STAUNTON-AUGUSTA ASSOCIATION OF REALTORS, INC

GREATER AUGUSTA ASSOCIATION OF REALTORS, INC.

MULTIPLE LISTING SERVICE

RULES AND REGULATIONS

PREAMBLE

The Multiple Listing Service of the Greater Augusta Association of REALTORS, Inc. (hereinafter referred to as "MLS" or "the Service" is established under authority set forth in Article XVIII of the Association Bylaws.

ARTICLE I

LISTING PROCEDURES

Section 1.1: Listings of real or personal property of the following types, which are listed subject to a real estate broker’s license and are located within the territorial jurisdiction of the Multiple Listing Service taken by Participants; exclusive right to sell, exclusive agency and co-exclusive right to sell shall be entered into the MLS within 72 hours after all necessary signatures of seller(s) have been obtained:

(a) Residential Homes/townhomes/Condos/Mobile Homes/Modular/Vacation- Resort/Camp

(b) Business/Commercial/Industrial

(d) Lots & Land/Commerical Land

(e) Multi-Family

A co-exclusive right to sell listing being one in which only two licensed brokers are given the right to sell the property. A co-exclusive right to sell listing will be allowed by MLS only if it has been signed by representatives of both brokers. If the listing broker also intends to offer compensation to buyers agents, the listing agreement and/or addendum should contain the seller's written authorization to compensate agents of prospective purchasers.

The exclusive right to sell listing is the conventional form of listing whereby the seller authorizes the listing broker to cooperate with and to compensate other brokers.

The exclusive agency listing also authorizes the listing broker, as exclusive agent, to offer cooperation and compensation on blanket unilateral basis, but also reserves to the seller the general right to sell the property on a unlimited or restrictive basis. Exclusive agency listings and exclusive right to sell listings with named prospects exempted should be clearly distinguished by a simple designation such as a code or symbol from exclusive right to sell listings with no named prospects exempted, since they can present special risks of procuring cause controversies and administrative problems not posed by exclusive right to sell listings with no named prospect exempted. Care should be exercised to denote exclusive agency and exclusive right to sell listings with prospect reservations.

Copies of all paperwork, including listing agreements, extension, price change and withdrawal authorizations, shall be retained on file by the listing broker. All paperwork shall be in proper format with appropriate signatures. A completed status change input sheet shall be retained by the listing broker on each transaction. The Association shall receive photos containing required identifying information.

All listing agreements and extensions must have signatures of those persons required to sign the deed of bargain and sale. All listing agreements and extensions are required to have the signature of one licensed agent of the listing broker's firm. When re-entering an expired listing a NEW SIGNED agreement must be obtained by the listing broker. All changes or corrections on listing agreements or extensions must be initialed or signed by all persons required to sign said document.

Exclusive right to sell listings and co-exclusive right to sell listings in regards to prospect exclusions, will be allowed by the Service. These persons must be named and on file in the listing broker’s office. The listing must clearly state “prospect exclusion” on the listing form and “prospect exclusion” must also appear on the computer. Although allowed by the Service, this practice is not encouraged by the MLS Committee.

Section 1.2: Any listing taken on a contract to be entered into the Service is subject to the Rules and Regulations of the Service upon signature of the Seller.

Section 1.3: All listing agreements shall be complete in every detail which is ascertainable as shown on the form. The MLS Committee or the Executive Officer for the Staunton-Augusta Association of REALTORS, Inc. shall withdraw any listing that does not comply with the Rules and Regulations of the Multiple Listing Service. All paperwork shall be available to the MLS Committee or the Association office at the direction of the Committee for spot check of the accuracy of information contained on such paperwork. All complaints as to the accuracy of a listing must be submitted in writing to the MLS Committee for consideration.

Section 1.4: If the seller refuses to permit listing information to be disseminated by the Service, the REALTOR may then take an exclusive listing ("office exclusive"), and such listing shall be retained by REALTOR, but not disseminated by the MLS to the Participants. The listing must contain certification signed by the seller that he does not desire the listing be placed in the Service.

