As of August 6, 2024, the CDAR MLS Rules and Regulations have changed to comply with the NAR Settlement. This largely includes the removal of any compensation language in the MLS Rules and Regulations. Changes were also made to language in the rules as per the California Association of REALTORS® mandatory changes requested. Other changes that were made were done so at the direction of CDAR MLS Committee’s regularly recommended changes based on their audit and review of the existing Rules and Regulations.
Below is an FAQ detailing all of the relevant rule changes, and what you need to know about the rules that are being added, removed, replaced, and/or updated.
For the updated MLS Rules and Regulations and the updated Citation policy, please visit our MLS Rules and Regulations page.
The language in Rule 2, “Purpose,” was updated.
The new Rule 2 language reads as such:
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, customers and the public.
Language was removed that pertained to compensation, as per the NAR Settlement.
Rule language in Rule 4.1.1., “Broker Participant,” was updated.
The relevant language changes for Rule 4.1.1. are as follows:
c) The individual or corporation for which the individual acts as a broker/officer cooperates with other brokers*;
f) …
*Note: Mere possession of a broker’s license is not sufficient 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 interests 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 as long as the level of service satisfies state law.
The key is that the Participant or potential Participant actively endeavors to cooperate with respect to properties of the type that are listed on the MLS in which participation is sought. Cooperation is the obligation to share information on listed property and to make 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 No. 12.19] (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 in fact not doing so.
These requirements shall be applied on a nondiscriminatory manner to all Participants and potential Participants.
Language was removed that pertained to compensation, as per the NAR Settlement.
The language in Rule 4.6,”Listing Broker Defined,” was updated.
The new Rule 4.6 language reads as such:
For purposes of these MLS rules, a listing broker is a Broker Participant who is also a seller’s agent in accordance with Business and Professions Code Section 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.
The language of the rule was updated.
The language in Rule 4.7,”Buyer Broker Defined,” was updated.
The new Rule 4.7 language reads as such:
For purposes of these MLS rules, a buyer broker is a Broker Participant who is also a buyer’s agent as defined in Business Code Section 10000 et. seq. who acts in cooperation with a listing broker to find or obtain a buyer or lessee. The buyer’s broker may be the agent of the buyer or, if subagency 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.
The language of the rule was updated.
Rule language in Rule 7.2, “Listing Agreement Type; Responsibility for Classification,” was updated.
The new Rule 7.2 language reads as such:
The service shall accept exclusive right to sell, seller reserved, open, and probate listings in accordance with 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. 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 Broker Participant and R.E. Subscriber to properly classify the type of listing, and if necessary, obtain a legal opinion to determine the correct classification. By classifying the type of listing, the listing broker certifies that the listing falls under the legal classification designated. The MLS shall have no affirmative responsibility to verify the listing type of any listing filed with the service. However, the MLS shall have the right to have legal counsel make a determination as to the classification of the listing 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 listing type.
Language of the rule was updated, and other language herein removed that pertained to compensation, as per the NAR Settlement.
The language of Rule 7.3., “Types or Sub Types of Properties; Responsibility for Classification,” was updated.
The relevant language changes for Rule 7.3. are as follows:
It shall be the responsibility of the Broker Participant and R.E. Subscriber to properly classify the type or sub type of property listed, and if necessary, obtain a legal opinion to determine the correct classification. By classifying the type or sub 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 or sub type of any listing filed with the service. However, the MLS shall have the right to have legal counsel make a determination as to the classification of the property type or sub 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 or sub type of the listing. Submission of duplicate listings by the same Participant within the same property class is prohibited.
The language of the rule was updated.
Rule 7.12 is changing from “Unilateral Contractual Offer; Subagency Optional” to “No Compensation Offers in the MLS”
The new Rule 7.12, “No Compensation Offers in the MLS,” reads as such:
A Listing Broker may not input, or otherwise use the MLS in any capacity, or in any field, media or document uploaded to the MLS, to offer or convey any amount or any willingness of Listing Broker to share a commission with a Buyer Broker, or for a Seller to offer a specific compensation amount to a Buyer Broker. Nothing in this rule shall prevent the Listing Broker from inputting any amount or invitation from Seller to consider any concessions that may be requested by a Buyer in an offer, as long as any such communication of a concession does not limit or condition the concession on being used to pay any Buyer Broker or other buyer representative.
