30 Day Notice: Revised Fine Schedule for 5.0 Violations
This communication will serve as official notice to comply with the 30-day notification requirement to Participants of the Southwest Multiple Listing Service regarding changes to the SWMLS Rules & Regulations.
On August 1st, 2024 several key rule changes went into effect:
  • Section 5.0  No Compensation Specified on MLS Listings
  • Section 5.0.1  Required Consumer Disclosure
  • Section 5.0.2  Written Buyer Agreement

View the current version of the SWMLS Rules & Regulations

Summary of New Changes Effective September 28th:

Violation of Section 5.0 No Compensation Specified on MLS Listings:

  • Immediate Fine Imposed
  • Staff will immediately remove prohibited content

Violation of Section 5.0.1 Required Consumer Disclosure and Section 5.0.2 Written Buyer Agreement: 

  • Fine Schedule has been revised
  • Timeline to comply has been revised
Justification

The SWMLS Board of Directors unanimously approved these changes to protect GAAR, SWMLS, and its Members from liability. These measures are necessary in light of potential legal risks stemming from the recent NAR Settlement, which could expose our organization and members to increased vulnerability in future lawsuits.

SWMLS Rules & Regulations Redline Changes
Section 9.1.1 MLS Procedure to Impose Sanctions
Upon receipt in any form of a possible violation of The Service Rules and Regulations or when violations are discovered through monitoring, Service staff may request that a Participant or Subscriber comply with Rules within forty-eight (48) hours. If a Participant or Subscriber does not comply with the Rules and Regulations, within forty-eight (48) hours after a notice of violation or for violations that are not capable of being cured, the Participant/Subscriber will be subject to the appropriate fine. Service Staff shall not have the authority to waive or modify fines, but Staff shall have the authority to grant reasonable extensions of time in which to comply so long as the Participant/Subscriber requests such extension within the forty-eight (48) hour period after a notice of violation.
 
If staff becomes aware of contact information in Public Remarks in violation of Section 1.17, they are authorized to remove the prohibited information from the listing immediately with notice to the Listing Broker and/or Qualifying Broker.

Violations of Section 1.01 (Clear Cooperation) must be resolved with (1) business day upon receiving a violation notice from The Service.

For violations of Sections 1 (except 1.01), 2, 3, or 8 of these Rules and Regulations (Minor Violations) the Compliance Committee, Board of Directors of The Service, or Service Staff may levy a fine against the Participant or Subscriber as outlined below:
  • First fine within a 12-month period will be assessed at $50 (fine can be replaced with attendance at an MLS Rules Refresher Class at the option of the Participant of Subscriber)
  • Second fine for the same violation on the same listing will be assessed at $100
  • Third fine for the same violation on the same listing will be assessed at $200
  • If the agent received a fine within a 12-month period of the first fine for the same violation on a different listing, the fine structure will be $100/$200/$400
  • When a Participant or Subscriber incurs a 4th and subsequent fines in a calendar year under these Sections, a tribunal of at least three or five members of the Compliance Committee of The Service will hold a hearing in which the Subscriber and Participant must attend, and may either (i) provide a warning to the Participant or Subscriber or (ii) levy a fine against the Participant or Subscriber as outlined in Section 7.
For violations of Sections 1.01 of these Rules and Regulations the Compliance Committee, Board of Directors of The Service, or Service Staff may levy a fine against the Participant or Subscriber as outlined below:
  • First offense $500; second offense $1000; third offense $5000 and loss of MLS privileges for 30 days.
  • Note: This is an overall total beginning from September 1st, 2021 and does not reset.
When a fine has been issued for a Minor Violation and Participant or Subscriber does not correct the violation in the time provided in the fine notice, The Service may double the fine. If there is no response within the time provided in the double fine notice, The Service may quadruple the fine. If a violation remains uncorrected after a notice of quadruple fine, the Compliance Committee may require the Participant and Subscriber attend an MLS Rules Refresher Class within 60 days. If a violation remains uncorrected after a notice of quadruple fines, the Compliance Committee may authorize that the Participant or Subscriber have their MLS account disabled until the violation is corrected. The Participant or Subscriber account would only be disabled if there is still a valid Participant at the office who could continue to operate the office and maintain office listings. If the issue remains unsolved, the Compliance Committee shall refer the matter to the Board of Directors, and a tribunal of at least 3 or 5 members of the Board of Directors of The Service may levy additional punishment against the Participant or Subscriber, including, but not limited to suspending all services of the Participant and/or Subscriber for a specified period of time. Fines remaining unpaid after the appropriate notice shall be subject to the Collections Policy of The Service.
 
