The following questions will help homebuyers and home sellers better understand the recent practice changes in residential real estate and what the changes mean for them. While these are intended to provide an overview, real estate transactions can take many forms. Additional detailed information can be found in subsequent FAQ sections.
7. How will offers of compensation be communicated if agents can’t use MLSs? Doesn’t this just make agent compensation less transparent?
17. Can buyers and buyer agents rely on an offer of compensation that was on an MLS prior to August 17?
25. Will I be covered by the settlement if I became a member shortly before the date of class notice? What if I dropped my membership shortly before the date of class notice?
26. Brokerages with an NAR member as principal whose residential transaction volume in 2022 was $2+ billion are not covered by the release. What about members affiliated with those brokerages?
27. How does the settlement affect corporate brokerages and any brokerages that are carved out from the release?
28. Why does the release of liability carve out some co-defendants and some of their affiliated agents?
29. How does the settlement affect state/territorial and local associations?30. Are institutes, societies, and councils affiliated with NAR included in the release in the settlement agreement?
31. Does the fact that the release does not cover everybody mean that NAR has left large corporate brokerages and affiliated agents to fend for themselves?
32. What is required for brokerages with residential transaction volume in 2022 that exceeded $2 billion to obtain releases?
33. What is required for non-REALTOR® MLSs to obtain releases? 34. What is required for REALTOR® MLSs to obtain releases? 35. What happens if a non-REALTOR® MLS didn’t opt-in to the proposed settlement agreement?42. The opt-in agreements in the appendices indicate that MLSs that opt in to the NAR settlement have until September 16, 2024, to implement changes. Why did NAR communicate August 17, 2024?
43. Why is NAR putting the practice changes in place prior to receiving final approval?44. What should listing brokers advise their clients about the prohibition of offers of compensation on an MLS?
45. Won't prohibiting offers of compensation on an MLS raise fair housing issues? 46. Does this prohibition affect the compensation amount paid to the listing broker? 47. Are non-REALTOR® MLSs affected by the prohibition of publishing compensation offers on an MLS?48. If a member is a Participant or Subscriber of an MLS that hasn’t opted-in to the proposed settlement agreement and allows offers of compensation on the MLS, can the member make an offer of compensation on that MLS?
49. If the seller or the listing broker offers a bonus or financial incentive in addition to the offer of broker compensation, can the buyer broker accept the extra compensation?
50. Does Standard of Practice 16-16 prohibit the negotiation of buyer broker compensation in a buyer’s purchase offer?
51. What is NAR’s position on making offers of compensation off-MLS? 52. Can an MLS have a Yes/No Compensation Field?53. Can a listing broker communicate offers of compensation on a broker website which has an IDX or VOW feed?
54. Can an MLS Participant use or share their MLS data or data feeds to establish or maintain a platform for offers of compensation from multiple brokers and buyer brokers or other buyer representatives?
55. Can an MLS allow MLS listings to link to a listing broker’s contact information (e.g., telephone number, broker’s preferred communication method)?
56. Can disputes about an offer of compensation still be arbitrated or mediated?57. Does the prohibition of offers of compensation on the MLS mean that procuring cause will no longer be relevant to arbitration panels determining arbitration awards pursuant to Article 17 of the Code of Ethics or local MLS rules?
58. How does the REALTOR® Code of Ethics apply to offers of compensation off MLSs?59. What additional provisions must be included in written listing agreements because of the practice changes?
60. Must a REALTOR® or MLS Participant acting for a seller obtain prior approval from the seller before an offer of compensation is made or compensation is paid to another broker, agent, or other representative acting for a buyer?
61. Should active listing or buyer agreements—meaning there is no accepted offer—entered into before the MLS policy changes went into effect on August 17, 2024, be amended to include a conspicuous disclosure that compensation is not set by law and is fully negotiable?
62. Should active listing agreements entered into before the MLS policy changes went into effect on August 17, 2024, be amended to address the settlement agreement’s prohibition on offers of compensation being communicated on an MLS?
63. Which pre-closing disclosure forms must include a conspicuous disclosures about the negotiability of commissions?