California Real Estate Practice Exam

Pocket listings are governed by what?

1. State real estate commissions

2. National Association of Realtors

3. Multiple listing service rules

4. Local real estate association guidelines

The correct answer is: Multiple listing service rules

Pocket listings are primarily governed by the rules and regulations set forth by Multiple Listing Services (MLS). A pocket listing refers to a property that is not listed on the MLS but is marketed privately or shared among select real estate professionals. Since MLS systems have specific guidelines regarding whether properties can be listed, marketed, and shared, pocket listings fall under these jurisdictions. The rules of the MLS dictate how listings should be handled, including compliance with fair housing laws and the obligations of real estate professionals to disclose property information properly. MLS regulations are designed to promote transparency and equal opportunity in the market, thus impacting how pocket listings are managed. While other entities like state real estate commissions, national associations, and local real estate associations may have influence or set general guidelines, the specific handling of pocket listings is most directly related to the policies established by the MLS.