The new fields will be enabled on Aug. 14, 2024. All fields are unrequired.

• Seller Offers Concession (Y/N) on Listing Input

• Seller Final Concession Type: (% or $) on Change Sold Status

• Seller FinalConcession Amount on Change Sold Status

Metro MLS will not collect buyer agreements. However, Metro MLS may ask for agreements at any time. Metro MLS does not provide or require a specific agreement form. WRA will be releasing various forms soon.

From NAR: “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.“

There will be a disclaimer to confirm you are using a buyer representation agreement in Aligned Showings.

From NAR: “Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. The types of compensation available for buyer brokers would continue to take multiple forms, depending on broker-consumer negotiations, including but not limited to:

• Fixed-fee commission paid directly by consumers
• Concession from the seller
• A portion of the listing broker’s compensation
• Compensation would continue to be negotiable and should always be negotiated between agents and the consumers they serve.“

From NAR:

“MLS Participants working with sellers must disclose in conspicuous language that broker commissions are not set by law and are fully negotiable. MLS Participants must include the disclosure in the listing agreement if the listing agreement is not a government-specified form. If the listing agreement is a government-specified form, a separate disclosure would satisfy the requirement.“

From NAR:

“Prohibit the use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers or other buyer representatives.  Such use must result with an MLS terminating the Participant’s access to any MLS data and data feeds.“

Brokers may display your brokerage commissions on your website. Since Metro MLS will no longer have your commission information, your IDX vendor or webmaster may need to assist you, if you choose to display this information.

From NAR: “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.”

Concessions and commissions serve different purposes in a real estate transaction. A seller offers concessions to the buyer, whereas commissions are negotiated between cooperating brokerages and their clients.

• Concession Fields in Flexmls
• The Seller Offers Concessions (Y/N) on listing input is optional in Flexmls.
• You must not specify a dollar amount or percentage if you reference concessions in the remarks fields.
• Learn more about concessions by reading NAR’s resource page.
• Listing Contracts
• A listing contract must be uploaded within 48 hours of the contract’s start date. You are required to use the new required WB forms reflecting the NAR changes.
• Do not upload any additional documents that reference commissions in Flexmls. The only document allowed is the listing contract.

The NAR settlement agreement prohibits any information relating to compensation, commission or co-brokerage in the MLS and its products.

All brokers and agents must adhere to these guidelines to avoid penalties, limit liability for themselves and fellow brokers/agents, and ensure we maintain compliance with NAR.

MLSs have always provided significant value beyond communicating offers of compensation.

MLSs:

• Enable comprehensive marketplaces: Access to inventory and widespread advertising incentivizes local broker participation.
• Ensure reliable data access: NAR guidelines for local MLS broker marketplaces enable hubs of trusted, verified information where all participants have equitable access.
• Create connections: Local MLS broker marketplaces create the largest opportunity for connections between real estate agents with properties to sell and those with clients looking to buy.
• Advance small business: Compiling housing information that is accessible to all businesses, in one place, allows smaller real estate brokerages to compete with larger ones.
• Encourage entrepreneurship: Because of lower barriers to entry enabled by local MLS broker marketplaces, new market entrants can advance technology, consumer service and other innovations.

Steering is often thought of as influencing a buyer’s choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin. However, it is also steering to influence a buyer based on the amount of broker compensation that is offered. This includes filtering or withholding information about available properties. This is still prohibited, even off the MLS.

There are also issues when a listing agent steers their seller to offer higher compensation based on the expectations of buyer’s agents. Regarding the settlement agreement, NAR says:

“The listing broker should explain to her 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 (or agent) must not tell a seller that a broker (or agent) will steer buyers based on the amount that broker (or agent) is compensated.“

NAR says:

“If the sales contract is executed before the MLS policy change, 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.“

Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can offer buyer concessions on an MLS (for example—concessions that can be used for buyer closing costs).

The settlement does not change the ethical duties that NAR members owe their clients. REALTORS® are always required to protect and promote the interests of their clients and treat all parties in a transaction, honestly (Article 1, COE).

NAR members will continue to use their skill, care and diligence to protect the interests of their clients. NAR remains dedicated to promoting transparency in the marketplace and working to ensure that consumers have access to comprehensive, equitable, transparent, and reliable property information, as well as the ability to have affordable professional representation in their real estate transactions.

MLS participants working with buyers must enter written agreements with buyers before touring a home. The written agreement must include specific language as stated in the settlement. WRA has a pre-agency showing agreement available that you can find on the WRA Forms Library.

Yes, Aligned Showings will have an acknowledgement message anytime an agent schedules a showing in the system that states that by agreeing to schedule a showinging that you are will have an executed showing agreement before the appointment.

Metro MLS chose Aug. 14, 2024, to give members time to make changes prior to the Aug. 17, 2024, class certification by the courts.

From NAR: “In accordance with mandatory NAR policy, REALTOR® MLSs must implement the practice changes by August 17, 2024.  If they do not, they will not be in compliance with NAR mandatory policy. NAR recommends all MLSs opting into the settlement implement the practice changes by August 17, 2024. NAR’s accelerated rule change process, during which it released the exact language of the practice changes in early May, gives MLSs over three months to implement the changes by August 17, 2024.”