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RULES AND REGULATIONS

for the

MULTIPLE LISTING SERVICE

of the

Black Hills Association of REALTORS

1836 W. Kansas City StreetRapid City, SD 57702

Adopted: August 25, 1957As Amended 1992As Amended 1993As Amended 1996As Amended 2001As Amended 2001As Amended 2002As Amended 2003As Amended 2004As Amended 2006As Amended 2006As Amended 2007As Amended 2008As Amended 2009As Amended 2010As Amended 2011As Amended 2013

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INDEX

LISTING PROCEDURES ............................................................................................PAGE 5Section 1 Listing Procedures .............................................................. 5Section 1.1 Listings Subject to Rules and Regulations of the Service .. 7Section 1.2 Detail on Listings Submitted to the Service ....................... 7Section 1.3 Exempted Listings .............................................................. 7

Section 1.4 Change of Status of Listing................................................. 7Section 1.5 Withdrawal of Listing Prior to Expiration .......................... 7Section 1.6 Contingencies Applicable to Listings ................................. 8Section 1.65 UnderContract Listing 8Section 1.7 Listing Price Specified ........................................................ 8Section 1.8 Listing Multiple Unit Properties ......................................... 8Section 1.9 No Control of Commission Rates or Fees Charged by

Participants .......................................................................... 8Section 1.10 Expiration, Extension, and Renewal of Listings ................. 8Section 1.11 Termination Date on Listings ............................................. 8Section 1.12 Photographs of Listings ...................................................... 9Section 1.13 Jurisdiction .......................................................................... 9Section 1.14 Listings of Suspended Participants ..................................... 9Section 1.15 Listings of Expelled Participants ........................................ 9Section 1.16 Listings of Resigned Participants........................................ 9Section 1.17 MLS Photos 10Section 1.18 One Listing Per Class.. 10Section 1.19 Listing Agent Name or Contact Information.. 10Section 1.20 Sellers Disclosure Document. 10Section 1.21 Property Owner Name Requirement 10

SELLING PROCEDURES ........................................................................................... 10Section 2 Showings and Negotiations................................................. 10Section 2.1 Presentation of Offers ......................................................... 10Section 2.2 Submission of Written Offers ............................................. 11Section 2.3 Right of Cooperating Broker in Presentation Offer ............ 11Section 2.4 Right of Listing Broker in Presentation of Counter Offer .. 11Section 2.5 Reporting Sales to the Service ............................................ 11Section 2.6 Reporting Resolutions of Contingencies ............................ 11Section 2.7 Advertising of Listing Submitted to the Service................. 12Section 2.8 Reporting Cancellation of Pending Sale ............................. 12

REFUSAL TO SELL ............................................................................................. 12Section 3 Refusal to Sell ..................................................................... 12

PROHIBITIONS ............................................................................................. 12Section 4 Information for Participants Only ....................................... 12Section 4.1 For Sale Signs.................................................................. 12Section 4.2 Sold Signs........................................................................ 12Section 4.3 Solicitation of Listing Submitted to the Service ................. 12

DIVISION OF COMMISSIONS .................................................................................. 12Section 5 Division of Commissions .................................................... 12

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Section 5.0.1 Disclosing Potential Short Sales ......................................... 14Section 5.1 Participant as Principal ....................................................... 14Section 5.2 Participant as Purchaser ...................................................... 15Section 5.3 Dual or Variable Rate Commission Arrangements ............ 15

SERVICE CHARGES ............................................................................................. 15

Section 6 Service Fees and Charges ................................................... 15

COMPLIANCE WITH RULES ................................................................................... 15Section 7 Compliance with Rules-Authority to Impose Discipline ... 15Section 7.1 Compliance with Rules. .. 16Section 7.2 Applicability of Rules to Users and/or Subscribers ............ 16

MEETINGS ............................................................................................. 16Section 8 Meetings .............................................................................. 16Section 8.1 Meetings of the MLS Participants ...................................... 17Section 8.2 Conduct of the Meetings ..................................................... 17

ENFORCEMENT OF RULES OR DISPUTES ........................................................... 17Section 9 Consideration of Alleged Violations .................................. 17Section 9.1 Violations of Rules and Regulations................................... 17Section 9.2 Complaints of Unethical Conduct ....................................... 17

CONFIDENTIALITY OF MLS INFORMATION ...................................................... 17Section 10 Confidentiality of MLS Information ................................... 17Section 10.1 MLS Not Responsible for Accuracy of Information .......... 17Section 10.2 Access to Comparable and Statistical Information ............. 18

OWNERSHIP OF MLS COMPILATION* AND COPYRIGHT ................................ 18Section 11 Compilation......................................................................... 18Section 11.1 Compilation and Copyright................................................. 18

USE OF COPYRIGHTED MLS COMPILATION ...................................................... 18Section 12 Distribution ......................................................................... 18Section 12.1 Display ................................................................................ 19Section 12.2 Reproduction ....................................................................... 19

USE OF MLS INFORMATION ................................................................................... 20Section 13 Limitations on Use of MLS Information ............................ 20Section 13.1 Use of the Terms MLS and Multiple Listing Service. 20

CHANGES IN RULES AND REGULATIONS .......................................................... 20Section 14 Changes in Rules and Regulations ...................................... 20

INTERNET DATA EXCHANGE (IDX). 21Section 15 IDX Defined........................................................................ 21Section 15.1 Authorization ...................................................................... 21Section 15.2 Participation ........................................................................ 21Section 15.3 Display ................................................................................ 22

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Section 15.4 Service Fees and Charges ................................................... 23

VIRTUAL OFFICE WEBSITE (VOW) 23Section 16 VOW 23Section 16.1 VOW Defined.. 23Section 16.2 Display 24

Section 16.3 Consumer 24Section 16.4 Contact Display.. . 26Section 16.5 Unauthorized Uses. . 26Section 16.6 Withheld Listing Data .................... 26Section 16.7 Third Party. . 27Section 16.8 Accuracy of Information. 27Section 16.9 Information Refresh 27Section 16.10 Shall Not Distribute MLS Information... 27Section 16.11 Privacy Policy ..................................................................... 27Section 16.12 Excluded Listings 28Section 16.13 MLSNotification 28Section 16.14 Participant VOW. 28Section 16.15 Excluded Information. 28Section 16.16 Disclaimer... 28Section 16.17 Identification of Listing Firm, Listing Broker, Listing Agent 28Section 16.18 License Agreement Requirement. 29Section 16.19 Sellers Withhold. 29Section 16.20 Service Fees and Charges. 29

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Listing Procedures

Section 1. Listing Procedures: Listings of real or personal property of the following types locatedwithin the territorial jurisdiction of the Association of REALTORS or listings of property locatedoutside the Associations jurisdiction if submitted voluntarily by a Participant,taken by Participantson an exclusive right to sell or exclusive agency contract shall be delivered to the Multiple Listing

Service (MLS) whether by Participant entry or MLS entry, within seventy-two (72) hours after allnecessary signatures of seller(s) have been obtained: (Amended 11/91) (excepting weekends,holidays, postal holidays, and other reasonable exceptions). Any agent submitting a listing past the72-hour rule without the Certification to Withhold Property Listing Form signed by the seller, willbe fined ten dollars ($10.00) per day until such time as listing is provided on the service. For agentsor brokers submitting their own listings to the service, a copy of the Certification to WithholdProperty Listing Form must be supplied within twenty-four (24) hours upon request of the service(Amended 2004). Incomplete Listings supplied to the MLS for input are also subject to the 72-hour rule and fine. (Amended 2002)

Note 1: The Multiple Listing Service shall not require a Participant to submit listings on a formother than the form the Participant individually chooses to utilize provided the listing is of a typeaccepted by the Service, although a property data form may be required as approved by the MultipleListing Service. However, the Multiple Listing Service, through its legal counsel (Amended 2002):

1. may reserve the right to refuse to accept a listing form which fails to adequately protect theinterests of the public and the Participants

2. assure that no listing form submitted to the Multiple Listing Service establishes, directly orindirectly, any contractual relationship between the Multiple Listing Service and the client (buyeror seller)

The Multiple Listing Service shall accept exclusive right to sell listing contracts and exclusiveagency listing contracts, and may accept other forms of agreement which make it possible for thelisting broker to offer compensation to the other Participants of the Multiple Listing Service actingas subagents, buyer agents, or both. (Amended 11/96)

The listing agreement must include the sellers written authorization to submit the agreement to theMultiple Listing Service. (Amended 11/96)

The different types of listing agreements include:

(a) exclusive right to sell(b) exclusive agency(c) open(d) net

The Service may not accept net listings because they are deemed unethical, and in South Dakotaillegal.

