The recent warning from NAR and resulting Inman News article about Zillow’s new ‘Coming Soon’ feature has raised questions among MIBOR members about the BLC® Listing Service policy related to ‘Coming Soon’ practices. Since Zillow’s feature requires you to check a box stating that you are complying with the Indiana license law requirements and the listing services rules and regulations, your vigilance to the license law requirements and the services policies are important.
NAR’s warning inferred that brokers who do not act in the best interests of their clients and fail to disclose the pros and cons of marketing strategies such as ‘Coming Soon’ advertising may be exposing themselves to legal and professional liability.
Last fall, the MIBOR Board of Directors refined the listing procedures policies recommend by the BLC® listing service Policy Committee related to the promotion of properties such as ‘Coming Soon Signs’ or distribution or promotional advertising such as Facebook posts or emailing flyers, etc. Remember Indiana License law requires a real estate brokerage to establish a written contractual relationship to advertise a property; this would include the placement of a sign, promotional advertising or entry into the BLC® listing service. Placement of a sign or promotion of a listing in any way prior to the written contractual relationship to advertise a property is a violation of Indiana Real Estate License Law.
The refined BLC® listing service listing procedure policy includes:
- Established an automatic fine of $100 for late entry of listings
- Allows for listings that are not yet available for showing (coming soon) to be available in the active status for up to 7 days from the list date
- Requires the use of a standard Exempt Listing Disclosure form and established a fine of $500 for failure to file an exemption.
The Exempt Listing Disclosure form is required for any listing that will not be submitted or if there is a delay in entry to the listing to BLC® listings service of more than two business days. Additionally, listings that are not available to be shown beyond 7 days from the listing date may not remain in the active status.
The BLC® listing service listing procure policy adopted last fall did require several clarifications to be consistent with the National Association of REALTORS® policy requirements which were approved at the MIBOR Board of Directors meeting on June 17th. Please make sure your brokerage is referencing the updated policy. Click here for the updated policy.