Everything has a set of rules and guidelines that set straight all their activities and ensure that they remain within the seams of the law. This is both for state laws and municipal laws. In Toronto, the legalities of MLS listings are determined by a set of laws that ensure the agreements made are legal and binding.
To start with, the first and very important piece of information that all users should know are that MLS listing is a free platform for brokers and real estate agents that cannot be claimed by any one person. It is an independent database that contains information on property listings.
All buyers and sellers must go through a real estate agent or broker to get property listings from the MLS listing Toronto or to have their properties listed. Only licensed agents and brokers can access this service as it was developed by real estate agents for real estate agents and brokers.
Some of the rules applied and must be taken into consideration concerning MLS listings are:
The status of the listing
Regular update of the status of the listing is mandatory. When an offer on the property is accepted, the broker should report this to the MLS within 24 hours. Failure to report any changes in the status of a listing attracts a penalty. When a final sale is done, this should also be reported immediately, or a fine will be applied. The report should be done a day after the close of the escrow period.
After the final sale, no information is to be removed from the MLS listing service. The service will take care of getting the property off active listings but will store information on the sale in the database. Basically, it is required that any change that occurs to the status of the listing should be immediately reported, however, slight the change may be. Failure to which attracts fines and may cause termination of a listing.
The only binding and legal documentation recognized by law are any documents that clearly states what the agreement is and is signed by the parties involved. The broker must present the seller written offers that the potential buyers have drawn up and signed. This helps prove the seriousness of the offers, protect the buyer and the seller. The written offer has detailed information on the date of the offer, the conditions of the offer and the price being offered on the property. This helps the seller be able to read through each offer before accepting one carefully.
Type of property listed
There is a specific list of properties that can be listed on the MLS listing. This must be adhered to by every broker as they should be aware of the types that can be listed. These include: residential properties, commercial properties, industrial properties, mobile home parks and hotels
The listing price of every property must be clearly stated and accompanied by supporting information on the property and photographs. This helps buyers get a sense of the reason for the pricing. If a listed property is to be auctioned off, the listing price, in this case, is not required.
Expiration of listings
When the duration of a listing expires, the service will automatically remove the listing from the display of active listings. This information the expired listing is, however, available in the MLS database. MLS offers extensions and renewals of listings, however. The seller must first approve to the relisting and then have a written notice submitted to MLS for the extension or renewal of a listing. When the notice is sent after the expiration, it is not treated as an extension since the listing was already removed. It is listed as a new property.
Withdrawal of listings before sale or expiration
This is not a prohibited exercise, many rethink their decisions and remove their properties from the market before it has been sold or before its period has expired. This is only allowed however when a written notice is sent to MLS informing the service’s governing board of the decision. The written notice must bear both the sellers and their broker’s signature to show that they both agree on this decision. If any of the parties does not give their signature, then the request is rejected. If the property is removed from current listings, its information is sent to the data archive that holds all data on any listing that has ever been listed on MLS listings.
Offers and commissions
These advocates for sellers, buyers, and real estate brokers to agree on their terms of payment before enlisting each other’s services and disagreeing on terms later on. It is important that the terms of the job are clearly stated in the agreement that each party signs and is in agreement with the conditions listed on the agreement. Now and again, land specialists and representatives are paid a level expense that is a one-time charge and ought not to request whatever other charges after that. In other cases, different payment agreements are made and should be adhered to accordingly. The MLS service does not interfere with share responsibility with any of the parties to payment conflicts.
The MLS system provides this elaborate rules and regulations that ensure everyone knows what they are getting themselves into when entering into agreements. Anything that happens outside the MLS service between real estate brokers and their clients does not in any way affect MLS and how it functions.