Listing a Power of Sale? The Rules Still Apply

Is a Power of Sale listing exempt from certain MLS® Rules?

No.

Whether the seller is an individual or a financial institution, TRESA, RECO, the REALTOR® Code and MLS® Rules still apply in full. Your professional obligations as a REALTOR® remain unchanged. 

A power of sale listing does NOT supersede MLS® Rules. Requests to include statements such as “Buyer to verify” or “Buyer to confirm” or “No representation by the Seller or Listing Agent” in the Listing Agreement and Data Input Form are not permitted.

If a lender is unwilling to meet the MLS® requirements, the alternative is an exclusive listing – while still adhering to the REALTOR® Cooperation Policy (Article 30 - Duty of Cooperation).  

So, what is Permitted?

You may include permissive language that does not reduce responsibility, such as:

  • “Sold as is”
  • “Buyer may verify” (as this is permissive language)

Your ongoing Obligations

  • Verify all information
  • Avoid misrepresentation
  • Disclose known material latent defects
  • Cooperate with other brokerages

You remain responsible for:

  • Misrepresentation
  • Failure to disclose known defects
  • Incorrect MLS® data
  • Improper marketing

MLS® Rules apply equally to every seller – Financial Institutions included.