When the market is hot and properties are moving fast, it can be hard to keep cool. 

CREB^® Member Practice has recently seen an increase in compliance issues and will be providing members with hot market real estate rules and reminders over the coming weeks to keep pace with these trends.  

Today’s article provides an in-depth recap of last week’s Matrix™ reminders.

Reminder: Listings that are conditionally sold are required to be updated to Pending on the MLS^® System within two business days of the offer being accepted, even if the deposit has not been received.

Rule Part III 4(b) states “[c]hanges to an MLS^® Listing System Status must be made within two business days of the effective date of the status change.” If a conditional offer is accepted, remember to update the listing’s status to Pending within two business days of accepting the offer. 

Accurately reporting sales ensures that listing data on the MLS^® System is reflective of the true status of the property.

If a seller is concerned about the disclosure of the conditional sale on the MLS^® System in the absence of a deposit, we recommend that seller and listing agents explore the option of aligning the deposit due date in the purchase contract to be within two business days after acceptance. 

If a seller is waiting for additional deposits and is concerned about displaying the sale price on the MLS^® System before receiving the additional deposit, we recommend the additional deposit due date align with reporting requirements for the MLS^® System.

This allows sellers to explore all options if the additional deposit is not received and make decisions regarding the transaction before the listing agent is required to mark the listing as sold on the MLS^® System. 

Reminder: If a listing sells firm before being added to the MLS^® System, it cannot be added, once conditions have been removed.

The MLS^® System is a cooperative selling system. Only properties that are sold within the cooperative structure of the MLS^® System are permitted to be listed on the MLS^® System.

A property that is added to the MLS^® System and immediately changed to sold status is at risk for having the listing removed from the MLS^® System if it’s determined that it was unconditionally sold before the listing was activated.

Properties that are available or conditionally sold can be added to the MLS^® System because the owner can still consider accepting offers to purchase.

Please remember, even though the market is hot, it’s still important to keep a level head and manage expectations with clients. Professionalism is necessary even when frustrating situations arise.  

If you have any questions about these hot market reminders, please email CREB^® Member Practice at crebmp@creb.ca.