GSMAR Rules and Regulations

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RULES AND REGULATIONS

GREAT SMOKY MOUNTAINS ASSOCIATION OF REALTORS®

MULTIPLE LISTING SERVICE

Last Revision – February 2022

Section 1 Listing Procedures:

Listings of real or personal property of the following types, which are listed subject to a real estate broker’s license, and

which are located within the service area of the multiple listing service, by participants on an exclusive right to sell listing

form or exclusive agency, * shall be electronically entered into the Multiple Listing Service within the allotted time frame

(Residential Listing 1 Business Day, all other Property Types with 7 Business Days) after all necessary signatures of

seller(s) have been obtained (this includes the Designated Broker’s signature).

1. Single family homes for sale or exchange

2. Vacant lots and acreage for sale or exchange

3. Multi-family residential buildings for sale or exchange

4. Commercial or Industrial properties for sale or exchange

(*) EXCLUSIVE AGENCY LISTINGS will be accepted for printing as long as a disclosure of exemption is noted

on both the listing contract, the Computerized Data Input Form, and the appropriate fields in the Computerized Data

System.

NOTE 1: The multiple listing service shall not require a participant to submit listings on a form other than the form the

participant individually chooses to utilize provided the listing is of a type accepted by the service, although a property data

form may be required as approved by the multiple listing service. However, the multiple listing service, through its legal

counsel:

• may reserve the right to refuse to accept a listing form which fails to adequately protect the interests of the public and

the participants

• assure that no listing form filed with the multiple listing service establishes, directly or indirectly, any contractual

relationship between the multiple listing service and the client (buyer or seller)

The multiple listing service shall accept exclusive right-to-sell listing contracts and exclusive agency listing contracts, and

may accept other forms of agreement which make it possible for the listing broker to offer compensation to the other

participants of the multiple listing service acting as subagents, buyer agents, or both.

The listing agreement must include the seller’s written authorization to submit the agreement to the multiple listing service.

The different types of listing agreements include:

• exclusive right-to-sell • open

• exclusive agency • net

The service may not accept net listings because they are deemed unethical and, in most states, illegal. Open listings

are not accepted, except where required by law, because the inherent nature of an open listing is such as to usually not

include the authority to cooperate and compensate other brokers and inherently provides a

disincentive for cooperation. (Amended 4/92)

The exclusive right-to-sell listing is the conventional form of listing submitted to the multiple listing service in that the

seller authorizes the listing broker to cooperate with and to compensate other brokers. (Amended 4/92)

The exclusive agency listing also authorizes the listing broker, as exclusive agent, to offer cooperation and

compensation on blanket unilateral bases, but also reserves to the seller the general right to sell the property on an

unlimited or restrictive basis. Exclusive agency listings and exclusive right-to-sell listings with named prospects exempt

should be clearly distinguished by a simple designation such as a code or symbol from exclusive right-to-sell listings with

no named prospects exempt, since they can present special risks of procuring cause controversies and administrative

problems not posed by exclusive right-to- sell listings with no named prospects exempt. Care should be exercised to

ensure that different codes or symbols are used to denote exclusive agency and exclusive right-to-sell listings with

prospect reservations. (Amended 4/92)

Note 2: A multiple listing service does not regulate the type of listings its members may take. This does not mean that a

multiple listing service must accept every type of listing. The multiple listing service shall decline to accept open listings

(except where acceptance is required by law) and net listings, and it may limit its service to listings of certain kinds of

property. But, if it chooses to limit the kind of listings it will accept, it shall leave its members free to accept such listings to

be handled outside the multiple listing service.

Note 3: A multiple listing service may, as a matter of local option, accept exclusively listed property that is subject to

auction. If such listings do not show a listed price, they may be included in a separate section of the MLS compilation of

current listings. (Adopted 11/92)

Section 1.01 Clear Cooperation

Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for

cooperation with other MLS participants. Public marketing includes, but is not limited to, flyers displayed in windows, yard

signs, digital marketing on public facing websites, brokerage website displays (including IDX and VOW), digital

communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the

general public. (Adopted 11/19)

Note: Exclusive listing information for required property types must be filed and distributed to other MLS Participants for

cooperation under the Clear Cooperation Policy. This applies to listings filed under Section 1 and listings exempt from

distribution under Section 1.3 of the NAR model MLS rules, and any other situation where the listing broker is publicly

marketing an exclusive listing that is required to be filed with the service and is not currently available to other MLS

Participants.

Section 1.1 Types of Properties:

The following are some of the types of properties that may be published through the service, including types described in

the preceding paragraph that are required to be filed with the service and other types that may be filed with the service at

the participant’s option provided, however, that any listing submitted is entered into within the scope of the participant’s

licensure as a real estate broker: (Amended 11/91)

1. Residential

2. Land & Lot

3. Multi- Family

4. Commercial/Industrial

Only Commercial leasehold property can be listed without land. This means that a mobile home listing must include land

(real property) for sale.

Section 1.1.a Listings Subject to Rules and Regulations of the Service:

Any listing taken on a contract to be filed with the multiple listing service is subject to the rules and regulations of the

service upon signatures of the seller(s).

Section 1.2 Detail on Listings Filed with the Service:

The Computerized Data Input of the listing when filed with the multiple listing service by the listing broker, shall be

complete and appropriate in every detail which is ascertainable as specified on the Computerized Data Input Format. All

mandatory fields must be accurately filled in on the system including primary photo or they will be withdrawn 3 Business

Days after notification. (03/17)

Section 1.2.0. Accuracy of Listing Data:

Participants and subscribers are required to submit accurate listing data and required to correct any known errors. (2/22)

The tax blank should be filled in with the last known tax amount and year unless unavailable. If information is

unavailable, the field should be filled by the assessed rate for the city and county rather than an incorrect dollar

amount. Tax Map, Group (with a sub map letter), Warranty Deed Book, Page and Parcel numbers are to be

included. Any exclusive agency listing must be clearly noted as same by marking appropriate fields in the

Computerized Data System. Listings for any properties that are zoned commercial may be listed in both

commercial and one other property type. However, upon closing, one of the listings must be withdrawn and the

other closed thereby ensuring statistical information accuracy. Remarks and Directions fields shall not include firm

names, agent names, telephone numbers, bonus/commission statements, rental company name, rental company

phone number, any and all URL’s, or any references to owner condition (i.e. divorce, estate, out of state). These

types of information must be entered in the designated data field or in the Addendum.

