July 23rd, 2018 at 2:22 pm
I am the buyer’s agent. In a Seller Multiple Counter Offer (SMCO), the seller required my buyers to agree to keep the property’s status in the MLS as “Active.” My buyers were very worried about losing the deal to another buyer, so they signed the SMCO. The seller accepted my buyers. Based on this agreement, is the listing agent allowed to keep the MLS status as “Active”?
Answer: No. Rule 10.2 of the California Model MLS Rules requires a listing broker with an accepted offer to report it as “Pending” or “Active Under Contract” within 2 days after acceptance. (Note: Each local MLS may adopt a slightly different rule, e.g. use a different time frame.) The agreement between the seller and buyer to keep the MLS status as “Active” does not change the fact that they have an accepted offer. Additionally, the seller and buyer have no authority or obligation to report any information to the MLS. That reporting obligation belongs to the listing agent.
Aside from the MLS rules, the California Department of Real Estate (DRE) prohibits agents from making any substantial misrepresentation (Cal. Bus. & Prof. Code section 10176(a)). To advertise in the MLS that a property is “Active,” when, in fact, it is not, is likely to be deemed a license violation, and grounds for disciplinary action, such as a DRE citation.
Copyright© 2018 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of July 23, 2018. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.
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