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Commercial Investment Division
Shreveport-Bossier Board of REALTORS®, Inc.
_____
Commercial Listing System
September1999
Revised August 2002
PREAMBLE
The Commercial Investment Division (CID) is a wholly-owned
subsidiary of the Shreveport-Bossier Board of REALTORS®, Inc. (SBBR),
and will operate the Commercial Listing System(CLS) for the
SBBR.
PURPOSES OF THE CLS
A Commercial Listing System (CLS) is a means by which
information is accumulated and disseminated to enable authorized
participants (acting
either as agents, buyer agents, or in any other agency or
non-agency capacities authorized by law) to have access to commercial
property
information for use in providing marketing services. It is
a facility for the orderly
correlation and dissemination of information among the participants
so that they may better serve their clients/customers and
the public, and
is a means to enable participants to prepare appraisals and
other valuations of real property and by which participants
engaging in real estate appraisal
contribute to common databases. The CLS is not a Multiple
Listing Service, but offers of cooperation or compensation may be extended
by
CLS participants.
The CLS has contracted with an Internet site provider to allow
participants to place property listings and other property
and statistical information
on a private intranet site for the CLS either directly by
the participant or at the option of the CLS through the CLS to be accessible
only to
participants and to allow CLS participants the option to also
place property listings on the site provider’s public Internet
site (“Public
Site”).
MEMBERSHIP
- Participants
Any REALTOR® in whose name a real estate license
or licenses are held (Principal), whether a member of
SBBR or any other National Association
of REALTORS?-affiliated Board or association located
within this or any immediately adjoining state, is eligible
to participate in
the CLS upon
agreeing in writing to conform to these Rules and
Regulations (“Rules”)
and to pay the Service fees and charges as specified
in Section 5 of these Rules. However, no individual or firm,
regardless of Board membership
status, is eligible for participation unless they
hold a
current, valid real estate broker’s license and are capable
of accepting and offering compensation to and from other
participants or to those individuals
who are licensed or certified by a state regulatory
agency
to engage in the
appraisal of real property. Brokers and agents other
than principals are not participants of the CLS but have
access to and use of
the CLS through the participant with whom they are
affiliated.
None of the foregoing
is intended to preclude the CLS from providing, as
a matter of local determination, access to information
from CLS compilations to affiliate
members of Boards or to others engaged in recognized
fields
of real estate practice or in related fields.
A nonmember applicant for CLS participation who is a principal,
partner, corporate officer, or branch office manager acting on
behalf of a principal,
shall supply evidence satisfactory to the Membership Committee
that he has no record of recent or pending bankruptcy; has no record
of official
sanctions involving unprofessional conduct; agrees to complete
a course of instruction (if any) covering the Rules and computer
training related
to CLS information entry and retrieval, and shall pass such
reasonable and non-discriminatory written examination thereon as
may be required
by the CLS; and shall agree that if elected as a participant,
he/she will abide by such Rules and pay the Service fees and charges,
including
the nonmember fees (if any), as from time to time established.
Use of information developed by or published by CLS is strictly
limited to the
activities authorized under a participant’s licensure(s) or certification
and unauthorized uses are prohibited. Further, none of the foregoing
is intended to confer participation rights or any right of access
to information developed by or published by the CLS where access
to such information is prohibited by law.
Commercial Property is defined
as all non-residential property and any
multi-family residential property having five (5) or more units
and such categories of vacant land as CID shall designate.
- Application
for Participation
Application for participation shall be made in such manner
and form as may be prescribed by the Board of Directors of
the CID. The
application form shall contain a signed statement by which
the participant agrees to abide by the Rules and Regulations
of the CLS as from time
to time adopted or amended.
- Payment of Service Fees and Charges
Required
Payment of Service Fees and charges is required of all real
estate brokers, agents, and licensed or certified real estate
appraisers affiliated with or employed by a CLS participant. No exception
from
the payment of Service Fees and charges shall be granted
to a Principal.
- Exemptions
- Employee Exemption
A licensed employee of a participating member who receives
no compensation directly from a commission, and who
does not attempt to sell, list, exchange, or appraise real
estate.
- Specialty Exemption
A licensee who is exclusively engaged in property management,
residential sales or leasing, or real estate
counseling activities, as certified by REALTOR? and
licensee, and who has no access to
the CLS.