The exclusive right to sell listing is the conventional form of listing submitted to the MultipleListing Service in that the seller authorizes the listing broker to cooperate with and to compensateother brokers. (Amended 4/92)

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The exclusive agency listing also authorizes the listing broker, as exclusive agent, to offercooperation and compensation on blanket unilateral bases, but also reserves to the seller the generalright to sell the property on an unlimited or restrictive basis. Exclusive agency listings and exclusiveright to sell listings with named prospects exempted should be clearly distinguished by a simpledesignation such as a code or symbol from exclusive right to sell listings with no named prospectsexempted, since they can present special risks of procuring cause controversies and administrative

problems not posed by exclusive right to sell listings with no named prospects exempted. Careshould be exercised to ensure that different codes or symbols are used to denote exclusive agencyand exclusive right to sell listings with prospect reservations. (Amended 4/92)

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. The MultipleListing Service shall decline to accept open listings (except where acceptance is required by law)and net listings, and it may limit its service to listings of certain kinds of property. But, if it choosesto limit the kind of listings it will accept, it shall leave its Members free to accept such listings to behandled outside the Multiple Listing Service. (Amended 2002)

Note 3:The Multiple Listing Service may accept exclusively listed property that is subject to

auction. If such listings do not show a listed price, they may be included in a separate section of theMLS compilation of current listings. (Adopted 11/92) (Amended 2002)

Types of Properties: Following are some of the types of properties that may be published throughthe Service, including types described in the preceding paragraph that are required to be submittedto the Service and other types that may be submitted to the Service at the Participants option

provided, however, that any listing submitted is entered into within the scope of the Participantslicensure as a real estate broker: (Amended 11/91) (Amended 2006)

1. RE (Residential)a. Single Familyb. Townhouse/Condoc. Recreational Propertyd. Mobile Homee. Mobile Home w/Land

2. LD (Land)a. Residential Lot/Acreageb. Unimproved Commercialc. Farm & Ranchd. Improved Commerciale. Forest/Wooded

3. MF (Multi-Family)a. Duplexesb. Triplexesc. Fourplexesd. Multiplexese. Other Multi-Family Properties

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4. CI (Commercial/Industrial)a. Officeb. Warehousec. Retaild. Industriale. Other

5. BI (Business Opportunities/Industries)a. Accommodationb. Liquor Onlyc. Serviced. Retail Salese. Wholesalef. Manufacturerg. Recreationh. Touristi. Restaurant Onlyj. Restaurant/Liquork. Undisclosedl. Other

Section 1.1Listings Subject to Rules and Regulations of the Service: Any listing taken on acontract to be submitted to the Multiple Listing Service is subject to the rules and regulations of theService upon signature of the seller(s). (Amended 2002)

Section 1.2Detail on Listings Submitted to the Service: A listing agreement or property dataform, when submitted to the Multiple Listing Service by the listing broker, shall be complete inevery detail which is ascertainable as specified on the property data form. (Amended 2002)

Section 1.3Exempted Listings: If the seller refuses to permit the listing to be disseminated bythe Service, the REALTOR may then take the listing (office exclusive) provided a Certificationto Withhold Property Listing signed by the seller stating that he does not desire the listing to bedisseminated by the Service or any other written communication to this effect, is held with thelisting. (Amended 2004)

Section 1.4Change of Status of Listing: Any change in listed price or other change in theoriginal listing agreement shall be made only when authorized in writing by the seller and shall besubmitted to the Service within twenty-four (24) hours (excepting weekends, holidays, and postalholidays) after the authorized change has been signed by appropriate parties and received by thelisting broker. If more than 24 hours pass, refer to Section 1: Listing Procedures. (Amended 2007)

Section 1.5Withdrawal of Listing Prior to Expiration: Listings of property may be withdrawnfrom the Multiple Listing Service by the listing broker before the expiration date of the listingagreement, provided notice is submitted to the Service, including a copy of the agreement betweenthe seller and the listing broker which authorizes the withdrawal. (Amended 2002)

Sellers do not have the unilateral right to require an MLS to withdraw a listing without the listingbrokers concurrence. However, when a seller(s) can document that his or her exclusive relationship

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with the listing broker has been terminated, the Multiple Listing Service may remove the listing atthe request of the seller. (Adopted 11/96)

Section 1.6Contingencies Applicable to Listings: Any contingency or conditions of any term ina listing shall be specified and noticed to the Participants.

Section 1.65Under Contract Listings: In the event that an offer is contingent upon the sale andclose of the buyers property where the Seller retains the right to continue to offer the property forsale and accept any offers until the contingency clause is removed in writing by the Buyer,Participants or Subscriber must flag the listing in the MLS as Under Contract Contingency.(Amended 2011)

Any other offer with or without contingencies upon the home sale and whether or not the offer issubject to specific time periods shall be reported as Under Contract to the Service within twenty-four (24) hours (excepting weekends, holidays, and postal holidays) after the authorized contracthas been signed by appropriate parties and received by the listing broker. If more than 24 hourspass, and upon complaint to the Service, the agent not reporting the Under Contract status to theService will be fined ten dollars ($10.00) per day until such time as the listing is reported as UnderContract on the Service. (Amended 2007)

Section 1.7Listing Price Specified: The full gross listing price stated in the listing contract willbe included in the information published in the MLS compilation of current listings, unless theproperty is subject to auction. (Amended 11/92)

Section 1.8Listing Multiple Unit Properties: All properties which are to be sold or which maybe sold separately must be indicated individually in the listing and on the property data form. Whenpart of a listed property has been sold, proper notification should be given to the Multiple ListingService.

Section 1.9No Control of Commission Rates or Fees Charged by Participants: The MultipleListing Service shall not fix, control, recommend, suggest, or maintain commission rates or fees forservices 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 cooperatingParticipants or between Participants and nonparticipants.

Section 1.10Expiration, Extension, and Renewal of Listings: Any listing submitted to theMultiple Listing Service automatically expires on the dates specified in the agreement, unlessrenewed by the listing broker and notice of renewal or extension is submitted to the Service prior toexpiration. (Amended 2002)

If notice of renewal or extension is dated after the expiration date of the original listing, then a newlisting must be secured for the listing to be submitted to the Service. It should then be published as anew listing. Any extension or renewal of a listing must be signed by the seller(s) and be submittedto the Service. (Amended 2002)

Section 1.11Termination Date on Listings: Listings submitted to the Service shall bear adefinite and final termination date, as negotiated between the listing broker and the seller.(Amended 2002)

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Section 1.12Photographs of Listings: Photos are required for all listings to be submitted to theService and attaching or supplying photos to a listing are the responsibility of the Participant exceptwhere sellers expressly direct that photographs of their property not appear in the MLScompilations. For listings submitted without photos, and where photos are not attached withinseventy-two (72) hours of the listing, the Association office, upon complaint, will take a photo and aservice fee of $25 per listing will be charged to Participant. (Amended 2012)

Section 1.13Jurisdiction: Only listings of the designated types of property located within thejurisdiction of the Association of REALTORS are required to be submitted to the Service. Listings ofproperty located outside the Associations jurisdiction will be accepted if submitted voluntarily by aParticipant, but cannot be required by the Service. (Amended 2002)

