The Beal.tuBlue Boak of Californie.

82 Tke nealla Blua B.ookol Cdilorltitl

ExclusiveMultiple Listing
B? H. E. NIcETtNcaLE

WhA,t is Mutrti,pl,eListilrg ?-OrgalLizq,tion*Eepe4se--

Dqripment-Di,sposition ol ListilLg-Benefrts of the Senice
*Berlefb Secureil ba Buaer-Fees-Diuision of C(nnmis-
siDna-A d! ertkinq Listibg s.

I f, JHAT is known as fie Mulliple Listing Servicehas for its foun-

VV dation the idea of Exclusive Listing of Real Property. In
California the st'sLemis comparativelynew, tle Soutlwest
Board of Los Angeles being, in fact, the original Multiple Listing
Board in the €tate.
The system has been and now is being quite extensively used in
many Eastem sections of th€ country. It is a system that is desigled
to giv€ service, primarily, and of equal benefit to baok€r and clieat,
buyer or seller.
AN OIITCBOWTH OF CONDI1IONS
Like all great movernents, Multiple Listing is the outgtowth of
conditions. The adoption of the new system a3 elucidated below wiU
without doubt emancipate the realtor from many of the diffculties
surrounding the profession of real estate, and eventually lead to pro-
gress, unity, closer union and greater development.
The Multiple Listing System is the natuml outcome of a desire
to ri,se to a highe! pla.neof sensible co-operatiotr,thereby eliminating
unintelligent competition, economicwarfare and wasted effort.
AIM iS CO-OPERATION

Under the unintelligent, competitive method, the tenalency ol

some brok€ls was to keep their fellow brokers in the dark as much
as possible. Under th€ new service, the aim is co-operation; to be oD
the best of terms, and enlist the aid of other dealers,realizing that
their successis our success.their failure our failure.
WHAT IS EXCLUSIT'EMULTIPLE LISTING?
An exclusive listing is a contract for the sale of real estate entered
into betweenthe owner of property and the bloker, whereby the owner
grves to the broker the exclusive right to 6ell such property and to
accelt a deposit on same,the contract to remain in force for a specified
pedod. Ulder the "Multipld' s''stem, propedy listed in the office of
one member becomes automatically available in the office of evely
member. The contract canies with it an obligaiion on the part of the
member to list the pbperty with ever.ymember.
 The Redl.taBIue Boo.Lof Californi& 83

A NECESSITY
TO I'OSTER MO\IEMENT AEALTY BOA,R]D
Itr order that tlle idea of multiple listing be promulgated with the
bestresults, it is [ecessary to form a realty board in the community.
If a board aheady exists, the advantages of the system should be
broughtbefore that board for considerationand adoption. If the
boardacts favorably, it should change its constitution and byla\ts 60
as to ta.ke in every member. It is not advisable io attempt to make
it compulsory,but it is imloftant that every member should adopt
s,.stem.
NOT ADI'ISABLE TO HAVE SDPIIATE ORCANIZATION WITHIN BOAND
The formation of a gaoupwithin the board is not advisable, except
:e it is absolutely impossible to get concert€daction, or unanimoua
)ptionof the system. But in that eventualityevery meansshould
employedto convert those who are opposed. A properly organized
rd, ricognizing this principle, should be able to overcome all
ections by means of a full exposition of the advantages of the
iple listing proposition. while the so-called"Group Plan" has
with somesuccess,yet it has been the means of creating jealousy
undermining co-operation among the members.

ORGANIZATION
Where the service is adopted by boards in large cities covering
iderableterdtory it is necessaryto divide the territory into over-
divisions. This requiles great care and should be undertaken
bt thosefitied by judcment and pxperience,

EXPENSE
No board, large or small, need hesitate to adopt the multiple sy3-
for fear of additional expense. In truth, the system is not only
oriing, but a sourceot income. Loyally and faithlully sup-
it cannot fail to make money for both member and board.
AIMINISTRATION AND REGULATION
I'Llere must be rigicl administrative regulations, which must be
enforced. Laxity inthis respectmeansfailure.

