I have heard about services that will provide lists of recently expired or cancelled Bright MLS listings. What do I need to know to avoid violating our legal and ethical obligations?

 

Using such lists to “cold-call” customers is becoming a common practice and a variety of companies offer such lists. However, there are legal and ethical pitfalls to navigate in order to do this correctly.

First, Realtors® should check the MLS and confirm that the listing is either in “Expired” or “Cancelled” status before contacting the seller. Calls to the Legal Hotline and from consumers have provided anecdotal evidence that some Realtors® are receiving lists from those companies that include listings in “Withdrawn” status.

Article 16 of the Code of Ethics of the National Association of Realtors® states:

“Realtors® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other Realtors® have with clients.”

Under the Bright MLS Rules & Regulations, “Expired” or “Cancelled” status means that there is no longer an active brokerage agreement/listing contract with the seller. Therefore, the seller may be contacted without a potential violation of Article 16. However, “Withdrawn” status means that “the listing has been withdrawn from the market, but a contract still exists between the Seller and the listing broker.” Therefore, it is a potential violation of Article 16 to contact a seller on a listing that is in “Withdrawn” status.

Realtors® should also check the Do Not Call Registry before contacting a seller. For more information, see the “What do I need to know about the Do-Not-Call-Registry” FAQ above.

Commercial Council