Section 1.14Listings of Suspended Participants: When a Participant of the Service issuspended from the MLS for failing to abide by a membership duty (i.e., violation of the Code ofEthics, Association bylaws, MLS bylaws, MLS rules and regulations, or other membershipobligation except failure to pay appropriate dues, fees, or charges), all listings currently submitted tothe MLS by the suspended Participant shall, at the Participants (designated brokers) option, beretained in the Service until sold, withdrawn or expired, and shall not be renewed or extended by theMLS beyond the termination date of the listing agreement in effect when the suspension becameeffective. If a Participant has been suspended from the Association (except where MLSparticipation without Association membership is permitted by law) or MLS (or both) for failure topay appropriate dues, fees, or charges, a Association MLS is not obligated to provide MLS services,including continued inclusion of the suspended Participants listings in the MLS compilation ofcurrent listing information. Prior to any removal of a suspended Participants listings from the MLS,

the suspended Participant should be advised, in writing, of the intended removal so that thesuspended Participant may advise his clients. (Amended 2002)

Section 1.15Listings of Expelled Participants: When a Participant of the Service is expelledfrom the MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics,Association bylaws, MLS bylaws, MLS rules and regulations, or other membership obligationsexcept failure to pay appropriate dues, fees, or charges), all listings currently submitted to the MLSshall, at the expelled Participants (designated brokers) option, be retained in the Service until sold,withdrawn, or expired, and shall not be renewed or extended by the MLS beyond the terminationdate of the listing agreement in effect when the expulsion became effective. If a Participant has beenexpelled from the Association (except where MLS participation without Association membership ispermitted by law) or MLS (or both) for failure to pay appropriate dues, fees, or charges, aAssociation MLS is not obligated to provide MLS services, including continued inclusion of theexpelled Participants listings in the MLS compilation of current listing information. Prior to any

removal of an expelled Participants listings from the MLS, the expelled Participant should beadvised, in writing, of the intended removal so that the expelled Participant may advise his clients.(Amended 2002)

Section 1.16Listings of Resigned Participants: When a Participant resigns from the MLS, theMLS is not obligated to provide services, including continued inclusion of the resigned Participantslistings in the MLS compilation of current listing information. Prior to any removal of a resignedParticipants listings from the MLS, the resigned Participant should be advised, in writing, of theintended removal so that the resigned Participant may advise his clients.

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Section 1.17MLS Photos: No readable signage, agent name, phone numbers, or contactinformation of any kind, shall be included on any photos submitted to the Multiple Listing Service.For Photos submitted in violation of this Rule, the Association Office, upon complaint, will removethe photo(s) and a service fee of $25 per listing will be charged to Participant (Amended01/09/2009).

Section 1.18One Listing Per Class: Only one listing per Type (Residential, Land, Multi-Family, and Business) and two listings per class for Commercial only to allow for office or retailshall be allowed on the Multiple Listing Service. If listing is entered in multiple Types, only onerecordable sale shall be allowed. For violation of this rule, the Association Office, upon complaint,will delete duplicate Type listings and/or delete duplicate sold data and a service fee of $25 perlisting will be charged to Participant. (Amended 2010)

Section 1.19Listing Agent Name or Contact Information: Listing Agent name, cell phone, orcontact information of any kind shall be in Agent Remarks only on the Multiple Listing Service. Forviolation of this rule, the Association Office, upon complaint, will move Agent information toAgent Remarks and a service fee of $25 per listing will be charged to Participant (Amended07/01/2008).

Section 1.20Sellers Property Condition Disclosure Statement Document: A completedSellers Property Condition Disclosure Statement must be attached to each Residential and MultiFamily (up to four (4) units) within seventy-two (72) hours of the listing being placed on theMultiple Listing Service unless excluded by state law or where the seller has expressly directed thatsuch disclosure documents not be disseminated through the MLS. For violation of this rule, theAssociation Office, upon complaint, will withdraw the listing and a service fee of $25 per listingwill be charged to Participant. (Amended 2013)

Section 1.21Property Owner Name Requirement: The complete and correct property ownername is a required field on the MLS service on each Residential and Multi Family (up to four (4)units) listing. For violation of this rule, the Association Office, upon complaint, will withdraw thelisting and a service fee of $25 per listing will be charged to Participant. (Amended 2012)

Selling Procedures

Section 2Showings and Negotiations: Appointments for showings and negotiations with theseller for the purchase of listed property submitted to the Multiple Listing Service shall beconducted through the listing broker, except under the following circumstances: (Amended 2002)

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

(b) After reasonable effort, the cooperating broker cannot contact the listing broker or hisrepresentative; however, the listing broker, at his option, may preclude such direct negotiationsby cooperating brokers. (Amended 4/92)

Section 2.1Presentation of Offers: The listing broker must make arrangements to present theoffer as soon as possible, or give the cooperating broker a satisfactory reason for not doing so.(Amended 4/92)

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Section 2.2Submission of Written Offers: The listing broker shall submit to the seller allwritten offers until closing unless precluded by law, government rule, regulation, or agreedotherwise in writing between the seller and the listing broker. Unless the subsequent offer iscontingent upon the termination of an existing contract, the listing broker shall recommend that theseller obtain the advice of legal counsel prior to acceptance of the subsequent offer. (Approved11/87)

Participants representing buyers or tenants shall submit to the buyer or tenant all offers and counter-offers until acceptance, and shall recommend that buyers and tenants obtain legal advice wherethere is a question about whether a pre-existing contract has been terminated. (Amended 2009)

Section 2.3Right of Cooperating Broker in Presentation of Offer: The cooperating broker(subagent or buyer agent) or his representative has the right to participate in the presentation to theseller or lessor of any offer he secures to purchase or lease. He does not have the right to be presentat any discussion or evaluation of that offer by the seller or lessor and the listing broker. However,if the seller or lessor gives written instructions to the listing broker that the cooperating broker notbe present when an offer the cooperating broker secured is presented, the cooperating broker has theright to a copy of the sellers written instructions. None of the foregoing diminishes the listing

brokers right to control the establishment of appointments for such presentations. (Amended 4/92)

Section 2.4Right of Listing Broker in Presentation of Counter-Offer: The listing broker or hisrepresentative has the right to participate in the presentation of any counter-offer made by the selleror lessor. He does not have the right to be present at any discussion or evaluation of a counter-offerby the purchaser or lessee (except when the cooperating broker is a subagent). However, if thepurchaser or lessee gives written instructions to the cooperating broker that thelisting broker not be present when a counter-offer is presented, the listing broker has the right to acopy of the purchasers or lessees written instructions. (Adopted 11/93)

Section 2.5Reporting Sales to the Service: Status changes, including final closing of sales

shall be reported to the Multiple Listing Service by the listing broker within twenty-four (24) hoursafter they have occurred. If negotiations were carried on under Section 2(a) or (b) hereof, thecooperating broker shall report the status changes to the listing broker within twenty-four (24) hoursafter occurrence and the listing broker shall report them to the MLS within twenty-four (24) hoursafter receiving notice from the cooperating broker. (Amended 2011)

Note: The listing agreement of a property filed with the MLS by the listing broker should include aprovision expressly granting the listing broker authority to advertise; to file the listing with theMLS; to provide timely notice of status changes of the listing to the MLS; and to provide salesinformation including selling price to the MLS upon sale of the property. If deemed desirable by theMLS to publish sales information prior to final closing (settlement) of a sales transaction, the listingagreement should also include a provision expressly granting the listing broker the right to authorizedissemination of this information by the MLS to its Participants. (Amended 2008)

Section 2.6Reporting Resolutions of Contingencies: The listing broker shall report to theMultiple Listing Service within twenty-four (24) hours that a contingency on file with the MultipleListing Service has been fulfilled or renewed, or the agreement cancelled.