BY.LAWSJ CONSTITUTION'ETC,
It is highly advisable to berefit by the experience of others in
dDgthe necessaryconstitution and by-laws, and it is advised that
boardadoptingthe systemshouldpattem after someboardwhich
t€sted out t}Ie systern and by experieice fouDd it successful;
of course, by such local conditions as may be necesssry.
main plan of operation, however, should control.

EQUIPM'NT AND CENTRAL OFFICD

ther€ should be a central office, where the work of rcceiving,
ing and distributing listingF to membersis carried on. This
84 TheReo,ttaBkreBook of Calitornlo

oJficeshould be under the authodty ot the direclors preferably.the

ii"'.*x",ml*lt":':;:ii";lil":Jf""ilii,!T"n
amou;t of equipmpnt is not necessary. bul it should be
adequarF'

D$MIBUTION TO MEMBBS

An iron-claallisting card is essential. This shouldbe in triplicate

*rr""ti"*]"x:li5:lt8,gli'"?iii?i',ill"f, gffil
hr'":l3ff,
""f"'f
l**,I'",tnf l .lli'U:l U',lm:"",*1"',llu"'fi3l"ilX"il
owner's name.addressand telephonenumber'

DISPOSITION OF LISTINC

The DroDeflv b"ing properlv lisled the listing should be sent.lo

aspossible
thelistin;ofhceassoon ,-",r1tl"X"f'#J**'I"::;t#Ji::
timit). Il should at once be mult;gaal
l;*}ff3J"f;
i**ttll":t"l,u'ffi i#""#tlTTft f#'3;
"J:,:ff
io member at {hc next distribution of lislings'
".n"t "act'
CIIANGDS IN PRICE

If the Drice is "hanced. tlis sbould be handledas above This

nxLn**":lg *"
:t*1";
*1,;fl H:':i
t.llt'T:i'"-:1lffi"*J
incorrect listings,
GENE.RA], DIRECTIONS
1 . Havp the lislings {or a cerlain definile pPriod
2. io not koeperpired listing in vour livp li;tirs fle lf good relist
them if possible.
3. ili'"oit'akJnet listins" for vour board They onlv bdng trouble'
4. Demand five per cent-no more, no less, and live up to rtyou
5. bo not list airv property for your board unless certain can
sell it withjn the tisting Period.
6. iiit e prope.tr is pri.ed righl lilt il fol vour.board li pavs .
An inflatedlisting injures your board and lhe brokPr who l)srsrr'
7. -Do
t"i youi board as a means to sell his propert-v
"oi " "i.
""tl"i wfrich also would have a tendelcy to discrediJ
at-inflatea plices,
your appraisal judgment
judgmcnt
8. bo noi i'^u" rn ,ppt"isal comnitlee. ll questionsthe
oI vour member, and is surp to cause Lrouble.
9. wh;n a listing ha. pxpired, do nol plece a handicapupon your
membertiar lh. oulsidebrok"r is frPe ftom lrr othpr words'
""11
remember that anyone can sell or relist ihat property whether a
-emte. o. not. Iiowever, ry office other than the original list_
ine ofiice Ihp propertv lhould pav'he boa)d its lee..be-
""lting
cause it was throush thp board thai fhe lisling was obtalned
10. A fee of $1.00 shoutd be charged the Iisling office for each listing
s€nt to the board. This keeps out undesirable listings.
 Ihe Realt! BLueBook ol Cd,tfornin 85

