REALTOR® and Non-member Brokers, in good standing, shall be eligible to participate in this Service provided that the Broker of the firm shall agree in writing to conform to these Rules and Regulations, including the payment of the dues, service charges, fines and assessments.

Adherence of the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS® shall be a privilege and obligation of a Member of the Multiple Listing Service. Non-member MLS Participants shall be required to adhere to and follow the MLS Standards of Conduct.

ARTICLE 1

MLS DEFINED

A Multiple Listing Service is a means by which authorized Participants make blanket unilateral offers of compensation to other Participants (acting as subagents, buyer agents, or in other agency or non-agency capacities defined by law); by which cooperation among participants is enhanced; by which information is accumulated and disseminated to enable authorized Participants to prepare appraisals, analyses, and other valuations of real property for bona fide clients and customers; by which Participants engaging in real estate appraisal contribute to common databases; and is a facility for the orderly correlation and dissemination of listing information among the Participants so that they participants may better serve their clients and the public. Entitlement to compensation is determined by the cooperating broker’s performance as a procuring cause of the sale (or lease).

ARTICLE 2

MEMBERSHIP DEFINED

A. Participation:

Any REALTOR® of this or any other Board/Association who is a principal, partner, corporate officer or branch office manager acting on behalf of a principal without further qualification, except as otherwise stipulated in the Association's Bylaws, shall be eligible to participate in Multiple Listing upon agreeing in writing to conform to the Rules and Regulations thereof and to pay the cost incidental thereto and written verification of good standing is received from their primary Board/Association. However, under no circumstances is any individual or firm, regardless of membership status, entitled to Multiple Listing Service "Membership" or "Participation" unless they hold a current, valid Nevada real estate broker's license and are capable of offering and accepting cooperation and compensation to and from other Participants or are licensed or certified by an appropriate Nevada state regulatory agency to engage in the appraisal of real property. Use of information developed by or published by the Association Multiple Listing Service is strictly limited to the activities authorized under a Participant's licensure(s) or certification and unauthorized uses are prohibited. Further, none of the foregoing is intended to convey "Participation" or "Membership" or any right of access to information developed by or published by an Association Multiple Listing Service where access to such information is prohibited by law.

A non-member applicant for MLS Participation who is a principal, partner, corporate officer or branch office manager acting on behalf of a principal, shall supply evidence satisfactory to the Association's Membership Committee that has no record of recent or pending bankruptcy; has no record of official sanctions involving unprofessional conduct; agrees to complete a course of instruction as specified in Section 17 of these Rules and Regulations and shall pass such reasonable and non-discriminatory written examination thereon as may be required by the MLS; and shall agree that if elected as Participant, he will abide by such Rules and Regulations and pay the MLS fees and dues, including the non-member differential (if any), as from time to time established and agree to arbitrate contractual disputes with other Participants.

Under no circumstances is any individual or firm entitled to MLS Participation or Membership unless they hold a current, valid real estate broker's license and are capable of offering and accepting cooperation and compensation to and from other Participants, or are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property. Use of information developed by or published by the Association's Multiple Listing Service is strictly limited to the activities authorized under a Participant's licensure(s) or certification and unauthorized uses are prohibited. Further, none of the foregoing is intended to convey Participation or Membership or any right of access to information developed by the Association's Multiple Listing Service where access to such information is prohibited by law. Non-Member Participants admitted to the Multiple Listing Service of the Greater Las Vegas Association of REALTORS® may not use the official registered Multiple Listing Service logo of the NATIONAL ASSOCIATION OF REALTORS®.

