As we approach implementation of the MLS changes to a post-settlement MLS environment, you may have questions about what to do with certain agreements. On each of these issues, please consult with your Broker who may have specific instructions or office policies. For more details on these and other questions please visit the FAQ’s at https://facts.realtor
The following guidelines drawn from the FAQ’s at https://facts.realtor can provide guidance on what changes you may need to be making to your agreements or listings as you transition to compliance:
If I have a BUYER agreement entered BEFORE August 15,2024*:
- You should amend the agreement to make sure that any compensation expressed is not open ended and is objectively ascertainable. (FAQ 67)
- You should amend the agreement to remove any provision that authorizes the buyer broker to keep any offers of compensation exceeding the amount of compensation agreed with the buyer. (FAQ 68)
- You should provide and document additional conspicuous disclosure that, “compensation is not set by law and is fully negotiable.” (FAQ 37)
If you have an active LISTING agreement entered BEFORE August 15, 2024*:
- If the listing agreement instructs the listing broker to make an offer of compensation without reference to the MLS, no change to the listing agreement is needed, as the listing broker can comply with that instruction without violating the MLS policy change.
- If the listing agreement specifies that offers of compensation be made “on the MLS,” then the listing broker should work with the seller to amend the listing agreement before the MLS policy change is implemented, to make it clear the listing broker will not make an offer of compensation on the MLS and will not be violating the listing agreement by failing to make an offer of compensation on the MLS. (FAQ 38)
- You should provide and document additional conspicuous disclosure that, “compensation is not set by law and is fully negotiable.” (FAQ 37)
If you have a listing UNDER CONTRACT prior to AUGUST 15, 2024*:
- The buyer broker should be able to rely upon the offer of compensation even if closing occurs after the date of the policy change. (FAQ 39)
- If you have a contract that is NOT executed before AUGUST 15, 2024*: The offer on the MLS will NOT BE VALID and Buyers and Brokers may wish to protect themselves in writing with the listing broker or seller through a broker agreement, or by including the offer of compensation in the sales contract. (FAQ 39)
On each of these issues, please consult with your Broker who may have specific instructions or office policies. For more details on these and other questions please visit the FAQ’s at https://facts.realtor
Check your listings for non-compliant language!
There cannot be any rererences to offers compensation anywhere in the MLS. (FAQ 19) Places to check for references to compensation or bonuses include:
- Both public and REALTOR remarks
- Any document you have uploaded
- Your showing instructions or remarks
*August 15th date is based on planned implementation/adoption of the changes prescribed by the ROAM Board of Managers for August 15th.
