4. PARTICIPATION AND AUTHORIZED ACCESS

4.1 Participant

A Participant is any individual who applies and is accepted by the MLS, meets and continues to meet all of the following requirements of either a Broker Participant or an Appraiser Participant as defined below in sections 4.1.1 and 4.1.2.

4.1.1 Broker Participant

A Broker Participant is a Participant who meets all of the following requirements:

  1. The individual, or corporation for whom the individual acts as a broker/officer, holds a valid California real estate broker’s license;
  2. The individual is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal;
  3. The individual or corporation for whom the individual acts as a broker/officer offers and/or accepts compensation in the capacity of a real estate broker;
  4. The individual has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended;
  5. The individual pays all applicable fees; and
  6. The individual has completed an orientation program of no more than eight (8) classroom hours within sixty (60) days after access is provided.

Note

Mere possession of a broker’s license is not sufficient to qualify for MLS participation. Rather, the requirement that an individual or firm “offers and/or accepts compensation” means that the Participant actively endeavors during the operation of its real estate business to list real property of the type listed on the MLS and/or to accept offers of cooperation and compensation made by listing brokers or agents in the MLS. “Actively” means on a continual and on-going basis during the operation of the Participant’s real estate business. The “actively” requirement is not intended to preclude MLS participation by a Participant or potential Participant that operates a real estate business on a part time, seasonal, or similarly time-limited basis or that has its business interrupted by periods of relative inactivity occasioned by market conditions. Similarly, the requirement is not intended to deny MLS participation to a Participant or potential Participant who has not achieved a minimum number of transactions despite good faith efforts. Nor is it intended to permit an MLS to deny participation based on the level of service provided by the Participant or potential Participant as long as the level of service satisfies state law.

The key is that the Participant or potential Participant actively endeavors to make or accept offers of cooperation and compensation with respect to properties of the type that are listed on the MLS in which participation is sought. This requirement does not permit an MLS to deny participation to a Participant or potential Participant that operates a Virtual Office Website (“VOW”) [See Rule No. 12.19] (including a VOW that the Participant uses to refer customers to other Participants) if the Participant or potential Participant actively endeavors to make or accept offers of cooperation and compensation. An MLS may evaluate whether a Participant or potential Participant “actively endeavors during the operation of its real estate business” to “offer and/or accept compensation” only if the MLS has a reasonable basis to believe that the Participant or potential Participant is in fact not doing so.

The membership requirement shall be applied on a nondiscriminatory manner to all Participants and potential Participants.

For violation of this section, see Appendix A, Citable Infractions, Section 1.1 Use of MLS System by Unauthorized Party and.5.5, Non-Completion of Any Required Orientation Program within 60 Days

4.1.2 Appraiser Participant

An Appraiser Participant is a Participant who meets the following requirements:

  1. The individual holds a valid California Appraisers certification or license; and
  2. The individual is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal; and
  3. The individual has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended;
  4. The individual pays all applicable fees; and
  5. The individual has completed an orientation program of no more than eight (8) classroom hours within sixty (60) days after access is provided.

4.1.3 Redundant Participant Qualifications

Participant type (Broker or Appraiser) must be selected during application for participation. Participant with both a California Real Estate Broker’s license and a California Appraiser’s certification or license must join as a “Broker Participant” to be listing broker under Section 4.6 or a cooperating broker or selling broker under section 4.7.

For violation of this section, see Appendix A, Citable Infractions, Section 1.1 Use of MLS System by Unauthorized Party and.5.5, Non-Completion of Any Required Orientation Program within 60 Days

4.2 Subscriber

A Subscriber is an individual who applies and is accepted by the MLS, meets the requirements of either a real estate Subscriber or appraiser Subscriber as defined below in sections 4.2.1 and 4.2.2:

4.2.1 Real Estate Subscriber

A real estate Subscriber is a Subscriber who meets all of the following requirements:

  1. The individual holds a valid California real estate Salesperson’s or Broker’s license;
  2. The individual is employed by or affiliated as an independent contractor with a Broker Participant;
  3. The individual has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended;
  4. The individual pays all applicable MLS fees; and
  5. The individual has completed any required orientation program of no more than eight (8) classroom hours within sixty (60) days after access is provided.

For violation of this section, see Appendix A, Citable Infractions, Section 1.1 Use of MLS System by Unauthorized Party and 5.5, Non-Completion of Any Required Orientation Program within 60 Days

4.2.2 Appraiser Subscriber

An Appraiser Subscriber is a Subscriber who meets all of the following requirements:

  1. The individual hold a valid California real estate appraisers certification or license;
  2. The individual is employed by or affiliated as an independent contractor with an Appraiser Participant;
  3. The individual has signed a written agreement to abide by the rules and regulations of the service in force at that time and as from time to time amended;
  4. The individual pays all applicable MLS fees; and
  5. The individual has completed any required orientation program of no more than eight (8) classroom hours within sixty (60) days after access is provided.

