This is a big no..no...
as far a legal and illegal, a good rule of thumb is that the realtors code of ethics usually run in line with the laws and are usually supported by them but as my own disclosure, REALTORS cannot give advise on legalities because we are NOT attorney's therefore you must consult your attorney for the best advise.

That being said, the agent was totally in the wrong to change the status of the listing without getting a letter from both attorneys stating the deal is dead. Without that supporting documentation the agent can be fined by the mls and a complaint can be filed with the real estate commission if he/she does not change it back immediately... Contact them and warn them first!

This is not acting in the best interest of the seller or buyer, sounds like something done out of spite without knowing exactly what your argument was about.

By the way are you continuing with your purchase or are the negotiations at an impasse?
How long has it been since getting back the inspection report?
Take a look at your contract, you may have only "x" amount of days to respond if you agree to follow thru with the purchase or back out and if you choose just to do nothing, there may be wording in your contract that would allow the seller to kill the deal. Either way the realtor should have a letter from the attorneys before making any assumptions.

You sound like you want to make an issue out of this situation, I hope you plan on still purchasing the home and are not doing this out of spite yourself!!!!!

Good Luck...

http://www.RealRep.com

John,
What did YOUR agent say about all of this? In the future I would advise you to speak with your attorney or your agent about inspection concerns not the seller's agent or seller. It is better to have the inspection report and if possible an estimate for the repair of items before causing alarm.

John,

Your question asks if it is “illegal” and that is a different question (and answer) than whether a property can be placed in an MLS system. Governing rules for Realtors include those which are law, under the New Jersey Real Estate Commission, Attorney General (State Fair Housing), HUD (Federal Fair Housing and RESPSA.) In addition to legal governance, Realtors are bound to the Code of Ethics of the National Association of Realtors. The NJAR is a state chapter. MLS systems are separate entities which exist to collect and share data about properties for sale and provide other working tools for MLS subscribers. Association rules (NAR - NJAR) are not laws. MLS subscriber terms and conditions are not laws, but rules to which the member subscribers must adhere. The Garden State MLS (GS MSL) encompasses several counties and members of many different local chapters of Realtors are subscribers.

Each MLS system has it’s own rules, and while there are similarities, there are also differences. Because I am the broker for a company which maintains membership in multiple MLSs, I can assure you that the subtle differences can cause confusion. What one can do in one MLS might be strictly taboo in another.

Legally, an owner can market their property for sale, and show their property for sale, up until the day of closing. In so doing, a property owner has an obligation of disclosure. A property owner could not legally enter a contract for sale with a second buyer. However, a property owner could show their property for sale, disclose that they currently have a contract, but are showing for back up. The owner could even say, “I expect the current contract to fall apart.” and encourage showings.

MLS rules are written and enforced to provide full disclosure and to limit properties in the database to those which are truly available for sale. MLS systems were created as a vehicle for Realtors to share listing information with each other, so that they could sell each others’ listings. The rules for terms and conditions for inputting these properties into an MLS system are written for the common good of the buyers and the agents who invest their time in showing buyers properties. While the MLS system would certainly prohibit legal activity, the limit does not stop there. An activity which is perfectly legal might be prohibited by MLS rules. Most MLSs have rules about prompt reporting of “Under Contract” status to the MLS system.

While I didn’t read into the situation described that the listing agent engaged in illegal activity, there may be some question about the ethical behavior or a possible violation of MLS rules.

Did this listing agent believe that it was out of review? Did the listing agent have documentation to that effect? Was the agent acting in haste? Was the listing agent acting in the best interests of the sellers, while concurrently being fair and honest? The answers to these details may help determine if any rules were broken.

Deborah Madey - Broker
Peninsula Realty Group - New Jersey

Thanks all. I did speak to my attorney. He did believe that the agent couldn't list the home on the MLS as active since we are still under contract. As many of you had said. I was able to see the agent view of the gsmls site. The listing was pulled from the GSMLS once we were out of attorney review but never was tagged as UA in the GSMLS. Now it is back up as active with no remarks referencing it is current UA. At the end of the day it looks like the seller is not willing to address the concerns of the inspection and the contract will be voided shortly. I am just not very happy with the unprofessional manner in which I see the seller's agent acting. I left a message with a director within the NJAR and looking forward to discussing what has transpired with her tomorrow.