Section 1.3 Exempt Listings:

If the Seller refuses to permit the listing to be disseminated by the service, the participant may then take the listing (office

exclusive) and such listing shall be made available upon request to the service but not disseminated to the participants.

Filing of the listing should be accompanied by certification signed by the seller that he does not desire the listing to be

disseminated by the service.

Note 2: MLS Participants must distribute exempt listings within (1) one business day once the listing is publicly

marketed. See Section 1.01, Clear Cooperation

Section 1.4 Change of Status of Listing:

Any change in listed price, expiration date, status change (other than expired), pending or back to active from pending, or

other change in the original listing agreement, shall be made only when authorized in writing by the seller and shall be

electronically filed with the service within 3 Business Days. The change should be made immediately in the Computerized

Data System.

Section 1.5 Withdrawal of Listing Prior to Expiration:

Listings of property may be withdrawn from the Multiple Listing Service by the Listing Broker before the expiration date of

the listing agreement provided notice is filed with the Service including a copy of the agreement, between the seller and

the listing broker which authorizes the withdrawal.

Sellers do not have the unilateral right to require an MLS to withdraw a listing without the listing broker’s concurrence.

However, when a seller(s) can document that his or her exclusive relationship with the listing broker has been terminated,

the multiple listing service may remove the listing at the request of the seller. (Adopted 11/96)

Section 1.6 Contingencies Applicable to Listings:

Any contingency, exclusion, or conditions of any term in a listing shall be specified and noticed to the participants in the

listing agreement and on the Computerized Data Input Form under Addendum.

Section 1.7 Listing Price Specified:

The full gross listing price stated in the listing contract will be included in the information published in the MLS

compilation of current listings, unless the property is subject to auction. (Amended 11/92)

The listing price for leased properties shall be calculated by taking the monthly lease price for the first 12 (twelve) month

period PLUS the Leasehold Buy-Out Cost.

Section 1.8 Listing Multiple Unit Properties:

All properties which are to be or may be sold separately must have individual listing agreements as well as a listing

agreement on the whole and must be entered in the MLS compilation the same way. When part of a listed property has

been sold, proper notification should be given to the multiple listing service in writing.

Section 1.9 No Control of Commission Rates or Fees Charged by Participants:

The multiple listing service shall not fix, control, recommend, suggest, or maintain commission rates or fees for services to

be rendered by participants. Further, the multiple listing service 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 Expiration, Extension, and Renewal of Listings:

Listings filed with the multiple listing service will automatically be removed from the compilation of current listings on the

expiration date specified in the agreement, unless prior to that date the MLS receives notice that the listing has been

extended or renewed. (Amended 11/01)

If notice of renewal or extension is received after the listing has been removed from the compilation of current listings, the

extension or renewal will be published in the same manner as a new listing. Extensions and renewals of listings must be

signed by the seller(s) and filed with the service. (Amended 11/01)

Section 1.11 Termination Date on Listings:

Listings filed with the Service shall bear a definite and final termination date, as negotiated between the listing broker and

the seller.

Section 1.12 Service Area:

Only listings of the designated types of property located within the service area of the MLS are required to be submitted to

the service. Listings of property located outside the MLS’s service area will be accepted if submitted voluntarily by a

participant, but cannot be required by the service. (Amended 11/17)

Section 1.13 Listings of Suspended Participants:

When a participant of the service is suspended from MLS for failing to abide by a membership duty (i.e., violation of the

Code of Ethics, Association Bylaws, MLS bylaws, MLS Rules and Regulations, or other membership obligations except

failures to pay appropriate dues, fees, or charges), all listings currently filed with the MLS by the suspended participant

shall, at the participant’s option, be retained in the service until sold, withdrawn, or expired, and shall not be renewed or

extended by the MLS beyond the termination date of the listing agreement in effect when the suspension become

effective. If a participant has been suspended from the association (except where MLS participation without association

membership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees, or charges, an association

MLS is not obligated to provide MLS services, including continued inclusion of the suspended participant’s listing in the

MLS compilation of current listing information. Prior to any removal of a suspended participant’s listing from MLS, the

suspended participant should be advised in writing of the intended removal so that the suspended participant may advise

his clients.

Section 1.14 Listings of Expelled Participants:

When a participant of the Service is expelled from the MLS for failing to abide by a membership duty (i.e., violation of the

Code of Ethics, Association Bylaws, MLS Bylaws, MLS Rules and Regulations, or other membership obligations except

failure to pay appropriate dues, fees or charges), all listings currently filed with the MLS shall, at the expelled participant’s

option, be retained in the Service until sold, withdrawn, or expired, and shall not be renewed or extended by the MLS

beyond the termination of the listing agreement in effect when the expulsion became effective. If a participant has been

expelled from the association (except where MLS participation without association membership is permitted by law) or

MLS (or both) for failure to pay appropriate dues, fees, or charges, an association MLS is not obligated to provide MLS

services, including continued inclusion of the expelled information. Prior to any removal of an expelled participant’s listings

from the MLS, the expelled participant should be advised, in writing, of the intended removal so that the expelled

participant may advise his clients. (03/17)

Section 1.15 Listings of Resigned Participants:

When a participant resigns from the MLS, the MLS is not obligated to provide services, including continued inclusion of

the resigned participant’s listings in the MLS compilation of current listing information. Prior to any removal of a resigned

participant’s listings from the MLS, the resigned participant should be advised in writing of the intended removal so that

the resigned participant may advise his clients.

