2024 NAR Settlement FAQs
- Compensation – what a broker will pay another broker when they bring a buyer -also called shared commission.
- Commission – what a seller pays the broker they have hired to sell their property
- Concessions – what a seller will give to a buyer who purchases their property - Not prohibited in the MLS
Q: Is there MLS approved language that can be used to describe seller concessions?
A: The basic concession text approved by MLS is: “seller will consider concessions” or “seller will consider concessions with offer".
Q: Can concession language in remarks mention buyer’s agents such as “buyers agent welcome” or “seller offers concessions to buyers agents”
A: No. MLSListings prohibits wording in the MLS which can imply that buyer’s agents will receive compensation and or payment fees.
Q: Can I ask for or require the Seller's Payment to Buyer's Broker, form SPBB and/or the Buyer’s Representation and Broker’s Compensation Agreement, form BRBC in the remarks or in the listing?
A: No. The SPBB and BRBC are payment forms for agent fees and the MLS cannot not be used to convey or communicate compensation or payments to agents.
Q: Will MLSListings add concession fields?
A: No. Adding new concession fields was determined to be a high-risk activity for attracting copycat lawsuits. If the market landscape changes, the MLS will change with it.
Q: Can I add a seller's concession provisions in remarks?
A: Yes. Seller to buyer incentives have always been permissible. However, statements should never direct or instruct their use in the MLS as compensation, commissions or agent fees.
Q: What are the consequences of violating the new compensation/concession rule?
A: The first violation of either rule receives an educational warning and the removal of the violating content.
The third violation of the rule receives a $1000 to the broker, a 60-day suspension of the agent from the MLS , and the removal of the violating content.
Compensation/Commission FAQs:
Q: Is compensation on the MLS going away?
A: Yes, MLSs will no longer be able to publish any offer of compensation. Any use of the MLS to convey or communicate an offer of compensation will be a serious MLS rules violation.
Q: Can compensation/commission/concession information be added to the public/private remarks?
A: Compensation – MAY NOT be added to the public or private remarks.
Commission – MAY NOT be added to the public or private remarks.
Concessions – can be added to both remarks areas.
Q: Will all compensation be removed?
A: Yes. All compensation values for current and historical listings have been removed from display and data feeds.
Q: Can I link in the MLS to documents or destinations which would have an offer displayed?
A: No. Any connection, communication or conveyance of an offer, in or from the MLS, is strictly prohibited.
Q: Can I show an offer of compensation on my listings on my website and add the link in the MLS?
A: Yes, you can show an offer on your listing only (not others) but cannot add a link which goes directly to the listing.
Q: Can sellers still make offers of compensation to buyer's agents?
A: Yes. The information exchanges and negotiations can be made via phone, email, text, in-person or any other means available, outside of and not in connection with the MLS.
Q: What are the consequences of violating the new compensation/concession rule?
A: The first violation of either rule receives an educational warning and the removal of the violating content.
The second violation of the rule receives a $1000 fine to the agent, and the removal of the violating content.
The third violation of the rule receives a $1000 to the broker, a 60-day suspension of the agent from the MLS , and the removal of the violating content.
Buyer Agreement FAQs:
Q: What about a Buyer Agreement and other forms that REALTORS must now use?
A: The settlement requires agents to have a Buyer's Agreement in place when showing or providing services. The MLS will enforce this under its documentation rules. For scenario-based forms questions please visit the California Association of REALTORS for lots of good information at www.car.org.
Q: What are consequences for violations of the Buyer Broker Agreement requirement under the NAR settlement?
A: The MLSListings Board of Directors has implemented the following schedule for enforcement when agents are found to be in violation:
1st violation – The penalty is warning with education
2nd violation – A $200 fine to the agent
3rd violation – A $400 fine to the agent
Special Open Forum
NAR Settlement Implementation with Jesse Gutierrez
NAR Settlement Implementation with Dave Wetzel & Robert Bustamante
MLSListings opted-in and has agreed to be covered under the settlement and to implement the MLS requirements.
The N.A.R. settlement, reached on March 15, 2024, is an agreement to resolve many antitrust lawsuits that accused the National Association of REALTORS under various claims tied to commissions and offers of compensation.
- The settlement includes a $418 million payment and changes to its policies and practices which must be in effect by August 17, 2024
What’s important is it resolves claims against NAR and nearly every member; all state, and local REALTOR® associations; all association-owned MLSs; and all brokerages with an NAR member as principal whose residential transaction volume in 2022 was $2 billion or below.
Additional Resources:
For more or any settlement questions please contact your Broker or visit facts.realtor (NAR's settlement website)
CAR members can visit the CAR Media Center and login for additional updates on the Settlement here: https://www.car.org/en/aboutus/mediacenter/news/narsettlement
For deeper legal questions you can also visit:
https://www.nar.realtor/the-facts/nar-settlement-faqs
Realtor's Edge Series with RPR- Next Generation Reports and Scriptwriter
FAQs For Consumers:
Negotiating Written Buyer Agreements
Why am I being asked to sign a written Buyer Agreement?
Open House and Written Agreements
Realtor's Duty to put client interests above their own
What Veterans need to know about buying a home
For Additional Consumer Questions please visit the link below, or contact the Settlement Administrator:
www.RealEstateCommissionLitigation.com
Settlement Administrator 888-995-0207