Section 1. LISTING PROCEDURES:

Listings of real or personal property of the following types, which are listed subject to a real estate broker’s license, and which are located within the territorial jurisdiction of the Association of REALTORS taken by Participants on an exclusive right to sell listing form or exclusive agency, * shall be electronically entered into the Multiple Listing Service after all necessary signatures of seller(s) have been obtained (this includes the Designated Broker’s signature). Listings may not be entered into the Multiple Listing Service prior to obtaining all signatures.

Single family homes for sale or exchange

Vacant lots and acreage’s for sale or exchange

Multi-family residential buildings for sale or exchange

Commercial or Industrial properties for sale or exchange

(*) EXCLUSIVE AGENCY LISTINGS will be accepted for printing as long as a disclosure of exemption is noted on both the listing contract, the Computerized Data Input Form, and the appropriate fields in the Computerized Data System.

(NOTE 1:) The Multiple Listing Service shall not require a Participant to submit listings on a form other than the form the Participant individually chooses to utilize provided the listing is of a type accepted by the Service. However, the Multiple Listing Service, through its legal counsel:

May reserve the right to refuse to accept a listing form which fails to adequately protect the interest of the public and the Participants.

Assure that no listing form filed with the Multiple Listing Service establishes, directly or indirectly, and contractual relationship between the Multiple Listing Service and the client (buyer or seller).

The Multiple Listing Service shall accept exclusive right to sell listing contracts and exclusive agency listing contracts, and may accept other forms of agreement which make it possible for the listing broker to offer cooperation and compensation to the other Participants of the Multiple Listing Service acting as sub-agents, buyers agents, or facilitators.

The listing agreement must include the seller’s written authorization to submit the agreement to the Multiple Listing Service.

The different types of listing agreements include:

exclusive right to sell

exclusive agency

open

net

The Service may not accept net listings because they are deemed unethical and, in most states, illegal. Open listings are not accepted except where required by law because the inherent nature of an open listing is such as to usually not include the authority to cooperate and compensate other brokers and inherently provides a disincentive for cooperation.

The exclusive right to sell listing is the conventional form of listing submitted to the Multiple Listing Service in that the seller authorizes the listing broker to cooperate with and compensate other brokers.

The exclusive agency listing also authorizes the listing broker, as exclusive agency, to offer cooperation and compensation on a blanket unilateral basis, but also reserves to the seller the general right to sell the property on an unlimited or restrictive basis. Exclusive agency listings and exclusive right to sell listings with named prospects exempted should be clearly distinguished by a simple designation such as a code or symbol from exclusive right to sell listings with no names prospects exempted since they can present special risks of procuring cause controversies and administrative problems not posed by exclusive right to sell listings with no named prospects exempted. Care should be exercised to ensure that different codes or symbols are used to denote exclusive agency and exclusive right to sell listings with prospect reservations.

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TYPES OF PROPERTIES:

The following are some of the types of properties that may be handled through the service, including types described in the preceding paragraph that are required to be filed with the Service and other types that may be filed with the Service at the Participant’s option provided, however, that any listing submitted is entered into within the scope of the Participant’s licensor as a real estate broker:

Residential

Land & Lot

Multi- Family

Commercial/Industrial

Only Commercial leasehold property can be listed without land. This means that a mobile home listing must include land (real property) for sale.

Section 1.1 LISTINGS SUBJECT TO RULES AND REGULATIONS OF THE SERVICE:

Any listing taken on a contract to be filed with the Multiple Listing Service is subject to the Rules and Regulations of the Service upon signatures of the seller(s).

Section 1.2 DETAIL ON LISTINGS FILED WITH THE SERVICE:

The Computerized Data Input, of the listing when filed with the Multiple Listing Service by the listing broker, shall be complete and appropriate in every detail which is ascertainable as specified on the Computerized Data Input Format. All mandatory fields must be accurately filled in on the System or they will be deleted after fourteen (14) days.

Section 1.2(a) APPROPRIATE DATA FIELD ENTRIES:

The tax blank should be filled in with the last known tax amount and year unless unavailable. If information is unavailable, the field should be filled by the assessed rate for the city and county rather than an incorrect dollar amount. Tax Map, Group (with a sub map letter), Warranty Deed Book, Page and Parcel numbers are to be included. Any exclusive agency listing must be clearly noted as same by marking appropriate fields in the Computerized Data System. Listings for any properties that are zoned commercial may be listed in both commercial and one other property type. However, upon closing, one of the listings must be withdrawn and the other closed thereby insuring statistical information accuracy. Remarks and Directions fields shall not include firm names, agent names, telephone numbers, bonus/commission statements, or any references to owner condition (i.e. divorce, estate, out of state). These types of information must be entered in the designated data field or in the Addendum

Section 1.3 EXEMPTED LISTINGS:

If the seller refuses to permit the listing to be disseminated by the Service, the REALTOR may then take the listing (“office exclusive”) and such listing shall be made available upon request to the Service but not disseminated to the Participants.

Section 1.4 CHANGE OF STATUS OF LISTING:
Any change in listed price, expiration date, status change (other than expired) or other change in the original listing agreement, shall be made only when authorized in writing by the seller and shall be electronically filed with the Service. The change should be made immediately in the Computerized Data System.

