Multiple Listing Service

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Multiple Listing Service (MLS) (also Multiple Listing System or Multiple Listings Service) is a database which allows real estate brokers representing sellers under a listing contract to widely share information about properties with real estate brokers who may represent potential buyers or wish to cooperate with a seller's broker in finding a buyer for the property. The MLS combines the listings of all available properties that are represented by brokers who are both members of that MLS system and of NAR or CREA, (the National Association of Realtors in the US or the Canadian Real Estate Association).

The purpose of the MLS is to enable the efficient distribution of information so that, when a real estate agent is introduced to a potential home buyer, he/she may search the MLS system and retrieve information about all homes for sale in a given area or price range, whether under a listing contract by that agent's brokerage or by all participating brokers.

The MLS systems are governed by private entities, and the rules are set by those entities with no state or federal oversight, beyond any individual state rules regarding real estate. MLS systems set their own rules for membership, access, and sharing of information, but are subject to nationwide rules laid down by NAR or CREA. An MLS may be owned and operated by a real estate company, a county or regional real estate Board of REALTORS or Association of REALTORS, or by a trade association. Membership of the MLS is generally considered to be essential to the practice of real estate brokerage.

1 Limitations of access to the MLS
2 United States
- 2.1 New York City
- 2.2 Policies on sharing MLS data
3 Canada
4 Alternatives and Changes to the MLS system
5 See also
6 References
7 External links and references

[edit] Limitations of access to the MLS

Most MLS systems restrict membership and access to real estate brokers (and their agents) who are appropriately licensed by the state (or province); are members of a local Board or Association of REALTORS; and are members of the trade association (e.g., NAR or CREA).

A person selling his/her own property - acting as a For Sale By Owner (or FSBO) - cannot put a listing for the home directly into the MLS. Similarly, a properly licensed broker who chooses to neither join the trade association nor operate a business within the associations's rules, cannot join the MLS.

However, there are brokers and many online services which offer FSBO sellers the option of listing their property in their local MLS database by paying a flat fee or another non-traditional compensation method. This may be the fastest growing segment of the real estate industry.

[edit] United States

The largest MLS in the United States is currently the Washington, DC region's Metropolitan Regional Information Systems, Inc (MRIS) covering Washington DC, most of Maryland (including the Chesapeake Bay counties) and suburban Virginia counties, and parts of West Virginia and Pennsylvania. It has 59,280 active members, according to the public access sections of its website, [1].

According to the Swanepoel TRENDS Report 2007 ^[1] the following are the MLS Boards with more than 30,000 members:

60,000 - Metropolitan Regional Information Systems
55,000 - Southern California MLS[2]
50,000 - MLS of Northern Illinois[3] MLS of Northern Illinois
42,000 - South East Florida Regional MLS[4]
38,000 - First MLS[5]
37,000 - Arizona Regional MLS[6]
35,000 - Georgia MLS [7]
33,000 - MLS Property Information Network [8]
32,000 - TReND [9]

[edit] New York City

Although the other boroughs and Long Island have an MLS, Manhattan does not, but it does have a database called RLS, which is governed by REBNY (Real Estate Board of New York). Many brokerages are members, but controversies surround it, especially since members are required to place listings on the system within 72 hours. Not unlike many other MLS systems requiring timely inclusion of information into the system, this allows brokers to contact all potential clients before they list.

[edit] Policies on sharing MLS data

The National Association of Realtors (NAR) has set policies that permit brokers to show limited MLS information on their websites under a system known as IDX or Internet Data Exchange. NAR has an ownership interest in Homestore, the company which operates a website that has been given exclusive rights to display significant MLS information. The site is Realtor.com.

Using IDX search tools available on most real estate brokers' websites (as well as on many individual agents' sites), potential buyers may view properties available on the market, using search features such as location, type of property (single family, lease, vacant land, duplex), property features (number of bedrooms and bathrooms), and price ranges. In some instances photos can be viewed. Many allow for saving search criteria and for daily email updates of newly-available properties. However, if a potential buyer finds a property, he/she will still need to contact the listing agent (or their own agent) to view the house and make an offer.

The U.S. Department of Justice filed an antitrust lawsuit in September 2005 against the National Association of Realtors over NAR's policy which would have allowed brokers to restrict access to their MLS information from appearing on the websites of certain brokers which operate solely on the web. This policy would also have applied to commercial entities (who are also licenced brokerages such as HomeGain which solicit clients by internet advertising and then provide referrals to local agents in return for a fee of 25% to 35% of the commission.

The DOJ's antitrust claims also include NAR rules that exclude certain kinds of brokers from membership in MLSs.

[edit] Canada

In Canada, MLS is a cooperative system accessible only to the 82,000+ members of the Canadian Real Estate Association (CREA), working through Canada's 99 real estate boards and 11 provincial/territorial associations.

However, there is a publicly accessible website [10] that serves as an "advertising vehicle provided by REALTORS across Canada to help market properties." The website contains a searchable database of properties listed on the MLS system, but with limited details. Users are directed to contact a Realtor for more information.

[edit] Alternatives and Changes to the MLS system

Looking back in time, the MLS was supposed to be simple: A seller – a listing - an agreement to share - a buyer - a sale. Everyone benefited, including the buyers and the sellers. MLS model in use today dates back to the 1960s when almost all brokers involved in transactions represented the seller; either as the seller’s agent or as the subagent of the listing broker. The seller paid listing broker who, in turn, was responsible to compensate the broker working with the buyer.

According to the Swanepoel TRENDS Report 2007 ^[2] this changed during the 1990s with the evolution of buyer’s agents, the advancement of the Internet, the subsequent and rapid sharing of real estate listing data online, and the copyright door being thrown wide open. Today there are 800+ MLS systems across the country and consolidation is inevitable.

The drive towards the freedom of information has caused MLS to evolve into a consumer marketplace and a quasi public utility. That in turn has opened new competitors such as Google, Yahoo!, Move.com, Zillow.com, HomeGain, Trulia, Point2 and Craigslist all searching for the winning model.