With 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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