Recently there has been an increase in questions about the use of the NNRMLS Status Change Form and when Sellers’ Signatures are required. Here is a clarification:
NNRMLS Rules and Policies require that you have sellers’ signatures on any change that relates to a change to the contract.
Examples of changes that REQUIRE sellers’ signatures (including but not limited to)
- Price change
- Accepted Offer – status change to Active Pending
- No further showings – status change to Pending No Show
- Extension to the Expiration Date
- Remarks changes IF material to the contract – example: change from furniture included to furniture negotiable
- Any other change that constitutes an amendment to the contract
Examples of changes that DO NOT require sellers’ signatures
- Changes to remarks that do not alter the contract – example: Beautiful Views to Gorgeous Views
- Updated Photos
- Any other change that does not constitute an amendment to the contract
Note: in the case of a typographical error, contact NNRMLS staff for support
Two Key Points:
Point Number 1. NNRMLS Rules Focus on the Signatures not on the Form
The NNRMLS Status Change Form is an excellent form for easily getting changes in writing and signed by all parties. Also it officially stands as an “amendment to both the Listing Input Form and the Exclusive Right to Sell contract to report any fact, term, and/or right which is updated, corrected, extended or in any way changes the information provided by the sellers.” Should NNRMLS audit your listing, however, we would be looking more for the Sellers’ Signatures than just the Status Change Form.
Example: When an offer is accepted and signed by the seller, NNRMLS does NOT ALSO require the NNRMLS Status Change Form to be signed by the seller. If audited, NNRMLS would note the signatures accepting the offer and confirm that the status was updated in the MLS system within 2 business days of the date the sellers’ signatures were obtained.
Point Number 2: Sold Status Requirements
The NNRMLS Board of Trustees was recently asked to clarify if changing the status to SOLD was interpreted as “relating to a contractual change” and would therefore require sellers’ signatures.
The Board of Trustees agreed unanimously that:
NNRMLS does not require sellers’ signatures on a Status Change Form when reporting a listing status as SOLD. NNRMLS would expect to find proper documentation that the transaction had closed, supporting the closing date and the sold price, if the file was audited.
Remember, talk to your Broker about Firm policy. NNRMLS respects the brokerage’s right to protect your liability by creating and enforcing rules that go beyond the MLS rules.
Due to the increased interest in these Rules and Policies, the NNRMLS Board of Trustees will review this interpretation and may make changes at the April Board meeting. If you feel strongly one way or another, I encourage you to write your argument and submit it to me via email. All member input received no later than 5pm on Thursday, April 14th will be included in the Board Meeting Agenda Packet. Please send to firstname.lastname@example.org.
Below are the specific sections quoted for this article from the NNRMLS Rules and Regulations, Policy Manual, and the Exclusive Right to Sell contract.
Rules and Regulations. See page 4 of 32
Section 2 – Listing Procedures
I. Changes, Withdrawals, Expiration
1. Any change in list or rent price or other change in the original listing or management agreement shall be made only when authorized in writing by the seller and shall be entered into the MLS system within 2 business days after seller(s) signature(s) are obtained.
2. Any contingency or conditions of any term in a listing shall be specified and noticed to the Participants within 2 business days after signature(s) are obtained.
The Policy for enforcing these Rules is in the Policy Manual. See page 4 of 35
Section 6 – Level 4 Citations and Fines
6.5. No Seller Signature(s) on Listing Input or Change Form.
Seller signature(s) are required on all listing input forms and status change forms relating to contractual changes. Failure to have the appropriate signatures on a listing input form, change form, or agreement will result in a $1,000 fine. (Section 2.I.1-2)
Exclusive Right to Sell
Page 2 – Lines 50-53
Page 3 – Lines 28-33
Any future Status Change Reports which update, correct, extend or in any way change the information provided by the Seller’s (on the above mentioned Listing Data Input Form, and are executed by the Seller’s), constitute amendments not only to that Listing Data Input Form but to the terms of this Contract as well. Thus, such properly executed Status Change Reports may include, but are not limited to, amendments to the SELLER’s selling price of the subject real property and extensions of the duration of this Contract. Each such Status Change Report shall be attached to this Contract and its terms incorporated herein.