LEGAL?
Absolutely! Offers of compensation to buyers' agents from another agent or home seller are prohibited on MLSs. However, buyers and sellers can still explore compensation options outside of the MLS through discussions and negotiations with real estate professionals. Members of Compensation Quest (CQ) can share their listing addresses along with any commissions or bonuses they might have—just as long as they don't post this information on their MLS. CQ has no affiliation with NAR or any MLS, CQ members are not mandated to post their listings or commission details on our site. For all the brokers and agents who have concerns, we've broken down the details in simple to understand language of the settlement below. Super-Simple? Agents noir Sellers can post compensations to buyer's agents on any MLS!
The language below applies to NAR and MLSs to implement and enforce to all MLS members. As an MLS member you must obey the new rules, one of the new rules, (compensation in any form can no longer be posted on MLSs by members for members to see) is self-explanatory and why we are here.
The Agreement Explained in Simpler Terms
Item H, Practice: Paragraph 58: of the settlement agreement stated in simple language.
Language Simplified Key Words & Phrases.
As soon as practicable, and in no event later than the date of Class notice (as provided in paragraph 30 of this settlement agreement will implement the following practice changes.)
NAR and MLSs Agree to
- Eliminate and prohibit NAR , REALTOR, MLSs or Member Boards that Listing Brokers or Sellers must make offers of compensation to Buyer’s Brokers or Buyer’s Representatives. IN SHORT, THE AUTHORITY CAN NO LONGER MANDATE LISTING AGENTS OFFERS OF COMPENSATION TO BUYER’S AGENTS ON MLS’s. PRIOR TO THIS LAWSUIT, LISTING AGENTS WERE MANDATED TO LIST COMPENSATIONS TO BUYER’S AGENTS ON MLSs.
- Prohibit REALTOR, MLS participants, subscribers, other Real Estate Brokers, other real estate agents, and their sellers (a) making an offer of compensation on the MLS to buyer’s brokers or buyer’s representatives. (b) or disclosing any broker compensation on MLSs.
- Require all MLSs to eliminate all compensation fields on MLS and MLS listing entry forms.
- Eliminate and prohibit the requirement to list compensations on MLSs.
- NAR and MLSs agree not to create, facilitate, or support any non-MLS mechanism (including by providing listing information to an internet aggregators’ website for such purpose (definition: An internet aggregator is a person or organization that collects information from other websites (Compensation Quest (CQ) members post their listing addresses and compensation directly to the CQ website with their seller’s signed consent.) and puts it in one place. This information can be in the form of news stories, website updates, or other data. Aggregators can be websites or software applications). ) for listing brokers or sellers to make offers of compensation to buyer brokers or other buyer representatives (either directly or through buyers), however, this provision is not violated by (a) a REALTOR® MLS providing data or data feeds (The information CQ members provide to the CQ website is not data from MLSs or an MLS data feed. The data is provided directly by a licensed real estate listing agent who is also a CQ member who has the home sellers signed consent to do so before, on the Day of or after the property details get posted on an MLS) to a REALTOR®, REALTOR® MLS Participant, or third party unless the REALTOR® MLS knows those data or data feeds are being used directly or indirectly to establish or maintain a platform for offers of compensation from multiple brokers (i.e., the REALTOR® MLS cannot intentionally circumvent this requirement); or (b) a REALTOR® or REALTOR® MLS Participant displaying both (1) data or data feeds from a REALTOR® MLS and (2) (note a continued sentence) offers of compensation to buyer brokers or other buyer representatives but only on listings from their own brokerage;
For a limited time, to help us build our database for you, your first year of membership is free, no cc required, and no strings attached. If you decide to stay on after the 1st year, our monthly fee will only be $4.99.