B. Participant or Designated REALTOR®:

Where the term REALTOR® is used in this explanation of policy in connection with the word "Member" or the word "Participant", it shall be construed to mean the REALTOR® principal or principals of this or any other Board/Association, or a firm comprised of REALTOR® principals participating in a Multiple Listing Service owned and operated by the Association. It shall not be construed to include individuals other than a principal or principals who are REALTOR® Members of this or any other Board/Association, or who are legally entitled to participate without Association membership. However, under no circumstances is any individual or firm, regardless of membership status, entitled to MLS "Membership" or "Participation" unless they hold a current, valid real estate broker's license and are capable of offering and accepting cooperation and compensation to and from other Participants or are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property.

C. Subscriber:

The term "subscriber" refers to non-principal brokers, sales licensees, and licensed and certified real estate appraisers affiliated with an MLS Participant and includes a Participant's affiliated unlicensed administrative and clerical staff, personal assistants, and individuals seeking licensure or certification as real estate appraisers provided that any such individual is under the direct supervision of an MLS Participant or the Participant's licensed designee. If such access is available to unlicensed individuals, their access is subject to the Rules and Regulations, the payment of applicable fees and charges (if any), and the limitations and restrictions of state law. None of the foregoing shall diminish the Participant's ultimate responsibility for ensuring compliance with the Rules and Regulations of the MLS by all individuals affiliated with the Participant.

NOTE:

All Licensees affiliated with a Participant of the Multiple Listing Service shall be Subscribers of the Multiple Listing Service, unless they are subscribers of the Greater Las Vegas Association of REALTORS® Commercial Alliance Las Vegas.

(1). MLS Participant or the Participant's licensed designee shall be solely responsible for payment of any fees for unlicensed individuals.

(2). Each Subscriber shall be personally responsible for all his/her financial obligations, except as noted in Article 3A, or if the subscriber is dropped from an office without proper notification to the Association by the close of business on the 25th day of the month of the return of the Subscriber's license to the Real Estate Division by the Broker. In the case of failure of timely notice to the Association, the Broker will assume responsibility for all outstanding fees, fines, service charges and assessments owed by the subscriber to the Association. All past due fees, fines and charges shall be paid by the Subscriber prior to transfer or reinstatement. Service to the MLS shall be withheld until such open charges are paid in full.

D. Lockbox System:

The lockbox system is designated as an activity of the Greater Las Vegas Association of REALTORS® and shall be administered as such. (See GLVAR Policy 100-27).

E. Inactivation of Membership:

A Participant in good standing may request inactive status to the MLS Committee in writing. Such member in voluntary inactive status may re-enter the Service as a Participant provided he shall meet all requirements of membership fees hereinafter set forth in Article 3.

F. Return of Evidence of Membership:

In the event of suspension, termination, or resignation from the Service, or revocation of the right to participate in the Service, all evidences of membership in possession of the Participant and/or Subscriber shall be returned forthwith to the Service.

G. Waivers:

Subscribers who will not be using MLS services, due to the fact that they may be suffering from an extended illness or as otherwise provided by the Multiple Listing Service, may make written request to the MLS Committee on its approved form to waive MLS services for the period involved. Each request will be reviewed according to an established criterion on an individual basis by the MLS Committee and applicant will be notified of the decision. Any fee charged will be at the discretion of the MLS Committee upon approval of the Board of Directors. The licensee may voluntarily or involuntarily void the waiver during any certification period. If voluntarily voided, MLS services must be received and the full fee paid by the Subscriber for the remainder of the certification period. If involuntarily voided, the Subscriber must pay the full fee for MLS Services for the entire certification period. A Participant or Designated REALTOR® is not eligible for a waiver.

