MLS Rules Revision: Photo Required Upon Release to Active

The HIS Board of Directors has revised the Rules and Regulations as they relate to listing photo requirements.

To release a listing to Active (A) status, there must now be at least one property photo attached to the listing record.

Listings in Preview (P) status remain exempt from the photo requirement.

What is changing?

Previously, MLS participants were allowed one business day following the release of a listing to active status to submit a property photo.

This rule change prevents listings from being distributed and displayed on external sites without photos, as well as reduces the number of listings in the MLS without photos.

The 30-day availability of the Preview status, which is exempt from the photo requirement, provides ample opportunity to prepare a listing for release to Active.

Review rule changes in detail

To review an annotated version of the updated MLS Rules and Regulations, click here.

Property photo reminders

Please remember that listing photos should depict the property for sale and its “immediate vicinity.” Photos intended to sell a general lifestyle (i.e. erupting volcanoes, surfers, tropical fruit baskets) should be avoided. As a rule of thumb, all images should be of, or visible from, the property.

The specific language can be found in Section 3.05(b).

For example, if there is only one photo attached to the listing, and if there is a structure on the property, that one photo should be of the front view of the structure.

Finally, as Section 3.05(b) goes on to explain, listing property photos may not include:

• Marketing or promotional messages
• Contact information
• ‘For Sale’ signs
• Pictures of persons

Questions?

You can download a copy of these updated MLS Rules and Regulations, which are also always linked on the REsearch login page for easy reference.

If you have questions, please contact us!

Top Seven MLS Rules

Spring is here, and it’s a great time to review how to keep your listings clean and clear of any pesky potential problems!

We’re sharing the most common MLS rule violations that we’ve seen recently. Though they are always promptly remedied, avoiding processing fees, these are the ways to ensure smooth sailing from day one!

1. Stay clear of calls to action.

Not all verbs are bad, but public remarks are best when they focus on the property for sale, rather than telling the reader what to do. Please avoid directives to “call me” or “call your REALTOR®” and let the property speak for itself.

2. Cut out contact information.

Though it’s a basic rule, it bears repeating: please don’t include contact information in your property description or any client- or public-facing field. We discourage any contact details, whether for listing agents, owners, or real estate service providers.

3. Disclose leasehold up front.

If your listing is leasehold, the public remarks must begin with the phrase, “This is a leasehold property.” Similarly, if your listing has shared, fractional, or timeshare ownership, that must be disclosed in the first sentence of the public remarks.

4. Don’t forget the photos.

A picture is worth a lot of words. And at least one picture is required for every listing. While it’s best to have a photo when a listing goes active, you must add one within 24 hours once released. No photo yet? Consider using “Preview” status, which provides up to a month to prepare a listing.

5. Keep people out of the picture.

When it comes to listing photos or videos, the property should be the star of the show. Photos and videos must not contain “for sale” signs, nor people. We understand that people on a crowded beach visible from the property may be hard to avoid, but definitely steer clear of “lifestyle shots” of surfers or hula dancers.

6. Use unbranded virtual tours.

Virtual tours, from video slideshows to immersive 3-D presentations, are more popular than ever. They’re sure to draw buyers’ attention, so please make sure they don’t contain branding or other information beyond details about the property. Most tour providers give you both unbranded and branded video links.

7. Mind your URLs.

Secondary to what’s in your video is where you host it. The web address cannot identify a broker or agent. Also, YouTube cannot be used as a video host due to the attribution and advertising on the platform. Your video tour provider should be able to help. You can also use Vimeo (with certain settings), or host with HIS

Flashback: Tech Expo Rule Review

Too much reading? Check out this video from last year’s Joint Tech Expo, “DMCA, ADA, and the Clear Cooperation Policy.” The last seven minutes features a “lightning round” reviewing the top MLS rule violations.

If you have questions, please contact us!

2021 MLS Rules & Regulations Update

The Board of Directors has adopted changes to the Rules and Regulations of our MLS, last updated in January.

These rule revisions are mandatory changes set by the National Association of REALTORS® and must be adopted by all NAR-affiliated MLSs, including Hawaii Information Service.