Section 1.16 Property Addresses

At the time of filing a listing, participants and subscribers must include a property address available to other participants

and subscribers, and if an address doesn’t exist, a parcel identification number can be used. Where an address or parcel

identification number are unavailable, the information filed with the MLS must include a legal description of the property

sufficient to describe its location. (Amended 05/21)

SELLING PROCEDURES:

Section 2. Showings and Negotiations:

Appointments for showings and negotiations with the seller for the purchase of listed property filed with the Multiple Listing

Service shall be conducted through the listing broker except under the following circumstances:

1. the listing broker gives the cooperating broker specific authority to show and/or negotiate directly, or

2. after reasonable effort, the cooperating broker cannot contact the listing broker or his representative; however, the

listing broker, at his option, may preclude such direct negotiations by the cooperating broker. (Amended 4/92)

Section 2.1 Presentation of Offers:

The listing broker must make arrangements to present the offer as soon as possible, or give the cooperating broker a

satisfactory reason for not doing so. (Amended 4/92)

Section 2.2 Submission of Written Offers and Counter-offers:

The listing broker shall submit to the seller all written offers until closing unless precluded by law, government rule,

regulation, or agreed otherwise in writing between the seller and listing broker. Unless the subsequent offer is contingent

upon the termination of an existing contract, the listing broker shall recommend that the seller obtain the advice of legal

counsel prior to acceptance of the subsequent offer.

Participants representing buyers or tenants shall submit to the buyer or tenant all offers and counter-offers until

acceptance, and shall recommend that buyers and tenants obtain legal advice where there is a question about whether a

pre-existing contract has been terminated. (Amended 11/05)

Section 2.3 Right of Cooperating Broker in Presentation of Offer:

The cooperating broker (subagent or buyer agent) or his representative has the right to participate in the presentation to

the seller or lessor of any offer he secures to purchase or lease. He does not have the right to be present at any

discussion or evaluation of that offer by the seller or lessor and the listing broker. However, if the seller or lessor gives

written instructions to the listing broker that the cooperating broker not be present when an offer the cooperating broker

secured is presented, the cooperating broker has the right to a copy of the seller’s or lessor’s written instructions. None of

the foregoing diminishes the listing broker’s right to control the establishment of appointments for such presentations.

(Amended 4/92)

Where the cooperating broker is not present during the presentation of the offer, the cooperating broker can request in

writing, and the listing broker must provide, as soon as practical, written affirmation stating that the offer has been

submitted to the seller, or written notification that the seller has waived the obligation to have the offer presented.

(Amended 11/19)

Section 2.4 Right of Listing Broker in Presentation of Counter-offer:

The listing broker or his representative has the right to participate in the presentation of any counter-offer by the seller or

lessor. He does not have the right to be present at any discussion or evaluation of a counter-offer by the purchaser or

lessee (except when the cooperating broker is a subagent). However, if the purchaser or lessee gives written instructions

to the cooperating broker that the listing broker not be present when a counter-offer is presented, the listing broker has the

right to a copy of the purchaser’s or lessee’s written instruction. (Adopted 11/93)

Section 2.5 Reporting Sales to the Service:

Status changes, including final closing of sales and sales prices, shall be reported to the multiple listing service by the

listing broker within 72 hours after they have occurred. If negotiations were carried on under Section 2 a. or b. hereof, the

cooperating broker shall report accepted offers and prices to the listing broker within 72 hours after occurrence and the

listing broker shall report them to the MLS within 72 hours after receiving notice from the cooperating broker. (Amended

11/11)

Note 1: The listing agreement of a property filed with the MLS by the listing broker should include a provision expressly

granting the listing broker authority to advertise; to file the listing with the MLS; to provide timely notice of status changes

of the listing to the MLS; and to provide sales information including selling price to the MLS upon sale of the property. If

deemed desirable by the MLS to publish sales information prior to final closing (settlement) of a sales transaction, the

listing agreement should also include a provision expressly granting the listing broker the right to authorize dissemination

of this information by the MLS to its participants. (Amended 11/01)

Note 2: In disclosure states, if the sale price of a listed property is recorded, the reporting of the sale price may be

required by the MLS.

In states where the actual sale prices of completed transactions are not publicly accessible, failure to report sale

prices can result in disciplinary action only if the MLS:

1. categorizes sale price information as confidential and

2. limits use of sale price information to participants and subscribers in providing real estate services, including

appraisals and other valuations, to customers and clients; and to governmental bodies and third-party entities only

as provided below.

The MLS may provide sale price information to governmental bodies only to be used for statistical purposes (including use

of aggregated data for purposes of valuing property) and to confirm the accuracy of information submitted by property

owners or their representatives in connection with property valuation challenges; and to third-party entities only to be used

for academic research, statistical analysis, or for providing services to participants and subscribers. In any instance where

a governmental body or third-party entity makes sale price information provided by the MLS available other than as

provided for in this provision, a listing participant may request the sale price information for a specific property be withheld

from dissemination for these purposes with written authorization from the seller, and withholding of sale price information

from those entities shall not be construed as a violation of the requirement to report sale prices. (Adopted 11/11)

Note 3: As established in the Virtual Office Website (“VOW”) policy, sale prices can only be categorized as confidential in

states where the actual sale prices of completed transactions are not accessible from public records. (Adopted 11/11)

Section 2.6 Reporting Resolutions of Contingencies:

The listing broker shall report to the multiple listing service within 24 hours that a contingency on file with the Multiple

Listing Service has been fulfilled or renewed, or the agreement canceled.

This includes exclusions of buyers, changes in bonus, etc.