- Extreme Hardship Exemption
A licensee who because of illness or hardship is not
active and does not list or sell property, or attempt
to list or sell
property, and has absolutely no access to
the CLS.
- Discontinuance of Service
Participants of the CLS may discontinue participation by giving
the CLS ten (10) days written notice and may reapply to the CLS for
participation (a) after three (3) months by making formal application
in the manner prescribed for new applicants and upon payment of the
application fee and any previously unpaid dues and fees, or (b) if
sooner than three (3) months, Pay all fees that would have been applicable
from the discontinuation date to the date of re-instatement.
The charges made for participation in the Service shall be as
determined and as amended from time to time by the Board of Directors
of the CID, and specified in these Rules.
SECTION 1
SUBMITTAL PROCEDURES
Section 1.1 - Submittal Procedures: It is essential that a participant
have a written exclusive-right-to-sell or lease or an exclusive agency
agreement with the property owner. Where the participant is acting on
behalf of a buyer, the participant may submit information describing
the type of property sought to the CLS even though the Participant may
not be the buyer’s exclusive agent. The participant must have written
authorization from the seller or lessor in the participant’s file
prior to the participant submitting information to the CLS on properties
for sale, lease, or exchange (“Submittal”).
The CLS will not accept multiple submittals for a single location, plans
for buildings without a designated lot or site, nor submittals of builder
models unless each model listed is to be erected on a designated lot
or parcel; provided, however, multiple submittals for lease space in
the same building are permitted provided that the submittals are for
different lease spaces.
Section 1.2 - Publication of Information on the Public Site: The CLS will
not publish information on properties taken on a “net listing basis,” which
is defined as property for which the sale price or lease rental
established based upon the seller
or lessor’s requirement that it receive a fixed sum of money.
Graphics may be contained in any submittal, but a charge may be made
at the discretion of the CID Board of Directors for graphics.
The inclusion of property information on the Public Site by participants
shall be at the participant’s option.
Section 1.3 - Submittals Subject to Rules and Regulations of
the CLS:
Any submittal to be filed is subject to the Rules.
Section 1.4 - Detail on Submittals filed with the CLS: A Submittal must
be made directly by a participant by inputting information into
the CLS database. Non-licensed office staff may be
authorized in writing by the participant to directly submit
information about a property and use the participant's or sub-participant's
log-in
name and/or password.
Section 1.5 - Submission Timeframe: All listings must be submitted into
the CLS no later than forty-five (45) days from the effective
date of the listing.
Section 1.6 - Change of Status of Submittal: Any change in listed price,
terms, status, or other material change in the original Submittal
shall be made only when authorized
by the seller or lessor, and the corresponding change shall
be made within five (5) business days after the authorized material
change is received by the submitting participant or sub-participant.
Section 1.7 - Submittal Price Specified: The sales or leasing price at
which the property is being marketed, if specified in the listing,
shall be stated as part of the Submittal
and shall be published in any CLS Compilation of current submittals.
Section 1.8 - Submitting Multiple Unit Properties: All
properties which may be sold, leased, or exchanged separately
must be indicated as part of the Submittal. When part of a submitted
property has been sold, leased, or exchanged, the CLS submittal
shall be changed within five (5) days.
Section 1.9 - No Control of Commission Rates or Fees Charged
by Participants and Subscribers: The CLS shall not fix, control, recommend,
suggest, or maintain commission rates or fees for services to be rendered
by participants
who are licensed real estate brokers or appraisers. Further,
the CLS
shall not fix, control, recommend, suggest, or maintain the
division of commissions or fees between cooperating participants
or between participants
and non-participants.
Section 1.10 - Updating Submittals: Each submittal filed
with the CLS shall be kept current by updating the information
in such submittal.
Section 1.11 - CLS Market Area: The primary CLS Market
Area is Louisiana, but submittals for properties located outside
Louisiana may be accepted by the CLS.
Section 1.12 - Submittals of Suspended, Expelled or Resigned
Participants:
When a participant is suspended, expelled, or voluntarily resigns
from the
CLS, all Submittals submitted by the participant may be retained
in the information database for the private Member Site, but
shall be removed from the compilation of current information
contained on
the Public Site by the CLS.
SECTION 2
SELLING PROCEDURES
Section 2.1 - Showings and Negotiations: Access to the property, appointments
for showings and negotiations with the seller or lessor for
the purchase, lease, or exchange of submitted
properties filed with the CLS shall be conducted through the
submitting broker except when the submitting broker gives the
broker specific
authority to show and/or negotiate directly with the seller.
