MLS

NCRMLS, along with hundreds of other NAR-affiliated MLSs, has entered into a settlement agreement to resolve several lawsuits around the country relating to offers of compensation from listing brokers to buyers’ brokers. There are two key practice changes: First, listing brokers will no longer be allowed to communicate offers of compensation (whether from the listing broker or from the seller) to buyers’ brokers through MLS, though they are free to make such offers via other means. Second, a broker must enter a written agreement with any prospective buyer before showing any MLS listing to that buyer.

More details can be found on NARs website.

On Thursday August 1st, the NCRMLS removed all compensation fields and rules associated with submitting an offer of compensation via the MLS. Additionally, NCRMLS compensation data has been removed from all MLS provided services including Listing Input forms and screens, data feeds, and MLS reports and search forms. New MLS Rules went into effect on August 1st.  

Download MLS Rules and Regulations.

More information can be found on NCRMLS website. 

NCRMLS will not support any data use, effort, or attempt to create any platform for brokers to exchange offers of compensation (i.e., where offers of compensation are extended to multiple buyer brokers). Participants and MLS vendors are not permitted to use MLS data feeds to establish any such compensation platform. Violation of these rules will result in revocation of data access. Participants may include compensation information on their own listings, so long as no other brokers’ offers of compensation are displayed.    

READ MORE.

NCRMLS will not collect buyer agreements. However, NCRMLS may ask for agreements at any time. NCRMLS does not provide or require a specific agreement form.  

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.“ 

Offers of compensation may be pursued off-MLS. Brokers and sellers may negotiate the compensation paid to the buyer representative on a case-by-case basis. The negotiated cooperative compensation can be reflected in the transaction documents (e.g., agency agreement, compensation agreement, etc.). Broker compensation is negotiable and should always be negotiated between agents and the consumers they represent. 

No. Any offer of compensation (whether the compensation would be from the listing broker or the seller) communicated anywhere in the MLS is prohibited, including any field, photo, or attachment. Bonuses, seller concessions are permitted. BUT ensure that the amount does NOT include any commission compensation.

If commission compensation is “bundled” into a bonus or concession it is subject to a $1000 fine and suspension of services. 

Changes to a number of residential, commercial, auction, and property management forms in the NC REALTORS® forms library were effective July 1. These forms have been reviewed by legal counsel to be in compliance with NC law and the practice changes required under the recent NAR Settlement Agreement. A list of the forms that changed and a detailed summary of those changes are now available via the links below. You can find all updated forms on ncrealtors.org in the Forms Library.  

Summary of Residential Forms Changes 

Summary of Auction Forms Changes 

Summary of Property Management Forms Changes 

Summary of Commercial Forms Changes 

Questions should be directed to the NC Realtors Legal Hotline. 336-294-1415

No. Compensation may not be posted anywhere on the MLS. 

Am I ok to add compensation amounts in the Open House comments fields to let agents know about the % they can expect?  

No, you cannot put compensation anywhere on the MLS. 

Yes. The MLS is required to remove that data so that it is not accessible.  

Aren’t Compensation, Concessions, and Incentives all the same?

So if we can put incentives in the agent's remarks, why can’t we put compensation in there too?  

There is a difference between compensation and concessions. Seller Concessions are specifically allowed by the Proposed Settlement if specified in dollars on a case-by-case basis. 

You may communicate Seller Concessions for On Market Properties in Agent Remarks.  Do not use percentages, use a dollar amount. 

Will the new rule to have a written buyer agency agreement before a showing prevent “trying out an agent” for buyers? Some buyers want to see a few properties before they will commit to an exclusive agency. 

No, this does not prevent that at all. Consider using the Non Exclusive Buyer’s Agreement for short term situations like this. It can even be property specific. 

Yes, you may advertise compensation on social media accounts provided that the link is not coming directly from the MLS. You may do so for virtual tours as well as long as it is not the same virtual tour that is on the MLS. 

NCRMLS has to prove to regulators when audited that the company has strict rules and that we enforce them. Automated processes and spot checks will be used to select Showings for review by NCRMLS’s existing Data Integrity staff.  

Can we have the offer of compensation on our websites and the new compensation agreement on our personal/company websites, or social media accounts? 

Yes provided there are no offers of compensation from any other firm on the same site. 

Can you announce the actual compensation in flyers in the home, or just that you are offering compensation to the buyer’s agent? 

Yes, this is permissible. It's like putting the commission on your website. If it is on the Listing Detail Page, not searchable, and is one click off of the Listing Detail Page, you should be safe. 

Yes, in Agent Remarks, and it should be a dollar amount and not a percentage, and should not be described as compensation or commission.  

Contact the Listing Broker, or look at their website. They are allowed to post any On Market Seller Concessions on their site, with some restrictions.