For violations of Sections 4 (excluding Section 4.4), 5, 5.1, 5.2, 13, 18, or 19 of these Rules and Regulations (Major Violations), or if the Participant or Subscriber has received 3 administrative sanctions, a tribunal of at least three or five members of the Compliance Committee of The Service may either (i) provide a warning to the Participant or Subscriber or (ii) levy a fine against the Participant or Subscriber as outlined below after a majority vote approving the sanction:
  • First fine within a 12-month period will be assessed at $250
  • Second fine within a 12-month period will be assessed at $500
  • Third fine and all subsequent fines within a 12-month period will be assessed at $750
  • When the Participant or Subscriber receives a 3rd or subsequent administrative sanctions, the tribunal will hold a hearing in which the Subscriber and Participant must attend and may impose discipline as provided in Section 7.
Violations of Section 5.0 will result in an immediate fine per the schedule below. SWMLS staff will remove the prohibited information immediately and notify the Listing Broker and Qualifying Broker. The Service reserves the right to review listings entered into Coming Soon or Active status over a weekend or holiday, and the Listing Member will be fined as applicable.
  • First fine will be assessed at $500
  • Second fine will be assessed at $1,000
  • Third fine and all subsequent fines will be assessed at $2,500. When the Listing Member receives a 3rd or subsequent fine, a tribunal will hold a hearing in which the Listing member and Participant must attend and may impose discipline as provided in Section 7.

Violations of Sections 5.0.1 and 5.0.2 will result in fines according to the schedule below if documentation showing compliance with the rules is not provided within one (1) business day of receiving a violation notice from The Service.

  • First fine will be assessed at $500
  • Second fine will be assessed at $1,000
  • Third fine and all subsequent fines will be assessed at $2,500. When the Listing Member receives a 3rd or subsequent fine, a tribunal will hold a hearing in which the Listing Member and Participant must attend and may impose discipline as provided in Section 7.

For violations of Sections 4.4, 10, or 12 of these Rules and Regulations (Willful Misuse Violations), or if the Participant or Subscriber has received 3 administrative sanctions, a tribunal of at least three or five members of the Compliance Committee may either (i) provide a warning to the Participant or Subscriber or (ii) levy a fine against the Participant or Subscriber as outlined below after a majority vote approving the sanction:

  • Fine of $1,000 will be assessed for violations of Section 4.4 to first-time violators of Section 4.4
  • Fine of $5,000 will be assessed for violations of Section 4.4 after the first violation.
  • Fine of $5,000 will be assessed for violations of Section 10
  • Fine of $5,000 will be assessed for violations of Section 12
  • When the Participant or Subscriber receives a 3rd or subsequent administrative sanctions, the tribunal will hold a hearing in which the Subscriber and Participant must attend and may impose discipline as provided in Section 7.

In addition to or in lieu of the fines described above the Compliance Committee upon a majority vote can send any violation to the Board of Directors of The Service with a recommendation for suspension of services to the Participant/Subscriber. A tribunal of the at least 3 or 5 members of the Board of Directors of The Service, either upon a recommendation from the Compliance Committee or on its own motion, may suspend all services of the Participant and/or the Subscriber for a specified period of time (no less than 30 days) depending upon the severity of the violation, but not to exceed one year.

There is a $250 immediate fine per listing for each offense of unauthorized copying of photos as reported by the listing broker or copyright holder.

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