Section 1.5 WITHDRAWAL OF LISTING PRIOR TO EXPIRATION:

Listings of property may be withdrawn from the Multiple Listing Service by the Listing Broker before the expiration date of the listing agreement provided notice is filed with the Service including a copy of the agreement, between the seller and the listing broker which authorizes the withdrawal.

Section 1.6 CONTINGENCIES APPLICABLE TO LISTINGS:

Any contingency, exclusion, or conditions of any term in a listing shall be specified and noticed to the Participants in the listing agreement and on the Computerized Data Input Form under Addendum.

Section 1.7 LISTING PRICE SPECIFIED:

The full gross listing price shall be stated in the listing contract and the Computerized Data Input Form. The listing price for leased properties shall be calculated by taking the monthly lease price for the first 12 (twelve) month period PLUS the Leasehold Buy-Out Cost. Compensation payment to be based on the total value of lease, not the listing price in the Multiple Listing Service.

Section 1.8 LISTING MULTIPLE UNIT PROPERTIES:

All properties which are to be or may be sold separately must have individual listing agreements as well as a listing agreement on the whole and must be entered on the Computerized Data the same way. When part of a listed property has been sold, proper notification should be given to the Multiple Listing Service in writing.

Section 1.9 NO CONTROL OF COMMISSION RATES OR FEES CHARGED BY PARTICIPANTS:

The Multiple Listing Service shall not fix, control, recommend, suggest, or maintain commission rates or fees for services to be rendered by Participants. Further, the Multiple Listing Service shall not fix, control, recommend, suggest or maintain the division of commissions or fees between cooperating Participants or between Participants and non-participants.

Section 1.10 EXPIRATION, EXTENSION, AND RENEWAL OF LISTINGS:

Listings filed with the Multiple Listing Service will automatically be removed from the compilation of current listings on the expiration date specified in the agreement, unless prior to that date the MLS receives notice that the listing has been extended or renewed. (Amended 11/01)

If notice of renewal or extension is received more than fourteen (14) days after the listing has been removed from the compilation of current listings, the extension or renewal will be published in the same manner as a new listing. Extensions and renewals of listings must be signed by the seller(s) and filed with the Service. (Amended 11/01)

Section 1.11 TERMINATION DATE ON LISTINGS:

Listings filed with the Service shall bear a definite and final termination date as negotiated between the listing broker and the seller.

Section 1.12 JURISDICTION:

Only listings of the designated types of property located within the jurisdiction of the Association of REALTORS are required to be submitted to the Service. Listings of property located outside the Association’s jurisdiction will be accepted if submitted voluntarily by a Participant, but cannot be required by the Service.

Section 1.13 LISTINGS OF SUSPENDED PARTICIPANTS:

When a Participant of the Service is suspended from MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics, Association Bylaws, MLS bylaws, MLS Rules and Regulations, or other membership obligations EXCEPT failures to pay appropriate dues, fees, or charges), all listings currently filed with the MLS by the suspended Participant shall, at the Participant’s option, be retained in the service until sold, withdrawn, or expired, and shall not be renewed or extended by the MLS beyond the termination date of the listing agreement in effect when the suspension become effective. If a Participant has been suspended from the Association (except where MLS Participation without Association membership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees, or charges, an Association MLS is not obligated to provide MLS services, including continued inclusion of the suspended Participant’s listing in the MLS compilation of current listing information. Prior to any removal of a suspended Participant’s listing from MLS, the suspended Participant should be advised in writing of the intended removal so that the suspended Participant may advise his clients.

Section 1.14 LISTINGS OF EXPELLED PARTICIPANTS:

When a participant of the Service is expelled from the MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics, Association Bylaws, MLS Bylaws, MLS Rules and Regulations, or other membership obligations EXCEPT failures to pay appropriate dues, fees or charges), all listings currently filed with the MLS shall, at the expelled Participant’s option, be retained in the Service until sold, withdrawn, or expired, and shall not be renewed or extended by the MLS beyond the termination of the listing agreement in effect when the expulsion became effective. If a participant has been expelled from the Association (except where MLS Participation without Association membership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees, or charges, an Association MLS is not obligated to provide MLS services, including continued inclusion of the expelled information. Prior to any removal of an expelled Participant’s listings from the MLS, the expelled Participant should be advised in writing of the intended removal so that the expelled Participant may advise his clients.

Section 1.15 LISTINGS OF RESIGNED PARTICIPANTS:

When a Participant resigns from the MLS, the MLS is not obligated to provide services, including continued inclusion of the resigned Participant’s listings in the MLS compilation of current listing information. Prior to any removal of a resigned Participant’s listings from the MLS, the resigned Participant should be advised in writing of the intended removal so that the resigned Participant may advise his clients.

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SELLING PROCEDURES:

Section 2. SHOWINGS AND NEGOTIATIONS:

Appointments for showings and negotiations with the seller for the purchase of listed property filed with the Multiple Listing Service shall be conducted through the listing broker except under the following circumstances:

the listing broker gives the cooperating broker specific authority to show and/or negotiate directly, or

after reasonable effort, the cooperating broker cannot contact the listing broker or his representative. However, the listing broker, at his option, may preclude such direct negotiations by the cooperating broker.

