MLXchange Upgrades Focus on Useability

Thursday 04 September 2008

Version 4.3 comes to MFRMLS on September 9, 2008

On Tuesday, September 9, we will be upgrading to the newest version of MLXchange, version 4.3. The system will be down between 5 AM and 8 AM on the morning of September 9 as MarketLinx installs the updates. When the system is back online and you login, you’ll find a host of upgrades designed to help you be a more effective REALTOR®. Here are some of the things you’ll find:

Multi-Sort Search Made Easier

The current version of MLXchange supports multi field sorting for search results, but the option is not easy to find, and as a result, we’ve found subscribers rarely use this feature. With version 4.3, you’ll find your multi-sort options right at the top of the search results screen. That’s going to make it easy for you to sort your search results by whatever criteria you need. Do you want to search by number of bedrooms, then pool, then price? No problem. Need price first, then square footage, then zip code? The possibilities are endless, and changing your sort criteria is easy.

Agent Web Page Enhancements

MarketLinx made comprehensive improvements to Agent Web Pages. Not only will it be easier for clients to use the Agent Web Page, but it will be easier for you to customize and configure your website according to your preferences. You will also be able to add up to 4 agents/team members whose listings will also appear under your “My Listings Tab” (provided each team member grants permission).

Share Custom Reports Company-Wide

If you take advantage of the ability to create custom reports in MLXchange, with version 4.3, Head Brokers will be able to share those custom reports with not just the people in their office, but with everyone in their company.

MarketLinx will also implement a number of subtle behind-the-scenes updates designed to improve the overall usability of MLXchange. It is part of our continuing effort to supply you with the most up-to-date, state-of-the-art tools available to help you be the best real estate professional you can be.

Noting Short Sales on MLXchange

Thursday 04 September 2008

Minor Change to Short Sale Policy

To make the process of declaring a Potential Short Sale Circumstance on MLXchange easier, we provided you with specific text for you to copy and paste into the “Public Remarks” and the “REALTOR® Only Remarks” fields of a listing. Because the MFRMLS Rules and Regulations prohibit discussion of compensation in the “Public Remarks” field, we are modifying the mandatory verbiage slightly.

A listing broker has two options available when declaring a Short Sale Circumstance:

Option One:

The first option applies if the listing broker DOES NOT want to bind the cooperating broker to acceptance of a reduced commission amount as determined by the seller’s lender. In this case, copy and paste the following text in both the “REALTOR® Only Remarks” and “Public Remarks” fields:

Option Two:

The second option applies if the listing broker DOES want the cooperating broker to be obligated to accept a reduced commission amount as determined by seller’s lender(s). In this case, copy and paste the following text into the “Public Remarks” field only:

Then, copy and paste the following text into the “REALTOR® Only Remarks” field:

In previous communications, we included quotation marks around the recommended text. We’ve found that if you paste the quotation marks into MLXchange, they may display improperly when you view the listing. The best way to avoid this is to simply remove the quotation marks (that’s why the text above does not include them).

Company Suspensions Begin September 15

Thursday 04 September 2008

Brokers: Check the online payment center for delinquent accounts

If your 2008 – 2009 MFRMLS Subscription Fees were due on June 15, take note: if an account is 90 days past due, the entire office risks service suspension. That means office service suspensions for delinquent accounts have been scheduled for September 15.

If you are a broker, you can log into our online payment center to see if any of your agents has a balance. You hold ultimate responsibility for each of your agent’s fees. If you find a balance for an agent who is no longer active in your office, you can file a form #2050 with your local association. If the agent is still active with your office, they can go to www.mfrmls.com to pay these fees by September 14 to avoid MLS suspension for the entire company.

The associations billed on June 15 include the Bartow Board of REALTORS®, East Polk County Association of REALTORS®, Greater Lake County Association of REALTORS®, Greater Tampa Association of REALTORS®, Lakeland Association of REALTORS®, Orlando Regional REALTOR® Association, Osceola County Association of REALTORS®, Venice Area Board of REALTORS® and West Volusia Association of REALTORS®.

Subscribers from the following boards and associations had a different due date and do not risk office suspension on September 15: the Manatee Association of REALTORS®, Punta Gorda – Port Charlotte – North Port Association of REALTORS®, Sarasota Association of REALTORS®, Englewood Area Board of REALTORS®.

