Entering a property’s occupancy is now an optional field in Matrix™, and there’s a number of reasons for this change.
Prior to this change, the occupancy field was mandatory to activate a listing in the MLS® System. As a soft launch, the switch to an optional occupancy field came into effect on Feb. 5.
Why the occupancy field is optional
Since the shift in the market a couple years ago, CREB® has received several complaints from its members and the public related to the mandatory occupancy field in Matrix™. These complaints stem from two concerns:
- Members of the public are afraid that when it is advertised that their property is vacant, they become a larger target for break-ins or vandalism.
- While the database is complete with accurate information that our members use daily, members are concerned that when they receive an instruction from their client not to disclose the occupancy of a property, they do not have an option to comply with the instruction. This point is a concern for CREB®, as it affects the integrity of information in the MLS® System.
Inputting inaccurate data in the MLS® System is a violation of CREB® Rule Part II 6.05 which states:
“A Member will not use advertising that is inaccurate, misleading or in any way misrepresents the Member’s services or the Seller’s property.”
Over the last year, the number of calls increased. Based on that shift, we reached out to the Real Estate Council of Alberta (RECA) to determine how the Real Estate Act Rule 57(d) would apply. Rule 57(d) states:
“The basic obligations of an industry member who is in a sole agency relationship with a seller are: to obey all lawful instructions of the seller.”
Your obligation to clients
“In practice, obligation of undivided loyalty is when the agent presents options for the choices to their client; provides some advice around the various options; discloses to the client the possible implications of each choice; asks the client for their instruction; then follows that instruction,” said Charles Stevenson, RECA Registrar.
If a member inputs occupancy data into the MLS® System when they are explicitly told not to disclose and their client complains to the regulator, the member may face discipline by RECA. CREB® would also be obligated to discipline the member for breaching the above CREB® Rule.
The only other option would be for sellers to not use the MLS® System to advertise a listing, which could also erode market data through the reduced amount of information collected.
Disclose if you can
As a reminder, this change was made to support REALTORS® who have been explicitly told by their client not to disclose occupancy.
If you can, it’s important to use every field in Matrix™ to you and your client’s advantage. A vacant home could entice buyers who are looking for a quick close, while a tenanted property may bring quick offers from investors.
“It’s about being professional and in doing so ensuring that all of the fields are filled in that are appropriate to best represent your clients,” CREB® president Sarah Johnston stated. “Don’t just fill in the items to validate a listing, fill in the items to sell it!”
Discussing the value of disclosing as much information as possible to your seller is an important part of the marketing conversation. There is real value is getting your listing in front of buyers who are seeking the exact type of property you are selling.
“Listings agents with a vacant property are missing a competitive advantage if they don’t tag their listing as vacant, but some sellers don’t want to advertise this,” said CREB® CEO Alan Tennant. “The days of simply relying on a field to confirm certain property details, no matter how accurate the database, are behind us.”
CREB® Member Practice is committed to supporting members and reducing risk. If you have suggestions on how we can support our members with this field in Matrix™, please leave your comments below.
For further questions about the optional occupancy field in Matrix™, please contact CREB® Member Practice at mp@creb.ca or 403-781-1336.
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