Section 2.7 Advertising of Listings Filed with the Service:

A listing shall not be advertised by any participant, other than the listing broker, without the prior consent of the listing

broker.

Section 2.8 Reporting Cancellation of Pending Sale:

The listing broker shall report immediately to the multiple listing service the cancellation of any pending sale, and the

listing shall be reinstated immediately.

Section 2.9 Disclosing the Existence of Offers:

Listing brokers, in response to inquiries from buyers or cooperating brokers shall, with the seller’s approval, disclose the

existence of offers on the property. Where disclosure is authorized, the listing broker shall also disclose, if asked, whether

offers were obtained by the listing licensee, by another licensee in the listing firm, or by a cooperating broker. (Amended

11/08)

Section 2.10 Availability of Listed Property:

Listing brokers shall not misrepresent the availability of access to show or inspect listed property. (Amended 11/05)

Refusal to Sell:

Section 3. Refusal to Sell:

If the seller of any listed property filed with the multiple listing service refuses to accept a written offer satisfying the terms

and conditions stated in the listing, such fact shall be transmitted immediately to the service and to all participants using

the Message function of the system.

PROHIBITIONS:

Section 4. Information for Participants Only:

Any listing filed with the service shall not be made available to any broker or firm not a member of the MLS without the

prior consent of the listing broker.

Section 4.1 For Sale Signs:

Only the “For Sale” signs of the listing broker may be placed on a property. (Amended 11/89)

Section 4.2 Sold Signs:

Prior to closing, only the “Sold” sign of the listing broker or their affiliate may be placed on a property, unless the listing

broker authorizes the cooperating (selling) broker to post such a sign. (Amended 4/96)

Section 4.3 Solicitation of Listing Filed with the Service:

Participants shall not solicit a listing on property filed with the service unless such solicitation is consistent with Article 16

of the REALTORS®’ Code of Ethics, its Standards of Practice, and its Case Interpretations.

Note: This section is to be construed in a manner consistent with Article 16 of the Code of Ethics and particularly

Standard of Practice 16-4. This section is intended to encourage sellers to permit their properties to be filed with the

service by protecting them from being solicited, prior to expiration of the listing, by brokers and salespersons seeking the

listing upon its expiration.

Without such protection, a seller could receive hundreds of calls, communications, and visits from brokers and

salespersons who have been made aware through MLS filing of the date the listing will expire and desire to substitute

themselves for the present broker.

This section is also intended to encourage brokers to participate in the service by assuring them that other participants will

not attempt to persuade the seller to breach the listing agreement or to interfere with their attempts to market the property.

Absent the protection afforded by this section, listing brokers would be most reluctant to generally disclose the identity of

the seller or the availability of the property to other brokers.

This section does not preclude solicitation of listings under the circumstances otherwise recognized by the Standards of

Practice related to Article 16 of the Code of Ethics.

Section 4.4 Use of the Terms MLS and Multiple Listing Service:

No MLS participant, subscriber or licensee affiliated with any participant shall, through the name of their firm, their URLs,

their email addresses, their website addresses, or in any other way represent, suggest, or imply that the individual or firm

is an MLS, or that they operate an MLS. Participants, subscribers and licensees affiliated with participants shall not

represent, suggest, or imply that consumers or others have direct access to MLS databases, or that consumers or others

are able to search MLS databases available only to participants and subscribers. This does not prohibit participants and

subscribers from representing that any information they are authorized under MLS rules to provide to clients or customers

is available on their websites or otherwise.

PROHIBITED FIELDS: In order to ensure policy consistency, the following data fields may not be printed on hand-outs,

brochures, CMAs, listing detail sheets, or spreadsheets, and may not be displayed

on internet sites:

1. Exclusive RTS

Exclusions

Bonus

Variable Rate

2. Owner’s Name

3. List Date

4. Expiration Date

5. Addenda

6. Showing Instructions

7. Legal Descriptions

Deed Book

Page

Map

Group

8. Update Date

9. Business Name

10. Possession

Section 4.5 Services Advertised as “Free”:

MLS participants and subscribers must not represent that their brokerage services to a client or customer are free or

available at no cost to their clients, unless the participant or subscriber will receive no financial compensation from any

source for those services (Amended 11/21)

DIVISION OF COMMISSIONS:

Section 5. Compensation Specified on Each Listing:

The listing broker shall specify, on each listing filed with the multiple listing service, the compensation offered to other

multiple listing service participants for their services in the sale of such listing. Such offers are unconditional except that

entitlement to compensation is determined by the cooperating broker’s performance as the procuring cause of sale (or

lease) or as otherwise provided for in this rule. The listing broker’s obligation to compensate any cooperating broker’s

performance as the procuring cause of sale (or lease) may be excused if it is determined through arbitration that, through

no fault of the listing broker and in the exercise of good faith and reasonable care, it was impossible or financially

unfeasible for the listing broker to collect a commission pursuant to the listing agreement. In such instances, entitlement to

cooperative compensation offered through the MLS would be a question to be determined by an arbitration hearing panel

based on all relevant facts and circumstances including, but not limited to, why it was impossible or financially unfeasible

for the listing broker to collect some or all of the commission established in the listing agreement; at what point in the

transaction did the listing broker know (or should have known) that some or all of the commission established in the listing

agreement might not be paid; and how promptly had the listing broker communicated to cooperating brokers that the

commission established in the listing agreement might not be paid. (Amended 11/98)

In filing a property with the multiple listing service of an association of REALTORS, the participant of the service is making

blanket unilateral offers of compensation of the other MLS participants, and shall therefore specify on each listing filed

with the service, the compensation being offered to the other MLS participants. Specifying the compensation on each

listing is necessary because the cooperating broker has the right to know what his compensation shall be prior to his

endeavor to sell. *(Amended 11/96)