NAR’s MLS policies are established in its Handbook on Multiple Listing Policy, revised at least annually. How these latest changes are reflected in our rules is explained below.

Listing Accuracy & Corrections

The first change expands what is required for listings submitted to the MLS, adding that “participants and subscribers are required to submit accurate listing data and required to correct any known errors.”

Fair Housing Act

In alignment with NAR’s continued emphasis on the importance of the Fair Housing Act, our rules have been updated to note that “participants and subscribers may report alleged violations of fair housing law.”

Rule Enforcement

Our rules now establish that reports of rule violations must be kept confidential, which was already our practice.

NAR has also laid out specific guidance on how many “administrative sanctions” can be placed on an MLS subscriber or participant before a required hearing.

Please note that notices of rule violations are not “administrative sanctions.” Sanctions are more serious impositions of discipline, such as suspensions or terminations of service, processing or retroactive fees, and required attendance of orientation, courses, or seminars.

For more information, please review Section 13.05.4 (Consequences of Repeated Violations) and Section 14.01 (Authority to Impose Discipline) of the MLS rules.

Review Rule Changes in Detail

To review an annotated (redline) version of the updated MLS Rules and Regulations, click here.

You can also download a copy of these updated MLS Rules and Regulations, which are also always linked on the REsearch login page for easy reference.

If you have questions about rules, or would like to report a rules issue, please send an email to rules@hiinfo.com!

Updated MLS Rules & Regulations

The Board of Directors has adopted changes to the Rules and Regulations of our MLS, last updated in March 2020.

Changes include requiring disclosure of fractional or shared ownership at the beginning of the public remarks, and changing the letter representing expired listings from ‘E’ to ‘X’.

Fractional/Shared Ownership Listings

The most substantive change involves requiring that fractional or shared ownership listings include the phrase “This is a fractional/shared ownership listing” at the beginning of the public remarks.

Last year, to ensure compliance with Hawaii state law (§16-99-11(2)(d)) the rules were revised to require a similar disclosure for leasehold listings. We are now extending this requirement for fractional and shared ownership listings as well.

This change is intended to address the limited display options on public real estate portals, where listings often cannot prominently display a property’s tenure. In the case of leasehold, fractional, or shared ownership listings, these properties may appear to be priced out of line with conventional listings.

By requiring the disclosure at the beginning of the public remarks, this information is presented prominently and will be less likely to be truncated by text length limitations on real estate portals.

Expired Listing Designation

The only other change in this revision of the MLS rules is updating the letter used to designate an expired listing. An expired listing is displayed in REsearch as being in “X” status, not “E” status.

Review Rule Changes in Detail

To review an annotated version of the updated MLS Rules and Regulations, click here. The specific changes are also illustrated below:

Section 3.12. Required listing elements. The listing broker shall include the following elements in each listing record when submitting it, so that potential cooperating brokers will have advance, unambiguous notice of them. […]

j. Disclosure that the property is a leasehold property, if applicable, in the public remarks. For all leasehold property listings, the listing broker must begin the public remarks with the following phrase: “This is a leasehold property.”

k. Disclosure that the property has fractional or shared ownership, if applicable, in the public remarks. For all property with fractional or shared ownership, the listing broker must begin the public remarks with the following phrase: “This property has fractional or shared ownership.” 

Article II Definitions and usage. These terms have the meanings given to them in this Article II. Other terms may be defined elsewhere in these rules. […]

“Status” means the listing’s status with regard to pending escrow or purchase agreement, availability for showing, and expiration of the listing record on the service’s system. The following statuses have the meanings given to them here: […]

XE/ExpiredThe listing has automatically expired as a result of reaching the expiration date entered on it. The property is not available for showings. Only Active and Temporarily Withdrawn listings automatically expire. 

You can download a copy of these updated MLS Rules and Regulations, which are also linked on the REsearch login page for easy reference. If you have questions, please contact us!

Updated MLS Rules & Regulations

The Board of Directors has adopted changes to the Rules and Regulations of our MLS, last updated in March 2019.

Changes effective May 1, 2020 include implementing NAR’s Clear Cooperation Policy, requiring status changes within one business day, and requiring disclosure of Leasehold status at the start of public remarks.

