BYLAWS

Revised June 2024

Organized as Unincorporated Association January 25……………..…………….1922

Chartered by National Association of REALTORS® May 30……….…………..1922

Revised……………………………………………………………………………1939

Revised…………………………………………………………………….. …….1940

Revised……………………………………………………………………………1951

Articles of Incorporation November 28…………………………………………..1966

Revised…………………………………………………………………....………1973

Revised……………………………………………………………………………1973

Revised……………………………………………………………………………1974

Name Changed to HUMBOLDT COUNTY BOARD OF REALTORS®, INC…1975

Revised……………………………………………………………………………1975

Revised……………………………………………………………………………1977

Revised……………………………………………………………………………1978

Revised……………………………………………………………………………1980

Revised……………………………………………………………………………1985

Revised……………………………………………………………………………1987

Revised……………………………………………………………………………1988

Revised……………………………………………………………………………1989

Revised……………………………………………………………………………1990

Revised……………………………………………………………………………1994

Revised……………………………………………………………………………1996

Revised……………………………………………………………………………1998

Name Changed to HUMBOLDT ASSOCIATION OF REALTORS®, INC…….2000

Revised……………………………………………………………………………2000

Revised……………………………………………………………………………2003

Revised……………………………………………………………………………2003

Revised…………………………………………………………………………....2004

Revised……………………………………………………………………………2005

Revised……………………………………………………………………………2007

Revised……………………………………………………………………………2008

Revised……………………………………………………………………………2012

Revised……………………………………………………………………………2013

Revised……………………………………………………………………………2014

Revised……………………………………………………………………………2017

Revised……………………………………………………………………………2019

Revised……………………………………………………………………………2020

Revised……………………………………………………………………………2022

Revised……………………………………………………………………………2023

Revised……………………………………………………………………………2024

TABLE OF CONTENTS

ARTICLE I - NAME

Section 1. Name

Section 2. REALTOR® Membership Mark in Name of Association

ARTICLE II - OBJECTIVES

Section 1. Objectives

ARTICLE III - NATIONAL AND STATE MEMBERSHIPS

Section 1. Association Membership in N.A.R. and C.A.R

Section 2. Ownership and Use of REALTOR® Membership Marks

Section 3. Adoption & Enforcement of N.A.R. Code of Ethics; Compliance with N.A.R. & C.A.R. Governing Documents & Policies

Section 4. Other Association Rules, Regulations & Policies

ARTICLE IV - JURISDICTION

Section 1. Description of Jurisdiction

Section 2. Jurisdictional Rights

ARTICLE V - MEMBERSHIP, QUALIFICATION, APPLICATION AND ACCEPTANCE

Section 1. Classes of Membership

Section 2. Qualifications of REALTOR® Members

Section 3. Qualifications of Institute Affiliate Members

Section 4. Qualifications of Affiliate Members

Section 5. Qualifications of Public Service Members

Section 6. Qualifications of Honorary Members

Section 7. Qualifications of Student Members

Section 8. Membership Application

Section 9. Prior Membership Records

Section 10. Application Review and Acceptance

Section 11. New Member Code of Ethics

Section 12. Continuing Member Code of Ethics Training

Section 13. Status Changes

Section 14. Resignation

ARTICLE VI - PRIVILEGES AND DUTIES OF MEMBERSHIP

Section 1. Member Compliance with Bylaws, Policies, Rules and Regulations

Section 2. Member Discipline/Harassment Policy

Section 3. Resignation with Pending Arbitration or Disciplinary Hearing

Section 4. Voting Rights and Eligibility for Elective Office

Section 5. Privileges and Duties of REALTOR® Members

Section 6. Privileges and Duties of Institute Affiliate Members

Section 7. Privileges and Duties of Affiliate Members

Section 8. Privileges and Duties of Public Service Members

Section 9. Privileges and Duties of Honorary Members

Section 10. Privileges and Duties of Student Members

Section 11. Certification by "Designated" REALTOR®

ARTICLE VII - PROFESSIONAL STANDARDS AND ARBITRATION

Section 1. Professional Standards and Arbitration

Section 2. Member Compliance with N.A.R. and C.A.R. Constitution, Bylaws, Policies, Rules, Regulations, and Code of Ethics

ARTICLE VIII - USE OF THE TERMS REALTOR® AND REALTORS®

Section 1. Use and Control of REALTOR® Membership Marks

Section 2. Jurisdictional Limits on Use of REALTOR® Membership Marks

Section 3. Use of REALTOR® Membership Marks

Section 4. Institute Affiliate Members Ineligible to Use REALTOR®Membership Marks

ARTICLE IX - DUES AND ASSESSMENTS

Section 1. Application Fee

Section 2. Dues and Assessments

Section 3. Dues and Assessments Payable

Section 4. Nonpayment of Financial Obligations

Section 5. Reinstatement After Termination for Nonpayment of Financial Obligations

Section 6. Deposit

Section 7. Notice of Delinquent Dues, Fees, Fines, Assessments and Other Financial Obligations of Members

ARTICLE X - OFFICERS AND DIRECTORS

Section 1. Elected Officers

Section 2. Appointed Officers

Section 3. Powers and Duties of Officers

Section 4. Board of Directors

Section 5. Powers and Duties of the Board of Directors

Section 6. Election of Officers and Directors

Section 7. Vacancies

Section 8. Removal of Officers and Directors

Section 9. Expenditures

ARTICLE XI - MEETINGS

Section 1. Annual Meetings

Section 2. Meetings of Directors

Section 3. Meetings of Members

Section 4. Notice of Meetings

Section 5. Quorum

Section 6. Action without a Meeting

ARTICLE XII - COMMITTEES

Section 1. Standing Committees

Section 1.5 Discretionary Committees

Section 2. Sub Committees, Task Forces or Work Groups

Section 3. Term of Committee Appointments

Section 4.  Organization

Section 5. President

Section 6. Treasurer

Section 7. Removal

ARTICLE XIII - FISCAL AND ELECTIVE YEAR

Section 1. Fiscal Year

Section 2. Elective Year

ARTICLE XIV - RULES OF ORDER

Section 1. Robert's Rules of Order

ARTICLE XV - AMENDMENTS

Section 1. Amendment

Section 2. Notice

Section 3. Approval of Amendments by N.A.R.

ARTICLE XVI - DISSOLUTION

Section 1. Dissolution

ARTICLE XVII - MULTIPLE LISTING SERVICE

Section 1. Authority and Governing MLS Rules

Section 2. Purpose

Section 3. MLS Committee

Section 4. Access to Comparable and Statistical Information

ARTICLE XVIII - DECLARATION OF NON-DISCRIMINATION

Section 1. Declaration of Non-Discrimination

ARTICLE XVIII – POLITICAL ADVOCACY

Section 1. – Board Endorsement Policy

BYLAWS OF THE

Humboldt Association of REALTORS®, Incorporated

(Adopted June 6, 2024)

ARTICLE I - NAME

Section 1.  Name.  The name of this organization shall be the Humboldt Association of REALTORS®, Incorporated (hereinafter referred to as “H.A.R.” or “Association”).  The term “Association” is used when referring to any Association of REALTORS®).

Section 2.  REALTOR® Membership Mark in Name of Association.  Inclusion and retention of the registered collective membership mark "REALTORS^®" in the name of the H.A.R.  shall be governed by the Constitution and Bylaws of the NATIONAL ASSOCIATION OF REALTORS^® (hereinafter "N.A.R.") as from time to time amended.

ARTICLE II - OBJECTIVES

Section 1.  Objectives.  The objectives of the H.A.R. are:

(a) To unite those engaged in the recognized branches of the real estate profession for the purpose of exerting a beneficial influence upon the profession and related interests.  The "recognized branches of the real estate profession" include buying, selling, exchanging, renting or leasing, managing, counseling, appraising for others for compensation, building, developing or subdividing real estate.

(b) To promote and maintain high standards of conduct in the real estate profession as expressed in the Code of Ethics of N.A.R. (hereinafter “Code of Ethics”).

(c) To provide a unified medium for real estate owners and those engaged in the real estate profession whereby their interests may be safeguarded and advanced.

(d) To further the interests of home and other real property ownership.

(e) To unite those engaged in the real estate profession in this community with the CALIFORNIA ASSOCIATION OF REALTORS^® (hereinafter "C.A.R.") and N.A.R. thereby furthering their own objectives throughout the state and nation, and obtaining the benefits and privileges of membership therein.

(f) To designate, for the benefit of the public, those individuals within the state of California authorized to use the terms REALTOR^® and REALTORS^® as licensed, prescribed, and controlled by N.A.R.

ARTICLE III - NATIONAL AND STATE MEMBERSHIPS

Section 1. Association Membership in N.A.R. and C.A.R.  The H.A.R. shall be a member of N.A.R. and C.A.R. as defined in the governing documents of N.A.R. and C.A.R.  By reason of the H.A.R.'s membership in N.A.R. and C.A.R., each REALTOR^® member of the H.A.R. shall be entitled to membership in N.A.R. and C.A.R. without further payment of dues.  The H.A.R. shall continue as a member of N.A.R. and C.A.R., unless by a majority vote of all of its REALTOR^® members the decision is made to withdraw, in which case N.A.R. and C.A.R. shall be notified in writing at least one month in advance of the date designated for the termination of the H.A.R.’s membership.

Section 2. Ownership and Use of REALTOR^® Membership Marks.  The H.A.R. recognizes the exclusive property rights of N.A.R. in the terms REALTOR^® and REALTORS^®.  The H.A.R. may use the terms while it is a member in good standing of N.A.R.  The H.A.R. shall discontinue use of the terms in any form in its name, upon ceasing to be a member of N.A.R., or upon a determination by the Board of Directors of N.A.R. that it has violated the conditions imposed upon use of the terms.

Section 3. Adoption & Enforcement of N.A.R. Code of Ethics; Compliance with N.A.R. & C.A.R. Governing Documents & Policies.  The H.A.R. adopts the N.A.R. Code of Ethics and agrees to enforce the Code of Ethics among its REALTOR^® members.  The H.A.R. and all of its members agree to abide by the Constitution, Bylaws, Rules and Regulations, Code of Ethics, and policies of N.A.R. and C.A.R.

Section 4.  Other Association Rules, Regulations & Policies. H.A.R. may adopt any Rules and Regulations or policies not inconsistent with the Constitution, Bylaws, Rules and Regulations, Code of Ethics, and policies of N.A.R. and C.A.R. and these Bylaws. Any inconsistencies between H.A.R.'s Rules and Regulations or Policies and the Bylaws of H.A.R. (hereinafter “Bylaws”) shall be controlled by the Bylaws.

ARTICLE IV - JURISDICTION

Section 1. Description of Jurisdiction.  The territorial jurisdiction of the H.A.R. as a member of N.A.R. is: Humboldt County, CA

Section 2. Jurisdictional Rights. Territorial jurisdiction is defined to mean the right and duty to control the use of the terms REALTOR® and REALTORS® subject to the conditions set forth in the Bylaws and those of N.A.R., and to protect and safeguard the property rights of N.A.R. in those terms.

ARTICLE V - MEMBERSHIP, QUALIFICATION,

APPLICATION AND ACCEPTANCE

Section 1. Classes of Membership.  There shall be six (6) classes of membership: (1) REALTOR^® Members; (2) Institute Affiliate Members; (3) Affiliate Members; (4) Public Service Members; (5) Honorary Members; and (6) Student Members.

Section 2. Qualifications for REALTOR^® Members.

2.1 REALTOR^® members, whether primary or secondary, who are principals, (“principals” are defined, herein and throughout these bylaws when this terminology is used, as sole proprietors, partners, corporate officers or branch office managers of real estate firms shall:

(a) Maintain a current, valid California real estate broker or salesperson license or California real estate appraisal certification or license; and

(b) Act as a sole proprietor, partner, corporate officer of a real estate firm or office manager of a real estate firm acting on behalf of the firm’s principal(s); and

(c) Remain actively engaged in the real estate profession, (“engaged in the real estate profession” is defined, herein and throughout these bylaws when this terminology is used, as buying, selling, exchanging, renting or leasing, managing, counseling, appraising for others for compensation, building, developing or subdividing real estate); and

(d) Maintain or be associated with a real estate office located within the state of California or a state contiguous thereto; and

(e) Have no record of official sanctions rendered by the courts or other lawful authorities for (i)   violations of  civil rights laws or real estate license laws within the past three years or (ii) criminal convictions within the past ten years where the crime was punishable by death or imprisonment in excess of one year under the law under which the applicant was convicted (ten years is measured from the date of the conviction or the release of the applicant from the confinement imposed for that conviction, whichever is the later date).

2.2 REALTOR^® members, whether primary or secondary, other than principals shall:

(a) Maintain a current, valid California real estate broker or salesperson license or California real estate appraisal certification or license; and

(b) Remain actively engaged in the real estate profession;

(c) Remain employed by or affiliated as an independent contractor with a REALTOR^® member who meets the requirements in Section 2.1 of this Article V for any Association in California or a state contiguous thereto; and

(d) Have no record of official sanctions rendered by the courts or other lawful authorities for (i)   violations of  civil rights laws or real estate license laws within the past three years or (ii) criminal convictions within the past ten years where the crime was punishable by death or imprisonment in excess of one year under the law under which the applicant was convicted (ten years is measured from the date of the conviction or the release of the applicant from the confinement imposed for that conviction, whichever is the later date).

2.3 REALTOR^® members may be franchise corporate officer, under the following circumstances: franchise corporate officers of real estate brokerage franchise organizations with at least one hundred fifty franchisees located within the United States, its insular possessions and the commonwealth of Puerto Rico, may be elected to membership pursuant to the Constitution and Bylaws of N.A.R. (hereinafter “Franchise Corporate Officers”).  Franchise Corporate Officers may or may not be licensed for California real estate broker or salesperson or appraisal activities.  Franchise Corporate Officers shall enjoy all of the rights, privileges and obligations of REALTOR^® membership, including compliance with the Code of Ethics, except: obligations related to H.A.R.  mandated education, meeting attendance, or indoctrination classes or other similar requirements, if any; the right to use the term REALTOR^® in connection with their franchise organization’s name; and the right to hold elective office in the H.A.R., C.A.R., and N.A.R.

2.4  Each firm shall designate in writing one “Designated REALTOR^®” member who shall be responsible for the conduct of individuals affiliated with the firm and accountable to the H.A.R. for all duties and obligations of H.A.R. membership, including, but no limited to, certification as set forth in Article VI, Section 11.  The "Designated REALTOR^®" must be the sole proprietor, partner, corporate officer or an office manager acting on behalf of the firm’s principal(s) and must have the authority to bind the firm in arbitration's and must meet all the other qualifications for REALTOR^® membership set forth in Article V, Sections 2.1 of the Bylaws.

2.5  Association of Choice.

(a)  Primary Membership.   Licensees affiliated with a REALTOR^® firm may choose as their "primary" Association any Association within California where the firm maintains a "Designated REALTOR^®.”  An individual is a primary member of the H.A.R. if the H.A.R. pays C.A.R. and N.A.R. dues based on such member. One of the principals in a real estate firm must be a Designated REALTOR^® of the H.A.R. in order for the licensees affiliated with the firm to select the H.A.R. as the “primary” Association.

(b)  Secondary Membership.   A REALTOR^® who has joined another Association as a primary member may join this H.A.R. as a secondary member. There need not be a Designated REALTOR^® member of this H.A.R. for licensees to select this H.A.R. as their secondary Association.  The conditions for secondary membership shall be no more stringent than for primary membership, and the privileges of membership shall be the same including the right to vote and hold office.

2.6  Each principal of the real estate firm who is actively engaged in the real estate profession within California or within a state contiguous thereto shall be required to become a REALTOR^® member if any principal of such firm, partnership or corporation is a REALTOR^® member within those states. Each is required to hold REALTOR^® membership individually in a local Association in California if they meet all the other qualifications set forth in Article V, Sections 2.1, 2.2, or 2.3 of the Bylaws (except as provided in Section 2.7). Each principal of the real estate firm or franchise corporate officers shall be ineligible for any class of membership other than REALTOR^® membership unless they otherwise qualify for Institute Affiliate membership as described in Article V, Section 3.

2.7  In the case of a real estate firm, partnership or corporation whose business activity is substantially all commercial, only those principals actively engaged in the real estate profession in connection with the same office, or any other offices within the jurisdiction of the H.A.R. in which one of the firm’s principals holds REALTOR^® membership, shall be required to hold REALTOR^® membership unless otherwise qualified for Institute Affiliate Membership as described in Article V, Section 3.

Section 3. Qualifications for Institute Affiliate Members.  Institute Affiliate members shall be individuals who hold a professional designation awarded by a qualified Institute, Society or Council affiliated with the N.A.R. that addresses a specialty area other than residential brokerage or individuals who otherwise hold a class of membership in such Institute, Society or Council that confers the right to vote or hold office. Any such individual, if otherwise eligible, may elect to hold REALTOR® membership subject to payment of applicable dues for such membership.

Section 4. Qualifications for Affiliate Members.  Affiliate members shall be individuals or firms engaged in activities related to the real estate profession, who do not qualify for REALTOR® membership. Affiliate members have interests requiring information concerning real estate and sympathy with the objectives of H.A.R.

Section 5. Qualifications for Public Service Members.  Public Service members shall be those members who maintain an interest in the real estate profession as employees or affiliates of educational, public utility, governmental or other similar organizations and are not engaged in the real estate profession on their own account or with an established real estate business.

Section 6. Qualifications for Honorary Members.  Honorary members shall be those persons recognized by the Board of Directors as persons who have performed notable service for the real estate profession, for the H.A.R., or for the public though not engaged in the real estate profession.

Section 7. Qualifications for Student Members.  Student members shall be students enrolled in an undergraduate or graduate degree program at an institution of higher education with a specialization or major in real estate, or who are seeking to obtain a real estate license or appraiser's license but who are not eligible for REALTOR® membership.

Section  8.  Membership Application.

(a) Each applicant for membership shall submit an application in such manner and form as may be prescribed by the H.A.R. Board of Directors (hereinafter “Board of Directors”) and give his or her consent that the Board of Directors, through the H.A.R. Membership Committee (hereinafter “Membership Committee”) or otherwise, may obtain information about the applicant from any member, other persons or Associations and that any information furnished to the Board of Directors by any member, person or Association shall not form the basis of any action for slander, libel or defamation of character.  The Board of Directors, through its Membership Committee or otherwise, may consider the following in determining an applicant’s qualifications for membership: (1) all final findings of N.A.R. Code of Ethics violations and violations of other membership duties in any other Association within the past three (3) years; (2) pending ethics complaints or hearings; (3) unsatisfied discipline pending; (4) pending arbitration requests or hearings; (5) unpaid arbitration awards or unpaid financial obligations to any other Association or Association Multiple Listing Service (“MLS”).

(b) Applicants for membership shall be familiar with and agree to abide by the Bylaws and Rules and Regulations of the H.A.R., the Bylaws of C.A.R. and the N.A.R. Constitution, Bylaws and Code of Ethics, to the extent they are applicable, and pass such reasonable and nondiscriminatory written examination thereon as may be required by the Membership Committee or otherwise.  Applicants must also complete an orientation program as may be required by the Board of Directors, its Membership Committee, or otherwise. An individual will be given the opportunity to complete any mandated orientation program remotely.   An Applicant will be eligible only for the status of provisional membership (should the Board of Directors allow such status) until any mandatory orientation is timely satisfied and/or until Board of Directors’ approval of the application.

(c) Applicants for REALTOR^® membership shall certify:  (1) that they have no record of official sanctions rendered by the courts or other lawful authorities for violations of  civil rights laws or real estate license laws within the past three years;  (2) that they have no criminal convictions within the past ten years where the crime was punishable by death or imprisonment in excess of one year under the law under which the applicant was convicted (ten years is measured from the date of the conviction or the release of the applicant from the confinement imposed for that conviction, whichever is the later date); and (3) that they have not been suspended or expelled from an Association the past three years for violations of the N.A.R. Code of Ethics.

(d) Applicants who are sole proprietors, general partners, corporate officers, or branch office managers (Article V, Section 2) of a real estate firm must disclose:  (1) whether they or their firms are subject to any pending bankruptcy proceedings; and (2) whether they or their firms have been adjudged bankrupt within the past three (3) years. If the applicant is party to pending bankruptcy or insolvency proceedings or has been adjudged bankrupt within the past three (3) years, the applicant may be required to pay cash in advance for H.A.R. and MLS fees for up to one year from the date that membership is approved or from the date that the applicant is discharged from bankruptcy, whichever is later.  If the Board of Directors determines that such prepayments will not protect the interests of the H.A.R. or its members, such applications may be rejected.

Section 9.  Prior Membership Records.  The H.A.R. may consider information received from other Associations and/or through C.A.R.’s Ethics Check database or otherwise in determining whether an applicant satisfies the H.A.R.'s membership requirements.  The H.A.R. may request from any Association where the applicant held prior membership, minimum "core" information including:

(a) All final findings of Code of Ethics violations and violations of other membership duties within the past three (3) years;

(b)  Pending complaints alleging violations of the Code of Ethics or alleging violations of other membership duties;

(c)   Incomplete or (pending) disciplinary measures;

(d)   Pending arbitration requests (or hearings);

(e)  Unpaid arbitration awards or unpaid financial obligations to the Association or its MLS; and

(f)    Any misuse of the term REALTOR^® or REALTORS^® in the name of the applicant’s firm.

The H.A.R. will also consider all final findings of Code of Ethics violations and violations of other membership duties in this H.A.R. within the past three (3) years.

NOTE:  Article IV, Section 2, of the NAR Bylaws prohibits a Member H.A.R. from knowingly granting REALTOR^® membership to any applicant who has an unfulfilled sanction pending which was imposed by another Association for violation of the Code of Ethics, whether learned through C.A.R. Ethics Check or otherwise.

Section 10.  Application Review and Acceptance.  The procedure for acceptance to REALTOR^® membership shall be as follows:

(a) The Membership Committee shall determine whether the applicant is applying for the appropriate class of membership. If the H.A.R. does not have a standing Membership Committee, the AOR's Executive Officer/staff may act in this capacity. The Membership Committee or H.A.R. staff may request “core” information as defined in Article V, Section 9, from any Association of which the applicant was previously a member.  The Membership Committee or H.A.R. staff shall thereafter make provide a written list for approval or recommend rejection of the applicant. If they recommend rejection, the Membership Committee or H.A.R. staff shall make a written report of its findings to the Board of Directors.  The Membership Committee or H.A.R. staff shall consider the information permitted under Sections 8 and 9 of this Article in its review of an applicant and conduct all proceedings with strict attention to the principles of due process and compliance with the Bylaws.

(b) If the recommendation is to reject the application, the reasons shall be specifically stated.  If any member of the Membership Committee or H.A.R. staff submits a dissenting recommendation, it shall also be reported to the applicant and Board of Directors.  The applicant shall also be notified of his or her right to appear before the Board of Directors.

(c) The Board of Directors shall review the qualifications of the applicant and the recommendations of the Membership Committee or H.A.R. staff and then vote on the applicant's eligibility for membership.  If the applicant appears, he or she may be represented by counsel, call witnesses on his or her behalf and make such statements as he or she deems relevant.  The Board of Directors may also have counsel present.  If the applicant receives a majority vote of the Board of Directors, he or she shall be declared accepted as a member and shall be advised by written notice.  An application for Institute Affiliate Membership shall be acted upon by the Board of Directors within forty-five (45) days from the date of application for membership.

(d) If the Board of Directors determines that the application should be rejected, it shall record its reasons.  If the Board of Directors believes that denial of membership to the applicant may become the basis of litigation and a claim of damage by the applicant, it may specify that denial shall become effective upon entry in a suit by the H.A.R. for a declaratory judgment by a court of competent jurisdiction of a final judgment declaring that the rejection violates no rights of the applicant.

(e) The Board of Directors, through its Membership Committee or otherwise, may grant “provisional” membership to an applicant in instances where the applicant for membership has not yet satisfied any mandatory orientation and/or has unsatisfied discipline pending in another Association (except for violations of the Code of Ethics), provided all other qualifications for membership have been satisfied.  Provisional members shall be considered REALTORS^® and shall be subject to all of the same privileges and obligations of REALTOR^® membership.  The Board of Directors may reconsider the membership status of provisional members when all mandatory orientation is completed and/or when all unsatisfied discipline has been resolved or if such matters of unresolved discipline are not fully resolved within six (6) months from the date that provisional membership is approved. At the time of reconsideration, if the Board of Directors determines that the individual has not done his or her part to satisfactorily resolved the unsatisfied discipline, at the discretion of the Board of Directors, membership may be terminated.

Section 11.  New Member Code of Ethics Orientation.  Applicants for REALTOR^® membership and provisional REALTOR^® members (where applicable) shall complete an orientation program on the Code of Ethics, meeting the minimum criteria established by N.A.R. for new member ethics training.  This requirement does not apply to applicants for REALTOR^® membership or provisional members who have completed comparable orientation in another Association, provided that REALTOR^® membership has been continuous, or that any break in membership is for one year or less. Failure to satisfy this requirement within One Year of the date of application (or, alternatively, the date that provisional membership was granted), will result in denial of the membership application or termination of provisional membership.

Section 12. Continuing Member Code of Ethics Training.   Every three-year period, starting with the period from January 1, 2019 through December 31, 2021, and for successive three-year periods thereafter, each REALTOR^® member of the A.O.R. shall be required to complete a course on the Code of Ethics, meeting the minimum criteria established by N.A.R. for ethics training.  This requirement will be satisfied upon presentation of documentation that the member has completed such course of instruction conducted by this or another REALTOR® Association, C.A.R. or N.A.R., which meets the learning objectives and minimum criteria established by N.A.R from time to time. REALTOR^® members who have completed training as a requirement of membership in another Association and REALTOR^® members who have completed the New Member Code of Ethics Orientation during any three-year cycle shall not be required to complete additional ethics training until a new three-year period commences.

Failure to satisfy this requirement shall be considered a violation of a membership duty and will result in suspension of membership for the first two months (January and February) of the year following the end of any three-year cycle or until the requirement is met, whichever occurs sooner. On March 1 of that year, the membership of a member who is still suspended as of that date for failure to complete the training requirement will be automatically terminated.

Section 13.  Status Changes.

(a) REALTORS^® who change the conditions under which they hold membership shall be required to provide written notification to the H.A.R. within thirty (30) days.  A non-principal REALTOR^® who becomes a principal in the firm with which he or she has been licensed or, becomes a principal in a new firm which will be comprised of REALTOR^® principals, may be required to satisfy any previously unsatisfied membership requirements applicable to principal REALTOR^® members.  During the period of transition from one status of membership to another, such members shall be subject to all of the privileges and obligations of a principal REALTOR^® member.  The Board of Directors, at its discretion, may waive any qualification which the member has already fulfilled in accordance with the Bylaws.  If the REALTOR^® does not satisfy the requirements established in the Bylaws for the category of membership to which they have transferred within thirty (30) days of the date they advised the H.A.R. of their change in status, their application for change of status will terminate automatically unless otherwise so directed by the Board of Directors.

(b) If the licensed status of any member is terminated, his or her membership in the H.A.R. shall be subject to immediate termination.  If any member ceases to meet any other ongoing qualification of membership, his or her membership may be terminated by the Board of Directors.  Each member shall have the affirmative duty to notify the H.A.R. of any changes in their licensee status.

(c) Any application fee related to a change in membership status shall be reduced by an amount equal to any application fee previously paid by the applicant.  Dues shall be prorated from the first day of the month in which the member is notified of acceptance by the Board of Directors of his or her change in status and shall be based on the new membership status for the remainder of the year.

