Key Takeaways for Ontario Realtors: New PropTx MLS® Rules Effective Dec. 2, 2024

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Realtors should consult a legal professional or PropTx directly to ensure full compliance with the new MLS® rules and to address any specific legal concerns.

Understanding the Changes

On December 2, 2024, PropTx will implement new MLS® rules for realtors across Ontario. Below, we provide a simplified breakdown of the key takeaways, especially relevant to real estate practices. For detailed information or specific questions, please refer to the original PropTx MLS® document here. The document spans 27 pages and covers a wide range of regulations and standards.

Enhanced Standards for Listing Information

Realtors are required to ensure all listing information is accurate and complete. PropTx now mandates immediate correction of any inaccuracies and has introduced rigorous standards for updating listing details. Mandatory fields like property taxes, title holder information, and any changes in listing status must be accurately completed and updated promptly to keep listings active.

Virtual Staging: New PropTx MLS® Rules

Under the new PropTx MLS® rules, artificial intelligence (AI) and digital technologies that create virtual staging are explicitly prohibited for images uploaded to the MLS® platform. This comprehensive ban specifically targets substantial digital manipulations that fundamentally alter a property's appearance, such as:

• Inserting entirely new furniture using AI

• Digitally reconstructing or modifying room layouts

• Adding or removing structural elements

• Generating synthetic room views that do not match the actual property

The prohibition focuses on virtual staging techniques that misrepresent the property's true physical characteristics. PropTx aims to ensure that MLS® listings provide potential buyers with an accurate, unaltered visual representation of the actual space.

The rule specifically targets virtual staging and digital technologies that:

• Add or remove furniture through virtual staging

• Change room colours or finishes digitally

• Alter lighting conditions using AI tools

• Modify spatial dimensions through virtual enhancements

• Generate entirely synthetic room views

• Introduce elements not physically present in the property

Realtors must now ensure that their property images accurately represent the physical space, showcasing only the structural elements, permanent fixtures and existing furniture that may transfer with the property, giving potential buyers a true and clear view of the space they're considering.

Introducing Digital Decluttering: A Compliant Alternative

Where Realtors May Use Enhanced Images

While MLS® has strict rules, realtors have multiple platforms to showcase decluttered or enhanced property images:

• Personal Realtor Websites: Feature decluttered images that showcase the property's true potential, adding visual appeal to property listings.

• Listing Websites Hosted by Media Vendors: Partner with media vendors to display clean, professionally decluttered images outside the MLS® system.

• Social Media Platforms: Share decluttered images on Instagram, Facebook, and Pinterest to reach audiences beyond traditional MLS® browsers.

• Email Marketing Campaigns: Incorporate professionally decluttered images into targeted campaigns, highlighting the property's best features.

• Digital Brochures or Property Portfolios: Create tailored materials with decluttered images that can be shared with interested buyers.

Restrictions on Marketing Materials and Accurate Visuals

The new rules strictly regulate the use of visual materials associated with MLS® listings:

• Realistic Representation: Images must accurately represent the property. Digital enhancements or alterations that misrepresent a property's actual appearance are not allowed. Photos must focus solely on the property, free from digitally added features such as nearby amenities not visible from the property.

• Limitations on People and Personal Items in Images: Photos must not include people, nor may they display personal items like branding or promotional content within the image itself. The focus should remain on the property's features alone.

Virtual Office Websites (VOWs) and Internet Data Exchange (IDX)

For realtors utilizing Virtual Office Websites (VOWs) or IDX sites, new standards enforce data protection, personalization, and user accountability:

• User Authentication: VOWs must verify each user’s identity through a unique login and password system. Consumer data must be carefully managed to prevent unauthorized access.

• Consumer Agreement Requirements: Consumers accessing MLS® listings must affirm their interest in real estate services through a Terms of Use agreement. This agreement must prevent users from copying, redistributing, or using data for anything beyond their personal, non-commercial use.

• Data Protection and Security: All VOWs must guard against data mining, “scraping,” and any unauthorized collection of MLS® data, with security measures such as firewalls and regular activity audits.

Showings and Appointments: Handling Key Access and Security

To ensure property security, PropTx mandates strict protocols for handling lockboxes, keys, and security cards. Only authorized users can access these items, and realtors are responsible for keeping access codes confidential. Realtors must log each interaction with these security devices, ensuring transparency and compliance.

Clear Guidelines on Advertising and Self-Promotion

The updated rules restrict promotional content within listing descriptions:

• Public Fields: Public-facing listing descriptions cannot include promotional material, self-promotion, or contact information. All remarks should strictly relate to property features, improvements, or details relevant to potential buyers.

• Broker Remarks Field: Realtors may share contact details and additional information meant specifically for cooperating agents in designated fields rather than public listing areas.

Transparent Remuneration Practices

New policies clarify remuneration details and require that any offer of remuneration be transparently stated on the MLS® System. Any amendments to the remuneration agreement, whether directed by the seller or negotiated between brokerages, must be promptly updated on the listing to avoid misunderstandings. Remuneration earned by cooperating brokerages must be disbursed within seven days of transaction completion unless under dispute, in which case a clear process for arbitration is available.

Compliance and Monitoring

PropTx emphasizes compliance across all aspects of the new rules. Realtors are required to retain a clear record of listing agreements, adjustments, and access logs to demonstrate adherence to these standards. In the event of a rule violation, realtors may face disciplinary action in accordance with PropTx’s and the Association’s policies.

Conclusion: Adapting to the New MLS® Standards

These PropTx MLS® rules mark a significant shift toward increased accuracy, data protection, and accountability for Ontario realtors. By understanding and integrating these requirements, realtors can ensure compliance and continue to operate within PropTx’s framework for professional real estate transactions. Staying informed about these changes will not only protect realtors but also elevate the level of service provided to clients.