East County Business News by Rick Griffin
Consumers should be cautious about “pocket listings,” a real estate industry term referring to a private for-sale home listing that has not been advertised or entered into a local Multiple Listing Service (MLS), according to the California Association of Realtors (CAR). Gov Hutchinson, CAR assistant general counsel, recently discussed pocket listing at a legal update meeting hosted by the Pacific Southwest Association of Realtors (PSAR), a San Diego-based trade group that offers resources and services to local realtors. Hutchinson said that bypassing the MLS could affect the typical seller’s interest in procuring the highest and best offer. He also said realtors privately offering pocket listings could expose their listing office and themselves to liability involving breach of fiduciary duties, ethics violations and fair housing and antitrust issues.