Section 14. Resignation.  Resignations of members shall become effective when received in writing by the Board of Directors, provided, however, that if any member submitting the resignation is indebted to the H.A.R. for dues, fees, fines or other assessments of the H.A.R. or any of its services, departments, divisions or subsidiaries, the H.A.R. may condition the right of the resigning member to reapply for membership upon payment in full of all such monies owed.

ARTICLE VI - PRIVILEGES AND DUTIES OF MEMBERSHIP

Section 1. Member Compliance with Bylaws, Policies, Rules and Regulations.  It shall be the duty of every member of the H.A.R. to safeguard and promote the standards, interests, and welfare of H.A.R. and the real estate profession, and to protect against conduct that may cause a lack of public confidence in the real estate profession or REALTORS^®, REALTOR^® members also must abide by the governing documents and policies of the H.A.R., C.A.R, and N.A.R., as well as the Code of Ethics of N.A.R., including the duty to arbitrate controversies arising out of real estate transactions as specified by Article 17 of the Code of Ethics.  Any member of the H.A.R. may be reprimanded, fined, placed on probation, suspended, or expelled by the Board of Directors for a violation of governing documents and policies of the H.A.R.  If a hearing is required it shall be held in accordance with the California Code of Ethics and Arbitration Manual.

Although only REALTOR^® members are subject to the Code of Ethics and its enforcement by the H.A.R., all members are encouraged to abide by the principles established in the Code of Ethics and conduct their business and professional practices accordingly.  Further, any non-REALTOR^® member may, upon recommendation of a hearing panel of the Professional Standards Committee, be subject to discipline as described above, for any conduct, which in the opinion of the Board of Directors, reflects adversely on the real estate industry or the terms REALTOR^® or REALTORS^® and for conduct that is inconsistent with or adverse to the objectives and purposes of this H.A.R., C.A.R. or N.A.R.

Section 2. Member Discipline. 

(a) Any REALTOR^® member of the A.O.R. may be disciplined by the Board of Directors for violations of the Code of Ethics or other duties of membership after a hearing as described in the California Code of Ethics and Arbitration Manual, provided that the discipline imposed is consistent with N.A.R. policy as set forth in the California Code of Ethics and Arbitration Manual.

(b) Any member of the A.O.R. may be reprimanded, placed on probation, suspended or expelled or removed from any office or committee for violation of the A.O.R’s Anti-Harassment Policy following an investigation and decision process as set forth in said Anti-Harassment Policy. The A.O.R.’s Anti-Harassment Policy may be amended at any time by majority vote of the Board of Directors, with such amendment effective for any conduct the last instance of which occurred after the date the amendment to the Anti-Harassment Policy was adopted.

Section 3. Resignation with Pending Arbitration or Disciplinary Hearing.  If a member resigns from the H.A.R. or otherwise causes membership to terminate with a disciplinary complaint pending, the complaint shall be processed until the decision of the H.A.R. with respect to disposition of the complaint is final by this H.A.R. (if respondent does not hold membership in any other Association) or by any other Association in which the respondent continues to hold membership. If an ethics respondent resigns or otherwise causes membership in all Associations to terminate before an ethics complaint is filed alleging unethical conduct occurred while the respondent was a REALTOR^®, the complaint, once filed, shall be processed until the decision of the Association with respect to disposition of the complaint is final. In any instance where an ethics hearing is held subsequent to an ethic respondent’s resignation or membership termination, any discipline ratified by the Board of Directors shall be reported to Ethics Check and held in abeyance until such time as the respondent rejoins an Association of REALTORS^®.

If a member resigns or otherwise causes membership to terminate, the duty to submit to arbitration continues in effect even after membership lapses or is terminated provided that the dispute arose while the former member was a member.

Section 4. Voting Rights and Eligibility for Elective Office.  Only REALTOR^® members, whether primary or secondary, in good standing are entitled to vote and to hold elective office in the H.A.R.  Proxy voting is not allowed. For the purposes of these bylaws, the term “good standing” means the member satisfies the obligations of REALTOR^® members set forth in Article VI, Section 1, is current with all financial and disciplinary obligations to the H.A.R. and MLS, has completed any new members requirements, and complies with N.A.R.’s trademark rules.  For purposes of this section, the term “good standing” means the member satisfies the “Obligations of REALTOR^® Members”, is current with all financial and disciplinary obligations to the association and MLS, has completed any new member requirements, and complies with NAR’s trademark rules.

Section 5. Privileges and Duties of REALTOR^® Members. 

• It shall be the duty and responsibility of every REALTOR^® member of H.A.R. to safeguard and promote the standards, interests and welfare of the association and the real estate profession, and to protect against conduct that may cause a lack of public confidence in the real estate profession or in REALTORS^®. REALTOR^® members also must abide by the governing documents and policies of the association, the State Association, and the NATIONAL ASSOCIATION OF REALTORS^® as well as the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS^®, including the duty to arbitrate controversies arising out of real estate transactions as specified by Article 17 of the Code of Ethics, and in accordance with the procedures set forth in the Code of Ethics and Arbitration Manual.

Every REALTOR^® member shall maintain a high level of integrity and adhere to the association’s membership criteria.  Any violent act or threat of violence to person or property, hateful conduct, or acts of moral turpitude impacting the public shall not be tolerated and may be cause for disciplinary action, up to and including termination of membership.

(b) REALTOR^® members have the primary responsibility to safeguard and promote the standards, interests and welfare of the H.A.R. and the real estate profession.

(c) REALTOR^® members in good standing may use the terms REALTOR^® and REALTORS^® subject to the provisions of Article VIII.

(d) If a REALTOR^® member who is a sole proprietor, principal in a firm, partner in a partnership, officer of a corporation, or branch office manager is suspended or expelled, his or her firm, partnership or corporation shall not use the terms REALTOR^® or REALTORS^® in connection with its business during the period of suspension or expulsion and the membership of all other principals, partners or corporate officers shall suspend or terminate during the period of suspension or expulsion, unless:  (1) the disciplined member severs his or her connection with the firm, partnership or corporation; or (2) the disciplined member relinquishes management control of the firm.

The membership of REALTORS^® who are employed or affiliated as independent contractors with the disciplined member shall suspend or terminate during the period of suspension or expulsion unless:  (1) the disciplined member severs his or her connection with the firm, partnership or corporation; (2) the disciplined member relinquishes management control of the firm; or (3) the non-principal REALTOR^® member elects to sever his or her connection with the disciplined member and affiliates with another REALTOR^® member in good standing in the association.  If a REALTOR^® member other than a sole proprietor in a firm, partner in a partnership, officer of a corporation or branch office manager is suspended or expelled, the use of the terms REALTOR^® or REALTORS^® by the firm, partnership or corporation shall not be affected.

Removal of an individual from any form or degree of management control must be certified to the H.A.R. by the disciplined member and by the individual who is assuming management control. The signatures on such certification must be notarized.

The foregoing is not intended to preclude a suspended or expelled member from functioning as an employee or independent contractor, provided no management control is exercised.

(e) In any action taken against a principal REALTOR^® member for suspension or expulsion, notice of such action shall be given to all REALTORS^® employed by or affiliated as independent contractors with such REALTOR^® member and they shall be advised that the provisions in this Article VI, Section 5 shall apply.

Section 6. Privileges and Duties of Institute Affiliate Members.  Institute Affiliate members shall have the rights and privileges and be subject to the obligations prescribed by the Board of Directors consistent with the N.A.R. Constitution and Bylaws.

NOTE: Local associations establish the rights and privileges to be conferred on Institute Affiliate Members except that no Institute Affiliate Member may be granted the right to use the term REALTOR^® or the REALTOR^® logo; to serve as President of the local association; or to be a Participant in the local association's Multiple Listing Service. (Amended 1/02)

Section 7. Privileges and Duties of Affiliate Members.  Affiliate members shall have the rights and privileges and be subject to the obligations prescribed by the Board of Directors.

Section 8. Privileges and Duties of Public Service Members.  Public Service members shall have the rights and privileges and be subject to the obligations prescribed by the Board of Directors.

Section 9. Privileges and Duties of Honorary Members.  Honorary membership shall confer only the right to attend meetings and participate in discussions.

Section 10. Privileges and Duties of Student Members.  Student members shall have the rights and privileges and be subject to the obligations prescribed by the Board of Directors.

Section 11. Certification by Designated REALTOR^®.  Designated REALTORS^® shall certify to the H.A.R. during the first month of each fiscal year, on a form provided by the H.A.R., a complete listing of all individuals licensed or certified under California law with the REALTOR^® firm(s), and shall designate the primary association, if any, for each individual.  These declarations shall be used for purposes of calculating dues and assessments under Article IX, Section 2 of the Bylaws. Designated REALTOR^® members shall also notify the H.A.R. of any additional individual(s) licensed or certified with the firm(s) and of any individual whose affiliation with the firm was severed within thirty days of the date of affiliation or severance of the individual(s).

ARTICLE VII - PROFESSIONAL STANDARDS AND ARBITRATION                                                                

Section 1. Professional Standards and Arbitration.  The responsibility of the H.A.R. and its members relating to the enforcement of the Code of Ethics, the disciplining of members, the arbitration of disputes, and the organization and procedures incident thereto shall be governed by the California Code of Ethics and Arbitration Manual, as published and from time to time amended by C.A.R., which by this reference is made  a part of these Bylaws.

Section 2. Member Compliance with N.A.R. and C.A.R. Constitution, Bylaws, Policies, Rules, Regulations, and Code of Ethics.  It shall be the duty and responsibility of every REALTOR^® member of this H.A.R. to abide by the governing documents and policies of this H.A.R C.A.R., and N.A.R., and the Code of Ethics, including the duty to arbitrate controversies arising out of real estate transactions as specified by Article 17 of the N.A.R. Code of Ethics and as further defined and in accordance with the procedures set forth in the California Code of Ethics and Arbitration Manual as from time to time amended by C.A.R.  By becoming and remaining a member, every REALTOR^® member agrees that he or she and the corporation or firm for which he or she acts as a partner, officer, principal, or  branch office manager, will submit to arbitration through the H.A.R. all disputes with any other member or member of the public subject to the conditions set forth in the California Code of Ethics and Arbitration Manual.

ARTICLE VIII - USE OF THE TERMS REALTOR^® AND REALTORS^®

Section 1. Use and Control of REALTOR^® Membership Marks.  Use of the terms REALTOR^® and REALTORS^® by members shall, at all times, be subject to the provisions of the Constitution and Bylaws of N.A.R. and to the Rules and Regulations prescribed by its Board of Directors.  The H.A.R. shall have the authority to control, jointly and in full cooperation with N.A.R., use of the terms within its jurisdiction.  Any misuse of the terms by members is a violation of a membership duty and may subject members to disciplinary action by the Board of Directors after a hearing as provided for in the C.A.R. Code of Ethics an Arbitration Manual.

Section 2. Jurisdictional Limits on Use of REALTOR^® Membership Marks.  REALTOR^® members of the H.A.R. shall have the privilege of using the terms REALTOR^® and REALTORS^® in connection with their places of business within California, or a state contiguous thereto, so long as they remain REALTOR^® members in good standing.  No other class of members shall have this privilege.

Section 3. Use of REALTOR^® Membership Marks Dependent on Status of Firm Principals.  A REALTOR^® member who is a principal of a real estate firm, partnership or corporation may use the terms REALTOR^® and REALTORS^® only if all the principals of such firm, partnership, or corporation who are actively engaged in the real estate profession within California, or a state contiguous thereto, are REALTOR^® members.

(a)  In the case of a REALTOR^® member who is a principal of a real estate firm, partnership or corporation whose business activity is substantially all commercial, the right to use the term REALTOR^® or REALTORS^® shall be limited to office locations in which a principal, partner, corporate officer or branch office manager of the firm, partnership or corporation holds REALTOR^® membership. If a firm, partnership or corporation operates additional places of business in which no principal, partner, corporate officer or branch office manager holds REALTOR^® membership, the term REALTOR^® or REALTORS^® may not be used in any reference to those additional places of business.

Section 4. Institute Affiliate Members Ineligible to Use REALTOR^® Membership Marks.  Institute Affiliate members shall not use the terms REALTOR^® or REALTORS^® nor the imprint of the emblem seal of N.A.R.

ARTICLE IX - DUES AND ASSESSMENTS

Section 1. Application Fee.  The Board of Directors may adopt a reasonable application fee for membership in the H.A.R.  The application fee for REALTOR^® membership shall not exceed three (3) times the amount of the annual dues for REALTOR^® membership.  The application fee shall be required to accompany each application for membership in the H.A.R. and shall become the property of the H.A.R. upon final approval of the application. The H.A.R. shall collect all C.A.R. and N.A.R new member and application fees, if any.

Section 2. Dues and Assessments.

(a) The Board of Directors shall determine annually the amount of annual dues and assessments, if any, to be paid by each class of membership.

(b) The dues and assessments of each Designated REALTOR^® member shall be a base amount plus an amount multiplied by the number of real estate licensees and licensed or certified appraisers under California law to which he or she certified under Article VI, Section 11, and who:  (1) are employed by or affiliated as independent contractors or who are otherwise directly or indirectly licensed or certified with such REALTOR^® member; and (2) are not REALTOR^® members of any Association within California or a state contiguous thereto or Institute Affiliate members of this H.A.R..  In calculating the dues and assessments payable to the H.A.R. by a Designated REALTOR^® member, non-member licensees as defined in (1) and (2) of this sub-paragraph shall not be included in the computation of dues and assessments if the Designated REALTOR^® has paid dues and assessments based on non-member licensees to another Association within the state of California or a state contiguous thereto, provided the Designated REALTOR^® notifies the H.A.R. in writing of the identity of the Association to which dues and assessments have been remitted.

(c) In accordance with Article VI, Section 11, the Designated REALTOR^® has an affirmative and ongoing duty to keep dues and assessment formulations current and accurate and shall  notify the H.A.R. within 30 days of any changes, additions or deletions of any real estate licensees and licensed or certified appraisers employed by or affiliated as independent contractors or who are otherwise directly or indirectly licensed or certified with such Designated REALTOR^®.

(d) A REALTOR^® with a direct or indirect ownership interest in an entity engaged exclusively in soliciting and/or referring clients and customers to the REALTOR^® for consideration on a substantially exclusive basis (“LFRO”) shall annually file with the association on a form approved by the association a list of the licensees affiliated with that entity and shall certify that all of the licensees affiliated with the entity are solely engaged in referring clients and customers and are not engaged in the real estate profession as defined in Article V, Section 2 (c) (buying, selling, exchanging, renting or leasing, managing, counseling, appraising for others for compensation, building, developing or subdividing real estate)  and are not  participants or subscribers in a Multiple Listing Service (“MLS”). The individuals disclosed on such form shall not be deemed to be licensed with the REALTOR^® filing the form for purposes of this Article IX, Section 2 (b) and shall not be included in calculating the annual dues and assessments of the Designated REALTOR^®. It shall be considered a violation of a membership duty for a REALTOR^® to falsely certify LFRO status. Moreover, the exemption for any licensee included on the certification form for a LFRO shall automatically be revoked upon the individual being engaged in the real estate profession as defined in Article V, Section 2 (c) other than for referrals, or for being a participant or subscriber of any MLS, and dues and assessments for the entire current fiscal year shall be immediately due and payable in full. Licensee may not reapply for a LFRO exemption until the following fiscal year.

(e) A REALTOR^® with a direct or indirect ownership interest in an entity engaged in the real estate business which provides services for which a Mortgage Loan Originators (“MLO”) license endorsement is required may annually file with the association, on a form approved by the association, a list of the MLO licensees and certify that the listed licensees (1) have a MLO license or endorsement, (2) are not engaged in the real estate profession as defined in Article V, Section 2 (c) (buying, selling, exchanging, renting or leasing, managing, counseling, appraising for others for compensation, building, developing or subdividing real estate) except for licensed activities for which an MLO is required, and (3) are not participants or subscribers in any MLS.  The individuals disclosed on such forms shall not be deemed to be licensed with the REALTOR^® filing the form for purposes of this Article IX, Section 2(b) and shall not be included in calculating the annual dues and assessments of the Designated REALTOR^®. It shall be considered a violation of a membership duty for a REALTOR^® to falsely certify MLO status. Moreover, the exemption for any licensee, included on the certification form for an MLO exemption, shall automatically be revoked upon the individual being engaged in the real estate profession as defined in Article V, Section 2 (c) other than in those activities for which an MLO license or endorsement is required or upon their joining an MLS, and dues and assessments for the entire current fiscal year shall be immediately due and payable in full.  Licensee may not reapply for a MLO exemption until the following fiscal year.

(f) Membership dues and assessments shall be prorated for any licensee included on a certification form submitted to the association who during the same calendar year applies for REALTOR^® membership in the association. However, membership dues and assessments shall not be prorated if the licensee held REALTOR^® membership during the preceding calendar year.

(g) The annual dues and assessments of REALTOR^® members shall not include any allocation for C.A.R., if the member is a member of an Association of C.A.R. and that Association has paid C.A.R. dues and assessments for the member.

(h) The annual dues and assessments of REALTOR^® members shall not include any allocation for N.A.R., if the member is a member of an Association of N.A.R. and that association has paid N.A.R. dues and assessments for the member.

(i)  In the case of a Designated REALTOR^® member in a firm, partnership, or corporation whose business activity is substantially all commercial, any assessments for non-member licensees shall be limited to licensees affiliated with the Designated REALTOR^® (as defined in sub- paragraph (b) of this Section) in the office where the Designated REALTOR^® holds membership, and any other offices of the firm located within the jurisdiction of this Association.

(j) The annual dues and assessments of each Institute Affiliate Member shall be as established in Article II of the Bylaws of the NATIONAL ASSOCIATION OF REALTORS^®.

NOTE: The Institutes, Societies and Councils of the National Association shall be responsible for collecting and remitting dues to the National Association for Institute Affiliate Members ($75.00). The National Association shall credit $25.00 to the account of a local association for each Institute Affiliate Member whose office address is within the assigned territorial jurisdiction of that association, provided, however, if the office location is also within the territorial jurisdiction of a Commercial Overlay Board (COB), the $25.00 amount will be credited to the COB, unless the Institute Affiliate Member directs that the dues be distributed to the other board. The National Association shall also credit $25.00 to the account of state associations for each Institute Affiliate Member whose office address is located within the territorial jurisdiction of the state association. Local and state associations may not establish any additional entrance, initiation fees or dues for Institute Affiliate Members, but may provide service packages to which Institute Affiliate Members may voluntarily subscribe. (Amended 1/02)

Section 3. Dues and Assessments Payable.  Dues and assessments for all members shall be payable annually in advance on the first day of January.   Dues and assessments shall be computed from the first day of the month in which a new member is notified of acceptance and shall be prorated for the remainder of the year.  Any member who initiates bankruptcy proceedings may be placed on a "cash basis" from the date the bankruptcy petition is filed until one year from the date that the member has been discharged from bankruptcy. All dues, assessments or fees paid to the H.A.R. are nonrefundable, except for those dues and assessments returned to a terminated provisional member as provided in Article V, Section 10.

After the initial annual billing, in the event additional real estate licensees or licensed or certified appraisers become affiliated with the Designated REALTOR^®, the dues and assessments of the Designated REALTOR^® shall be adjusted for each real estate licensee or licensed or certified appraiser employed by or affiliated as independent contractors or otherwise directly or indirectly licensed or certified with such Designated REALTOR^® and added to their firm as shown on the DRE or BREA database.  Any additional amount owing shall become immediately due and payable upon the date of affiliation even if no invoice is generated (i.e. the date of affiliation is the “due date”).

Section 4. Nonpayment of Financial Obligations. 

(a) If dues, fees, fines, or other assessments including amounts owed to the H.A.R. are not paid within one (1) month after the due date, the nonpaying member is subject to fines and suspension.  Two (2) months after the due date, membership of the nonpaying member shall automatically terminate unless within that time the amount due is paid.  However, no action shall be taken to suspend, expel or otherwise terminate a member for nonpayment of disputed amounts until the accuracy of the amount owed has been confirmed by the Board of Directors.  Furthermore, no member shall be suspended, expelled or otherwise terminated until twenty (20) days after notice of a proposed suspension expulsion or termination and the reason therefore has been sent by regular first class mail or electronic submission to him or her, which notice may be given before or after the expiration of the one-month limit.

(b) If within ten (10) days after the sending of a notice the member requests a hearing, the effective date of the suspension, expulsion or termination shall be deferred until after such hearing.  The Board of Directors shall send by regular first class mail or by electronic submission to the member at least five (5) days prior to the hearing a notice of the time and place of the hearing.  At the hearing the Board of Directors shall receive evidence from the member and may receive evidence from any other person on the issue of whether the member was delinquent in the payment of dues, fees, fines or other assessments and on the issue of whether it would be in the best interest of the H.A.R. to suspend, expel or otherwise terminate the member immediately.

(c) If the Board of Directors determines that the member was delinquent, the Board of Directors may decide, as it deems in the best interest of the H.A.R., to suspend, expel or otherwise terminate the member immediately, or to decline to suspend, expel or terminate the member on condition that the member pay the delinquency on or before a specified date or pay the delinquency in specified installments on or before specified dates. The member shall be automatically suspended, expelled or otherwise terminated without further hearing if the member fails to perform such condition.

(d) Any suspension, expulsion or termination occurring after a hearing shall be effective five (5) days after notice thereof is mailed or electronically sent or submitted to the member, subject to the right of the Board of Directors to specify that the suspension, or expulsion or termination shall become effective upon the entry, in a suit by the H.A.R. for declaratory relief, of the final judgment of a Court of competent jurisdiction declaring that the suspension, or expulsion or termination violates no rights of the member.

In the event the membership of a real estate licensee or certified or licensed appraiser who holds REALTOR^® membership is terminated for nonpayment of H.A.R. dues, fees, fines or other assessments and the licensee or appraiser remains affiliated with the same firm, the dues and assessment obligation of the Designated REALTOR^®, as set forth in this Article IX , Section 2(b), will be increased to reflect the addition of a non-member licensee or appraiser.  Such Designated REALTOR^® dues and assessments shall be calculated from the first day of the current fiscal year and are payable within thirty (30) days of the notice of termination.

Section 5. Reinstatement After Termination for Nonpayment of Financial Obligations.  A former member who has had his or her membership terminated for nonpayment of dues, fees, fines, or other assessments duly levied in accordance with the provisions of these Bylaws or the provisions of other Rules and Regulations of the H.A.R. or any of its services, departments, divisions or subsidiaries may apply for reinstatement in a manner prescribed for new applicants for membership, only upon making full payment of all past due accounts, together with interest at the rate of eighteen (18%) percent per annum on each item comprising the accounts, from its due date until paid, and after complying with all sanctions imposed by a disciplinary panel together with the payment of the application fee required of new applicants.

Section 6. Deposit.  All monies received by the H.A.R. for any purpose shall be deposited to the credit of the H.A.R. in a financial institution or institutions selected by resolution of the Board of Directors.

Section 7. Notice of Delinquent Dues, Fees, Fines, Assessments and Other Financial Obligations of Members.  All delinquent dues, fees, fines, assessments or other financial obligations to the H.A.R. or its Multiple Listing Service shall be noticed to the delinquent member in writing, including by electronic means, setting forth the amount owed and due date.

ARTICLE X - OFFICERS AND DIRECTORS

Section 1. Elected Officers.

(a) Composition. The elected Officers of the H.A.R. shall be: a President, a President-Elect, a First Vice-President. The President-Elect shall automatically ascend to the presidency at the end of his or her term as President-Elect unless for some reason he or she were stripped of office while President-Elect. The Chief Executive Officer is an ever-present ex-officio member of the Board of Directors without the right to vote.

(b) Criteria. Unless otherwise waived by the Board of Directors, the President shall have Two years’ experience as a Realtor member. All elected Officers must meet and continue to satisfy their Board of Director membership obligations set forth in Section 3 below for the duration of their time as Officers.

(c) Term of Office. The President, President-Elect, and First Vice-President shall serve one-year terms.

Section 2. Appointed Officers.

(a) Composition and selection. The Board of Directors shall appoint individuals to serve as Secretary and Treasurer. Appointment shall be by majority vote of the Directors present at a duly noticed meeting.

(b) Criteria. The Treasurer shall have the demonstrated ability to read and interpret complex financial reports.

(c) Term of Office. The Secretary shall serve a one-year term. The Treasurer shall serve a two-year term.

Section 3. Powers and Duties of Officers.  The powers and duties of the Officers shall be such as their titles, by general usage, would indicate and such as may be assigned to them by the Board of Directors.  It shall be the duty of the Secretary to keep the records of the Board of Directors and to carry on all necessary correspondence with N.A.R. and C.A.R.

Section 4. Board of Directors

• The governing body of the H.A.R. shall be a Board of Directors.
• Voting Members. The voting members shall consist of the elected Officers, the Immediate Past President of the H.A.R., who shall serve by designation and is not elected by the members, MLS Chair and Eleven elected REALTOR^® members of the H.A.R. All voting members including the elected Officers shall have one vote.
• Non-voting Members: The Secretary, the Treasurer, and the Affiliate Committee Chair shall serve as ex-officio, non-voting members of the Board of Directors. The Secretary and the Affiliate Committee Chair shall serve a one-year term. The Treasurer shall serve a two-year term.

(b) Criteria. Unless otherwise waived by the Board of Directors, any person nominated for and hereafter serving as a voting member must (1) have completed two years as a member of the H.A.R. prior to assuming office; (2) be a REALTOR^® member whose financial obligations to the H.A.R. are paid in full and whose dues and assessments are current and remain current throughout the duration of service on the Board; (3) be of sound professional character conducting business in compliance with NAR Code of Ethics, (All Final findings of NAR Code of Ethics violations and violations of other membership duties in this or any other H.A.R. within the past three years, and any unsatisfied discipline pending at any H.A.R. shall be taken into consideration when determining qualifications); (4) honor fiduciary duties to the H.A.R. and adhere to appropriate conflict of interest and disclosure rules; and (5) meet other requirements as may be established as policy by the Board of Directors.

(c) Term of Office. Elected Directors shall be elected to serve for terms of three years.  No person may serve in a particular capacity on the Board of Directors for more than three consecutive terms. Service prior to 2019 shall be disregarded for the purpose of this restriction.  The President may serve no more than (1) term consecutively but is not precluded from future service if re-elected as President-Elect. The term of the Immediate Past President serving by designation is one year. If the Immediate Past President is unable or unwilling to serve in this capacity as a Director, the Board of Directors, in accordance with the procedures for filling vacancies, may, but is not required to, fill the open seat with another Director to serve the remainder of the term otherwise reserved for the Immediate Past President. If a person serves as a Director, President, President-Elect or First Vice-President, for less than one-half (1/2) of the term applicable to that office, such portion of the term served shall be disregarded for purposes of the preceding limitations.

Section 5. Powers and Duties of the Board of Directors.  Subject to the provisions of the California For Profit Corporation Law and any limitations in the Articles of Incorporation or Bylaws relating to action required to be approved by the members or a majority of all the members, the activities and affairs of the Association shall be conducted by and all management powers shall be exercised by or under the direction of the Board of Directors. The Board of Directors may delegate the management of the activities of the Association to any committee so long as the ultimate direction is provided by the Board of Directors.

Section 6. Election of Officers and Directors.