Summary of Changes

The changes cover three main topics:

1. NAR’s Clear Cooperation Policy

All MLSs are required to adopt this policy, which effectively requires that any property that is marketed to the public be listed in the MLS within one business day. You can review our introduction to this policy from earlier this month.

2. Status Changes Required Within One Business Day

The Clear Cooperation Policy sets a one-business-day deadline to list a property that’s being publicly marketed. To reduce confusion over different deadlines for different actions, and to ensure that our members always have the most current and accurate information available, all status changes must also be reported in the MLS within one business day.

3. Disclosure of Leasehold Status Required at Beginning of Public Remarks

In January, to ensure compliance with Hawaii state law, we introduced a feature wherein a Leasehold property listing would have the phrase, “This is a Leasehold property,” inserted at the beginning of its public remarks. This rule change makes this disclosure a requirement.

Review Rule Changes in Detail

To review an annotated version of the updated MLS Rules and Regulations, click here.

The sections specific to the Clear Cooperation Policy are as follows:

Article III Listing procedures.

Section 3.00. Clear cooperation. Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS Participants. Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, brokerage website displays (including IDX and VOW), digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public.

NOTE: Exclusive listing information for required property types must be filed and distributed to other MLS Participants for cooperation under the Clear Cooperation Policy. This applies to listings filed under Article III and listings exempt from distribution under Section 3.03 of the Rules, and any other situation where the listing broker is publicly marketing an exclusive listing that is required to be filed with the service and is not currently available to other MLS Participants. […]

Section 3.03. Exempted listings. If the seller refuses to permit a required listing to be disseminated by the service, the participant may take the listing as an office exclusive, provided the seller shall sign the service’s approved “Certification to Withhold from MLS” form or another written certification requesting the listing to be withheld from MLS. The listing broker shall deliver to the service the Certification to Withhold from MLS form, signed by the listing broker certifying that the listing broker provided the form to the seller, and the seller’s written certification (whether on the service’s form or in another form chosen by the seller), signed by the seller within the time specified as the time for submission of required listings.

NOTE: MLS Participants must distribute exempt listings within (1) one business day once the listing is publicly marketed. See Section 3.00 Clear Cooperation. Note that direct promotion of the listing between the brokers and licensees affiliated with the listing brokerage, and one-to-one promotion between these licensees and their clients, is not considered public marketing.

The sections specific to timely updates are as follows:

Section 3.07. Time of submission. The participant must submit a required listing within one (1) business day after execution of the contractual agreement, unless the participant publicly markets the listing in which case it must be submitted in accordance with Section 3.00.

Section 3.15. Change of status of listing. The listing broker must submit all status changes, including change in list price or terms, pending sale, withdrawal, or extension, to the service within one (1) business day of the time they become effective.

Section 5.11. Reporting resolutions of contingencies. The listing broker must submit notice to the service that a contingency on a listing record has been fulfilled or renewed, or the agreement cancelled, by putting the listing back into an active status according to the service’s “back-on-market” procedure, if the listing agreement has not expired. This notice is due within one (1) business day of the time the change becomes effective.

Section 5.12. Reporting cancellation of pending sale. The listing broker must submit notice to the service of the cancellation of any pending sale and reinstate the subject listing immediately according to the service’s “back-on-market” procedure. This notice is due within one (1) business day of the time the change becomes effective.

And sections specific to Leasehold property disclosure are as follows:

Section 3.12. Required listing elements. The listing broker shall include the following elements in each listing record when submitting it, so that potential cooperating brokers will have advance, unambiguous notice of them. […]

j. Disclosure that the property is a leasehold property, if applicable, in the public remarks. For all leasehold property listings, the listing broker must begin the public remarks with the following phrase: “This is a leasehold property.”

These updated MLS Rules and Regulations will be posted to the REsearch login page for easy reference. If you have questions, please contact us!

Introducing the Clear Cooperation Policy

The Hawaii Information Service Board of Directors, under a mandate from the National Association of REALTORS® (NAR) and with the guidance of its MLS attorneys, is preparing to approve amendments to its MLS Rules & Regulations to reflect NAR’s “Clear Cooperation Policy.”