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Section 2.7Advertising of Listing Submitted to the Service: A listing shall not be advertised byany Participant other than the listing broker without the prior consent of the listing broker.(Amended 2002)

Section 2.8Reporting Cancellation of Pending Sale: The listing broker shall report immediatelyto the Multiple Listing Service the cancellation of any pending sale, and the listing shall be

reinstated immediately.

Refusal to Sell

Section 3Refusal to Sell: If the seller of any listed property submitted to the Multiple ListingService 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. (Amended 2002)

Prohibitions

Section 4Information for Participants Only: Any listing submitted to the Service shall not bemade available to any broker or firm not a Member of the MLS without the prior consent of thelisting broker. (Amended 2002)

Section 4.1For Sale Signs:Only the For Sale sign of the listing broker may be placed on aproperty. (Amended 11/89)

Section 4.2-Sold Signs: Prior to closing, only the Sold sign of the listing broker may be placedon a property, unless the listing broker authorizes the cooperating (selling) broker to post such asign. (Amended 4/96)

Section 4.3-Solicitation of Listing Submitted to the Service: Participants shall not solicit a listingon property submitted to the Service unless such solicitation is consistent with Article 16 of theREALTORS Code of Ethics, its Standards of Practice, and its Case Interpretations. (Amended2002)

Note: This Section is to be construed in a manner consistent with Article 16 of the Code of Ethicsand particularly Standard of Practice 16-4. This Section is intended to encourage sellers to permittheir properties to be submitted to the Service by protecting them from being solicited, prior toexpiration of the listing, by brokers and salespersons seeking the listing upon its expiration.(Amended 2002)

Division of Commissions

Section 5Division of Commissions: The listing broker shall specify, on each listing filed withthe Multiple Listing Service, the compensation offered to other Multiple Listing ServiceParticipants for their services in the sale of such listing. Such offers are unconditional except thatentitlement to compensation is determined by the cooperating brokers performance as theprocuring cause of the sale (or lease) or as otherwise provided for in this rule. The listing brokersobligation to compensate any cooperating broker as the procuring cause of the sale (or lease) maybe excused if it is determined through arbitration that, through no fault of the listing broker and inthe exercise of good faith and reasonable care, it was impossible or financially unfeasible for thelisting 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

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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 collectsome or all of the commission established in the listing agreement; at what point in the transactiondid the listing broker know (or should have known) that some or all of the commission establishedin the listing agreement might not be paid; and how promptly had the listing broker communicatedto cooperating brokers that the commission established in the listing agreement might not be paid.

(Amended 11/98) (Amended 2002)

Note 1: The listing broker retains the right to determine the amount of compensation offered tosubagents and to buyer agents, which may be the same or different. (Amended 11/96)

This shall not preclude the listing broker from offering any MLS Participant compensation otherthan the compensation indicated on any listing published by the MLS, provided the listing brokerinforms the other broker, in writing, in advance of submitting an offer to purchase, and providedthat the modification in the specified compensation is not the result of any agreement among all orany other Participants in the Service. Any superseding offer of compensation must be expressed aseither a percentage of the gross sales price or as a flat dollar amount.

The Association Multiple Listing Service shall not have a rule requiring the listing broker todisclose the amount of total negotiated commission in his listing contract, and the AssociationMultiple Listing Service shall not publish the total negotiated commission on a listing that has beensubmitted to the MLS by a Participant. The Association Multiple Listing Service shall not disclosein any way the total commission negotiated between the seller and the listing broker. (Amended2002)

*The compensation specified on listings filed with the multiple listing service shall appear in one of

two forms. The essential and appropriate requirement by an association multiple listing service isthat the information to be published shall clearly inform the participants as to the compensation

they will receive in cooperative transactions, unless advised otherwise by the listing broker, in

writing, in advance of submitting an offer to purchase. The compensation specified on listingspublished by the Multiple Listing Service shall be shown in one of the following forms:

1. By showing a percentage of the gross selling price2. By showing a definite dollar amount

Note: Participants are allowed to offer cooperative compensation as a percentage of the net sales

price, with the net sales price defined as the gross sales price minus buyer upgrades (newconstruction) and seller concessions (as defined by the MLS unless otherwise defined by state law

or regulation). (Amended 2011)

Note 2: The listing broker may, from time to time, adjust the compensation offered to otherMultiple Listing Service Participants for their services with respect to any listing by advancepublished notice to the Service so that all Participants will be advised, as referenced in Section 1.4.(Amended 2002).Note 3: The Multiple Listing Service shall make no rule on the division of commissions betweenParticipants and nonparticipants. This should remain solely the responsibility of the listing broker.

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Note 4: Multiple listing services, at their discretion, may adopt rules and procedures enabling listingbrokers to communicate to potential cooperating brokers that gross commissions established inlisting contracts are subject to court approval, and that compensation payable to cooperating brokersmay be reduced if the gross commission established in the listing contract is reduced by a court. Insuch instances, the fact that the gross commission is subject to court approval and either thepotential 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 potentialcooperating brokers prior to the time they submit an offer that ultimately results in a successfultransaction.

Note 5:Nothing in these MLS rules precludes a listing participant and a cooperating participant, asa matter of mutual agreement, from modifying the cooperative compensation to be paid in the eventof a successful transaction.

Note 6: Multiple listing services must give participants the ability to disclose to other participantsany potential for a short sale. As used in these rules, short sales are defined as a transaction wheretitle transfers, where the sale price is insufficient to pay the total of all liens and costs of sale, andwhere the seller does not bring sufficient liquid assets to the closing to cure all deficiencies.Multiple listing services may, as a matter of local discretion, require participants to disclosepotential short sales when participants know a transaction is a potential short sale. In any instancewhere a participant discloses a potential short sale, they may as a matter of local discretion also bepermitted to communicate to other participants how any reduction in the gross commissionestablished in the listing contract required by the lender as a condition of approving the sale will beapportioned between listing and cooperating participants. All confidential disclosures andconfidential information related to short sales if allowed by local rules must be communicatedthrough dedicated fields or confidential remarks available only to participants and subscribers.(Amended 2009)

While MLSs are not required to authorize participants to offer cooperative compensation based onnet sale prices, those that do permit such offers must define seller concessions for purposes otherthan new construction, unless that term is defined by applicable state law or regulation. Thefollowing definition of seller concessions is suggested but not required for adoption:

Points paid by seller on behalf of buyer, seller-paid buyer closing costs, cash or cash allowances notescrowed, down payment assistance, additions or alterations not considered deferred maintenance,and personal property not usual and customary to such transactions conveyed from seller to buyerhaving an agreed upon monetary value. (Adopted 2013)

Section 5.0.1 - Disclosing Potential Short Sales: Participants may, but are not required to,disclose potential short sales (defined as a transaction where title transfers, where the sale price isinsufficient to pay the total of all liens and costs of sale and where the seller does not bringsufficient liquid assets to the closing to cure all deficiencies) to other participants and subscribers.(Amended 8/09)

Section 5.1Participant as Principal: If a Participant or any licensee (or licensed or certifiedappraiser) affiliated with a Participant has any ownership interest in a property, the listing of whichis to be disseminated through the Multiple Listing Service, that person shall disclose that interestwhen the listing is submitted to the Multiple Listing Service and such information shall bedisseminated to all Multiple Listing Service Participants. (Amended 2002)

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Section 5.2Participant as Purchaser: If a Participant or any licensee (including licensed andcertified appraisers) affiliated with a Participant wishes to acquire an interest in property listed withanother Participant, such contemplated interest shall be disclosed, in writing, to the listing brokernot later than the time an offer to purchase is submitted to the listing broker. (Adopted 2/92)

Section 5.3Dual or Variable Rate Commission Arrangements: The existence of a dual orvariable rate commission arrangement (i.e., one in which the seller/landlord agrees to pay aspecified commission if the property is sold/leased by the listing broker without assistance and adifferent commission if the sale/lease results through the efforts of a cooperating broker; or one inwhich the seller/landlord agrees to pay a specified commission if the property is sold/leased by thelisting broker either with or without the assistance of a cooperating broker and a differentcommission if the sale/lease results through the efforts of a seller/landlord) shall be disclosed by thelisting broker by a key, code, or symbol as required by the MLS. The listing broker shall, inresponse to inquiries from potential cooperating brokers, disclose the differential that would resultin either a cooperative transaction or, alternatively, in a sale/lease that results through the efforts ofthe seller/landlord. If the cooperating broker is a buyer/tenant representative, the buyer/tenantrepresentative must disclose such information to their client before the client makes an offer topurchase or lease. (Amended 2009)

Service Charges

Section 6Service Fees and Charges: The following service charges for operation of the MultipleListing Service are in effect to defray the costs of the Service and are subject to change from time totime in the manner prescribed.

