March 6, 2026
This communication will serve as official notice to comply with the 30-day notification requirement to Participants of the Southwest Multiple Listing Service regarding changes to the SWMLS Rules & Regulations. These changes will become effective on Monday, April 6th.
These updates help ensure that the MLS rules continue to align with evolving industry practices, compliance requirements, and operational standards for Participants and Subscribers.
Among the updates are adjustments related to tribunal fees and compliance fine options within the MLS enforcement process. These updates are designed to modernize how compliance issues are handled and to provide clearer options when rule violations occur.
Compliance fees and tribunal processes are not intended to serve as punishment. Their purpose is to support accurate MLS data and encourage timely compliance with MLS policies. Reliable listing information benefits the entire real estate community by ensuring that brokers, appraisers, and consumers are working from consistent and trustworthy data.
Members can review the full redlined document here.
Below are excerpts from the affected sections.
Southwest MLS Rules and Regulations
Section 1.0 Listing Procedures
Listings of real or personal property of the following types, which are listed subject to a real estate broker’s license, and are located within the Service Area, and are taken by Participants shall be Filed with The Service within 48 hours after all necessary signatures of Seller(s) have been obtained. or seller’s directive as per listing agreement: (Amended 2/26)
• single-family detached, attached, or manufactured homes for sale or exchange
• vacant lots and acreage for sale or exchange
• two-family, three-family, and four-family residential buildings for sale or exchange
Reasoning
What changed:
Listings must be entered into the MLS within 48 hours of signatures or according to the seller’s directive in the listing agreement.
Why this change was made:
Previously, MLS rules required entry within 48 hours of signatures, even if the listing agreement specified a different start date. This created a conflict between MLS policy and the contract brokers are required to follow.
What this means for members:
MLS rules now align with the listing agreement, allowing brokers to follow the seller’s written instructions without creating a compliance issue.
Section 6: Service Fees and Charges
Tribunal Preparation Fees
When a Compliance Tribunal is scheduled pursuant to Section 9 of these Rules and Regulations, the Participant or Subscriber subject to the Tribunal shall be assessed a non-refundable Tribunal Preparation Fee in the amount of $250, due upfront upon notice of scheduling.
This fee is an administrative cost-recovery charge intended to offset staff time, materials, and operations expenses associated with the preparation of Tribunal packets, notices and related documentation.
The Tribunal Fee:
• is administrative in nature and not a disciplinary sanction;
• is separate from and in addition to any fines, sanctions, or discipline imposed pursuant to Section 7;
• shall not be considered by the Tribunal Panel in determining findings or disciplines.
Extraordinary Preparation Fee
Matters involving ten (10) or more sanctions result in unusually high volume, complexity, and/or administrative burden. SWMLS may recover documented Tribunal preparation costs exceeding the flat fee equal to 15% of the total sanctions assessed.
Any additional recovery shall remain administrative in nature and shall not constitute discipline.
Tribunal Preparation and Extraordinary Preparation Fees (if applicable) are nonrefundable and billed and payable at the time of Notice of Tribunal, and shall be handled in accordance with Section 4.7 of the SWMLS Billing and Cancellation Policy. Failure to remit payment by the 15th of the following month shall not automatically delay, postpone, or otherwise affect the scheduling or conduct of the Tribunal and shall result in suspension. Failure to pay by the 20th day of the following month shall result in termination from SWMLS. (Adopted 2/26)
Reasoning
What changed:
A $250 Tribunal Preparation Fee will be assessed when a compliance tribunal is scheduled. In cases involving 10 or more sanctions, SWMLS may recover additional documented preparation costs, capped at 15% of the total sanctions assessed.
Why this change was made:
Preparing for a tribunal requires significant staff time and resources, including compiling case materials, preparing documentation, issuing notices, and coordinating logistics. Historically, these costs were absorbed by SWMLS.
What this means for members:
The fee helps offset the administrative costs of preparing for tribunal proceedings and ensures those costs are tied to the cases that generate them.
Section 9.1.1 MLS Procedure to Impose Sanctions
For violations of Sections 1 (except 1.01), 2, 3, or 8 of these Rules and Regulations (Minor Violations) the Compliance Committee, Board of Directors of The Service, or Service Staff may levy a fine against the Participant or Subscriber as outlined below:
• First fine within a 12-month period will be assessed at $50 (fine can be replaced with attendance at an MLS Rules Refresher Class at the option of the Participant of Subscriber) See Section 9.1.1.A.
Section 9.1.1.A. Rules Refresher Class as Alternative Resolution of First Compliance Fine
1. Availability of Rules Refresher Option
• For Minor Violations eligible under Rule Section 9.1.1, the Participant or Subscriber may elect to resolve a first $50 fine by attending the SWMLS Rules Refresher class.
• This option is available once in a calendar year.
2. Required Election, Approval, and Registration
• Election of the Rules Refresher option is not automatic.
• The Participant or Subscriber must:
Request approval in writing from the Compliance Department, and
1. Receive written confirmation of eligibility, and
2. Register for an approved Rules Refresher class, and
3. Send written confirmation of class registration to compliance@swmls.com.
• All four steps must be completed no later than ten (10) calendar days following the date of the fine.
3. Effect on Billing and Collection
•Upon timely approval and registration:
1. The compliance fine will be placed in “Rules Refresher Pending” status.
2. Billing will not suspend or terminate services under Policy 4.7 while the Participant or Subscriber remains eligible and within the completion window.
• If approval, registration, and confirmation are not completed within ten (10) calendar days following the date of the fine, the fine proceeds immediately under the Billing and Collection Policy without exception.
4. Class Completion Requirement
• The approved Rules Refresher class must be completed within thirty (30) days of the fine date.
• SWMLS offers Rules Refresher classes on a recurring basis, typically every other week, including both virtual and in-person options, to ensure reasonable access within this timeframe.
• Participant or Subscriber must send the Certificate of Completion to compliance@swmls.com as proof of completion within the 30-day period.
5. Failure to Complete
If the class is not completed and the Certificate of Completion is not sent to compliance@swmls.com within the 30-day period:
1. The alternative resolution option is forfeited.
2. The fine returns to standard billing status effective the next business day.
3. Billing actions resume in accordance with Policy 4.7.
6. Relationship to Hearings
• Election of the Rules Refresher class constitutes acceptance of the fine and waives the right to request a hearing under Section 9.1.2.
• A Participant or Subscriber who wishes to challenge the fine must request a hearing within ten (10) calendar days from the date of the fine and may not simultaneously elect the Rules Refresher option.
7. Staff Authority
SWMLS staff do not have the authority to:
• Approve Rules Refresher requests after the 15th of the following month
• Extend the 30-day completion deadline, or
• Retroactively prevent billing actions once Policy 4.7 timelines have been initiated.
Reasoning
What changed:
The process allowing members to replace a first $50 compliance fine with attendance at a Rules Refresher class has been formalized with clear steps, deadlines, and billing procedures.
Why this change was made:
The Rules Refresher option previously existed but lacked clear procedures, which led to inconsistent application, billing confusion, and missed deadlines.
What this means for members:
Members may still choose the educational option instead of paying their first fine, but the process now includes defined timelines and requirements to ensure consistency and avoid billing conflicts.
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