On March 15, 2024, the National Association of Realtors® (NAR) entered into a settlement agreement with plaintiffs that would end litigation of claims brought on behalf of home sellers related to broker commissions across the United States.  The settlement now has preliminary approval, a strong indicator of final approval scheduled for November 26, 2024. The 7-year agreement would release NAR, over one million NAR members, all state/territorial and local Realtor® associations, all association-owned MLSs, and all brokerages with an NAR member as principal whose residential transaction volume in 2022 was $2 billion or below from liability for the types of claims brought in many national cases on behalf of home sellers related to broker commissions.

You can view NAR’s extensive resources on their Facts for Realtors® webpage.

You can also:
Click here to go straight to their extensive FAQs 

OR

WATCH their Window to the Law series of Settlement Fact Videos here.   

COMPENSATION CAN NOT BE SHARED ON THE MLS

This includes:

• Co-op Fees
• Variable Commission
• Seller Paid Closing Costs

Compensation Fields will be removed from the MLS on August 5, 2024.

• Written Buyer Agreements are required of all REALTORS® prior to showing a home to a buyer(s).
• All new Forms will be available on August 5^th through our MLS Intranet document repository (link to our Rules Roadmap page)

No, MLSs will continue to have local discretion on seller concessions. This includes determining what local rules to have about seller concessions, except under the settlement an MLS must ensure that the seller concessions are not limited to or conditioned upon the retention of or payment to a cooperating broker, buyer broker, or other buyer representative. MLSSAZ has determined that Pre-sale Seller Concessions related strictly to repairs, flooring replacement, escrow and Title fees, rate buy-downs and the like will remain in place and and Seller Concessions will continue to be a required field for all CLOSED listings. Any mention or inclusion of compensation is a violation and is subject to a $500 fine.

YES

1. Attend upcoming training opportunities, View the calendar for classes.
2. Review the Changes to the MLS Platform and corresponding fines.
3. Confirm your Buyer Broker Agreement Practices.
4. Review other Important Reminders, including:
   Not advertising your services as free.
   Participant disclosure regarding commissions.
   Off MLS offers permitted.

No. The MLS will not be tracking any compensation, commission, or co-op fees.

No. The proposed settlement does not permit for offers of compensation sharing in any field in the MLS. There is now a $500 fine with a grace period until August 17th. During this period, a warning and educational information will be provided. Any subsequent violations will be a minimum of $500 fine.

The Settlement prohibits MLSSAZ from sending any listing data to websites, portals, etc. that include offers of compensation from multiple brokers to buyer brokers or other buyer representatives. After the grace period ending August 17th, there will be a $500 fine and termination of that participants access to any MLSSAZ data and data feeds.

No. The proposed settlement does not permit for offers of compensation sharing in any field in the MLS. There is now a $500 fine with a grace period until August 17th. During this period, a warning and educational information will be provided. Any subsequent violations will be a minimum of $500 fine.

Yes. Conversations held outside of the MLS can include offers of compensation between the buy and sell side and as permitted by each brokerage.

Email: info@mlssaz.com

Due to the liability impact for MLSSAZ and the overall association, it is vital to emphasize the importance of compliance with the new compensation structure and all other updates. The first time an agent is fined for this type of violation, a warning is issued to their broker.

Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. The types of compensation available for buyer brokers would continue to take multiple forms, including but not limited to:

• Fixed fee commission paid directly by consumers
• Concession from the seller
• Portion of the listing broker’s compensation
• Retainer Fees

.

If a Listing is currently under contract (Active Contingent, Pending) in the MLSSAZ before August 5, 2024, the Buyer Broker should be able to rely upon the offer of compensation even if closing occurs after August 5^th.

If a Listing is not currently under contract (Active) in the MLSSAZ before August 5, 2024, any offer of compensation will not be valid, and buyers and Buyers Brokers may wish to protect themselves in writing with the Listing Broker or Seller through a Compensation Agreement between Brokers or a Seller Compensation Addendum. These forms are available through Transaction Desk on the AAR website.