(a) Initial Participation Fee: An applicant for participation in the Service shall pay an applicationfee, as determined by the Board of Directors, with such fee to accompany the application. Thisfee is subject to change from time to time by a majority vote of the Board of Directors.

(b) Access/Recurring Participation Fee: Upon payment of the application fee and/or any otherapplicable membership fees, the Participant will be granted access to the current listings throughthe computerized MLS. The Participant shall be responsible for a monthly subscription fee asdetermined and set by the Board of Directors, plus an additional amount as established by the Boardof Directors times the number of real estate salespersons and licensed or certified appraisers who have

access to and use of the service, whether licensed as a broker, sales licensee, or licensed or certified

appraiser who is employed by or affiliated as an independent contractor with Participant, and any fee asfrom time to time determined by the Executive Vice President as necessary to cover expenses formaterials supplied to Participants or individuals employed by or affiliated with the Participantwho has access to and who utilizes the Service.

(c) Dual Listing Fees: No fees shall be charged for dual listings. (Amended 2002)

(d) Addendum Fees: No fees shall be charged for addendums. (Amended 2002)

Compliance with Rules

Section 7Compliance with Rules-Authority to Impose Discipline. By becoming andremaining a participant or subscriber in this MLS, each participant and subscriber agrees to be

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subject to the rules and regulations and any other MLS governance provision. The MLS may,through the administrative and hearing procedures established in these rules, impose discipline forviolations of the rules and other MLS governance provisions. Discipline that may be imposed mayonly consist of one or more of the following:

a. letter of warning

b. letter of reprimand

c. attendance at MLS orientation or other appropriate courses or seminars which theparticipant or subscriber can reasonably attend taking into consideration cost, location, andduration

d. appropriate, reasonable fine not to exceed $15,000

e. probation for a stated period of time not less than thirty (30) days nor more than one (1)year

f. suspension of MLS rights, privileges, and services for not less than thirty (30) days normore than one (1) year

g. termination of MLS rights, privileges, and services with no right to reapply for a specifiedperiod not to exceed three (3) years. (Amended 2009)

Section 7.1Compliance with Rules: The following action may be taken for noncompliance withthe rules:

(a) For failure to pay any service charge or fee within twenty (20) days of the date due, and

provided that at least ten (10) days notice has been given, the Service shall be suspended untilservice charges or fees are paid in full

(b) For failure to comply with any other rule, the provisions of Sections 9 and 9.1 shall apply

Section 7.2-Applicability of Rules to Users and/or Subscribers:Non-principal brokers, saleslicensees, appraisers, and others authorized to have access to information published by the MLS aresubject to these rules and regulations and may be disciplined for violations thereof provided that theuser or subscriber has signed an agreement acknowledging that access to and use of MLSinformation is contingent on compliance with the rules and regulations. Further, failure of any useror subscriber to abide by the rules and/or any sanction imposed for violations thereof can subject theParticipant to the same or other discipline. This provision does not eliminate the Participants

ultimate responsibility and accountability for all users or subscribers affiliated with the Participant.(Adopted 4/92)

Meetings

Section 8Meetings: The Multiple Listing Service Committee shall meet for the transaction of itsbusiness at a time and place to be determined by the Committee or at the call of the Chairperson.

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Section 8.1-Meetings of the MLS Participants: The Committee may call meetings of theParticipants in the Service to be known as meetings of the Multiple Listing Service.

Section 8.2-Conduct of the Meetings: The Chairperson or Vice Chairperson shall preside at allmeetings or, in their absence, a temporary Chairperson from the membership of the Committee shallbe named by the Chairperson or, upon his failure to do so, by the Committee.

Enforcement of Rules or Disputes

Section 9Consideration of Alleged Violations: The Board of Directors shall give considerationto all written complaints having to do with violations of the rules and regulations. Complaints mustbe filed with the Association within one hundred eighty (180) days from the time that the event firstbecame known or reasonably should have become known (input date of the listing). Input date isdetermined by the audit feature of the MLS system. (Amended 2004)

Section 9.1Violations of Rules and Regulations: If the alleged offense is a violation of the rulesand regulations of the Service and does not involve a charge of alleged unethical conduct or requestfor arbitration, it may be administratively considered and determined by the Multiple ListingService Committee, and if a violation is determined, the Committee may direct the imposition ofsanction, provided the recipient of such sanction may request a hearing before the ProfessionalStandards Committee of the Association in accordance with the bylaws and rules and regulations ofthe Association of REALTORSwithin twenty (20) days following receipt of the Committeesdecision. If MLS has a procedure established to conduct hearings, the decision of the MLSCommittee tribunal may be appealed to the Board of Directors within twenty (20) days of thetribunals decision being rendered. (Amended 2002)

Section 9.2Complaints of Unethical Conduct: All other complaints of unethical conduct shallbe referred by the Committee to the Executive Vice President of the Association of REALTORS forappropriate action in accordance with the professional standards procedures established in theAssociations bylaws. (Amended 2002)

Confidentiality of MLS Information

Section 10Confidentiality of MLS Information: Any information provided by the MultipleListing Service to the Participants shall be considered official information of the Service. Suchinformation shall be considered confidential and exclusively for the use of Participants and realestate licensees affiliated with such Participants and those Participants who are licensed or certifiedby an appropriate state regulatory agency to engage in the appraisal of real property and licensed orcertified appraisers affiliated with such Participants.

Section 10.1MLS Not Responsible for Accuracy of Information: The information publishedand disseminated by the Service is communicated verbatim, without change by the Service, assubmitted to the Service by the Participant. The Service does not verify such information providedand disclaims any responsibility for its accuracy. Each Participant agrees to hold the Serviceharmless against any liability arising from any inaccuracy or inadequacy of the information suchParticipant provides. (Amended 2002)

Participant, by utilizing this service, shall indemnify and save MLS harmless from all penalties,claims, demands, liabilities, expenses and losses, of whatever nature arising from the dissemination

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or use of information provided by participant. This indemnification shall extend to and include areasonable attorneys fee incurred by the MLS for any litigation to which the MLS is made a party

or threatened to be made a party and which arises out of the dissemination or use of the informationprovided by participant. (Amended 2002)

Section 10.2MLSs may, as a matter of local determination, make statistical reports, sold

information, and other informational reports derived from the MLS available to REALTORS whodo not participate in the MLS but who are engaged in real estate brokerage, management, mortgagefinancing, appraising, land development, or building. Additional expenses incurred in providingsuch information to REALTORS who do not participate in the MLS may be included in the pricecharged for such information. Any information provided may not be transmitted, retransmitted, orprovided in any manner to any individual, office, or firm, except as otherwise authorized in theMLS rules and regulations.

MLSs may, as a matter of local determination, provide statistical reports, sold information, andother informational reports derived from the MLS to government agencies. MLSs may, as a matterof local discretion, require that such agencies (or representatives of such agencies) hold anappropriate form of membership in the MLS or in the association of REALTORS as a conditionof such access.

It is strongly recommended that any irrelevant information such as the names of current or formerowners, or information concerning the sales commission or the compensation offered or paid tocooperating brokers be deleted.