ARTICLE 3

APPLICATION, MEMBERSHIP, FEES, DEPOSITS & DUES

A. Fees:

The semi annual fee of each Participant, Subscriber and unlicensed assistant shall be an amount equal to a fee set by resolution of the MLS Committee and adoption of the annual budget, or any modification thereof. All service fees shall be paid semi annually in advance to MLS and are non-refundable. Fees shall be filed on the fifteenth day of the month preceding the beginning of the billing period and will be due on the first of the month following the billing. If not paid by the 10th of the month access to the MLS System and Supra System will be suspended and a late fee of Thirty Dollars ($30.00) shall be assessed to the Subscriber. Paying only one of the services or not paying the late fee will cause all services to remain suspended. On the 10th of the month, all outstanding fees shall be billed to the Broker with a notice that should any fees remain unpaid by the 25th of the month, service to the office will be suspended and all subscribers will be notified accordingly. Fees for unlicensed assistants shall be paid semi annually by the employing Participant and/or Subscriber. If a member wishes to contest the late fee, after having paid it, the member may complete a Request for Adjustment of Dues, Fees or Fines within thirty (30) days of the late fee infraction.

B. Termination:

Participants or subscribers of both the Multiple Listing Service and the Commercial Listing Service who elect to drop the Multiple Listing Service shall be subject to an administrative fee of $25.00 unless they submit a thirty (30) day written notice to the Multiple Listing Service. Participants, who request inactive status, may reactivate by paying a reinstatement fee, set by resolution of the MLS Committee, plus the regular current monthly fees.

C. Non-Member Processing Fees:

Any non-member applicant, prior to subscribing to the Multiple Listing Service shall pay an initial administrative processing fee of $75.00.

SECTION 1

LISTING PROCEDURES

Section 1.0 Listing Procedures:

Listings of real or personal property, which are listed subject to a real estate broker's license, located within the territorial jurisdiction of the Association, taken by Participants shall be delivered to the Multiple Listing Service within two (2) business days after all necessary signatures of Seller(s) have been obtained. The MLS shall also accept valid property management agreements. The Broker having the right to add, change status, terms, and rental rate per the approved listing contract.

Methods of submitting listings to the Service shall be in accordance with the guidelines established by the Multiple Listing Service.

Note 1: The Multiple Listing Service shall not require a Participant to submit listings on a form other than the form the Participant individually chooses to utilize provided the listing is of a type accepted by the Service, although the standard "Property Data Form" designated by the Association is required by the Multiple Listing Service. However, the Multiple Listing Service, through its legal counsel may:

(1) Reserve the right to refuse to accept a listing form which fails to adequately protect the interest of the public and Participant, and

(2) Assure that no listing form filed with the Multiple Listing Service establishes, directly or indirectly, any contractual relationship between the Multiple Listing Service and the client (Buyer or Seller(s).

The Multiple Listing Service shall accept Exclusive Right to Sell listing contracts and Exclusive Agency listing contracts, which make it possible for the listing broker to offer compensation to the other Participants of the Multiple Listing Service acting as buyer agents. The full gross listing price shall be stated in the contract. . The MLS shall also accept valid property management agreements. The Broker having the right to add, change status, terms, and rental rate per the approved listing contract.

The Service shall not accept net listings because they are deemed unethical and, in most states illegal. Open listings are not accepted except where required by law because the inherent nature of an open listing is such as to usually not include the authority to cooperate and compensate other brokers and inherently provides a disincentive for cooperation.

Note 2: A Multiple Listing Service does not regulate the type of listings its Members may take. This does not mean that a Multiple Listing Service must accept every type of listing. If it chooses to limit the kind of listings it will accept, it shall leave its Members free to accept such listings to be handled outside the Multiple Listing Service.

The listing agreement must include the Seller(s) authorization to submit the listing to the MLS.

NOTE: The following terms shall be defined as follows:

EXCLUSIVE RIGHT TO SELL LISTING:

A contractual agreement under which the listing broker becomes the agent of the seller(s) and the seller(s) agrees to pay a commission to the listing broker, regardless of whether the property is sold through the efforts of the listing broker, the seller(s) or anyone else; and a contractual agreement under which the listing broker becomes the agent of the seller(s) and the seller(s) agrees to pay a commission to the listing broker regardless of whether the property is sold through the efforts of the listing broker, the seller(s) or anyone else, except that the seller(s) may name one or more individuals or entities as exemptions in the listing agreement and if the property is sold to any exempted individual or entity, the seller(s) is not obligated to pay a commission to the listing broker.

