Blind Contingencies

The topic has come about and after much debate, a decision has been made and it appears that blind contingencies are not allowed when posting an MLS listing. A blind contingency is when the seller and the buyer agree to not change the MLS listing to Contingent, and/or pending when there is in fact a deal pending.  There are many benefits for the seller to create this blind contingency.

A seller would chose to do a blind contingency because they still want to be able to market their home even though a deal is pending. The way the times are, anything can happen during the closing process, and nothing is set in stone until the closing is through and the key s are in your hands. Also, the seller would want to keep it on the market, for the hope that a higher offer may come along. The buyer may also agree to a blind contingency. The buyer may have a home to sell and is comfortable with the arrangement that if another offer comes in then they will go back to the drawing board.

The answer to this question is, no. By doing a blind contingency and not providing the correct information, you are going against the Code of Ethics.  Part of the Code of Ethics reads that all Realtors are to cooperate with one another. This would include sharing the correct information on the MLS listing. The Code of Ethics also states that you must be honest and truthful in your communications. By advertising the property on various websites connected to MLS, you need to have the correct information, otherwise this is a violation of the Code of Ethics. The change must be made within 72 hours of the signed contract or you risk the possibility that an MLS fee could be charged.

It is important that Realtors are also upfront and honest to each other. It is always the best way to conduct business regardless of whether or not it is a violation of the Code of Ethics. It is also important to always stay compliant and play by the rules to stay out of trouble and avoid paying fines or even lose your Real Estate License. In summary, if there is a contract on a particular property then it must be noted that way on not only the listing, but any other information and advertising that is out there for the public to see.