What is it?
Compliance is the first point of contact for those reporting inaccurate information found on the MLS. Our Compliance Analysts work closely with listing agents, brokers, Associations, and Boards to process reports of potential violations. They investigate, clarify, and correct data inaccuracies and enforce MLS rules.
The Benefits of SWLAR Compliance
The SWLAR Compliance Department is essential to maintaining legal and ethical integrity in transactions, protecting both agents and clients from risks, and ensuring that the industry operates transparently and fairly.
Here are some key reasons why compliance is so crucial:
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Protecting Client Interests
Real estate agents and brokers have a fiduciary duty to act in the best interests of their clients. Compliance with MLS Rules protects clients from misinformation, fraud, and discrimination. By adhering to these standards, agents build trust and ensure clients receive accurate and fair treatment throughout the transaction process.
Mitigating Legal Risks
Non-compliance can lead to legal actions, fines, license suspension, or revocation, which can harm an agent’s or agency’s reputation. Compliance helps agents and brokers avoid lawsuits, penalties, and other legal repercussions that may arise from violating MLS Rules.
Maintaining Professional Integrity and Reputation
Compliance reflects the commitment of real estate professionals to uphold ethical standards. Operating within the boundaries of MLS Rules helps maintain a positive reputation, which is vital for building long-term client relationships and earning referrals.
Adapting to Regulatory Changes
MLS Rules frequently change to address evolving market conditions, fair housing practices, and consumer protection standards. A commitment to compliance ensures that agents and firms are up-to-date with these changes, reducing the likelihood of inadvertent violations and ensuring continued alignment with best practices.
Promoting Fair and Equal Treatment
MLS Rules align with common fair housing laws. Accordingly, adherence to the MLS Rules promotes non-discriminatory practices in the industry. These regulations help prevent discrimination based on race, religion, gender, disability, or other protected characteristics, fostering an inclusive housing market that benefits both the community and the real estate industry as a whole.
Building Public Confidence in the Real Estate Industry
When real estate professionals adhere to MLS Rules, it enhances the public’s trust in the industry. Compliance reassures clients that transactions are handled with professionalism and transparency, creating a positive image that benefits agents, firms, and the industry overall.
Top Compliance Violations
- Late Listing Entry – Failing to enter a listing within the required timeframe (often 1–2 business days of marketing or signed agreement).
- Missing/Incorrect Photos – No primary photo uploaded, or photos that include branding, contact info, or watermarks.
- Unauthorized Public Remarks – Including showing instructions, gate codes, bonuses, or personal opinions in public remarks.
- Incorrect Listing Status – Not updating the listing to pending, sold, or withdrawn in a timely manner.
- Entering Listings Without Written Agreement – Posting a listing without a valid, signed listing agreement.
- Advertising Another Broker’s Listing Without Permission – Promoting another broker’s listing without written consent.
- Showing Instructions in Public Remarks – Should always be in agent remarks only.
- Incorrect Property Types or Features – Misclassifying property type, features, or lot size intentionally or carelessly.
- Manipulating DOM (Days on Market) – Canceling and relisting to reset DOM is often against MLS rules.
- Unlicensed Assistants Accessing MLS – Allowing unlicensed users to access or use the MLS under a licensed agent’s credentials.