A participant may not file a Submittal solely for the purpose
of allowing property
owners to advertise properties on the CLS or over the Internet,
with no further involvement or service by said broker with or
to any such
property owner.
Section 2.2 - Presentation and Submission of Offers and Counter
Offers:
A filing participant acting as the agent of a seller or lessor
shall present all offers to the seller or lessor until closing
unless precluded by law, government rule, regulation, or unless
otherwise agreed in writing between the seller(s) or lessor(s)
and filing
participant. Unless a subsequent offer is contingent upon termination
of an existing
contract, the filing participant shall recommend that the
seller(s) or lessor(s) obtain the advice of legal counsel prior
to accepting
a subsequent offer.
The submitting broker and any cooperating broker or their representative
shall comply with applicable statutes, Louisiana Real Estate Commission
rules and regulations in presentation of offers and counteroffers and
submission of written offers and counteroffers.
Section 2.3 - Right of Participant Producing Offer in Presentation
of Offer: The participant producing the offer or his/her representative
has the right to participate in the presentation to the seller
or lessor of any offer he/she secures to purchase, lease, or exchange.
He does
not have the right to be present at any discussion or evaluation
of that offer by the seller or lessor and the filing participant. However,
if
the seller or lessor gives written instructions to the filing
participant that the participant producing the offer not be present when
an offer
the broker secured is presented, the participant producing the
offer has the right to a copy of the seller’s or lessor’s
written instructions. None of the foregoing diminishes the filing participant’s
right to control the establishment of appointments for such
presentations.
Section 2.4 - Right of Seller/Lessor Representative in Presentation
of Counter-Offer: The participant representing the seller or
lessor, or his representative, has the right to participate in the presentation
of any counter-offer
made by the seller or lessor. He/she does not have the right
to be present at any discussion or evaluation of a counter-offer by the
purchaser or
lessee (except where the cooperating broker is a subagent).
However, if the purchaser or lessee gives written instructions to the
cooperating
broker that the participant representing the seller or lessor
not be present when a counter-offer is presented, that broker has the
right
to a copy of the purchaser’s or lessee’s written instructions.
Section 2.5 - Reporting Sales: Sales, leases, or exchanges
shall be reported to the CLS by the participant who made the
Submittal within seventy-two
(72) hours (excluding weekends and holidays).
SECTION 3
PROHIBITIONS
Section 3.1 Information for Participants Only: Any
Submittal filed with the CLS shall not be made available to any broker
or firm which is not a participant of the CLS without
the prior consent of the submitting participant except to
the extent included in any compilation of the CLS database which is made
available
to Louisiana real estate licensees or others under these Rules.
Anyone allowing an unauthorized person to use his/her access code for
purposes
of obtaining unauthorized access to CLS will be subject to
a fine of up to $1,000 and possible suspension or revocation of their
service.
Section 3.2 - Solicitation of Submittals Filed with CLS:
Participants shall not solicit the owner of a Submittal currently filed
with the CLS unless such solicitation is consistent with Article
16 of the REALTORS?’ Code of Ethics of the NATIONAL ASSOCIATION
OF REALTORS? its Standards of Practice and its Case Interpretations.
Section 3.3 - “For Sale” Signs: Only the “For
Sale” signs of the filing participant may be
placed on the property.
Section 3.4 - “Sold” Signs: Prior to closing,
only the “Sold” sign of the filing participant
may be placed on the property, unless the listing broker authorizes
the cooperating (selling) broker to post such a sign.
SECTION 4
DISCLOSURES
Section 4.1 - Participant as Owner: If a participant
or sub-participant has any ownership interest in property, the Submittal
of which is to be disseminated through the
CLS, that person shall disclose that interest when the Submittal
is filed with the CLS and such information shall be disseminated to all
CLS participants by either inputting “Owner-Agent” or “OA” in
the Remarks Section.
Section 4.2 - Participant as Purchaser: If a participant
or sub-participant wishes to acquire an interest in property listed with
another participant, such contemplated interest
shall be disclosed to the submitting broker prior to the time
an offer to purchase is submitted to the submitting broker, and clearly
stated
that the purchaser is a licensee.
SECTION 5
SERVICE CHARGES
Section 5.1 - Service Fees and Charges: Service fees (“Service fees”)
and charges will be determined from time to time for operation of the
CLS by the CID Board of Directors.
