CRMLS Rejects MLOS Policy Amid Concerns Over Clarity and Market Impact
Decision Not to Adopt the MLOS Policy
The California Regional Multiple Listing Service (CRMLS) recently announced it will not implement the Multiple Listing Options for Sellers (MLOS) policy. After conducting a “careful review and consideration,” CRMLS determined that its existing systems already meet the objectives intended by this new policy.
CRMLS’s Stance on Seller Choices and Clarity
In a statement to its users, CRMLS emphasized, “There is no need.” The organization indicated that the MLOS policy fails to offer additional options or choices for sellers and criticized it for being unclear and difficult to explain. Furthermore, CRMLS expressed concern that introducing such a policy would complicate processes for agents and brokers, leading to confusion.
Concerns About Marketplace Openness
CRMLS raised worries that the MLOS policy could reduce transparency in the real estate market, potentially favoring larger brokerages while disadvantaging smaller firms and consumers. The organization views this move as part of a broader initiative to circumvent the National Association of Realtors (NAR)’s Clear Cooperation Policy, which requires listings to be shared on an MLS within a day of public marketing.
Background on the MLOS Policy
CRMLS explained that the motivation behind the MLOS policy stems from pressure within the industry, particularly from powerful national brokerages advocating for changes to the Clear Cooperation Policy. In response to these interests, NAR developed the MLOS policy.
Current Listing Practices at CRMLS
The agency asserts that it already supports the core principles of the proposed regulation through its “active” listing status. This feature allows brokers to keep listings off the internet when requested by their clients. Conversely, the proposed MLOS policy includes a new category for “delayed marketing exempt listings,” which could be available on MLS and virtual office website feeds but hidden from IDX and other large platforms.
Ineffectiveness and Confusion Concerns
CRMLS argues that the introduction of the MLOS policy is not only redundant but could also exacerbate confusion among homebuyers. Despite the availability of listings via VOW feeds to major portals such as Zillow and Redfin, these listings would not appear on approximately 30,000 CRMLS IDX websites or Realtor.com, which does not utilize VOW. This discrepancy may force buyers to navigate numerous sites to access comprehensive listing information.
Administrative Impact and Future Directions
The organization cautioned that implementing the MLOS policy might lead to “increased compliance confusion,” introduce overlapping statuses, and create unnecessary hurdles for daily business operations. In light of these concerns, CRMLS is exploring possible enhancements to its existing systems that prioritize transparency while respecting seller privacy.
A Commitment to Cooperation and Consumer Advocacy
CRMLS concluded its statement by reinforcing its commitment to transparency in real estate operations, opposing private listings and information silos. The organization called for stability in regulations to allow agents and brokers to focus on serving their clients effectively.
Leadership Perspectives
In a previous commentary, CRMLS CEO Art Carter expressed strong support for the Clear Cooperation Policy, asserting that a broker cooperative must offer valuable services not only to its subscribers but also to clients and stakeholders. He emphasized that listing platforms should not dictate the rules governing cooperation among agents.