NAR Settlement Resources

Below, you will find information and guidance on how the settlement agreement has affected the MLS platform, policies, and procedures. These MLS changes applied to all CCMLS subscribers and participants as of August 12th, 2024. The settlement agreement received final approval from the court on November 26th, 2024.

For more information on the facts of the settlement, scroll to the bottom of the page. 

FAQs on MLS changes (updated 8/19/24)

The following FAQs and responses are provided in relation to questions received during recent member interactions. Please keep in mind that each brokerage and Broker-in-Charge may have their own unique policies and procedures in relation to the NAR settlement-required changes. It is imperative that agents follow the guidance and policies of their own BIC/brokerage. The following information is accurate as of August 19th, 2024, and should not be construed as legal advice. 

Important Reminders

• Updated SCR Forms are available for download and are in ZipForms. Please review training video on form changes provided via SCR’s YouTube channel. 
• As of August 12th, 2024, no compensation fields exist and no historical compensation data is available in Paragon.
• The NAR Code of Ethics is not being modified at this time, only MLS policies. REALTORS® must abide by the Code of Ethics. 
• Options for Buyer Agent Compensation can be found here. 
• Answers to additional FAQs can be found from SCR here and NAR here (updated 8/8/24).

FAQ’s

• Can I put offers of compensation in agent to agent remarks, ShowingTime, or as part of photos or documents uploaded to CCMLS’s platform, etc.? 
  • No! No mention of compensation can be made on the MLS platform or using any MLS-related services. If someone is viewing a listing in the MLS after August 12, 2024, they should have no idea if you are offering compensation or not.

• Where can I find the entire MLS Policy document? Specifically from where is the Policy Statement document and its enforcement coming?
  • The policy statements 8.11 and 8.13 are directly from the National Association of Realtors. The consequences for noncompliance were emailed to all MLS subscribers and will be added to the Appendix of MLS rules.

• Does an MLS or Association have the ability to enforce the settlement-related MLS changes (fines)? Wouldn't having to have the buyer agreement be enforced the state government/LLR?
  •  Per NAR Counsel: 

By participating in an MLS, brokers and licensees agree to follow local MLS rules and regulations. The MLS is intended to provide a facility for the orderly correlation and dissemination of listing information, and cooperation, so that Participants may better serve their clients and customers and the public.

The written buyer agreement requirement DOES NOT dictate the type of relationship a professional has with a potential buyer (e.g., exclusive or non-exclusive, agency, non-agency, subagency, transactional, customer); the term of the agreement (e.g., one day, one month, one house, one zip code); services to be provided (e.g., ministerial acts, a certain number of showings, negotiations, presenting offers); nor the compensation charged.

Pursuant to the requirements of the proposed Settlement Agreement, MLS policies and model MLS governing documents were updated to implement the required practice changes. REALTOR® MLSs have adopted these changes into their own local MLS rules to ensure their release through the Settlement Agreement.

Potential violations of those rules will be enforced consistent with the established procedures, which calls for potential administrative sanctions and an ability of to request a hearing if issued a sanction.  We’ll defer to local MLS rules for additional detail on process, which can include hearings before the Associations Professional Standards Committee consistent with the Code of Ethics and Arbitration Manual.  

As for state law, any conflict with it and the MLS rules would have state law taking precedence.

• What constitutes an "Offer of Compensation"? Would publishing a link or phone number where compensation info could be found be a violation? Example: Call or text 843-111-5555 for BAC information. 

  • To fully comply with litigation settlement, referrals to compensation or concessions will not be allowed. Generic comments such as "Call or text 843-111-5555 for additional info." would be allowed in Agent Remarks.

• Can I list an offer of compensation on my personal or brokerage website? 
  • Yes, you can use your website to display compensation for your brokerage’s listings only. You will need the property owner's permission to put an offer of compensation on the web. 

• Is the following statement allowed in agent to agent remarks: “Please call/contact the listing agent for all of the details before a showing”? 
  • Yes. This statement does not mention compensation. 