Section 2.1 PRESENTATION OF OFFERS IN WRITING:

The listing broker must make arrangements to present the offer as soon as possible, or give the cooperating broker a satisfactory reason for not doing so.

Section 2.2 SUBMISSION OF WRITTEN OFFERS:

The listing broker shall submit to the seller all written offers until closing unless precluded by law, government rule, regulation, or agreed otherwise in writing between the seller and listing broker. Unless the subsequent offer is contingent upon the termination of an existing contract, the listing broker shall recommend that the seller obtain the advice of legal counsel prior to acceptance of the subsequent offer.

Section 2.3 RIGHT OF COOPERATING BROKER IN PRESENTATION OF OFFER:

The cooperating broker (subagent or buyers agent) or his representative has the right to participate in the presentation to the seller or lessor of any offer he secures to purchase or lease. He does not have the right to be present at any discussion or evaluation of that offer by the seller or lessor and the listing broker. However, if the seller or lessor gives written instructions to the listing broker that the cooperating broker not be present when an offer the cooperating broker secured is presented, the cooperating broker has the right to a copy of the seller’s written instructions. None of the foregoing diminishes the listing broker’s right to control the establishment of appointments for such presentations.

Section 2.4 RIGHT OF LISTING BROKER IN PRESENTATION OF COUNTER-OFFER

The listing broker or his representative has the right to participate in the presentation of any counter-offer by the seller or lessor. He does not have the right to be present at any discussion or evaluation of a counter-offer by the purchaser or lessee (except when the cooperating broker is a subagent). However, if the purchaser or lessee gives written instructions to the cooperating broker that the listing broker not be present when a counter-offer in presented, the listing broker has the right to a copy of the purchaser’s or lessee’s written instruction.

Section 2.5 REPORTING SALES TO THE SERVICE:

Sales shall be reported immediately to the Multiple Listing Service by the listing broker unless the negotiations were carried on under Section 2 (a) or (b) hereof in which case the cooperating broker shall report, sending a copy to the listing broker within 24 hours after acceptance.

Section 2.6 REPORTING RESOLUTIONS OF CONTINGENCIES:

The listing broker shall report to the Multiple Listing Service within 24 hours that a contingency on file with the Multiple Listing Service has been fulfilled or renewed, or the agreement canceled. This includes exclusions of buyers, changes in bonus, etc.

Section 2.7 ADVERTISING OF LISTING FILED WITH THE SERVICE:

A listing shall not be advertised by any Participant, other than the listing broker, without the prior consent of the listing broker.

Section 2.8 REPORTING CANCELLATION OF PENDING SALE:

The listing broker shall report to the Multiple Listing Service the cancellation of any pending sale and the listing shall be reinstated immediately.

Section 3. REFUSAL TO SELL:

If the seller of any listed property filed with the Multiple Listing Service refuses to accept a written offer satisfying the terms and conditions stated in the listing, such fact shall be transmitted immediately to the Service and to all Participants using the Message function of the system.

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PROHIBITIONS:

Section 4. INFORMATION FOR PARTICIPANTS ONLY:

Any listing filed with the Service shall not be made available to any broker or firm not a Member of the MLS without the prior consent of the listing broker.

Section 4.1 “FOR SALE” SIGNS:

Only the “For Sale” signs of the listing broker may be placed on a property.

(a)No “For Sale” signs will be placed on property by agents for which he/she does not have an active WRITTEN AUTHORIZATION from the owner of the property.
(TN Code Annotated 1260-2-.12 ADVERTISING).

Section 4.2 “SOLD SIGNS”:

Prior to closing, only the “Sold” sign of the listing broker or their affiliate may be placed on a property, unless the listing broker authorizes the cooperating (selling) broker to post such a sign.

Section 4.3 SOLICITATION OF LISTING FILED WITH THE SERVICE: Participants shall not solicit listing on property filed with the Service unless such solicitation is consistent with Article 16 of the REALTORS Code of Ethics, its Standards of Practice, and its Case Interpretations.

Section 4.4   PROHIBITED FIELDS: In order to ensure policy consistency, the following data fields may not be printed on hand-outs, brochures, CMAs, listing detail sheets, or spreadsheets, and may not be displayed on internet sites:

1.               Commission Fields

Buyer’s Agent Commission

Facilitator Commission

Sub Agent Commission

Exclusive RTS

Exclusions

Bonus

Variable Rate

2.               Owners name

3.               List Date

4.               Expiration Date

5.               Addenda

6.               Showing Instructions

7.               Legal Descriptions

Deed Book

Page

Map

Group

8.               Update Date

9.               Business Name

10.           Possession

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DIVISION OF COMMISSIONS:

Section 5. COMPENSATION SPECIFIED ON EACH LISTING:

The listing broker shall specify, on each listing filed with the Multiple Listing Service, the compensation offered to other Multiple Listing Service Participants for their services in the sale of such listing. Such offers are unconditional except that entitlement to compensation is determined by the cooperating broker’s performance as the procuring cause of sale (or lease). The listing broker’s obligation to compensate any cooperating broker as the procuring cause of sale (or lease) may be excused if it is determined through arbitration that, through no fault of the listing broker and in the exercise of good faith and reasonable care, it was impossible or financially unfeasible for the listing broker to collect a commission pursuant to the listing agreement. In such instances, entitlement to cooperative compensation offered through the MLS would be a question to be determined by an arbitration hearing panel based on all relevant facts and circumstances including, but not limited to, why it was impossible or financially unfeasible for the listing broker to collect some or all of the commission established in the listing agreement; at what point in the transaction did the listing broker know (or should have known) that some or all of the commission established in the listing agreement might not be paid; and how promptly had the listing broker communicated to cooperating brokers that the commission established in the listing agreement might not be paid.

(NOTE 1:) In filing a property with the Multiple Listing Service of an Association of REALTORS, the Participant of the Service is making blanket unilateral offers of compensation of the other MLS Participants, and shall therefore specify on each listing filed with the Service, the compensation being offered to the other MLS Participants. Specifying the compensation on each listing is necessary because the cooperating broker has the right to know what his compensation shall be prior to his endeavor to sell.

The listing broker retains the right to determine the amount of compensation offered to other Participants (acting as subagents, buyers agents, or in other agency or nonagency capacities defined by law) which may be the same or different.

This shall not preclude the listing broker from offering any MLS Participant compensation other than the compensation indicated on any listing published by the MLS provided the listing broker informs the other broker in writing in advance of their producing an offer to purchase and provided that the modification in the specified compensation is not the result of any agreement among all or any other Participants in the Service. Any superseding offer of compensation must be expressed as either a percentage of the gross sales price or as a flat dollar amount.

The Association Multiple Listing Service shall not have a rule requiring the listing broker to disclose the amount of total negotiated commission in his listing contract, and shall not publish the total negotiated commission on a listing, which has been submitted, to the MLS by a Participant. The Association Multiple Listing Service shall not disclose in any way the total commission negotiated between the seller and the listing broker.

The compensation specified on listing filed with the Multiple Listing Service shall appear in one of two forms. The essential and appropriate requirement by an Association Multiple Listing Service is that the information to be published shall clearly inform the Participants as to the compensation they will receive in cooperative transactions unless advised otherwise by the listing broker in writing in advance of their producing an offer to purchase. The compensation specified on listings published by the MLS shall be shown in one of the following forms:

By showing a percentage of the gross selling price.

By showing a definite dollar amount.

The Multiple Listing Service shall not include offers of cooperation that do not include an offer of compensation expressed as a percentage of the gross selling price or as a definite dollar amount nor shall they include general invitations by listing brokers to other Participants to discuss terms and conditions of possible cooperative relationships.

(NOTE 2:) The listing broker may, from time to time, adjust the compensation offered to other Multiple Listing Service Participants for their services with respect to any listing by advance published notice to the Service so that all Participants will be advised.

(NOTE 3:) The Multiple Listing Service shall make no rule on the division of commissions between Participants and nonparticipant. This should remain solely the responsibility of the listing broker.

Section 5.1 PARTICIPANT AS PRINCIPAL:

If a Participant or any licensee (or licensed or certified appraiser) affiliated with Participant has any interest in property, the listing of which is to be disseminated through the Multiple Listing Service, that person shall disclose that interest when the listing is filed with the Multiple Listing Service, and such information shall be disseminated to all Multiple Listing Service Participants.

Section 5.2 PARTICIPANT AS PURCHASER:

If a Participant or any licensee (including licensed and certified appraisers) affiliated with a Participant wishes to acquire an interest in property listed with another Participant, such contemplated interest shall be disclosed in writing to the listing broker not later than the time an offer to purchase is submitted to the listing broker.

Section 5.3 DUAL OR VARIABLE RATE COMMISSION AGREEMENTS:

The existence of a dual-or variable-rate commission agreement (i.e. one in which the seller/landlord agrees to pay a specified commission if the property is sold/leased by the listing broker without assistance and a different commission if the sale/lease results through the efforts of a cooperating broker; or one in which the seller/landlord agrees to pay a specified commission if the property is sold/leased by the listing broker either with or without the assistance of a cooperating broker and a different commission if the sale/lease results through the efforts of a seller/landlord) shall be disclosed by the listing broker by indicating y (yes) or n (no) in the data field variable as required by the MLS. The listing broker shall, in response to inquiries from potential cooperating brokers, disclose the differential that would result in either a cooperative transaction or, alternatively, in a sale that results through the efforts of the seller/landlord. If the cooperating broker is a buyer/tenant representative, the buyer/tenant representative must disclose such information to their client before the client makes an offer to purchase.

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SERVICE CHARGES:

Section 6. SERVICE FEES AND CHARGES:

The following service charges for operation of the Multiple Listing Service are in effect to defray the costs of the Service and are subject to change from time to time in the manner prescribed:

Initial Participation Fee: An applicant for participation in the Service shall pay an application fee as set by the Board of Directors with such fee to accompany the application.

