Multiple Listing Service (MLS)
A term which needs to be explained here is Multiple Listing Service. Multiple Listing Service (MLS) is not a type of listing agreement that is entered into between the seller and the broker. However, it is an oftentimes misunderstood term.
Multiple Listing Service is the name given a service performed by a local board of REALTORS®, a professional organization, in which a real estate company may be a member. After joining the Multiple Listing Service, a member company submits listings to the service and agrees that it will allow other MLS members to cooperate in the sale of the properties listed therein and to share compensation.
The Multiple Listing Service also provides necessary information to other MLS members to assist in the sale of properties listed therein. Therefore, it is not a type of formal listing, but a marketing tool used by members of the MLS to expose properties to a wider market base.