Multiple Listing Service
Encyclopedia
A multiple listing service (MLS, also multiple listing system or multiple listings service) is a suite of services that enables real estate broker
Real estate broker
A real estate broker, real estate agent or realtor is a party who acts as an intermediary between sellers and buyers of real estate/real property and attempts to find sellers who wish to sell and buyers who wish to buy...

s to establish contractual offers of compensation (among brokers), facilitates cooperation with other broker participants, accumulates and disseminates information to enable appraisals, and is a facility for the orderly correlation and dissemination of listing information to better serve broker's clients, customers and the public. A multiple listing service's database and software is used by real estate broker
Real estate broker
A real estate broker, real estate agent or realtor is a party who acts as an intermediary between sellers and buyers of real estate/real property and attempts to find sellers who wish to sell and buyers who wish to buy...

s in real estate (or aircraft broker in other industries for example), representing sellers under a listing contract to widely share information about properties with other brokers who may represent potential buyers or wish to cooperate with a seller's broker in finding a buyer for the property or asset. The listing data stored in a multiple listing service's database is the proprietary information of the broker who has obtained a listing agreement with a property's seller.

Origin

According to the U.S. National Association of Realtors:
In the late 1800s, real estate brokers regularly gathered at the offices of their local associations to share information about properties they were trying to sell. They agreed to compensate other brokers who helped sell those properties, and the first MLS was born, based on a fundamental principle that's unique to organized real estate: Help me sell my inventory and I'll help you sell yours.


Seen most widely in the United States and Canada, but spreading to other countries such as the UK, MLS is found in a variety of forms. An typically MLS combines the listings of all available properties that are represented by brokers who are both members of that MLS system and of a national real estate association, such as the U.S. National Association of Realtors
National Association of Realtors
The National Association of Realtors , whose members are known as Realtors, is North America's largest trade association. representing over 1.2 million members , including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries...

 (NAR), Canadian Real Estate Association
Canadian Real Estate Association
The Canadian Real Estate Association represents over 100,000 Realtors across Canada.The Association owns the Multiple Listing Service or MLS trademark and the Realtor trademarks in Canada. Local real estate Boards or Associations operate a local data base under a licensing agreement with the...

 (CREA), and the UK Independent Network of Estate Agents (INEA).

There is no single authoritative MLS, and no universal data format. However, in real estate there is a data standard—the Real Estate Transaction Standard
Real Estate Transaction Standard
RETS is an acronym which stands for Real Estate Transaction Standard.RETS was created to overcome the difficulties presented by the existence of a large number of organizations desiring to share and distribute real estate information with others. RETS addressed this need by providing a common...

—which is being deployed among many MLSes in North America. The many local and private databases, using XML data feeds to input and output agents listings—some of which are controlled by single associations of realtors or groupings of associations (which represent all brokers within a given community or area) or by real estate brokers—are collectively referred to as the MLS because of their data sharing or reciprocal access agreements.

Purpose and benefits

The primary purpose of an MLS is to provide a facility to publish a "unilateral offer of compensation" by a listing broker, to other broker participants in that MLS. In other words, the commission rate that is offered by the listing broker is published within the MLS to other cooperating brokers. This offer of compensation is considered a contractual obligation, however it can be negotiated between the listing broker and the broker representing the buyer. Since the commission for a transaction as well as the property features are contained in the MLS system, it is in the best interests of the broker participants (and thereby the public) to maintain accurate and timely data.

The additional benefit of MLS systems is that an MLS subscriber may search an MLS and retrieve information about all homes for sale by all participating brokers. MLS systems contain hundreds of fields of information about the features of a property. These fields are determined by real estate professionals who are knowledgeable and experienced in that local marketplace. Whereas public real estate websites contain only a small subset of property data.