Recurring Participation Fee: The monthly participation fee of each Participant shall be an amount equal to the monthly fee times each salesperson and licensed or certified appraiser who has access to and use of the Service, whether licensed as a broker, salesperson, or licensed or certified appraiser who is employed by or affiliated as an independent contractor with such Participant. Payment of such fees shall be made on or before the first day of the month to the Multiple Listing Service.

Subscription Fees: One complete set of current listings shall be supplied to the Participant for any additional new licensees “users” affiliated with his firm upon payment of an Application for subscription fee as set by the Board of Directors and the first monthly recurring Participation Fee. Participants shall be responsible for the recurring Participation Fees for each set of listings supplied to any individual, employed by or affiliated as an independent contractor (including licensed or certified appraisers) with the Participant, who has access to and who utilizes the service. A fine will be assessed to the Participant of MLS for any sales person using the service that has not been reported to the Association as a “user” through the Participant, within the 30 day time period of notification (Refer to By-laws, Article VI Section 13).

In no instance should an Association require a Participant to pay a subscription fee for an individual affiliated with him who has no use for and does not use the Service.

The emphasis is on “use of the Service”. If a licensee brings listings to the Participant who files them with the MLS, this is “use” of Service.

Those not using the Service must sign an application of MLS waiver which is also to be signed by their Designated REALTOR Broker Participant and such request is subject to approval of the Committee and the Board of Directors. These exemptions are to be renewed annually.

Fee for AFFILIATE MEMBERS to lease “SOLD” book is a fee set by the Committee with the approval of the Board of Directors and is assessed quarterly, upon receiving “SOLD” information.

Payment of Fees: All MLS fees, dues, and charges, including, but not limited to initial participation fees, recurring participation fees, subscription fees, etc., shall be assessed only to the MLS PARTICIPANT. Payment of such fees will only be accepted from the Participant and not from the non-principal brokers or sales licensees affiliated with the Participant. None of the foregoing is intended to preclude the MLS Participant from being reimbursed by the affiliated licensees for fees or charges incurred on their behalf pursuant to an in-house agreement that may exist.

Section 6.1 MLS Waiver Policy Guideline:

Waivers from MLS fees will be granted to educators, office secretaries, and appraisers, who are not actively listing or selling property and for unusual circumstances which will be reviewed by the MLS Committee, on an individual basis, and upon the approval of the Board of Directors. All participants, whether or not primary members, must report and pay fees for all licensees affiliated with them, or submit a request for waiver approval.

Waiver requests must be submitted by November 15, for the upcoming year or within thirty (30) days of participant joining or subscriber transferring.

Section 6.2 UNAUTHORIZED USE FINE:

In no instance should a Participant or user through a Participant let any unauthorized person use or have in his possession, the authorized Participants’ or users’ MLS compilation (book) or MLS computer access. This is confidential information “FOR MEMBERS ONLY.” A fine in the amount of $200 - $500 will be assessed to the Participant Broker of the MLS for any “PROVEN” unauthorized use of Participant’s or any agent’s (affiliated with his firm) copy of current listing compilation or MLS computer access.

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COMPLIANCE WITH RULES:

Section 7. COMPLIANCE WITH RULES:

The following action may be taken for noncompliance with the rules:

For failure to pay any service charge or fee within one month of the date due, and provided that at least ten days notice has been given, the Service shall be suspended until service charges or fees are paid in full. All fees and monies owed Association or Association’s MLS will be paid by the 10^th of the month following the month due or ALL service will be suspended until paid in full. (Total of 40 days from the date fee was incurred.)

NOTE: Suspension of service means that all books and services for the office of the delinquent PARTICIPANT will be held and no new listings will go in. The PARTICIPANT will remain responsible for PAYMENT of service during suspension period and/or until such time he notifies the Association in writing of his resignation.

For failure to comply with any other rule, the provisions of Sections 9 and 9.1 shall apply.

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MEETINGS:

Section 8. MEETINGS OF MLS COMMITTEE:

The Multiple Listing Service Committee shall meet for the transaction of its business at a time and place to be determined by the Committee or at the call of the Chairman.

Section 8.1 MEETINGS OF MLS PARTICIPANTS:

The Committee may call meetings of the Participants in the Service to be known as meetings of the Multiple Listing Service.

Section 8.2 CONDUCT OF THE MEETINGS:

The Chairman, or Vice Chairman, shall preside at all meetings or, in their absence, a temporary Chairman from the membership of the committee shall be named by the Chairman or, upon his failure to do so, by the Committee.

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ENFORCEMENT OF RULES OR DISPUTES:

Section 9. CONSIDERATION OF ALLEGED VIOLATIONS:

The Committee shall give consideration to all written complaints from Participants having to do with violations of the Rules and Regulations.

