Ahead of the NAR settlement (opens in new window) implementation deadline, we want to provide a brief update on how the forthcoming mandated policy changes will affect our REALTOR® members and MLS Participants/Subscribers.
Effective midnight on Thursday, August 15, 2024, compensation fields will no longer be available at any level (list, active, sold) for any property type (residential, lease, commercial) within ROAM MLS. The following input fields will no longer be available:
- Matrix: All listing types
- Commission to Cooperating Member Participant
- Commission TCMP Type
- Matrix: Lease listing type
- How Commission Paid
- When Commission Paid
- Paragon: All listing types
- Commission Type
- Commission Amount
- Concessions fields will not change. This field must not include any compensation information. The MLS, or any field contained therein, cannot be used to communicate compensation.
In addition to the changes regarding the communication of compensation, NAR Policy Statement 8.13 (see “Summary of MLS Policy Changes, page 10;” opens in new window) requires all agents working with a buyer will be required to have a written Buyer Representation Agreement in place prior to touring a home.
All written Buyer Representation Agreements must include, at a minimum, the following:
- a specific and conspicuous disclosure of the amount or rate of compensation the Participant will receive or how this amount will be determined, to the extent that the Participant will receive compensation from any source.
- the amount of compensation in a manner that is objectively ascertainable and not open-ended.
- a term that prohibits the Participant from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and
- a conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.
Failure to have an executed, compliant buyer representation agreement prior to touring a residential for sale property will result in the imposition of the following fines:
- 1st Offense: $1,000 Fine
- 2nd Offense: $2,500 Fine
- 3rd Offense: Immediate 90-day suspension of MLS Services for MLS Participant/Subscriber.
In the event a fine is not paid within 20 days of the issue date, MLS access will be suspended immediately.
Violations may be reported as any other MLS violation, through the link on the listing in the MLS.
State legislation (HB No. 366) (opens in new window) is currently pending to require the use of Buyer Representation Agreements when practicing real estate in Louisiana. Upon the effective date of state law, ROAM shareholders will report the offense to LREC.
Further resources (these links open in new windows):
- Become an Accredited Buyer’s Representative – FREE to members through 2024
- Louisiana REALTORS® Real Estate Negotiating Expert Certification Course
- Facts.Realtor
- Louisiana REALTORS Legal Updates Page
- NOMAR Settlement Landing Page
- NAR’s Written Buyer Agreements 101
- VIDEO SERIES – Window to the Law: Settlement Facts
Stay tuned for more information soon and, as always, thank you for being a valued member and subscriber.
