Tip of the Week: MLS Rules Changes (Take note if you sell Fractional Ownership Properties)
It’s that time of year again. An updated version of the ECAR MLS rules has been posted. What’s changed this year?
There have three significant changes to the ECAR MLS rules:
- The definition of List Date was added. The List Date may now be the date the listing is activated in the MLS. (Appendix A)
- Compensation was added to the Auction property type, which changes these listings from Information Exchange to MLS listings, subject to the Residential MLS Rules. (Section 1 Note 5)
- Fractional Ownership Disclosure added. (Section 1 Note 8)
Most of these are fairly self-explanatory, except the last one.
Based on more than a few complaints, the ECAR MLS Committee and Board of Directors approved the requirement to publicly disclose that Fractional Ownership listings are just that.
Starting today, all Fractional Ownership listings must state, at the beginning of the Remarks field, that the property is a Fractional Ownership. All you have to do is put the phrase “Fractional Ownership” at the beginning of the public field.
Why do you have to do this?
It’s been noted that on numerous occasions, the general public misunderstands these listings, particularly when they’re searching on public websites such as Realtor.com or Zillow. These third party sites do not always have the means to differentiate between a condo for sale, and a condo being sold fractionally. So the public is seeing a condo in Destin, on the gulf or pass, for only $50,000. Imagine their excitement! Then their frustration when they find out they can only purchase use of the property part time. Thus the new disclosure requirement.
While the new rule takes effect immediately, we will not send out any citation notices for listings in violation of the new rule until December 1, 2016. In the meantime, we’ll be reaching out the brokerages that have active or pending listings in the Fractional Ownership property type to make sure they’re aware of the change to the rules.
Questions? Call us at 850-244-2411 or email firstname.lastname@example.org.
Susan Beck, MLS Director
Emerald Coast Association of Realtors
Fort Walton Beach, FL
Santa Rosa Beach, FL