Section 1.5: All changes in the original listing agreement shall be entered in the computer within 72 hours after the authorized change is received by the listing broker. Written authorization for changes must be on file in the listing broker's office.

Section 1.6: When requested by Seller, listed property may be withdrawn from MLS before the expiration date of the listing agreement provided written authorization is on file in the listing broker's office. Sellers do not have the unilateral right to require an MLS to withdraw a listing without the listing broker's concurrence. However, when a seller(s) can document that his exclusive relationship with the listing broker has been terminated, the Multiple Listing Service may remove the listing at the request of the seller.

Section 1.7: All contingencies shall be added to and removed from the computer listing within 72 hours of change. If a listing is put under contract with no contingencies it must be changed to "Pending" within 72 hours of contract. In the event the contract falls thru, the pending listing shall be "Restored to Active" within 72 hours.

Section 1.8: The full gross listing price will be stated in the listing agreement and will be included in the information published in the MLS compilation of current listings, unless the property is subject to auction.

Section 1.9: Properties with individual tax numbers should be listed separately. Lots in a subdivision should also be listed individually. Properties may be listed only once, using the property type that best suits.

Section 1.10: The MLS does not fix, control, recommend, suggest or maintain commission rates or fees for services to be rendered by Participants. Further, the MLS does not fix, control, recommend, suggest, or maintain the division of commissions or fees between cooperating Participants or between Participants and non participants.

Section 1.11: Listings filed with the Multiple Listing Service will automatically be removed from the compilation of current listings on the expiration date specified in the agreement unless prior to that date the MLS receives notice that the listing has been extended or renewed. If notice of renewal or extension is received after the listing has been removed from the compilation of current listings, the extension or renewal will be published in the same manner as a new listing. Extensions and renewals of listings must be signed by the seller(s) and on file with the listing Broker. The Association Office may remove from the system all expired listings not marked Pending or Sold after 72 hours of the expired date. Sellers do not have the unilateral right to require an MLS to withdraw a listing without the listing broker's concurrence. However, when a seller can document that his exclusive relationship with the listing broker has been terminated, the Multiple Listing Service may remove the listing at the request of the seller.

Section 1.12: Listings entered into the Service shall bear a definite and final termination date as negotiated between the listing broker and the seller.

Section 1.13: Only listings of the designated types of property located within the jurisdiction of the Multiple Listing Service are required to be submitted to the Service. Listings of property located outside the Multiple Listing Service’s jurisdiction will be allowed if submitted voluntarily by a Participant, but cannot be required by the Service.

Section 1.14: When a Participant of the Service is suspended from the MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics, Association Bylaws, MLS Bylaws, MLS Rules and Regulations, or other membership obligation, except failure to pay appropriate dues, fees or charges), all listings currently filed with MLS by the suspended Participant shall, at the Participant's option, be retained in the Service until sold, withdrawn or expired, and shall not be renewed or extended by the MLS beyond the termination date of the listing agreement in effect when the suspension became effective. If a Participant has been suspended from the Association (except where MLS participation without Association membership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees or charges, an Association MLS is not obligated to provide MLS services, including continued inclusion of the suspended Participant's listings in the MLS compilation of current listing information. Prior to any removal of a suspended Participant's listings from the MLS, the suspended Participant should be advised in writing of the intended removal so that the suspended Participant may advise his clients.

Section 1.15: When a Participant of the Service is expelled from the MLS for failing to abide by a membership duty (i.e., violation of the Code of Ethics, Association Bylaws, MLS Bylaws, MLS Rules and Regulations, or other membership obligations except failure to pay appropriate dues, fees or charges), all listings currently filed with the MLS shall, at the expelled Participant's option, be retained in the Service until sold, withdrawn or expired, and shall not be renewed or extended by the MLS beyond the termination date of the listing agreement in effect when the expulsion became effective. If a Participant has been expelled from the Association (except where MLS participation without Board membership is permitted by law) or MLS (or both) for failure to pay appropriate dues, fees or charges, an Association MLS is not obligated to provide MLS services, including continued inclusion of the expelled Participant's listings in the MLS compilation of current listing information. Prior to any removal of an expelled Participant's listings from MLS, the expelled Participant should be advised in writing of the intended removal so that the expelled Participant may advise his clients.

