The MLS rules call for a pending sale to be reported within 3 days, but can my seller and the buyer agree to allow the listing to remain in an active status on the MLS until the expiration of the inspection period (in this instance, there is a 7-day inspection period)?

No. If there is an accepted offer, the status of the listing must be transitioned from Active to Pending within 3 calendar days. The seller and buyer cannot come to an agreement that overrides the MLS Rules. While you have a fiduciary duty to your client, the MLS owes its fiduciary duty to the brokers who participate in it. Those brokers have a right to know that a property is truly available for sale and that their offer, if accepted, would be in the first position. The only exceptions are:

• The Active/Contingent Status may be used in lieu of Pending in the following, limited circumstances: 1) short sales where the title holder and buyer have agreed by signature on the purchase agreement but the transaction is still subject to lender approval, 2) bank-owned properties where verbal acceptance has been offered but paperwork is still in process, and 3) properties that are subject to approval by a relocation company. In all instances, the status must be transitioned to pending once those approvals are in place.

• The property may remain in an Active status on the MLS if the sale is contingent upon the sale and closing of the buyer’s house (the 3rd checkbox in the Contingencies Paragraph in the West Michigan Regional Purchase Agreement). In these situations, the seller may keep the property in an Active status and even sell it to another buyer (with no obligation to the first buyer) if the second buyer comes along before the contingency has been removed. It may seem simplistic, but if a seller wants the benefits of MLS exposure, it must agree to abide by the MLS rules.