Starting April 1st, LSTAR will enforce fines for specific MLS® Rule violations under Article 7 – Special Administrative Penalties.

• Fines Range: $300 to $2,000 for most breaches, with the maximum penalty being $10,000.
• Repeat Violations: Higher fines for repeated violations within a two-year period.
• Accuracy Required: Members must ensure all MLS® data, photos, and documents are accurate. Examples of breaches include:
• Listing Agreement and Data Input form content not matching
  (e.g., commission details).
• Using disclaimers like “Buyer to verify.”
• Prohibited Actions:
• Deleting Listing info/images before an off-market status change.
• Uploading listings solely to boost statistics (e.g., exclusive listings already sold).
• Listing the wrong property type for greater exposure (e.g., labelling a condo as a freehold).
• Early Complaint Resolution (ECR): When a Member breaches a rule covered under the ECR process, they will be contacted by the Association and given the opportunity to correct the issue. Only specific rules fall within this process.

For further information on the Special Administrative Penalties, click here.

For further information on the Early Complaint Resolution Process, click here.

• Each Member is responsible for their own compliance.
• Brokerages share accountability and are responsible for Members registered with their Brokerage as per Article 4 – Professional Standards Process.
• Under the REALTOR® Code – Article 22, principal brokerages are responsible for supervising and managing the activities of REALTORS® and staff under their authority.
  This includes:
• Establishing clear policies and reviewing office activities regularly.
• Taking reasonable steps to ensure adherence to rules and changes in legislation by all REALTORS® and staff.
• Taking corrective actions for violations.
• Reviewing transactions, including trust deposits, sales records, and contracts.

Random checks are indeed random. If paperwork is requested due to a complaint, this will be noted with the request. In addition to the iCheck tool offered through PropTx, LSTAR will continue to conduct 1 in every 20 data entry listings and amendments to ensure compliance and professionalism.

Document Requests

• Per MLS® Rule 2.05, documents must be provided by 11:59 p.m. the next business day. A $500 fine could be issued for the first offense; $1,000 for the second.
• Per MLS® Rule 2.06, non-compliance with audits can result in fines of $5,000 for the first offense and $10,000 for the second.

Process

• LSTAR will contact the Listing Salesperson and copy the Broker of Record when requesting documents. If needed, kindly forward the request to the appropriate individual(s) to ensure timely submission.

The objective is to enhance understanding and compliance with MLS® Rules through regular education and clear communication.

1. Bi-weekly Quizzes for the Following Two Months
• Quizzes will be distributed every two weeks to all Members.
• Focus: Specific MLS® Rules, fine amounts, and common violations.
• Purpose: Reinforce knowledge, promote compliance, and encourage engagement.
2. “Need to Know” Communications for the Following Two Months
• Sent bi-weekly to Members.
• Highlight 3-4 key rules or compliance topics.
• Provide examples of violations and best practices.
• Include updates on fines and penalties where applicable.

Outcome: A proactive approach to compliance education, fostering a culture of professional and accountability.

Promote Education: Encourage participation in LSTAR’s educational offerings within your brokerage.

Timely Documentation: Ensure required documents are submitted within the specified timeframe to maintain compliance.

Address Compliance Issues: Assist in resolving violations promptly to avoid escalation to Professional Standards.

Foster a Positive Audit Mindset: Embrace audits as an opportunity to enhance professionalism, deliver exceptional customer service, and strengthen trust in the REALTOR® Brand.

Your support is essential to maintaining high standards and reinforcing the integrity of our industry.