Limitations on access and other criticisms

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 applicable national trade association (e.g., NAR or CREA). Access is becoming more open as Internet sites offer the public the ability to view portions of MLS listings. There still remains some limitation to access to information within MLSes; generally, only agents who are compensated proportional to the value of the sale have uninhibited access to the MLS database. Many public Web forums have a limited ability in terms of reviewing comparable properties, past sales prices or monthly supply statistics. This represents the cornerstone of several ongoing arguments about the current health of the real-estate market, which are centered on free and open information being necessary for both the buying and selling parties to ensure fair prices are negotiated during closing, ultimately allowing a stable and less volatile market.

A person selling his/her own property - acting as a For sale by owner
For sale by owner
For Sale By Owner, or FSBO , is the process of selling real estate without the representation of a real estate broker or real estate agent...

 (or FSBO) seller - cannot generally put a listing for the home directly into an MLS. An example of an exception to this general practice is the national MLS for Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

, AMLASpain, where FSBO listing are allowed. Similarly, a licensed broker who chooses to neither join the trade association nor operate a business within the association's rules, cannot join most MLSes. 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
Flat fee mls
Flat Fee MLS generally refers to the practice in the real estate industry of a seller entering into an "à la carte service agreement" with a real estate broker who accepts a flat fee rather than a percentage of the sale price for the listing side of the transaction. The buyer's broker is still...

 or another non-traditional compensation method.

In Canada, CREA
Canadian Real Estate Association
The Canadian Real Estate Association represents over 100,000 Realtors across Canada.The Association owns the Multiple Listing Service or MLS trademark and the Realtor trademarks in Canada. Local real estate Boards or Associations operate a local data base under a licensing agreement with the...

 has come under scrutiny and investigation by the Competition Bureau and litigation by former CREA member and real estate brokerage Realtysellers (Ontario) Ltd., for the organization's control over the Canadian MLS system. In 2001, Realtysellers (Ontario) Ltd., a discount real-estate firm was launched that reduced the role of agents and the commissions they collect from home buyers and sellers. The brokerage later shutdown and launched a $100million lawsuit against CREA and TREB, alleging that they breached an earlier out-of-court settlement that the parties entered into in 2003.

Philippines

The Philippine Association of Realtors Boards (PAREB) operates the RPMLX, an MLS for the Philippines.

Vietnam

The Vietnam Multiple Listing Service was started in 2010. The MLS in Vietnam is based around the US model, with some changes to accommodate different local market conditions. In particular, the system supports open agency listings as well as MLS listings, as the current market operates mainly on the open agency model. FSBO listings, however, are not allowed.

United Kingdom

In the United Kingdom, MLS - Multiple Listing Systems do exist via some of the agents software providers, but many software providers have only designed their software as to work in one company (be they have 1 or 20-30 offices). The problem is that most software packages for agents do not allow them to cross share data between other company agencies (separate brokerages), so MLS in the UK is in its infancy and a cross data platform now exits vai INEA (The Independent Network of Estate Agents) who are working with 2/3 of the main software providers meaning that at last one agent can select other agents to send and receive MLS shared listings. Until INEA most software providers did not work together so there has never been a cross data platform or a MLS data standard.

MLS History in the UK. In the 1980s and early/mid 1990s agents did work together much like the early US and Canadian realtors via paper-based forms which had tick-boxes offering a listing from one agent to sub-agents, attached would be the property details pre-agreed with the owner for correctness, a photographic negative of photo; later a similar procedure was carried out by email and graphic computer file. This worked in that all agents involved could copy and process the paper- or email-based property data. The main agent was treated as the vendor, all sales progression went through the main agent, and commission was split on completion.

The Dark Years: In the late 1990s many of the smaller agencies were acquired by larger concerns (known as corporates) and when this happened it broke many of the smaller agent MLS relationships. More software options came in (all in competition) and, as the software houses did not work together, their collectives of agents became fragmented by non-collaborative out-of-group software restraints. With large property portals gaining ground in the 2000s agents in the UK started working alone as all could upload to the same portal platforms.