EXCLUSIVE AGENCY LISTING:

A contractual agreement under which the listing broker becomes the agent of the seller(s) and the seller(s) agrees to pay a commission to the listing broker if the property is sold through the efforts of any real estate broker. If the property is sold solely through the efforts of the seller(s), the seller(s) is not obligated to pay a commission to the listing broker.

The Exclusive Right to Sell listing is the conventional form of listing submitted to the Multiple Listing Service in that the seller authorizes the listing broker to cooperate with and to compensate other brokers.

The Exclusive Agency listing also authorized the listing broker, as exclusive agent, to offer cooperation and compensation on blanket unilateral bases, but also reserves to the seller the general right to sell the property on an unlimited or restrictive basis. Exclusive Agency listing and Exclusive Right to Sell listing with named prospects exempted should be clearly distinguished by a simple designation such as a code or symbol from Exclusive Right to Sell listing with no named prospects exempted, since they can present special risks of procuring cause controversies and administrative problems not posed by Exclusive Right to Sell listing with no named prospects exempted.

Care should be exercised to ensure that different codes or symbols are used to denote Exclusive Agency and Exclusive Right to Sell listings with prospect reservations.

The only listings acceptable to the Multiple Listing Service shall be:

1. Exclusive Right to Sell, Exchange or Lease

2. Exclusive Agency

TYPES OF PROPERTIES:

Following are some of the types of properties that may be published through the Service and other types that may be filed with the Service at the Participant's option provided, however, that any listing submitted is entered into within the scope of the Participant's licensure as a real estate broker:

1. Single Family Residence

2. Condominium/Townhouses

3. Mobile/Manufactured Housing

4. Multiple Dwelling (limited to Duplex, Triplex, Fourplex and House+)

5. Land

6. Rental

7. Builder

Section 1.1 Listing Subject to Rules and Regulations of the Service:

Any listing taken on a contract to be filed with the Multiple Listing Service is subject to the Rules and Regulations of the Service upon signature of the seller(s).

Section 1.2 Detail on Listings Filed with the Service:

A listing agreement or property data form, when filed with the Multiple Listing Service by the listing broker, shall be complete in every detail which is ascertainable as specified on the Property Data Form.

Section 1.2(a) Assessor Land Use Code:

Listings must be added into the computer only in the class that concurs with the Assessor's Land Use Code.

Section 1.3 Exempted Listings:

If a Seller refuses to permit the listing to be disseminated by the Service, the Participant may then take the listing ("office exclusive") and such listing shall not be disseminated to the Participants. All exemptions shall be filed on the Instruction to Exclude form with MLS staff, within 2 business days of signing.

Section 1.4 Changes in Status of Listing:

Any changes in listed price or other change in the original Listing Agreement shall be made only when authorized in writing by the Seller and shall be filed with the Service within two (2) business days, after obtaining all signatures, by way of the Multiple Listing Service system available to the Member.

Section 1.5 Withdrawal of Listing Prior to Expiration:

Listings of property may be withdrawn from the Multiple Listing Service by the listing broker before the expiration date of the listing agreement, provided notice is filed with the Service, including a copy of the agreement between the Seller(s) and the listing broker, which authorizes the withdrawal. The withdrawal may be conditional or unconditional.

Sellers do not have the unilateral right to require a Multiple Listing Service to withdraw a listing without the listing broker's concurrence. However, when a Seller(s) can document that his exclusive relationship with the listing broker has been terminated, the Multiple Listing Service may remove the listing at the request of the Seller(s).

Section 1.6 Contingencies Applicable to Listings:

Any contingency or conditions of any term in a listing (excepting financing) shall be specified and noticed to the Participants. Suggested acts are sale of buyer's property, release of liens, short sale approval, court approval, zoning approval and inspections.

