NAR: MLS RULE CHANGES


Pending Changes to the Way Buyers Engage with a Real Estate Professional:

  • All following changes are to go into place by mid-July
  • Buyer Broker Compensation must be conveyed off of MLS
  • Buyers working with Agents must have Buyer-Broker Agreements signed before showing property.
    • The agreements must have compensation that is clearly defined and not open ended (can’t say “whatever the Seller is willing to pay”, etc)
    • Offer of Buyer Broker compensation cannot exceed what is agreed upon in the Buyer Broker agreement.  (*this is an important one – it means that the Buyer and their Agent genuinely have to come to an agreement for compensation of services)
    •  They are allowing for individual Brokerages to communicate their compensation through their own websites or other channels individually, but not through any MLS mechinism.  
    • Sellers are permitted to offer Buyer concessions on MLS (e.g. for buyer closing costs), so long as such concessions are not limited to or conditioned on being used for a cooperating Broker. 
  • Listing agents must “conspicuously” disclose to Sellers and obtain approval in writing for any payment given to any Buyers agent 

Conclusions:

These changes will not take place until Mid July 2024 (at the earliest) so in the short run, not much will change. Commissions will still be negotiated between Sellers and Listing agents and a portion will be offered through MLS to the Buyer’s Agent.  The changes are not set to take place until summer 2024 and a lot of the details still need to be worked out.  As we approach the new rule changes, we will keep you informed and do everything necessary to conform to the new procedures.  We feel very strongly that even after the rules change, Sellers will still have every incentive to continue to pay Buyer Agent commissions for their Buyers, but whatever side of the balance sheet our Buyer Broker Commissions fall, we will be bringing the same level of professionalism and dedication to our Buyers and Sellers that we always have.  And we look forward to helping you navigate one of life’s most important purchases very soon.   

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