These changes, made to address off-market listings and the marketing of them, are being adopted by MLSs across the country. While we will soon distribute and publish our revised rules, effective May 1, 2020, this email will help introduce you to the policy and answer the most common questions.

Summary

NAR adopted the Clear Cooperation Policy (also known as MLS Policy Statement 8.0) at its annual meeting in November of last year. The policy requires properties for sale to be listed in the MLS once they are being marketed to the public.

What do these changes mean, in one sentence?

Once a property is being publicly marketed, it must be made available to other members of the MLS within one business day, unless a “certificate to withhold” is signed by the seller.
What qualifies as public marketing?

Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, brokerage website displays (including IDX and VOW), social media, digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public.

Does this policy prohibit office exclusives?

No. “Office exclusive” listings are an important option for sellers concerned about privacy and wide exposure of their property being for sale. In an office exclusive listing, direct promotion of the listing between the brokers and licensees affiliated with the listing brokerage, and one-to-one promotion between these licensees and their clients, is not considered public advertising.

Common examples include divorce situations and celebrity clients. It allows the listing broker to market a property among the brokers and licensees affiliated with the listing brokerage. If office exclusive listings are displayed or advertised to the general public, however, those listings must also be submitted to the MLS for cooperation.

Does the policy require listings to be submitted to the MLS if they are advertised to a select group of brokers outside the listing broker’s office?

Yes. “Private listing networks” that include more brokers or licensees than those affiliated with the listing brokerage qualify as public advertising under Policy Statement 8.0. Listings shared in multi-brokerage networks by participants must be submitted to the MLS for cooperation.

Does a listing in ‘Preview’ (‘Coming Soon’) status meet the cooperation requirements of the policy?

Yes, as this pre-marketing solution shares listing data with all MLSs participants and subscribers prior to a listing going active. Listings in ‘Preview’ status are exempt from the photo requirement and the 72-hour showing request requirement. However, listings in ‘Preview’ status cannot be publicly marketed, and listings can only be in ‘Preview’ status for 30 days before going ‘Active,’ or they will be automatically withdrawn.

More questions? We have answers!

Even when adopted by the Board of Directors, the Clear Cooperation Policy does not go into effect until May 1, 2020. As we approach that date, we will be providing additional information on the policy itself, our specific rule changes, and how it may affect our valued members. We will also answer your questions, and provide a summary of the answers, in a future bulletin!

Please don’t hesitate to contact us with your questions and concerns. You can email us at rules@hiinfo.com, or just reach out to customer support, and we’ll make sure you receive an answer.

Listing Photo Licensing & Ownership Reminder

This is a periodic reminder to members that photo ownership and licensing are important considerations when listing a property in the MLS.

Too busy to read? We recommend that you watch this video from the National Association of REALTORS® covering “Copyright Best Practices for Listing Photos.”

---

Here’s a resolution that’s easy to keep: make sure that you own or properly license the photos used in your listings.

Copying photos from other listings, or taking them from the web, could lead to copyright claims and payment demands from the entities that own them. There were a few disputes last year, and while they were resolved amicably, you can avoid the hassle by taking extra care at the outset!

To ensure that you’re in the clear, you can hire a professional photographer. In fact, photographers that specialize in real estate will be more likely to understand your needs, as well as the practical and legal aspects of photo ownership, licensing, and use in the MLS and elsewhere. And if you engage a photographer that is new to the industry, NAR even provides sample agreements that you can use with them.

(Taking your own original photos, of course, is another way to ensure ownership and copyright is clear.)

It’s important to note that these issues extend beyond listing photos in the MLS. They apply to photos used on agent and broker websites, in promotional materials, and elsewhere. A simple rule of thumb? “If you don’t know where the photo came from, don’t use it.”

Licensing and Copyright in the MLS Rules:

As subscribers to the MLS and users of the REsearch system, you are bound by the MLS Rules and Regulations. Article VII covers licensing and copyright, indemnifying HIS from claims of copyright infringement. This section also includes sample language that you can use when engaging a photographer to take listing photos.