The listing broker retains the right to determine the amount of compensation offered to other participants (acting as

subagents, buyer’s agents, or in other agency or non-agency capacities defined by law) which may be the same or

different. (Amended 11/96)

This shall not preclude the listing broker from offering any MLS participant compensation other than the compensation

indicated on any listing published by the MLS, provided the listing broker informs the other broker, in writing, in advance of

submitting an offer to purchase, and provided that the modification in the specified compensation is not the result of any

agreement among all or any other participants in the service. Any superseding offer of compensation must be expressed

as either a percentage of the gross sales price or as a flat dollar amount. (Amended 5/10)

Note 1: The multiple listing service shall not have a rule requiring the listing broker to disclose the amount of total

negotiated commission in his listing contract, and the association multiple listing service shall not publish the total

negotiated commission on a listing, which has been submitted, to the MLS by a participant. The association multiple listing

service shall not disclose in any way the total commission negotiated between the seller and the listing broker.

Note 2: The listing broker may, from time to time, adjust the compensation offered to other multiple listing service

participants for their services with respect to any listing by advance published notice to the service so that all participants

will be advised. (Amended 4/92)

Note 3: The multiple listing service shall make no rule on the division of commissions between participants and

nonparticipants. This should remain solely the responsibility of the listing broker.

Note 4: Multiple listing services, at their discretion, may adopt rules and procedures enabling listing brokers to

communicate to potential cooperating brokers that gross commissions established in listing contracts are subject to court

approval, and that compensation payable to cooperating brokers may be reduced if the gross commission established in

the listing contract is reduced by a court. In such instances, the fact that the gross commission is subject to court approval

and either the potential reduction in compensation payable to cooperating brokers or the method by which the potential

reduction in compensation will be calculated must be clearly communicated to potential cooperating brokers prior to the

time they submit an offer that ultimately results in a successful transaction. (Amended 5/10)

Note 5: Nothing in these MLS rules precludes a listing participant and a cooperating participant, as a matter of mutual

agreement, from modifying the cooperative compensation to be paid in the event of a successful transaction. (Adopted

11/05)

Note 6: Multiple listing services must give participants the ability to disclose to other participants any potential for a short

sale. As used in these rules, short sales are defined as a transaction where title transfers, where the sale price is

insufficient to pay the total of all liens and costs of sale, and where the seller does not bring sufficient liquid assets to the

closing to cure all deficiencies. Multiple listing services may, as a matter of local discretion, require participants to disclose

potential short sales when participants know a transaction is a potential short sale. In any instance where a participant

discloses a potential short sale, they may, as a matter of local discretion, also be permitted to communicate to other

participants how any reduction in the gross commission established in the listing contract required by the lender as a

condition of approving the sale will be apportioned between listing and cooperating participants. All confidential

disclosures and confidential information related to short sales, if allowed by local rules, must be communicated through

dedicated fields or confidential “remarks” available only to participants and subscribers. (Amended 5/09)

_______________________________________________________________________________________________________________________________

*The compensation specified on listings filed with the multiple listing service shall appear in one of two forms. The essential and appropriate

requirement by an association multiple listing service is that the information to be published shall clearly inform the participants as to the

compensation they will receive in cooperative transactions, unless advised otherwise by the listing broker, in writing, in advance of submitting an

offer to purchase. The compensation specified on listings published by the MLS shall be shown in one of the following forms:

1. by showing a percentage of the gross selling price

2. by showing a definite dollar amount (Amended 5/10)

_______________________________________________________________________________________________________________________________

Note: MLSs may also, as a matter of local discretion, allow participants to offer cooperative compensation as a percentage of the net sales

price, with the net sales price defined as the gross sales price minus buyer upgrades (new construction) and seller concessions (as defined by

the MLS unless otherwise defined by state law or regulation). (Adopted 5/08)

While MLSs are not required to authorize participants to offer cooperative compensation based on net sale prices, those that do permit such

offers must define “seller concessions” for purposes other than new construction, unless that term is defined by applicable state law or

regulation. The following definition of “seller concessions” is suggested but not required for adoption:

Points paid by seller on behalf of buyer, seller-paid buyer closing costs, cash or cash allowances not escrowed, down payment assistance,

additions or alterations not considered deferred maintenance, and personal property not usual and customary to such transactions

conveyed from seller to buyer having an agreed upon monetary value. (Adopted 05/12)

Section 5.0.1 Disclosing Potential Short Sales:

Participants must disclose potential short sales (defined as a transaction where title transfers, where the sale price is

insufficient to pay the total of all liens and costs of sale and where the seller does not bring sufficient liquid assets to the

closing to cure all deficiencies) when reasonably known to the listing participants. (Amended 5/09)

Section 5.1 Participant as Principal:

If a participant or any licensee (or licensed or certified appraiser) affiliated with participant has any ownership interest in

property, the listing of which is to be disseminated through the multiple listing service, that person shall disclose that

interest when the listing is filed with the multiple listing service, and such information shall be disseminated to all multiple

listing service participants.

Section 5.2 Participant as Purchaser:

If a participant or any licensee (including licensed and certified appraisers) affiliated with a participant wishes to acquire an

interest in property listed with another participant, such contemplated interest shall be disclosed in writing to the listing

broker not later than the time an offer to purchase is submitted to the listing broker. (Adopted 2/92)

Section 5.3 Dual or Variable Rate Commission:

The existence of a dual-or variable-rate commission agreement (i.e. one in which the seller/landlord agrees to pay a

specified commission if the property is sold/leased by the listing broker without assistance and a different commission if

the sale/lease results through the efforts of a cooperating broker; or one in which the seller/landlord agrees to pay a

specified commission if the property is sold/leased by the listing broker either with or without the assistance of a

cooperating broker and a different commission if the sale/lease results through the efforts of a seller/landlord) shall be

disclosed by the listing broker by a key, code, or symbol as required by the MLS. The listing broker shall, in response to

inquiries from potential cooperating brokers, disclose the differential that would result in either a cooperative transaction

or, alternatively, in a sale that results through the efforts of the seller/landlord. If the cooperating broker is a buyer/tenant

representative, the buyer/tenant representative must disclose such information to their client before the client makes an

offer to purchase or lease. (Amended 5/01)

Section 5.4 Display of Listing Broker’s Offer of Compensation:

Participants and subscribers who share the listing broker’s offer of compensation for an active listing must display the

following disclaimer or something similar.