• What are the best practices for sharing offers of compensation to multiple people via one email? 
  • It is best practice to blind copy (bcc) all recipients on any email containing offers of compensation. Also, the contact list of emails used must be organically obtained; it cannot be obtained through the association, the MLS, or any method related to the association or MLS. If asked in a legal setting, you must be able to prove how you obtained the list of emails organically. 

• What is the best practice for sharing offers of compensation on social media? 
  • It is best practice to remove the “Share” button and disable the ability of others to 'like' or comment on any social media post containing or mentioning offers of compensation. 
  • Compensation should not be shared in social media groups, even if the group is 'private'. If someone in a social media group you belong to mentions compensation, you must take the following steps to avoid liability: (1) Announce in the group that you are leaving the group because of the mention of compensation; (2) Take a screenshot of said mention of compensation; (3) Leave the group; (4) Give your Broker-in-Charge a copy of steps 1 & 2 so that they can warn others. 

• What is the new process for open houses? 
  • Open houses are still open! However, there are important things to keep in mind. 
    • The host of an open house should be the listing agent or a licensed agent of the brokerage who has the listing. The host of an open house (whether the listing agent or a fellow agent of the brokerage), is the representative of the seller. When unrepresented members of the public (potential buyers) arrive to view a listing, they are not a client of the host and therefore do not have to sign an agreement. The host’s client is the seller and therefore the host can show the house on behalf of the seller. The unrepresented member of the public can also walk through the house alone.
    • Are LIVE virtual tours by REALTORS® allowed?
      • Under the settlement, this activity would not be allowed as it would require a written, signed buyer agreement.
    • Can an open house or showing be recorded and disseminated at a later time?
      • Unless the REALTOR® is communicating with a buyer LIVE or having LIVE interactions with a buyer, no written and signed agreement is required.

• What stops an agent from collecting compensation from both a seller and a buyer?
  • Both the buyer and seller will see the details of compensation via the settlement agreement. The parties and their counsel will have the opportunity to review the compensation collected by both agents prior to closing. 

• Will there no longer be any customers, only clients? 
  • Anyone is a customer if you have substantive contact with them. If a member of the public has not signed a buyer agency agreement with you, they are not your client. 

• Does a member of the public have to sign a buyer agency agreement before visiting the first home I show them? 

  • A buyer agency agreement can be used but is not required before the first showing. However, a WRITTEN AGREEMENT is required.

• What are the consequences of not following the NAR settlement-related MLS changes? 

  • The consequences for noncompliance can be found here. 

• Will current listings be automatically updated in the MLS?

  • Yes, compensation fields were removed from all listings in Paragon on August 12, 2024. The withdrawal and relisting of properties IS NOT required. Listings in the MLS on August 12th can remain so long as there is no mention of compensation.

• Do we need a new listing agreement on current listings?

  • Members are encouraged to update agreements related to current listings prior to August 12, 2024, to be in compliance with the NAR-settlement. For listing and buyer agreements signed BEFORE August 12th that do not already include the following disclosure, the following is a sample compensation disclosure statement that can be used to address the disclosure requirement pursuant to the NAR settlement. 

    • "This Compensation Disclosure Statement dated [insert date] is in reference to your [listing/buyer] agreement entered into on [DATE]. As a result of the National Association of REALTORS proposed settlement agreement and related practice changes, the following disclosure is required in all [listing/buyer] agreements: NOTICE TO BUYER: A buyer agent's compensation is fully negotiable and is not set by law. OR NOTICE TO SELLER: A seller agent's compensation is fully negotiable and is not set by law." 

• If my personal or brokerage website has an IDX feed from CCMLS’s platform, what compensation details can I post on said website?
  • Compensation details related to your listings or your brokerage’s listings can be included on your website, even if it includes an IDX feed. However, the NAR settlement-agreement prohibits including offers of compensation from listings that do not belong to your brokerage. You will need the property owner's permission to put an offer of compensation on the web. 

• How can we know if a buyer tour agreement or buyer agency agreement is properly prepared and in compliance with the NAR-settlement agreement? 
  • It is best practice to only use approved SCR forms. If you’re inclined to use an unapproved form, have it reviewed by counsel. 