Your privaiq listings are your own. Do not turn them in to your
board,as the boardhas no controlov€r suchlistings. Eventually
your board listings will eliminate tlem.
It is a mistake to put your board on a complete exclusive plalr
at tle beginning. Ttat will come in time, but only after the
Multiple Listing Service has.demonstratealthat the private list-
ing is little bette! than no listing at all.
Proper8 is never sold until the selling offrce has taken a deposit
(preferably on a C. R. E. A. deposit blank) ard same has been
signedby the seller and buyer. Observance of this rule avoids
much trouble.
Board listings cannot be canceled during the period for which
tlley are listed, except vrith the consent of the boaralof directols.
rEES
I'he fees charged on sales that have proven most satisfactory
$2.50vrherethe cornmissionis $100.00or less.
$10.00where the commissioa is between $100 and $360.
$10.00plus 3 per cent on balancewhere the commissionis over
$350.00.
$2.50where the listing oflice sells its o$n listing.
DIYISION OF COMMISSIONS
Commissions between brokers are divided in the following
After the board fee is paid the balance of the corl1missioflBhould
divid€dinto tlree parts, one palt to the listirg office and two parts
Leselling offce.
Whercthe listing office is ihe selling office, the whole comeis,sion,
the boardfee, is retained.
DIVISIONS SITOULDBE MADE IN ESCROW
It is advisable that this division be made in escrow. and that the
office and the board be furnished with $crow cards. It is not
that the listing broker be present in escrow.
PBICES NOT CHANGED DURINC I,ISTINC PERIOD
rling the period for x'hich the property is listed, the prices anil
cannotbe changed,exceptdownward. The listing cannot be
itr any way that will render selling the propefty more difficult
as originally listed.
AD}IEBTISING LISTINCS
member may advertise any board listing. A large percent
Balesfu the best argument one can make with the owner of
for listing pioperty exclusivelywith your board.
DIIAI,ING \{ITII SALESMDN
board has tro authodty as to the manner in which the board
dealswith his salesm€n. It is suggested,hobever, that when
86 TheRea,ItaBtweBcak qrlil:!!Y-
"f
DroDerrv is listedby thesalesmen lor theboard.andanothermember
5"ii5li,'ui"t tt;rtit"en fiItv per cent- is re-
of whatevercommission
'ifti" pf"""Jttim on ihi samebasisas tle broker'and should
make oI him an eamest supporl,er oI lhc sennce'
"!i"""a.
BENEFITSOF THE SER'!'ICE
th-e
l. It creales a poinl of conlact beh€en the members and
and a feeling of trust and fripnd-
loeicai result is closer co-operalion
' of inestimable\alue betweenbrokcrs'
ship,
2- The brokpr is assrrreil tlat his labor is not wasted and that
.h*i,d he-h;:'; ;;t;"p"ci rol itre prope*v tisted. and receive a deposil
irt"."o". te a?'t;"e. at the price and terms !iste'l'
"""' ""n ilt" trrot<eir o get exclusive listingslar in excess oI'
i.'' if*iti*
" couldsecureunder i,heold syslem'
""1: he
whaL
i;;J;;i;;1r'" puuii" ro the rights of l'Ip..broker and
assistsin maintainingihp fi\P
*-'!] ""
per cpnt commiaslons on all sales
it *itiJ hi*-good lisiingsovcr a much wider lerrilorv ihan
''" could Dossiblvcover bv himself.
he
;-'-li;;;;"; i;o ir more salesmen negotjalinswirh.a seller
for a pmperty for fhe same buyer' And thcreby DooslIng
unconsclously
the pdce to the buyer-
BENEFITS DB]YED BY TIIE SELI'EB
The benefitsto the owncr and selleroI prcpedy are
1. Il hp is really desirousof selling his ptoperly he. may oy
listing it through one memberwith the board' haveure ser!'ces or arr
members.
"'t"
i.'"ilavine tt'e serMcesof the largest selling organizalionin his
Io lt'
'3.if his propleflyis a goodbuJ he-isalmosi'sure sellt)?e oi men
cily,
Hd ha; th; advanLage of dPalingvrith the highpst
in the real esiatc profession.backedby an organizatrondptetmlneo
to *;. ' his interest.
* nrotect
H; il;;; lfu exactly what commission he is paJ'1ngfot the
sale of his propelty.
BENEFITS SECURiEDBY'THE BIJYER
1. IIe feels confident that he rtill receive a square deal becaus€he
k'" Drotected
*;.'"ii; bv lhe pihicso[ tle Realty Board.
frow; th;i wil,t our organizationand the mulliple listins
*e uri, tffJ io ,largel terito-iT and obtain better buvs than the
indivialual "o"""
broker can.
"'--b.
li"-k";;" that the commissioncharged cannot exceed five
oer cent. 'H"
"' 1: kno*" thai,wa do not list property for the serviceunless
it is wori.l1the pri.p asked.and that shouldthere be any 'hange ln
iriil ii*""Cueln I't;sfavor. This senseof securily is caus-ingrnanv
iuvers to seet out multiple listing scrvicemembersin preferenceto
othera.
IN ITS INFANCY
The multiDle lisfing serviceis in ils infancy The service'how-
6in y ost;blished.and t}le -pcrfection of uur presenl
""".,-i* "o*
iratus and the union of our torcesis the duty of today.
 Th,enedfu Bl,ueBodt oI C'ttliforn&l 87