Ownership of MLS Compilation* and Copyright

Section 11Compilation: By the act of submitting any property listing content to the MLS, theParticipant represents that he has been authorized to grant and also thereby does grant authority forthe MLS to include the property listing content in its copyrighted MLS compilation and also in anystatistical report on comparables. Listing content includes, but is not limited to, photographs,images, graphics, audio and video recordings, virtual tours, drawings, descriptions, remarks,narratives, pricing information, and other details or information related to listed property.(Amended 2007)

Section 11.1Compilation and Copyright: All right, title, and interest in each copy of everyMultiple Listing compilation created and copyrighted by the Black Hills Association of REALTORSand in the copyrights therein, shall at all times remain vested in the Black Hills Association ofREALTORS. (Amended 2002)

* The term MLS Compilation, as used in Sections 11 and 12 herein, shall be construed toinclude any format in which property listing data is collected and disseminated to the Participants,including, but not limited to, bound book, loose leaf binder, computer data base, card file, or anyother format whatsoever.

Use of Copyrighted MLS Compilation

Section 12Distribution: Participants shall, at all times, maintain control over and responsibilityfor each copy of any MLS compilation leased to them by the Association of REALTORS, and shallnot distribute any such copies to persons other than subscribers who are affiliated with suchParticipant as licensees, those individuals who are licensed or certified by an appropriate state

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regulatory agency to engage in the appraisal of real property, and any other subscribers asauthorized pursuant to the governing documents of the MLS. Use of information developed by orpublished by a Association Multiple Listing Service is strictly limited to the activities authorizedunder a Participants 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 accessto information developed or published by a Association Multiple Listing Service where access to

such information is prohibited by law. (Amended 2002)

Section 12.1Display: Participants and those persons affiliated as licensees with such Participantsshall be permitted to display the MLS compilation to prospective purchasers only in conjunctionwith their ordinary business activities of attempting to locate ready, willing, and able buyers for theproperties described in said MLS compilation.

Section 12.2Reproduction: Participants or their affiliated licensees shall not reproduce any MLScompilation or any portion thereof, except in the following limited circumstances.

Participants or their affiliated licensees may reproduce from the MLS compilation and distribute toprospective purchasers a reasonable* number of single copies of property listing data contained inthe MLS compilation which relate to any properties in which the prospective purchasers are or may,in the judgment of the Participant or their affiliated licensees, be interested.

Reproductions made in accordance with this rule shall be prepared in such a fashion that theproperty listing data of properties other than that in which the prospective purchaser has expressedinterest, or in which the Participant or the affiliated licensees are seeking to promote interest, doesnot appear on such reproduction.

Nothing contained herein shall be construed to preclude any Participant from utilizing, displaying,distributing, or reproducing property listing sheets or other compilations of data pertainingexclusively to properties currently listed for sale with the Participant.

Any MLS information, whether provided in written or printed form, provided electronically, orprovided in any other form or format, is provided for the exclusive use of the Participant and thoselicensees affiliated with the Participant who are authorized to have access to such information. Suchinformation may not be transmitted, retransmitted, or provided in any manner to any unauthorizedindividual, office, or firm.

None of the foregoing shall be construed to prevent any individual legitimately in possession ofcurrent listing information, sold information, comparables, or statistical information from utilizingsuch information to support an estimate of value on a particular property for a particular client.However, only such information that a Association or Association -owned Multiple Listing Servicehas deemed to be nonconfidential and necessary to support the estimate of value may be reproducedand attached to the report as supporting documentation. Any other use of such information isunauthorized and prohibited by these rules and regulations. (Amended 2002)

*It is intended that the Participant be permitted to provide prospective purchasers with listing datarelating to properties which the prospective purchaser has a bona fide interest in purchasing or inwhich the Participant is seeking to promote interest. The term reasonable, as used herein, shouldtherefore be construed to permit only limited reproduction of property listing data intended tofacilitate the prospective purchasers decision-making process in the consideration of a purchase.

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Factors which shall be considered in deciding whether the reproductions made are consistent withthis intent and thus reasonable in number, shall include, but are not limited to, the total number oflistings in the MLS compilation, how closely the types of properties contained in such listingsaccord with the prospective purchasers expressed desires and ability to purchase, whether the

reproductions were made on a selective basis, and whether the type of properties contained in theproperty listing data is consistent with a normal itinerary of properties which would be shown to the

prospective purchaser.

Use of MLS Information

Section 13Limitations on Use of MLS Information: Use of information from MLS compilationof current listing information, from the Associations statistical report, or from any sold orcomparable report of the Association or MLS for public mass-media advertising by an MLSParticipant or in other public representations, may not be prohibited. (Amended 2002)

However, any advertising or other forms of public representations based in whole or in part oninformation supplied by the Association or its MLS must clearly demonstrate the period of timeover which such claims are based and must include the following, or substantially similar, notice:

This representation is based in whole or in part on data supplied by the Black HillsAssociation of REALTORS or its Multiple Listing Service for the period (date)through (date). Neither the Association nor its MLS guarantees or is in any wayresponsible for its accuracy. Data maintained by the Association or its MLS may notreflect all real estate activity in the market. (Amended 2002)

Section 13.1Use of the Terms MLS and Multiple Listing Service:No MLS participant,subscriber or licensee affiliated with any participant shall, through the name of their firm, theirURLs, their e-mail addresses, their website addresses, or in any other way represent, suggest, orimply that the individual or firm is an MLS, or that they operate an MLS. Participants, subscribersand licensees affiliated with participants shall not represent, suggest, or imply that consumers orothers have direct access to MLS databases, or that consumers or others are able to search MLSdatabases available only to participants and subscribers. This does not prohibit participants andsubscribers from representing that any information they are authorized under MLS rules to provideto clients or customers is available on their websites or otherwise. (Adopted 07/08)

Changes in Rules and Regulations

Section 14Changes in Rules and Regulations/Voting on Other Matters: Amendments to therules and regulations of the Service shall be by that number of votes that would constitute a majorityof the total number of REALTOR Members of the Black Hills Association of REALTORS, andsubject to approval by the Board of Directors of the Black Hills Association of REALTORS. Forall other matters before the committee not pertaining to amendments to the rules and regulations ofthe Service, such matters may be decided by a majority of that number of votes represented byParticipants at the committee meeting at which a quorum is present (see Bylaws Article XVIII,Section 5). (Amended 08/2007)

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Internet Data Exchange (IDX)

(Adopted 2002, Amended 2007, 2009, 2010, and 2013)

Section 15IDX Defined: IDX affords MLS participants the ability to authorize limited electronicdisplay of their listings by other participants. (Amended 2013)

Section 15.1Authorization: Participants consent for display of their listings by otherparticipants pursuant to these rules and regulations must be established in writing. If a participantwithholds consent on a blanket basis to permit the display of that participants listings, thatparticipant may not download, frame or display the aggregated MLS data of other participants.Even where participants have given blanket authority for other participants to display their listingson IDX sites, such consent may be withdrawn on a listing-by-listing basis where the seller hasprohibited all Internet display. (Amended 2013)

Section 15.2Participation: Participation in IDX is available to all MLS Participants who consentto display of their listings by other Participants.

Section 15.2.1Participants must notify the MLS of their intention to display IDX information and

must give the MLS direct access for purposes of monitoring/ensuring compliance with applicablerules and policies. (Amended 2013)

Section 15.2.2 MLS participants may not use IDX-provided listings for any purpose other thandisplay as provided for in these rules. This does not require participants to prevent indexing of IDXlistings by recognized search engines. (Amended 2013)

Section 15.2.3 Listings, including property addresses, can be included in IDX displays exceptwhere a seller has directed their listing brokers to withhold their listing or the listings propertyaddress from all display on the Internet (including, but not limited to, publicly-accessible websitesor VOWs). (Amended 2013)

Section 15.2.4 Participants may select the listings they choose to display on their IDX sites basedonly on objective criteria including, but not limited to, factors such as geography or location(uptown, downtown, etc.), list price, type of property (e.g., condominiums, cooperatives,single-family detached, multi-family), cooperative compensation offered by listing brokers, type oflisting (e.g., exclusive right to sell or exclusive agency), or the level of service being provided bythe listing firm. Selection of listings displayed on any IDX site must be independently made by eachParticipant.

