Two New Clear Cooperation Policy Rule Updates: A Summary

In response to the NAR-mandated Clear Cooperation Policy and feedback from California agents and brokers, CRMLS overhauled its rules as of May 1st, 2020. Soon after, the CRMLS Board of Directors voted to update two additional rules.

These updates are meant to help clarify areas of concern among real estate professionals in the CRMLS system. For CRMLS users like you, they mean a clearer, more robust enforcement system to ensure a level playing field across the board.

In this blog post, we’ll go over both of these changes in detail.

UPDATE #1: Mandatory Submission Upon Marketing

Click here for Updated Rule 7.5.1 for Paragon Users

This change is to Rule 7.9 in the CRMLS Rules and Regulations (Rule 7.5.1 in the San Diego Paragon Rules and Regulations). The CRMLS Board of Directors, in its continuing effort to support the brokerage community, has updated the Mandatory Submission Upon Marketing rule to make the rule applicable only after an exclusive listing agreement has been signed.

The changes to the rule are in red:

Mandatory Submission upon Marketing: Within one (1) business day of marketing or advertising a residential property to any member of the public for sale which contains one to four units, or is a residential vacant land lot which is subject to any exclusive right to sell or seller reserved listing agreement, the Listing Broker must submit the property into the MLS for cooperation with other CRMLS participants. Marketing and advertising includes, but is not limited to, any information about the property or its availability for sale displayed on any: signs, websites, social media, brokerage or franchise operated websites, communications (verbal or written), multi-brokerage or franchise listing sharing networks, flyers or written material, on any applications, or by conducting an open house. Any individual or entity that has signed, within the previous year a Disclosure Regarding Real Estate Agency Relationship form in compliance with CA Civil Code section 2079.16 that identifies the Listing Broker shall not be considered a “member of the public” under this rule. 

This means agents, even those with different brokerage firms, may discuss and provide details about a potential transaction on a property that is not yet subject to an exclusive listing agreement. Doing so does not trigger the requirement to place that property into the MLS for cooperation.

Many brokers expressed concern about applying the Clear Cooperation Policy to unlisted properties. Taking these suggestions and input from the brokers into consideration, the CRMLS Board has decided to modify the rule to make it clear that conversations about properties that are not subject to an exclusive listing agreement may occur without triggering the Mandatory Submission rule.

UPDATE #2: CRMLS Service Area Expansion

The CRMLS Board of Directors has voted to expand CRMLS’s service area.

The newly defined CRMLS service area now covers the following:

  • All counties in which CRMLS currently has a footprint
  • All counties in which our data share partners have a footprint

This change means that CRMLS may respond more nimbly to reports of off-MLS marketing in its system. For users like you, it means a more robust enforcement system to ensure a level playing field across the board.

Please keep in mind that, like previous service area expansions, this has no impact on non-CRMLS users. Real estate professionals who do not use CRMLS are not bound by the CRMLS Rules and Regulations. For more information, visit our Service Area FAQs document.

Conclusion

We hope you find this information helpful. As always, if you have any questions or concerns, please reach out to us in the comments below, or via the CRMLS Customer Care Department at 80

4 comments

  • Connie Beverly

    Does this rule apply for lease listings? Reason I ask is I have a client I am assisting in finding her a property to lease. I called one broker and he said he does not have it on the mls and is not cooperating with other brokers.

    • No. Per rule 7.9, mandatory submission is only required for sale of residential properties of 1-4 units and vacant land lots.

  • How does this apply to new construction (SFR homes or less than 4 units)? Specifically when is new construction required to be entered on the MLS. Thank you.

    • New construction listings are exempt from the Clear Cooperation rules only if they meet the definition of new construction in our rules (Section 7.18.4) . Specifically, if the project is subject to a final public report under the Subdivided Lands Law, the listings would be exempt. So, it really depends on the project. Generally, single units or 1-4 unit projects do not meet the standards as they are exempt from the public report requirement.

      7.18.4 New Construction Listings

      a) Any Residential Property listed in the MLS that requires the disclosure of a Final Public Report pursuant to the Subdivided Lands Law prior to a sale of the property shall be designated a NEW CONSTRUCTION LISTING (NCL). All MLS Rules shall apply to an NCL except as modified as follows:
      b) Submitting an NCL shall cause to be exempted from the Mandatory Delivery Rule 7.8 each individual lot within the subdivision covered by the same Final Public Report as the NCL.
      c) NCL Listing Broker agrees that the offer of compensation for the NCL filed with the MLS shall be the same offer of compensation pursuant to Rule 7.15 for all of the properties requiring disclosure of the same Final Public Report as the NCL property.
      d) Any agreement to modify the amount of the offered compensation published in the MLS as of the date the offer from a buyer is made, shall be voidable at the option of the buyer’s agent.
      e) Rule 7.9 Mandatory Submission Upon Public Marketing shall not apply to NCL’s.

Leave a Reply

Your email address will not be published. Required fields are marked *

3 + 3 =

This site uses Akismet to reduce spam. Learn how your comment data is processed.