MLS Changes and the Clear Cooperation Policy: What REALTORS® Need to Know LEGAL UPDATE
Scott Peterson Legal Counsel, Colorado Association of REALTORS®
New Year, new you, Colorado REALTORS®! With the changing of the decades, we have some exciting new changes “coming soon to an MLS near you" (I couldn’t resist)! As most of you know, 2020 is going to be the first year of the mandatory adoption of NAR’s new “Clear Cooperation” Policy. While some of you will be blissfully unaffected in your marketing strategies, others will need to contemplate significant changes to their marketing plans. First, what is the Clear Cooperation Policy? As adopted, NAR’s new mandatory MLS policy says the following: “Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants.” Well, isn’t that nice and easy? A one-sentence policy from NAR? The only issue is that the definition of “marketing a property to the public” is very, very broad. According to NAR, “public marketing:” “includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, brokerage website displays (including IDX and VOW), digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public. (Adopted 11/19)” So… what does it all mean? Effectively, it will end the increasingly common practice of “coming soon” and/or “pocket listings” among MLS participants across the country. For some REALTORS®, this will be a significant shift in marketing practices. In other cases, it will force REALTORS® to have a broader discussion with sellers who request a little time, but want a little early exposure.
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