Changing: The poor economy and rising portal charges to agents has meant a shift. Agents are spending less funds on fewer portals, dropping from 4-5 to maybe a main one and a secondary portal, which they may hop from to try another. Slowly agents are realising by collaborating again and via the new UK MLS data standard INEA (IDX) that they can use each others resources and by working together can gain greater client marketing at reduced costs.
MLS has arrived.

MLS: The future in the UK: INEA research and development has shown that there is again a platform for MLS in the UK and the good old days of paper based listing collaboration with the support of now 2/3 of the main UK software houses means that agents can have their website populated by 1/ their own listings and 2/ a secondary INEA feed with subs accepted. Although still young, MLS in the UK has reached an important benchmark. So from the 1990s where agents displayed their listings in other agents office windows and on their display walls in cross branding, finally the gap has been crossed where today agents own websites can show both their own and other agents data and truly provide clients with the 'instruct me and you get these other MLS agents too'

Czech Republic

In the Czech Republic, MLS - Multiple Listing Systems do exist via system names IMMO2, Czech Realtors operates in this MLS system for the Czech Republic. IMMO2 is officially associated with many realtors across the Europe and lawfully use the trademarked term "IMMO2" (It means Immobilien or immovable at square). Czech Real Estate Agents cooperates via this page http://www.immo2.cz

Israel

The Israeli Multiple Listing Service is called Shiran. The MLS in Israel has been operating since 1990 mainly in the Jerusalem area. The system operates on a full exclusivity listing both for sale and for rent. The web site is www.shiran.co.il

Italy

In Italy there are many MLSs and it is possible to choose between a number of software enabling real estate agencies either to manage and share with others their properties or to syndicate their listings on the web, or both the two things. A famous MLS is Tuttocasa.gest

Although many countries are lacking regulations regarding real estate transactions, lately there are attempts to align with those in developed markets.

North America

In North America, 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.

Canada

In Canada, the national MLS is a cooperative system for the 98,000+ members of the Canadian Real Estate Association
Canadian Real Estate Association
The Canadian Real Estate Association represents over 100,000 Realtors across Canada.The Association owns the Multiple Listing Service or MLS trademark and the Realtor trademarks in Canada. Local real estate Boards or Associations operate a local data base under a licensing agreement with the...

 (CREA), working through Canada's 101 real estate boards and 11 provincial/territorial associations.

The Real Estate Board of Greater Vancouver
Real Estate Board of Greater Vancouver
The Real Estate Board of Greater Vancouver , founded in 1919, is the third largest real estate board in Canada with 9400 Realtors.-History:* 1888 - first real estate board in Canada, formed in Vancouver* 1919 - Vancouver Real Estate Exchange formed...

 (REBGV) claims to have pioneered the first MLS in Canada.

A publicly accessible website (at realtor.ca, formerly mls.ca) allows consumers to search an aggregated subset of each participating board's MLS database of active listings, providing limited details and directing consumers to contact a realtor for more information.

CREA has come under scrutiny and investigation by the Competition Bureau and litigation by former CREA member and real estate brokerage Realtysellers (Ontario) Ltd., for the organization's control over the Canadian MLS system. In 2001, Realtysellers (Ontario) Ltd., a discount real-estate firm was launched that reduced the role of agents and the commissions they collect from home buyers and sellers. The brokerage later shutdown and launched a $100million lawsuit against CREA and TREB, alleging that they breached an earlier out-of-court settlement that the parties entered into in 2003.

United States

The largest MLS in the United States is currently the Washington, DC region's Metropolitan Regional Information Systems, Inc
Metropolitan Regional Information Systems
The Metropolitan Regional Information Systems, Inc. is the largest Multiple Listing Service in the United States. As of mid-July 2009, it serves 51,171 real estate professionals in Baltimore-Washington Metropolitan Area including Maryland, Washington DC, Northern Virginia, and parts of West...

