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Home > Rules and Policies > Canopy MLS Rules and Regulations revisions: learn what changed!
Canopy MLS Rules and Regulations revisions: learn what changed!
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The revisions to the Canopy MLS Rules and Regulations are to simplify and clarify enforcement policies. The goal of these changes is to increase the members’ understanding and acceptance of the rules and to elevate the members’ compliance experience. This article and video explain the significant changes.

  1. SECTION 1.12.1: LISTING MANIPULATION – New section. Curtails relisting and misuse of Withdrawn status. Unclear verbiage elsewhere in the rules was removed.

The listing must reflect the correct status at all times and may not be inactivated through a change of status and then be reactivated to cause the listing to appear as new. The only valid reasons for changing a listing number is the execution of a new listing agreement by a new office, or the execution of a new listing agreement on a property by the same brokerage which is dated following the expiration or withdrawal of the prior agreement.

Withdrawn status means the listing contract has been terminated (no longer in force) prior to the expiration of the term of the contract. If the listing agreement has not been terminated, Temporarily off Market status should be used instead of Withdrawn status.

NOTE: A violation of this rule is a Category II Violation, and carries an immediate $100 fine.

  1. LOCKBOXES AND SHOWINGS – The most frequent MLS violation hearings are about unauthorized removal of keys from the lockbox and unauthorized showings. These sections were changed for clarity, and expanded to provide examples of violations from actual hearings. 

SECTION 2.4 UNAUTHORIZED REMOVAL OF KEYS FROM LOCKBOX Not a new rule. You must be the current Listing Brokerage or have the current Listing Brokerage’s permission to remove keys from the listed property or Lockbox. Also, the person opening the Lockbox must be the person for whom the appointment was made unless expressly authorized in writing by the Listing Brokerage.

What is new is the list of examples of violations from actual hearings, such as: 

               (a)  Taking the keys to settlement without permission from the current Listing Brokerage.

               (b)  Showing a listed property on behalf of another agent, without updating the showing appointment

                      to reflect the change AND notifying and obtaining approval of the change from the Listing Brokerage.

               (c)  Performing an inspection on behalf of another Inspector, without updating the showing appointment

                      to reflect the change AND notifying and obtaining approval of the change by the Listing Brokerage.

NOTE: An infraction of this rule is a Category III violation and carries a $500 fine.

  1. SECTION 3.1: SHOWINGS AND NEGOTIATIONS – Not new. Streamlined back to the original rule. An example of a violation of this rule could be contacting the seller directly, without permission, to schedule a showing. 

The Cooperating Brokerage must arrange appointments for showings and conduct negotiations for the purchase of listed property in Canopy MLS with the Listing Brokerage, unless the Listing Brokerage gives permission to show or negotiate directly with the Seller, or After reasonable effort, the Cooperating Brokerage (subagent or buyer agent) is unable to contact the Listing Brokerage. However, the Listing Brokerage may preclude such direct negotiations by the Cooperating Brokerage (either subagent or buyer agent).

NOTE: An infraction of this rule is a Category II violation and carries a $100 fine.

  1. SECTION 3.1.1 UNAUTHORIZED ACCESS OF PROPERTY – New rule. Based on MLS violation hearing panel decisions rooted in the previous Section 3.1, and provides examples of violations.

Do not attempt to enter into, or upon, a listed property without express permission prior to the time the Seller has provided such authorization. Examples of violations:

              (a)  accidentally showing a property the day before the scheduled appointment,

              (b)  accessing a property outside of the appointed time frame,

              (c)  accessing a property without a confirmed appointment,

              (d)  showing a property at the wrong address, and

              (e)  walking around the property before the scheduled appointment.

NOTE: An infraction of this rule is a Category III violation and carries a $500 fine (same as before).

  1. SECTION 3.1.2: UNAUTHORIZED PRESENCE OF POTENTIAL BUYER AT APPOINTMENT OR SHOWINGNot new.  Was also once part of Section 3.1, but has been renumbered as a separate Section 3.1.2.

If the potential buyer will be present for an appointment or showing, then a licensed real estate agent must also attend, unless express written permission has been granted by the Listing Brokerage.

NOTE: An infraction of this rule is a Category III violation and carries a $500 fine (same as before).

  1. SECTION 6.3(c): UNAUTHORIZED USE OF THE SYSTEMModified as suggested by Canopy MLS legal counsel to prohibit use of MLS data by government agencies for the purpose of assessing additional real property back taxes.
  2. SECTION 8.4.1(f): CATEGORY I VIOLATIONSA list of violations with rule references and links to articles is added based on templates in Listing Data Checker. A Category 1 violation gives you the opportunity to fix the error within two business days.  If the warning period lapses without the correction, a fine notification will be sent along with a $100 fine.  If the agent makes the same mistake within the same calendar year, the agent will not get the warning period courtesy.  The violation notice will be sent with the $100 fine. 
  3. SECTION 8.4.3(f): CATEGORY III VIOLATIONSThe Clear Cooperation/late listing violation has changed from a Category II violation to a Category III violation.  Fine increased to $500. The Board of Directors felt this rule was important and warranted a higher fine.  When is a listing required to be submitted to Canopy MLS? This article and video will clarify. 
  4. SECTION 8.5: COMPLIANCE FINE SCHEDULE Canopy MLS requires a hearing for exceeding a certain number of violations within a calendar year which has been effective for addressing chronic violators – that’s 10 Category I violations, or 3 Category II or III violations. As a result, Canopy MLS has discontinued fine escalation for Categories I, II, and III.  Resetting the repeat violation count on January 1 every year will help staff quickly see when a hearing is needed.  Escalation will continue for Category IV. Canopy MLS has never had a repeat violation of Category IV.
  5. SECTION 8.5.1 MULTIPLE VIOLATIONS The new rule clarifies that when compliance staff identify multiple violations of the same offense by the same individual at the same time, a violation or immediate fine notice will be issued for the first violation at the lowest fine amount. Warning notice(s) are issued for the additional violations.  
  6. CANOPY DICTIONARY Most definitions from the rules have been moved to the Canopy Dictionary. When a defined term appears in the rules, it will appear as a link that can be clicked to open the Canopy Dictionary where the defined term appears.
  7. CANOPY MLS 55 AND OLDER STATEMENT OF QUALIFICATION List agents no longer have to submit the 55 and Older Statement of Qualification form on every listing in a 55+ community. However, the form must be submitted for any 55+ qualified subdivision that does not appear on the Canopy MLS list of known “55 and Older” communities, or if there is a concern that a subdivision is no longer qualified as “55 and Older.” 

Contact us:  If you have questions about the revised Canopy MLS Rules and Regulations, or anything else compliance-related, contact Canopy MLS Compliance at 704-940-3159, option 4 or [email protected].


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