Section 1.16: When a Participant resigns from the MLS, the MLS is not obligated to provide services, including continued inclusion of the resigned Participant's listings in the MLS compilation of current listing information. Prior to any removal of a resigned Participant's listings from the MLS, the resigned Participant should be advised in writing of the intended removal so that the resigned Participant may advise his clients.

ARTICLE II

SELLING PROCEDURES

Section 2.1: Appointments for showings and negotiations with the Seller for the purchase of listed property entered into the MLS shall be conducted through the listing broker except under the following circumstances:

(a) The listing broker gives the cooperating broker specific authority to show and/or negotiate directly, or

(b) After reasonable effort, the cooperating broker cannot contact the listing broker or his representative. However, the listing broker, at his option, may preclude such direct negotiations by cooperating brokers.

The cooperating broker must disclose his agency status to the listing broker at first contact with the listing broker (in person, by telephone or in writing.)

Section 2.2: The listing broker must make arrangements to present the offer as soon as possible, or give the cooperating broker a satisfactory reason for not doing so.

Section 2.3: The listing broker shall submit to the seller all written offers until closing unless precluded by law, government rule, regulation, or agreed otherwise in writing between the seller and the listing broker. Unless the subsequent offer is contingent upon the termination of an existing contract, the listing broker shall recommend that the seller obtain the advice of legal counsel prior to acceptance of the subsequent offer.

Section 2.4: The cooperating broker (subagent or buyer agent) or his representative has the right to participate in the presentation to the seller or lessor of any offer he secures to purchase or lease. He does not have the right to be present at any discussion or evaluation of that offer by the seller or lessor and the listing broker. However, if the seller or lessor gives written instructions to the listing broker that the cooperating broker not be present when an offer the cooperating broker secured is presented, the cooperating broker has the right to a copy of the seller's written instructions. None of the foregoing diminishes the listing broker's right to control the establishment of appointments for such presentations.

Section 2.5: The listing broker or his representative has the right to participate in the presentation of any counter-offer made by the seller or lessor. He does not have the right to be present at any discussion or evaluation of a counter-offer by the purchaser or lessee (except when the cooperating broker is a subagent). However, if the purchaser or lessee gives written instructions to the cooperating broker that the listing broker not be present when a counter-offer is presented, the listing broker has the right to a copy of the purchaser's or lessee's written instructions.

Section 2.6: Sales shall be reported immediately to the MLS computer system by the listing office except, if negotiations were carried on under Section 2.1 (a) or (b) hereof, then the cooperating broker may report, sending a copy thereof to the listing broker within 24 hours after acceptance.

Note: The listing agreement of a property filed with the MLS by the listing broker should include a provision expressly granting the listing broker authority to advertise; to file the listing with the MLS; to provide timely notice of status changes of the listing to the MLS; and to provide sales information including selling price to the MLS upon sale of the property. If deemed desirable by the MLS to publish sales information prior to final closing (settlement) of a sales transaction, the listing agreement should also include a provision expressly granting the listing broker the right to authorize dissemination of this information by the MLS to its Participant.

Section 2.7: The listing broker shall report to the MLS computer system within 72 hours that a contingency on file with the MLS office has been fulfilled or the agreement canceled.

Section 2.8: A listing shall not be advertised by any Participant other than the listing Broker, without the prior consent of the listing broker.

Section 2.9: The listing office shall report within 72 hours to the MLS computer system at the time any pending sale is canceled, and listing is to be restored to active immediately.

ARTICLE III

REFUSAL TO SELL

Section 3.1: If the seller of any listed property entered into the MLS refuses to accept a written offer satisfying the terms and conditions stated in the listing, information shall be transmitted to the MLS computer system regarding status of the listing.

