally, be sure to bookmark brokerrelations.canopyrealtors.com to access NAR proposed settlement resources, 2024 NC and SC forms information, Realtor® value resources, compliance education and more.