The listing broker’s offer of compensation is made only to participants of the MLS where the listing is filed. (Amended

11/21)

SERVICE CHARGES:

Section 6. Service Fees and Charges:

The following service charges for operation of the Multiple Listing Service are in effect to defray the costs of the Service

and are subject to change from time to time in the manner prescribed:

Initial Participation Fee: An applicant for participation in the service shall pay an application fee as determined by the

Board of Directors with such fee to accompany the application.

Note: The initial participation fee shall approximate the cost of bringing the service to the participant.

Recurring Participation Fee: The annual participation fee of each Participant shall be an amount equal to $415.00 times

each salesperson and licensed or certified appraiser who has access to and use of the Service, whether licensed as a

broker, sales licensee, or licensed or certified appraiser who is employed by or affiliated as an independent contractor with

such Participant. Payment of such fees shall be made on or before the first day of the fiscal year of the Multiple Listing

Service. Fees shall be prorated on a monthly basis.

However, MLSs must provide participants the option of a no-cost waiver of MLS fees, dues, and charges for any licensee

or licensed or certified appraiser who can demonstrate subscription to a different MLS or CIE where the principal broker

participates. MLSs may, at their discretion, require that broker participants sign a certification of nonuse of its MLS

services by their licensees, which can include penalties and termination of the waiver if violated. (Amended 5/18 and 8/18)

Note 2: Multiple listing services that choose to include affiliated unlicensed administrative and clerical staff, personal

assistants, and/or individuals seeking licensure or certification as real estate appraisers among those eligible for access to

and use of MLS information as subscribers, may, at their discretion, charge recurring fees, (Amended 11/17)

1. An unauthorized user fine will be assessed to the Participant of MLS for any sales person using the

service that has not been reported to the Association as a “user” through the Participant, within the

30-day time period of notification (Refer to By-laws, Article VI Section 13). (03/17)

2. In no instance should an Association require a Participant to pay a subscription fee for an individual

affiliated with him who has no use for and does not use the Service.

3. The emphasis is on “use of the Service”. If a licensee brings listings to the Participant who files them

with the MLS, this is “use” of Service.

4. Those not using the Service must sign an application of MLS waiver which is also to be signed by

their Designated REALTOR Broker Participant and such request is subject to approval of the

Committee and the Board of Directors. These exemptions are to be renewed annually.

Payment of Fees: All MLS fees, dues, and charges, including, but not limited to initial participation fees, recurring

participation fees, subscription fees, etc., shall be assessed only to the MLS PARTICIPANT. None of the foregoing is

intended to preclude the MLS Participant from being reimbursed by the affiliated licensees for fees or charges incurred on

their behalf pursuant to an in-house agreement that may exist.

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Section 6.1 Unauthorized User Fine:

In no instance should a Participant or user through a Participant let any unauthorized person use MLS computer access.

This is confidential information “FOR MEMBERS ONLY.” A fine in the amount of $500.00 for the first offense and

$1,000.00 on the second offense, will be assessed to the Participant Broker of the MLS for any “PROVEN” unauthorized

use of Participant’s or any agent’s (affiliated with his firm) MLS computer access. (03/17)

COMPLIANCE WITH RULES:

Section 7. Compliance With Rules - Authority to Impose Discipline:

By becoming and remaining a participant or subscriber in this MLS, each participant and subscriber agrees to be subject

to the rules and regulations and any other MLS governance provision. The MLS may, through the administrative and

hearing procedures established in these rules, impose discipline for violations of the rules and other MLS governance

provisions. Discipline that may be imposed may only consist of one or more of the following:

a. letter of warning

b. letter of reprimand

c. attendance at MLS orientation or other appropriate courses or seminars which the participant or subscriber can

reasonably attend taking into consideration cost, location, and duration.

d. appropriate, reasonable fine not to exceed $15,000

e. suspension of MLS rights, privileges, and services for not less than thirty (30) days nor more than one (1) year

f. termination of MLS rights, privileges, and services with no right to reapply for a specified period not to

exceed three (3) years. (Revised 11/14)

Note 1: A participant (or user/subscriber, where appropriate) can be placed on probation. Probation is not a form of

discipline. When a participant (or user/subscriber, where appropriate) is placed on probation the discipline is held in

abeyance for a stipulated period of time not longer than one (1) year. Any subsequent finding of a violation of the MLS

rules during the probationary period may, at the discretion of the Board of Directors, result in the imposition of the

suspended discipline. Absent any subsequent findings of a violation during the probationary period, both the probationary

status and the suspended discipline are considered fulfilled, and the individual’s record will reflect the fulfillment. The fact

that one or more forms of discipline are held in abeyance during the probationary period does not bar imposition of other

forms of discipline which will not be held in abeyance. (Revised 05/14)

Note 2: MLS participants and subscribers can receive no more than three (3) administrative sanctions in a calendar year

before they are required to attend a hearing for their actions and potential violations of MLS rules, except that the MLS

may allow more administrative sanctions for violations of listing information provided by participants and subscribers

before requiring a hearing. The MLS must send a copy of all administrative sanctions against a subscriber to the

subscriber’s participant and the participant is required to attend the hearing of a subscriber who has received more than

three (3) administrative sanctions within a calendar year. (Adopted 11/20)

Section 7.1 Compliance with Rules:

The following action may be taken for noncompliance with the rules:

1. For failure to pay any service charge or fee within one (1) month of the date due, and provided that at least ten (10)

days’ notice has been given, the service shall be suspended until service charges or fees are paid in full.