Section 9.1 VIOLATIONS OF RULES AND REGULATIONS:

If the alleged offense is a violation of the Rules and Regulations of the Service and does not involve a charge of alleged unethical conduct or request for arbitration, it may be considered and determined by the Multiple Listing Service Committee, and if a violation is determined, the Committee may direct the imposition of sanction, provided the recipient of such sanction may request a hearing before the Professional Standards Committee of the Association in accordance with the By-laws and Rules and Regulations of the Association of REALTORS within twenty (20) days following receipt of the Committee’s decision. If the Multiple Listing Committee has a procedure established to conduct hearings, the decision of the Multiple Listing Committee tribunal may be appealed to the Board of Directors within twenty (20) days of the tribunal’s decision being rendered.

Section 9.2 COMPLAINTS OF UNETHICAL CONDUCT:

All other complaints of unethical conduct shall be referred by the Committee to the Secretary of the Association of REALTORS for appropriate action in accordance with the professional standards procedures established in the Association’s Bylaws.

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CONFIDENTIALITY OF MLS INFORMATION:

Section 10. CONFIDENTIALITY OF MLS INFORMATION:

Any information provided by the Multiple Listing Service to the Participants shall be considered official information of the Service. Such information shall be considered confidential and exclusively for the use of Participants and real estate licensees affiliated with such Participants who are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property and licensed or certified appraisers affiliated with such Participants.

Section 10.1 MLS NOT RESPONSIBLE FOR ACCURACY OF INFORMATION:

The information published and disseminated by the Service is communicated verbatim, without change by the Service, as filed with the Service by the Participant. The Service does not verify such information provided and disclaims any responsibility for its accuracy. Each participant agrees to hold the Service harmless against any liability arising from any inaccuracy or inadequacy of the information such Participant provides.

Section 10.2 ACCESS TO COMPARABLE AND STATISTICAL INFORMATION:

Association members who are actively engaged in real estate brokerage, management, mortgage financing, appraising, land development, or building, but who do not participate in the MLS, are nonetheless entitled to receive, by purchase or lease, all information other than current listing information that is generated wholly or in part by the MLS including “comparable” information, “sold” information, and statistical reports. This information is provided for the exclusive use of Association Members and individuals affiliated with Association Members who are engaged in the real estate business and may not be transmitted, retransmitted, or provided in any manner to any unauthorized individual, office or firm except as otherwise specified in these Rules and Regulations.

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OWNERSHIP OF MLS COMPILATIONS* AND COPYRIGHTS:

Section 11. By the act of submission of any property listing data to the Association MLS the Participant represents that he has been authorized to grant and also thereby does grant authority for the Association to include the property listing data in its copyrighted MLS compilation and also in any statistical report on “Comparables”.

Section 11.1 All right, title and interest in each copy of every Multiple Listing Compilation created and copy-righted by the Great Smoky Mountains Association of REALTORS, and in the copyrights therein, shall at all times remain vested in the Great Smoky Mountains Association of REALTORS.

Section 11.2 Each Participant shall be entitled to lease from the Great Smoky Mountains Association of REALTORS a number of copies of each MLS Compilation sufficient to provide the Participant and each person affiliated as a licensee (including licensed or certified appraisers) with such Participant with one copy of such Compilation. The Participant shall pay, for each such copy, the rental fee set by the Association. **

Participants shall acquire by such lease only the right to use the MLS Compilation, in accordance with these Rules.

*The term “MLS Compilation” as used in Sections 11 and 12 herein, shall be construed to include any format in which property listing data is collected and disseminated to the Participants, including, but not limited to, bound book, loose-leaf binder, computer data base, card file, internet or any other format whatever.

**This section should not be construed to require the Participant to lease a copy of the MLS Compilation for any licensee (or licensed or certified appraiser) affiliated with the Participant who is engaged exclusively in a specialty of the real estate business other than listing, selling, or appraising the types of properties which are required to be filed with the MLS and who does not, at any time, have access to nor use of the MLS information or MLS facility of the Association and has been approved for waiver of fees by the Board of Directors.

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USE OF COPYRIGHTED MLS COMPILATIONS:

Section 12. DISTRIBUTION:

Participants shall at all times maintain control over and responsibility for each copy of any MLS Compilation leased to them by the Association of REALTORS, and shall not distribute any such copies to persons other than subscribers who are affiliated with such Participant as licensees, those individuals who are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property and any other subscribers as authorized pursuant to the governing documents of the MLS. Use of information developed by or published by the Association’s Multiple Listing Service is strictly limited to the activities authorized under a Participant’s licensure(s) or certification and unauthorized uses are prohibited. Further, none of the foregoing is intended to convey “Participation”, or “Membership” or any right of access to information developed by or published by the Association’s Multiple Listing Service where access to such information is prohibited by law.

Section 12.1 DISPLAY:

Participants and those persons affiliated as licensees with such Participants, shall be permitted to display the MLS Compilation to prospective purchasers only in conjunction with their ordinary business activities of attempting to locate ready, willing, and able buyers for the properties described in said MLS Compilation.

Section 12.2 REPRODUCTION:

Participants or their affiliated licensees shall not reproduce any MLS Compilation or any portion thereof except in the following limited circumstances:

Participants or their affiliated licensees may reproduce from the MLS Compilation, and distribute to prospective purchasers, a reasonable* number of single copies of property listing data contained in the MLS Compilation which relate to any properties in which the prospective purchasers are or may, in the judgment of the Participant or their affiliated licensees, be interested.