ARTICLE IV

PROHIBITIONS

Section 4.1: Any listing entered into the MLS shall not be made available to any non-participant in MLS without the consent of the listing broker.

Section 4.2: "FOR SALE" signs: Only the "FOR SALE" signs of the listing broker may be placed on a property.

Section 4.3: "SOLD" signs: Prior to closing, only the "SOLD" sign of the listing broker may be placed on the property, unless the listing broker authorizes the cooperating (selling) broker to post such a sign.

Section 4.4: Participants shall not solicit a listing on property entered into the Service unless such solicitation is consistent with Article 16 of the REALTORS Code of Ethics, its Standard of Practice and its Case Interpretations.

ARTICLE V

DIVISION OF COMMISSIONS

Section 5.1: The listing broker shall specify, on each listing entered into the Multiple Listing Service, the compensation offered to other MLS Participants for their services in the sale of such listing. Such offers are unconditional except that entitlement to compensation is determined by the cooperating broker's performance as the procuring cause of sale (or lease)or as otherwise provided for in this rule. The listing broker's obligation to compensate any cooperating broker as the procuring cause of sale (or lease) may be excused if it is determined through arbitration that, through no fault of the listing broker and in the exercise of good faith and reasonable care, it was impossible or financially unfeasible for the listing broker to collect a commission pursuant to the listing agreement. In such instances, entitlement to cooperative compensation offered through MLS would be a question to be determined by an arbitration hearing panel based on all relevant facts and circumstances including, but not limited to, why it was impossible or financially unfeasible for the listing broker to collect some or all of the commission established in the listing agreement; at what point in the transaction did the listing broker know (or should have known) that some or all of the commission established in the listing agreement might not be paid; and how promptly had the listing broker communicated to cooperating brokers that the commission established in the listing agreement might not be paid.

NOTE 1: In filing a property with the Multiple Listing Service of an Association of REALTORS, the Participant of the Service is making blanket unilateral offers of compensation to the other MLS Participants, and shall therefore specify on each listing filed with the Service, the compensation being offered to the other MLS Participants. Specifying the compensation on each listing is necessary because the cooperating broker has the right to know what his compensation shall be prior to his endeavor to sell.*

The listing broker retains the right to determine the amount of

compensation offered to other Participants (acting as subagents, buyer agents, or in other agency or nonagency capacities defined by law) which may be the same or different.

This shall not preclude the listing broker from offering any MLS Participant compensation other than the compensation indicated on any listing as published by the MLS provided the listing broker informs the other broker in writing in advance of their producing an offer to purchase and provided that the modification in the specified compensation is not the result of any agreement among all or any other Participants in the Service. Any superseding offer of compensation must be expressed as either a percentage of the gross sales price or as a flat dollar amount.

The Association Multiple Listing Service shall not have a rule requiring the listing broker to disclose the amount of total negotiated commission in his listing contract, and the Association Multiple Listing Service shall not publish the total negotiated commission on a listing which has been submitted to the MLS by a Participant. The Association Multiple Listing Service shall not disclose in any way the total commission negotiated between the Seller and the listing broker.

*NOTE: The compensation specified on listings filed with the Multiple

Listing Service shall appear in one of two forms. The essential and appropriate requirement by an Association Multiple Listing Service is that the information be published shall clearly inform the Participants as to the compensation they will receive in cooperative transactions unless advised otherwise by the listing broker in writing in advance of their producing an offer to purchase. The compensation specified on listings published by the MLS shall be shown in one of the following forms:

1. By showing a percentage of the gross selling price.

2. By showing a definite dollar amount.

(Note 2: The listing broker may, from time to time, adjust the compensation offered to other Multiple Listing Service Participants for their services with respect to any listing by advance published notice to the Service so that all Participants will be advised.)

(Note 3: The Multiple Listing Service shall make no rule on the division of

commissions between Participants and non participants. This should remain solely the responsibility of the listing broker.)