Section 15.2.5 Participants must refresh all MLS downloads and IDX displays automatically fedby those downloads at least once every three (3) days. (Amended 2013)

Section 15.2.6 Except as provided in the IDX policy and these rules, an IDX site or a participantor user operating an IDX site or displaying IDX information as otherwise permitted may notdistribute, provide, or make any portion of the MLS database available to any person or entity.(Amended 2013)

Section 15.2.7 Any IDX display controlled by a participant must clearly identify the name of thebrokerage firm under which they operate in a readily visible color and typeface. For purposes of the

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IDX policy and these rules, control means the ability to add, delete, modify and update

information as required by the IDX policy and MLS rules. (Amended 2013)

Section15.2.8 Any IDX display controlled by a participant or subscriber that

a. allows third-parties to write comments or reviews about particular listings or displays a

hyperlink to such comments or reviews in immediate conjunction with particular listings, orb. displays an automated estimate of the market value of the listing (or hyperlink to suchestimate) in immediate conjunction with the listing,

either or both of those features shall be disabled or discontinued for the sellers listings at the

request of the seller. The listing broker or agent shall communicate to the MLS that the seller haselected to have one or both of these features disabled or discontinued on all displays controlled byparticipants. Except for the foregoing and subject to Section 15.2.9, a participants IDX displaymay communicate the participants professional judgment concerning any listing. Nothing shallprevent an IDX display from notifying its customers that a particular feature has been disabled atthe request of the seller. (Amended 2013)

Section 15.2.9 Participants shall maintain a means (e.g., e-mail address, telephone number) toreceive comments about the accuracy of any data or information that is added by or on behalf of theparticipant beyond that supplied by the MLS and that relates to a specific property. Participantsshall correct or remove any false data or information relating to a specific property upon receipt of acommunication from the listing broker or listing agent for the property explaining why the data orinformation is false. However, participants shall not be obligated to remove or correct any data orinformation that simply reflects good faith opinion, advice, or professional judgment. (Amended2013)

Section 15.2.10 Deleted March 2013

Section 15.3Display: Display of listing information pursuant to IDX is subject to the followingrules:

Section 15.3.1 Listings displayed pursuant to IDX shall contain only those fields of data designatedby the MLS. Display of all other fields (as determined by the MLS) is prohibited. Confidentialfields intended only for other MLS participants and users (e.g., cooperative compensation offers,showing instructions, property security information, etc.) may not be displayed. (Amended 2013)

Section 15.3.1.1 The type of listing agreement (e.g., exclusive right to sell, exclusive agency, etc.)may not be displayed. (Amended 2013)

Section 15.3.2 Participants shall not modify or manipulate information relating to otherParticipants' listings. (This is not a limitation on site design but refers to changes to actual listingdata.)

Section 15.3.3 All listings displayed pursuant to IDX shall identify the listing firm in a reasonablyprominent location and in a readily visible color and typeface not smaller than the median used inthe display of listing data. (Amended 2011)

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Section 15.3.4 All listings displayed pursuant to IDX shall identify the listing agent.

Section 15.3.5 Non-principal brokers and sales licensees affiliated with IDX Participants maydisplay information available through IDX on their own websites subject to their Participant'sconsent and control and the requirements of state law and/or regulation.

Section 15.3.6 Deleted November 2006.

Section 15.3.7 All listings displayed pursuant to IDX shall show the MLS as the source of theinformation. (Amended 2009)

Section 15.3.8 Participants (and their affiliated licensees, if applicable) shall indicate on theirwebsites that IDX information is provided exclusively for consumers' personal, non-commercial useand may not be used for any purpose other than to identify prospective properties consumers maybe interested in purchasing, and that the data is deemed reliable but is not guaranteed accurate bythe MLS. The MLS may, at its discretion, require use of other disclaimers as necessary to protectparticipants and/or the MLS from liability. (Amended 2009)

Section 15.3.10 The right to display other Participants' listings pursuant to IDX shall be limited toa Participant's office(s) holding participatory rights in this MLS.

Section 15.3.11 Display of expired, withdrawn, pending, and sold listings is prohibited. (Amended2013)

Section 15.3.12 Display of sellers(s) and/or occupants(s) name(s), phone number(s), and e-mailaddress(es) is prohibited. (Amended 2013)

Section 15.4Service Fees and Charges: Service fees and charges for participation in IDX shallbe as established by the Board of Directors.

Virtual Office Websites (VOW)

(Adopted 2009)

Section 16

Virtual Office Websites (VOWs)

Section 16.1 VOW Defined

a. A Virtual Office Website (VOW) is a participants Internet website, or a feature of aparticipants website, through which the participant is capable of providing real estate brokerageservices to consumers with whom the participant has first established a broker-consumerrelationship (as defined by state law) where the consumer has the opportunity to search MLSlisting information, subject to the participants oversight, supervision, and accountability. A non-principal broker or sales licensee affiliated with a participant may, with his or her participantsconsent, operate a VOW. Any VOW of a non-principal broker or sales licensee is subject to theparticipants oversight, supervision, and accountability.

b. As used in Section 19 of these rules, the term participant includes a participants affiliated non-principal brokers and sales licenseesexcept when the term is used in the phrases participants

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consent and participants oversight, supervision, and accountability. References to VOW

and VOWs include all Virtual Office Websites, whether operated by a participant, by a non-principal broker or sales licensee, or by an Affiliated VOW Partner (AVP) on behalf of aparticipant.

c. Affiliated VOW Partner (AVP) refers to an entity or person designated by a participant to

operate a VOW on behalf of the participant, subject to the participants supervision,accountability, and compliance with the VOW policy. No AVP has independent participationrights in the MLS by virtue of its right to receive information on behalf of a participant. No AVPhas the right to use MLS listing information, except in connection with operation of a VOW onbehalf of one or more participants. Access by an AVP to MLS listing information is derivative ofthe rights of the participant on whose behalf the AVP operates a VOW.

d. As used in Section 19 of these rules, the term MLS listing information refers to active listinginformation and sold data provided by participants to the MLS and aggregated and distributed bythe MLS to participants.

Section 16.2

a. The right of a participants VOW to display MLS listing information is limited to that supplied bythe MLS(s) in which the participant has participatory rights. However, a participant with officesparticipating in different MLSs may operate a master website with links to the VOWs of the otheroffices.

b. Subject to the provisions of the VOW policy and these rules, a participants VOW, including anyVOW operated on behalf of a participant by an AVP, may provide other features, information, orfunctions, e.g., Internet Data Exchange (IDX).

c. Except as otherwise provided in the VOW policy or in these rules, a participant need not obtainseparate permission from other MLS participants whose listings will be displayed on theparticipants VOW.

Section 16.3

a. Before permitting any consumer to search for or retrieve any MLS listing information on his orher VOW, the participant must take each of the following steps.

i. The participant must first establish with that consumer a lawful broker-consumer relationship(as defined by state law), including completion of all actions required by state law inconnection with providing real estate brokerage services to clients and customers (hereinafter,

Registrants). Such actions shall include, but are not limited to, satisfying all applicableagency, non-agency, and other disclosure obligations, and execution of any requiredagreements.

ii. The participant must obtain the name of and a valid e-mail address for each Registrant. Theparticipant must send an e-mail to the address provided by the Registrant confirming that theRegistrant has agreed to the terms of use (described in Subsection d., below). The participantmust verify that the e-mail address provided by the Registrant is valid and that the Registranthas agreed to the terms of use.

