Reactive vs. Proactive Compliance: A Smarter Path Forward for MLSs

The Hidden Challenge in MLS Compliance

MLS compliance teams work tirelessly to protect listing integrity, maintain data accuracy, and uphold trust in the real estate ecosystem. But as listing volumes grow and regulations shift, the job has become more demanding than ever.

Here’s something that might surprise you: when we reviewed listings from a top MLS, we found that while only about 1% of listing photos were flagged for photo compliance issues, nearly 1 in 10 listings contained photo violations. These typically go unnoticed until they become disputes.

This isn’t about inefficiency, it’s about the reality of scale. With thousands of new listings every day, even the most dedicated compliance teams can only catch so much. Meanwhile, agents assume their listings are fine until they receive a violation notice, leading to frustration, delays, and unnecessary mediation.

Even then, agents typically only report certain types of photo compliance violations, such as branding in listing photos. But a typical agent wouldn't think twice about something like a photographer’s reflection appearing in a window or mirror. That may not seem like a big deal to them, but it’s still a compliance issue for the MLS and the broker.

And once these violations escalate into disputes, they consume a significant amount of mediation time between the MLS compliance team and the agents or brokers involved.

Think about it:

• A call comes in to report the issue.
• A compliance officer reviews the reported violation.
• Another call to the listing agent or broker.
• Follow-ups as needed with the agent.
• Status updates back to the reporting agent.
• Confirmation that the issue is resolved.
• Documentation and logging for compliance records.
• Final communication to close the case.

Now multiply that process across hundreds of cases each month. 50% of all MLS compliance mediations involve photo-related issues. That’s a massive operational drain.

And here’s the bigger issue: most compliance tools today only detect problems, they don’t solve them. That means agents and MLS staff are left with more work, more manual reviews, and more friction instead of less.

But what if compliance could be effortless? What if MLSs could intercept violations before they ever become a problem, not only catching issues but correcting them instantly?

That’s the power of proactive photo compliance. A shift that doesn’t just reduce workload but transforms compliance from a bottleneck into an invisible, seamless safeguard.

Proactive Compliance: A Shift That Strengthens MLSs

Proactive compliance isn’t about adding more layers of oversight. It’s about removing roadblocks and making compliance a seamless, automated process that saves time for MLS teams, agents, and brokers alike.

Instead of reacting to violations after they occur, proactive compliance ensures that listings are clean, compliant, and ready to go live from the start.

What Does This Look Like in Practice?

• A Solution That Detects and Fixes Compliance Issues Before Listings Go Live
  Instead of simply flagging violations after submission, AI identifies and corrects issues in real time, eliminating unnecessary disputes.
• Fewer Disputes, Faster Listings
  Most compliance violations are unintentional oversights that lead to unnecessary mediation and delays. With self-correcting compliance solutions, agents can fix issues before submission, reducing disputes and ensuring faster, hassle-free approvals for everyone.
• MLS Teams Regain Time for Strategic Initiatives
  Manual compliance reviews are resource-heavy, but not all issues require human intervention.Automating routine violations means MLS teams can focus on complex cases and higher-value work.

The Future of Compliance: Smarter, Not Harder

MLSs are not just compliance enablers: they are the backbone of trust and efficiency in real estate.

Proactive compliance isn’t about tightening rules; it’s about removing roadblocks and ensuring accuracy before issues arise. And it’s not just MLS teams that benefit: brokers rely on MLSs as the first line of defense, protecting them from compliance risks, fines, and wasted time.

By embracing proactive compliance, MLSs create a seamless experience for agents, safeguard brokers, and reduce mediation burdens for compliance teams.

For agents , it means faster listings with fewer surprises.
For compliance teams, it means less manual mediation and more strategic oversight.
For brokers, it means protection from compliance risks without the operational headache.
or MLSs, it means strengthening their position as the most trusted source of real estate data.

The MLSs that take the lead today won’t just keep pace with industry changes. They will define its future.