(Note 4: Multiple Listing Services, at their discretion, may adopt rules and procedures enabling listing brokers to communicate to potential cooperating brokers that gross commissions established in listing contracts are subject to court approval or to lender approval; and that compensation payable to cooperating brokers may be reduced if the gross commission established in the listing contract is reduced by a court or by a lender. In such instances, the fact that the gross commission is subject to court or to lender approval and either the potential reduction in compensation payable to cooperating brokers or the method by which the potential reduction in compensation will be calculated must be clearly communicated to potential cooperating brokers prior to the time they produce an offer that ultimately results in a successful transaction.)

Section 5.2: If a Participant or any licensee (or licensed or certified appraiser) affiliated with a Participant has any ownership interest in the property, the listing of which is to be disseminated through the MLS, that person shall disclose that interest when the listing is filed with the MLS and such information shall be disseminated to all MLS Participants.

Section 5.3: If a Participant or any licensee (including licensed and certified appraisers) affiliated with a Participant wishes to acquire an interest in property listed with another Participant, such contemplated interest shall be disclosed, in writing, to the listing broker not later than the time an offer to purchase is submitted to the listing broker.

Section 5.4: The existence of a dual or variable rate commission arrangement (i.e., one in which the seller/landlord agrees to pay a specified commission if the property is sold/leased by the listing broker without assistance and a different commission if the sale/lease results through the efforts of a cooperating broker; or one in which the seller/landlord agrees to pay a specified commission if the property is sold/leased by the listing broker either with or without the assistance of a cooperating broker and a different commission if the sale/lease results through the efforts of a seller/landlord) shall be disclosed by the listing broker by a key, code or symbol as required by the MLS. The listing broker shall, in response to inquiries from potential cooperating brokers, disclose the differential that would result in either a cooperative transaction or, alternatively, in a sale/lease that results through the efforts of the seller/landlord. If the cooperating broker is a buyer/tenant representative, the buyer/tenant representative must disclose such information to their client before the client makes an offer to purchase or lease.

ARTICLE VI

SERVICE CHARGES

Section 6.1: The following service charges for operation of the Service are in effect to defray costs of the Service, subject to change from time to time as determined by the MLS Committee and approved by the Board of Directors.

(a) Initial Participation Fee: An applicant for participation in the Service shall pay an initiation fee of $700.00. An initiation fee of $350.00 shall be charged to an applicant for participation in the Service in the event the new office is in the same name as an existing Participant' office, regardless of location. In the event a Participant remains a member of the Association, but chooses not to participate in the Multiple Listing Service for a period not exceeding twelve (12) months, the Participant shall not be required to pay an initiation fee upon returning to the Multiple Listing Service.

(b) Recurring Participation Fee: The monthly participation fee of each Participant

shall be an amount currently set by the Board of Directors times each salesperson and licensed or certified appraiser who has access to and use of the Service, whether licensed as a broker, sales licensee or licensed or certified appraiser, who is employed by or affiliated as an independent contractor with such Participant. Payment of such fees shall be made within (5) business days upon receipt of bill from the Service.

(c) For filing a new listing or renewal of listing with the Service, a flat fee may be charged for each listing submitted as determined by the MLS Committee with the approval of the Board of Directors.

Section 6.2: Should the listing fees and other service charges not be sufficient to cover operating expenses for Multiple Listing Service, the Board of Directors of the Greater Augusta Association of REALTORS, Inc., upon recommendation of the MLS Committee, may immediately impose a subscription fee which is based upon the number of subscribers affiliated with a Participant who have access to the Service, sufficient to cover all excess operating expenses.

ARTICLE VII

COMPLIANCE WITH RULES

Section 7.1: The following action may be taken for noncompliance with the rules.

(a) A late fee of $10.00 will be assessed for accounts not paid within five (5) business days of billing. An additional $5.00 per day will be assessed every day thereafter until paid. Service will be suspended until service charges and/or MLS book fees are paid in full.

(b) For failure to comply with any other rule, the provisions of Section 9.1 and 9.2

shall apply.

