Our MLS requires the entry of listings for properties located within the MLS jurisdiction, which includes Hamilton and Sequatchie Counties (Tennessee) and Catoosa, Dade and Walker Counties (Georgia). In addition, the MLS allows entry of listings for properties located outside the MLS jurisdiction.
While our MLS platforms enable the entry of listings and comp sales regardless of the location of a property, we remind all MLS Participants and Subscribers of the old adage – Just because you CAN, doesn’t mean you SHOULD.
In most circumstances*, you must be licensed in the state in which the property is located. This requirement is applicable for both the listing and selling side of a transaction.
Our MLS Staff has the authority to remove any listing or comp sale when a broker (and any licensee acting on behalf of the broker) enters a listing or a comp sale into the MLS and is not licensed in the state where property is located. Any potential violations in this regard should be reported to our MLS Staff.
Upon notification of a potential violation, our MLS Staff will confirm whether the broker (and any licensee acting on behalf of the broker) is licensed in the state in which the property is located, and, if necessary, remove the listing and/or comp sale from the MLS.
*Since our MLS jurisdiction includes counties in Tennessee and Georgia, we provide the following information regarding compensation of nonresident brokers:
- Tennessee law (see Tennessee Code Annotated 62-13-302) prohibits a licensed broker from employing or compensating any person who is not a licensed broker or a licensed affiliate broker for performing any of the acts that require a Tennessee real estate license. However, a licensed broker may pay a commission to a licensed broker of another state if such nonresident broker does not conduct in Tennessee any of the negotiations for which a commission is paid.
- Georgia law (see Official Code of Georgia Annotated 43-40-9 (e)) allows out-of-state brokers to participate in real estate transactions and commissions with Georgia brokers through (1) referral of clients or prospects, (2) written agreements with GA brokers and/or (3) nonresident licensure. Click here for more details about Nonresident Brokerage Activity in Georgia.