NAR Settlement Resources

The application of the MLS Rule shown in Section 10.01 is applicable to all property categories. Offers of compensation include the offering of bonuses. Any language contained in the listing which would imply an offer of compensation to a buyer agent or tenant agent, or conditions or instructions related to the securing of compensation is strictly prohibited.

Offers of compensation to a buyer agent or /tenant agent made through the MLS or attempts or hints about the offer are strictly prohibited. Those restrictions apply to any part of the MLS listing including attached documents, photos, external web links, and any text fields available on the listing. Even comments such as “buyer agent friendly” or “REALTORS Welcome” are discouraged.

Any advertisement of offers of compensation made off the MLS are strictly the decision of the seller and listing broker. You will need to defer to your broker or attorney to make any decisions of this nature.

Warnings for violation of this policy were issued through September 15th. After September 15th, fines starting at $1,000 will be issued for violations of this policy.

A new field has been added to the listing input section of a listing and is displayed on the Agent Full Report. The field is titled, “Seller Concessions Y/N”. If answering yes to this field, listing agents may define the concessions to the buyer only in the Remarks. Per the terms of the settlement, the offer of Seller Concessions may not be conditioned on their use toward buyer agent compensation.

It is the responsibility of the buyer’s agent to procure the written buyer agreement. The written buyer agreement will contain confidential information that a buyer’s agent or buyer would not want to share with another party. While there is no restriction from asking for the form, we do not encourage it.

The broker for the buyer’s or tenant’s agent needs to determine if the brokerage will require written buyer or showing agreements for commercial or lease listings. Commercial and lease listings were not the subject of the NAR Settlement. However, ultimately, buyer’s/tenant’s brokers need to determine policies for their firm.

The buyer agreement needs to hold the same weight as the listing agreement. The buyer agreement spells out your obligations to your buyer and the buyer’s obligations to you. It also gives you directions once you start submitting offers on behalf of your client.

You would never put a listing into the MLS or market a listing without a listing agreement. The same should hold true of the buyer agreement. What would you do if a seller refused to sign a listing agreement?

Additionally, regardless of their refusal, you may be fined $1,000 if it is found you did not have a written buyer agreement when you showed a property.