Section 7.2: Non-principal brokers, sales licensees, appraisers, and others authorized to have access to information published by the MLS are subject to these Rules and Regulations and may be disciplined for violations thereof provided that the user or subscriber has signed an agreement acknowledging that access to and use of MLS information is contingent on compliance with the Rules and Regulations. Further, failure of any user or subscriber to abide by the Rules and/or any sanction imposed for violations thereof can subject the Participant to the same or other discipline. This provision does not eliminate the Participant's ultimate responsibility and accountability for all users or subscribers affiliated with the Participant.

ARTICLE VIII

MEETINGS

Section 8.1: The Committee shall meet for the transaction of its business at a time and place determined by the Committee or at the call of the chairman.

Section 8.2: The Committee may call meetings of the Participants in the Service to be known as meetings of Multiple Listing.

Section 8.3: The Chairman, or Vice Chairman, shall preside at all meetings, or in their absence, a temporary Chairman from the membership of the Committee shall be named by the Chairman, or, upon his failure to do so, by the Committee.

ARTICLE IX

ENFORCEMENT OF RULES OR DISPUTES

Section 9.1: The Committee shall give consideration to all written complaints having to do with violations of the Rules and Regulations.

Section 9.2: If the alleged offense is a violation of the Rules and Regulations of the Service and does not involve a charge of alleged unethical conduct or request for arbitration, it may be administratively considered and determined by the Multiple Listing Service Committee, and if a violation is determined, the Committee may direct the imposition of sanction, provided the recipient of such sanction may request a hearing before the Professional Standards Committee of the Association in accordance with the Bylaws and Rules and Regulations of the Greater Augusta Association of REALTORS, Inc. within twenty (20) days following receipt of the Committee's decision.

If, rather than conducting an administrative review, the Multiple Listing Committee has a procedure established to conduct hearings, the decision of the Multiple Listing Committee may be appealed to the Board of Directors of the Board of REALTORS within twenty (20) days of the tribunal's decision being rendered. Alleged violations involving unethical conduct shall be referred to the Board's Grievance Committee for processing in accordance with the professional standards procedures of the Board. If the charge alleges a refusal to arbitrate, such charge shall be referred directly to the Board of Directors of the Board of REALTORS.

Section 9.3: All other complaints of unethical conduct shall be referred by the Committee to the Executive Officer of the Association of REALTORS for appropriate action in accordance with the professional standards procedures established in the Association's Bylaws.

Section 9.4: If the Committee determines a violation of Section 1.7, 2.7 or 2.9 has occurred (failure to report status changes), the following sanctions shall be imposed on the listing broker by the Committee: First offense: letter of reprimand; Second offense: $50 fine; Third offense: $200 fine; Fourth and any future offenses: $500.

ARTICLE X

CONFIDENTIALITY OF MLS INFORMATION

Section 10.1: Any information provided by the Multiple Listing Service to the Participants shall be considered official information of the Service. Such information shall be considered confidential and exclusively for the use of Participants and real estate licensees affiliated with such Participants and those Participants who are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property and licensed or certified appraisers affiliated with such Participants.

Section 10.2: The information published and disseminated by the Service is communicated verbatim, without change by the Service, as filed with the Service by the Participant. The Service does not verify such information provided and disclaims any responsibility for its accuracy. Each Participant agrees to hold the Service harmless against any liability arising from any inaccuracy or inadequacy of the information such Participant provides.

Section 10.3: Association Members who are actively engaged in real estate brokerage, management, mortgage financing, appraising, land development, or building, but who do not participate in the MLS, are nonetheless entitled to receive, by purchase or lease, all information other than current listing information that is generated wholly or in part by the MLS including "comparable" information, "sold" information, and statistical reports. This information is provided for the exclusive use of Association Members and individuals affiliated with Association Members who are also engaged in the real estate business and may not be transmitted, re-transmitted or provided in any manner to any unauthorized individual, office or firm except as otherwise provided in these Rules and Regulations.

ARTICLE XI

OWNERSHIP OF MLS COMPILATIONS* AND COPYRIGHTS

Section 11.1: By the act of submission of any property listing data to the Association MLS the Participant represents that he has been authorized to grant and also thereby does grant authority for the Association to include the property listing data in its copyrighted MLS compilation and also in any statistical report on "Comparables."