All compensation language is being removed from the MLS and the rule reflects that participants and subscribers are prohibited from adding such information into the MLS, as per the NAR Settlement.
UPDATE: As per the CDAR Board of Directors, the language of Rule 7.12 was updated to provide more concise language.
A previous version of the rule appeared as below:
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 a Buyer Broker or other buyer representative.
Rule 7.13, “Acceptance of Contractual Offer,” is being removed completely from the MLS Rules and Regulations
The following rule language is being removed from the MLS Rules and Regulations:
The Listing Broker Participant’s contractual offer (with or without subagency) is accepted by the Buyer Broker Participant by procuring a buyer which ultimately results in the creation of a sales or lease contract. Payment of compensation by the Listing Broker Participant to the Buyer Broker Participant under this section is contingent upon either (1) the final closing or (2) the Listing Broker Participant’s receipt of monies resulting from the seller’s or buyer’s default of the underlying sales or lease contract. Notwithstanding this section, the listing broker and/or buyer broker shall still retain any remedies they may have against either the buyer or seller due to a default under the terms of the purchase agreement, listing agreement or other specific contract. Any dispute between Participants arising out of this section shall be arbitrated under Section 16 of these rules and shall not be considered an MLS rules violation.
This rule is being removed completely as to comply with the NAR Settlement.
Rule 7.15, “Estate Sale, Probate and Bankruptcy Listings,” is being removed completely from the MLS Rules and Regulations
The following rule language is being removed from the MLS Rules and Regulations:
Compensation offered through the MLS to buyer brokers on estate sale, probate or bankruptcy listings is for the amount published therein as long as the buyer broker produces the contract which is ultimately successful and confirmed by the court, if court confirmation is required. In the event the contract produced by the buyer broker is overbid in court and the overbid contract is confirmed, the original buyer broker shall receive the amount of compensation specified as “unconfirmed buyer broker’s compensation” or “u.b.b.” in the property data profile sheet and on the MLS. For estate sale or probate listings, the compensation offered through the service under these rules and this section shall be considered an agreement as referred to in California Probate Code Section 10165 and will therefore supersede any commission splits provided by statute when there is no agreement. This section contemplates that estate sale, probate and bankruptcy judges have broad discretion and therefore are not intended as a guarantee of a specific result as to commissions in every probate or bankruptcy sale.
This rule is being removed completely as to comply with the NAR Settlement.
Rule 7.16, “Changes to Offer of Compensation by Listing to All Broker Participants,” is being removed completely from the MLS Rules and Regulations
The following rule language is being removed from the MLS Rules and Regulations:
The listing broker may, from time to time, adjust the published compensation offered to all MLS Broker Participants with respect to any listing by changing the compensation offered on the MLS or providing written notice to the MLS of the change. Any change in compensation will be effective after the change is published in the MLS, either through electronic transmission or printed form, whichever occurs first. The listing broker may revoke or modify the offer of compensation in advance as to any individual Broker Participant in accordance with general contract principles but in no event shall the listing broker revoke or modify the offer of compensation without the buyer broker’s consent later than the time the buyer broker (a) physically delivers or transmits by fax or e-mail to the listing broker a signed offer from a prospective buyer to purchase the property for which the compensation has been offered through the MLS, or (b) notifies the listing broker in person or by telephone, fax or e-mail that the buyer broker is in possession of a signed offer from a prospective buyer to purchase the property for which the compensation has been offered through the MLS and is awaiting instructions from the listing broker as to the manner of presentation or delivery of that offer. Any independent advance revocations, modifications of the offer or agreements between real estate brokers are solely the responsibility of such brokers and shall not be submitted to, published by, or governed in any way by the service.
This rule is being removed completely as to comply with the NAR Settlement.