Section 1.7 Listing Price Specified:

The full gross listing price stated in the listing contract will be included in the information published in the MLS compilation of current listings, unless the property is subject to auction.

Section 1.8 Listing Multiple Parcel Properties:

All properties, which are to be or may be sold separately, must be indicated individually in the listing and on the property data form. When part of a listed property has been sold, proper notification should be given to the Multiple Listing Service.

Section 1.9 No Control of Commission Rates Or Fees Charged By Participants:

The Multiple Listing Service shall not fix, control, recommend, suggest or maintain commission rates or fees for services to be rendered by Participants. Further, the Multiple Listing Service shall not fix, control, recommend, suggest or maintain the division of commissions or fees between cooperating Participants or between Participants and non-Participants.

Section 1.10 Expiration, Extension and Renewal of Listings:

Any listing filed with the Multiple Listing Service automatically expires on the dates specified in the agreement unless renewed by the listing broker and notice of renewal or extension is filed with the Service prior to expiration.

If notice of renewal or extension is dated after the expiration date of the original listing, then a new listing must be secured for the listing to be filed with the Service. It should then be published as a new listing. Any extension or renewal of a listing must be signed by the Seller(s) and be filed with the Service.

Section 1.11 Termination Date on Listings:

Listings filed with the Service shall bear a definite and final termination date, as negotiated between the listing broker and the seller(s).

Section 1.12 Jurisdiction:

Only listings of the designated types of property located within the jurisdiction of the Greater Las Vegas Association of REALTORS® are required to be submitted to the Service. Listing of property located outside the state of Nevada will be accepted if submitted voluntarily by a Participant, but are not required by the Service and will be charged a listing fee.

NOTE: Clark County, Nevada and such other areas as are from time to time allocated to the Association by the Board of Directors of the NATIONAL ASSOCIATION OF REALTORS® being within the jurisdiction of the Greater Las Vegas Association of REALTORS®, will not be charged a listing fee.

Section 1.13 Listings of Suspended Participants:

When a Participant of the Service is suspended from the MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics, or Standards of Conduct for MLS Participation, Association Bylaws, MLS Rules and Regulations or Policies, or other membership obligation except failure to pay appropriate dues, fees or charges), all listings currently filed with the MLS by the suspended Participant shall, at the Participant's option, be retained in the Service until sold, withdrawn or expired, and shall not be renewed or extended by the MLS beyond the termination date of the listing agreement in effect when the suspension became effective. If a Participant has been suspended from the Association (except where MLS participation without Association membership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees or charges, an Association MLS is not obligated to provide MLS services, including continued inclusion of the suspended Participant's listings in the MLS compilation of current listing information. Prior to any removal of suspended Participant's listings from the MLS, the suspended Participant should be advised, in writing, of the intended removal so that the suspended Participant may advise his clients.

Section 1.14 Listings of Expelled Participants:

When a Participant of the Service is expelled from the MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics or Standards of Conduct for MLS Participation, Association Bylaws, MLS Rules and Regulations or Policies, or other membership obligations except failure to pay appropriate dues, fees, or charges), all listings currently filed with the MLS shall, at the expelled Participant's option, be retained in the Service until sold, withdrawn or expired, and shall not be renewed or extended by the MLS beyond the termination date of the listing agreement in effect when the expulsion became effective. If a Participant has been expelled from the Association (except where MLS Participation without Association membership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees or charges, an Association MLS is not obligated to provide MLS services including continued inclusion of the expelled Participant's listings in the MLS compilation of current listing information. Prior to any removal of an expelled Participant's listings from the MLS, the expelled Participant should be advised in writing of the intended removal so that the expelled Participant may advise his clients.

Section 1.15 Listings of Resigned Participants:

When a Participant resigns from the MLS, the MLS is not obligated to provide services, including continued inclusion of the resigned Participant's listings in the MLS compilation of current listing information. Prior to any removal of a resigned Participant's listings from the MLS, the resigned Participant should be advised in writing of the intended removal so that the resigned Participant may advise his clients.