• Delivery of Notices, Reports and Ballots. All notices, reports and ballots in connection with the election or removal of officers and directors may be accomplished by personal delivery, first class mail, facsimile, electronic mail or other electronic means.
• Nomination by the Nominating Committee. At least two months before the annual election, a Nominating Committee of five REALTOR^® members shall be appointed by the President with the approval of the Board of Directors. The Nominating Committee shall select one or more candidate for each office and one or more candidate for each place to be filled on the Board of Directors. No member of the Nominating Committee may be a candidate for office or the Board of Directors. No person may be nominated for office unless they will meet all of the qualifications for the office at the beginning of the term for which they are a nominee. Once the Nominating Committee has selected the slate of nominees, it may share it with the Board of Directors for information only; however, the Board of Directors shall not override, revise or approve the slate. The report of the Nominating Committee shall be delivered to each member eligible to vote at least four weeks preceding the election.
• Nomination by Petition. Additional candidates for the offices to be filled may be placed in nomination by petition signed by at least 10% of the REALTOR^® members eligible to vote. The petition shall be filed with the Secretary at least three weeks before the election. Such petition shall contain a statement signed by the candidate that he or she meets the criteria for the Board of Directors position as set forth in the Bylaws and is aware of the duties and responsibilities of the office and agrees to serve. The Secretary shall send notice of such additional nominations to all members eligible to vote at least two weeks before the election.
• Election Committee. The President, with the approval of the Board of Directors, shall appoint an Election Committee of REALTOR^® members to conduct the election. No member of the Election Committee may be a candidate for office or the Board of Directors. The Election Committee shall set a date on or before the annual meeting, on which the election will be held.  In lieu of a separately appointed Election Committee, the President, with approval of the Board of Directors, may appoint the Nominating Committee to act as the Election Committee. The Election Committee shall set a date on or before the annual meeting, on which the election will be held.
•   Elections shall be by ballot delivered to the members. There shall be no proxy votes. The ballot shall contain the names of all candidates and specify the office for which each is nominated. No person may be a candidate for more than one position whether nominated by the Nominating Committee or by petition.  Ballots may be submitted by the members by mail or in person, online, or by another method as determined by the Board of Directors and must be submitted by the date and time specified by the Election Committee.  No more than a single vote may be cast by a member for any given candidate; cumulative voting is prohibited. In case of a tie vote, the issue shall be determined by lot. The candidates receiving the highest number of votes are elected.
• Election by Acclamation. In the event the time for nomination by petition has passed and the number of people nominated for the Board is not more than the number of Directors, with each and every Director seat up for vote remaining uncontested, in its discretion, the Board of Directors may authorize a vote by acclamation and, without further action, declare that those nominated and qualified to be elected have been elected.

Section 7. Vacancies.  Vacancies among the Officers and the Board of Directors shall be filled by an act of the Board of Directors until the next annual election. If an Officer or Director is unable to assume office after being elected, his or her seat becomes vacant and shall be filled by the Board of Directors. Vacancies created following removal of an Officer or Director may also be filled by the Board of Directors until the next annual election or by the membership at a duly noticed and called-for meeting of the membership.

Section 8. Removal of Officers and Directors.

(a) Removal by Board for Cause. The Board of Directors shall declare vacant the office of any Officer or Director on the occurrence of any of the following events:

(1) The death of the Officer or Director.

(2) The Officer or Director has been declared of unsound mind by a final order of a court.

(3) The Officer or Director has been convicted of a felony.

(4) The Officer or Director is convicted of a breach of duty under Section 7238 of the California Corporate Code.

(5) The Officer or Director has failed to comply with the attendance requirements as set out in the H.A.R.’s policies.

(6) The Officer or Director resigns from office.

(7) The Officer or Director no longer meets the general requirements for Officers and Directors enumerated in Sections 1 and 3 hereof.

(b) Removal by Board for Violation. The Board of Directors may declare vacant the office of any Officer or Director if, during his/her term of office, an Officer or Director is determined to have violated the NAR Code of Ethics or other director or membership duty. Removal from office shall be subject to review by the Association’s Board of Directors as to the severity of the violation based solely on the final findings of fact and the appropriateness of removal from office.

(c) Removal by the Membership. The Membership may remove an Officer or Director it deems to be incapable for any reason of fulfilling the duties for which he or she is elected, under the following procedure:

(1.) A petition requiring the removal of an Officer or Director and signed by not less than one-third of the voting membership or a majority of all Directors shall be filed with the President, or if the President is the subject of the petition, with the next ranking officer, and shall specifically set forth the reasons the individual is deemed to be disqualified from further service.

(2.)  Upon receipt of the petition, and not less than twenty (20) days or more than forty-five (45) days thereafter, a special meeting of the voting membership of the H.A.R. shall be held.  The sole business of the meeting shall be to consider the charge against the Officer or Director, and to render a decision on such petition.

(3.)  The special meeting shall be noticed, including the general nature of the meeting, to all voting members at least five (5) days prior to the meeting, and shall be conducted by the President unless the President's continued service in office is being considered at the meeting. In such case, the next ranking officer will conduct the meeting. Provided a quorum is present, a three-fourths vote of members present and voting shall be required for removal from office.

Section 9. Expenditures.  The Board of Directors shall administer the day to day finances of the H.A.R. Unbudgeted capital expenditures in excess of 5% of the yearly budget may not be made unless authorized by a majority of the H.A.R. members eligible to vote and present at a duly held membership meeting. However, unbudgeted expenditures required for the protection of capital assets or to respond to emergency situations may be incurred by the Board of Directors without the prior approval of the full membership of the Association. Capital expenditures are those expenditures for long-term improvements chargeable to the capital asset account.

ARTICLE XI – MEETINGS

Section 1. Annual Meetings. The annual meeting of the Association shall be held during May or June of each year, the date, manner, place and hour to be designated by the Board of Directors.

Section 2. Meetings of Directors. The Board of Directors shall designate a regular time, manner and place of meetings. Regular meetings may be held without notice as long as the time and place are fixed by the Board. Special meetings of the Board may also be called by the President, Secretary or any two Directors in accordance with the notice provisions set forth below. In addition to actual in-person meetings, Directors may request to participate in a meeting through use of conference telephone, electronic video screen communication or electronic transmission by and to the H.A.R. by means of which all persons participating in the meeting can communicate with each other simultaneously. The requirements for requesting permission and participating remotely in meetings shall be set out in H.A.R.’s policies and procedures. Participation in such meeting shall constitute attendance and presence in person at the meeting of the person or persons so participating.

Section 3. Meetings of Members. Meetings of the members may be held at other times as the President or the Board of Directors may determine, or upon the written request of at least 50% of the members eligible to vote. The Board of Directors may designate that a meeting of the members may be conducted by electronic transmission by and to the H.A.R. or by electronic video screen communication where members have a reasonable opportunity to participate in substantial concurrence with the proceedings. Participation in such meeting shall constitute presence in person at the meeting of the person or persons so participating whether that meeting is held in a designated place or in whole or in part by electronic means.

Section 4. Notice of Meetings.

(a) Membership Meetings. Written notice of membership meetings,  stating the date, time, place (and/or means of electronic transmission by and to the H.A.R. or electronic video screen communication, if any, by which members may participate) and purpose of the meeting, shall be delivered personally, by first class mail, facsimile, electronic mail or other electronic means to the address shown on the current H.A.R. records of every member entitled to participate in the meeting at least twenty (20), but not more than 90, calendar days preceding all meetings.  H.A.R. may also publish notice of membership meetings in any publication regularly sent to all members of the H.A.R. If a special meeting is called, it shall be accompanied by a statement of the purpose of the meeting.

(b) Board of Directors Meetings.

(1) Notice of time and place of special meetings of the Board shall be delivered personally or by telephone to each Director or sent by first-class mail, fax or e-mail addressed to each director at that director's address as it is shown on the records of the H.A.R. In case the notice is mailed it shall be deposited in the United States mail at least four (4) days before the time of the holding of the meeting. In case the notice is delivered personally, by telephone, fax or e-mail, it shall be delivered personally, by telephone, fax or e-mail at least forty-eight (48) hours before the time of the holding of the meeting.  Any oral notice given personally or by telephone may be communicated either to the Director or to a person at the office of the Director whom the person giving the notice has reason to believe will promptly communicate it to the Director.  Notice may also be left on a voice mail machine.

(2) Waiver of Notice. The transactions of any meeting of the Board of Directors, however called and noticed or wherever held, shall be as valid as though a meeting had been duly held after regular call and notice if a quorum is present and if, either before or after the meeting, each of the Directors not present, signs a written waiver of notice, a consent to holding the meeting or an approval of the minutes.  The waiver of notice or consent need not specify the purpose of the meeting.  All such waivers, consents and approvals shall be filed with the corporate records or made a part of the minutes of the meeting.

Section 5. Quorum.  A quorum for the transaction of business by the general membership shall consist of twenty percent of the primary voting power represented in person at a duly held membership meeting.   A quorum for the transaction of business by the Board of Directors shall consist of 51% of the Directors.  There shall be no voting by proxy. If a quorum is present, the affirmative vote of the majority of the voting power represented at the meeting shall be the act of the body. A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of enough directors or members to leave less than a quorum as long as a majority of the requisite quorum approves of the action taken. In the absence of a quorum, any meeting may be adjourned by the majority of the voting power present.

Section 6. Action without a Meeting.

(a) Membership Meetings.  Any action that may be taken at any regular membership meeting or special membership meeting may be taken without a meeting if the association distributes a written or electronic ballot to every member entitled to vote on the matter.  Approval by written or electronic ballots shall be valid only when the number of votes cast by ballot within the time period specified equals or exceeds the quorum required to be present at a meeting authorizing the action, and the number of approvals equals or exceeds the number of votes that would be required to approve such action at a meeting had the vote been taken in a face-to-face meeting.

(b) Board of Directors Meetings. Any action that may be taken by the Board may be taken without a meeting if all Directors individually or collectively consent in writing to that action (unanimous consent). The written consents shall be filed with the corporate records or made a part of the minutes of the meeting. The action by written consent shall have the same force and effect as a unanimous vote of the Directors.

ARTICLE XII – COMMITTEES

Section 1. Standing Committees.  The President shall appoint from among the REALTOR^® or Affiliate members, subject to confirmation by the Board of Directors, the following standing committees:

Budget & Finance                                Grievance                                Member Services

Multiple Listing Service                        Nominating                              Professional Standards

Section 1.5. Discretionary Committees.  The President may appoint from among the REALTOR^® or Affiliate members, subject to confirmation by the Board of Directors, additional committees as deemed necessary. Examples are set forth below:

Affiliate Services                      Government Relations                           Education

Public Relations                       Equal Opportunity                                Long Range/Strategic Planning

Bylaws                                     Housing Opportunity Committee           Facility

Section 2. Sub-Committees, Task Forces or Work Groups.  The President may appoint from among the REALTOR^® and Affiliate members, subject to confirmation by the Board of Directors, special committees as deemed necessary.

Section 3.  Term of Committee Appointments.  Committee members shall be appointed to one year terms except that the members of the Grievance, Long Range/Strategic Planning and Professional Standards committees shall be appointed to staggered three-year terms.

Section 4. Organization.  All committees shall be of such size and shall have duties, functions and powers as assigned by the Board of Directors except as otherwise provided in these Bylaws.

Section 5. President.  The President shall be an ex-officio non-voting member of all standing committees and shall be notified of their meetings.

Section 6. Treasurer.  The Treasurer shall be an ex-officio member of the Budget & Finance Committee.

Section 7. Removal.  The President shall have the power, subject to confirmation by the Board of Directors, to remove any member from a committee.

ARTICLE XIII - FISCAL AND ELECTIVE YEAR

Section 1. Fiscal Year.  The fiscal year of H.A.R. shall be the calendar year beginning January 1^st and ending December 31^st.

Section 2.  Elective Year.  The elective year shall begin on the first day of the calendar year and end on the last day of the calendar year.

ARTICLE XIV - RULES OF ORDER

Section 1. Robert's Rules of Order.  Robert's Rules of Order, latest edition, shall be recognized as the authority governing the meetings of the H.A.R., its Board of Directors, and committees, in all instances wherein its provisions do not conflict with the California Nonprofit Corporations Code or these Bylaws.

ARTICLE XV – AMENDMENTS

Section 1.  Amendment

(a) Upon Majority Vote of Membership. These Bylaws may be amended by: (a) a majority vote of the REALTOR^® members present and qualified to vote at any meeting at which a quorum is present, provided the substance of such proposed amendment or amendments shall be plainly stated in the call for the meeting or (b) a written ballot.  If amendment is sought by written ballot, the ballot must be delivered personally, by facsimile, regular mail, electronic mail or other electronic means to all members qualified to vote, plainly state the substance of the proposed amendment or amendments, provide an opportunity to specify approval or disapproval, and give at least fourteen (14) days in which to return the ballot delivered personally, by facsimile, regular mail, electronic mail or other electronic means to H.A.R.  Amendment by written ballot will only be effective if the number of votes cast within the time specified equals or exceed the number of votes that would have been required at a member meeting.

(b) Upon Majority Vote of Board.  In addition, the Board of Directors may, at any regular or special meeting of the Board of Directors at which a quorum is present, approve amendments to the Bylaws which are mandated by N.A.R. policy or set forth in the C.A.R. Model Bylaws, or as otherwise permitted in California Corporation Code, Section 7150.

Section 2. Notice.  Notice of all meetings at which amendments are to be considered shall be delivered personally, by facsimile, electronic mail, regular mail or other electronic means to every member eligible to vote on such amendment at least twenty (20) calendar days prior to the meeting and shall plainly state the substance of the proposed amendment or amendments.

Section 3. Approval of Amendments by N.A.R.  Amendments to these Bylaws affecting the admission or qualification of REALTOR^® and Institute Affiliate members, the use of the terms REALTOR^® and REALTORS^®, or any alteration in the territorial jurisdiction of the H.A.R. shall become effective upon their approval as authorized by the Board of Directors of N.A.R.

ARTICLE XVI – DISSOLUTION

Section 1. Dissolution. Upon the dissolution of H.A.R., the Board of Directors, after providing for the payment of all obligations, shall distribute any remaining assets to C.A.R. or, within its discretion, to any other non-profit tax exempt organization.

ARTICLE XVII - MULTIPLE LISTING SERVICE

Section 1. Authority and Governing MLS Rules.  H.A.R. may maintain for the use of licensed real estate brokers and salespersons, and licensed or certified appraisers, a Multiple Listing Service (“MLS”) which shall be subject to the Bylaws of the Association and the California Model MLS Rules as from time to time amended by C.A.R., which are hereby incorporated by reference and such additional local MLS Rules and Regulations as may be hereinafter adopted by the Board of Directors. In the event of a conflict between the California Model MLS Rules and the local MLS Rules and Regulations, the local MLS Rules and Regulations will control.

Section 2. Purpose.  A Multiple Listing Service is a means by which authorized MLS broker participants establish legal relationships with other participants by making a blanket unilateral contractual offer of compensation and cooperation to other broker participants; by which information is accumulated and disseminated to enable authorized participants to prepare appraisals and other valuations of real property; by which participants engaging in real estate appraisal contribute to common databases; and is a facility for the orderly correlation and dissemination of listing information among the participants so that they may better serve their clients and the public.

Section 3. MLS Committee.  The Association President shall appoint, subject to the confirmation of the Board of Directors, a MLS Committee of at least 9 REALTOR® members.  All members of the committee shall be MLS participants or subscribers. The President shall select the MLS Committee chair and vice chair from among the MLS Committee members. The actions of the MLS Committee are subject to the approval of the Board of Directors. The MLS Chair shall serve as a voting member on the Board of Directors.

Section 4. Access to Comparable and Statistical Information.  Providing the MLS generates such publications, H.A.R. members who are actively engaged in real estate brokerage, management, mortgage financing, appraising, land development or building, but who do not participate in the MLS, are nonetheless entitled to receive, by purchase or lease, information other than current listing information that is generated wholly or in part by the MLS including “comparable” information, “sold” information and statistical reports. This information is provided for the exclusive use of H.A.R. members and individuals affiliated with H.A.R. members who are also engaged in the real estate business. Except as otherwise specified in the MLS Rules and Regulations, this information may not be transmitted, retransmitted or provided in any manner to any unauthorized individual, office or firm. H.A.R. members who receive such information are subject to the applicable provisions of the MLS Rules and Regulations whether they participate in the MLS or not.

ARTICLE XVIII - DECLARATION OF NON-DISCRIMINATION

Section 1.  Declaration of Non-Discrimination.  The Humboldt Association of REALTORS^®, Inc. is dedicated to providing equal professional service without regard to the race, color, religion, sex, handicap, familial status, or national origin of any prospective client, customer, or of the residents of any community.

MLS Rules & Regulations

November 2024

TABLE OF CONTENTS

1. Authority. 1
2. Purpose. 1
3. Multiple listing service committee. 1
4. Participation and authorized access. 1

4.1 participant. 1

4.1.1 Broker Participant. 1

4.1.2 Appraiser Participant. 2

4.1.3 Redundant Participation Qualifications. 2

4.2 subscriber. 2

4.2.1 Real Estate Subscriber. 2

4.2.2 Appraiser Subscriber. 2

4.2.3 Redundant Subscriber Qualifications. 3

4.3 clerical users. 3

4.4 notification of licenses. 3

4.5 participations not transferable. 3

4.6 Listing Broker Defined. 3

4.7 buyer broker defined. 3

4.8 appraiser defined. 3

4.9 denied application. 4

4.10 interim training. 4

4.11 subject to mls rules. 4

5. MLS FEES AND CHARGES. 4

5.1 service fees and charges. 4

5.1.1 Initial Participation Fee. 4

5.1.2 Recurring Participation Fee. 4

5.1.3 Listing Fee. 4

5.1.4 Computer Access Fee. 4

5.1.5 Certification of Nonuse. 4

5.1.6 Clerical Users. 5

5.1.7 Other Fees. 5

   5.2 RESPONSIBILITY OF FEES………….. 5

6. Compliance with rules. 5

6.1 failure to comply with any other rules. 5

6.2 failure to comply with reporting requirements. 5

7. Regional and reciprocal requirements. 5
8. Listing Procedures. 5

8.1 listings subject to rules and regulations of the service. 5

8.2 types of listings. 5

8.2.1 Scope of Service; Limited-Service Listings. 6

8.2.2 Scope of Service; MLS Entry-Only Listings. 6

8.2.3 Scope of Service; Legal Obligations. 6

8.3 types of properties. 6

8.4 compliance with California and federal law. 7

8.4.1 Time Frame Definitions. 7

8.5 mandatory submission 7

    8.5.1 Clear Cooperation..................................................................................................................................... 7

8.6 exempted listings. 7

8.7 service area. 8

8.8 change of listing information. 8

8.9 withdrawal of listing prior to expiration. 8

8.10 contingencies. 8

8.11 detail on listings filed with the service. 8

8.12 NO Compensation offers in the MLS. 8

8.13 consent to act as dual agent. 8

8.14 broker participant of real estate subscriber as principal. 9

8.15 multiple unit properties. 9

8.16 expiration, extension, and renewal of listings. 9

8.17 listings of participants or subscribers suspended, expelled, or resigned. 9

8.17.1 Due to Failure to Pay. 9

8.17.2 Due to Rules and Regulation Violation. 9

8.18 no control of commission rates or fees charged by participants. 9

8.19 right of listing broker and presentation of counter offers. 9

8.20 auction listings. 10

8.21 co-listings. 10

8.22 days on market/cumulative days on market calculation. 10

8.23 reo disclosure. 10

8.24 Short Sale (Lender Approval) Listings. 10

9. Documentation; seller’s permission; accuracy of information. 10

9.1 listing agreement and seller’s permission. 10

9.2 Listing Agreement written documentation. 10

9.3 Buyer Broker Agreement. 11

9.4 Buyer Broker Agreement with Written documentation. 11

9.5 required consumer disclosures regarding compensation. 11

9.6 accuracy of information. 11

9.7 input defined. 12

9.8 seller, buyer, purchase and sale defined. 12

10. Selling procedures. 12

10.1 showings and negotiations. 12

10.2 disclosing the existence of offers. 12

10.3 availability to show or inspect. 12

10.4 presentation of offers. 12

10.5 submission of offers and counter-offers. 12

10.6 right of buyer broker in presentation of offer. 12

10.7 buyer broker as purchaser. 13

10.8 physical presence of participant or subscriber. 13

11. Reporting Sales and other information to the service. 13

11.1 statuses……. 13

11.2 reporting of sales. 13

11.3 removal of listings for refusal/failure to timely report status changes. 14

11.4 reporting cancellation of pending sale. 14

11.5 refusal to sell. 14

11.6 reporting concessions. 14

12. Ownership of multiple listing service compilations and copyrights . 14

12.1 MLS compilation defined. 14

12.2 active listing mls compilation defined. 14

12.3 comparable data mls compilation defined. 14

12.4 authority to put listings in mls compilation. 14

12.5 photographs on the mls. 15

12.5.1 New Construction Photos. 15

12.5.2 Virtual Renovations ……………………………………………………………………...…..15

12.5.3 Virtual Staging…………………………………………………………………………..……15

12.6 copyright ownership. .15

12.7 licensing of mls compilations. 15

12.8 data base preservation……….. 15

12.9 removal of and responsibility for consent…….. 15

12.10 data privacy. 16

12.11 indemnification; limitation of liability. 16

12.12 pursuing complaints of unauthorized use of listing content. 16

12.13 participant access and entitlement to their own listing information……. 17

12.14 data feed available to participants…….. 17

12.15 brokerage back office data feeds….. 17

12.16 prohibition on creating a platform for making offers of compensation from multiple brokers. …18               

13. Prohibitions and requirements. 18

13.1 notification of California department of real estate (DRE) or california bureau

of real estate appraisers (BREA) action ………………………………………………. ……….18

13.2 violations of the law. 18

13.3 supervision of licensees and appraisers. 18

13.4 solicitation of listing filed with the mls. 18

13.5 misuse of remarks. 18

13.5.1 Remarks-Listing Content and Fair Housing Laws. 19

13.6 “for sale” signs. 19

13.7 “sold” signs and use of the term “sold”. 19

13.8 advertising of listing filed with the mls. 19

13.8.1 Advertising of Listing in Printed Neighborhood Market Report……………………………….19

13.8.2 Permission to advertise a participant’s listing in digital and social media……………………….20

13.8.3 Listing attribution in digital and social media advertising………………………………..…………20

13.9 limitations on use of association or mls information in advertising. 21

13.10 False or misleading advertising and representations; true picture standard of conduct. 21

13.11 use of mls information. 21

13.12 confidentially of mls information. 22

13.12.1 Password Fine. 22

13.12.2 Clerical Users. 22

13.13 access to comparable and statistical information. 22

13.14 display. 22

13.15 reproduction. 22

13.15.1 Copies to Prospective Purchasers. 22

13.15.2 Information Prohibited from Reproduction/Confidential Fields. 23

13.15.3 Copies of Appraisals. 23

13.15.4 Downloading into Computers. 23

13.15.5 Sold Information. 23

13.16 use of active listing information on internet. 23

13.16.1 Notification by Authorized Participants and Subscribers. 27

13.16.2 Right to Charge for Download. 27

13.16.3 Listing Broker’s Right to Opt Out of Internet Advertising of MLS Information. 27

13.17 website name and status disclosure. 27

13.18 use of the terms mls and multiple listing services. 27

13.19 virtual office websites (“VOW”). 27

13.20 applicability of rules to MLS or Association. 32

13.21 participant and subscriber standards of conduct. 32

14. Lockboxes. 32

14.1 eligibility for lockboxes. 32

14.2 mobile app use and service. 32

14.2.1 Use of Lockbox Contents. 32

14.2.2 Lockbox Requirements. 33

14.2.3 Issuing Temporary Codes. 33

14.3 written authority. 33

14.4 listing broker’s permission. 33

14.5 rules violations. 33

14.6 right to limit access. 33

14.7 removal. 33

14.8 appointment to access listings. 33

14.9 accessing listings. 34

14.10 failure to replace residential keys in lockbox. 34

14.11 securing a property. 34

14.11.1 Fines for Unsecured Property

14.12 sentrikey access sharing. 34

15. Violations of rules and regulations. 34

15.1 grounds for disciplinary action and sanctions. 34

15.2 sanctions. 34

15.3 citations. 34

15.4 security breach. 35

16. Procedures for mls rules hearings. 35
17. arbitration. 35

17.1 mandatory arbitration. 35

17.2 arbitration agreements. 35

17.3 arbitration between association members. 35

17.4 arbitration involving non-association members. 35

17.5 same firm. 36

17.6 timing. 36

18. Nonpayment of mls fees. 36

18.1 nonpayment of mls fees. 36

18.2 disputed amounts. 36

18.3 reinstatement. 36

19. Changes in rules and regulations. 36
20. MISCELLANEOUS MLS RULES ................................................................................................................. 36

. 1. exhibit A – mls policy statements.............................................................................................................. 36

2. mls listing policy statements...................................................................................................................... 37

. 3. mls participation policy statements......................................................................................................... 38

. 4. mls sold policy statements.......................................................................................................................... 38

. 5. mls tour policy statements.......................................................................................................................... 38

. 6. mls virtual open house policy..................................................................................................................... 39

21. CITATION POLICY.......................................................................................................................................... 39

exhibit c.................................................................................................................................................................. 39

Tier One.................................................................................................................................................................. 40

Tier two.................................................................................................................................................................. 41

tier three............................................................................................................................................................... 42

1. AUTHORITY. The Association of REALTORS^® shall maintain for the use of licensed real estate brokers, salespersons, and licensed or certified appraisers a Multiple Listing Service (hereinafter also referred to as "MLS" or "service"), which shall be subject to the bylaws of the Association of REALTORS^® and such rules and regulations as may be hereinafter adopted by the Board of Directors.

2. PURPOSE. A Multiple Listing Service is a means by which cooperation among Participants is enhanced; a means by which information is accumulated and disseminated to enable authorized Participants to prepare appraisals analyses and other valuations of real property for bona fide clients and customers; a means by which Participants engaging in real estate appraisal contribute to common databases; and is a facility for the orderly correlation and dissemination of listing information among the participants so that they may better serve their clients and the public.

3. MULTIPLE LISTING SERVICE COMMITTEE. The Multiple Listing Service shall be governed by the Multiple Listing Service Committee in accordance with the bylaws of the Association and such rules and regulations as adopted by the Board of Directors. All actions shall be subject to the approval of the Board of Directors.

4. PARTICIPATION AND AUTHORIZED ACCESS.

4.1   Participant.  A Participant is any individual who applies and is accepted by the MLS, meets and continues to meet all the following requirements of either a Broker Participant or an Appraiser Participant as defined below in sections 4.1.1 and 4.1.2.

4.1.1 Broker Participant. A Broker Participant is a participant who meets the following requirements:

(a) The individual or corporation, for which the individual acts as a broker/officer, holds a valid California real estate broker's license.

(b) The individual is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal.

(c) The individual or corporation for which the individual acts as a broker/officer cooperates with other brokers*.

(d) The individual has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended.

(e) The individual pays all applicable MLS fees; and

(f) The individual agrees to watch an online training webinar or attend a live training within 30 days after access has been provided.  Individuals are to be allowed to complete any mandated orientation program remotely.

* Note:  Mere possession of a broker’s license is insufficient to qualify for MLS participation.  Rather, the requirement that an individual or firm cooperates means that the Participant actively endeavors during the operation of its real estate business to list real property of the type listed on the MLS, shares information on listed property, and makes property available to other brokers for showing to prospective purchasers and tenants when it is in the best interest of their client(s) “Actively” means on a continual and on-going basis during the operation of the Participant’s real estate business.  The “actively” requirement is not intended to preclude MLS participation by a Participant or potential Participant that operates a real estate business on a part-time, seasonal, or similarly time-limited basis or that has its business interrupted by periods of relative inactivity occasioned by market conditions.  Similarly, the requirement is not intended to deny MLS participation to a Participant or potential Participant who has not achieved a minimum number of transactions despite good faith efforts.  Nor is it intended to permit an MLS to deny participation based on the level of service provided by the Participant or potential Participant if the level of service satisfies state law.

