MLS fines for flat fee MLS listing sellers

[samantha]

Hey guys, how seriously should a flat fee MLS listing seller take the threat of potential MLS fines? I realize that most flat fee MLS listing agreements have language that protect the listing broker from MLS fines due to the owner not providing listing status updates.

If I am late on providing a status update, will I really get fined? Just want to see how seriously the MLS pursues fines for minor infractions like being late with a listing update. Thank you.

[HauseitAdmin]

Hi Samantha, the answer depends dramatically on which MLS you are talking about. At the moment, REBNY (operator of the RLS broker database in NYC) is relatively relaxed about fines and we have yet to hear of a member broker actually being fined for anything. However, the threat of fines by REBNY is real per their Universal Co-Brokerage Agreement which all member firms are required to sign before participating in the RLS. Therefore, you should always promptly let our partner brokers know once you have a fully executed contract and once your property is sold.

The story is completely different in the suburbs, in places like Westchester County NY and the Greater Hudson Valley. Here, the dominant MLS system is the HGMLS (Hudson Gateway MLS) and they are EXTREMELY STRICT when it comes to listing updates and maintaining accurate data. They are so strict in fact that the listing broker will automatically be fined for not updating a listing status within 24 hours. The fine for a late listing status update typically starts at $50 for the first infraction, and can rise to $500 for more infractions.

Therefore, it is extremely important that you promptly update our partner brokers when your listing has a fully executed contract (need buyer's broker's name if applicable), and once the listing is sold (need price sold for and date sold).

Any fines due to you not relaying these critical status updates will be relayed onto you per the flat fee listing agreement. Please take this seriously!

[aslan]

It's important to realize that with some MLS systems like the HGMLS, being late on a listing update is not a minor offense.

See for yourself. This is part of a fine notice from the HGMLS that my buddy received a while ago. I almost fell over when he forwarded this to me.

**Data Checker Notice: Immediate Fine Notice**
Your MLS listing is not in compliance with the HGMLS Rules and Regulations and this violation carries an immediate fine. This fine will appear on your next HGMLS Monthly Office invoice and is due and payable upon receipt. In our continued efforts to provide the highest level of service to our subscribers and to ensure that the Listing information put forth to fellow subscribers and the public is as accurate and complete as possible, HGMLS has instituted a Listing Data Checker program that assist us in finding and correcting possible missing or inaccurate information. We appreciate your cooperation and immediate attention to this matter.

Notification Details
Citation Number: Failure to Update Status Timely - In Contract
Violation Name: Update - In Contract
Description: The current status for this listing in the MLS system does not match actual Status/availability OR a late status reporting has been recorded.
Instructions: Failure to update a listing status within 24 hours is a HGMLS violation subject to $500 fine. HGMLS requires listing status to be updated within 24 hours.
Fine Amount: $50

We appreciate your help in ensuring that our MLS System is a reliable data resource that contains accurate and useful information for the benefit of all members. If you believe our automated data compliancy system has made an error, simply REPLY to this email and the HGMLS staff will review the information.