2. For failure to comply with any other rule, the provisions of Sections 9 and 9.1 shall apply.

NOTE: Suspension of service means that all services for the office of the delinquent PARTICIPANT will be held and no

new listings will go in. The PARTICIPANT will remain responsible for PAYMENT of service during suspension period

and/or until such time he notifies the Association in writing of his resignation.

Section 7.2 Applicability of Rules to Users and/or Subscribers:

Non-principal brokers, sales licensees, appraisers, and others authorized to have access to information published by the

MLS are subject to these rules and regulations and may be disciplined for violations thereof provided that the user or

subscriber has signed an agreement acknowledging that access to and use of MLS information is contingent on

compliance with the rules and regulations. Further, failure of any user or subscriber to abide by the 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 or subscribers affiliated with the

participant. (Adopted 4/92)

MEETINGS:

Section 8. Meetings of MLS Committee:

The multiple listing service committee shall meet for the transaction of its business at a time and place to be determined

by the committee or at the call of the chairman.

Section 8.1 Meetings of MLS Participants:

The committee may call meetings of the participants in the service to be known as meetings of the multiple listing service.

Section 8.2 Conduct of the Meetings:

The chairperson, or vice chairperson, shall preside at all meetings or, in their absence, a temporary chairperson from the

membership of the committee shall be named by the chairperson or, upon his failure to do so, by the committee.

Enforcement of Rules or Disputes:

Section 9 Consideration of Alleged Violations:

The committee (Board of Directors) shall give consideration to all written complaints having to do with violations of the

rules and regulations. By becoming and remaining a participant, each participant agrees to be subject to these rules and

regulations, the enforcement of which are at the sole discretion of the Committee (Board of Directors). (Adopted 5/18)

When requested by a complainant, the MLS will process a complaint without revealing the complainant’s identity. If a

complaint is subsequently forwarded to a hearing, and the original complainant does not consent to participating in the

process, the MLS will appoint a representative to serve as the complainant. (Amended 11/20)

Section 9.1 Violations of Rules and Regulations:

If the alleged offense is a violation of the rules and regulations of the service and does not involve a charge of alleged

unethical conduct or request for arbitration, it may be administratively considered and determined by the multiple listing

service committee, and if a violation is determined, the committee may direct the imposition of sanction, provided the

recipient of such sanction may request a hearing before the professional standards committee of the association in

accordance with the bylaws and rules and regulation of the association of Realtors ® within twenty (20) days following

receipt of the committee’s decision. (Amended 11/96)

If, rather than conducting an administrative review, the multiple listing committee has a procedure established to conduct

hearings, the decision of the multiple listing committee may be appealed to the board of directors of the association of

REALTORS® within twenty (20) days of the tribunal’s decision being rendered. Alleged violations involving unethical

conduct shall be referred to the association’s grievance committee for processing in accordance with the professional

standards procedures of the association. If the charge alleges a refusal to arbitrate, such charge shall be referred directly

to the board of directors of the association of REALTORS ®. (Amended 2/98)

Section 9.2 Complaints of Unethical Conduct:

All other complaints of unethical conduct shall be referred by the committee to the Professional Standards Administrator of

the association of REALTORS® for appropriate action in accordance with the professional standards procedures

established in the association’s bylaws. (Amended 11/88)

Section 9.3 Complaints of Unauthorized Use of Listing Content:

Any participant who believes another participant has engaged in the unauthorized use or display of listing content,

including photographs, images, audio or video recordings, and virtual tours, shall send notice of such alleged

unauthorized use to the MLS. Such notice shall be in writing, specifically identify the allegedly unauthorized content, and

be delivered to the MLS not more than sixty (60) days after the alleged misuse was first identified. No participant may

pursue action over the alleged unauthorized use and display of listing content in a court of law without first completing the

notice and response procedures outlined in this Section 9.3 of the MLS rules.

Upon receiving a notice, the Committee will send the notice to the participant who is accused of unauthorized use. Within

ten (10) days from receipt, the participant must either: 1) remove the allegedly unauthorized content, or 2) provide proof to

the Committee that the use is authorized. Any proof submitted will be considered by the Committee, and a decision of

whether it establishes authority to use the listing content will be made within thirty (30) days.

If the Committee determines that the use of the content was unauthorized, the Committee may issue a sanction pursuant

to Section 7 of the MLS rules, including a request to remove and/or stop the use of the unauthorized content within ten

(10) days after transmittal of the decision. If the unauthorized use stems from a violation of the MLS rules, that too will be

considered at the time of establishing an appropriate sanction.

If after ten (10) days following transmittal of the Committee’s determination the alleged violation remains uncured (i.e., the

content is not removed or the rules violation remains uncured), then the complaining party may seek action through a

court of law. (Adopted 5/18)

Section 9.4 MLS Rules Violations:

MLS participants may not take legal action against another participant for alleged rules violation(s) unless the complaining

participant has first exhausted the remedies provided in these rules. (Adopted 5/18)

Confidentiality of MLS Information:

Section 10. Confidentiality of MLS Information:

Any information provided by the multiple listing service to the participants shall be considered official information of the

service. Such information shall be considered confidential and exclusively for the use of participants and 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. (Amended 4/92)

Section 10.1 MLS Not Responsible for Accuracy of Information:

The information published and disseminated by the service is communicated verbatim, without change by the service, as

filed with the service by the participant. The service does not verify such information provided and disclaims any

responsibility for its accuracy. Each participant agrees to hold the service harmless against any liability arising from any

inaccuracy or inadequacy of the information such participant provides.