4.2.3 Redundant Subscriber Qualifications

Subscriber type real estate or appraiser must correlate to the participant type. A subscriber who is both a California Real Estate licensee and California certified or licensed appraiser must join as a R.E. Subscriber unless their employing or affiliated participant is an Appraiser participant.

For violation of this section, see Appendix A, Citable Infractions, Section 1.1 Use of MLS System by Unauthorized Party and 5.5, Non-Completion of Any Required Orientation Program within 60 Days.

4.3 Clerical Users

Individuals (whether licensed or unlicensed) under the direct supervision of an MLS Participant or Subscriber that perform only administrative and clerical tasks that do not require a real estate license or an appraisers certificate or license. Clerical Users may join the MLS through their employing Participant or Subscriber. The Participant shall be responsible for the conduct of the Clerical User. Clerical Users shall be linked in the system to at least one Participant. They may also be linked to a particular Subscriber. Each Participant and Subscriber shall provide the MLS with a list of all Clerical Users employed by or affiliated as independent contractors with the Participant or Subscriber and shall immediately notify the MLS of any changes, additions or deletions from the list. Clerical Users shall also be subject to the following requirements:

  1. Clerical Users are given a unique passcode;
  2. Clerical Users must have any fees paid in full;
  3. Participant or Subscriber linked to the Clerical User may be fined, disciplined or terminated for Clerical User’s misconduct;
  4. Clerical Users shall sign a written agreement to abide by the rules and regulations of the MLS; and
  5. Clerical Users may complete any required orientation program of no more than eight (8) classroom hours within sixty (60) days after access has been provided.

4.4 Notification of Licensees

Each Participant shall provide the MLS with a list of all real estate licensees or certified or licensed Appraisers employed by or affiliated as independent contractors with such Participant or with such Participant’s firm and shall immediately notify the MLS of any changes, additions or deletions from the list. This list shall include any licensees under any broker associate affiliated with the Participant.

For violation of this section, see Appendix A, Citable Infractions, 1.1, Use of MLS System by Unauthorized Party.

4.5 Participation Not Transferable

Participation in the MLS is on an individual basis and may not be transferred or sold to any corporation, firm or other individual. Any reimbursement of MLS fees is a matter of negotiation between those transferring the business or determined by internal contract arrangement within the firm. However, providing the first Participant consents, EBRDI shall allow a firm to designate a different person as a Participant within the firm without additional initial participation fees. EBRDI may charge an administrative fee for this service of reassigning Participants within a firm.

4.6 Listing Broker Defined

For purposes of these MLS rules, a Listing Broker is a Broker Participant who is also a listing agent as defined in Civil Code § 1086(f) who has obtained a written listing agreement by which the broker has been authorized to act as an agent to sell or lease the property or to find or obtain a buyer or lessee. Whenever these rules refer to the Listing Broker, the term shall include the real estate Subscriber or a licensee acting for the Listing Broker but shall not relieve the Listing Broker of responsibility for the act or rule specified.

4.7 Cooperating Broker or Selling Broker Defined

For purposes of these MLS rules, a cooperating broker or selling broker is a Broker Participant who is also a selling agent as defined in Civil Code § 1086 who acts in cooperation with a Listing Broker to accept the offer of compensation and/or sub-agency to find or obtain a buyer or lessee. The cooperating broker or selling broker may be the agent of the buyer or, if sub-agency is offered and accepted, may be the agent of the seller. Whenever these rules refer to the cooperating broker or selling broker, the term shall include the R.E. Subscriber of licensee acting for the cooperating or selling broker but shall not relieve that Broker Participant of responsibility for the act or rule specified.

4.8 Appraiser Defined

For purposes of these MLS rules, an Appraiser is an Appraiser Participant, Appraiser Subscriber, or licensed or certified Appraiser acting for the Appraiser Participant or Appraiser Subscriber. Whenever these rules refer to the Appraiser, the term shall also include the Appraiser Subscriber or a licensed or certified Appraiser employed by or affiliated as an independent contractor with the firm that employs the Appraiser but shall not relieve that Appraiser Participant of responsibility for the act or rule specified.

4.9 Denied Application

In the event an application for participation in the MLS is rejected by the MLS, the applicant, and his or her broker, if applicable, will be promptly notified in writing of the reason for the rejection. The broker shall have the right to respond in writing, and to request a hearing in accordance with the California Code of Ethic and Arbitration Manual.

4.10 Interim Training

Participants and Subscribers may be required, at the discretion of the MLS, to complete additional training of not more than four (4) classroom hours in any twelve (12) month period when deemed necessary by the MLS to familiarize Participants and Subscribers with system changes or enhancement and/or changes to MLS rules or policies. Participants and Subscribers must be given the opportunity to complete any mandated additional training remotely.