GEMLS Citation Policy

To ensure the integrity of the MLS and MLS database, this Citation policy has been established in accordance with Section 14.3 of the MLS Rules and Regulations. Fines will be issued in accordance with this policy, and are subject to change upon approval by the Board of Directors. This policy is not all-inclusive, may not reflect violations of the Code of Ethics, and does not replace Professional Standards Enforcement. Bakersfield Association of REALTORS® /GEMLS has instituted this Citation/Fine Policy to make a focused effort on bringing back the integrity of the MLS in the eyes of the members it serves.

SUMMARY OF CITATION AND FINE PROCESS A violation of the MLS Rules may be reported to the MLS Compliance Department by way of a “Whistle Blower” form, direct member report or staff investigation. If the violation is one that can be corrected, MLS Compliance Department shall send a Notice of ViolationWarning (NV-W) to the violating individual (“Violator”), responsible Broker Participant or Subscriber Participant (“Responsible Participant”), and acting Sales Manager. Violator must submit a Notice of Correction within two (2) business days of the Receipt Date of the Notice of Violation and Fine Assessment (NVFA) to the Violator and a copy of the Notice to the Responsible Participant and acting Sales Manager. If the violation of the MLS Rules is one that cannot be corrected, an NV-W is not sent to the Violator and Responsible Participant. Instead, the NVFA will be sent to the Violator (with a copy to the Responsible Participant and acting Sales Manager). If, within fifteen (15) calendar days of the Receipt Date of NVFA, the fine is not paid or Request for Administrative Review (RAR), or a Request for Hearing (RH) with a

$250 filing fee is not received, the MLS privileges of the Violator and the Responsible Participant will be suspended.

Examples of violations of the MLS Rules that cannot be corrected include, but not limited to, the following: (1) “Active Listing Without a Valid Listing Agreement”. Paragraph 8.2 of the MLS Rules and Regulations require the broker participant/subscriber to provide documentation to the MLS within one (1) business day. (2) “Mandatory Submission”. Paragraph 7.5 of the MLS Rules and Regulations requires that Broker participants shall input exclusive right to sell or exclusive agency listing on one to four unit residential property and vacant lots… within two (2) business days (excepting weekends, holidays and postal holidays). A violation of the Mandatory Submission rule or failure of Broker participant to submit Seller’s Authorization to Withhold Listing from MLS, at the time of listing, will result in an automatic NVFA. (3) “Failure to Secure Passcode”. Paragraph 12.13 of the MLS Rules and Regulations requires that participants and subscribers are responsible for the security of their passcodes and shall not give or allow use of or make available their passcodes to any person. (4) “ailure to Comply with Lock Box Requirements”. Paragraph 13.6 of the MLS Rules and Regulations required Use of MLS Approved Lockbox. Participants and Subscribers who utilize lockboxes or other access devices (and so indicate on the MLS) shall use the designated or authorized lockbox required by the MLS where the listing is submitted. More than one lockbox or access device may be used on a property as long as one of them is the lockbox designated or authorized by the MLS where the listing is submitted.

REPORTING A VIOLATION Reports of violations can be made by faxing to: (661) 635-2317 Email to MLSViolaton@ bakersfieldrealtor.org Reports must include the following information: n Name and office of the alleged Violator n Nature of the violation(s) (be as specific as possible, i.e. when it occurred, the MLS #, etc.) n Reporter’s name and contact information is FOR VERIFICATION PURPOSES ONLY AND WILL BE KEPT IN STRICT CONFIDENCE.

VIOLATIONS AND FINES First Offense within a 6-month period: $250; Second Offense within a 6-month period: $500; Third Offense within a 6-month period: $1,000; More than three offenses within a 6-month period constitute grounds for additional disciplinary action, including suspension or expulsion from the MLS, after an appropriate hearing as provided in the California Code of Ethics and Arbitration Manual. *An increase from $250 to $500 for violating MLS Rule 13.2.1 per the Citation/Fine Policy, in an effort to bringing back the integrity of the MLS in the eyes of the members it serves. 13.2.1 Use of Lockbox Contents. Participants and Subscribers shall at all times follow the showing instructions published in the MLS. Participants and Subscribers shall not remove contents of the lockbox for purposes other than showing the home and shall promptly return the contents to the lockbox upon exiting the property. Participants and Subscribers shall keep lockbox contents in their possession at all times after removal from the lockbox. The lockbox and/ or contents shall not be removed from the property site without prior consent from the listing agent.

