The MLS provide a marketplace for participating members to offer cooperation/compensation in the transaction of real estate. But what happens when one of the agents is not a member of the MLS?
It is important to understand that the offer of compensation published in the MLS is an offer to OTHER MEMBERS of the MLS. If the other party is NOT a MLS member, the listing
g broker is under no obligation from the MLS to pay the compensation published in the MLS. Any compensation agreement between the brokers should be negotiated separately and agreed upon in writing.
Consider the following scenario where, as a member of the MLS, you receive a purchase agreement from a non-member broker/agent on one of your listed properties.
On the old system, the MLS asked for information on who the selling agent was when the listing was reported sold – which occurred AFTER closing.
On Paragon, we are now collecting this information when the listing is PENDING, however, the selling agent’s name will appear ONLY to the LISTING agent. This way the listing agent/broker will have notice PRIOR to closing whether or not compensation is guaranteed through the MLS.
This also means that if the buyer’s broker/agent is NOT a member of the MLS, she or he will have time to negotiate a separate compensation agreement with the listing broker, outside of the MLS, prior to closing.