ulations for Multiple Listing System

FOBMS
No. ..-.-.-...-......-...,..-.., 192..
UNIF\ORN SAJjEg AGENOY CONTRAqT

'rtis Coorrac' and Asfeemerl Ll'is day @ade abd pntered iD(o bv .od be

TII:
That, fo. a valuable consideration, the unileNigned Owner anil lndersisaed

TSE OWNER AGREEA: (1) To, and by thiB asreenenr does sive ro

Resltor tor a le.iod oI six months rrdm the date hereol the sole and ex-
: risnt to selr the foliowits ddcrtbeil rcal esttte situateil in
.-...............,,..,Coun1x,State o!., .-....--.----'.-, -. .-..-.-..-....-... - - belns
a total conside.a,tio4 of $-..-.,.-.,.. . ..; to !e laid as follows, to-wlt:

bterest oD ulpaid aoouEts of,..,-. -.--.per ceDt, lavable-. - ..--.annuallv,

hy otne! Drlc€ aDd te!@s that said OwDer mav accept,
(2) ao pay satrl Realto .-per celt com@is3io4 on the
E lrtce, {a) if saiil Rerltor nnds a bt}er wno shalr be reailv, wtltiag aEd
to purciradeduriDg the lite or the conhact upon the lrice dtl terms alove
or, at aly othe! lrice drl teims that hay be tgreed !!on, o! (b) il saiil
is sold, by tbe OwDer, or his authorizeil ageDt, or atry other person
le$ons dudng satd Deriod, or, (c) if said prolertv is sord nv the owner
six months thereatter lo any lerson, fird or corlorttion with whom
Realtor nesotiaied wilh reslect lo a sale durine the terd hereol.
(3) In the event ol a 6a16,to fumish tithin a reasona,lle time, a com-
abshact showirs good and merch.ntable title ir 3aid OMer, sabject to
tncunbmnce, vhich will le rereased, unless aBsumeil by th€ purchaser
tte lerms of the saler @d to convey or cause to be coDveved bv War
Deed saiil property to any lurchaser designaled bv said Rea;ltor'
(4) That, 1E the event of an exchanse, vhich withi! the meanins dt this
shall be deeEed a st1e, saiil nerrtor is permitteil to rcpresent ald
irom ioth parties, or, il it be a trille or multiple ercbange, rrom all
sepa.rtely, comEtusio! iD I{rt as above stated
REALToR- AGREIS: (1) To endeaYor to Drocure a purchaser ro.
Foperty uDon rhp pricF a!d l"tmB her.ol. l2) lo relist said proDArtv
D forry-"lsbr hours rrob rbis day ard bour tl(h lte
(Nahe or Bos.'r)
The hei.s antl as6igDs of the uldersigned are bo\nd bv the terms hereo!.
in td icate, at. -..-...-.-,.....

or........-.......---.......-............