| Member Resources |
Are You Up-to-Date on ‘Pocket Listings?'
Often when housing inventory is low and listings are high-end, which could reflect the market in some areas of San Mateo County, the issue of pocket listings comes up. Currently, the real estate industry handles pocket listings through the rules and regulations of the respective MLSs and not via statute.
Remember, an agent and broker may legally choose to not publish a listing on the MLS IF they obtain a waiver from the seller. Without the waiver, they are subject to a rule violations and complaints filed against them with the MLS. The agent and broker who fail to get a signed waiver may also be liable in a civil action by the seller for breach of a fiduciary duty. And if that weren't enough, in addition to being sued for damages, the agent and broker can face disciplinary actions from the BRE.
Previously when the issue of pocket listings was discussed within the committee structure of the California Association of REALTORS® (C.A.R.), the conclusion was that a legislative solution was not in our industry's best interest. The main reason being REALTORS® do not want to start having statutes define how we handle our own listings. The old saying "be careful what you ask for" applies to the dilemma of off-market listings and how we choose to deal with them. In summary, C.A.R. has determined that stronger and more aggressive enforcement of current rules are a better solution than a legislative "fix" that could possible lead to a slippery slope of having the Legislature determine how the sales of properties are listed.
