RealTown Words

A service in which member brokers pool their listings and offer cooperation and compensation to other member brokers. Usually, the MLS is operated by a local association of REALTORS®, but not always. The contractual obligations between the member brokers of a multiple-listing organization vary widely. Most provide that upon the sale of the property the commission is divided between the listing broker and the selling broker. The terms for division of the commission can vary from broker to broker.

Under most multiple-listing organizations, the broker securing the listing is not only authorized, but is usually obligated, to turn the listing over to the MLS within a definite period of time so that it can be distributed to the other member brokers. The length of time the listing broker has to offer the property exclusively, without notifying the other member brokers, varies widely.

Both the broker and the seller benefit from the multiple listing service. The broker makes available a sizable inventory of properties to sell and to be sold and is assured a portion of the commission if he or she lists the property or participates in the sale. The seller also gains because all members of the multiple-listing organization become aware of this property and can offer it to their prospective buyers.