Commission Rule 6.10.C states that brokerage firms and brokers are responsible for ensuring that all advertising is accurate and complies with copyright laws and other applicable laws and regulations. This includes the information about a property that is entered into a property database like a multiple listing service (“MLS”). If a broker relies on an assistant to create advertising materials, or to enter the property data into the MLS on their behalf, the broker is still responsible for the accuracy of the information.

Depending on the circumstances, a cooperating broker may have no other reference point for property features, inclusions or exclusions, utilities, or sales conditions than the information that is entered into the MLS. The Commission receives many complaints about listing brokers who are unresponsive to inquiries from other real estate brokers about properties that they have listed for sale. It is not uncommon for a broker representing a buyer to have to rely on the information that was entered into the MLS to write a purchase offer. We receive complaints from sellers that have accepted offers only to discover later that they had agreed to including property they never anticipated including because it was erroneously included in the MLS entry. Because the property was an inclusion in the MLS entry, it was subsequently included in the purchase contract. The seller missed the inclusion in the purchase contract, as did their broker. We also receive complaints from buyers because they will rely on the information in the MLS regarding different inclusions or property features, only to discover that the information was wrong. The prevailing sentiment from the buyers is that they would have never purchased the property if it had been accurately described in the MLS. One example is the buyer who purchases a condominium that was advertised as having a deeded parking space only to find out that there is no parking space. Another common complaint from buyers is that the property was not listed as being in an HOA, then once under contract, the buyer finds out differently.

An additional issue that the Division regularly sees and hears about is the impact that inaccurate MLS information can have on property appraisals. When an appraiser searches for comparable properties to use in an appraisal, they are expected to analyze sales and listings. The information is expected to come from a reliable source, like the listing broker. It is preferable that the appraiser be able to speak to the broker about their listing, but we are often told that brokers are largely unresponsive to these types of requests. As a result, the appraisers look to the MLS to gather information about the properties and the sales data. Inaccurate data in the MLS increases the risk that the sold and listed properties used in the appraisal may not be the best and most comparable to the subject. This ultimately can affect the value conclusion.

While the Real Estate Commission understands that brokers can make mistakes and no one is perfect, please take the time to verify the information that is used to market your listings. Data entry errors and incorrect information can result in very significant issues and can have broad impacts.