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The Canopy MLS, one of the largest Multiple Listing Services (MLS) in North Carolina, has announced a significant change that will impact real estate professionals across the region. Effective January 1, 2025, Canopy MLS will transition to an Open MLS, a move that could alter how real estate brokerages operate within its service area.
Canopy MLS Coverage and Influence
Canopy MLS currently serves 14 Realtor® associations and covers 26 counties across North Carolina and South Carolina, including major regions like Mecklenburg, Iredell, Union, Gaston, Cabarrus, Buncombe, and more. This extensive reach makes the upcoming transition to an Open MLS a development that every real estate professional in these areas needs to understand.
What is an Open MLS?
Traditionally, Canopy MLS has been an all-Realtor® MLS, requiring that each real estate brokerage have a Broker-in-Charge (BIC) who holds Realtor® membership. Under the new Open MLS model, BICs will have the option to either maintain their Realtor® membership or drop it while still subscribing to the MLS. This flexibility allows brokerages more autonomy in deciding how they want to operate within the MLS system.
Key Points:
With Realtor® Membership: BICs can allow their licensees to choose between holding Realtor® membership or not. If some licensees opt out, the BIC becomes responsible for paying a non-member licensee assessment fee and is accountable for any Code of Ethics violations by non-member licensees.
Without Realtor® Membership: BICs who choose not to hold Realtor® membership will lead a "non-Realtor®" firm. All licensees in such firms cannot hold Realtor® membership but can still participate in the MLS by paying applicable fees and adhering to MLS Rules and Regulations.
What Should Firms Do?
Real estate firms must decide by November 1, 2024, whether they will remain part of the Realtor® organization before the annual Realtor® dues are invoiced. This decision is crucial because it will affect whether a firm is categorized as a Realtor® or non-Realtor® entity, which has implications for both operational costs and ethical oversight.
What Does This Mean for the Future?
Canopy MLS is confident that many firms will choose to remain affiliated with the Realtor® Association due to the value and benefits it offers, including access to a network of professionals committed to upholding the Realtor® Code of Ethics. However, for those who opt out, Canopy MLS plans to incorporate elements of the Code of Ethics into its MLS Rules and Regulations, ensuring that all transactions within the MLS maintain a high standard of integrity.
Upcoming Briefings
To help firms navigate this transition, Canopy MLS will host a series of briefings and meetings in September 2024. These will provide detailed information about the Open MLS model and allow brokers to ask questions and prepare for the changes ahead.
Final Thoughts
The transition to an Open MLS represents a significant shift in how real estate professionals in North Carolina and South Carolina will engage with the MLS system. It's a move designed to offer more flexibility while maintaining the standards that have long governed the industry. Real estate professionals should stay informed and participate in upcoming briefings to ensure they are fully prepared for the January 2025 transition.
For more information and to stay updated on this major change, be sure to attend the Canopy MLS briefings and keep an eye on future communications from Canopy MLS.
Do you plan to remain a REALTOR® if it is no longer required for MLS access? Let us know in the comments below, or share with a colleague in an upcoming CE class!
References
Canopy REALTOR® Association. "Canopy MLS to Transition to Open MLS." Broker Brief Email, 20 Aug. 2024.