Nothing contained herein shall be construed to preclude any Participant from utilizing, displaying, distributing, or reproducing property listing sheets or other compilations of data pertaining exclusively to properties currently listed for sale with the Participant.

Any MLS information, whether provided in written or printed form, provided electronically, or provided in any other form or format, is provided for the exclusive use of the Participant and those licensees affiliated with the Participant who are authorized to have access to such information. Such information may not be transmitted, retransmitted, or provided in any manner to any unauthorized individual, office, or firm.

None of the foregoing shall be construed to prevent any individual legitimately in possession of current listing information, “sold” information, “comparables”, or statistical information from utilizing such information to support an estimate of value on a particular property for a particular client. However, only such information that an Association or Association-owned Multiple Listing Service has deemed to be nonconfidential and necessary to support the estimate of value may be reproduced and attached to the report as supporting documentation. Any other use of such information is unauthorized and prohibited by these Rules and Regulations.

*It is intended that the Participant be permitted to provide a prospective purchaser with listing data relating to properties which the prospective purchaser has a bona fide interest in purchasing or in which the Participant is seeking to promote interest. The term “reasonable”, as used herein, should therefore be construed to permit only limited reproduction of property listing data intended to facilitate the prospective purchasers’ decision making process in the consideration of a purchase. Factors which shall be considered in deciding whether the reproductions made are consistent with this intent, and thus “reasonable” in number, shall include, but are not limited to, the total number of listings in the MLS Compilation, how closely the types of properties contained in such listing accord with the prospective purchaser’s expressed desires and ability to purchase, whether the types of properties contained in the property listing data is consistent with a normal itinerary of properties which would be shown to the prospective purchaser.

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USE OF MLS INFORMATION:

Section 13. LIMITATIONS ON USE OF MLS INFORMATION:

Use of information from the MLS compilation of current listing information, from the Association’s Statistical Report, or from any ‘sold’ or ‘comparable’ report of the Association or MLS for public mass-media advertising by an MLS Participant or in other public representations may not be prohibited.

However, any print or nonprint forms of advertising or other forms of public representations based in whole or in part on information by the Association or its MLS must clearly demonstrate the period of time over which such claims are based and must include the following or substantially similar Notice:

Based on information from the Great Smoky Mountains Association of REALTORS or its Multiple Listing Service from the period (date) through (date).

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CHANGES IN RULES AND REGULATIONS:

Section 14. CHANGES IN RULES AND REGULATIONS:

Amendments to the Rules and Regulations of the Service shall be by a majority vote of Directors of the Great Smoky Mountains Association of REALTORS.

Arbitration of Disputes

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Section 15. ARBITRATION OF DISPUTES: By becoming and remaining a Participant, each Participant agrees to arbitrate disputes involving contractual issues and questions, and specific non-contractual issues and questions defined in Standard of Practice 17-4 of the Code of Ethics with MLS Participants in different firms arising out of their relationships as MLS Participants subject to the following qualifications. (Amended 11/97)

If all disputants are members of the same Board of Realtors^® or have their principal place of business within the same Board’s territorial jurisdiction, they shall arbitrate pursuant to the procedures of that Board/Association of Realtors^®.

If the disputants are members of different Boards of Realtors^® or if their principal place of business is located within the territorial jurisdiction of different Boards of Realtors^®, they remain obligated to arbitrate in accordance with the procedures of the Tennessee Association of Realtors^®.

Interboard Arbitration Procedures: Arbitration shall be conducted in accordance with any existing interboard agreement or, alternatively, in accordance with the Interboard Arbitration Procedures in the Code of Ethics and Arbitration Manual of the National Association of Realtors^®. Nothing herein shall preclude Participants from agreeing to arbitrate the dispute before a particular Board/Association of Realtors^®. (Amended 11/98)

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Standards of Conduct for MLS Participants

Section 16—STANDARDS OF CONDUCT FOR MLS PARTICIPANTS:

Section 16.1 MLS Participants shall not engage in any practice or take any action inconsistent with the agency or other exclusive relationship recognized by law that other MLS Participants have with clients. (Amended 1/98)

Section 16.2 Signs giving notice of property for sale, rent, lease, or exchange shall not be placed on property without consent of the seller/landlord.

Section 16.3 MLS Participants acting as subagents or as buyer/tenant agents or brokers shall not attempt to extend a listing broker’s offer of cooperation and/or compensation to other brokers without the consent of the listing broker. (Amended 1/98)

Section 16.4 MLS Participants shall not solicit a listing currently listed exclusively with another broker. However, if the listing broker, when asked by the MLS Participant, refuses to disclose the expiration date and nature of such listing (i.e., an exclusive right to sell, an exclusive agency, open listing, or other form of contractual agreement between the listing broker and the client) the MLS Participant may contact the owner to secure such information and may discuss the terms upon which the MLS Participant might take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing.

