The listing broker should explain to their client the benefits and costs of the various types of marketing that can be done for a listing, and how potential buyers might respond to such marketing—including any buyer costs that the listing broker or seller may offer to pay.

A listing broker should inform the seller about costs the buyer will incur, how the buyer might react to those costs, and how the seller can market a house considering the buyer’s costs; but a listing broker must not tell a seller that a broker will steer buyers based on the amount that broker is compensated.

Home sellers will have more transparency regarding commissions, and home buyers will be better informed about the compensation arrangements for their brokers.

Compensation can still be included in the MLS, but with new guidelines for how it is presented and communicated.

Buyer brokers will be compensated based on new structures outlined in the settlement, which emphasize transparency and fairness in compensation offers.

If brokers cannot use MLSs, compensation offers will need to be communicated through alternative methods specified in the settlement guidelines.

No changes will be made to:

• Historical information around compensation for any off-market listings (closed, rented, canceled, or expired prior to August 17) except for pending.
• Seller concession fields for closed listings (Change Sales tab).

No, MRED is not required to receive a copy but can request it as a matter of their local enforcement.

MRED staff will monitor:

• Remarks fields for any mentions of compensation, bonuses, fees, etc.
• Photos and other media for mentions of compensation, bonuses, etc.
• Third-party sites receiving data from MRED for aggregated compensation information, or ability to filter/search by compensation.
• Existence of valid written buyer agreement, requested as needed to resolve complaints and appropriate fines up to $2,500 will be levied as needed.

Send an email to rules.regs@mredllc.com or use the ‘Report Violation Anonymously’ flag on the MLS.

No. A seller’s willingness to negotiate “concessions” cannot be construed as a code word for an offer of compensation to the buyer’s agent.

To prepare for August 17:

• Review your current listing agreements and make sure they are in line with the changes before August 17.
• Review your buyer rep agreements and make sure they are in line with the changes prior to August 17.

While NAR has long maintained – and continues to maintain – that cooperative compensation and NAR’s current policies are good things that benefit buyers and sellers, we also acknowledge that continuing to litigate would have hurt members and their small businesses, so have agreed to put in place a new rule prohibiting offers of compensation on an MLS. This is consistent with NAR’s long-maintained position that prohibiting all offers of cooperative compensation entirely would harm consumers and be inconsistent with real estate laws in the many states that authorize them.

If the sales contract is executed before the MLS policy change on August 17, the buyer broker should be able to rely upon the offer of compensation even if closing occurs after the date of the policy change. But if a sales contract is not executed before the date the participant’s MLS implements the policy changes, the offer on an MLS will not be valid and buyers and buyer 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.

Yes, MLS Participants may augment MLS data or data feeds with offers of compensation to buyer brokers or other buyer representatives for only listings of their own brokerage.

No, use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers to buyer brokers or other buyer representatives is prohibited.

Brokers and agents can prepare by familiarizing themselves with the new requirements, including the need for written Buyer Representation Agreements and the removal of compensation information from MLSs. They should update their processes and systems to comply with the settlement and communicate the changes clearly to clients. Training and resources may be available to help brokers and agents adapt to the new requirements effectively.

Resources such as NAR's official communications, webinars, and training materials are available to help understand the settlement. NAR will provide guidance and updates on how to comply with the new requirements. Brokers, agents, and consumers can access these resources to stay informed and ensure they understand the implications of the settlement.

NAR members should familiarize themselves with the settlement requirements and update their practices accordingly. This includes implementing written Buyer Representation Agreements and adapting to changes in compensation information handling. Members should stay informed about any additional guidance or resources provided by NAR to ensure compliance and smooth adaptation to the new rules.

The settlement may impact training and education by necessitating updates to curricula and training materials to reflect the new requirements. Brokers and agents will need to be educated on the new rules, including the handling of Buyer Representation Agreements and changes in MLS practices. NAR and other industry organizations may provide resources and training to support this transition.

Resources available to help brokers and agents include training programs, updated guidelines from industry associations, and online resources provided by real estate organizations. These resources aim to educate brokers and agents about the new requirements and provide them with the tools and knowledge needed to comply effectively.

Brokers and agents should seek training that covers the new settlement requirements, including changes to compensation disclosure and MLS practices. Training might include workshops, webinars, online courses, and seminars provided by real estate associations or industry experts to ensure they understand and can implement the changes effectively.

Brokers and agents can stay updated with ongoing changes by subscribing to industry newsletters, attending relevant training sessions, and participating in professional development opportunities. They should also regularly check for updates from real estate associations and regulatory bodies to ensure they are aware of any new developments or amendments to the settlement requirements.

The buyer broker may not receive compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer.

Yes

The settlement changes will affect day-to-day practices by altering how brokers and agents handle compensation disclosures and client agreements. Agents will need to adjust their processes to comply with new requirements, such as providing clear written Buyer Representation Agreements and updating their methods of handling compensation information. This may also impact their interactions with clients and the way they manage transactions.

Brokers and agents may need to adjust their operations by implementing new compliance procedures, updating their documentation practices, and modifying how they disclose compensation details. They might also need to train their staff on the new requirements and ensure that their systems and processes align with the updated regulations to avoid potential issues and ensure smooth operations.

Brokers and agents can ensure compliance with the new settlement requirements by thoroughly understanding the new rules, integrating them into their daily practices, and regularly reviewing their processes to ensure they are up to date. Utilizing checklists, seeking guidance from industry experts, and participating in relevant training can also help maintain compliance and avoid potential pitfalls.

If you are a buyer and your agent is using an MLS, you will need to sign a written agreement with your agent before touring a home so you understand exactly what services will be provided, and for how much.

Written agreements are required for both in-person and live virtual home tours.

You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.

Agent compensation for home buyers and sellers continues to be fully negotiable.

When finding an agent to work with, ask questions about their services, compensation, and these written agreements.

Listing brokers should inform their clients that offers of compensation will no longer be an option on an MLS.

Beginning August 17, the NAR settlement will require brokers who are working with a buyer to enter into a written buyer brokerage agreement.

Buyer brokerage agreements lay out exactly what you, as a broker, will provide to your buyer clients including services provided and how compensation will be determined and paid.

Brokers and agents should be aware of the potential legal implications, including changes to compliance requirements and potential liability issues. It is important to consult with legal professionals to understand how the new regulations impact current practices and to ensure that all documentation and agreements are in line with the new rules.

Brokers and agents should review and update their legal documents, including Buyer Representation Agreements and disclosure forms, to ensure they meet the new requirements. It is advisable to work with legal counsel to make necessary adjustments and to verify that all documents are compliant with the new regulations.

The National Association of Realtors (NAR) entered into the settlement to resolve antitrust litigation alleging that NAR's policies inflated commissions and reduced competition.

NAR chose to settle to avoid the uncertainty and potential financial risk of a trial. The settlement allows NAR to focus on its mission while addressing concerns raised in the litigation.

Key points include changes to commission disclosure practices, restrictions on how commissions are negotiated and advertised, and a commitment to increased transparency.