SECTION 2

SELLING AND LEASING PROCEDURES

Section 2.0 Showings and Negotiations:

Appointments for showings and negotiations with the Seller(s) for the purchase of listed property filed with the Multiple Listing Service shall be conducted through the listing broker except under the following circumstances:

(a) The listing broker gives the cooperating broker specific authority to show and/or negotiate directly, or

(b) After reasonable effort, the cooperating broker cannot contact the listing broker or his representative. However, the listing broker, at his option, may preclude such direct negotiations by cooperating brokers.

Section 2.1 Presentation of Offers:

The listing broker must make arrangements to present the offer as soon as possible, or give the cooperating broker a satisfactory reason for not doing so.

Section 2.2 Submission of Written Offers:

All written offers received by the listing office, whether from another broker or through the listing office, shall be time stamped by the listing office, with the date and time received. All offers must be presented to the Seller(s) in their chronological order. The listing broker shall submit to the Seller(s) all written offers until closing unless precluded by law, government rule, and regulation or agreed otherwise in writing between the Seller(s) and the listing broker. Unless the subsequent offer is contingent upon the termination of an existing contract, the listing broker shall recommend that the Seller(s) obtain the advice of legal counsel prior to acceptance of the subsequent offer.

Section 2.3 Right of Cooperating Broker in Presentation of Offers:

The cooperating broker or his representative has the right to participate in the presentation to the Seller(s) or Lessor(s) of any offer he secures to purchase or lease. He does not have the right to be present at any discussion or evaluation of that offer by the Seller(s) or Lessor(s) and the listing broker. However, if the Seller(s) or Lessor(s) gives written instructions to the listing broker that the cooperating broker not be present when an offer the cooperating broker secured is presented, the cooperating broker has the right to a copy of the Seller(s) written instructions. None of the foregoing diminishes the listing broker's right to control the establishment of appointments for such presentations. The listing office must present all offers as soon as possible, after all signatures are obtained.

Section 2.4 Right of Listing Broker in Presentation of Counter-Offer:

The listing broker or his representative has the right to participate in the presentation of any counter-offer made by the Seller(s) or Lessor(s). He does not have the right to be present at any discussion or evaluation of a counter-offer by the purchaser or lessee. However, if the purchaser or lessee gives written instructions to the cooperating broker that the listing broker not be present when a counter-offer is presented, the listing broker has the right to a copy of the purchaser's or lessee's written instructions.

Section 2.5 Reporting Changes to the Service:

Sales, leases and the renewal, fulfillment or cancellation of contingencies shall be reported to the Service by the listing office within two (2) business days, after all signatures have been obtained. The listing office shall be responsible for all notices to the Service as required when member offices or non-member offices sell properties in the Service. All closed sales shall be reported to the Association within two (2) business days.

Sales of listed property shall be reported promptly to the MLS by listing brokers unless negotiations were carried on directly between a cooperating participant and the seller. In those instances, status changes, including final closing of sales, shall be reported to the multiple listing service by the listing broker within 48 hours after acceptance and recordation. If negotiations were carried on under Section 2* hereof, the cooperating broker shall report the status change to the listing broker within 48 hours after acceptance and the listing broker shall report the status change to the MLS within 48 hours after receiving notice from the cooperating broker.

*This section refers to negotiations carried on when the listing agent has authorized the selling agent to deal directly with the buyer.

Section 2.7 Advertising Of Listing Filed with Service:

A listing shall not be advertised by any Participant, other than the listing broker, without the prior consent of the listing broker. However, Participants that have not specifically declined ("opt-out") may display the current IDX Listings on their Internet web sites pursuant to these Rules and Regulations and GLVAR's MLS Policies.

