Mandatory Listing Submission
The “secret ingredient” of MLS (and the core of Clear Cooperation Policy).
If you were not required to submit all (or nearly all) of your listings to the MLS in which you are a Participant, you would only submit the listings you cannot sell yourself, and residential MLS would look like our attempts to create commercial MLSs over the years, which has been somewhat of a failure, and consumers (buyers and sellers) would suffer.
The history of mandatory submission policies in the MLS (Multiple Listing Service) system is rooted in the evolution of real estate practices and the need for cooperation among brokers to facilitate transparent property listings and transactions.
Here’s a brief history of how these policies have developed:
The MLS concept began in the late 19th and early 20th centuries in the US, as local real estate brokers recognized the benefits of sharing property listings with each other. These cooperative practices allowed brokers to assist each other in selling properties, fostering a mutual benefit model where brokers could earn commissions on sales they contributed to.
By the mid-20th century, MLSs became formally established in most U.S. regions. The National Association of Realtors (NAR) standardized MLS practices to ensure cooperation and fair access to listings. This included rules around submission, access, and data sharing among MLS members. As MLS databases became more established, policies were developed to ensure timely and comprehensive data submission.
In the latter part of the 20th century, NAR and regional MLSs began implementing mandatory submission policies to ensure that properties marketed by brokers would be available for other MLS members to see. The aim was to provide consumers with more options and prevent exclusive or private listings that might exclude certain buyers or agents.
In 2019, in response to the rise of “pocket listings” or “office exclusives,” NAR introduced the Clear Cooperation Policy (Policy Statement 8.0). This policy mandates that any property marketed publicly by an MLS member must be submitted to the MLS within one business day. The Clear Cooperation Policy was designed to address issues of transparency and fair competition in the real estate market, particularly as off-market listings became more prevalent.
With the growth of online real estate platforms and advancements in data analytics, the importance of mandatory submission policies became more evident. Comprehensive data collection within the MLS allows for accurate market analysis and consumer trust, and it levels the playing field for agents and buyers alike.
The development of these policies underscores MLS commitment to creating a transparent and equitable marketplace by maintaining standards around listing submissions, which serve the broader goals of consumer protection and market fairness.
Before there was MLS, there was this (Image from San Diego Historical Society)