Compliance Corner

Thursday 04 September 2008

July 2008 Violations — New Photo Rule

For waterfront properties, you may load a photo of the water view in the first slot.

MFR is serious about reducing or eliminating fines. Our warning notices are working to both increase the integrity of your MLS and to reduce fines. In July 2008, we only assessed 36 fines. Thanks for doing such a great job at keeping our MLS accurate!

The top three listing violations for July, 2008 were Tax ID, Driving Directions, and No Front Exterior Photo. Here are some quick pointers to avoid receiving warning letters for each of these violations:

Tax ID

Use the Tax Autopop feature. It accesses county tax records and automatically formats the Tax ID properly. If you use the Tax Autopop feature, you are virtually guaranteed to never receive a warning letter for an improperly formatted Tax ID.

If you decide to enter the Tax ID manually, please separate each field by a space only – no slashes or dashes. For new construction, properties being sub-divided, or condo conversion, enter the full address with unit number if applicable.

Driving Directions

Reserve this field for driving directions only. Don’t include other information that should be included in the “Public Remarks” field or the “REALTOR® Only Remarks” field. And as always, contact information should only be placed in the “REALTOR® Only Remarks” field.

No Front Exterior Photo

The first photo for each listing in MLXchange must be a front exterior photo or rendering, except in the case of two notable circumstances:

If the property is vacant land, there is, of course, no exterior to photograph. In this case, simply upload a photo of the land.

For waterfront properties, you may load a photo of the water view in the first slot. If you choose this option the second photo must be a front exterior shot.

Photos Required for Vacant Land

Thursday 31 July 2008

Policy Change Takes Effect July 31

As of Thursday July 31, every new listing in MLXchange will require a photo – even listings for vacant land.

In the past, vacant land has been exempt from the photo requirement, but subscribers tell us photos are so helpful in attracting clients’ attention and helping make a sale, the MFRMLS Board of Directors voted to require photos for vacant land. In fact, industry research has shown that properties with multiple photos receive significantly more leads than properties with no photos or just one photo.

For the purposes of listing vacant land, a site plot or plat map can be just as helpful as a photo, and the new photo rule allows subscribers to upload these resources in addition to, or instead of, a photo. But remember: if you choose to upload a site plot or plat map as an image, it must be in a JPG format, not as a PDF attachment.

If you currently have listings for vacant land that were entered into MLXchange before July 31, those listings will not be subject to the new policy and will not draw a violation notice for missing photos.

“Sub Agent Comp” to Be Removed from Listing Maintenance

Thursday 31 July 2008

Change to MLXchange Takes Place July 31

MFRMLS has elected to remove the “Sub Agent Comp” field from the Listing Maintenance section of MLXchange. “Buyer Agent Comp,” “Non-Rep Comp,” and “Trans Broker Comp” will remain available options for compensation purposes.

MFRMLS has recognized that Sub Agent Compensation is rarely used, and is largely misunderstood by many REALTORS® practicing in today’s marketplace. Many other multiple listing services around the country have already eliminated the “Sub Agent Comp” option. With this in mind, the MFRMLS Board felt that eliminating this field is in our subscribers’ best interests, and makes our multiple listing service more reflective of the current real estate environment.

Home Sweet Boat Home

Thursday 31 July 2008

New MFRMLS Policy Facilitates Sale of Dock/Rack-ominiums

We have added "Dock/Rack-ominiums" to the Property Style Feature set in MLXchange

With more and more of our subscribers selling real estate near the water, we have had an increased demand to allow for the listing of Dock/Rack-ominiums in MLXchange.

Dock/Rack-ominiums, sometimes called Dock-ominiums, are boat “condos.” They’re either a wet dock (Dock-ominium) or a dry storage facility (Rack-ominium). Similar to condominiums, ownership of a Rack-ominiums or Dock-ominiums is deeded and can be sold separate from homes and condos.

In order for REALTORS® to list and sell these properties, we have added “Dock/Rack-ominiums” to the Property Style Feature set in MLXchange.

If you are listing a Dock/Rack-ominiums, here is what you need to specify:

• Property type: residential
• Property style: condo
• Property description: Dock/Rack-ominiums

Once you make these selections, you also will have to specify:

• Unit number
• Monthly maintenance fee
• What the monthly fee includes

Information such as number of beds and baths, heated square footage, acreage or room dimensions, of course, is not required.