• What parties can ask to see a copy of a signed Buyer Agency Agreement? 
  • Any party can ask to see an agent’s agency agreement but no agent is obligated to provide it. Best practice is to negotiate offers of compensation using SCR Form 120. 

• What if the amount of compensation listed on the form does not match the amount of money available or received? 
  • If the amount of compensation offered by the listing broker exceeds the amount which the buyer agent is to receive under the buyer agency agreement, the buyer agent is NOT entitled to the excess compensation unless buyer consents in writing. 

What are the settlement-mandated MLS changes?

• No Offers of Compensation in the MLS

  The MLS is prohibited from including a listing broker's offer of buyer's agent compensation in the database. The compensation fields were removed on August 12th, 2024. No other field may be used to relay offers of compensation. While this change directly affects offers of compensation in the MLS, should a seller instruct their listing brokerage to offer compensation to a buyers agent, this can occur outside of the MLS. There will be policy enforcement procedures should the MLS discover offers of compensation in the MLS in any way as this is forbidden by the settlement. Please do not attempt to manipulate listings to insinuate what an offer of compensation may be. 

• Offers of Compensation on Other MLS-Connected Platforms

  While offers of compensation are allowed to be made outside of the MLS, a webpage with an IDX feed can only display compensation for the listings of the firm associated with that webpage. In addition, any MLS data license/feed recipients attempting to establish a platform (webpage) to collect offers of compensation between multiple brokers is strictly prohibited. If these actions do occur, CCMLS will terminate the associated data feed. 

• Written Buyer Agreements

  ALL MLS participants and subscribers must have a written agreement before touring a listing with a buyer. The written agreement must describe the broker's compensation amount, which must be objectively ascertainable and not open-ended, and the broker may not receive compensation from any source that exceeds the amount in the agreement without renegotiating the agreement.

• Participant Disclosure Regarding Offers

  ALL MLS participants and subscribers must disclose to sellers and obtain seller approval for any payment or offer the listing broker or seller makes to another broker, agent, or representative (i.e., attorney) representing a buyer (if any). 

• Participant Disclosure Regarding Commissions

  ALL MLS participants and subscribers must disclose to sellers and buyers that commissions are not set by law and are fully negotiable in listing agreements (unless it's a government specified form). 

• No Filtering

  The MLS may not facilitate filtering out listings based on the existence or level of compensation offered to the broker assisting the buyer. 

• No Advertising Services as FREE

  ALL MLS participants and subscribers are prohibited from representing services for which they are later paid, as free. 

You can review the detailed NAR Summary on MLS Policy Changes here. 

How can you adapt?

Confirm Your Buyer Agreement Practices

Ensure Buyer Agreements are fully understood and signed prior to touring a home; this includes virtually-guided tours. 

Under the settlement, the required written buyer agreement must describe the broker's compensation, the amount must be objectively ascertainable and not open-ended, the broker may not receive compensation from any source that exceeds the amount listed in the agreement, and must include a clear statement that broker fees and commissions are not set by law and are fully negotiable. 

These agreements can help consumers understand exactly what services and value will be provided, and for how much.

For other things to consider when drafting buyer agreements, click here.

Strengthen Your Practices

This is an opportunity to own your value and stay competitive in the market. Consumers are paying close attention to agent value - don't miss this moment to communicate yours. Continue to uphold the highest standards of professional conduct and ethical behavior in all of your transactions. Ensure that you continue to clearly and transparently explain all costs, including commissions and fees, to your clients. It's crucial that clients are fully aware and understand the financial aspects of their transactions.

Stay in Lockstep with Your Broker

You're never alone. There are decisions your broker must make to ensure these business practice changes are implemented. Different brokerages may have different policies and trainings as it relates to the firm's practice changes so it is critical that you follow the guidance of your Broker-in-Charge.

We encourage you to adopt a mindset geared towards embracing these changes and focusing on what's ahead. Your role is to prepare your clients for the change by communicating what's coming and how the change might impact their transactions. While there are steps you must take on your own, you're never on your own. 

Click on the options below for more information.