- Service Fees for the use of the CLS will be pre-billed on a semi-annual
basis. Other charges which may be accrued to each CLS participant
during a current month may be billed to that CLS participant
at the close of
each said month. All charges for the CLS are due upon receipt.
- Failure
to pay any service fees and/or charges within thirty (30)
days of the date due, and provided that at least ten (10)
days notice has been given the CLS participant or agent shall cause
suspension from
CLS access until Service Fees and/or other charges are paid
in full.
SECTION 6 COMPLIANCE WITH RULES
Section 6.1 - Compliance with Rules: Non-principal brokers, sales licensees,
appraisers, and others authorized to have access to information published
by the
CLS are subject to these Rules and may be disciplined for
violations thereof provided
that the participant has signed an agreement acknowledging
that access to and use of CLS information is contingent
on compliance with the Rules.
Further, failure to abide by these Rules and/or any sanction
imposed for violations thereof can subject the participant
to the same or other
discipline. This provision does not eliminate the participant’s
ultimate responsibility and accountability for all users and
subscribers affiliated with the participant.
Section 6.2 - Sanctions: The CLS Committee may impose
any of the following sanctions for noncompliance with these rules:
- Warning
- Censure
- Imposition of a fine up to $1,000 per violation
- Revocation or suspension
of service.
Section 6.3 - Re-application: A suspended participant may not re-apply
for CLS service for 180 days from date of suspension.
SECTION 7
MEETINGS
Section 7.1 - Meetings of the CID Board of Directors: The CID Board of
Directors shall meet for the transaction of its business at a time and
place to be determined by the Board of Directors
or at the call of the President.
Section 7.2 - Meetings of the CLS Participants: The
CID Board of Directors may call meetings of the participants in the CLS.
Section 7.3 - Conduct of the Meetings: The Chairman,
or Vice Chairman, shall preside at all meetings or, in their absence,
a temporary Chairman from the Board of Directors
shall be named by the Chairman or, upon failure to do so,
by the Committee.
SECTION 8
ENFORCEMENT OF RULES OR DISPUTES
Section 8.1 - Consideration of Alleged Violations:
The CID Board of Directors shall give consideration to all written complaints
from participants relating to violations of these Rules.
Complaints for violations of these Rules shall be submitted
in writing to the CID Board of Directors.
Section 8.2 - Violations of the Rules and Regulations:
If the alleged offense is a violation of these Rules and does not involve
a complaint of alleged unethical conduct or request for
arbitration, it may be administratively considered and determined
by the CID Board of Directors. If the CID Board of Directors determines
a violation has occurred, the CID Board of Directors may direct
the
imposition of sanctions as provided in paragraph 6, including
but not limited to, suspension of access to the Member Site. The recipient
of such sanction may request a hearing before the Professional
Standards
Division Shreveport Bossier Board of REALTORS® in accordance with
the Bylaws and the Rules and Regulations of that Association
within twenty (20) days following receipt of the Committee’s
decision.
Section 8.3 - Complaints of Unethical Conduct: All
complaints of unethical conduct shall be referred by the CID Board of
Directors to the Professional Standards Division of Shreveport
Bossier Board of REALTORS® for appropriate action in accordance
with the professional standards procedures established in
the Bylaws of the Shreveport Bossier Board of REALTORS®. Complaints
for unethical conduct shall be made on the forms prescribed in the
Code of Ethics
and Arbitration Manual of the Shreveport Bossier Board of
REALTORS®.
SECTION 9
CONFIDENTIALITY OF CLS INFORMATION
Section 9.1 - Confidentiality: All information provided by the CLS to
participants shall be considered confidential and is provided exclusively
for the use of
participants authorized and qualified to act as agents in
the sale, lease, exchange, appraisal, or purchase of property filed with
the
CLS and for the use of real estate licensees affiliated with
such participants and those participants who are licensed or certified
by an appropriate
state regulatory agency to engage in the appraisal of real
property and licensed or certified appraisers affiliated with such Participants.
Section 9.2 - CLS Not Responsible for Accuracy of Information: The information
published by the CLS is communicated without change as filed by the participants.
The CLS does not verify the information
provided and disclaims any liability or responsibility for
its accuracy. Each Participant agrees to hold harmless and defent Shreveport-Bossier
Board of REALTORS?, Inc., and its members, officers, directors,
and
employees against any liability arising from any inaccuracy
or inadequacy of the information such participant provides.