Section 11.2: All right, title and interest in each copy of every Multiple Listing Compilation created and copyrighted by the Greater Augusta Association of REALTORS, Inc., and in the copyrights therein, shall at all times remain vested in the Greater Augusta Association of REALTORS, Inc.

Section 11.3: Each Participant shall be entitled to lease from the Greater Augusta Association of REALTORS, Inc., a number of copies of each MLS Compilation sufficient to provide the Participant and each person affiliated as a licensee (including licensed or certified appraisers) with such Participant with one copy of such Compilation. The Participant shall pay, for each copy, the rental fee set by the Association.**

Participants shall acquire by such lease only the right to use the MLS Compilations in accordance with these rules.

* The term MLS Compilation, as used in Sections 11 and 12 herein, shall be construed to include any format in which property listing data is collected and disseminated to the Participants, including but not limited to, bound book, loose-leaf binder, computer data base, card file, or any other format whatsoever.

** This section should not be construed to require the Participant to lease a copy of the MLS Compilation for any licensee (or licensed or certified appraiser) affiliated with the Participant who is engaged exclusively in a specialty of the real estate business other than listing, selling or appraising the types of properties which are required to be filed with the MLS, and who does not, at any time, have access to nor use of the MLS information or MLS facility of the Association.

ARTICLE XII

USE OF COPYRIGHTED MLS COMPILATIONS

Section 12.1: Participants shall at all times maintain control over and responsibility for each copy of any MLS Compilation leased to them by the Association of REALTORS, and shall not distribute any such copies to persons other than persons who are affiliated with such Participant as licensees or those individuals who are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property. Use of information developed by or published by an Association Multiple Listing Service is strictly limited to the activities authorized under a Participant's licensure(s) or certification and unauthorized uses are prohibited. Further, none of the foregoing is intended to convey "Participation", or "Membership" or any right of access to information developed by or published by an Association Multiple Listing Service where access to such information is prohibited by law.

Section 12.2: Participants, and those persons affiliated as licensees with such Participants, shall be permitted to display the MLS compilation to prospective Purchasers only in conjunction with their ordinary business activities of attempting to locate ready, willing, and able buyers for the properties described in said MLS Compilation.

Section 12.3: Participants or their affiliated licensees shall not reproduce any MLS Compilation or any portion thereof except in the following limited circumstances:

Participants or their affiliated licensees may reproduce from the MLS Compilation and distribute to prospective purchasers, a reasonable** number of single copies of property listing data contained in the MLS Compilation which relate to any properties in which the prospective purchasers are, or may, in the judgment of the Participants or their affiliated licensees, be interested.

Nothing contained herein shall be construed to preclude any Participant from utilizing, displaying, distributing, or reproducing property listing sheets or other compilations of data pertaining exclusively to properties currently listed for sale with the Participant.

Any MLS information, whether provided in written or printed form, provided electronically, or provided in any other form or format, is provided for the exclusive use of the Participant and those licensees affiliated with the Participant who are authorized to have access to such information. Such information may not be transmitted, retransmitted or provided in any manner to any unauthorized individual, office or firm.

None of the foregoing shall be construed to prevent any individual legitimately in possession of current listing information, "sold" information, "comparables", or statistical information from utilizing such information to support an estimate of value on a particular property for a particular client.

However, only such information that an Association or Association-owned Multiple Listing Service has deemed to be non confidential and necessary to support the estimate of value may be reproduced and attached to the report as supporting documentation. Any other use of such information is unauthorized and prohibited by these Rules and Regulations.