Section 16.5 MLS Participants shall not solicit buyer/tenant agreements from buyers/tenants who are subject to exclusive buyer/tenant agreements. However, if asked by an MLS Participant, the broker refuses to disclose the expiration date of the exclusive buyer/tenant agreement, the MLS Participant may contact the buyer/tenant to secure such information and may discuss the terms upon which the MLS Participant might enter into a future buyer/tenant agreement or, alternatively, may enter into a buyer/tenant agreement to become effective upon the expiration of any existing exclusive buyer/tenant agreement. (Amended 1/98)

Section 16.6 MLS Participants shall not use information obtained from listing brokers through offers to cooperate made through multiple listing services or through other offers of cooperation to refer listing brokers’ clients to other brokers or to create buyer/tenant relationships with listing brokers’ clients, unless such use is authorized by listing brokers. (Amended 11/01)

Section 16.7 The fact that an agreement has been entered into with an MLS Participant shall not preclude or inhibit any other MLS Participant from entering into a similar agreement after the expiration of the prior agreement. (Amended 1/98)

Section 16.8 The fact that a client has retained an MLS Participant as an agent or in another exclusive relationship in one or more past transactions does not preclude other MLS Participants from seeking such former client’s future business. (Amended 1/98)

Section 16.9 MLS Participants are free to enter into contractual relationships or to negotiate with sellers/landlords, buyers/tenants or others who are not subject to an exclusive agreement but shall not knowingly obligate them to pay more than one commission except with their informed consent. (Amended 1/98)

Section 16.10 When MLS Participants are contacted by the client of another MLS Participant regarding the creation of an exclusive relationship to provide the same type of service, and MLS Participants have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement or, alternatively, may enter into an agreement which becomes effective upon expiration of any existing exclusive agreement. (Amended 1/98)

Section 16.11 In cooperative transactions, MLS Participants shall compensate cooperating MLS Participants (principal brokers) and shall not compensate nor offer to compensate, directly or indirectly, any of the sales licensees employed by or affiliated with other MLS Participants without the prior express knowledge and consent of the cooperating broker.

Section 16.12 MLS Participants are not precluded from making general announcements to prospective clients describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another MLS Participant. A general telephone canvass (only if the participant has purchased current, state supplied Do Not Call List), general mailing, or distribution addressed to all prospective clients in a given geographical area or in a given profession, business, club, or organization, or other classification or group is deemed “general” for purposes of this rule. (Amended 1/98)

The following types of solicitations are prohibited:

Telephone or personal solicitations of property owners who have been identified by a real estate sign, multiple listing compilation, or other information service as having exclusively listed their property with another MLS Participant; and mail or other forms of written solicitations of prospective clients whose properties are exclusively listed with another MLS Participant when such solicitations are not part of a general mailing but are directed specifically to property owners identified through compilations of current listings, “for sale” or “for rent” signs, or other sources of information intended to foster cooperation with MLS Participants.

Section 16.13 MLS Participants, prior to entering into an agency agreement or other exclusive relationship, have an affirmative obligation to make reasonable efforts to determine whether the client is subject to a current, valid exclusive agreement to provide the same type of real estate service. (Amended 1/98)

Section 16.14 MLS Participants, acting as agents of, or in another relationship with, buyers or tenants, shall disclose that relationship to the seller/landlord’s agent or broker at first contact and shall provide written confirmation of that disclosure to the seller/landlord’s agent or broker not later than execution of a purchase agreement or lease. (Amended 1/98)

Section 16.15 On unlisted property, MLS Participants acting as buyer/tenant agents or brokers shall disclose that relationship to the seller/landlord at first contact for that client and shall provide written confirmation of such disclosure to the seller/landlord not later than execution of any purchase or lease agreement. (Amended 1/98)

MLS Participants shall make any request for anticipated compensation from the seller/landlord at first contact.

Section 16.16 MLS Participants, acting as agents or brokers of sellers/landlords or as subagents of listing brokers, shall disclose that relationship to buyers/tenants as soon as practicable, and shall provide written confirmation of such disclosure to buyers/tenants not later than execution of any purchase or lease agreement. (Amended 1/98)

Section 16.17 MLS Participants are not precluded from contacting the client of another broker for the purpose of offering to provide, or entering into a contract to provide, a different type of real estate service unrelated to the type of service currently being provided (e.g., property management as opposed to brokerage). However, information received through a Multiple Listing Service or any other offer of cooperation may not be used to target clients of other MLS Participants to whom such offers to provide services may be made.

Section 16.18 MLS Participants, acting as subagents or buyer/tenant agents or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker’s offer of compensation to subagents or buyer’s agents or brokers, or make the submission of an executed offer to purchase/lease contingent on the listing broker’s agreement to modify the offer of compensation. (Amended 1/98)

Section 16.19 All dealings concerning property exclusively listed or with buyer/tenants who are subject to an exclusive agreement shall be carried on with the client’s agent or broker, and not with the client, except with the consent of the client’s agent or broker or except where such dealings are initiated by the client. (Amended 1/98)

Section 16.20 Participants, users, and subscribers, prior to or after terminating their relationship with their current firm, shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm. This does not preclude Participants from establishing agreements with their associated licensees governing assignability of exclusive agreements. (Adopted 1/98)

Section 16.21 These rules are not intended to prohibit ethical, albeit aggressive or innovative business practices, and do not prohibit dis