 (MRIS) covering Washington DC, most of Maryland (including the Chesapeake Bay counties) and suburban Virginia counties, and parts of West Virginia and Pennsylvania. As of 25 January 2010, it has about 49,140 active members, according to the public access sections of its website, although numbers vary according to when this data is accessed.

New York City

Although the other boroughs and Long Island have a well accepted MLS, MLS has never taken hold in Manhattan. A small group of brokers formed the Manhattan Association of Realtors and operate MLSManhattan.com. MLSManhattan has a small fraction of the total active inventory in Manhattan. The Bronx Manhattan North MLS also offers coverage in Northern Manhattan. It too has failed to acquire widespread adoption by brokers.

The prevalent database is operated by the Real Estate Board of New York
Real Estate Board of New York
Real Estate Board of New York was formed in 1896 as the first real estate trade association in the state. The purpose of the board was to "facilitate transactions in real estate, such as buying, selling, leasing, mortgaging, and insuring of property and other business pertaining thereto."Today the...

 (REBNY), a non-Realtor entity that seceded from the National Association of Realtors in 1994.
REBNY operates a database called RLS which stands for REBNY Listing Service. A predecessor of RLS was marketed as R.O.L.E.X (REBNY Online Listing Exchange), before Rolex Watches claimed trademark infringement.

Like MLS, RLS has under contract, sold and days on market data, and houses rental listings as well. There is a database, which in 2011, was slated to be converted to the more familiar RETS standard in January 2012. The RLS gateway is populated by several private databases that include RealtyMX (RMX), Online Residential (OLR) and Realplus, another proprietary database available to Manhattan Brokers. These databases exchange data continually effectively creating several separate systems with essentially similar data. Another vendor, Klickads, Inc D/B/A Brokers NYC, owned by Lala Wang sued in 2007 to be included in the list of firms permitted to participate in the Gateway.

Seriously committed Manhattan brokerages are members of REBNY, and thus one may find the vast majority of updated and valid listings in Manhattan are represented by RLS. The REBNY RLS requires all listings to be entered and disseminated within 24 hours (Until 2007 72 Hours to accommodate agencies without weekend data entry)

Policies on sharing MLS data in the USA

The National Association of Realtors
National Association of Realtors
The National Association of Realtors , whose members are known as Realtors, is North America's largest trade association. representing over 1.2 million members , including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries...

 (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
Internet Data Exchange
An Internet Data Exchange is a real estate property search site which allows the public to conduct searches of approved Multiple Listing Service properties in a certain area.Site users generally gain the benefit of anonymous property searching and review...

. NAR has an ownership interest in Move Inc., 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
National Association of Realtors
The National Association of Realtors , whose members are known as Realtors, is North America's largest trade association. representing over 1.2 million members , including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries...

 over NAR's policy which 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 applied to commercial entities which are also licensed 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. NAR has revised its policies on allowing access on web sites operated by member brokers and others to what might be considered as proprietary data.

The case was settled in May 2008, with NAR agreeing that Internet brokerages would be given access to all the same listings that traditional brokerages are.

See also

  • Real estate trends
    Real estate trends
    Real estate trends is a generic term used to describe any consistent pattern or change in the general direction of the real estate industry which, over the course of time, causes a statistically noticeable change...

  • Pocket listing
    Pocket listing
    A pocket listing is a real estate industry term used in United States which denotes a property where a broker holds a signed listing agreement with the seller, whether that be an "Exclusive Right to Sell" or "Exclusive Agency" agreement or contract, but where it is never advertised nor entered...

     (or exclusive listing)
  • Commercial Information Exchange
    Commercial Information Exchange
    A Commercial Information Exchange is an Internet-based commercial property listing service that is operated by a local association to serve the local market. A CIE is the commercial real estate equivalent of the residential Multiple Listing Service...


External links and references

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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