Overview: RVAR and the MLS of Roanoke Valley worked together to implement the changes required by the national Settlement Agreement, that will resolve nationwide class action lawsuits over claims from home sellers related to buyer broker commissions. These changes were implemented on August 14, 2024.
No offers or disclosure of compensation to buyer brokers will be permitted in the MLS.
FlexMLS removed the following fields from ALL MLS listings (including Closed and Expired):
- Buyer Agent Authorization
- SubAgent Authorization
- Buyer Agent Compensation
- SubAgent Compensation
- Variable Rate Brokerage
The MLS Rules prohibit any reference to buyer broker compensation in listings in the following statuses: Active, Pending, Withdrawn and Coming Soon. Prohibited language is any term that indicates payment to a buyer broker. The prohibition applies to specific and general references.
The MLS eliminated the rule that previously required offers of compensation to buyer brokers to be “blanket, unconditional or unilateral”.
Permitted: Sellers and Listing Agents may continue to offer compensation to buyer brokers – just not via the MLS. Sellers may offer buyer concessions in the MLS (e.g., for buyer closing costs) provided such concessions are not limited to buyer broker compensation.
Enforcement: If you spot an MLS listing – in an Active, Pending, Withdrawn or Coming Soon status – with a reference to prohibited language, please use the Flex “Listing Check” system (a link appears in the upper right corner of every MLS listing) to send a notification to the listing agent and listing broker. Your notification is anonymous to the recipients.
MLS Staff receives a copy of all “Listing Check” notifications. MLS Staff will track the notice and ensure that the prohibited language is removed either by the listing agent or broker OR by MLS staff, within 24 hours or by 5 PM next business day.
MLS Brokers and Agents working with buyers must enter into a written agreement prior to the buyer touring any home.
A home is defined as “a residential property consisting of no less than one nor more than four residential dwelling units.”
The written buyer agreement must (1) specify and conspicuously disclose the amount or rate of compensation and (2) disclose that compensation is not set by law, the MLS or REALTOR® Association and is fully negotiable.
Buyer brokers may not receive compensation for services from any source that exceeds the amount or rate agreed to in the buyer agreement.
Enforcement: If the MLS has been informed that a buyer agreement was not signed by a buyer prior to touring a home with a buyer agent, the MLS will charge the agent a $100 fine. Also, if a buyer agent refuses or fails to provide a copy of a buyer agreement when requested by the MLS, the MLS will charge the agent a $100 fine. Buyer Agreement violations are subject to progressive fines as described in the MLS Rules.
Suggested Steps:
- Check with your Broker to determine firm policy regarding the Settlement Agreement changes.
- Visit NAR’s facts.realtor. (NAR regularly updates this site, which includes over 100 FAQs.)
Rev. 8/2024