Highlights of the Revised Rules & Regulations

Effective 10/10/11

Last November, the Board of Directors appointed a task force for the purpose of updating BAREIS MLS® Rules and Regulations. The task force, together with BAREIS’ staff, spent several months reviewing and rewriting our Rules and Regulation with the goal of creating an updated set of Rules and Regulations that are, wherever possible, more in-line with CARs Rules & Regulations, as well as a more accurate representation of the guidelines under which BAREIS MLS® Members should be operating.

The Revised BAREIS MLS® Rules & Regulations are effective October 10, 2011.While the Regulations may not appear to have changed much from previous versions, there are several significant changes that we want to bring to your attention. There are many other revisions that have been made that we will not mention here. We encourage you to read the revised Regulations in their entirety to ensure you are aware of all the changes, and to contact us if you have any questions or comments about the new rules.

Format

BAREIS MLS® Rules and BAREIS MLS® Regulations have been combined into one document, now known as the BAREIS MLS® Rules & Regulations (the Regulations).

Regulations

Auction Rule. BAREIS will accept auction listings within the provisions of Regulation 9.3.1.

Excluding Listings and Listing Data from MLS and Internet Sites. Regulation 9.8 specifies that final sales data or final results of the transaction shall be reported to BAREIS MLS® for all properties listed in the MLS database.

Removal of Listings. Regulation 9.9 provides that BAREIS is authorized to remove any listing from the MLS compilation where the Member has refused or failed to comply with any BAREIS Regulation and/or membership duty.

Deed Returned to Lender. Regulation 9.19.6 provides details for updating a listing that results in a return of the deed to the lender.

Comparable Listings. Regulation 9.20 has been amended so that BAREIS will now accept a properly executed CALIFORNIA ASSOCIATION OF REALTORS® purchase contract granting permission to report the results of the transaction to the MLS in lieu of the BAREIS Permission to Post Form, provided all required exclusions have been filed.

Disclosing the Existence of Offers. Regulation 10.2 requires listing brokers to disclose the existence of offers on the property when an inquiry is made from a buyer or a Cooperating broker unless instructed otherwise by the Seller.

Submitted Listings with “Do Not Show” Instructions. In the event an “Active” listing cannot be shown by cooperating brokers for more than three days, Regulation 10.3 requires the status be changed to “Temporarily Off Market” until the property is available to show.

Database Preservation. Regulation 12.1 provides that no data (listings) may be removed from the MLS database other than by BAREIS.

Use of Internet Search Criteria. Regulation 14.2 requires members to present a true picture in Internet representations to the public, and forbids unauthorized framing, manipulation of listing content, and deceptive use of metatags, keywords, and other devices to mislead consumers, including inducing belief that the brokerage is an MLS or providing access to the MLS.

Protection of Property. Regulations 10.4 and 15.10 require a member to be present on the property at all times when providing access to a listed property unless the seller has consented otherwise in writing. This rule strengthens the ability of the MLS to discipline members who provide an access code or key to a client to enter or remain in a property unsupervised. Use of Lockbox Contents. Regulation 15.10.1 expands the guidelines for proper use of keys and codes after removal from the lockbox. Lockbox contents may be used only to facilitate the sale or lease of the property; lockbox contents must remain in the possession of the member until the member returns them to the lockbox; and lockbox contents shall not be removed from the property without prior consent from the listing agent. Additionally, members shall follow the showing instructions published in the MLS.

Section 14, Listing Data on the Internet, has been updated and rearranged.

Appendices

Definitions have been expanded and moved from Section 3 to Exhibit C, and are located at the end of the document. Definitions that once appeared throughout the document can now be located in Exhibit C. “Participant” is used throughout the document when the rule applies directly to the broker member. “Member” is used throughout the document when the rule applies to either a Participant or a Subscriber.

Exhibit B, Warnings, Citation and Appeals Policy, has been amended to reflect the new warning policy; that is, any Member who, within a 12-month period, has been warned twice with the opportunity to correct for a violation of a Regulation will automatically receive a citation for the third violation of the same Regulation. Every Member will receive an automatic fine for any violation, regardless of the Regulation violated, for the fifth and subsequent violations within a 12-month period.

Exhibit A-2, Citations for Violations, has been expanded to reflect fines for each individual rule where a fine may be levied. Certain violations are subject to the disciplinary complaint process as provided in the California Code of Ethics and Arbitration Manual, and those violations are identified as such. Please note that most fines are progressive and will increase in dollar amount for the second or subsequent fine for the same offense, or if the initial offense remains uncorrected.

Exhibit A-1, Fees and Charges, has been expanded. Many of the “new” fees that are now listed in the chart are not new but are actually existing fees that were not previously identified in this schedule. Please note the addition of an administration fee for members wishing to file an appeal of a citation or to appeal a decision of the Rules Committee.

Also effective 10/10/11, the revised BAREIS MLS® Seller Authorization to Exclude Listing and/or Data Form (SEL Form) will be required to exclude a listing from the MLS or from the Internet. The form is also used to exclude photos of the property from the MLS Database. As a reminder, failure to submit a completed SEL form within 3 business days of entering into a listing agreement that a seller requests to be excluded from the MLS is a violation of BAREIS MLS® Regulations.

To view the revised BAREIS MLS® Rules & Regulations effective 10/10/11: http://bareis.com/sites/bareis.com/files/regulations_effective_10_10_11.pdf

The current version of BAREIS MLS® Regulations can be viewed for comparison at: http://bareis.com/rules