Ownership of MLS Compilation* and Copyright:

Section 11

By the act of submitting any property listing content to the MLS, the participant represents and warrants that he or she is

fully authorized to license the property listing content as contemplated by and in compliance with this section and these

rules and regulations, and also thereby does grant to the MLS license to include the property listing content in its

copyrighted MLS compilation and also in any statistical report on comparables. Listing content includes, but is not limited

to, photographs, images, graphics, audio and video recordings, virtual tours, drawings, descriptions, remarks, narratives,

pricing information, and other details or information related to the listed property. (Amended 5/18)

Each participant who submits listing content to the MLS agrees to defend and hold the MLS and every other participant

harmless from and against any liability or claim arising from any inaccuracy of the submitted listing content or any

inadequacy of ownership, license, or title to the submitted listing content. (Adopted 5/18)

Note: The Digital Millennium Copyright Act (DMCA) is a federal copyright law that enhances the penalties for copyright

infringement occurring on the Internet. The law provides exemptions or “safe harbors” from copyright infringement liability

for online service providers (OSP) that satisfy certain criteria. Courts construe the definition of “online service provider”

broadly, which would likely include MLSs as well as participants and subscribers hosting an IDX display.

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*The term MLS compilation, as used in Sections 11 and 12 herein, shall be construed to include any format in which

property listing data is collected and disseminated to the participants, including but not limited to bound book, loose-leaf

binder, computer database, card file, or any other format whatsoever.

One safe harbor limits the liability of an OSP that hosts a system, network or website on which Internet users may post

user-generated content. If an OSP complies with the provisions of this DMCA safe harbor, it cannot be liable for copyright

infringement if a user posts infringing material on its website. This protects an OSP from incurring significant sums in

recommended that MLSs, participants and subscribers comply with the DMCA safe harbor provisions discussed herein.

To qualify for this safe harbor, the OSP must:

(1) Designate on its website and register with the Copyright Office an agent to receive takedown requests. The agent

could be the MLS, participant, subscriber, or other individual or entity.

(2) Develop and post a DMCA-compliant website policy that addresses repeat offenders.

(3) Comply with the DMCA takedown procedure. If a copyright owner submits a takedown notice to the OSP, which

alleges infringement of its copyright at a certain location, then the OSP must promptly remove allegedly infringing

material. The alleged infringer may submit a counter-notice that the OSP must share with the copyright owner. If the

copyright owner fails to initiate a copyright lawsuit within ten (10) days, then the OSP may restore the removed material.

(4) Have no actual knowledge of any complained-of infringing activity.

(5) Not be aware of facts or circumstances from which complained-of infringing activity is apparent.

(6) Not receive a financial benefit attributable to complained-of infringing activity when the OSP is capable of controlling

such activity.

Full compliance with these DMCA safe harbor criteria will mitigate an OSP’s copyright infringement liability. For more

information see 17 U.S.C. §512.

Section 11.1:

All right, title and interest in each copy of every multiple listing compilation created and copyrighted by the Great Smoky

Mountains Association of REALTORS®, and in the copyrights therein, shall at all times remain vested in the Great Smoky

Mountains Association of REALTORS®.

Section 11.2:

Each participant shall be entitled to lease from the Great Smoky Mountains Association of REALTORS® a number of

copies of each MLS compilation sufficient to provide the participant and each person affiliated as a licensee (including

licensed or certified appraisers) with such participant with one copy of such compilation. The participant shall pay, for

each such copy, the rental fee set by the association. **

Participants shall acquire by such lease only the right to use the MLS compilation, in accordance with these rules.

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*This section should not be construed to require the participant to lease a copy of the MLS compilation for any licensee (or

licensed or certified appraiser) affiliated with the participant who is engaged exclusively in a specialty of the real estate

business other than listing, selling, or appraising the types of properties which are required to be filed with the MLS and

who does not, at any time, have access to or use of the MLS information or MLS facility of the association.

Use of Copyrighted MLS Compilation:

Section 12. Distribution:

Participants shall at all times maintain control over and responsibility for each copy of any MLS compilation leased to them

by the association of REALTORS, and shall not distribute any such copies to persons other than subscribers who are

affiliated with such participant as licensees, those individuals who are licensed or certified by an appropriate state

regulatory agency to engage in the appraisal of real property and any other subscribers as authorized pursuant to the

governing documents of the MLS. Use of information developed by or published by the association multiple listing service

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 association multiple listing service where access to such information is

prohibited by law. (Amended 4/92)

Section 12.1 Display:

Participants and those persons affiliated as licensees with such participants, shall be permitted to display the MLS

compilation to prospective purchasers only in conjunction with their ordinary business activities of attempting to locate

ready, willing, and able buyers for the properties described in said MLS compilation.

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*It is intended that the participant be permitted to provide prospective purchasers with listing data relating to properties which the

prospective purchaser has a bona fide interest in purchasing or in which the participant is seeking to promote interest. The term

reasonable, as used herein, should therefore be construed to permit only limited reproduction of property listing data intended to

facilitate the prospective purchaser’s decision-making process in the consideration of a purchase. Factors which shall be considered in

deciding whether the reproductions made are consistent with this intent and thus reasonable in number, shall include, but are not

limited to, the total number of listings in the MLS compilation, how closely the types of properties contained in such listings accord with

the prospective purchaser’s expressed desires and ability to purchase, whether the reproductions were made on a selective basis, and

whether the type of properties contained in the property listing data is consistent with a normal itinerary of properties which would be

shown to the prospective purchaser.

Section 12.2 Reproduction:

Participants or their affiliated licensees shall not reproduce any MLS compilation or any portion thereof, except in the

following limited circumstances:

Participants or their affiliated licensees may reproduce from the MLS compilation, and distribute to prospective

purchasers, a reasonable* number of single copies of property listing data contained in the MLS compilation which relate

to any properties in which the prospective purchasers are or may, in the judgment of the participant or their affiliated

licensees, be interested.