What 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 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have provided anecdotal evidence that some Realtors® are receiving lists from those companies that include listings in “Withdrawn” status.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 However, “Withdrawn” status means that “the listing has been withdrawn from the market, but a contract still exists between the Seller and the listing broker.” Therefore, agents must not contact a seller on a listing that is in “Withdrawn” status.

Realtors® should also check the Do Not Call Registry before contacting a seller. Federal law provides that real estate professionals generally cannot call a person on the Do Not Call Registry unless the Realtor® has an “existing business relationship” with the person. An “existing business relationship” is one which extends for 18 months after the end of a transaction between the Realtor® and a seller. If you do not have an existing business relationship with the seller, then you cannot call the seller if their number is registered on the Do Not Call Registry. The Registry can be searched at: telemarketing.donotcall.gov. Federal law also requires that all companies keep their own internal “do not call” list, and you must check your company’s list before contacting the seller. If the seller is on your internal list, then you cannot call them, regardless of your relationship.

The Do Not Call Registry only applies to telephone calls. The fact that a seller’s number is on the Registry does not prevent you from sending a mailing or approaching that seller in person.

Virginia law further restricts your ability to make solicitation calls to the hours of 8 a.m. to 9 p.m. (Va. Code Ann. §59.1-511).

Commercial Council