Section 9.3 - Access to CLS Member Site: SBBR members who are actively
engaged in real estate brokerage, management, mortgage financing, appraising,
land development, or building,
but who do not participate in the CLS, are nonetheless entitled
to receive, by purchase or lease, all information (other than current
market catalogs) that is generated wholly or in part by the
CLS including “comparable” information, “sold” information,
and other historical or statistical reports.
This information is provided for the exclusive use of SBBR members and
individuals affiliated with members who are also engaged in the real
estate business and may not be transmitted, retransmitted, or provided
in any manner to any unauthorized individual, office, or firm except
as otherwise provided in these Rules. Any SBBR member wishing to obtain
such information must agree to abide by these Rules regarding use of
the information and must agree to pay the costs incidental to receiving
the information.
Section 9.4 - Access by Public: Non-participants in the CLS, including
the general public, are entitled to receive information which
is submitted to the Internet
Public Site under the terms and conditions applicable to such
site, but are not entitled to access or receive any additional
information contained in the private intranet Member Site.
SECTION 10
OWNERSHIP OF CLS COMPILATIONS AND COPYRIGHTS
Section 10.1: By submitting property information to
the CLS, the participant represents that he/she has been authorized
to grant and also
thereby does grant authority for the SBBR to include the property
information in its copyrighted CLS compilation and also in any “comparable” report, “sold” report,
or other historical or statistical report unless expressly
indicated otherwise in writing at the time the information
is filed with the
CLS.
Participant shall have received the seller’s permission to submit
the property to the CLS and to advertise the property in any electronic
advertising medium offered by or in conjunction with the CLS which thc
participant elects to use.
Section 10.2: All right, title, and interest in each
copy of every CLS compilation or database or computer “screen” or “ image” or “layout” created
and copyrighted by the CID, and in the copyrights therein,
shall at all times remain vested in the CID, the holder of the
copyright. CLS
may, at its option, identify CLS Images with a CID approved
stamp, logo, watermark, or other type of identifying mark.
Section 10.3: The CLS compilation is considered leased
and remains the property of the CLS. If offered, each participant
shall be entitled
to lease
from the CLS a number of copies of each CLS compilation sufficient
to provide the participant with one copy of such compilation,
and such additional copies as such participant may desire for
the use of the
participant and the participant’s staff and affiliates and clients/customers.
The participant shall pay for each such copy the rental fee
set by the CLS. Participants shall acquire by such lease only
the right to
use the CLS compilations in accordance with these rules.
Section 10.4: CLS is authorized to lease CLS compilations
to individuals who are not participants with a restriction limiting
the use
of such CLS
compilation to the individual to whom it is leased, and prohibiting
such individual from further disclosing CLS compilation to
any person not authorized by CLS to receive such information.
SECTION 11
USE OF COPYRIGHTED CLS COMPILATIONS
Section 11.1 - Distribution: Participants shall at
all times maintain control over and responsibility for each copy of any
CLS compilation leased to them by the CLS, and
shall not distribute any such copies. Use of information developed
by or published by the CLS is strictly limited to the activities
authorized under a participant’s licensure(s) or certification
and unauthorized uses are prohibited. Further, none of the foregoing
is intended to
convey “Participation”, or “Membership” or
any right of access to information developed by or published
by the CLS where access to such information is prohibited by law.
Section 11.2 - Reproduction: Participants shall not
reproduce any CLS compilation or any portion thereof except in the following
limited circumstances:
Participants and their affiliated licensees may reproduce from the CLS
compilation, and distribute to prospective sellers, lessors, and purchasers,
a reasonable number of single copies of property information contained
in the CLS compilation.
Nothing contained herein shall be construed to limit any participant
or agemt from utilizing, displaying distributing, or reproducing property
submittal sheets or other compilations of data pertaining exclusively
to properties currently listed for sale with the participant.
Except as expressly provided in these Rules, any CLS information or
service, whether provided in written or printed form, provided electronically,
or provided in any other form or format, is provided for the exclusive
use of the participant who is authorized to have access to such information.
Such information may not be transmitted, retransmitted or provided in
any manner to any unauthorized individual, office or firm.