Section 2.8 Reporting Cancellation of Pending Sale:

The listing broker shall report immediately to the Multiple Listing Service the cancellation of any pending sale, and the listing shall be reinstated immediately.

Section 2.9 Delivery to Buyer and Seller(s):

A copy of the signed and dated purchase contract shall be presented immediately to the Buyer(s) and Seller(s).

SECTION 3

REFUSAL TO SELL

Section 3.0 Refusal to Sell:

If the Seller(s) of any listed property filed with the Multiple Listing Service refuses to accept a written offer satisfying the terms and conditions stated in the listing, such fact shall be transmitted immediately to the Service and to all Participants.

SECTION 4

PROHIBITIONS

Section 4.0 Information for Participants Only:

Any listing filed with the Service shall not be made available to any broker or firm not a Member of the MLS without the prior consent of the listing broker.

Section 4.1 "For Sale" Signs:

Only the "For Sale" sign of the listing broker may be placed on a property.

Section 4.2 "Sold" Signs:

Prior to closing, only the "Sold" sign of the listing broker may be placed on a property, unless the listing broker authorizes the cooperating (selling) broker to post such a sign.

Section 4.3 Solicitation Of Listings Filed with the Service:

Participants shall not solicit a listing on property filed with the Service unless such solicitation is consistent with Article 16 of the REALTORS® Code of Ethics, it's Standards of Practice and it's Case Interpretations.

Section 4.4 Seller(s) Exclusions:

If a Seller(s) wishes to exclude a specific Participant or Subscriber from compensation he may do so in writing to his listing agent. The listing agent shall notify in writing said excluded Participant or Subscriber and MLS immediately upon receipt of the letter. Such information will remain confidential and shall not be disseminated outside the parties directly involved.

SECTION 5

DIVISION OF COMMISSIONS

Section 5.0 Compensation Specified on Each Listing:

The listing broker shall specify, on each listing filed with the Multiple Listing Service, the compensation offered to other Multiple Listing Service Participants for their services in the sale of such listing.

Such offers are unconditional except that entitlement to compensation is determined by the cooperating broker's performance as the procuring cause of the sale (or lease). The listing broker's obligation to compensate any cooperating broker as the procuring cause of the sale (or lease) may be excused if it is determined through arbitration that, through no fault of the listing broker and in the exercise of good faith and reasonable care, it was impossible or financially unfeasible for the listing broker to collect a commission pursuant to the listing agreement. In such instances, entitlement to cooperative compensation offered through MLS would be a question to be determined by an arbitration hearing panel based on all relevant facts and circumstances including, but not limited to, why it was impossible or financially unfeasible for the listing broker to collect some or all of the commission established in the listing agreement; at what point in the transaction did the listing broker know (or should have known) that some or all of the commission established in the listing agreement might not be paid; and how promptly had the listing broker communicated to cooperating brokers that the commission established in the listing agreement might not be paid.

Note 1: In filing a property with the Multiple Listing Service of an Association of REALTORS® the Participant of the Service is making blanket unilateral offers of compensation to the other MLS Participants, and shall therefore specify, on each listing filed with the Service, the compensation being offered to the other MLS Participants. Specifying the compensation on each listing is necessary, because the cooperating broker has the right to know what his compensation shall be prior to his endeavor to sell.

Note 2a: That compensation payable to cooperating brokers may be reduced if the gross commission established in the listing contract is reduced by a court or by a lender, (i.e. third party). In such instances, the fact that the gross commission is subject to court or to lender approval and either the potential reduction in compensation payable to cooperating brokers or the method by which the potential reduction in compensation will be calculated must be clearly communicated to potential cooperating brokers in Agent to Agent remarks prior to the time they produce an offer that ultimately results in a successful transaction.

Amount of Compensation:

The listing broker retains the right to determine the amount of compensation offered to other Participants (acting as buyer agents, or in other agency capacities defined by law) which may be the same or different.

This shall not preclude the listing Particip