Spanish Real Estate forum - Spanish property - Estate agents - View Single Post - Misconceptions Regarding Multiple Listing (MLS) In The Spanish Property Market

AMLASpain · 05-25-2008, 11:02 PM

" 1. Sellers are inclined to engage more than one estate agent to market their property so that more than one agent could list it on the same MLS site.
2. One agent, by agreement with another, may list the other's properties, once again causing a duplicated listing on an MLS site."

To take this point first,
In a market with a ' true' MLS service such as the US, and I use the word true for two reasons.

1. In such a regulated market, the MLS is run by the regulatory authority, the NAR ( National Association of Realtors). To become a member of the MLS, you must be a licenced real estate Agent and must not only have a written agency agreement with the vendor but also an agreement to list the property on the MLS. This second agreement is an 'exclusive right to list' agreement between the agent and vendor giving the agent the right to list on the MLS. This excludes duplication of properties on the database.
2. It is a necessity to become a member of the MLS if you are an agent. Membership effectively allows access to to over 95% of the property for sale in the marketplace and as a listing agent you are able to offer the property for sale through 100% of the agents working in the market.

This provides as close to a 'perfect market' as you are likely to get, bringing all buyers and sellers together in one place. In this state the perfect market benefits both buyers and sellers equally, increasing the speed and efficiency of transactions as well as providing checks and balances with regards pricing.

2. The second point you make infers that contractual obligations between a vendor and his agent can be transferred to another agent (third party) without the agreement of the vendor.
Legally this is very stony ground and is why, in these circumstances a Multiple Listing Agency Agreement should be in force between the listing agent and the vendor.

The need for a multiple listing agency agreement between vendor and agent incorporating the exclusive 'right to list' on the MLS are what seperates an MLS from the afore-mentioned advertising sites and portals.

The term MLS has for the most part been mis-used where it appears in Europe. In the US the term MLS is a trademark so as to distinguish it from portals and advertising sites, and whilst advertising sites are to be found they are not as prevelant as they are in Europe. Brokers have the ability to draw listings for their websites directly from the MLS allowing them to show all the listings in the market leaving advertising sites as a second line form more used in the FSBO market than by agents.

"Although there are currently no regulations in Europe in relation to MLS, it may be a matter of time before its use may be viewed as a restrictive practice designed to benefit real estate agents, rather than consumers."

As I said in my original piece, an MLS does two main things.
1. It creates a perfect market
2. It seperates conflict of interest

Neither of these I can see is too the detriment of the buyer or seller.
I do believe that some regulation of the market and agents would be beneficial to all concerned.
Education with a basic understanding of contract law, agency law and procedures combined with a registration system of identification so as to establish a line of responsibility would go a long way to increasing confidence in an industry low on the ladder of public trust.

The comment in Wiki seems to have been written from a Europeans perspective rather than from a study of the evolvement of the system in its 'true' form....just goes to show you shouldn't believe everything you read in Wikipedia!

05-25-2008, 11:02 PM	#3 (permalink) Rating: 0% (0)
AMLASpain Member Join Date: Jun 2007 Posts: 31	The Perfect Market " 1. Sellers are inclined to engage more than one estate agent to market their property so that more than one agent could list it on the same MLS site. 2. One agent, by agreement with another, may list the other's properties, once again causing a duplicated listing on an MLS site." To take this point first, In a market with a ' true' MLS service such as the US, and I use the word true for two reasons. 1. In such a regulated market, the MLS is run by the regulatory authority, the NAR ( National Association of Realtors). To become a member of the MLS, you must be a licenced real estate Agent and must not only have a written agency agreement with the vendor but also an agreement to list the property on the MLS. This second agreement is an 'exclusive right to list' agreement between the agent and vendor giving the agent the right to list on the MLS. This excludes duplication of properties on the database. 2. It is a necessity to become a member of the MLS if you are an agent. Membership effectively allows access to to over 95% of the property for sale in the marketplace and as a listing agent you are able to offer the property for sale through 100% of the agents working in the market. This provides as close to a 'perfect market' as you are likely to get, bringing all buyers and sellers together in one place. In this state the perfect market benefits both buyers and sellers equally, increasing the speed and efficiency of transactions as well as providing checks and balances with regards pricing. 2. The second point you make infers that contractual obligations between a vendor and his agent can be transferred to another agent (third party) without the agreement of the vendor. Legally this is very stony ground and is why, in these circumstances a Multiple Listing Agency Agreement should be in force between the listing agent and the vendor. The need for a multiple listing agency agreement between vendor and agent incorporating the exclusive 'right to list' on the MLS are what seperates an MLS from the afore-mentioned advertising sites and portals. The term MLS has for the most part been mis-used where it appears in Europe. In the US the term MLS is a trademark so as to distinguish it from portals and advertising sites, and whilst advertising sites are to be found they are not as prevelant as they are in Europe. Brokers have the ability to draw listings for their websites directly from the MLS allowing them to show all the listings in the market leaving advertising sites as a second line form more used in the FSBO market than by agents. "Although there are currently no regulations in Europe in relation to MLS, it may be a matter of time before its use may be viewed as a restrictive practice designed to benefit real estate agents, rather than consumers." As I said in my original piece, an MLS does two main things. 1. It creates a perfect market 2. It seperates conflict of interest Neither of these I can see is too the detriment of the buyer or seller. I do believe that some regulation of the market and agents would be beneficial to all concerned. Education with a basic understanding of contract law, agency law and procedures combined with a registration system of identification so as to establish a line of responsibility would go a long way to increasing confidence in an industry low on the ladder of public trust. The comment in Wiki seems to have been written from a Europeans perspective rather than from a study of the evolvement of the system in its 'true' form....just goes to show you shouldn't believe everything you read in Wikipedia! __________________ The Spanish Property MLS is a multiple Listing Service designed on the US model to help agents increase efficiency and gain Page 1 Google exposure at a fraction of the cost of advertising sites. We are currently offering FREE membership to Agents in Spain to help ease the burden on costs whilst markets remain poor. Sign Up here. We also provide SEO for real estate agents