The key is that the Participant or potential Participant actively endeavors to cooperate concerning properties of the type listed in the MLS in which participation is sought. Cooperation is the obligation to share information on listed property and to make the property available to other brokers for showing to prospective purchasers and tenants when it is in the best interests of their client(s). This requirement does not permit an MLS to deny participation to a Participant or potential Participant that operates a Virtual Office Website (“VOW”) [See Rule 13.19] (including a VOW that the Participant uses to refer customers to other Participants) if the Participant or potential Participant actively endeavors to cooperate. An MLS may evaluate whether a Participant or potential Participant “actively endeavors during the operation of its real estate business” to cooperate only if the MLS has a reasonable basis to believe that the Participant or potential Participant is not doing so.

These requirements shall be applied in a nondiscriminatory manner to all Participants and potential Participants.

4.1.2 Appraiser Participant.  An Appraiser Participant is a Participant who meets the following requirements:

(a)  The individual holds a valid California Appraisers certification or license, appraiser apprentice certification or license issued by the Bureau of Real Estate Appraisers (“BREA”) (also referred to as “Office” of Real Estate Appraisers or OREA); and

(b)  The individual is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal; and

(c)  The individual has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended.

(d)  The individual pays all applicable MLS fees; and

(d) The individual agrees to watch an online training webinar or attend a live training within 30 days after the access has been provided. Individuals are to be allowed to complete any mandated orientation program remotely.

4.1.3 Redundant Participation Qualifications.  Participant type (Broker or Appraiser) must be selected during application for participation.  A Participant with both a California Real Estate Broker’s license and a California Appraiser’s certification or license must join as a “Broker Participant” to be a listing broker under Section 4.7 or a buyer broker under Section 4.8.

       4.2 Subscriber.  A Subscriber is an individual who applies and is accepted by the MLS, meets and continues to meet all the following requirements of either an R.E. Subscriber or Appraiser Subscriber as defined below in sections 4.2.1 and 4.2.2:

4.2.1  Real Estate Subscriber.  An R.E. Subscriber who meets all the following requirements:

(a) The individual holds a valid California real estate salesperson’s or broker's license;

(b) The individual is employed by or affiliated as an independent contractor with a Broker Participant ;

(c) The individual has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended;

(d) The individual pays all applicable MLS fees; and

(e) The individual agrees to watch an online training webinar or attend a live training within 30 days after access has been provided. Individuals are to be allowed to complete any mandated orientation program remotely.

4.2.2  Appraiser Subscriber.  An Appraiser Subscriber is a Subscriber who meets all the following requirements.

(a) The individual holds a valid California real estate Appraiser’s certification or license issued by the BREA;

(b) The individual is employed by or affiliated as an independent contractor with an Appraiser Participant;

(c) The individual has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended;

(d) The individual pays all applicable MLS fees; and

(e) The individual agrees to watch an online training webinar or attend a live training within 30 days after access has been provided. Individuals are to be allowed to complete any mandated orientation program remotely.

4.2.3 Redundant Subscriber Qualifications.  Subscriber type, real estate or appraiser, must correlate to the Participant type.  A Subscriber who is both a California Real Estate Licensee and a California certified or licensed appraiser must join as an R.E. Subscriber unless their employing or affiliated Participant is an Appraiser Participant.

4.3   Clerical Users.  Clerical Users are Individuals (whether licensed or unlicensed) under the direct supervision of an MLS Participant or Subscriber who perform only administrative and clerical tasks that do not require a real estate license or an Appraiser’s certificate or license.  Clerical Users may join the MLS through their employing Participant or Subscriber.  The Participant shall be responsible for the conduct of the Clerical User.  Clerical Users shall be linked in the system to at least one Participant.  They may also be linked to a particular Subscriber.  Each Participant and Subscriber shall provide the MLS with a list of all Clerical Users employed by or affiliated as independent contractors with the Participant or Subscriber and shall immediately notify the MLS of any changes, additions, or deletions from the list. Clerical Users shall also be subject to the following requirements:

• Clerical Users are given a unique passcode;
• Clerical Users must have any fees paid in full
• Participant or Subscriber linked to the Clerical User may be fined, disciplined or terminated for Clerical User’s misconduct;
• Clerical Users shall sign a written agreement to abide by the rules and regulations of the MLS; and
• Clerical Users agree to watch an online training webinar or attend a live training within 30 days after access has been provided. Individuals are to be allowed to complete any mandated orientation program remotely.

      4.4   Notification of Licensees. Each Participant shall provide the MLS with a list of all real estate licensees, or certified or licensed appraisers employed by or affiliated as independent contractors with such Participant or with such Participant's firm and shall immediately notify the MLS of any changes, additions or deletions from the list.  This list shall include any licensees under any broker associate affiliated with the Participant.

4.5 Participation Not Transferable.  Participation in the MLS is on an individual basis and may not be transferred or sold to any corporation, firm or other individual.  Any reimbursement due of MLS fees is a matter of negotiation between those transferring the business or determined by internal contract arrangement within the firm.  However, providing the first Participant consents, the Association shall allow a firm to designate a different person as a Participant within the firm without additional initial participation fees.  The Association may charge an administrative fee for this service of reassigning Participants within a firm.

      4.6   Listing Broker Defined.  For purposes of these MLS rules, a listing broker is a Broker Participant who is also a seller’s agent per Business and Professions Code 10000 et. seq. who has obtained a written listing agreement by which the broker has been authorized to act as an agent to sell or lease the property or to find or obtain a buyer or lessee.  Whenever these rules refer to the listing broker, the term shall include the R.E. Subscriber, or a licensee retained by the listing broker but shall not relieve the listing broker of responsibility for the act or rule specified.

      4.7   Buyer Broker Defined.  For purposes of these MLS rules, a buyer broker is a Broker Participant who is also a buyer’s agent as defined in Business and Professions Code 10000 et. seq. who acts in cooperation with a listing broker to find or obtain a buyer or lessee.  The buyer broker may be the agent of the buyer or, if a sub-agency is offered and accepted, may be the agent of the seller.  Whenever these rules refer to the buyer broker, the term shall include the R.E. Subscriber or licensee retained by the buyer broker but shall not relieve that Broker Participant of responsibility for the act or rule specified.

4.8   Appraiser Defined.  For purposes of these MLS rules, an appraiser is an appraiser participant, appraiser subscriber, or a licensed or certified appraiser acting for the appraiser participant or appraiser subscriber.  Whenever these rules refer to the appraiser, the term shall also include the appraiser subscriber or a licensed or certified appraiser employed by or affiliated as an independent contractor with the firm that employs the appraiser but shall not relieve the appraiser participant of responsibility for the act or rule specified.

      4.9 Denied Application.  In the event an application for participation in the MLS is rejected by the MLS, the applicant, and his or her broker, if applicable, will be promptly notified in writing of the reason for the rejection.  The broker shall have the right to respond in writing, and to request a hearing under the California Code of Ethics and Arbitration Manual.

4.10 Interim Training. Participants and Subscribers may be required, at the discretion of the MLS, to complete additional training of not more than four (4) classroom hours in any twelve (12) month period when deemed necessary by the MLS to familiarize Participants and Subscribers with system changes or enhancement and/or changes to MLS rules or policies.  Participants and Subscribers must be allowed to complete any mandated additional training remotely.

      4.11 Subject to MLS Rules. By becoming and remaining a Participant, Subscriber, or Clerical User, each Participant, Subscriber, and Clerical User agrees to be subject to these MLS rules and regulations, the enforcement of which are at the sole discretion of the applicable Committee/Board of Directors.

5. MLS FEES AND CHARGES.

      5.1   Service Fees and Charges.   The MLS committee, subject to approval of the Board of Directors, shall establish a schedule of MLS Fees applicable to the MLS, which may include the following service fees and charges:

5.1.1 Initial Participation Fee: Applicants for MLS services may be assessed initial participation and or application fees.  (Application fee of $500 for Brokers and $300 for Agents are assessed for participation)

        5.1.2 Recurring Participation Fee: The recurring participation fee of each Broker Participant shall be an amount times the total number of (1) the Broker Participant plus (2) the number of salespersons who have access to and use of the MLS, whether licensed as brokers or salespersons, who are employed by or affiliated as independent contractors with such participant or the participant’s firm. If more than one principal broker in the same firm elects to be a participant, the number of salespersons in the firm will only be used once in calculating the recurring participation fees. A Broker Participant is not obligated to pay recurring participation fees or other MLS fees and charges for real estate licensees affiliated with the Participant or the Participant’s firm if such licensees work out of a branch office located outside the MLS service area of the Participant or the Participant’s firm that does not participate in or otherwise use the MLS.  The recurring participation fee of each Appraiser Participant shall be an amount times the total number of (1) the Appraiser Participant plus (2) the number of Appraisers who have access to and use of the MLS, who are employed by or affiliated as independent contractors with such Participant or the Participant’s firm. If more than one principal Appraiser in the same firm elects to be a Participant, the number of Appraisers in the firm will only be used once in calculating the recurring participation fees. An Appraiser Participant is not obligated to pay recurring participation fees or other MLS fees and charges for licensed or certified Appraisers affiliated with the Participant or the Participant’s firm if such Appraisers work out of a branch office located outside the MLS service area of the Participant or the Participant’s firm that does not participate in or otherwise use the MLS.  The recurring participation fee is $100 per subscriber due January 1^st of each year.

5.1.3 Listing Fee: A Broker Participant shall pay a listing fee of $5.00 for each listing submitted by the Broker Participant or submitted by any R.E. Subscriber on behalf of the Participant.

5.1.4 Computer Access Fee:  The monthly computer access fee of $62.50 for each participant shall be an amount established by the MLS committee and approved by the Board of Directors equal to the total number of Subscribers and salespersons licensed or certified as Appraisers, brokers, or salespersons, who are employed by or affiliated as independent contractors with such Participant.

5.1.5 Certification of Nonuse.  Participants may be relieved from payment under sections 5.1.2 and 5.1.5 hereunder by certifying to the MLS that a licensed or certified person in the office is engaged solely in activities that do not require a real estate license or certification (clerical, etc.), or that the real estate licensee or licensed or certified appraiser will not use the MLS or MLS compilation in any way.  H.A.R. will review all MLS Extenuating Circumstances Leave Waivers on a case-by-case basis.  In the event a real estate licensee or appraiser is found in violation of the nonuse certification, the Participant shall be subject to fees dating back to the date of the certification. The Participant and Subscriber may also be subject to any other sanction imposed for violation of MLS rules including, but not limited to a citation and suspension or termination of participation rights and access to the service.

5.1.6 Clerical Users.  The Participant shall pay the applicable MLS fees for computer access and a special passcode for Clerical Users in an amount established by the MLS committee and approved by the Board of Directors.  (An application fee of $20.00 is charged for Clerical Users and a monthly $10 computer access fee.)

5.1.7 Other Fees.  Other fees that are reasonably related to the operation of the MLS may be adopted.

5.2 Responsibility for Fees.  In the event the MLS allows for direct billing or payment by a Subscriber for MLS fees, such fees shall be the obligation of that Subscriber. The Subscriber may also choose to designate their MLS fees to the Participant with which they are affiliated.  If the MLS does not allow for direct billing or payment by a Subscriber for MLS fees, such fees shall be the responsibility of the Participant with whom the Subscriber was affiliated with when the MLS fees were incurred.  This section does not preclude in any way the ability of Participants to pursue reimbursement of MLS fees from current or past Subscribers or to establish agreements with Subscribers regarding payment or reimbursement of MLS fees.

6. COMPLIANCE WITH RULES: The following action may be taken for noncompliance with rules:

      6.1   Failure to comply with Any Other Rules.  For failure to comply with any other rules, the provisions of Sections 16 and 17 shall apply.

6.2   Failure to Comply with Reporting Requirements.  For failure to comply with the reporting requirements of the Multiple Listing Service, the participant will be subject to a fine under Citation Policy, Tier 1: (a) Late Listing Submission, (b) Late Pending Submission, and (c) late Sold Submission.

7. REGIONAL AND RECIPROCAL AGREEMENTS. The MLS committee may recommend and the Board of Directors of the Association of REALTORS® may approve and enter into reciprocal or regional agreements with other Associations of REALTORS® or MLS Corporations owned solely by Associations of REALTORS® to allow the other MLS Participants and Subscribers access to the service in exchange for comparable benefits to the Participants and Subscribers of this service.  In the event of such agreements, the Participants and Subscribers agree to abide by the respective rules of the other MLSs receiving and publishing a listing according to such agreements and to abide by such rules when accessing the other MLS's database.

8. LISTING PROCEDURES.

      8.1   Listings Subject to Rules and Regulations of the Service.  Any listing filed with the service is subject to the rules and regulations of the service.

      8.2   Types of Listings; Responsibility for Classification. The service shall accept the exclusive right to sell, seller, reserved, open, and probate listings under California Business and Professions Code Sections 10018.14 through 10018.17 and Probate Code Section 10150 inclusive that satisfy the requirements of these MLS rules.  The exclusive right to sell listings that contain any exceptions whereby the owner need not cooperate with particular individuals shall be classified for purposes of these rules as an exclusive right to sell listing, but the listing broker shall notify all participants of the exceptions.  It shall be the responsibility of the submitting Broker Participant and R.E. Subscriber to classify the type of listing submitted and, if necessary, to obtain a legal opinion to determine the correct classification.  The MLS shall not have an affirmative responsibility to verify such legal classifications. However, the MLS shall have the right to have legal counsel decide as to the classification and if the listing broker does not reclassify it accordingly, the MLS shall have the right to reject or remove any such listing that it determines falsely represents the classification of listing type.

  8.2.1 Scope of Service; Limited Service Listings.  Limited Service listings are listings whereby the listing broker, according to the listing agreement, will not provide one, or more, of the following services:

(a)      Provide buyer brokers with any additional information regarding the property not already displayed in the MLS but instead gives buyer brokers authority to contact the seller(s) directly for further information;

(b)  Accept and present to the seller(s) offers to purchase procured by buyer brokers but instead                    gives buyer brokers authority to present offers to purchase directly to the seller(s);

(c)     Advise the seller(s) as to the merits of offers to purchase;

(d)     Assist the seller(s) in developing, communicating, or presenting counteroffers; or

(e)     Participate on the seller(s) behalf in negotiations leading to the sale of the listed property; and

The first line of the public remarks must state: “This is a Minimum Service Listing, please call your

agent for details. “Said Limited Service listings will be identified with an appropriate code or symbol (ex. LS) in the MLS compilations so potential buyer brokers will be aware of the extent of the services the listing broker will provide to the seller(s), and any potential for buyer brokers being asked to provide some or all of these services to listing broker’s clients, before initiating efforts to show or sell the property.

• Scope of Service; MLS Entry-Only Listings. MLS Entry-Only listings are listings whereby the listing broker, according to the listing agreement, will not provide any of the following services:

• Provide buyer brokers with any additional information regarding the property not already displayed in the MLS but instead gives buyer brokers authority to contact the seller(s) directly for further information;

(b)     Accept and present to the seller(s) offers to purchase procured by buyer brokers but instead gives buyer brokers authority to present offers to purchase directly to the seller(s);

(c)     Advise the seller(s) as to the merits of offers to purchase;

(d)     Assist the seller(s) in developing, communicating, or presenting counteroffers; or

(e)     Participate on the seller(s) behalf in negotiations leading to the sale of the listed property; and

The first line of the public remarks must state: “This is an MLS Entry-Only Listing, please call your agent for details”. Said MLS Entry-Only listings will be identified with an appropriate code or symbol (ex. MLS-Only) in the MLS compilations so potential buyer brokers will be aware of the extent of the services the listing broker will provide to the seller(s), and any potential for buyer rating brokers being asked to provide some or all of these services to listing broker’s clients, before initiating efforts to show or sell the property.

8.2.3 Scope of Service: Legal Obligations.  The scope of service classifications outlined in these rules do not alter any obligations otherwise imposed on real estate licensees under California law including Department of Real Estate regulations, statutory law, and common law.  The MLS’s acceptance or publication of listings eligible for MLS submission in no way constitutes a validation that said obligations have been met.

8.3   Types of Properties; Responsibility for Classification.  The MLS shall accept listings that satisfy the requirements of these rules on the following types of property:

8.3.1 Residential

8.3.2 Multi-Family

8.3.3 Land

8.3.4 Business Opportunity/Commercial

8.3.5 Mobile Homes

It shall be the responsibility of the Broker Participant and R.E. Subscriber to properly classify the type of property listed, and if necessary, obtain a legal opinion to determine the correct classification.  By classifying the type of property listed, the listing broker certifies that the listing falls under the classification designated.  The MLS shall have no affirmative responsibility to verify the property type of any listing filed with the service.  However, the MLS shall have the right to have legal counsel decide as to the classification of the property type and if the listing broker does not reclassify it accordingly, the MLS shall have the right to reject or remove any such listing that it determines falsely represents the classification of property type of the listing.

8.4   Compliance with California and Federal Law.  Notwithstanding any other provision of these MLS rules and regulations to the contrary, the service shall accept any listing required under California or federal law.

8.4.1 Time Frame Definitions.  Unless otherwise expressly indicated, where compliance time frames set forth ”days,” “days” mean calendar days; “days after” means the specified number of calendar days after the occurrence of the event specified, not counting the calendar date on which the specified event occurs, and ending at 11:59 p.m. on the final day; and “days prior” means the specified number of calendar days before the occurrence of the event specified, not counting the calendar date on which the specified event is scheduled to occur. Where “business days” are expressly referenced, “days” exclude Saturdays, Sundays and all recognized federal and state holidays. Where “business days” are expressly referenced, “days” exclude Saturdays, Sundays and all recognized federal and state holidays.

8.5 Mandatory Submission.  Within 2 days after all necessary signatures of the seller(s) have been obtained on the listing or at the beginning date of the listing as specified in the contract, whichever is later, on any exclusive right to sell or seller reserved listing agreement for the sale of one to four-unit residential property and vacant lots located within the service area of the MLS, Broker Participants must input the listing to the service for cooperation with other Participants. Only those listings that are within the service area of the MLS must be inputted.  Open listings, rental listings, or listings of property located outside the MLS's service area (see Section 8.7) are not required by the service but may be input at the Broker Participant’s option.

8.5.1 Clear Cooperation. 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. Public marketing or advertising includes but is not limited to, conveying or displaying any information about the property or its availability for sale through or on any: windows, signs, public-facing websites, social media, brokerage or franchise-operated websites (including IDX and VOW), digital communications marketing (ex: email, text or phone blasts, social media messaging), multi-brokerage or franchise listing sharing networks, flyers or written material or on any applications available to the public or through conducting an open house. The public would include anyone outside the broker(s) and agent(s) licensed within a single listing brokerage and their clients, as further described in Section 8.6) Clear Cooperation Fine is $200 per incidence.

8.6 Exempted Listings.  If the seller refuses to permit the listing to be disseminated by the service on any exclusive right to sell or seller reserved listing agreement for the sale of one to four unit residential property and vacant lots located within the service area of the MLS, the listing broker shall submit to the service within 1 business day after all necessary signatures of the seller(s) have been obtained on the listing agreement or at the beginning date of the listing as specified in the contract, whichever is later, a certification signed by the seller stating that the seller instructs listing broker to do no public marketing or advertising (as public marketing or advertising is defined in Section 8.5), that the only scope of permissible promotion of the property will occur internally within the brokerage and consist of direct one-on-one communication between the listing broker and licensees affiliated with the listing brokerage and their respective clients (i.e. “office exclusive”) and that seller refuses to authorize the listing to be disseminated by the service.  C.A.R. Standard Form MLSA or equivalent exclusion form may be used for this certification, but in any event, said certification shall include the aforementioned required statements as well as an advisory to seller that, in keeping the listing off the MLS,

• real estate agents and brokers from other real estate offices, and their buyer clients, who have access to the MLS may not be aware seller’s property is for sale,
• seller’s property will not be included in the MLS’s download to various real estate Internet sites that are used by the public to search for property listings,
• real estate agents, brokers and members of the public may be unaware of the terms and conditions under which seller is marketing the property, and
• any reduction in the exposure of the property may lower the number of offers made and negatively impact the sales price. In the event, that the listing broker commences any public marketing or advertising on an exempted listing, submission to the MLS for dissemination is required within one business day thereafter per Section 8.5. Upon written direction, broker of seller to begin marketing the property to the public is listing day one.

8.7   Service Area. The MLS’s service area shall be determined by the MLS Committee, subject to approval by the Board of Directors.  If the Association has entered into regional MLS agreements or a regional MLS corporation with other MLSs and has enlarged the service area as part of the agreement or corporation, submission of the type of listings specified in section 8.5 is mandatory for the area covered by the combined service areas of the Association's signatory to the regional MLS agreement or part of the regional MLS corporation.

8.8     Change of Listing Information.  Listing brokers shall input any change in listing information, including the listed price or other change in the original listing agreement to the MLS within forty-eight (48) hours (excepting weekends, holidays, and postal holidays) after the authorized change is received by the listing broker.  By submitting such changes to the MLS, the listing broker represents that the listing contract has been modified in writing to reflect such change or that the listing broker has obtained other legally sufficient written authorization to make such change.  MLS tracking of price change information, if any, shall be classified as “non-confidential” to allow Participants and Subscribers to make such information available to clients or customers according to Sections 13.15.1 (Client Copies) and 13.19 (VOWs).  [Whether display of this field is permitted for advertising purposes, including IDX display outlined in Section 13.16, is at the discretion of the MLS].

8.9   Withdrawal of Listing Prior to Expiration.  The listing broker may withdraw listings of property from the MLS before the expiration date of the listing agreement provided notice is filed with the service by the listing broker which authorizes the withdrawal and certifies the seller has authorized the withdrawal.  The MLS may require the listing broker to provide a copy of such written permission.  Sellers do not have the unilateral right to require the MLS to withdraw a listing without the listing broker’s concurrence.  However, the MLS reserves the right to remove a listing from the MLS database if the seller can document that his or her listing agreement with the listing broker has been terminated or is invalid.

8.10 Contingencies.  All properties with accepted offers must be pending.  For contingent offers with a seller right to cancel (C), the first line of the public remarks must state “accepted contingent offer with seller right to cancel with __ days notice from offer acceptance.”  These listings can be marked C for contingent and will show on active search results.  There is a 3 field in the pending screen for properties awaiting third-party approvals. The first line of public remarks must explain, such as “Awaiting third party approval, accepting offers” or “Awaiting third party approval, no further offers will be accepted”.  There will be a one-email warning regarding the pending status C and 3 having the required wording in the public remarks, after which a $50.00 fine is assessed. (added 10/15/12)

      8.11 Detail on Listings Filed with the Service.  All listings input into the MLS shall be complete in every detail, as specified on the property data form including full gross listing price, listing expiration date, and any other information required to be included as determined by the MLS committee as approved by the Board of Directors. For residential listings, the property address must be input into the MLS where one exists at the time the listing is filed, or the parcel identification number must be input instead if the property address is unavailable. If no address or parcel identification number is available at the time the residential listing is filed, the listing must, at a minimum, contain a legal description of the property sufficient to describe the location of the property. Incomplete listings shall be ineligible for publication in the MLS and subject to immediate removal.

8.12 No Compensation Specified on MLS Listings; Participants, Subscribers, and their sellers are prohibited from making offers of compensation to buyer brokers and other buyer representatives in the MLS. Participants and Subscribers are prohibited from disclosing in the MLS, in any way, the total commission negotiated between the seller and the listing broker, or total broker compensation (i.e. combined compensation to both listing brokers and buyer brokers). The MLS reserves the right to remove a listing from the MLS database that does not conform to the requirements of this section. This rule does not prevent sellers from offering buyer concessions on the MLS so long as such concessions are not limited to or conditioned on the retention of or payment to the Buyer Broker or other buyer representative.

       8.13 Consent to Act as Dual Agent. No buyer broker shall act as both an agent of the buyer and the seller without first contacting the listing broker and ascertaining that the seller has consented to such dual agency.

8.14 Broker Participant or Real Estate Subscriber as Principal. If a listing broker has any interest in the property, the listing of which is to be disseminated through the service, that person shall disclose that interest on the MLS.

8.15 Multiple Unit Properties. All properties which are to be sold or which may be sold separately must be indicated individually in the MLS and will be published separately.  When part of a listed property has been sold the listing broker shall input the appropriate changes on the MLS.

8.16 Expiration, Extension, and Renewal of Listings. Listings shall be changed to the appropriate off-market status on the expiration date specified on the listing unless the listing is extended or renewed by the listing broker.  The listing broker shall obtain written authorization from the seller(s) before filing any extension or renewal of a listing. Any renewals or extensions received 30 days after the expiration date of the original listing shall be treated as a new listing and will be subject to any fees applicable to new listings.  At any time and for any reason, the MLS has the right to request a copy of the seller’s written authorization to extend or renew a listing.  If a listing broker is requested to provide a copy of such authorization and does not do so within twenty-four (24) hours of the request, the listing shall be subject to immediate removal from the MLS.

       8.16.1 Extension for Protected Buyer. In the event, that a listing broker’s listing has been canceled or expired but a commission extension right for a protected buyer has been timely activated in the listing agreement and the listing broker represents the seller in the said transaction, the listing broker may be considered the “listing broker” for MLS reporting of sale if satisfactory documentation is presented to MLS.

      8.17 Listings of Participants or Subscribers Suspended, Expelled or Resigned.

8.17.1 Due to Failure to Pay. When a Participant or Subscriber of the MLS is suspended or expelled from the service for failure to pay appropriate MLS fees or charges, or if the Participant or Subscriber resigns from the service, the MLS shall cease to provide services to such Participants or Subscriber, including continued inclusion of listings in the MLS compilation of current listing information.  In the event listings are removed from the MLS according to this section, it shall be the sole responsibility of the Participant to notify the seller(s) that the property is no longer listed in the MLS.

8.17.2 Violation of MLS Rules.  When a Participant or Subscriber is suspended or expelled from the service for a violation of the MLS rules and regulations, the MLS shall cease to provide services to such Participant or Subscriber except that the listings in the MLS at the time of suspension or expulsion shall, at the suspended or expelled Participant's option, be retained in the MLS compilation of current listing information until sold, withdrawn or expired, and shall not be renewed or extended by the MLS beyond the termination date of the listing agreement in effect when the expulsion became effective.  In the event listings are removed from the MLS according to this section, it shall be the responsibility of the Participant to notify the seller(s) that the property is no longer listed in the MLS.  If a suspended or expelled Participant opts to keep listings in the MLS until sold, withdrawn, or expired under this Section 8.20.2, the Participant must comply with all applicable MLS rules and regulations during such time or the MLS may immediately remove the listings from further display.

      8.18 No Control of Commission Rates or Fees Charged by Participants. The MLS shall not fix, control, recommend, suggest, or maintain commission rates or fees for services to be rendered by Participants.  Further, the MLS shall not fix, control, recommend, suggest, or maintain the division of commissions or fees between cooperating Participants or between Participants and non-participants.

      8.19 Right of Listing Broker and Presentation of Counter Offers.  The listing broker has the right to participate in the presentation of any counter-offer made by the seller or lessor.  The listing broker does not have the right to be present at any discussion or evaluation of a counter-offer by the purchaser or lessee (except where the buyer broker is a subagent).  However, if the purchaser or lessee gives written instructions to the buyer broker that the listing broker is not present when a counter-offer is presented, the listing broker has the right to a copy of the purchaser's or lessee's written instructions.