Compliance Corner

Thursday 31 July 2008

Short Sale Violations Top the List

Our ongoing efforts to reduce the number of fines issued for listing violations has produced great results. In June, only 37 fines accounted for the top three types of listing violations.

Please verify that any short sale listings you may have are in compliance with the mandatory rules below. In order to give subscribers enough time to update their Short Sale listings in MLXchange, we will not begin issuing fines for Short Sale Violations until September 1.

As the real estate market changes, so does the nature of the violations we find on MLXchange. In the current environment, fines for incorrectly listing Short Sales have spiked. To avoid making listing errors pertaining to Short Sales, you need to be aware of MFRMLS’s new Rules and Regulations that apply to the subject.

Short Sales are a complicated issue. The Rules and Regulations regarding Short Sales are lengthy to explain with all the possible scenarios. Before you enter into a contract on a Short Sale Circumstance, make sure you read the MFRMLS Rules and Regulations regarding Short Sales. In the meantime, here is a brief overview of our Short Sale policy:

MFRMLS rules make it mandatory to disclose any potential Short Sale

If you become aware of a Potential Short Sale Circumstance, you must disclose the Short Sale by selecting the “3rd Party Approval Req” drop down item from the “REALTOR® Info” field in “Listing Maintenance” in MLXchange.

You must also include one of the two following disclosure options in the “REALTOR® Only Remarks” and the “Public Remarks sections of the listing:

“Listing price may not be sufficient to pay the total of all liens and costs of sale, and sale of Property at full listing price may require approval of seller’s lender(s).”

OR

“Listing price may not be sufficient to pay the total of all liens and costs of sale, and sale of Property at full listing price may require approval of seller’s lender(s), and such approval may be conditioned upon the gross commission being reduced.”

If you select the first option, the sale is contingent upon the lender approving the contract, including the compensation noted.

If you choose the second option, you must specify in the contract how the reduction in commission will be applied between the cooperating brokers. IF THIS IS NOT SPECIFIED, THE LISTING BROKER WILL BE OBLIGATED TO PAY THE COOPERATING BROKER THE COMPENSATOIN STATED IN THE LISTING.

Here are some resources we have compiled to help you understand the new policies:

The Modified MFRMLS Short Sale Rule»

MFRMLS’s comprehensive guidelines for handling a Short Sale»

From MFRMLS attorneys, a disclosure of Short Sale issues»

MFR Short Sale Rule Changed

Tuesday 22 July 2008

NAR passes new mandatory short sale rule

In a May, 2008 email Newsletter an article describing the MFRMLS policy regarding compensation for Short Sales was published (“MFRMLS Short Sale Policy”). The National Association of Realtors®, Inc.(“NAR”)has recently made changes to its model short sales rule (the “Model Short Sale Rule”) to be used by multiple listing services (“MLSs”). As a result of NAR’s changes, MFRMLS’ Short Sale Policy must be modified. The important points of the revised MFRMLS Policy are included in this communication, and we have provided links to additional resources that have been provided by MFRMLS attorneys regarding Short Sales.

What is a Short Sale?

The Model Short Sale Rule now defines a short sale as

“… a transaction where title transfers; where the sale price is insufficient to pay the total of all liens and costs of sale; and where the seller does not bring sufficient liquid assets to the closing to cure all deficiencies…” (a “Short Sale Transaction”).

A “Potential Short Sale Circumstance” is one where the listing Broker reasonably believes the listing price or purchase price may not be enough to cover payment of all liens and costs of sale and the seller is unwilling or unable to bring sufficient liquid assets to the closing.

Model Rule Permits Short Sale Disclosure

The Model Short Sale Rule now requires that MLSs “… give participants the ability to disclose to other participants any potential for a short sale…” In other words, an MLS may permit disclosure of a potential short sale, or it may now require such disclosure, but an MLS may not prohibit such disclosure.

Why is it important to disclose a Potential Short Sale Circumstance on the MLS?

Short Sales are a controversial topic, and we understand the opinions regarding how Short Sales should be handled vary widely depending on an individual’s experience and what side of the transaction they represent. The spectrum of opinions within our own membership ranges from disallowing Short Sales in MFRMLS to not implementing policy regarding Short Sales.

