Rule Updates

Rule Updates

Posted on 04. Jan, 2021 by in News, Rules and Regulations/Policies

Keep up-to-date on the most recent rule changes.

New Policy on Violations
The National Association of Realtors (NAR) recently introduced a new policy outlining procedures which may be taken for violations of our Rules and Regulations by Participants (Designated Realtors) and Subscribers (agents), which are as follows:

Section 9.1
Violations of Rules and Regulations
In any instance where a Participant in an association multiple listing service is charged with a violation of the MLS bylaws or rules and regulations of the service, and such charge does not include alleged violations of the Code of Ethics or the Standards of Conduct for MLS Participants, or a request for arbitration, the Service may impose administrative sanctions. Recipients of more than five category 1 administrative sanctions/rule violations, more than three category 2 administrative sanctions/rule violations, or more than three category 3 administrative sanctions/rule violations will be required to attend a hearing of the Rules Committee of the MLS. The Rules Committee shall consist of at least two members of the NJMLS Board of Directors and one member of the NJMLS Technology Committee. The Service will send a copy of all administrative sanctions/violations against a Subscriber to the Subscriber’s Participant and the Participant will be required to attend the hearing of a Subscriber. Failure to attend a hearing within 30 days of receiving written notice of a required hearing may result in Participant’s and Subscriber’s suspension of membership in the Service.

  • Category 1 violation means a rule violation related to listing information provided by Participant or Subscriber.
  • Category 2 violation means a rule violation relating to IDX and VOW displays.
  • Category 3 violation means a rule violation relating to cooperation with a fellow Participant or Subscriber, and mandatory submission of listing to the service.

Hearings will be conducted by members of our Board of Directors and Technology Committee, and will be done virtually at this time. Possible outcomes include completion of appropriate training; appropriate, reasonable fines; suspension or possible termination of MLS rights, services, and privileges. Please refer to the NJMLS Rules and Regulations for complete description of possible outcomes from a hearing; they can be found in XL Paragon > Toolkit > Forms, Docs & Gen Info.

Market Share Data in Advertising
The NJMLS Board of Directors recently approved an amendment to Section 13 of the NJMLS Rules and Regulations regarding the use of Market Share Statistics in advertising. In addition to disclosing whether ranking is based on individual, team, office, or company statistics, and disclosing the criteria upon which the ranking is based, the rule has been further amended to prohibit identifying competitors by name or other identifiable characteristic; comparisons can only be made generically. This additional amendment to the rule is highlighted below:

Section 13
Limitations on Use of MLS Information

In addition, advertisements which contain Market Share Statistics must indicate whether the ranking is based on individual, team, office, or company statistics, and must include all the search criteria used to determine the published ranking. Further, when competitive statistics are used in advertising, whether agent, team, office, or company statistics, the competitor cannot be identified or inferred in the advertising, either by name or by any other identifiable characteristic such as company color scheme, logo, tag line, etc. Comparisons can only be made generically, with permitted language such as Office 1, Office 2 or Agent 1, Agent 2, etc. Failure to comply will result in a $500 dollar fine for the first offense, $1000 fine for subsequent offenses.

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