RESPONSIBILITY FOR VIOLATIONS AND FINES The violating Broker Participant, Appraiser Participant, Subscriber or clerical user (the “Violator”) shall be responsible for paying the fine and correcting the violation. If the Violator is a Subscriber or clerical user, the Broker Participant or Appraiser Participant through whom the Violator has access to the MLS at the time the violation occurred (the “Responsible Participant”) shall be also responsible to pay the fine and/or correct the violation including any fine for failure to correct the violation. If the Violator shall become employed or associated with another Broker Participant or Appraiser Participant, the Responsible Participant shall no longer be liable for any fine

imposed against the Violator but shall still be liable to correct any violation (and pay any fine for failure to correct the violation) to the extent the Responsible Participant has the ability to do so. The new Broker Participant or Appraiser Participant shall not be liable for the Violator’s fines incurred and assessed prior to the Violator becoming employed or associated with the new Broker Participant or Appraiser Participant, but shall only be responsible for fines and violations that occurred while the Violator was employed by or associated with the new Broker Participant. The Violator’s history shall apply to the new Broker Participant or Appraiser Participant for the purposes of determining liability for fines and violations occurring after the violation becomes employed by or associated with the new Broker Participant or Appraiser Participant.

NONPAYMENT RESULTS IN MLS SUSPENSION Failure to pay a fine, unless an administrative review or a hearing is requested as set forth below, will result in suspension of MLS privileges of the Violator and/or Responsible Participant, pursuant to Paragraph 17.1 of the MLS Rules and Regulations, which reads as follows:

“17.1 Nonpayment of MLS Fees. If MLS fees, fines, charges or other amounts owed the MLS are not paid within one month after the due date, the nonpaying participant and/or subscriber’s MLS services shall be subject to suspension until such outstanding amounts are paid in full. The MLS may suspend MLS services under this section provided the MLS gives the participant and/ or subscriber at least fifteen (15) calendar days prior notice of the proposed suspension date. Such notice may be included with the original billing statement for MLS fees, remain unpaid for three months after the due date, the nonpaying participant MLS services shall automatically terminate regardless if notice of such termination is given.”

NOTICE OF VIOLATION For purposes of this policy, MLS Compliance Department shall send Notice of ViolationWarning (NV-W) to the violating individual (“Violator”), responsible Broker Participant or Subscriber Participant (“Responsible Participant”), and acting Sales Manager. If the Violator is a Subscriber or clerical user, a copy of the notice will be sent to the Responsible Participant.

CALCULATING TIME PERIODS Time to submit or report under the MLS Rules & Regulations is counted as business days (weekends and holidays are excluded). Time to correct violations is counted as business days.

DUE DATE FOR FINES Fines are due within fifteen (15) business days of the Receipt Date set forth on the NVFA. Receipt is presumed two (2) business days after mailing or one (1) business day after facsimile or e-mail transmission. If a notice is sent by more than one method, the earlier Receipt Date applies.

MULTIPLE AND REPEAT VIOLATIONS If a NVFA includes multiple violations, fines will be assessed on a per listing basis.

REPEAT VIOLATIONS If, within a six (6) month period, the Violator is issued two NV-W for violation of the same MS Rule, the second NV-W will result in an AUTOMATIC Notice of Violation and Fine Assessment (assuming that the violation(s) is one that can be corrected).