None of the foregoing shall be construed to prevent any individual legitimately
in possession of current submittal information, “sold” information, "comparables" or
statistical information from utilizing such information to support an
estimate of value on a particular property for a particular client. However,
only such information that the CLS has deemed to be non-confidential
and necessary to support the estimate of value may be reproduced and
attached to the report as supporting documentation. Any other use of
such information is unauthorized and prohibited by these Rules.
SECTION 12
USE OF CLS INFORMATION
Section 12.1 - Limitations on Use of CLS Information:
Use of current submittal information, from the CLS's “Statistical
Report”, or from, any “sold” or “comparable” report
of the CLS for public mass-media advertising by a CLS participant
or in other public representations may not be prohibited.
However, any print or non-print forms of advertising or other forms
of public representations based in whole or in part on information supplied
by the CLS must clearly demonstrate the period of time over which such
claims are based and must include the following or substantially similar,
notice:
‘This representation is based in whole or in part on information
from the Shreveport Bossier Board of REALTORS® (“SBBR”),
the Commercial Investment Division (“CID”), or its CLS, for
the period ____________through____________ Neither the CLS nor the CID
nor the SBBR guarantees or is in any way responsible for its accuracy.
Data maintained by the CLS may not reflect all real estate activity in
the market.”
SECTION 13
CHANGE IN RULES AND REGULATIONS
Section 13.1 - Changes in Rules and Regulations: Amendments
to these Rules shall be by a majority vote of the Board of Directors
of CID. Notice of any amendment shall be provided
to participants.
SECTION 14
APPENDICES AND EXHIBITS
Section 14.1 - Appendices and Exhibits: The appendices
and exhibits attached to these Rules are incorporated herein and made
a part hereof as additional operating procedures, fee
schedules and forms. These appendices and exhibits are subject
to change by the same procedure set forth in Section 13 above for changes
to
these Rules.
SECTION 15
STANDARDS OF CONDUCT FOR CLS PARTICIPANTS
Section 15.1: Participants shall not engage in any practice or take
any action inconsistent with the agency or other exclusive relationship
recognized
by law that other participants have with clients.
Section 15.2: Signs giving notice of property for sale, rent, lease,
or exchange shall not be placed on property without the consent
of the seller/landlord.
Section 15.3: Participants acting as subagents or as buyer/tenant agents
or brokers, shall not attempt to extend a listing broker’s offer
of cooperation and/or compensation to other brokers without
the consent of the listing broker.
Section 15.4: Participants shall not solicit a listing which is currently
listed exclusively with another broker. However, if the listing
broker, when asked by the CLS participant, refuses to disclose the expiration
date and nature of such listing; i.e., an exclusive right
to sell,
an exclusive agency, open listing, or other form of contractual
agreement between the listing broker and the client, the CLS participant
may
contact the owner to secure such information and may discuss
the terms upon which the CLS participant might enter into a future listing
or,
alternatively, may take a listing to become effective upon
expiration of any existing exclusive listing.
Section 15.5: Participants shall not solicit buyer/tenant agreements
from buyers/tenants who are subject to exclusive buyer/tenant agreements.
However, if asked by a CLS participant, the broker refuses
to disclose
the expiration date of the exclusive buyer/tenant agreement,
the CLS participant may contact the buyer/tenant to secure such information
and may discuss the terms upon which the CLS participant might
enter
into a future buyer/tenant agreement or, alternatively, may
enter into a buyer/tenant agreement to become effective upon the expiration
of
any existing exclusive buyer/tenant agreement.
Section 15.6: Participants shall not use information obtained from listing
brokers through offers to cooperate made through the CLS or
through other offers of cooperation to refer listing brokers’ clients
to other brokers or to create buyer/tenant relationships with
listing brokers’clients, unless such use is authorized by listing
brokers.
Section 15.7: The fact that an agreement has been entered into with
a CLS participant shall not preclude or inhibit any other CLS participant
from entering into a similar agreement after the expiration
of the
prior agreement.
Section 15.8: The fact that a client has retained a CLS participant
as an agent or in another exclusive relationship in one or more past
transactions
does not preclude other CLS participants from seeking such
former client’s
future business.
Section 15.9: Participants are free to enter into contractual relationships
or to negotiate with sellers/ landlords, buyers/tenants or
others who are not subject to an exclusive agreement but shall not knowingly
obligate
them to pay more than one commission except with their informed
consent.