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iii. The participant must require each Registrant to have a user name and a password, thecombination of which is different from those of all other Registrants on the VOW. Theparticipant may, at his or her option, supply the user name and password or may allow theRegistrant to establish its user name and password. The participant must also assure that any e-mail address is associated with only one user name and password.

b. The participant must assure that each Registrants password expires on a date certain, but mayprovide for renewal of the password. The participant must at all times maintain a record of thename, e-mail address, user name, and current password of each Registrant. The participant mustkeep such records for not less than one hundred eighty (180) days after the expiration of thevalidity of the Registrants password.

c. If the MLS has reason to believe that a participants VOW has caused or permitted a breach in thesecurity of MLS listing information or a violation of MLS rules, the participant shall, uponrequest of the MLS, provide the name, e-mail address, user name, and current password, of anyRegistrant suspected of involvement in the breach or violation. The participant shall also, ifrequested by the MLS, provide an audit trail of activity by any such Registrant.

d. The participant shall require each Registrant to review and affirmatively to express agreement (bymouse click or otherwise) to a terms of use provision that provides at least the following:

i. that the Registrant acknowledges entering into a lawful consumer-broker relationship with theparticipant

ii. that all information obtained by the Registrant from the VOW is intended only for theRegistrants personal, non-commercial use

iii. that the Registrant has a bona fide interest in the purchase, sale, or lease of real estate of thetype being offered through the VOW

iv. that the Registrant will not copy, redistribute, or retransmit any of the information provided,

except in connection with the Registrants consideration of the purchase or sale of anindividual property

v. that the Registrant acknowledges the MLS ownership of and the validity of the MLScopyright in the MLS database

e. The terms of use agreement may not impose a financial obligation on the Registrant or create anyrepresentation agreement between the Registrant and the participant. Any agreement entered intoat any time between the participant and Registrant imposing a financial obligation on theRegistrant or creating representation of the Registrant by the participant must be establishedseparately from the terms of use, must be prominently labeled as such, and may not be accepted

solely by mouse click.

f. The terms of use agreement shall also expressly authorize the MLS and other MLS participants ortheir duly authorized representatives to access the VOW for the purposes of verifying compliancewith MLS rules and monitoring display of participants listings by the VOW. The agreement mayalso include such other provisions as may be agreed to between the participant and the Registrant.

Section 16.4

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A participants VOW must prominently display an e-mail address, telephone number, or specificidentification of another mode of communication (e.g., live chat) by which a consumer can contactthe participant to ask questions or get more information about any property displayed on the VOW.The participant or a non-principal broker or sales licensee licensed with the participant must bewilling and able to respond knowledgeably to inquiries from Registrants about properties within themarket area served by that participant and displayed on the VOW.

Section 16.5

A participants VOW must employ reasonable efforts to monitor for and prevent misappropriation,scraping, and other unauthorized uses of MLS listing information. A participants VOW shall utilize

appropriate security protection such as firewalls as long as this requirement does not imposesecurity obligations greater than those employed concurrently by the MLS.

Section 16.6

a. A participants VOW shall not display the listings or property addresses of any seller who hasaffirmatively directed the listing broker to withhold the sellers listing or property address from

display on the Internet. The listing broker shall communicate to the MLS that the seller haselected not to permit display of the listing or property address on the Internet. Notwithstandingthe foregoing, a participant who operates a VOW may provide to consumers via other deliverymechanisms, such as e-mail, fax, or otherwise, the listings of sellers who have determined not tohave the listing for their property displayed on the Internet.

b. A participant who lists a property for a seller who has elected not to have the property listing orthe property address displayed on the Internet shall cause the seller to execute a document thatincludes the following (or a substantially similar) provision.

Seller Opt-out Form

1. Check one.

a. I have advised my broker or sales agent that I do not want the listed property to be displayedon the

Internet.

b. I have advised my broker or sales agent that I do not want the address of the listed property tobe displayed

on the Internet.

2. I understand and acknowledge that if I have selected Option a., consumers who conduct searches

for listingson the Internet will not see information about the listed property in response to their searches.

_____________Initials of Seller

c. The participant shall retain such forms for at least one (1) year from the date they are signed orone (1) year from the date the listing goes off the market, whichever is greater.

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Section 16.7

a. Subject to Subsection b., below, a participants VOW may allow third-parties:

i. to write comments or reviews about particular listings or display a hyperlink to such commentsor reviews in immediate conjunction with particular listings, or

ii. to display an automated estimate of the market value of the listing (or hyperlink to suchestimate) in immediate conjunction with the listing.

b. Notwithstanding the foregoing, at the request of a seller, the participant shall disable ordiscontinue either or both of those features described in Subsection a. as to any listing of theseller. The listing broker or agent shall communicate to the MLS that the seller has elected tohave one or both of these features disabled or discontinued on all participants websites. Subject

to the foregoing and to Section 19.8, a participants VOW may communicate the participants

professional judgment concerning any listing. A participants VOW may notify its customers thata particular feature has been disabled at the request of the seller.

Section 16.8

A participants VOW shall maintain a means (e.g., e-mail address, telephone number) to receivecomments from the listing broker about the accuracy of any information that is added by or onbehalf of the participant beyond that supplied by the MLS and that relates to a specific propertydisplayed on the VOW. The participant shall correct or remove any false information relating to aspecific property within forty-eight (48) hours following receipt of a communication from thelisting broker explaining why the data or information is false. The participant shall not, however, beobligated to correct or remove any data or information that simply reflects good faith opinion,advice, or professional judgment.

Section 16.9

A participant shall cause the MLS listing information available on its VOW to be refreshed at leastonce every three (3) days.

Section 16.10

Except as provided in these rules, in the NATIONAL ASSOCIATION OF REALTORS VOW policy, orin any other applicable MLS rules or policies, no participant shall distribute, provide, or makeaccessible any portion of the MLS listing information to any person or entity.

Section 16.11

A participants VOW must display the participants privacy policy informing Registrants of all of

the ways in which information that they provide may be used.

Section 16.12

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A participants VOW may exclude listings from display based only on objective criteria, including,but not limited to, factors such as geography, list price, type of property, cooperative compensationoffered by listing broker, and whether the listing broker is a REALTOR.

Section 16.13

A participant who intends to operate a VOW to display MLS listing information must notify theMLS of its intention to establish a VOW and must make the VOW readily accessible to the MLSand to all MLS participants for purposes of verifying compliance with these rules, the VOW policy,and any other applicable MLS rules or policies.

Section 16.14

A participant may operate more than one VOW himself or herself or through an AVP. A participantwho operates his or her own VOW may contract with an AVP to have the AVP operate otherVOWs on his or her behalf. However, any VOW operated on behalf of a participant by an AVP issubject to the supervision and accountability of the participant.

Section 16.15

A participants VOW may not make available for search by or display to Registrants any of thefollowing information:

a. expired, withdrawn, or pending (under contract) listings

b. the compensation offered to other MLS participants

c. the type of listing agreement, i.e., exclusive right-to-sell or exclusive agency

d. the sellers and occupants name(s), phone number(s), or e-mail address(es)

e. instructions or remarks intended for cooperating brokers only, such as those regarding showings

or security of listed propertyf. sold information

Section 16.16

A participant shall cause to be placed on his or her VOW a notice indicating that the MLS listinginformation displayed on the VOW is deemed reliable, but is not guaranteed accurate by the MLS.A participants VOW may include other appropriate disclaimers necessary to protect the participantand/or the MLS from liability.

Section 16.17

A participant shall cause any listing that is displayed on his or her VOW to identify the name of thelisting firm and the listing broker or agent in a readily visible color, in a reasonably prominentlocation, and in typeface not smaller than the median typeface used in the display of listing data.

Section 16.18

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Participants and the AVPs operating VOWs on their behalf must execute the license agreementrequired by the MLS.

Section 16.19

Where a seller affirmatively directs his or her listing broker to withhold either the sellers listing or

the address of the sellers listing from display on the Internet, a copy of the sellers affirmative

direction shall be provided to the MLS within forty-eight (48) hours.

Section 16.20Service Fees and Charges: Service fees and charges for participation in VOWshall be as established by the Board of Directors.