MFRMLS was founded to provide an atmosphere of open cooperation where Brokers can easily share listing data and be guaranteed the offered compensation for their participation in a sale. MFRMLS believes that, in the interest of all of our members and their clients, short sales should be permitted to be listed in MFRMLS, and that it is a best practice to disclose Potential Short Sale Circumstances at the earliest possible time in the listing and sale process.

Since the Model Short Sale Rule now allows MFRMLS to do so, MFRMLS has made disclosure of Potential Short Sale Circumstances mandatory.

How to disclose a Potential Short Sale on the MLS

The Model Short Sale Rule states:

“…All confidential disclosures and confidential information related to short sales must be communicated through dedicated fields or confidential “remarks” available only to participants and subscribers.”

If you become aware of a Potential Short Sale Circumstance, MFRMLS’s mandatory disclosure rule has two provisions with which you must comply:

1. The Potential Short Sale Circumstance will be disclosed by selecting the “3RD Party Approval Req” drop down item from the “Realtor Info” field in “Listing Maintenance” in MLXChange.
2. If the “3rd Party Approval Req” drop down item is selected to designate the Potential Short Sale Transaction, one of the following disclosure options must be included in the “REALTOR® Only Remarks” and the “Public Remarks” sections of the listing:
   
   

   a. OPTION ONE: If the listing Broker DOES NOT want to bind the cooperating Broker to acceptance of a reduced commission amount as determined by seller’s lender(s), then the following remarks should be used:

   “Listing price may not be sufficient to pay the total of all liens and costs of sale, and sale of Property at full listing price may require approval of seller’s lender(s).”

   b. OPTION TWO: If the listing Broker DOES want the cooperating Broker to be obligated to accept a reduced commission amount as determined by seller’s lender(s), then the following remarks should be used:

   “Listing price may not be sufficient to pay the total of all liens and costs of sale, and sale of Property at full listing price may require approval of seller’s lender(s), and such approval may be conditioned upon the gross commission being reduced.”

How to Make Offers of Compensation in a Potential Short Sale Circumstance - Offers of Compensation in a Potential Short Sale Circumstance MAY be conditional

Generally, offers of compensation in an MLS are unconditional. The Model Short Sale Rule now permits offers of compensation - in Potential Short Sale Circumstances - to be made conditional upon the approval of a third party - even if the approval is given after execution of a contract for sale and purchase. The Model Short Sale Rule provides that when a Potential Short Sale is disclosed:

“…participants may, at their discretion, advise other participants whether and how any reduction in the gross commission established in the listing contract, required by the lender as a condition of approving the sale, will be apportioned between listing and cooperating participants…”

Thus, in Potential Short Sale Circumstances a listing Broker may state - as an allowed exception to the general rule that offers must be unconditional - that his or her offer of compensation to cooperating Brokers may be adjusted by seller’s lender. The offered compensation, even though conditional, must still be listed as a dollar amount, a percentage, or a combination of both. (It should be noted that it is against MFRMLS Rules and Regulations to discuss compensation in any field other than the designated “Compensation” field and, in Short Sale Circumstances, the “Realtor Only” and “Public Remarks” sections.)

A listing Broker’s ability to pay a cooperating Broker compensation in a Short Sale Transaction which differs from the compensation listed in the MLS will depend upon the listing Broker’s disclosure as follows:

1. The listing Broker may use OPTION ONE to simply communicate and disclose to the cooperating Broker that seller’s lender must approve the contract. If the lender simply approves the contract and the sale is consummated, then the listing Broker is responsible for the compensation to the cooperating Broker as listed in the MLS.
2. The listing Broker may use OPTION TWO to simply communicate and disclose to the cooperating Broker that seller’s lender must approve the contract. If the lender conditions lender’s approval on the commission being reduced, then neither the listing Broker nor the cooperating Broker may be under any obligation to accept the lender’s suggested modification of the commission. In such an event, the contract may not be accepted, no closing would occur, and no commission would be paid to either Broker.
3. The listing Broker may use OPTION TWO to timely communicate and disclose to the cooperating Broker: (i) that seller’s lender must approve the contract AND (ii) that lender may condition lender’s approval on the gross commission being reduced. If the listing Broker uses OPTION TWO:
   