Section 15.10: When CLS participants are contacted by the client of
another CLS participant regarding the creation of an exclusive relationship
to provide the same type of service, and CLS participants
have not
directly or indirectly initiated such discussions, they may
discuss the terms upon which they might enter into a future agreement
or, alternatively,
may enter into an agreement which becomes effective upon expiration
of any existing exclusive agreement.
Section 15.11: In cooperative transactions, CLS participants shall compensate
cooperating CLS participants (principal brokers) and shall
not compensate nor offer to compensate, directly or indirectly, any of
the sales licensees
employed by or affiliated with other CLS participants without
the prior express knowledge and consent of the cooperating broker.
Section 15.12: Participants are not precluded from making general announcements
to prospective clients describing their services and the terms
of their availability even though some recipients may have entered
into agency
agreements or other exclusive relationships with another CLS
participant. A general telephone canvass, general mailing or
distribution addressed
to all prospective clients in a given profession, business,
club, or organization, or other classification or group is deemed “general” for
purposes of this rule.
The following types of solicitations are prohibited:
- Telephone or personal solicitations of property owners who have been
identified by a real estate sign, multiple listing compilation,
or other information service as having exclusively listed
their property with
another CLS participant; and
- Mail or other forms of written
solicitations of prospective clients whose properties are
exclusively listed with another CLS participant
when such solicitations are not part of a general mailing
but are directed specifically to property owners identified through
compilations
of current
listings, “for sale” or “for rent” signs, or
other sources of information intended to foster cooperation
with CLS participants.
Section 15.13: Participants, prior to entering into an agency agreement
or other exclusive relationship, have an affirmative obligation
to make reasonable efforts to determine whether the client is subject
to a
current, valid exclusive agreement to provide the same type
of real estate service.
Section 15.14: Participants, acting as agents of, or in another relationship
with, buyers or tenants, shall disclose that relationship
to the seller/landlord’s
agent or broker at first contact and shall provide written
confirmation of that disclosure to the seller/landlord’s agent
or broker not later than execution of a purchase agreement or lease.
Section 15.15: On unlisted property, participants acting as buyer/tenant
agents or brokers shall disclose that relationship to the seller/landlord
at first contact for that client and shall provide written
confirmation
of such disclosure to the seller/landlord not later than execution
of any purchase or lease agreement.
Participants shall make any request for anticipated compensation from
the seller/landlord at first contact.
Section 15.16: Participants, acting as agents or brokers of sellers/landlords
or as subagents of listing brokers, shall disclose that relationship
to buyers/tenants as soon as practicable and shall provide
written confirmation of such disclosure to buyers/tenants not
later than execution
of any purchase or lease agreement.
Section 15.17: Participants are not precluded from contacting the client
of another broker for the purpose of offering to provide, or entering
into a contract to provide, a different type of real estate
service
unrelated to the type of service currently being provided,
such as property management as opposed to brokerage. However, information
received
through CLS may not be used to target clients of other CLS
participants to whom such offers to provide services may be made.
Section 15.18: Participants, acting as subagents or buyer/tenant agents
or brokers, shall not use the terms of an offer to purchase/lease
to attempt
to modify the listing broker’s offer of compensation to subagents
or buyer’s agents or brokers, nor make the submission of an executed
offer to purchase/lease contingent on the listing broker’s agreement
to modify the offer of compensation.
Section 15.19: All dealings concerning property exclusively listed,
or with buyer/tenants who are subject to an exclusive agreement shall
be
carried
on with the client’s agent or broker, and not with the client,
except with the consent of the client’s agent or broker or except
where such dealings are initiated by the client.
Section 15.20: Participants, users, and subscribers, prior to or after
terminating their relationship with their current firm, shall not induce
clients
of their current firm to cancel exclusive contractual agreements
between the client and that firm. This does not preclude participants
from
establishing agreements with their associated licensees governing
assignability of exclusive agreements.
Section 15.21: These rules are not intended to prohibit ethical albeit
aggressive or innovative business practices, and do not prohibit
disagreements with other CLS participants involving commission, fees,
compensation
or other forms of payment or expenses.
Section 15.22: Participants shall not knowingly or recklessly make false
or misleading statements about competitors, their businesses,
or their business practices.
SECTION 16
AMENDMENT
Section 16.1 - Amendment: These Rules and Regulations may be amended
by the Board of Directors of the Commercial Investment Division.
Notice of any amendment shall be provided to Participants.
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