Our rules document was last reviewed and updated by the HIS Board of Directors in October 2018, and is worth reviewing periodically:

http://hawaiiinformation.com/REsearch/IDX/mlshawaii/forms/MLSRules.pdf

Additional Reading:

• Who Owns Your Property Photos? (NAR)
• Focus on Listing Photo Copyright (REALTOR® AE Magazine)
• Copyright Essentials (Getty Images)
• Take Your Own Photos and Avoid Legal Action (TREND)

We hope this periodic reminder helps you steer clear of the potential pitfalls of listing photo ownership and licensing. If you still have questions, please don’t hesitate to contact us!

Subscriber License and Access Agreement Update

We would like to first thank you for your assistance as we updated our copyright terms earlier this year through a one-time click-through acknowledgement in REsearch. We would now like to notify you that this change has also been incorporated into our standard Subscriber License and Access Agreement (SLAA).

Our updated SLAA is now in use for new members, and is available online (linked on the REsearch log in page) for your review:

Review the SLAA

Again, this amendment does not change your rights as they pertain to original text, photographs, or videos in your listings. It applies only to the compilation (the “selection, coordination, and arrangement” of data) in the MLS. You can find more information here.

If you accept the amended SLAA, no action is required. If not, you may contact us to request termination of your service.

Friendly reminder: If your office keeps local copies of our official forms to provide to new agents (including the SLAA and Exhibit C – Payment Agreement), please ensure you use the forms currently available online. We will be unable to process older versions of these forms.

Should you have questions about this SLAA update, please contact Diana Haraguchi, Membership Director, at (800) 628-3121, extension 172, if calling from the neighbor islands, or 599-4224, extension 172, if calling from Oahu.

Mahalo for your continued business!

VIDEO: Copyright Program Follow-Up

Nearly all members have agreed to the updated copyright terms in REsearch. Thank you! With the agreement deadline of March 1 coming up, we’re back with a quick update, and also answer a follow up question: “When does HIS assert copyright over listing data?” We explain how the SLAA determines which listings are included in our quarterly copyright filings.

For the full details on the copyright update, please click here:

https://hawaiiinformation.wordpress.com/2018/01/17/copyright-click-through-required-in-research/

Reminder: Steer Clear of Photo Copyright Challenges

Here’s an easy New Year’s resolution for real estate professionals: only use property listing photos that you took yourself or that you’ve secured the proper rights to use.

Copying photos from other listings, or taking them from the web (whether from real estate websites or any other online source), could lead to copyright claims and payment demands from the entities that own them.

The safest way to make sure that you’re safe, of course, is to take your own photos. But if you must hire a photographer to take photos for you, please make sure that you have secured all the rights needed in writing to use the images (in the MLS as well as for syndication for display on the web). NAR provides sample agreements that you can use.

Of course, these issues extend beyond listing photos to photos used on agent and broker websites, in promotional material, and elsewhere. The simple rule of thumb: “If you don’t know where the photo came from, don’t use it.”

MLS Rules Reminder

As subscribers to the MLS and users of the REsearch system, you are bound by the  MLS Rules and Regulations. Section VII covers licensing and copyright, indemnifying HIS from claims of copyright infringement. This section also includes sample language that you can use when engaging a photographer to take listing photos.

Our rules document was last reviewed and updated by the HIS Board of Directors in September 2016, and is worth reviewing periodically:

http://hawaiiinformation.com/REsearch/IDX/mlshawaii/forms/MLSRules.pdf

Image Owners Enforce Copyright

There is a whole industry built around acquiring and selling the rights to use images and threatening legal action and demanding settlements from anyone who uses them without permission. Photo licensing firms have sophisticated tools that allow them to scour the web (and even archived older versions of websites) to find their licensed images.

And under copyright law, the company or person who displays the photo or image on their website (regardless of who put it there) is the one liable for unauthorized use. This means the situation for Realtors gets exponentially more complicated if an unlicensed photo is uploaded to the MLS with a listing, and is then displayed on dozens of other real estate websites.

Learn More:

• Who Owns Your Property Photos? (NAR)
• Take Your Own Photos and Avoid Legal Action (TREND)
• Copyright Essentials: Using Imagery (Getty Images)

Retro camera icon by Tinashe Mugayi from the Noun Project.