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C.A.R. Legal Brief: Participation in Private MLS Clubs

 

Gavel3With the advent of the Internet and social networking, many REALTORS® have noticed the development of online private MLS groups, such as Producer’s Forum, that operate outside of the MLS.
 
Oftentimes, these private groups set up certain rules for membership such as requiring that the listings submitted through the club can be marketed exclusively to the club and kept off MLSs that only select individuals can participate and that offers of compensation meet certain minimums.Furthermore these same private group members are, for the most part, members of established MLSs governed by MLS rules and the REALTORS® Code of Ethics (COE).
 
In response to this growing trend of online private MLS groups, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) has developed a legal brief reminding agents and brokers of the various MLS and COE rules implicated by participation in these private MLSs, as well as the legal concerns and risks.
 
We encourage you to review this briefing document, found at the C.A.R. website at www.car.org/legal/mls/legal-brief-private-mls-clubs/, for specific guidance.
 
 
 
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