MLSListings Rule Changes FAQ August 2024 (Video)

MLSListings has made changes to its Rules & Policies based on the recent and ongoing NAR Settlement. This FAQ provides information specific to MLSListings Rules & Policy changes. 
_____________________________________________________________________________
Definitions: 
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
_____________________________________________________________________________
 
The NAR settlement rules are now in effect. When representing buyers and sellers, you need to be familiar with best practices for describing seller concessions as well as executing buyer-broker agreements.

This MLSListings video provides the guidelines you need to stay compliant with these and other recent industry changes. Mark Messimer and Robert Bustamante, Directors of Outreach and Compliance, explain the background and application of changes in response to the recent NAR settlement. They discuss when the use of language about concessions on the MLS implies compensation offerings and what wording is allowed in public and private remarks.

There is no flexibility with these new rules. You must be informed.
 
Q: Can compensation/commission/concessions 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: 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 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: Why do I no longer see Commission information on listings in Matrix? 
A: Due to the NAR Settlement, MLSListings has removed the Commission/Compensation field from all listings, old and new. The commission/compensation of a listing is no longer available through MLSlistings. If you need to know the compensation information of  particular listing, you can reach out to the agents/brokers involved in the transaction directly. 

Q: When do I need a written agreement with a potential buyer and what must the agreement include?
A: All MLS Participants and R.E. Subscribers working with a buyer must enter into a written agreement with the buyer prior to touring a home.

The written agreement must include:
(1) a specific and conspicuous disclosure of the amount or rate of compensation the Participant will receive or how this amount will be determined, to the extent that the Participant will receive compensation from any source;
(2) the amount of compensation in a manner that is objectively ascertainable and not open-ended;
(3) a term that prohibits the Participant from receiving compensation for brokerage services from any source
that exceeds the amount or rate agreed to in the agreement with the buyer; and
(4) a conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.

Please visit the FAQ page to answer a lot of common questions surrounding the NAR Settlement
View our NAR Settlement FAQ Here
View the Complete MLSListings Rules & Regulations Here

If you have any questions which aren't answered in the FAQ page, please email: compliance@mlslistings.com.
ComplianceAnnouncements/NewsRecent Compliance UpdatesHot Topics