CMLS Succeeds in Protecting Interest of Consumers with U.S. Department of Justice Settlement
May 5, 2009
COLUMBIA, SC – May 4, 2009 – Today Columbia’s Consolidated Multiple Listing Service (CMLS) announced that it has reached a settlement with the U.S. Department of Justice in which CMLS fought in the interest of the consumers- those people both buying and selling homes in the Midlands- to protect their interest, safety, security and trust in professionals of our industry.
In this settlement/agreement, CMLS has been able to maintain its position on the following issues:
- Criminal Background Checks: CMLS will continue to require background checks for its member companies, including agents and staff in order to protect the consumer. Realizing the need to ensure safety of consumers, CMLS initiated criminal background checks in April 2007 and was the first MLS in the country to implement a secured access system to verify the identity of individuals prior to allowing them access to CMLS database. Since CMLS members and staff have access to sensitive consumer data and agents have electronic keys providing entrance of listed properties, it is crucial for CMLS to ensure that this access is only granted to individuals whose identities have been verified.
- Errors & Omission Insurance: DOJ agreed with the CMLS that it does not have to do business with real estate companies that do not have Errors & Omissions Insurance, and companies that do not have E & O Insurance must disclose that fact in writing to the CMLS and the consumers.
- Lockbox Security: CMLS will continue to require ActiveKEY or Electronic Key lockboxes, which record and immediately notify the listing agent about who is trying to access the home. CMLS feels very strongly that this state-of-the-art lockbox system is necessary to ensure the safety and protection of homeowners.
- Professional Duties and Job Performance: CMLS will continue to adhere to South Carolina state law in regards to the professional responsibility of member agents to the consumer. SC Real Estate Law 40-57-137 requires brokers to be responsible for professional duties to the consumer.
- Specific Place of Business: CMLS will continue to follow South Carolina state law in regards to requiring real estate companies to have a specific place of business. SC Real Estate Law 40-57-135 requires a licensed broker-in-charge or property manager-in-charge shall establish and maintain a specific office location which must be accessible by to the public during reasonable business hours. In addition to wanting to follow state law, CMLS feels that this membership requirement is important to ensuring the safety of its members and consumers.
In conclusion, with this settlement we can get back to the focus of helping take care of the Midlands current and would-be homeowners with the same level of service and professionalism that they have come to expect.
About CMLS
Columbia’s Consolidated Multiple Listing Service (CMLS) has been in existence for over 30 years. CMLS provides service to over 370 companies with a total of over 2700 agents. CMLS provides membership to owners of real estate related companies.
