Welcome our series, “MLS Updates,” where we provide you with the latest news and changes from Multiple Listing Services (MLS) across the nation. As a website development and online marketing firm focused on empowering real estate professionals, we understand the importance of staying informed about industry developments that can impact your business. This series will keep you updated on essential changes and trends within the real estate industry, ensuring you have the information you need to navigate the evolving landscape.
MLS Now Rules Update: August 12, 2024
Important Update: Effective August 12, 2024, MLS Now will implement new mandates from the NAR MLS Policy changes. These changes require all MLS Now members, whether REALTORS® or non-REALTORS®, to have a written Buyer Representative Agreement before touring a property. This new policy ensures that all parties involved are clear on the terms and compensation related to buyer representation.
The MLS Now forms libraries will soon be updated with a template option for the written Buyer Representative Agreement. However, it’s essential to check with your broker, as some may develop their own forms or use versions provided by local associations or state organizations. Ohio REALTORS® offers several versions for brokers to select from. You can view these options in the Broker’s Legal Toolkit.
Key Requirements of the New NAR Policy Statement 8.13:
1.Written Buyer Agreements Required:
•Disclosure of Compensation: The agreement must specifically and conspicuously disclose the amount or rate of compensation the participant will receive, or how this will be determined. It should be clear and not open-ended.
•Objective Compensation Terms: The agreement must outline compensation terms that are objectively ascertainable.
•Compensation Limitations: The agreement must prohibit receiving compensation for brokerage services from any source beyond the agreed amount or rate.
•Negotiable Fees Statement: A clear statement must be included, asserting that broker fees and commissions are not set by law and are fully negotiable.
Action Steps:
•Brokers:
Review and select the appropriate buyer agreement for your agents. Ensure it meets all NAR requirements.
•Agents:
Begin using the selected buyer agreement by August 12, 2024. Note that the Ohio “Buyer Broker Compensation Agreement” is not the required form for touring a property. It is instead related to the purchase agreement’s buyer brokerage compensation details.
•Documentation:
Maintain records of all signed agreements. MLS Now conducts random audits to ensure compliance with these requirements.
•Guidelines:
Follow the specific rules and guidelines for each MLS you operate within, as they may have different effective dates.
Contact Information:
For any questions or further clarification, contact MLS Now at Help@MLSNow.com or call 216-485-4100 x 1480.
Stay tuned for more updates as we continue to provide you with the most relevant and timely information from MLSes nationwide, ensuring you are well-equipped to succeed in today’s competitive real estate market.