Rule 7.22, “Dual or Variable Rate Commission Arrangements,” is being removed completely from the MLS Rules and Regulations
The following rule language is being removed from the MLS Rules and Regulations:
The existence of a dual or variable commission arrangement shall be disclosed by the listing broker by a key, code or symbol as required by the MLS. A dual or variable rate commission arrangement is one in which the seller or owner agrees to pay a specified commission if the property is sold by the listing broker without assistance and a different commission if the sale results through the efforts of a buyer broker, or one in which the seller or owner agrees to pay a specified commission if the property is sold by the listing broker either with or without the assistance of a buyer broker and a different commission if the sale results through the efforts of a seller or owner. The listing broker shall, in response to inquiries from potential buyer brokers, disclose the differential that would result in either a cooperative transaction or, alternatively, in a sale that results through the efforts of the seller or owner. If the buyer broker is representing a buyer or tenant, the buyer broker must then disclose such information to his or her client before the client makes an offer to purchase or lease.
This rule is being removed completely as to comply with the NAR Settlement.
The name of Rule 7.21 (previously Rule 7.25) is going from “Listings and Co-Listings” to “Co-Listings.”
The name of the rule is changing. The language remains the same.
The language of Rule 7.22 (previously Rule 7.26), “Days in MLS,” was updated.
The new Rule 7.22 language reads as such:
The calculation of Days in MLS (DIM) is based on the date the listing was entered into the MLS and is tied to the brokerage firm holding the listing. DIM only begins to accrue when a listing goes into Active status and does not accrue while a listing is in Coming Soon status. MLS tracking of this field, if any, shall be classified as “non-confidential” for the purpose of allowing Participants and Subscribers to make such information available to clients or customers pursuant to Sections 12.15.1 (Client Copies) and 12.19 (VOWs). [Whether display of this field is permitted for advertising purposes, including IDX display set forth in Section 12.16, is at the discretion of the MLS.]
Language was added to the rule regarding DIM accrual.
The language of Rule 7.24 (previously Rule 7.28), “Short Sale (Lender Approval) Listings,” was updated.
The new Rule 7.24 language reads as such:
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.
Language was removed that pertained to compensation, as per the NAR Settlement.
Rule language in Rule 8.1, “Listing Agreement and Seller’s Permission,” was updated.
The relevant language changes for Rule 8.1 are as follows:
b) act as a representative for the seller;
The language of the rule was updated.
The name of Rule 8.2 was updated to “Listing Agreement Written Documentation.” The rule’s language was also updated.
The relevant language changes for Rule 8.2 are as follows:
a) 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 not made a signatory to the listing, 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 are eligible for submission to the service. By inputting a listing to the service, Broker Participants and R.E. Subscribers represent that they have in their possession such written agreements establishing the represented type of listing agreement.
The language of the rule was updated.
Rule 8.3, “Buyer Broker Agreement,” was added to the MLS Rules and Regulations.
The new Rule 8.3 reads as follows:
All MLS Participants and R.E. Subscribers working with a buyer must enter into a written agreement with the buyer prior to 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 and 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.
The new rule was added to comply with the NAR Settlement agreement.
Rule 8.4, “Buyer Broker Agreement Written Documentation,” was added to the MLS Rules and Regulations.
The new Rule 8.4 reads as follows:
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 and MLS Participant or R.E. Subscriber working with the buyer tours a property listed 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 8.3, the service shall have the right to discipline the Participant or Subscriber for a violation of MLS Rules.
The new rule was added to comply with the NAR Settlement agreement.
Rule 8.5, “Required Consumer Disclosures Regarding Compensation,” was added to the MLS Rules and Regulations.
The new Rule 8.5 reads as follows:
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, and 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, and 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 disclosure 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.
The new rule was added to comply with the NAR Settlement agreement.
The language in Rule 8.8, “Buyer, Seller, Purchase, and Sale Defined,” was updated.
The new Rule 8.8 language reads as such:
Except as provided in Sections 7.5 and 7.6 and Sections 8.3 and 8.4, all references to the buyer shall also include lessee. All references to the seller shall also include lessor. All references to a purchase shall also include a lease. All references to a sale shall also include a lease.
The language of the rule was updated.