RIGHT TO DISPUTE NOTICE OF VIOLATION AND FINE ASSESSMENT There are two alternative procedures for disputing a Notice of Violation and Fine Assessment (NVFA): (1) the Violator may request an administrative review without any fee, and if the citation is upheld, the fine is limited to the amount or adjusted amount in the NVFA; or (2) the Violator may pay a $250 filing fee and request a hearing, and if the citation is upheld, the fine amount in the NVFA may be increase and additional sanctions may be imposed. FAILURE TO TIMELY SUBMIT EITHER A COMPLETED REQUEST FOR ADMINISTRATIVE REVIEW (RAR) FORM OR A COMPLETED REQUEST FOR HEARING (RH) FORM WITH THE $250 FILING FEE WILL RESULT IN THE CITATION BEING DEEMED FINAL WITHOUT ANY FURTHER NOTICE, AND THE VIOLATOR’S MLS MAY BE

SUSPENDED FOR THE PRESCIVED PERIOD.

ADMINISTRATIVE REVIEW To dispute a NVFA, the Violator may request an administrative review by the MLS Quality Assurance Task Force, a subcommittee of the Professional Standards Committee. The MLS Quality Assurance Task Force, a subcommittee of the Professional Standards Committee. The MLS Quality Assurance Task Force is comprised of one or more panels of not less than three (3) nor more than five (5) REALTORS® .

The Violator must first correct the violation and submit a Notice of Correction if the violation is one that can be corrected. Then, within fifteen (15) calendar days of the Receipt Date of the NVFA, the Violator may submit a Request for Administrative Review (RAR) Form. No fee is required for an administrative review.

The RAR form must state the specific ground(s) for the review and include all and/or reasons for the request. The grounds for an administrative review are one or more of the following:

Factual dispute regarding the alleged violation(s) such as misapplication of the MLS Rule(s) cited. Contention that there has been a violation of procedural due process. (NOTE: FAILURE TO RECEIVE ANY NOTICE IS NOT GROUNDS FOR ADMINISTRATIVE REVIEW)

If the grounds set fort are proper grounds for a review, the MLS Quality Assurance Task Force will review the documentation. No formal hearing is held and no appearance by the Violator is required. Written Notice of Administrative Review Decision by the MLS Quality Assurance Task Force will be sent to the Violator within thirty (30) business days of receipt of the RAR. In the event the MLS Quality Assurance Task Force determines that no violation(s) occurred, the fine will be withdrawn. In the event the MLS Quality Assurance Task Force determines that there has been a procedural due process violation, the MLS Quality Assurance Task Force may return the matter to MLS Compliance Department, or dismiss the matter.

REQUEST FOR HEARING To dispute a Notice of Violation and Fine Assessment (NVFA), the Violator may request a hearing before the Professional Standards Committee.

The Violator must first correct the violation and submit a Notice of Correction if the violation is one which can be corrected. Then, within fifteen (15) calendar days of the Receipt Date of the NFVA, the Violator may submit a Request for Hearing (RH) form with a $250 filing fee.

The RH form must state the specific ground(s) for the hearing and include all facts and/or reasons for the request. The grounds for a hearing are one or more of the following:

Factual dispute regarding the alleged violation(s) such as misapplication of the MLS Rule(s) cited. Contention that there has been a violation of procedural due process. (NOTE: FAILURE TO RECEIVE ANY NOTICE IS NOT GROUNDS FOR ADMINISTRATIVE REVIEW)

If the grounds set forth are proper grounds for a hearing, BAofR/GEMLS will set a hearing in accordance with the California Code of Ethics and Arbitration Manual. The Violator may, but is not required to, attend the hearing.

In the event the hearing panel determines that the violation(s) occurred, the $250 filing fee will be retained as a cost for administration of the hearing and will not apply toward the payment of any fines. The fine in the NVFA OR SUCH INCREASED FINE AS IS IMPOSED BY THE HEARING PANEL will be payable in full by the date noticed in the decision, and the Violator may be required to comply with ADDITIONAL DISCIPLINE AND SANCTIONS AS MAY BE IMPOSED BY THE HEARING PANEL in accordance with the California Code of Ethics and Arbitration Manual. The sanctioning guidelines are set forth on the back of the RH form.

In the event the hearing panel determines that no violation(s) occurred, the filing fee will be returned. In the event the hearing panel determines that there has been a procedural due process violation, the hearing panel may refund the filing fee and either return the matter to Staff (MLS Compliance Department) or dismiss the citation.

GEMLS, INC. Citation/Fine Policy Adopted 3/10/06 Revised 2/19/2021