   

   a. BUT DOES NOT disclose to the cooperating Broker how that reduction will be apportioned between them, then upon a sale being consummated the listing Broker could be obligated to pay the cooperating Broker the compensation as listed in the MLS;

   b. AND ALSO discloses to the cooperating Broker how that reduction will be apportioned between them, then a sale could be consummated and the listing Broker would be obligated to pay the cooperating Broker ONLY the apportioned share of the reduced compensation. Thus, a listing Broker who wants to bind the cooperating Broker to accept a reduced commission amount - as determined by seller’s lender(s) in a Potential Short Sale Circumstance - must do two things:

   (1) The listing Broker must use the Option Two disclosure in the listing;

   AND

   (2) The listing Broker must disclose to cooperating Brokers how any reduction in the gross commission will be apportioned between listing and cooperative Brokers. If the listing Broker does not make this disclosure in the listing, then the manner of apportionment must be made to the cooperating Broker prior to the cooperating Broker producing an offer of purchase.

The following are examples of provisions which may be used to disclose the manner of apportionment:

• “…any adjustment will be split between the listing Broker and selling Broker [proportionally / in the same proportion as the gross commission bears to the initial offer of compensation]
• “…any adjustment will be split __% by listing Broker and __% by selling Broker
• “…any adjustment will be shared equally
• “…any adjustment will be borne solely by listing Broker [up to a maximum of $______ and any excess will be split/shared________________]
• “…any adjustment will be borne solely by selling Broker [up to a maximum of $______ and any excess will be split/shared________________]

IF THE LISTING BROKER ELECTS NOT TO DISCLOSE TO A COOPERATING BROKER HOW ANY REDUCTION IN THE GROSS COMMISSION WILL BE APPORTIONED BETWEEN THE BROKERS, THEN AT CLOSING THE LISTING BROKER WILL BE OBLIGATED TO PAY THE COOPERATING BROKER THE COMPENSATION STATED IN THE LISTING.

The full language of the Short Sale Listings rule (Article 4.1-1C) can be found in the MFRMLS Rules & Regulations»

Guidelines for Handling a Short Sale

MFRMLS has compiled a comprehensive guide that addresses the nuances of handling a Short Sale for both listing agents and buyer’s agents.

Pending Status of Short Sale Properties

Once a contract has been signed for a property in a Short Sale Transaction, even if the contract is subject to approval by a court, lender, or other third party, the status of the property listing must be changed to "Pending" within two business days. Because short sale properties may be more likely to fall through, we understand the temptation to keep a listing as "Active," but this does a grave disservice to your fellow real estate professionals that may continue to recommend your client's property, unaware that the property is under contract.

Disclosure of Short Sale Issues to Buyer

MFRMLS attorneys have created a “Disclosure of Short Sale Issues to Buyer” agreement that describes the terms and conditions that a buyer can expect to encounter when they place an offer on a property in a Short Sale Transaction.

MLXchange System Performance

Tuesday 22 July 2008

In recent weeks, MLXchange has experienced some system performance issues and sluggishness. According to MarketLinx, our software provider, the MFRMLS server hardware had sufficient capacity to support the MFRMLS membership and all the incoming associations. They also concluded from their analysis that at no time had the hardware operated at peak user capacity nor was the hardware capacity the cause for performance problems.

What they discovered, and what members have experienced first hand, is that the combination of multiple association processes running at the same time put an unexpected burden on the system. This caused sluggish performance (i.e. higher then normal wait times) and reset errors. MarketLinx recognized it was time for some new hardware and SQL software upgrades to rectify these identified issues.

MarketLinx’s commitment to MFRMLS is to restore and optimize system performance as quickly and safely as possible. Plans were put in place to upgrade the MFRMLS database to new hardware and SQL 2005 software, which offers better memory and database lock management, to alleviate the performance problems. The upgrade took place between 12:00 midnight and 8:00am on Tuesday, July 1.

Quality assurance testing performed on Tuesday, July 1st has shown significant improvement in the MLS System’s performance. MFRMLS is pleased to see that MarketLinx has spent the time and resources to bring our system back to the high performance level we have experienced for over five years since its original deployment at MFRMLS on January 8, 2003.

Please note that any time we have the rare occurrence that the system is taken down for maintenance, it is done during non-business hours and is published in advance via the MLXchange System message and MFR Website.

Both MFRMLS and your Local Association have developed a very strong professional relationship with MarketLinx, the developer of MLXchange. This relationship allows us to respond quickly and aggressively to issues that affect our MLS system, and it allows us to proactively identify and implement new tools and features that will benefit you in the future.