8.20 Auction Listings. Only auction listings that comply with these MLS Rules and Regulations, including, but not limited to Sections 8.13 and 8.14, may be submitted to the Service. Auction listings entered into the MLS system shall have listing contracts as required under these rules be clearly labeled as auction listings and provide all the terms and conditions of the auction. The first line of the public remarks must state “This is an auction listing, please call your agent for details.”  Auction listings shall further specify the following in agent remarks b-h.

(a)  The list price, which shall be the seller’s minimum acceptable bid price;

(b)  The date, time, and place of the auction;

(c)  All required procedures for Participants/Subscribers to register their representation of a

potential bidder;

(d)  The compensation to be paid to the Participant representing the successful bidder; if any;

(e)  The time or manner in which potential bidders may inspect the listed property;

(f)  Whether or not the seller will accept a purchase offer before the scheduled auction and if so,

the compensation to be paid to the cooperating Participant in the event of such a pre-auction

sale as well as any other necessary pre-auction details;

(g)  Any other material rules or procedures for the auction;

(h)  Auction website addresses may not be displayed anywhere outside of private remarks.

8.21 Co-Listings.  Only the listings of Participants and Subscribers will be accepted by the MLS.  Inclusion of co-listings where the co-listing broker/agent is not a Participant or Subscriber in the MLS is prohibited.

8.22 Days on Market/Cumulative Days on Market Calculation. The calculation of Days on Market (DOM) is based on the listing number assigned to the property by the MLS and is tied to the brokerage firm holding the listing. The calculation of Cumulative Days on Market (CDOM) is based on the Assessor’s Parcel Number (“APN”) until the earlier of a change of ownership or the property is not available for sale and no listing agreement is in effect for a period of 90 days or more.  MLS tracking of this field, if any, shall be classified as “non-confidential” to allow Participants and Subscribers to make such information available to clients or customers pursuant to Sections 13.15.1 (Client Copies) and 13.19 (VOWs). [Whether display of this field is permitted for advertising purposes, including IDX display outlined in Section 13.16, is at the discretion of the MLS].

8.23 REO Disclosure.  Participants and Subscribers submitting foreclosure, bank-owned, or real estate-owned (“REO”) listings to the service shall disclose said status upon submission of the listing to the service.

8.24 Short Sale (Lender Approval) Listings. Participants must disclose potential short sales (defined as a transaction where title transfers, where the sale price is insufficient to pay the total of all liens and costs of sale, and where the seller does not bring sufficient liquid assets to the closing to cure all deficiencies) when reasonably known to the listing broker.

9. DOCUMENTATION; PERMISSION; ACCURACY OF INFORMATION.

9.1   Listing Agreement and Seller's Permission.  Before submitting a listing to the service, the listing broker shall obtain the written agreement of the seller expressly granting the listing broker authority to:  (1) file the listing with the service for publication and dissemination to those authorized by the MLS; (2) act as a representative for the seller; (3) abide by the rules of the service; (4) provide timely notice of status changes of the listing to the service; (5) provide sales information including selling price to the service upon sale of the property for publication and dissemination to those authorized by the MLS and (6) publish sales information after the final closing of a sales transaction per these MLS rules (See Section 11.1).

9.2   Listing Agreement Written Documentation.  Listing brokers filing listings with the service shall have a written listing agreement with all necessary signatures in their possession. All necessary signatures are those needed to create an enforceable listing, which generally means all named signatories to the listing agreement.  In the event there are known additional property owners did not make a signatory to the listing, the listing broker shall disclose said fact on the service and state whether the listed seller will make the sale contingent on the consent of the additional property owners. Only listings that create a representation agreement between the seller and the Broker Participant/listing broker are eligible for submission to the service.  By inputting a listing to the service, Broker Participant and R.E. Subscribers represent that they have in their possession such written agreements establishing the represented type of listing agreement.  The service shall have the right to demand a copy of such written listing agreements and verify the listing's existence and adequacy at any time.  The service shall also have the right to demand a copy of the seller's written authorization required under these rules.  If the Broker Participant or R.E. Subscriber fails to provide documentation requested by the service within 24 hours, the service shall have the right to immediately withdraw any listings from the database in addition to disciplining the Participant and Subscriber for a violation of MLS rules.

9.3   Buyer Broker Agreement. All MLS Participants and R.E. Subscribers working with a buyer must enter into a written agreement with the buyer before touring a home. The written agreement must include (1) a specific and conspicuous disclosure of the amount or rate of compensation the Participant will receive or how this amount will be determined to the extent that the Participant will receive compensation from any source; (2) the amount of compensation in a manner that is objectively ascertainable and not open-ended; (3) a term that prohibits the Participant from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and (4) a conspicuous statement that broker fees and commissions are not set by law and are fully negotiable. See citation policy Tier 3, #20.

9.4   Buyer Broker Agreement Written Documentation. The service shall have the right to demand from an MLS Participant a copy of any written buyer broker agreement satisfying the requirements of Rule 8.3 whenever an MLS Participant or R.E. Subscriber working with the buyer tours a property listing in the MLS. If the Broker Participant or R.E. Subscriber fails to provide the agreement requested by the service within 1 day after the service’s request or if the agreement provided to the service does not include all the terms required in Rule 9.3, the service shall have the right to discipline the Participant or Subscriber for a violation of MLS Rules.

9.5   Required Consumer Disclosures Regarding Compensation. Participants and Subscribers must disclose to prospective sellers and buyers that broker compensation is not set by law and is fully negotiable. This must be included in conspicuous language as part of any listing agreement, buyer written agreement, and pre-closing disclosure documents (if any, ad except those documents that are government-specified). Participants and Subscribers, in representing sellers, must also conspicuously disclose in writing to sellers, and obtain the seller’s authority for, any payments or offer of payment that the listing Participant or seller will make to another broker, agent, or other representative (e.g. real estate attorney) acting for buyers. This discloser must include the amount or rate of any such payment and be made in writing in advance of any payment or agreement to pay another broker acting for buyers.

9.6   Accuracy of Information; Responsibility for Accuracy.  By inputting information into the MLS computer database, the listing broker represents that the information input is accurate to the best of the listing broker's knowledge.  The listing broker shall use good faith efforts to determine the accuracy of the information and shall not submit or input information that the listing broker knows to be inaccurate.  The listing broker shall, immediately upon receipt of the first publication or electronic transfer by the MLS of such listing information, verify the correctness and make all necessary corrections.  The MLS merely publishes the MLS information and has no affirmative responsibility to verify the accuracy of the MLS information.  The MLS, however, reserves the right to require Participants and Subscribers to change their MLS information if the MLS is made aware of alleged inaccuracies in the MLS information and the MLS determines that such inaccuracies do, in fact, exist. The MLS also reserves the right to remove a listing that contains said inaccurate information from the MLS compilation of current listings should Participant or Subscriber refuse or fail to timely correct. A Participant or Subscriber is required to correct inaccurate information within 2 days after being notified of inaccuracies by the MLS.   If a Participant or Subscriber fails to make necessary or required corrections to their MLS information, the Participant and Subscriber shall indemnify and hold harmless the service for any claims, costs, damage, or losses, including reasonable attorney fees and court costs, incurred by the MLS as a result of such failure.  In no event will the MLS be liable to any MLS participant, subscriber or any other party for any indirect, special, or consequential damages arising out of any information published in the MLS and any other damages shall be limited to the return of the listing fee to the listing broker.

9.7   Input Defined.  All references or uses of the word “input” shall also include information that is submitted to the MLS for input in the MLS database by the MLS staff, whether such information was provided to the MLS staff on a “property data form” or otherwise.

      9.8   Buyer, Seller, Purchase, and Sale Defined. Except as provided in Sections 8.5 and 8.6 and Sections 9.3 and 9.4 all references to the seller shall also include lessor. All references to a buyer shall also include the lessee. All references to a purchase shall also include a lease.  All references to a sale shall also include a lease.

10. SELLING PROCEDURES.

10.1 Showings and Negotiations. Appointments for showings and negotiations with the seller for the purchase of listed property filed with the service shall be conducted through the listing broker except under the following circumstances:

• the listing broker gives the buyer broker specific authority to show and/or negotiate directly, or
• after reasonable effort and no less than 24 hours, the buyer broker cannot contact the listing broker or his representative. However, the listing broker, at his option, may preclude such direct negotiations by the buyer broker by giving notice to all participants through the MLS. See 9.3 buyer/broker agreement.

In the event the listing broker is having all showings and negotiations conducted solely by the seller, the listing broker shall clearly set forth such fact in the listing information published by the service.

      10.2 Disclosing the Existence of Offers.  Listing brokers, in response to inquiries from buyers or buyer brokers, shall, with the sellers’ approval, disclose the existence of offers on the property.  Where disclosure is authorized, the listing broker shall also disclose if asked whether offers were obtained by the listing licensee, by another licensee in the listing firm, or by a buyer broker.

     10.3 Availability to Show or Inspect.  Listing brokers shall not misrepresent the availability of access to show or inspect a listed property. It will be a violation of this section in the event showings or tours occur on a property for which the listing broker has selected a Section 10 status indicating that there will be no showings.

      10.4 Presentation of Offers. The listing broker must make arrangements to present the offer as soon as possible or give the buyer broker a satisfactory reason for not doing so. If a seller(s)/landlord(s) has directed that offers are not to be presented for any length of time, the seller’s direction authorizing such arrangement shall be in writing, and the listing broker shall provide clear and accurate notice of the date/time of presentation of offers as outlined in the written instruction to Participants and Subscribers in the MLS. In the event a listing broker will not be participating in the presentation of offers, the listing broker shall clearly indicate this fact, and it shall be disseminated to all participants by the service.

      10.5 Submission of Offers and Counter-Offers. The listing broker shall submit to the seller/landlord all offers until closing unless precluded by law, governmental rule or expressly instructed in writing by the seller /landlord otherwise. If requested by the buyer broker in writing, the listing broker shall provide the buyer broker with the listing broker’s written verification that the buyer broker’s offer was presented (or a written notification that the seller has waived the obligation to have the offer presented), said verification to be provided to buyer broker within 3 days of buyer broker’s request. The buyer broker acting for the buyer/tenant shall submit to the buyer/tenant all offers and counteroffers until acceptance.

10.6 Right of Buyer Broker in Presentation of Offer.  The buyer broker has the right to participate in the presentation of any offer to purchase he secures.  The buyer broker does not have the right to be present at any discussion or evaluation of that offer by the seller and the listing broker.  However, if the seller has given written instructions to the listing broker requesting that the buyer broker not be present when an offer the buyer broker secured is presented, the buyer broker shall convey the offer to the listing broker for presentation.  In such an event, the buyer broker shall have the right to receive a copy of the seller's written instructions.  Nothing in this section diminishes or restricts the listing broker’s right to control the establishment of appointments for offer presentations.

Where the buyer broker is not present during the presentation of the offer, the cooperating broker can request in writing, and the listing broker must provide, as soon as practical, a written affirmation stating that the offer has been submitted to the seller, or written notification that the seller has waived the obligation to have the offer presented. (Adopted 11/19)

10.7 Buyer Broker as Purchaser.  If a buyer broker wishes to acquire an interest in property listed with a listing broker, such contemplated interest shall be disclosed to the listing broker prior to the time an offer to purchase is submitted to the listing broker.

10.8 Physical Presence of Participant or Subscriber.  A Participant or Subscriber must be physically present on the property at all times when providing access to a listed property unless the Seller or Seller’s agent has consented otherwise.

11. REPORTING SALES AND OTHER INFORMATION TO THE SERVICE.

11.1 Statuses. The definitions of the stages of property status are set forth as follows:

On-Market Statuses (Marketing/Advertising Is Occurring)

(a) Active (A): A valid listing contract exists and no offer (with or without contingencies) has been accepted. This is an On-Market status.

(b) Active Under Contract (Pending (C): See 8.10 Contingencies

Off-Market Statuses (Marketing/Advertising Is Not Occurring)

(e) Withdrawn (W): A valid listing contract is in effect, however, because of various reasons such as repairs, illness, guests, etc., the Seller has requested that temporarily there be no showings and no marketing for a minimum of 30 days. This is an Off-Market status.

(f) Pending (P): The Seller has accepted an offer and is not soliciting further offers through the MLS. This is an Off-Market status (however any incidental remaining marketing is not a violation of said status).

(h) Canceled (C): The listing agreement has been canceled in writing, with or without post-cancellation carryover commission rights. This is an Off-Market status.

(i) Expired (E): The listing agreement has expired. The time frame of the existing listing contract has run out. This is an Off-Market status.

(j) Sold (S): Escrow has closed. This is an Off-Market status.

(k) Leased (L): The property has been leased. This is an Off-Market status.

11.2 Reporting of Sales.  Listings with accepted offers shall be reported to the MLS or input into the MLS database as “pending” or “active under contract” within forty-eight (48) hours of the acceptance by the listing broker unless the negotiations were carried on under Section 10.1 (a) or (b), in which case, the buyer broker shall notify the listing broker of the “pending” status within forty-eight (48) hours after acceptance, whereby the listing broker shall then report or input the status change to the MLS within forty-eight (48) hours of receiving notice from the buyer broker. The listing shall be published on the MLS as “pending” or “active under contract” with no price or terms prior to the final closing.  Upon final closing, the listing broker shall report or input the listing in the MLS as “sold” and report the selling price within seventy-two (72) hours of the final closing date unless the negotiations were carried on under Section 10.1 (a) or (b), in which case, the buyer broker shall notify the listing broker of the “sold” status and selling price within seventy-two (72) hours after the final closing date, whereby the listing broker shall then report or input the status change and selling price to the MLS within seventy-two (72) hours of receiving notice from the buyer broker.   Listings that were not input into the MLS because of the seller’s instructions may be input into the MLS “sold” data at the listing broker’s option. Additionally, an MLS may accept the reporting of sales information solely for comp purposes about other properties that were not otherwise eligible for input into the MLS but are located in the MLS’s primary geographic service area and “sold” by a MLS Participant and/or Subscriber who represented the underlying property owner (i.e. broker who represented the seller or broker who represented the buyer), as long as such reporting is authorized by the underlying property owner to the broker who represented it, (documentation of which must be presented to MLS, if requested by the MLS), and the circumstances of the representation are disclosed on the service by the reporting participant or subscriber. Any discretionary submission of sales information must occur within 30 days after close of escrow.

11.3 Removal of Listings for Refusal/Failure to Timely Report Status Changes.  The MLS is authorized to remove any listing from the MLS compilation of current listings where the Participant or Subscriber has refused or failed to timely report status changes. Prior to the removal of any listing from the MLS, the Participant and/or Subscriber shall be advised of the intended removal so the Participant and/or Subscriber can advise his or her client(s).

     11.4 Reporting Cancellation of Pending Sale. The listing broker shall report the cancellation of any pending sale within 2 days after the cancellation occurs, and the listing shall be reinstated immediately as long as there is still a valid listing.

11.5 Refusal to Sell.  If the seller of any listed property filed with the service refuses to accept a written offer

satisfying the terms and conditions stated in the listing, such fact shall be transmitted immediately to the service

and to all participants by stating so in the agent remarks.

     11.6 Reporting Concessions.  A seller concession is when the value is credited back to the buyer at close of escrow. The concession can be in the form of a credit ($) as part of the buyer’s closing costs, or a credit ($) back to the buyer for a repair item. The buyer receives compensation in the form of cash or a credit that is not reflected in the purchase price. The dollar amount and comments must be included in the remarks. No commissions or compensations may be listed in the concessions.

12. OWNERSHIP OF MULTIPLE LISTING SERVICE COMPILATIONS AND COPYRIGHTS; DATA RIGHTS AND RESPONSIBILITIES OF THE SERVICE.

12.1 MLS Compilation Defined.  The term "MLS compilation" includes, but is not limited to, the MLS computer database and all data and content therein, including but not limited to photographs, images (including maps), graphics, audio and video recordings, virtual tours, drawings, descriptions, remarks, narratives, pricing information, statistics and other details or information related to listed property, all printouts of data and content from the MLS computer database, and all MLS publications. The MLS Compilation is protected by all applicable intellectual property laws.

12.2 Active Listing MLS Compilation Defined.  "Active listing MLS compilation" shall mean that section of the MLS compilation which includes listings currently for sale and all other indexes and other information relating to the current listing information.

12.3 Comparable Data MLS Compilation Defined. "Comparable data MLS compilation" shall mean that portion of the MLS compilation that includes the off-market data, sold and appraisal information regarding properties that are not currently for sale, and all indexes and information relating to the sold information compilation.

12.4 Authority to Put Listings in MLS Compilation.  By submitting any property listing content (e.g., photographs, images, graphics, audio and video recordings virtual tours, drawings, renderings or any other representation, descriptions, remarks narratives, pricing information, and other details or information related to listed property) to the MLS or inputting listing information into the MLS compilation, Participants and Subscribers represent and warrant that he has been authorized to grant license and also thereby do grant authority for and license the Association to include the property listing content in its copyrighted MLS compilation.  By submitting any property listing data form to the MLS, the Participant and Subscriber represent and warrant that they have been authorized to report information about the sales, price and terms of a listing, have authority to grant and also thereby do grant authority for the MLS to include the sold information in its copyrighted MLS compilation.

12.5 Photographs on the MLS.  By submitting photographs / images, including but not limited to photographs, images, graphics, audio and video recordings, virtual tours, drawings, renderings or any other representations (collectively referenced in these Rules as photographs and or images) to the MLS, the Participant and/or Subscriber represents and warrants that he or she either owns the right to reproduce and display such photographs or has procured such rights from the appropriate party, and has the authority to grant and hereby grants the MLS and the other Participants and Subscribers the right to reproduce and display the photographs in accordance with these rules and regulations.  Use of photographs by a subsequent listing agent requires prior written authorization from the originating listing agent or other appropriate party with the legal right to reproduce and display such photographs. A $100.00 per listing fee will be assessed for listings that use another agent’s photos without permission.   Except by the MLS for purposes of protecting its rights under Section 12.6, branding of photographs and or images, virtual tours or any other photographic representation with any information or additional images,

including but not limited to photographs displaying “for sale” signs posted on the property, is prohibited.  At least one (1) photo or graphic image accurately displaying the listed property (except where sellers expressly direct that photographs of their property does not appear in MLS compilations) is required when listing is added to the MLS. The MLS reserves the right to remove any non-compliant photographs and or images from MLS display should Participant or Subscriber refuse or fail to bring said photographs and or images into compliance with the requirements of the rule after being notified and instructed to correct by the MLS.

• New Construction Photos. There needs to be a sketch, map, elevation plan, or photo of the lot input into the MLS system.  Upon close of escrow, a photo has to be input showing the finished product.
• Virtual Renovations. Virtual renovation is the process of using 3D design to update structural elements of a home like flooring/paint changes, kitchen remodels, drywall/ceiling updates, backyard improvements and other permanent fixtures. Photographs that have been virtually renovated are prohibited in the MLS.
• Virtual Staging. Virtual Staging means adding virtual unattached furnishings and decor of realistic size to property photos to give perspective on room dimensions and/or to increase appeal. Photographs that have been virtually staged must be clearly marked with an image-sized watermark that states “Virtually Staged.” The virtually staged photo must be followed by an image depicting the true unaltered image.

12.6 Copyright Ownership. All right, title, and interest in each copy of every MLS compilation created and

copyrighted by the Association, and in the copyrights therein, shall at all times remain vested in the

Association.  The Association shall have the right to license such compilations or portions

thereof to any entity pursuant to terms agreed upon by the Board of Directors.

12.7   Licensing of MLS Compilations. Each Participant shall be entitled to license from the Association the number of copies of each MLS compilation of active listing and comparable data information sufficient to provide the participant and subscriber with one copy of such MLS compilation.  Participants and Subscribers shall acquire by such license only the right to use the MLS compilations in accordance with these rules. Clerical Users may have access to the information solely under the direction and supervision of the Participant or Subscriber.  Clerical Users may not provide any MLS compilation or information to persons other than the Participant or the Subscriber under whom the clerical user is registered, unless under the direction of the Participant or Subscriber.

12.8   Database Preservation. No data may be removed from the MLS compilation other than by the service. Although a listing may be removed from display in the MLS compilation of current listing information, all data submitted to the MLS will remain in the database for historical and other purposes approved by the service (unless the service itself removes said data in accordance with other provisions of these rules).

12.9  Removal of and Responsibility for Content. The MLS has the right, but not the obligation, to reject, pull down, restrict publication of, access to or availability of content the MLS in good faith considers to be obscene, lewd, lascivious, filthy, excessively violent, harassing, unlawful or otherwise objectionable. Participants and Subscribers remain solely responsible and liable for the content they provide. In no case will any monitoring or removal of Participants’ or Subscribers’ content by the MLS make it responsible or liable for such content.

12.10 Data Privacy. By participation in the service, Participants and Subscribers represent and warrant that they have given all lawfully required privacy notices and opt-out rights to their respective seller and buyer clients whose personal information, as defined in the California Consumer Privacy Act (“CCPA”), may be submitted or included in the MLS compilation. C.A.R. Standard Form CCPA may be used to satisfy the notice requirements set forth in this rule, but if an alternate document is used, it must show that required privacy notices and opt-out rights have been given. All Participants and Subscribers are required to comply with this rule’s notice requirements regardless of whether they are considered a “business” or “third party” or otherwise under the CCPA. The service shall have the right to demand a copy of written verification that such lawfully required privacy notices and opt-out rights have been given at any time. If the Participant or Subscriber fails to provide documentation requested by the service within 1 day after the service’s request, the service shall have the right to immediately withdraw any listings from the data base in addition to disciplining the Participant and Subscriber for a violation of MLS rules.

[**DISCLAIMER AND IMPORTANT ADVISORY NOTE: As already outlined in the Introductory section outlining the revisions in this current set of Model MLS Rules, the CCPA will present additional ongoing compliance challenges for the industry – adoption of these rules alone do not resolve everything. In particular, an MLS which meets the definition of a covered “Business” under the CCPA will have burdens beyond those which can be addressed by these Model Rules changes and should work with counsel to establish an overall system for compliance. A specific area of note regarding the rule above that appears in the proposed Attorney General Regs {999.305(d)} (which are not yet final at the time of publication of this Model Rule set) would additionally require an MLS that is a covered Business to obtain a signed attestation from the source of consumer personal information, meaning from the participant or subscriber submitting consumer’s personal information, that the consumer was given the pre-collection notice a addition to the requirements outlined in 12.10 above, provide an “I attest” signing function for submitting agent with a means to attach a copy of said notice given); such attestations would have to be retained for 2 years.**]

In the event the MLS receives a consumer opt-out or deletion request, the MLS reserves the right to remove or delete personal information as may be, in its discretion, necessary to satisfy or otherwise accommodate the CCPA. The MLS’s obligation to do so will vary given the circumstances and the extent to which the MLS is covered by the CCPA, thus the MLS also reserves the right to reject what it determines are unfounded or non-mandated opt-out or deletion requests, if any.

12.11 Indemnification; Limitation of Liability. Participant and Subscriber shall defend, indemnify and hold harmless the service and every other Participant and Subscriber from and against any liability, claims, costs, damage or losses, including reasonable attorney fees and court costs, resulting from or arising out of any content Participant and/or Subscriber submit to or in any way wrongfully reproduce from the Service. In no event will the MLS be liable to any MLS Participant, Subscriber or any other party for any indirect, special or consequential damages arising out of any information published in the MLS and all other damages shall be limited to an amount not to exceed the MLS fees paid by the listing broker.

12.12 Pursuing Complaints of Unauthorized Use of Listing Content. MLS Participants and Subscribers may not take legal action against another Participant or Subscriber for alleged rules violation(s) unless the complaining Participant or Subscriber has first exhausted the remedies provided in these rules.

(a) Notice. Any Participant or Subscriber who believes another Participant or Subscriber has engaged in the unauthorized use or display of listing content, including photographs, images, audio or video recordings, and virtual tours, shall send notice of such alleged unauthorized use to the MLS. Such notice shall be in writing, specifically identifying the allegedly unauthorized content, and be delivered to the MLS not more than sixty (60) days after the alleged misuse was first identified. No Participant or Subscriber may pursue action over the alleged unauthorized use and display of listing content in a court of law without first completing the notice and response procedures outlined in this section of the MLS rules.

(b) Response. Upon receiving a notice, the applicable Committee/Board of Directors will send the notice to the Participant or Subscriber who is accused of unauthorized use. Within ten (10) days from receipt, the Participant or Subscriber must either: 1) remove the allegedly unauthorized content, or 2) provide proof to the Committee/Board of Directors that the use is authorized. Any proof submitted will be considered by the Committee/Board of Directors, and a decision of whether it establishes authority to use the listing content will be made within thirty (30) days.

(c) Determination. If the Committee/Board of Directors determines that the use of the content was unauthorized, the Committee/Board of Directors may issue sanctions pursuant to the MLS rules, including a request to remove and/or stop the use of the unauthorized content within ten (10) days after transmittal of the decision. If the unauthorized use stems from a violation of the MLS rules, that too will be considered at the time of establishing an appropriate sanction.

(d) Court Action If Uncured. If after ten (10) days following transmittal of the Committee’s/Board of Director’s determination the alleged violation remains uncured (i.e., the content is not removed or the rules violation remains uncured), then the complaining party may seek action through a court of law.

12.13 Participant Access and Entitlement to Their Own Listing Information; Data Portability.  The service must, upon request, promptly provide a Participant (or the Participant’s designee) a data feed containing, at minimum, all active MLS listing content input into the MLS by or on behalf of the Participant and all of the Participant’s off-market listing content available in the MLS system. The delivery charges for the Participant’s listing content shall be reasonably related to the actual costs incurred by the MLS. The data feed must be in compliance with the prevailing RESO (Real Estate Standards Organization) standards required by NAR MLS Policy. The service will not limit the use of the Participant’s listing content by the Participant or the Participant’s designee.

12.14  Data Feed Available to Participants.  The service must offer a Participant a single data feed in accordance with a Participant’s licensed authorized uses. At the request of a Participant, the service must provide the single data feed for that Participant’s licensed uses to that Participant’s designee. The designee may use the single data feed only to facilitate that Participant’s licensed uses on behalf of that Participant.

12.15 Brokerage Back Office Data Feeds.  The service must provide to Participants the Brokerage Back Office Data for use subject to the terms below:

“Brokerage Back Office Data” means all real property listing and roster information in the MLS database, including all listings of all Participants, but excludes (i) MLS only fields (those fields only visible to MLS staff and the listing Participant), and (ii) fields and content to which MLS does not have a sufficient license for use in the Brokerage Back Office Feed.

Participant and Subscribers affiliated with the Participant can use the Brokerage Back Office Feed data for the following purposes:

• Brokerage management systems that only expose Brokerage Back Office Data to the Participant and Subscribers affiliated with the Participant.
• Customer relationship management (CRM) and transaction management tools that only expose the Brokerage Back Office Data to the Participant, Subscribers affiliated with the Participant, and their bona fide clients as established under state law.
• Agent and brokerage productivity and ranking tools and reports that only expose Brokerage Back Office Data to the Participant and Subscribers affiliated with the Participant.
• Marketplace statistical analysis and reports in conformance with NAR MLS Policy Statement 7.80, which allows for certain public distribution.