You need to read the contract.

Notice the last sentence. You can also send mail to info@gsmls.com with questions or comments about the rules and regulations.

This is right out of the:
RULES AND REGULATIONS OF NEWMLS, L.L.C.
d/b/a GARDEN STATE MULTIPLE LISTING SERVICE, L.L.C.

Section 1.13 LISTING STATUS
Any listing placed with the Service shall be considered active and available for showing in
accord with the terms of the listing agreement. In the event an active listing is not going to be
available for showing in accord with the terms of the listing agreement, the listing broker should
obtain a written agreement from the property owner amending the terms of the listing agreement
or temporarily taking the listing off the market (whichever is appropriate) and submit notice of this
change to the Service in accord with these Rules and Regulations.
Any listing subject to an executed contract or lease that is still pending attorney review
shall still be deemed active and available for showing in accord with the terms of the listing
agreement. A listing broker has the option, but is not required, to identify any such listing as
ARIP (Attorney Review In Progress) in the MLS system. To the extent there is going to be any
change in the availability of such a listing during the attorney review period, the listing broker
must follow the procedure set forth above regarding changes in availability.
A listing shall be deemed under contract (also referenced herein as pending) when it is
subject to an executed contract or lease that is pending and in effect, and which has survived
attorney review if it was subject to such review. A listing that is under contract shall be reinstated
as an active listing in the event the contract is cancelled.

John, have you contacted your attorney and if yes, what did they say? What has your realtor said? What is the property address? Are you looking on realtor.com or is your agent telling you the house is back on the market? Because although the GSMLS allows us to mark a home in attorney review A* (not all agents do that) it will still reflect as active on realtor.com, etc. - it is not removed from active until it goes under contract. A house in attorney review is still an active listing. So did the house actually ever go under contract on the GSMLS? If you give me the address I can look it up for you - realtors have more access than the public.


Gina Chirico
Prudential NJ Properties
Caldwell, NJ
973-228-1000 ext 132
973-715-1158
GinaChirico@PruNewJersey.com

Well the house is listed on the GSMLS as active and there are no comments in regards to being UA, withdrawn, etc. Still no letter to my attorney either.

Can anyone point me to website that references that the home can't go on the market?

In New Jersey the house cannot go back on the market as available until the attorneys agree....

Get your attorney on the line and get his advice ASAP - each MLS organization have similar rules and sometimes ones that pertains to that specific MLS. We should always disclose to the public what is actually happening for example - you are in a inspection period - a contingency of some sort; in our MLS, we have a remarks section that list contingencies...this is one of them; it lets other agents know that yes the property is under contract with contingencies. Time is of the essence, contact your Attorney - the job of both realtors should be to keep the transaction alive. Good Luck

Hi John.

I must agree with Diane's response. I typically suggest and/or advise my seller or buyer depending on which side I represent not to speak to the other party about inspections, terms, etc. and to communicate through their agents and/or attorneys for handling such issues/disputes as to avoid some "unfriendly" outcomes. With that being said, again review your contract terms and have your attorney deal with it ASAP.

Good Luck and please post the outcome - I am very curious.

Gina Chirico
Prudential NJ Properties
Caldwell, NJ
973-228-1000 ext 132
973-715-1158
GinaChirico@PruNewJersey.com

I am not an attorney, but the way it is supposed to work (as I understand it) is that until a letter has been sent to the buyers' attorney, you are still "under contract" in NJ and the property cannot be listed as active (put back on the MLS) until then.

There is a clause in your contract (if you have a standard NJAR contract) that states how inspection issues are to be handled. Usually attorneys will put a limit on the dollar amount either party will be responsible for. Anything above and beyond is negotiable. If neither party can agree on the excess, the contract can be cancelled without any legal ramification. Check your contract to find out what your responsibilities are and consult your attorney for clarification.