November 2nd, 2020 at 3:07 pm
Under CRMLS Rule 9.3, a listing agent is prohibited from showing a property that is in a “Coming Soon” status. Up to now, CRMLS had merely been issuing warnings to agents who violated this rule. Starting November 1, 2020, a violation of this rule is subject to a monetary fine of 1% of the list price, not to exceed $2,500.
As background, the “Coming Soon” status became popular after the implementation of the NAR-mandated Clear Cooperation Policy (CCP) on or before May 1, 2020. Under the CCP, a listing must generally be submitted into the MLS as “Active” or “Active Under Contract” within one business day after marketing the property to the public. Public marketing includes yard signs, brokerage websites, social media, eblasts, and flyers. Excluded, however, are the promotion of a listing within our own brokerage and one-to-one promotion with a client. Under CRMLS Rule 7.9, someone is a client for one-to-one promotion purposes if the listing broker is identified on an Agency Disclosure Statement that is signed by that client within the last year.
Because of the CCP, CRMLS allows listing agents to use a “Coming Soon” status while a property is being rehabbed, staged, or otherwise prepped for showings. One advantage of the “Coming Soon” status is the listing agent can advertise the property as “Coming Soon” to members of the general public without violating the CCP. Furthermore, the “Coming Soon” listing will not be disseminated to third-party portals, such as Zillow or Realtor.com, and the Days on Market (DOM) will not begin to accrue.
One big disadvantage of the “Coming Soon” status is that in-person, on-site showings are prohibited. Additionally, the maximum timeframe allowed for a “Coming Soon” status is 21 days only, and the listing agent cannot use the “Coming Soon” status more than once for any listing.
More information about CRMLS’s Rules is available from its website which includes CRMLS’s Coming Soon FAQs, its Coming Soon Form, and its Citation Policy.
-Thank you to Jim Vermilya (Laguna Beach Manager) for suggesting this week’s legal tip.
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