Brokerage Back Office Data use may only be made by the Participant and any Subscriber affiliated with the Participant, except that at the request of a Participant, the MLS must provide Brokerage Back Office Data to that Participant’s designee. The designee may use the Brokerage Back Office Data only to facilitate the Brokerage Back Office Data use on behalf of that Participant and its affiliated Subscribers.

There is no option for Participants to opt out their listings from the Brokerage Back Office Data feed use as defined.

The service may impose reasonable licensing provisions and fees related to a Participant’s license to use the Brokerage Back Office Data.  The service may require the Participant’s designee to sign the same or a separate and different license agreement from what is signed by the Participant.

12.16   Prohibition on Creating a Platform for Making Offers of Compensation from Multiple Brokers. Use of MLS data or data feeds to directly or indirectly establish or maintain a platform to make offers of compensation from multiple brokers to buyer brokers or other buyer representatives is prohibited and shall result in the termination of that Participant’s or Subscribers access to any MLS data and feeds.

13. PROHIBITIONS AND REQUIREMENTS.

13.1 Notification of California Department of Real Estate (DRE) or California Bureau of Real Estate Appraisers (BREA) Action.  A Participant and Subscriber are required to notify the MLS within 24 hours of any final action taken by the DRE or the OREA against the Participant, Subscriber or any licensee affiliated with the Participant or Subscriber including, but not limited to any final decisions restricting, suspending or revoking a real estate license or Appraisers certification or license of a Participant, the Participant's firm or corporation under which the Participant or Subscriber acts, or any licensee affiliated with the Participant or the Participant's firm or licensee or Appraiser who was affiliated with the Participant or Participant's firm at the time of the underlying act.

13.2 Violations of the Law.  A Participant, Subscriber, or Appraiser or a licensee affiliated with a Participant or Subscriber shall not commit a felony or a crime involving moral turpitude or violate the Real Estate Law or the laws relating to Appraisers, the Participant and Subscriber shall be in violation of this section.  However, a Participant or Subscriber shall not be found to have violated this section unless the Participant, Subscriber, Appraiser or salesperson licensed to the Participant has been convicted, adjudged, or otherwise recorded as guilty by a final judgment of any court of competent jurisdiction of (1) a felony, or (2) a crime involving moral turpitude, or (3) on a determination by any court of competent jurisdiction, or official of the State of California authorized to make the determination, that the Participant or Subscriber violated a provision of the California Real Estate Law or a Regulation of the Real Estate Commissioner or law relating to Appraisers.

13.3 Supervision of Licensees and Appraisers.  In addition to the notification requirements of paragraph 13.1, a Participant may not allow any licensee, under the Participant's license, whose license has been revoked, suspended or restricted by the California Department of Real Estate to use the MLS in any manner while the DRE discipline is in effect except that the licensee may be able to use the MLS under a restricted license providing such use is consistent with and does not violate such license restrictions.

13.4 Solicitation of Listing Filed with the MLS. Participants and Subscribers shall not solicit a listing on property filed with the service unless such solicitation is consistent with Article 16 of the N.A.R. Code of Ethics, its Standards of Practice, and its Case Interpretations. The purpose of this section is to encourage sellers to permit their properties to be filed with the service by protecting them from being solicited through unwanted phone calls, visits, and communications, prior to expiration of the listing, by brokers and salespersons seeking the listing upon its expiration. This section is also intended to encourage brokers to participate in the service by assuring them that other Participants and Subscribers will not attempt to persuade the seller to breach the listing agreement or to interfere with the listing broker's attempts to market the property. This section does not preclude solicitation of listings under circumstances otherwise permitted under Article 16 of the N.A.R. Code of Ethics, its Standards of Practice, and its Case Interpretations.

13.5 Misuse of Remarks.  Information in the public remarks shall only relate to the marketing, description and condition of the property.  No contact information is permitted, including names, phone or fax numbers, email addresses, or website addresses (including virtual tours and transaction tracking URLs).  No showing instructions are permitted, including references to lockbox, alarm, gate or other security codes, or the occupancy of the property (a statement that the property shall be delivered vacant is not a violation of this section).  No information directed toward real estate agents or brokers may be shown in public remarks.  No information other than the marketing, description, and condition of the property is permitted.  Participants and Subscribers may not use the remarks in a property data profile sheet or listing submitted to the MLS or inputted directly into the MLS database for purposes of disparaging other real estate agents or conveying information about other offices or for conveying any other information that does not directly relate to the marketing of the listing. By submitting remarks to the MLS, Participant and/or Subscriber represents and warrants he or she has the authority to grant, and hereby grants the MLS and the other Participants and Subscribers the right to reproduce and display the remarks in accordance with these rules. Copying of remarks by a subsequent listing agent for use in his or her own listing requires prior written authorization from the originating listing agent or other appropriate party with the legal right to reproduce and display such remarks.

13.5.1 Remarks - Listing Content and Fair Housing Laws. All listing information, including all remarks, submitted to the MLS must comply with fair housing laws. The MLS monitors listing content and employs a process for identifying potential violations of fair housing laws. Should potential fair housing law violations be identified, Participants and Subscribers will be advised to immediately remove or correct such potential violations. Failure to remove or correct may subject Participants and Subscribers to discipline and/or subject the listing to immediate removal from display.

13.6 "For Sale" Signs.  Only the "For Sale" signs of the listing broker may be placed on the property.

13.7  "Sold" Signs and Use of the Term "Sold."  Only Brokers Participants or R.E. Subscribers who participated in the transaction as the listing broker or buyer broker (selling broker) may claim to have “sold” the property.  Prior to closing, a buyer broker may post a “sold” sign on a property only with the consent of the listing broker.  This section does not, however, prohibit any broker from advertising a permissible subset of allowable listing content regarding the properties that have sold in a neighborhood after the information regarding the properties has been published as long as the advertisement does not imply the agent was involved in the transaction unless such is the case and as long as the advertisement otherwise presents a “true picture” as is meant under Article 12 of the N.A.R. Code of Ethics, its Standards of Practice and its Case Interpretations. Allowable listing content may include only those portions of the MLS compilation consisting of the following:  property address (and whether attached or detached), status, price, number of bedrooms, number of bathrooms, number of garages (and whether attached or detached), square footage, lot size, year built, tract or development name, and if there is a pool. Display of other fields, as well as confidential information and photographs, is prohibited.

13.8 Advertising of Listing Filed with the MLS.  A listing shall not be advertised by any Participant or Subscriber, other than the listing broker, without the prior consent of the listing broker except as provided in sections 13.8.1 relating to the Printed Neighborhood Market Report and sections13.8.2, 13.16 and 13.19 relating to display of listings on the internet. All advertising of listings by Participants and Subscribers using digital or social media must comply with the listing attribution rules set forth in Section 13.8.3

13.8.1   Advertising of Listing in Printed Neighborhood Market Report. Subject to the conditions set forth in (a) through (c) below, as well as throughout these Rules, Participants and Subscribers may include the listings of others in their printed “Neighborhood Market Reports.” The “Neighborhood Market Report” is defined as an advertising and/or information sheet (typically appearing in the form of a postcard, flier or newsletter) compiled by and/or for use by a licensee that sets forth a list of home activity in a particular neighborhood area. Advertising appearing in newspapers, magazines or other classified forms is not included in the definition of “Neighborhood Market Report” and is not authorized by this Rule 13.8.1.

(a)     Consent.  The listing brokers’ consent for such advertising is presumed, in satisfaction of Rule 13.8, unless a listing broker affirmatively notifies the MLS that the listing broker refuses to permit others to advertise his listing in the “Neighborhood Market Report” (i.e. “opts-out”) either on a blanket or listing by listing basis.  Listing brokers that refuse to permit other Broker Participants or R.E. Subscribers to advertise their listings on a blanket basis may not display the listings of the other brokers’ listings in their own “Neighborhood Market Reports”.  Even where listing brokers have given blanket authority for other Broker Participants and R.E. Subscribers to advertise their listings in the “Neighborhood Market Report”, such consent may be withdrawn on a listing-by-listing basis where the seller has prohibited it. Participants and Subscribers are not permitted to include listings in their Neighborhood Market Report from which listing broker has opted out and will be responsible for verifying that they have permission to advertise all listings contained in their Neighborhood Market Reports.

(b)     Listing Attribution.  All listings in the “Neighborhood Market Report” must identify the name of the listing firm(s) and the name of the listing agent(s) in a manner designed to easily identify such listing firm(s) or agent(s).  Such identification shall be in a reasonably prominent location and in a readily visible color and typeface not smaller than the median used in the display of listing data.

• Allowable Listing Content. Broker Participants and R.E. Subscribers may include only those portions of the MLS compilation consisting of the following: property address (and whether attached or detached), status, price, number of bedrooms, number of bathrooms, number of garages (and whether attached or detached), square footage, lot size, year built, tract or development name, and if there’s a pool. Display of other fields, as well as confidential information and photographs, is prohibited.

13.8.2 Permission to Advertise a Participant’s Listing in Digital and Social Media. Participants and Subscribers must have permission from the listing broker or agent before advertising a listing in social or digital media. Listing brokers and agents are encouraged to discuss displays of listing information by other MLS Participants and Subscribers (including social media posts) with their seller clients to determine if the seller clients wish to provide permission for such displays. If the seller client consents, the listing broker or agent may provide blanket permission for other MLS Participants and Subscribers to advertise a listing online in the listing’s private remarks. Consent for digital display of a listing pursuant to Rules 13.16 and 12.9 is presumed but can be revoked as provided for in those Rules.

13.8.3 Listing Attribution in Digital and Social Media Advertising. When publicly presenting or marketing another Participant’s listing in digital and/or social media, Participants and Subscribers must identify the listing firm and listing agent in the advertisement. The listing attribution language must meet all the requirements subsequently stated in this Rule (except for advertising done pursuant to Rules 13.16 and 13.19, which must follow the listing attribution requirements stated in those Rules):

• Contact Information. Any listing advertised by a Participant or Subscriber must include the listing agent’s contact information. However, the listing broker has the option of providing different contact information in the MLS if the listing broker wishes to do so.

• Prominence. Listing attribution language must be clear and legible, and it must not be hidden by the use of small font, non-contrasting font color, or other means that would make it hard for a consumer to discern who the listing agent and broker are. Listing attribution information must appear on the first screen that a viewer sees for a listing or with the property description information (i.e., in close proximity to the bedroom and bathroom count).

• Calls to Action. Any “call to action” near an advertised listing, such as a button permitting the viewer to contact an agent, must clearly identify whether the action (e.g., clicking the button) will put the viewer in contact with the listing agent or broker or with an advertising agent.

• Proper Phraseology. Any listing attribution must use the phrase “Listed by” or “Listing [broker/agent]” instead of “Presented by” or phraseology that does not clearly distinguish between identification of the listing broker and agent and identification of the advertising agent, if any. Listing attribution on social media advertising must follow one of the following three formats: (1) “Listed by [agent] of [brokerage]” followed by contact information (name or phone number); (2) “Listed by [tag listing agent]; or (3) “Listed by [link to an IDX or VOW display of the listing].”

• Displays of Minium Listing Information. Displays of minimum listing information (e.g., a one-line or thumbnail search result, text messages, “tweets”, audio, etc. Of a two hundred (200) characters or less) must, when practicable, link directly to an IDX or VOW display of the listing.

13.9     Limitations on Use of Association or MLS Information in Advertising.  Except as provided in Sections 13.7, 13.8, 13.11 and 13.15, truthful use of information from the MLS compilations of current listing information, from the Association’s statistical reports, or from any “sold” or “comparable” report of the association or MLS may be used by MLS participants as the basis for aggregated demonstrations of market share or comparisons of firms in public mass-media advertising by an MLS Participant or Subscriber or in other public representations for purposes of demonstrating market share is not prohibited.  However, any print or non-print forms of advertising or other forms of public representations must clearly demonstrate the period of time over which such claims are based and must include the following, or substantially similar, notice in a manner readily visible to consumers but not less than 7pt type: “Based on information from the Humboldt Association of REALTORS® (alternatively, from the Humboldt MLS) for the period (date) through (date).  Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS.”

Based on information from the ___________________ /Association of REALTORS® (alternatively, from the ____________________ MLS) as of _____ (date the AOR/MLS data was obtained).  All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.

13.10        False or Misleading Advertising and Representations; True Picture Standard of Conduct.  Participants and Subscribers may not engage in false or misleading advertising, including, but not limited to, advertisements or representations regarding the Participant's or Subscriber's relationship to the service, about the service itself, or about any property listed with the service. Participants and Subscribers may not represent that their brokerage services to a client or customer are free or available at no cost to their clients, unless the Participant or Subscriber will receive no financial compensation from any source for those services.

MLS participants and subscribers shall present a true picture in their advertising and representations to the public, including internet content, images, and the URLs and domain names they use, and participants and subscribers may not:

• engage in deceptive or unauthorized framing of real estate brokerage websites;
• manipulate (e.g., presenting content developed by others) listing and other content in any way that

produces a deceptive or misleading result;
(c) deceptively use metatags, keywords or other devices/methods to direct, drive, or divert

Internet traffic;

(d) present content developed by others without either attribution or permission; or

(e) otherwise mislead consumers, including use of misleading images.

13.11  Use of MLS Information.  In recognition that the purpose of the MLS is to market properties to and foster cooperation with other Broker Participants and R.E. Subscribers for the sole purpose of selling the property, and that sellers of properties filed with the service have not given permission to disseminate the information for any other purpose, Participants and Subscribers are expressly prohibited from using MLS listing information for any purpose other than to market property to bonafide prospective purchasers or to support market evaluations or appraisals as specifically allowed by Sections 13.14, 13.15, 13.16 and 13.19.  Any use of MLS information inconsistent with these Sections is expressly prohibited. Nothing in this Section, however, shall limit the Association from entering into licensing agreements with MLS Participants and Subscribers or other third parties for use of the MLS information.

13.12  Confidentiality of MLS Information. Any information provided by the service to the Participants and Subscribers shall be considered and treated confidential and exclusively for the use of Participants and Subscribers for purposes described in Sections 2, 13.7, 13.11, 13.14, 13.15, 13.16, 13.19 and this section.  Participants and Subscribers shall at all times maintain control over and responsibility for each copy of any MLS compila­tion leased to them by the Association and shall not distribute any such copies to persons other than Participants and Subscribers.  Participants and Subscribers are responsible for the security of their pass codes and subscribers shall not give or allow use of or make available their pass codes to any person. Participants and Subscribers may reproduce or display the information as provided in these rules.

13.12.1 Password Fine.  Anyone proven to be giving out their MLS password to any non-MLS Participants or Subscriber (clerical/public/anyone not paying for access) will be fined $1,000.00.  If a Participant or Subscriber notifies staff of the rule violation, either the member or the MLS Committee can file the complaint.  If a Clerical User violates the rule, the fine would be assessed to the Broker Participants or Subscriber who employs that Clerical User.

13.12.2 Clerical Users.  Clerical Users may have access to the MLS information solely under the direction and supervision of the Participant or Subscriber. Clerical Users may not provide any MLS information to persons other than the Participant or Subscriber under whom they are registered, unless under the direction of the Participant or Subscriber.  Access by Clerical Users to the database is solely for clerical and

administrative functions for the Participant or Subscriber under whom the Clerical User is registered.

13.13  Access to Comparable and Statistical Information. Association members who are actively engaged in real estate brokerage, management, mortgage financing, appraising, land development, or building, but who do not participate in the service, are nonetheless entitled to receive, by purchase or lease, all information other than current listing information that is generated wholly or in part by the MLS including `comparable' information, ‘sold’ information, and statistical reports.  This information is provided for the exclusive use of Association members and individuals affiliated with Association members who are also engaged in the real estate business and may not be transmitted, retransmitted or provided in any manner to any unauthorized individual, office or firm except as otherwise specified in these rules and regulations.

      13.14  Display.  Subject to sections 13.15, 13.16 and 13.19, Broker Participants and R.E. Subscribers shall be permitted to display the MLS compilation in either electronic or printed format to specifically identified and bonafide prospective purchasers only in conjunction with their ordinary business activities of attempting to locate ready, willing and able buyers for the properties described in said MLS compilation. Broker Participants and R.E. Subscribers shall be permitted to display the MLS compilation in either electronic or printed format to specifically identified and bonafide sellers or prospective sellers only in conjunction with their ordinary business activities in listing properties.  Broker Participants and R.E. Subscribers must not filter out or restrict MLS listings that are communicated to customers or clients based on the existence or level of compensation offered to the cooperating broker or the name of a brokerage or agent.  Appraiser Participants and Appraiser Subscribers shall be permitted to display the MLS compilation to the person requesting the appraisal only in conjunction with their ordinary business activities of producing a written appraisal.  Such displays under this Section shall be only in the immediate presence of the MLS Participant or Subscriber.

13.14.1 Clerical Users.  Unless under the direction of the Participant or Subscriber, Clerical Users are expressly prohibited from displaying or distributing MLS information to anyone other than the Participant or Subscribers under whom the Clerical User is registered.

13.15  Reproduction. "Reproduction" shall include but not be limited to, making photocopies, computer printouts, electronic transfers (including email), or downloading of MLS data or compilations.  Participants and Subscribers or their affiliated licensees shall not reproduce any MLS compilation or any portion thereof except as provided in Section 13.16, 13.19 and in the following limited circumstances:

13.15.1 Copies to Prospective Purchasers.  Broker Participants and R.E. Subscribers may reproduce from the MLS compilation, and distribute to prospective real estate purchasers, copies of those portions of the MLS compilation consisting only of a description of the property, including the address, features, financing and price.  Such “client copies” shall also comply with the following:

(a)  Permissible MLS data may be augmented with additional data not otherwise prohibited

from display, provided the source of any additional data is clearly identified.

(b)  All listings shall identify the name of the listing firm and listing agent in a readily visible color in a reasonably prominent location and in typeface not smaller than the median typeface used in the display of listing data.

(c)  No more than 200 of current listings and 200 of sold listings may be provided in response

to any inquiry.

(d)  A disclaimer statement shall be made in a manner readily visible to consumers but not less than 7pt type that contains the following:

**Listing Broker and agents DO NOT guarantee the information in this MLS Listing is accurate. It is the duty of any person, buyer or entity using this MLS listing to exercise due diligence to independently verify this information**.

13.15.2 Information Prohibited from Reproduction/Confidential Fields.  Unless the Participant or Subscriber obtains prior written consent from the listing broker, the information reproduced pursuant to this section shall not include the following:

(a)  Property owner's name, phone number, and address (if different than the listed property);

(b) Instructions or remarks intended for buyer brokers, including but not limited to showing instructions or security references (ex: lockbox, burglar alarm or security system, vacancies) regarding the listed property;

(c)  Type of listing;

(d)  Expired or withdrawn listings;

(e)  Other information that goes beyond a description of the property.

13.15.3 Copies for Appraisals. Participants and Subscribers may reproduce from the MLS compilation and attach to an appraisal as supporting documentation of those portions of the MLS compilation consisting only of such information on properties necessary to support a written appraisal or estimate of value on a particular property.

13.15.4 Downloading onto Computers. Participants and Subscribers may download MLS information into a computer or computer system as long as:

(a)  Access to the computer or computer system receiving the information is strictly limited to authorized Participants, Subscribers and Clerical Users as defined in these rules; and

(b)  The information is only retransmitted to the Participants, Subscribers and Clerical Users authorized to access the computer or computer system by these rules; and

(c) The information is not reformatted or used to create another product except as may be used by the Participant or Subscriber who downloaded the data and such use strictly complies with sections 13.7, 13.11, 13.15, and 13.19.

              13.15.5  Sold Information.  Individuals legitimately in possession of current listing information, “sold” information, “comparables” or statistical information may utilize such information to support valuations on particular properties for clients and customers. Any MLS content in data feeds available to participants for real estate brokerage purposes must also be available to participants for valuation purposes, including automated valuations.  MLSs must either permit use of existing data feeds, or create a separate data feed, to satisfy this requirement.  MLSs may require execution of a third-party license agreement where deemed appropriate by the MLS.  MLSs may require participants who will use such data feeds to pay the reasonably estimated costs incurred by the MLS in adding or enhancing its downloading capacity for this purpose. Information deemed confidential may not be used as supporting documentation.  Any other use of such information is unauthorized and prohibited by these rules and regulations.

• Use of Listing Information on Internet. (Also known as Internet Data Exchange (“IDX”). “Internet Data Exchange” (“IDX”) is a means by which listing brokers permit limited electronic display and delivery of their active and pending listing data, in accordance with the IDX rules set forth herein, by other participating Broker Participants and real estate subscribers Via the following authorized mediums under said Broker Participants and R.E. Subscribers control:  websites, mobile apps and audio devices.  As used throughout this policy, “display” includes “delivery” of such listings.

(a)   Authorization.  Subject to paragraphs (b) through (s) below, and notwithstanding anything in these rules and regulations to the contrary, Broker Participants and R.E. Subscribers may electronically display aggregated MLS active and pending listing information through either downloading or by framing such information on the MLS or Association’s public access website (if such a site is available).  The MLS’s download will include publicly accessible sold listing data starting from January 1, 2012.  “Publicly accessible” sold information as used in the IDX policy and rules, means data that is available electronically or in hard copy to the public from city, county, state and other government records.

(b)  Consent.  The listing broker’s consent for such internet display is presumed, in satisfaction of Rule 13.8, unless a listing broker affirmatively notifies the MLS that the listing broker refuses to permit display on either a blanket or on a listing-by-listing basis.  Listing brokers that refuse to permit other Broker Participants or R.E. Subscribers to display their listing information on a blanket basis may not display MLS active listings of other brokers’ listings. Even where listing brokers have given blanket authority for other Broker Participants and R.E. Subscribers to partake in IDX display of their listings, such consent may be withdrawn on a listing-by-listing basis where the seller has affirmatively directed that their listing or their property address does not appear on the Internet or other electronic forms of display or distribution.

(c) Control.  Broker Participants and R.E. Subscribers may only partake in IDX display on websites, applications for mobile devices and audio devices that they control.  Under IDX policy, “control” means that Broker Participants and R.E. Subscribers must have the ability to add, delete, modify and update information as required by the IDX policy.  All displays of IDX listings must also be under the actual and apparent control of the Broker Participant and/or R.E. Subscriber and must be presented to the public as being that Broker Participants and/or R.E. Subscribers display. Actual control requires that Broker Participants and R.E. Subscribers have developed the display or caused the display to be developed for themselves pursuant to an agreement giving the Broker Participant and/or R.E. Subscriber authority to determine what listings will be displayed, and how those listings will be displayed.  Apparent control requires that a reasonable consumer receiving the Broker Participants and/or R.E. Subscribers display will understand the display is the Broker Participants and/or R.E. Subscribers, and that the display is controlled by the Broker Participant and/or R.E. Subscriber.

(d)  Display Content.  Broker Participants and R.E. Subscribers shall not display confidential information fields, as determined by the MLS in the MLS’s sole discretion, such as that information intended for buyer brokers rather than consumers.

(e) Listing Attribution.  All IDX listing displays shall identify the name of the listing firm, and the email or phone number provided by the listing Participant, and the name of the listing agent in a manner designed to easily identify such listing firm or agent.  Such identification shall be in a reasonably prominent location and provide clear, conspicuous written or verbal identification of the name of the listing firm and listing agent, and the email or phone number provided by the listing Participant. Listing attribution language must be clear and legible, and it must not be hidden by the use of small font size, non-contrasting font color, or other means that would make it hard for a consumer to discern who the listing agent and broker are. Listing attribution information must appear on the first screen that a viewer sees for a listing or with the property description information (i.e., in close proximity to the bedroom and bathroom count). Any listing attribution must use the phrase “Listed by” or “listing [broker/agent]” instead of “Presented by” or other phraseology that does not clearly distinguish between identification of the listing broker and agent and identification of the advertising agent, if any. Displays of minimum information (e.g., a one-line or thumbnail search result, text messages, “tweets”, etc. of two hundred (200) characters or less) are exempt from this requirement but only when linked directly to a display that includes all required disclosures. Audio delivery of listing content is exempt from this disclosure requirement only when all required disclosures are subsequently delivered electronically to the registered consumer performing the property search or linked to through the device's application.

(f) Modifications and Augmentations. Broker Participants and R.E. Subscribers shall not modify or manipulate information relating to other participants listings. Broker Participants and R.E. Subscribers may augment their IDX display of MLS data with applicable property information from other sources to appear on the same webpage or display, clearly separated by the data supplied by the MLS. The source(s) of the information must be clearly identified in the immediate proximity to such data. This requirement does not restrict the format of MLS data display or display of fewer than all of the available listings or fewer authorized fields.

(g) Source and Update. Information displayed shall indicate the MLS as the source of the information being displayed and the most recent date updated.  Displays of minimum information (e.g., a one-line or thumbnail search result, text messages, “tweets”, etc. of two hundred (200) characters or less) are exempt from this requirement but only when linked directly to a display that includes all required disclosures. Audio delivery of listing content is exempt from this disclosure requirement only when all required disclosures are subsequently delivered electronically to the registered consumer performing the property search or linked to through the device’s application. Broker Participants and R.E. Subscribers shall update all downloads and refresh all MLS downloads and IDX displays automatically fed by those downloads at least once every 12 hours.

(h) Usage Limitations.  Broker Participants and R.E. Subscribers shall indicate on their displays that the information being provided is for consumer’s personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.  Displays of minimum information (e.g., a one-line or thumbnail search result, text messages, “tweets”, etc. of two hundred (200) characters or less) are exempt from this requirement but only when linked directly to a display that includes all required disclosures.  Audio delivery of listing content is exempt from this disclosure requirement only when all required disclosures are subsequently delivered electronically to the registered consumer performing the property search or linked to through the device’s application.

(i)  Display Purpose. Broker Participants and R.E. Subscribers may not use IDX-provided listings for any purpose other than display as provided in these rules.  This does not require Broker Participants and R.E. Subscribers to prevent indexing of IDX listings by recognized search engines.

(j) Restricted Display.  Listings, including property addresses, can be included in IDX display except where sellers have directed their listing brokers to withhold their listings or the listings’ property address from all display on the Internet (including, but not limited to, publicly-accessible websites or VOWs).

(k) Selective Listing Display. Not all listings from the MLS must be displayed as long as any exclusions from display on Broker Participants’ and R.E. Subscribers’ IDX sites are based on objective criteria, e.g., type of property, listed price, listing status or geographical location.  Selection of listings displayed on any IDX site must be independently made by each Participant.

(l) Restricted Access and Distribution.  Sharing of the MLS compilation with any third party not authorized by the MLS is prohibited.  Except as provided in the IDX policy and these rules, an IDX site or a Participant or user operating an IDX site or displaying IDX information as otherwise permitted may not distribute, provide or make any portion of the MLS database available to any person or entity.

(m) Brokerage Identification. Any IDX display controlled by a Broker Participant or R.E. Subscriber must provide clear conspicuous written or verbal identification the name of the brokerage firm under which they operate  

(n) Co-Mingling.  A Broker Participant or R.E. Subscriber may co-mingle listings through IDX from this MLS with listings from other MLS sources on its IDX display, provided all such displays are consistent with these IDX rules, and the MLS Participant (or MLS subscriber) holds participatory rights in those MLSs. Co-mingling is the ability for a visitor to the website to execute a single property search of multiple IDX feeds resulting in the display of IDX information from each of the MLSs on a single search results page; and that Participants may display listings from each IDX feed on a single webpage or display. Listings obtained from other MLSs must display the source from which each such listing was obtained. Displays of minimum information (e.g., a one-line or thumbnail search result, text messages, “tweets”, etc. of two hundred (200) characters or less) are exempt from this requirement but only when linked directly to a display that includes all required disclosures. Audio delivery of listing content is exempt from this disclosure requirement only when all required disclosures are subsequently delivered electronically to the registered consumer performing the property search or linked to through the device's application.

(o)  Third Party Comments and Automated Value Estimates.  Any IDX display controlled by a Broker Participant or R.E. Subscriber that (a) allows third-parties to write comments or reviews about particular listings or displays a hyperlink to such comments or reviews in immediate conjunction with particular listings, or (b) displays an automated estimate of the market value of the listing (or hyperlink to such estimate) in immediate conjunction with the listing, shall disable or discontinue either or both of those features as to the seller’s listing at the request of the seller.  The listing broker or agent shall communicate to the MLS that the seller has elected to have one or both of these features disabled or discontinued on all displays controlled by Broker Participants’ and R.E. Subscribers.  Except for the foregoing and subject to section (p) below, a Broker Participants or R.E. Subscribers IDX display may communicate the Broker Participant or R.E. Subscribers’ professional judgment concerning any listing.  Nothing shall prevent an IDX display from notifying its viewers that a particular feature has been disabled at the request of the seller.

(p)  Making Corrections.  Broker Participants and R.E. Subscribers shall maintain a means (e.g., email address, telephone number) to receive comments about the accuracy of any data or information that is added by or on behalf of Broker Participants and R.E. Subscribers beyond that supplied by the MLS and that relates to a specific property.  Broker Participants and R.E. Subscribers shall correct or remove any false data or information relating to a specific property upon receipt of a communication from the listing broker or listing agent for that property explaining why the data or information is false. However, the Broker Participant and R.E. Subscribers shall not be obligated to remove or correct any data or information that simply reflects good faith opinion, advice, or professional judgment.

(q)  Search Result Limitation. Broker Participants and R.E. Subscribers shall limit the number of listings that a viewer may view, retrieve, or download to not more than 500 in response to any inquiry.

(Note: The number of listings that a viewer may view, retrieve, or download should be specified by the MLS in the context of this rule but may not be fewer than 500 listings or 50% of the listings in the MLS, whichever is less)

(r)  Advertising.  Deceptive or misleading advertising (including co-branding) on pages displaying IDX-provided listings is prohibited.  For the purposes of these rules, co-branding will be presumed not to be deceptive or misleading if the broker Participant and/or R.E. Subscriber’s logo and contact information is larger than that of any third party. Any “call to action” near an advertised listing, such as a button permitting the viewer to contact an agent, must clearly identify whether the action (e.g., clicking the button) will put the viewer in contact with the listing agent or broker or with an advertising agent.

(s) Disclaimer. Broker Participants and R.E. Subscribers shall indicate on their displays, in a manner readily visible to consumers but not less than 7pt type, the following, or substantially similar, notice:

Based on information from the __________/Association of REALTORS® (alternatively, from the __________ MLS) as of _____ (date the AOR/MLS data was obtained).  All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.

Displays of minimum information (e.g., a one-line or thumbnail search result, text messages, “tweets”, etc. of two hundred (200) characters or less) are exempt from this requirement but only when linked directly to a display that includes the required disclosure. Audio delivery of listing content is exempt from this disclosure requirement only when all required disclosures are subsequently delivered electronically to the registered consumer performing the property search or linked to through the device's application.

• Notification by Authorized Participants and Subscribers.  Broker Participants and R.E. Subscribers partaking in the display of IDX information of other brokers’ listings pursuant to Section 13.16 must notify the MLS before displaying said IDX information and must give the MLS direct access as well as allow access for other MLS participants for purposes of monitoring/ensuring compliance with applicable rules and policies.

13.16.2 Right to Charge for Download.  The MLS has the right to charge the costs of adding or enhancing its downloading capacity to Participants and R.E. Subscribers who request downloading of listing information pursuant to Section 13.16.

13.16.3 Listing Broker’s Right to Opt Out of Internet Advertising of MLS Information.  If the Association advertises MLS information on the Internet or licenses MLS information for advertising on the Internet, the listing broker also shall have the right to opt out of such advertising in accordance with the MLS’s procedures for opting out.  The listing broker shall have the right to refuse to have listings displayed on a blanket basis or on a listing-by-listing basis in accordance with Section 13.16 by affirmatively notifying the MLS in accordance with the MLS procedures for opting out.  Notwithstanding anything in these rules and regulations to the contrary, the Association reserves the right to determine whether to provide Internet advertising services and whether such services are to be made available to non-Association members.

13.17 Website Name and Status Disclosure.  MLS Participants' firm websites shall disclose the firm's name and state(s) of licensure in a reasonable and readily apparent manner.  Websites of Subscribers affiliated with a Participant's firm shall disclose the firm's name and the Subscriber's state(s) of licensure in a reasonable and readily apparent matter.

13.18 Use of the Terms MLS and Multiple Listing Services. No MLS Participant or Subscriber shall, through the name of their firm, their URLs, their e-mail addresses, their website addresses, or in any other way represent, suggest, or imply that the individual or firm is an MLS, or that they operate an MLS.  Participants and Subscribers shall not represent, suggest, or imply that consumers or others have direct access to MLS databases, or that consumers or others are able to search MLS databases available only to Participants and Subscribers.  This does not prohibit Participants and Subscribers from representing that any information they are authorized under MLS rules to provide to clients or customers is available on their websites or otherwise.

      13.19 Virtual Office Websites (“VOW”).

      [Coinciding NATIONAL ASSOCIATION OF REALTORS® VOW Policy (“VOW Policy”), available here, is adopted and incorporated herein]

Section 13.19.1 (a):  A Virtual Office Website (“VOW”) is a Participant’s Internet website, or a feature of a Participant’s website, through which the Participant is capable of providing real estate brokerage services to consumers with whom the Participant has first established a broker-consumer relationship (as defined by state law) where the consumer has the opportunity to search MLS Listing Information, subject to the Participant’s oversight, supervision, and accountability.  A non-principal broker or sales licensee affiliated with a Participant (i.e., Subscriber) may, with his or her Participant’s consent, operate a VOW.  Any VOW of a Subscriber is subject to the Participant’s oversight, supervision and accountability.

(b) As used in Section 13.19 of these Rules, the term “Participant” includes a Participant’s affiliated non-principal brokers and sales licensees (i.e., Subscribers) except when the term is used in the phrases “Participant’s consent” and “Participant’s oversight, supervision and accountability”.  References to “VOW” and “VOWs” include all VOWs, whether operated by a Participant, by a Subscriber, or by an Affiliated VOW Partner (“AVP”) on behalf of a Participant.

(c) “Affiliated VOW Partner” (“AVP”) refers to an entity or person designated by a Participant to operate a VOW on behalf of the Participant, subject to the Participant’s supervision, accountability and compliance with the VOW Policy.  No AVP has independent participation rights in the MLS by virtue of its right to receive information on behalf of a Participant.  No AVP has the right to use MLS Listing Information except in connection with operation of a VOW on behalf of one or more Participants.  Access by an AVP to MLS Listing Information is derivative of the rights of the Participant on whose behalf the AVP operates a VOW.

      (d) As used in Section 13.19 of these Rules, the term “MLS Listing Information” refers to active listing information and non-confidential pending and sold data provided by participants to the MLS and aggregated and distributed by the MLS to Participants.

Section 13.19.2 (a):  The right of a Participant’s VOW to display MLS Listing Information is limited to that supplied by the MLS(s) in which the Participant has participatory rights.  However, a Participant with offices participating in different MLSs may operate a master website with links to the VOWs of the other offices.

(b) Subject to the provisions of the VOW Policy and these Rules, a participant’s VOW, including any VOW operated on behalf of a Participant by an AVP, may provide other features, information or functions, e.g.  Internet Data Exchange (“IDX”) as set forth in Rule 13.16.

(c) Except as otherwise provided in the VOW Policy or in these Rules, a Participant need not obtain separate permission from other MLS Participants whose listings will be displayed on the Participant’s VOW.

Section 13.19.3 (a): Before permitting any consumer to search for or retrieve any MLS Listing Information on his or her VOW, the Participant must take each of the following steps:

(i)  The Participant must first establish with that consumer a lawful broker-consumer relationship (as defined by state law), including completion of all actions required by state law in connection with providing real estate brokerage services to clients and customers (hereinafter “Registrants”).  Such actions shall include, but are not limited to, satisfying all applicable agency, non-agency, and other disclosure obligations, and execution of any required agreements.

(ii)  The Participant must obtain the name of, and a valid email address for, each Registrant.  The Participant must send an email to the address provided by the Registrant confirming that the Registrant has agreed to the Terms of use (described in subsection (d) below).  The Participant must verify that the email address provided by the Registrant is valid and that the Registrant has agreed to the Terms of Use.

(iii)  The Participant must require each Registrant to have a username and a password, the combination

of which is different from those of all other Registrants on the VOW.  The Participant may, at his or her option, supply the username and password or may allow the Registrant to establish its username and password.  The Participant must also assure that any email address is associated with only one username and password.

(b)  The Participant must assure that each Registrant’s password expires on a date certain but may provide for renewal of the password.  The Participant must at all times maintain a record of the name, email address, username and current password of each Registrant.  The Participant must keep such records for not less than 180 days after the expiration of the validity of the Registrant’s password.

(c)  If the MLS has reason to believe that a Participant’s VOW has caused or permitted a breach in the security of MLS Listing Information or a violation of MLS rules, the Participant shall, upon request of the MLS, provide the name, email address, username and current password, of any Registrant suspected of involvement in the breach or violation.  The Participant shall also, if requested by the MLS, provide an audit trail of activity by any such Registrant.

(d)  The Participant shall require each Registrant to review, and affirmatively to express agreement (by mouse click or otherwise) to, a “Terms of Use” provision that provides at least the following:

1. That the Registrant acknowledges entering into a lawful consumer-broker relationship with the

Participant;

1.    That all information obtained by the Registrant from the VOW is intended only for the

Registrant’s personal, non-commercial use:

iii.  That the Registrant has a bona fide interest in the purchase, sale, or lease of real estate of the

type being offered through the VOW;

1. That the Registrant will not copy, redistribute, or retransmit any of the information provided

except in connection with the Registrant’s consideration of the purchase or sale of an

individual property;

1. That the Registrant acknowledges the MLS’s ownership of, and the validity of the MLS’s

copyright in, the MLS database.

(e)   The Terms of Use Agreement may not impose a financial obligation on the Registrant or create any

representation agreement between the Registrant and the Participant.  Any agreement entered into

at any time between the Participant and Registrant imposing a financial obligation on the Registrant or creating a representation of the Registrant by the Participant must be established separately from the Terms of Use, must be prominently labeled as such, and may not be accepted solely by mouse click.

(f)  The Terms of Use Agreement shall also expressly authorize the MLS, and other MLS Participants

or their duly authorized representatives, to access the VOW for the purposes of verifying compliance with MLS rules and monitoring the display of the Participant’s listings by the VOW.  The Agreement may also include such other provisions as may be agreed to between the Participant and the Registrant.

Section 13.19.4:  A Participant’s VOW must prominently display an e-mail address, telephone number, or specific identification of another mode of communication (e.g., live chat) by which a consumer can contact the Participant to ask questions, or get more information, about any property displayed on the VOW.  The Participant, or a non-principal broker or sales licensee licensed with the Participant (i.e., subscriber), must be willing and able to respond knowledgeably to inquiries from Registrants about properties within the market area served by that Participant and displayed on the VOW.

Section 13.19.5:  A Participant’s VOW must employ reasonable efforts to monitor for, and prevent, misappropriation, “scraping”, and other unauthorized use of MLS Listing Information.  A Participant’s VOW shall utilize appropriate security protection such as firewalls as long as this requirement does not impose security obligations greater than those employed concurrently by the MLS.

(NOTE:  MLSs may adopt rules requiring Participants to employ specific security measures, provided that any security measure required does not impose obligations greater than those employed by the MLS.)

Section 13.19.6 (a):  A Participant’s VOW shall not display listings or property addresses of any seller who has affirmatively directed the listing broker to withhold the seller’s listing or property address from display on the Internet.  The listing broker shall communicate to the MLS that the seller has elected not to permit the display of the listing or property address on the Internet.  Notwithstanding the foregoing, a Participant who operates a VOW may provide to consumers via other delivery mechanisms, such as email, fax, or otherwise, the listings of sellers who have determined not to have the listing for their property displayed on the Internet.

(b)  A Participant who lists a property for a seller who has elected not to have the property listing or the property address displayed on the Internet shall cause the seller to execute a document that includes the following (or a substantially similar) provision:

Seller Opt-Out Form

1. Please check either Option a or Option b
2. [   ] I have advised my broker or sales agent that I do not want the listed property to be displayed

on the Internet.

OR

1. [   ] I have advised my broker or sales agent that I do not want the address of the listed property to

be displayed on the Internet.

2. I understand and acknowledge that, if I have selected option a, consumers who conduct searches for listings on the Internet will not see information about the listed property in response to their search.

initials of seller

(c)  The Participant shall retain such forms for at least one year from the date they are signed, or one year from the date the listing goes off the market, whichever is greater.

Section 13.19.7 (a):  Subject to subsection (b), a Participant’s VOW may allow third parties (i) to write comments or reviews about particular listings or display a hyperlink to such comments or reviews in immediate conjunction with particular listings, or (ii) display an automated estimate of the market value of the listing (or hyperlink to such estimate) in immediate conjunction with the listing.

(b) Notwithstanding the foregoing, at the request of a seller the Participant shall disable or discontinue either or both of those features described in subsection (a) as to any listing of the seller.  The listing broker or agent shall communicate to the MLS that the seller has elected to have one or both of these features disabled or discontinued on all Participants’ websites.  Subject to the foregoing and to Section 13.19.8, a Participant’s VOW may communicate the Participant’s professional judgment concerning any listing.  A Participant’s VOW may notify its customers that a particular feature has been disabled “at the request of the seller.”

Section 13.19.8:  A Participant’s VOW shall maintain a means (e.g., e-mail address, telephone number) to receive comments from the listing broker about the accuracy of any information that is added by or on behalf of the Participant beyond that supplied by the MLS and that relates to a specific property displayed on the VOW.  The Participant shall correct or remove any false information relating to a specific property within 48 hours following receipt of a communication from the listing broker explaining why the data or information is false.  The Participant shall not, however, be obligated to correct or remove any data or information that simply reflects good faith opinion, advice, or professional judgment.

Section 13.19.9:  A Participant shall cause the MLS Listing Information available on its VOW to be refreshed at least once every three (3) days.

Section 13.19.10:  Except as provided in these rules, the VOW Policy or any other applicable MLS rules or policies, no Participant shall distribute, provide, or make accessible any portion of the MLS Listing Information to any person or entity.

Section 13.19.11:  A Participant’s VOW must display the Participant’s privacy policy informing Registrants of all of how information that they provide may be used.

Section 13.19.12:  A Participant’s VOW may exclude listings from display based only on objective criteria, including, but not limited to, factors such as geography, list price, and type of property.

Section 13.19.13:  A Participant who intends to operate a VOW to display MLS Listing Information must notify the MLS of its intention to establish a VOW and must make the VOW readily accessible to the MLS and to all MLS Participants for purposes of verifying compliance with these Rules, the VOW Policy and any other applicable MLS rules or policies.

Section 13.19.14:  A Participant may operate more than one VOW himself or herself or through an AVP.  A Participant who operates his or her own VOW may contract with an AVP to have the AP operate other VOW’s on his or her behalf.  However, any VOW operated on behalf of a Participant by an AVP is subject to the supervision and accountability of the Participant.

Section 13.19.15:  A Participant’s VOW may not make available for search by, or display to, Registrants any of the following information:

• Expired, withdrawn, or pending (“under contract”) listings.
• The type of listing agreement, i.e., exclusive right to sell or
• The seller’s and occupant’s names(s), phone number(s), or e-mail address(es).
• Instructions or remarks intended for buyer brokers only, such as those regarding showings or security of listed property.

Section 13.19.16:  A Participant shall not change the content of any MLS Listing Information that is displayed on a VOW from the content as it is provided in the MLS.  The Participant may, however, augment MLS Listing Information with additional information not otherwise prohibited by these Rules or by other applicable MLS rules or policies as long as the source of such other information is clearly identified.  This rule does not restrict the format of display of MLS Listing Information on Vows or the display on VOWs of fewer than all of the listings or fewer than all of the authorized information fields.

Section 13.19.17:  A Participant shall cause to be placed on his or her VOW in a font size and style no smaller than the average used elsewhere in the display, the following, or substantially similar notice:

Based on information from the Humboldt Association of Realtors® (alternatively, from the Humboldt MLS) as of _________ (the date the AOR/MLS data was obtained).  MLS Listing Information displayed on the VOW is usually deemed reliable but is NOT guaranteed accurate by the MLS.  Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals.  Information from sources other than the Listing Agent may have been included in the MLS data.  Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources.  The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.

Section 13.19.18: A Participant shall cause any listing that is displayed on his or her VOW to identify the name of the listing firm and the listing broker or agent, and the email or phone number provided by the listing Participant, in a readily visible color, in a reasonably prominent location, and in typeface not smaller than the median typeface used in the display of listing data. Listing attribution information must appear on the first screen that a viewer sees for a listing or with the property description information (i.e., in close proximity to the bedroom and bathroom count). Any listing attribution must the phrase “Listed by” or “Listing [broker/agent]” instead of “Presented by” or other phraseology that does not clearly distinguish between identification of the listing broker and agent and identification of the advertising agent, if any.

Section 13.19.19:  A Participant shall limit the number of listings that a Registrant may view, retrieve, or download to not more than 500 current listings and not more than 500 sold listings in response to any inquiry.

(NOTE:  The number of days passwords remain valid before being changed or reconfirmed must be specified by the MLS in the context of this rule and cannot be shorter than 90 days.  Participants may, at their option, require Registrants to reconfirm or change passwords more frequently.)

Section 13.19.20         A Participant shall require that Registrants’ passwords be reconfirmed or changed every 90 days.

(Note: The number of days passwords remain valid before being changed or reconfirmed must be specified by the MLS in the context of this rule and cannot be shorter than 90 days. Participants may, at their option, require the Agent to reconfirm or change passwords more frequently.

Section 13.19.21:  A Participant may display advertising and the identification of other entities (“co-branding’) on any VOW the Participant operates or that is operated on his or her behalf.  However, a Participant may not display on any such VOW deceptive or misleading advertising or co-branding.  For purposes of this Section, co-branding will be presumed not to be deceptive or misleading if the Participant’s logo and contact information (or that of at least one Participant, in the case of a VOW established and operated on behalf of more than one Participant) is displayed in immediate conjunction with that of every other party, and the logo and contact information of all Participants displayed on the VOW is as large as the logo of the AVP and larger than that of any third party. Any “call to action” near an advertising listing, such as a button permitting the viewer to contact an agent, must clearly identify whether the action (e.g., clicking the button) will put the viewer in contact with the listing agent or broker or with an advertising agent.

Section 13.19.22:  A Participant shall cause any listing displayed on his or her VOW that is obtained from other sources, including from another MLS or from a broker not participating in the MLS, to identify the source of the listing.

Section 13.19.23:  A Participant shall cause any listing displayed on his or her VOW obtained from other sources, including from another MLS or from a broker not participating in the MLS, to be searched separately from listings in the MLS.

Section 13.19.24:  Participants and the AVPs operating VOWs on their behalf must execute the license agreement required by the MLS.

Section 13.19.25: Where a seller affirmatively directs their listing broker to withhold the seller’s listing from display on the Internet, a copy of the seller’s affirmative direction shall be provided to the MLS within 48 hours.

13.20 Applicability of Rules to MLS or Association.  Nothing in these rules shall limit the right of the A.O.R. or MLS to enter into licensing agreements with third parties for the use of the MLS compilations or any portion thereof in accordance with terms approved by the Board of Directors.

13.21 Participant and Subscriber Standards of Conduct.  The services that Participants and Subscribers provide to their clients and customers shall conform to the standards of practice and competence that are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate.

Participants and Subscribers shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client.  Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.

14. LOCKBOXES.

      14.1    Eligibility for Lockboxes.  MLS Participants and Subscribers are eligible for lockbox privileges if they otherwise qualify under this section.  Clerical Users are not eligible for lockbox privileges.  MLS Participants and Subscribers shall be eligible to have a SentriKey Mobile App account (defined as an electronic key, programmer, or another device by which a lockbox can be opened) provided:

1. a) The SentriKey Mobile App user signs an agreement with the MLS.

1. b) The Participant to which the SentriLock Mobile App user is licensed cosigns the lease agreement with the MLS.

1. c) The SentriKey Mobile App user continues to comply with all MLS rules relating to lockbox access.

1. d) The SentriKey Mobile App user and Participant to whom the SentriKey Mobile App user is licensed remain eligible for MLS services.

14.2    SentriKey Mobile App Use and Service. SentriKey Mobile App may not be used under any circumstances by anyone other than by the SentriKey Mobile App user, including, but not limited to, lending, borrowing or sharing lockbox access with others.  The MLS is not obligated to provide service on SentriKey Mobile App or lockboxes to individuals who are not the registered lessee or owner of the component.  Lockbox access may only be used for the purpose of facilitating the sale or lease of a listed property, unless other use if authorized by the listing agent.

                                            14.2.1 Use of Lockbox Contents. Participants and Subscribers shall at all times follow the showing instructions published in the MLS.  Participants and Subscribers shall not remove contents of the lockbox for purposes other than showing the home and shall promptly return the contents to the lockbox upon exiting the property.  Participants and Subscribers shall keep lockbox contents in their possession at all times after removal from the lockbox. The lockbox and/or contents shall not be removed from the property site without prior consent from the listing agent.

                    14.2.2 Lockbox Requirements.  If any lockbox or other device giving access to On Market listed property for real estate professionals and/or service providers is authorized by the seller and/or occupant and is placed on or present on property listed through the Service, such lockbox or device must be one that is approved by the MLS where the listing has been submitted.  The authorized lockboxes sold by, leased by or otherwise offered through the local Association or MLS where the listing is submitted have been approved by the MLS.  Unless expressly indicated otherwise by the MLS, for any other lockbox or device to be considered “approved,” use of it must provide reasonable, timely access to listed property such that (1) it  allows all participants and subscribers timely access to listed property by reliance solely on data submitted to and residing on the MLS; (2) complete, accurate and stand-alone instructions are provided for accessing the listed property in the appropriate agent section on the Service; and (3) it ensures that the lockbox or device will provide reasonable access to listed property with any information, code or SentriKey Mobile App needed to access the contents of the lockbox or device to be made available or access to the property otherwise scheduled within four [4] hours of initial contact in the event the lockbox or device requires the participating member to obtain additional information to enable access (ex: “call listing agent for entry code”) with said 4 hour response obligation in effect every day from 8am to 6pm.  The MLS reserves the right to require that the device be submitted in advance for approval.  The MLS also may revoke the approval and/or subject the participant to discipline if the device is used in a manner that fails to continue to satisfy this requirement. Failure to provide reasonable and timely access as required by this section will subject the listing agent to discipline and potential fines.  More than one lockbox or access device may be used on a property as long as one of them is -approved where the listing is submitted.

14.2.3 Issuing Temporary Codes.  Listing broker or agent can issue temporary codes/access to the lockbox and property on terms and conditions agreed to in advance by the seller.  Temporary codes/access must expire within seventy-two (72) hours after being issued or must be under the control of the listing broker or agent.  Temporary codes must have a minimum field size of five (5) characters. (XX,XXX).

14.3 Written Authority.  Participants and Subscribers shall not place a lockbox on a property without written authority from the seller and occupant if other than the seller.  Inclusions in MLS compilations cannot be required as a condition of placing lockboxes on the listed property.

14.4 Listing Broker's Permission.  No Participant or Subscriber may enter a property with or without a lockbox without the listing broker's permission.  Such permission may be granted by the listing broker specifying permission to use the lockbox through the MLS.  Appraiser Participants are expressly prohibited from using the SentriKey Mobile App without either the owner's or listing broker's permission.

14.5 Rules Violations.  Failure to abide by rules relating to lockboxes as set forth in this section or failure to abide by the SentriKey Authorized User Agreement may result in discipline as provided in sections 15 and 16 of these rules, in addition to the loss of or restriction on all lockbox and SentriKey Mobile App privileges.

14.6 Right to Limit Access.  The MLS reserves the right to refuse to issue, activate or reactivate a SentriKey Mobile App account or terminate an existing SentriKey Authorized User Agreement or otherwise limit access to lockboxes if, in its sole discretion, it determines the security of the system would be compromised by sharing SentriKey Mobile App passwords or granting access to lockboxes.

14.7 Removal. The lockbox must be removed within three (3) days after the close of escrow or expiration/cancellation of the listing.

      14.8 Appointment to Access Listings.  The listing information form contains showing instructions.  If appointments are required by the seller, they should be made through the listing agent, seller, tenant, or seller’s representative as per the listing information form.  No listing requiring an appointment to show may be shown without an appointment.  Should an individual show a listing requiring an appointment without following the written appointment procedure, they shall be assessed a $50.00 fine.

      14.9 Accessing Listings.  If a listing agent/owner/resident requires notice of who entered the property, it must be stated in the MLS Access Instructions by directing agents to leave a signed, dated, and timed business card or to sign a Showing Checklist. Individuals violating this requirement shall be assessed a $25.00 fine. Promotional materials are prohibited.

14.10 Failure to Replace Residential Keys in Lockbox.  Keys to the residence must be replaced into the lockbox before leaving the property.  If the keys are taken from the property by the individual, that property is effectively off the market.  Individuals will be assessed a fine of $25.00 plus re-keying the house if requested by the owner.

14.11 Securing a Property.  Members shall ensure that all doors to the listed property to which the Member has had access and the lockboxes thereon are locked, unless otherwise instructed.

14.11.1 Upon written notice of an agent leaving a property unsecured, the agent and their broker will each be fined $50.00 for the first occurrence and $100.00 for the second and subsequent occurrences.

14.12  SentriKey Access Sharing. Should a lockbox access holder willfully loan or give their SentriKey access credentials and/or security information to another, the security of the system shall have been compromised.  Sharing your access credentials in any way is in violation of your contract and subjects you to one or more of the following actions at the discretion of the MLS Committee:

1. a) $1,000 fine for username/password violation.
2. b) Loss of SentriKey access.
3. c) Court costs and attorney fees.

15. VIOLATIONS OF RULES AND REGULATIONS.

15.1 Grounds for Disciplinary Action and Sanctions. After a hearing by a hearing panel as provided in the California Code of Ethics and Arbitration Manual, the Board of Directors may take disciplinary action and impose sanctions against any MLS Participant and Subscriber:

• For violation of any MLS rule;
• On the Participant's or Subscriber's being convicted, adjudged, or otherwise recorded as guilty by a final judgment of any court of competent jurisdiction of (1) a felony, or (2) a crime involving moral turpitude, or (3) on a determination by any court of competent jurisdiction, or official of the State of California authorized to make the determination, that the Participant or Subscriber violated a provision of the California Real Estate Law or a Regulation of the Real Estate Commissioner or laws relating to Appraisers or a regulation of the OREA.
• For any violation of subsection (a) by any person, including but not limited to a Clerical User or a salesperson who is not a Participant or Subscriber but is employed by or affiliated with such Participant or Subscriber and was providing real estate related services within the scope of the Participants or Subscribers’ license. Lack of knowledge by the Participant or Subscriber of such salesperson's conduct shall only go to mitigation of discipline imposed.

(d) For any violation of the N.A.R. Code of Ethics while a member of any Association of REALTORS^·

15.2 Sanctions.  Sanctions or disciplinary action for violation of an MLS Rule may consist of one or more of those specified in the California Code of Ethics and Arbitration Manual.

  15.3 Citations.  The MLS committee, subject to approval of the Board of Directors, may implement a schedule of fines for certain MLS rules violations and direct staff to issue citations for the specified MLS rules violations and implement a procedure whereby the Participant and Subscriber receiving the citation may (1) pay the amount specified on the citation, or (2) request citation reconsideration (paper review) in accordance with the procedures set forth in the California Code of Ethics and Arbitration Manual (if such reconsideration procedure has been adopted by the MLS) or (3) request a full hearing in accordance with the procedures set forth in the California Code of Ethics and Arbitration Manual.

15.4 Security Breach.  At the point staff suspects a breach of security, staff is authorized to change the password of the suspected violator, notify the violator of the change and start the grievance process.

16. PROCEDURES FOR MLS RULES HEARINGS. All MLS rules hearings shall be processed in accordance with the California Code of Ethics and Arbitration Manual as from time to time amended which is hereby incorporated by reference. Failure to abide by the procedures of the California Code of Ethics and Arbitration Manual shall be a violation of these MLS rules.

17. ARBITRATION.

17.1 Mandatory Arbitration.  By becoming and remaining a Participant or Subscriber in the MLS, each Participant and Subscriber agrees to submit disputes arising out of the real estate business which also arises out of, or is in conjunction with, any listing filed with the MLS or any appraisal, to binding arbitration with any other Participant or Subscriber of this MLS, or Participants or Subscribers of any other MLS who are authorized to have access to this MLS under Section 6 of these rules.  Such arbitrations shall be governed by the California Code of Ethics and Arbitration Manual as from time to time amended which are hereby incorporated by reference.

This shall be deemed an arbitration agreement within the meaning of Part 3, Title 9 of the California Code of Civil Procedure.  Failure to submit to arbitration and abide by the arbitration award, including but not limited to timely payment of the arbitration award as provided herein shall be a violation of these MLS rules and subjects Participants and Subscribers to possible suspension from the MLS and /or other penalties.

      17.2 Arbitration Agreements.  Notwithstanding any other provision of these rules, if any Participant or Subscriber enters into an agreement (either before or after a dispute arises) with another Participant or Subscriber to arbitrate a dispute utilizing non‑Association facilities, such persons are not bound to arbitrate the dispute covered by such agreement under these rules utilizing Association facilities.

      17.3 Arbitration between Association Members.  Notwithstanding any other provision of these rules:

(a)  If all disputants are members of the same Association of REALTORS®, they shall arbitrate under that Association of REALTORS® in accordance with its rules.

(b) If the disputants are members of different Associations of REALTORS®, they shall arbitrate in accordance with any applicable regional or shared professional standards agreement.  In the absence of such an agreement, the disputants remain obligated to arbitrate at the California Association of REALTORS® (“C.A.R.”) in accordance with the C.A.R. Interboard Arbitration Rules.

• Arbitration Involving Non-Association Members. Notwithstanding any other provision of these rules:

• If all disputants are non-association members and they receive MLS services through the same Association, they shall arbitrate at the Association unless the Association participates in a regional MLS, in which case, they shall arbitrate in accordance with any applicable regional agreements between the Association and the regional MLS.

• If one or more of the disputants are non-association members and all disputants receive MLS services through the same Association, they shall arbitrate at the Association unless the Association participates in a regional MLS, in which case, they shall arbitrate in accordance with any applicable regional agreements between the Association and the regional MLS.

• If one or more of the disputants are non-association members and the disputants receive MLS services through different Associations and the Associations participate in a regional MLS, they shall arbitrate in accordance with any applicable regional agreements between the Associations and the regional MLS.

• In the absence of a regional agreement regarding the location of the arbitration, any dispute under subsection (a) – (c) may be conducted at any Association where the respondent(s) holds Association membership or receives MLS services.

17.5    Same Firm.  Arbitration between persons from the same firm shall not be available and is not mandated by these rules unless covered by arbitration rules relating to the obligations of Association members to arbitrate.

17.6    Timing.  For the purposes of this Section 17, the duty to arbitrate shall be determined when facts giving rise to the dispute occurred.  Therefore, a Participant or Subscriber shall have a duty to arbitrate if the person was an MLS Participant or Subscriber when facts giving rise to the dispute occurred.  Termination of MLS Participation or Subscription shall not relieve the arbitration duty under this section for disputes that arose when the person was an MLS Participant or Subscriber.  Requests for arbitration must be filed within one hundred and eighty (180) days after the closing of the transaction, if any, or after the facts constituting the matter could have been known in the exercise of reasonable diligence whichever is later.

18. NONPAYMENT OF MLS FEES

18.1 Nonpayment of MLS Fees.  If MLS Fees, fines, charges or other amounts owed the MLS are not paid within two months after the due date, the nonpaying Participant and/or Subscriber’s MLS services shall be subject to suspension until such outstanding amounts are paid in full.  The MLS may suspend MLS services under this section provided the MLS gives the participant and/or subscriber at least twenty (20) calendar days prior notice of the proposed suspension date.  Such notice may be included with the original billing statement for MLS fees, fines or charges or any time thereafter.  In the event the amounts owed remain unpaid for three months after the due date, the nonpaying participant and/or subscriber’s MLS services shall automatically terminate regardless of if notice of such termination is given.

18.2 Disputed Amounts.  If a Participant and/or Subscriber disputes the accuracy of the amount owed, the Participant and/or Subscriber may request a hearing before the Board of Directors.  In order to request such a hearing, the Participant and/or Subscriber must first pay the disputed amount in whole which may be refunded in whole or part in accordance with the Board of Director’s determination.  Hearings under this section shall be conducted in accordance with the California Code of Ethics and Arbitration Manual.  In the event the Board of Directors confirms the accuracy of the amount owed, the Participant and/or Subscriber shall also be subject to paying interest at the rate of ten (10%) per annum on such past due amounts.

18.3 Reinstatement:  Any Participant and/or Subscriber whose MLS services have been terminated for nonpayment of MLS fees may reapply for participation in the MLS.  However, prior to being granted access, such Participant and/or Subscriber must pay all fees applicable to new applicants and all past due amounts owed, including paying interest at the rate of ten (10%) per annum on such past due amounts. A $150 reinstatement fee applies.

19. CHANGES IN RULES AND REGULATIONS.

The rules and regulations of the MLS may be amended by a two-thirds vote of all members of the MLS Committee, subject to approval by the Board of Directors.  Any changes to these rules and regulations which are mandated by the National Association of REALTORS shall automatically be incorporated into these rules and regulations and do not require MLS Committee or Board of Directors approval.

20. MISCELLANEOUS MLS RULES

Exhibit A

1. MLS Policy Statements.

1. Changes to the MLS System: All requests for a change in the MLS online system must be put in writing and presented to the Committee for study.

2. MLS Password Reset: There will be a system-wide password reset once a year on March 1^st with a two-step verification. Staff will monitor for violations.

3. MLS Password 2-Step Authentication: There will be randomly enabled 2-step authentication for one day, per device, every six months in FlexMLS.

4. Agent Transfers: Agents transferring between offices may transfer listings in the system provided that the original listing broker gives written authorization for the release of listings to the transferring agent.

5. MLS Waiver Renewal: Those licensees acting under a waiver from MLS shall be required to request renewal of said waiver in writing on an annual basis.

6. Extenuating Circumstances Leave: Members may request an Extenuating Circumstances Waiver from MLS, subject to approval by the MLS Committee and Board of Directors, on an annual basis.

7. Retroactive Service Fees: Retroactive Service Fees shall be defined to include MLS fees and MLS Provider Fees.

8. MLS Billing Policy: The original broker of agents leaving an MLS Participating office after the 1st of the month shall be obligated for the current billing of MLS Provider Fees and monthly service fees.

2. MLS Listing Policy Statements

1. Exclusion From Listing: Where a specific office or person is excluded from showing a property, the listing broker is to privately inform the excluded broker of the seller's wishes.  This type of exclusion must not be put on the online system.

2. Homes Under Construction: It is recommended that homes under construction have the following statement inserted in the MLS:  "All details and specifications are subject to change by the builder/owner".

3. Broker Responsible For Information Submitted to MLS: The Broker shall be responsible for assuring that signed contracts are on file in his/her office prior to submission to MLS or being placed in the MLS data base.

4. Expiration Dates: Expiration dates will not be published in any MLS material distributed to the membership; however, said dates will be on file with the Service.

5. Change Of Listing Ownership: If a property currently on file with the MLS changes ownership, the listing must be resubmitted as a new listing and new listing fees paid.

6. Listings Of Resigned Participants: Upon receipt of written notice of resignation from a Broker Participant, listings will be reassigned by the Broker to another agent or be removed by staff if written authorization is not received in a timely manner.

7. Comparable Data Input Into The MLS: When a broker has participated in the sale of property outside of the MLS system and wishes to input the data for comparable purposes only, the broker can do so, at no cost, after the transaction has been finalized if the following conditions are met:  1. The broker has been given written permission by buyer and seller to publish and disseminate this information into the MLS system.  2.  The information is input as soon as possible after the close of escrow.  3.  Listing, pending and sold dates are the same date.  4. The remarks “Comparable Purposes Only” need to be added into the Agent Remarks or Listing Information area. 5. Only listings in Humboldt and adjacent counties are allowed to be entered for this purpose.

8. Churning: Definition of a Churned Listing is adding a new listing within 30 days of the cancellation or expiration of a listing.  Listings must be off the market for 30 days before a new listing can be put back in the MLS; if a listing is reactivated within 30 days it must be listed as “Back on Market”.  Staff will remove churned listings from the MLS, explain to the listing agent why the listing was removed and inform the agent they must reactivate the old MLS number to avoid churning.

3. MLS Participation Policy Statements

1. Change Of Broker/Participant: The Service shall not require a new Broker/Participant of an MLS office to resubmit all current in-house listings as a "new listing".

2. Transfer Of Participation: The right to participate in the Multiple Listing Service of a designated Participant may be transferred to a similarly qualified participant who is a designated representative of said business.

3. New Participant Training: “The individual agrees to watch an online training webinar or attend a live training within 30 days after access has been provided”.  If notice of online training has not been completed within 30 days MLS participation shall be suspended until completed. (7/14)

4. MLS Sold Policy Statements

1. Sold Information: Copies of all "solds" processed by the service will be made available for sale to appraisers who are affiliate/ lender members of the Association.  Data shall be made available every week using a print listing format.

2. Update Of Sold Information: Listings that are reported as sold following their expiration date will be updated to a sold status by staff at no charge.

3. Incorrect Reporting Of Solds: Solds submitted to MLS showing the incorrect selling information will be corrected by staff when reported and verified.

5. MLS Tour Policy Statements

1. Listings Placed On Tour: Any listing to be placed on tour must be on file with the service and have been assigned an MLS number prior to the compilation of the tour sheet.  Those listings, which are an “exception” to MLS, may not be placed on tour.

2. Tour Guidelines: Each tour area is to set their own guidelines for tour and they have the ability to change the guidelines as needed.  The Association will be given written notice of such guidelines. (9/05)

3. Eureka Tour: Tour is limited to 12 listings per week.  Agents are allowed to pitch a home and ‘unofficially’ add a listing to tour at the meeting.  Listings cannot be on tour more than once with the same MLS number.  There will be no Eureka tours on Tuesdays after Monday Holidays observed by HAR. (10/09). The restriction that a listing can only go on a tour once, is suspended and can go on a Virtual Tour and an in-person tour (when COVID restrictions lift). (7/20).

4. Fortuna Tour: Tour size is per the tour master's discretion.  Listings cannot be on tour more than once with the same MLS number. Agents will vote a week in advance of holidays on holding tour on a holiday weekend.  (10/05) The restriction that a listing can only go on a tour once, is suspended and can go on a Virtual Tour and an in-person tour (when COVID restrictions lift). (7/20).

5. McKinleyville Tour: There is no limit to the number of listings on tour.  Tour is not divided weekly by areas.  Listings cannot be on tour more than once with the same MLS number.  Agents will vote a week in advance of holidays on holding tour on a holiday weekend. (10/05) The restriction that a listing can only go on a tour once, is suspended and can go on a Virtual Tour and an in-person tour (when COVID restrictions lift). (7/20).

6. Tour Attendance: MLS participants and subscribers, Association members and Affiliate members are allowed to attend MLS tour meetings and are allowed to pick up tour sheets and other information given at the meeting.  Guests of the Humboldt Association of REALTORS^® may attend tour meetings only.  Only MLS Participants are allowed to see the listings on tour. (9/05)

6. MLS Virtual Open House Policy

1. Virtual Open House: Virtual Open House is made clear that it is a Virtual Open House. Open Houses can be a pre-recorded open house, or a live feed scheduled open house using Zoom or Face Time. With Zoom, you will be able to share your screen on the video call. If someone signs up for the Virtual Open House, they will be sent a link to the Zoom Open House. You will be able to schedule them for specific times. (4/20)

21. CITATION POLICY

Exhibit C

The purpose of this citation policy is to ensure the integrity of the MLS including the currency and accuracy of its information. Fines will be issued and processed in accordance with this Citation Policy. The citable offenses and fines are subject to change upon approval of the AOR/MLS Board of Directors. The Citation Policy is in addition to and does not replace the provisions of Section 15 of the MLS Rules.

1. For the purpose of the Fine Schedule, the number of violations will be tracked on calendar two-year basis. On the first day of every other calendar year the violation count for each MLS member will be reset to zero (0). MLS has a reset clock of two (2) years.

1. A listing that contains one or more violations of the Citation Policy is considered a violation event for purposes of the Fine Schedule regardless of the category or nature of the violation.

1. A listing that contains more than one violation on the same day will be treated as a single violation for purposes of the Fine Schedule. Multiple violations that occur on the same day but are reported separately are treated as a single violation.

1. Notices of any violation will be sent to both Subscribers and their responsible Participant. A violation must be corrected within two (2) calendar days of notice of violation. Receipt of notice is presumed to be the sooner of three (3) calendar days after mailing or one (1) calendar day after email or facsimile transmission. Failure to correct a noted violation within the two (2) daytime period allotted will result in a new violation for the uncorrected violation with the associated fine for that level of violation. Failure to correct a violation within the two (2) day correction period may also subject a non-conforming listing to removal by the MLS from active display. New violations may be issued for any remaining uncorrected violations until the violations are corrected or the maximum fine is reached as set forth below.

1. The fine amount is determined by the total number of violations accumulated by each MLS member during a two-year time period.

1. Fines are due within fifteen (15) calendar days of receipt of a violation notice. Receipt of notice is presumed to be three (3) business days after mailing or one (1) calendar day after email or facsimile transmission.

1. If a recipient of a citation believes that a violation notice and fine was issued in error, the recipient may request a hearing in accordance to the procedures set out by their MLS/AOR. Prior to requesting a hearing, the violation must be corrected.

18. Failure to pay assessed fines may result in suspension of MLS privileges as detailed in Paragraph 18.1 of the MLS Rules and Regulations.

1. The MLS Committee and/or the Board of Directors reserves the right, at its discretion, to charge a Participant or Subscriber with rules violations by virtue of the hearing process, including the possibility of additional fees or fines, suspension or expulsion, rather than utilizing the citation process. Thus, the below fines may not be all inclusive. Any Participant or Subscriber who accumulates in excess of 3 (three) violations in one calendar year, unless otherwise specified, shall be required to attend a hearing for their actions and potential violations of MLS rules. Additionally, the responsible Participant is required to attend any such hearing of a Subscriber.

1. Reporting of violations will remain confidential. When requested by a complainant, the MLS shall provide a process for processing reports of violations without revealing the complainant’s identity. If the matter is forwarded to hearing, then the MLS Committee, Grievance Committee, MLS staff or other representative must serve as the complainant when the original complainant does not consent to participating in the process or the disclosure of his or her name.

1. The violation fine schedule is as follows:

Tier One:

First Violation: Warning Letter and $50 fine

Second Violation and/or Clear Cooperation: $200.00

Third and Subsequent Violations: $500.00

As set forth in Section D above, violations must be corrected within two (2) calendar days of notice. Violations which remain uncorrected subject the violation recipients to the imposition of new penalties and removal of the listing from active display.

The maximum accumulated fine for a single violation may not exceed the top amount of $15,000 allowed by NAR for assessment of financial penalty. If the maximum accumulated fine amount has been assessed and the violation has not been corrected, the violation recipient’s MLS privileges may be suspended until all accumulated fines have been paid and the noted violation has been corrected.

Tier One Offenses are as follows:

1. Non-Completion of Required MLS Orientation Program Within Set Time Allowed (30 days)
2. Failure of Participant or Subscriber to Notify the MLS of Termination, Transfer, or Addition of Any Clerical Users Affiliated with Participant or Subscriber [Rule 4.3 (Notice re Clerical Users)]
3. Failure of Participant to Notify the MLS of Termination, Transfer, or Addition of any Licensees Under Participant’s License [Rule 4.4 (Notice re Licensees)]
4. Failure to Properly Designate/Correlate License Type [Rules 4.1.3, 4.2.3 (Redundant Participant/Subscriber Qualifications)]
5. Failure to Comply with Reporting Requirements {Rule 6.2 (Late Listing, Late Pending, Late Solds)] – First offense is a $50 fine.
6.   Failure to Properly Specify Listing Type or Class [Rules 8.2-8.3 (Listing Type or Class)]
7. Failure to Update/Change Listing Information [Rule 8.9 (Change of Listing Information)]
8. Unauthorized Cancellation/Withdrawal of Listing; failure of ongoing obligation to report solds [Rule 8.10 (Cancellation/Withdrawal of Listing Prior to Expiration)] [(MLS Listing Policy Statement 8. Churning)]
9. Failure to Provide Complete Listing Information [Rule 8.12 (Detail on Listings)]
10. Making an Offer Compensation to other Participants within the MLS [Rule 8.13 (No Compensation Specified on MLS Listings)]
11. Failure to Comply with Auction Listing Requirements [Rule 8.20 (Auction Listings)]
12. Failure to Disclose REO Status [Rule 8.23 (REO Disclosure)]
13. Failure to Disclose Short Sale Status [Rule 8.24 (Short Sale Listings)]
14. Failure to Input Accurate Information [Rule 9.6 (Accuracy of Information; Responsibility for Accuracy)]
15. Failure to Provide Seller’s Written Direction to Alter Time of Submission of Offers; Failure to Provide Clear and Accurate Notice of Altered Offer Presentation Date/Time [Rule 9.4 (Presentation of Offers)]
16. Failure to Timely Provide Written Verification that Offer Was Presented (or that Seller Waived the Obligation to Have Offer Presented [Rule 9.5 (Submission of Offers and Counter-Offers)]
17. Failure to Timely/Accurately Report Listing Status, Status Changes and Sales [Rule 11.1 Statuses, Rule 11.2 (Reporting of Sales)]
18. Failure to Timely Report Cancellation of Pending Sale [Rule 11.4 (Reporting Cancellation of Pending Sale)]
19. Failure of Requisite Authority to Submit Listing Content [Rule 12.4 (Authority to Put Listings in MLS Compilation)]
20. Wrongful Use of Photographs/Use of Photographs on a Listing Without Proper Authorization [Rule 12.5 (

Photographs/Images on the MLS)]  First offense is $100 fine.

21. Failure to Provide Lawfully Required Privacy Notices and Opt-Out Rights [ Rule 12.10 (Data Privacy)]
22. Misuse of Public Remarks; Failure to Limit Public Remarks to Marketing, Description and Condition of the

Property; Wrongful Use of Remarks on a Listing Without Proper Authorization [Rule 13.5 (Use and Misuse of Remarks)]

23. Unauthorized Use of Term “Sold”; Impermissible Use of Listing Content/Display of Non-Allowable Listing Content [Rule 13.7 ("Sold" Signs, Use of the Term "Sold” and Advertising Sold Listings)]
24. Unauthorized Advertisement of Listing of Another Broker [Rule 13.8 (Advertising of Listing Filed with the MLS), Rule 13.8 (Advertising of Listing in Printed Neighborhood Market Report)] Rule 13.8.2 (Permission to Advertise in Digital and Social Media), Rule 13.8.3 (Listing attribution in Digital and Social Media Advertising.)]

25    Unauthorized Use of Statistical Reports, Sold Data or Comparable Reports in Advertising [Rule 13.9 (Limitations on Use of Information in Advertising)]

26. Failure to Provide Adequate Informational Notice and/or Disclaimers on Print or Non-Print Forms of Advertising or Other Forms of Public Representations [Rule 13.9 (MLS Information in Advertising), Rule 13.15.1 Copies to Prospective Purchasers), IDX Rule 13.16 (s) (Disclaimer), VOW Rule Section 13.19.17].
27. Failure to adhere to Clear Cooperation guidelines [Rule 8.5.1 (Clear Cooperation)] – Automatic second violation or higher ($200 fine)
28. Concessions. No compensation or commissions are to be listed in the concessions.

Tier Two:

First Violation: Warning Letter and $50 fine

Second Violation: $400.00

Third and Subsequent Violations: $1000.00

As set forth in Section D above, violations must be corrected within two (2) calendar days of notice. Violations which remain uncorrected subject the violation recipients to the imposition of new penalties and removal of the listing from active display.

The maximum accumulated fine for a single violation may not exceed the top amount of $15,000 allowed by NAR for assessment of financial penalty. If the maximum accumulated fine amount has been assessed and the violation has not been corrected, the violation recipient’s MLS privileges may be suspended until all accumulated fines have been paid and the noted violation has been corrected.

Tier Two Offenses are as follows:

1. Failure to Comply with “Certification of Nonuse” (back fees owing under Certification to be cumulatively added to citation amount) [Rule 5.1.5 (Certification of Nonuse)]
2. Failure to Input a Required Listing; Failure to Timely Submit a Required Listing [Rule 8.5 (Mandatory Submission)]
3. Failure to Provide Signed Seller Exemption; Failure to Timely Submit Signed Seller Exemption; Exceeding Permissible Scope of Office Exclusive; Failure to Submit Compliant Signed Seller Exemption [Rule 8.6

(Exempted Listings)]

4. Entry of a Listing as New after Withdrawn without a New or Amended Listing Contract [Rule 8.8 (Change of Listing Information)]
5. Failure to Disclose Interest by a Broker Participant or R.E. Subscriber in the Subject Listing [Rule 8.17 (Broker/Agent as Principal)]
6. Failure to Remove Expired Listing; Failure to Obtain Seller’s Written Authorization before Extension/Renewal [Rule 8.19 (Expiration, Extension and Renewal of Listings)]
7. Prohibited Co-Listing [Rule 8.25 (Co-Listing)]
8. Violation of DOM/CDOM Calculation [Rule 8.26 (Days on Market/Cumulative Days on Market Calculation)]
9. Failure to Provide Appropriate Written Documentation of Listing; Failure to Disclose Known Additional Property Owner Information [Rule 9.2 (Listing Agreement Written Documentation)]
10. Failure to Provide Appropriate Written Documentation of Buyer Broker Agreement [Rule 9.4 9Buyer Broker Agreement Written Documentation)
11. Failure to Provide Required Consumer Disclosures Regarding Broker Compensation [Rule 9.5 9Required Consumer Disclosures Regarding Compensation]
12. Failure to Correct Incomplete or Inaccurate Information after MLS Notification [Rule 9.6 (Accuracy & Correction)]
13. Misrepresentation of the Availability of Access to Show or Inspect a Listed Property; Failure to Abide by Showing Availability Representation [Rule 9.3 (Availability to Show or Inspect)]
14. False Representations; Failure to Abide by True Picture Standard of Conduct [Rule 13.10 (False or Misleading Advertising and Representations)]
15. Violation of Competency Standard [Rule 13.21 (Participant and Subscriber Standards of Conduct)]
16. Failure to Provide MLS-Approved Lockbox [Rule 14.2.1 (Lockbox Requirements)]
17. Violation of Temporary Code Procedure [Rule 14.2.2 (Issuing Temporary Codes)]
18. Failure to Timely Remove Lockbox after COE or Expiration/Cancellation of Listing [Rule 14.12 (Lockbox Removal)]

Tier Three:

First Violation: Warning Letter and $50 fine

Second Violation: $600.00

Third and Subsequent Violations: $2,000.00

As set forth in Section D above, violations must be corrected within two (2) calendar days of notice. Violations which remain uncorrected subject the violator to the imposition of new penalties and removal of the listing from active display.

The maximum accumulated fine for a single violation may not exceed the top amount of $15,000 allowed by NAR for assessment of financial penalty. If the maximum accumulated fine amount has been assessed and the violation has not been corrected, the violation recipient’s MLS privileges may be suspended until all accumulated fines have been

paid and the noted violation has been corrected.

Tier Three Offenses are as follows:

1.  Failure to obtain sellers authority to list in MLS [Rule 9.1 (Listing Agreement and Seller’s Permission)]
2.  Failure to be Physically Present when Providing Access to a Listed Property to Buyers and Potential Buyers

[Rule 10.9 (Physical Presence of Participant or Subscriber)]

3.  Intentionally Report Inaccurate Sales (Sold) Data in MLS [Rule 11.1 Statuses, Rule 11.2 (Reporting of Sales)]
4.  Failure to follow or exhaust required internal pre-procedure for participant vs participant complaints of

Unauthorized use of listing content prior to proceeding to Court [Rule 11.11 (Pursuing Complaints of

Unauthorized Use of Listing Content)]

5. Use of MLS data or data feeds to directly or indirectly establish or maintain a platform to make offers of compensation from multiple brokers to buyer brokers or other buyer representatives [Rule 12.16 Prohibition on Creating a Platform for Making Offers of Compensation from Multiple Brokers]
6. Failure to timely notify of DRE or BREA adverse action [Rule 13.1 (Notification of California Department

of Real Estate (DRE) or California Bureau of Real Estate Appraisers (BREA) Action)]

7. Unauthorized Use of MLS Information [Rule 13.11 (Use of MLS Information)]
8. Unauthorized Sharing of MLS Information and Pass Codes; Use of MLS by Unauthorized Party [Rule 13.12

(Confidentiality of MLS Information)] - $1,000 Fine

9. Unauthorized Clerical User Access and Use of MLS Information [Rules 13.12.2, 13.14.1 (Clerical Users)]
10. Misuse of Reproduction of MLS Information [Rule 13.15 (Reproduction)]
11. Sharing the MLS compilation or portion thereof with any third-party vendor not authorized by the MLS [Rules

13.11 (Use of MLS Information), 13.12 (Confidentiality of MLS Information) and 13.15 (Reproduction)]

12. Unauthorized Reproduction of Confidential Fields and Information [Rule 13.15.2 Confidential Fields)]
13. Unauthorized Compilation Downloading or Transmission of Data; Failure to Restrict Access to Authorized           Party [Rule 13.15.4 (Downloading onto Computers)]
14. Misuse of MLS Data on Public Website; Violation of IDX Rules [Rule 13.16 (IDX)]
15. Misuse of MLS Data on Public Website; Violation of VOW Rules [Rule 13.19 (VOW)]
16. Unauthorized Sharing of Lockbox Access [Rule 14.2 (SentriKey Mobile App Use and Service)]
17. Wrongful Use or Removal of Lockbox Contents; Failure to Follow Showing Instructions [Rule 14.2.1 (Use of Lockbox Contents)]
18. Failure to Obtain Seller’s Permission to Place a Lockbox [Rule 14.5 (Written Authority)]
19. Unauthorized Entrance into a Listed Property; Failure to Follow Showing Instructions [Rule 14.6 (Listing

Broker’s Permission)]

20. Failure to obtain a Buyer Broker Agreement prior to touring a home. [Rule 9.3]