Rule 9.7, “Change of Compensation Offer by Buyer Broker,” is being removed completely from the MLS Rules and Regulations
The following rule language is being removed from the MLS Rules and Regulations:
The buyer broker shall not use the terms of an offer to purchase to attempt to modify the listing broker’s offer of compensation nor make the submission of an executed offer to purchase contingent on the listing broker’s agreement to modify the offer of compensation. However, failure of a buyer broker to comply with this rule shall not relieve a listing broker of the obligation to submit all offers to the seller as required by Section 9.4.
This rule is being removed completely as to comply with the NAR Settlement.
The language in Rule 9.8, “Physical Presence of Participant or Subscriber,” was updated.
The new Rule 9.8 language reads as such:
A Participant or Subscriber must be physically present on the property at all times when providing access to a listed property unless the Seller has consented otherwise.
Language was removed that pertained to compensation, as per the NAR Settlement.
The “Coming Soon” language found in Rule 10.1, “Statuses,” was updated.
The relevant language changes for Rule 8.2 are as follows:
c) Coming Soon (H): A valid listing contract is in effect, but Seller has instructed Listing Broker not to show the property to any potential buyers for a period of time. The listing must be submitted to the MLS pursuant to Rule 7.5. Property may not be in this status for more than twenty-one (21) days after the entry date of the listing. Following the maximum number of days allowed, the listing will automatically change to Active from Coming Soon status. This is an On-Market status. Days in the MLS (DIM) will not count. The property is not available for showings consistent with Rule 9.3.
Any public-facing marketing done by the Listing Broker (i.e. sign, printed materials, and digital and social media) while a listing is in Coming Soon status must clearly indicate that the listing is in Coming Soon status. No showings of the property or open houses are permitted while the listing is in Coming Soon status. Buyers can make offers on properties in Coming Soon status which must be presented to the Seller in compliance with these rules.
The language of the “Coming Soon” status was updated.
Rule 11.16, “Prohibition on Creating a Platform for Making Offers of Compensation from Multiple Brokers,” was added to the MLS Rules and Regulations.
The new Rule 11.16 reads as follows:
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 Subscriber’s access to any MLS data and feeds.
The new rule was added to comply with the NAR Settlement agreement.
The language in Rule 12.5, “Misuse of Marketing/Public Remarks and Media,” was updated.
The new Rule 12.5 language reads as such:
Information in the marketing/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 marketing/public remarks. No information other than the marketing, description and condition of the property is permitted. Participants and Subscribers may not use the marketing/public 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 marketing/public 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 marketing/public remarks in accordance with these rules. Copying of marketing/public 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 marketing/public remarks.
Language was removed that pertained to compensation, as per the NAR Settlement.
The language in Rule 12.11, “Use of MLS Information,” was updated.
The new Rule 12.11 language reads as such:
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 information for any purpose other than to market property to bona fide prospective purchasers or to support market evaluations or appraisals as specifically allowed by Sections 12.14, 12.15, 12.16 and 12.19. MLS information may also be used to develop Statistics, Market Condition Reports, and Broker and Agent Metrics. Any use of MLS information inconsistent with these Sections is expressly prohibited. Nothing in this Section, however, shall limit the A.O.R. from entering into licensing agreements with MLS Participants and Subscribers or other third parties for use of the MLS information.
Language was removed that pertained to compensation, as per the NAR Settlement.
The language in Rule 12.14, “Display,” was updated.
The new Rule 12.14 language reads as such:
Subject to Sections 12.15, 12.16 and 12.19, Broker Participants and R.E. Subscribers shall be permitted to display the MLS compilation in either electronic or printed format to specifically identified and bona fide 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 bona fide 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.
The language of the rule was updated.
The language in Rule 12.16, “Use of Active Listing Information on Internet [Also Known as Internet Data Exchange (“IDX”)],” was updated.
The relevant updated Rule 12.16 language reads as such:
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, pending and sold listing information through either downloading or by framing such information on the MLS or association 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. The downloading of raw data will be through the Participant only. [Note: Listings in Coming Soon status are not authorized for display by this rule.]
The language of the rule was updated as pertaining to “Coming Soon” listings.