**It is intended that the Participant be permitted to provide prospective purchasers with listing data relating to properties which the prospective purchaser has a bona fide interest in purchasing or in which the Participant is seeking to promote interest. The term "reasonable" as used herein, should therefore be construed to permit only limited reproduction of property listing data intended to facilitate the prospective purchaser's decision making process in the consideration of a purchase. Factors which shall be considered in deciding whether the reproductions made are consistent with this intent, and thus "reasonable" in number, shall include, but are not limited to, the total number of listings in the MLS Compilation, how closely the types of properties contained in such listings accord with the prospective purchaser's expressed desires and ability to purchase, whether the reproductions were made on a selective basis, and whether the type of properties contained in the property listing data is consistent with a normal itinerary of properties which would be shown to the prospective purchaser.

Section 12.4: Noncompliance with any provision of this Article shall result in a fine of $50.00 for the first offense, a fine of $200.00 for the second offense and a fine of $500.00 for the third offense.

ARTICLE XII

USE OF MLS INFORMATION

Section 13.1: Use of information from the MLS compilation of current listing information, from the Association's "Statistical Report", or from any "sold" or "comparable" report to the Association or MLS for public mass- media advertising by an MLS Participant or in other public representations may not be prohibited.

However, any print or non-print forms of advertising or other forms of public representations based in whole or in part on information supplied by the Association or its MLS must clearly demonstrate the period of time over which such claims are based and must include the following, or substantially similar, notice:

“Based on information from the Greater Augusta Association of REALTORS, Inc. or its Multiple Listing Service from the period (date) through (date)”.

ARTICLE XIV

CHANGES OR ADDITIONS TO RULES AND REGULATIONS

Section 14.1: Changes or additions to the Rules and Regulations of the MLS may be made by a majority vote of the members of the Committee, subject to approval by the Board of Directors.

ARTICLE XV

MLS WAIVER

Section 15.1: A MLS Participant may not be assessed any charges or subscription fees for printed MLS sheets/cards/books with respect to any individual who is engaged solely and exclusively in a specialty of the real estate business separate and apart from listing or selling or appraising the types of properties which are required to be filed with the MLS.

Such exemption to be effective for a period of one year, subject to annual renewal. The exemption, if recommended by the Multiple Listing Committee and approved by the Board of Directors shall not be effective until the MLS Participant has submitted to the MLS a written declaration setting forth facts sufficient to establish the exemption. For each year that the exemption is desired, the MLS Participant must submit a new declaration. The exemption shall automatically be revoked upon the licensee engaging in the sale or listing or appraising property filed with the Multiple Listing Service.

At the termination of each annual exemption, the MLS Participant shall also submit to the MLS declaration to the effect that, in fact, the exempt licensee did not, during the previous twelve month period, engage in the sale or listing or appraising of properties filed in the MLS. The declaration must be submitted NO LATER THAN the last day of the calendar year (December 31).

Section 15.2: The failure of the MLS Participant to submit such a declaration, or the submitting of a false declaration, shall automatically revoke the exemption and subject the MLS Participant to payment to the MLS, the sum equal to that year's subscription charge for the licensee involved.

Section 15.3: A MLS Participant whose business office is located outside the jurisdiction of Augusta County (including the City of Staunton and the City of Waynesboro) may not be assessed any charges or subscription fees for printed MLS sheets/cards/books with respect to any individual employed by or affiliated as an independent contractor with the Participant who does not actually have access to and use of the Service.

ARTICLE XVI

INTERNET DATA EXCHANGE

Section 16: IDX Defined: IDX affords MLS Participants the option of authorizing display of their active listings on other Participants’ Internet web sites.

Section 16.1: Participants’ consent for display of their active listings by other Participants pursuant to these rules and regulations is presumed unless a Participant affirmatively notifies the MLS that the Participant refuses to permit display (either on a blanket or on a listing-by-listing basis). If a Participant refuses on a blanket basis to permit the display of that Participant’s listings, that Participant may not download or frame the aggregated MLS data of other Participants.

Section 16.2: Participant in IDX is available to all MLS Participants who are REALTORS who are engaged in real estate brokerage and who consent to display of their listings by other Participants. This requirement can be met by maintaining an office or Internet presence from which Participants are available to represent real estate sellers or buyers(or both).

Section 16.3: Display: Display of listing information pursuant to IDX is subject to the following rules: