We are quickly approaching implementation of significant changes to offers of compensation. PWAR wants to ensure you have all the pertinent information you need to succeed, right at your finger tips.

The information below comes directly from NAR. For more comprehensive information on the NAR settlement, please visit www.facts.realtor.

5 Things You Need to Know About Offers of Compensation

1. Effective August 17, offers of cooperative compensation are prohibited on REALTOR® association-owned MLS’s.
This includes ALL listing types – residential, commercial, rentals – that appear on the MLS. Additionally, an agent may not post a link on the MLS directly to a listing on a broker’s site which includes an offer of compensation. Offers of compensation remain an option off the MLS.

2. Listing brokers may advertise an offer of cooperative compensation in any way off the MLS.

This may be done:

  • On the listing, on the broker’s own website.
  • Signs and sign riders
  • Flyers
  • Social media posts
  • Text, email, phone calls

LEARN MORE – Window to the Law: How to Communicate Offers of Compensation (1 min 10 sec video)

3. Listing brokers may advertise an offer of cooperative compensation in any way off the MLS.

Concessions can not be limited to or conditioned upon the retention of or payment to a cooperating broker. The buyer should state in the purchase offer how they want the concessions to be used, including compensating their broker. Buyers may ask the seller to pay their broker’s fee as a term of the purchase agreement.

LEARN MORE – Window to the Law: How Seller Concessions Work (53 sec video)

LEARN MORE – Window to the Law: Requesting Buyer Broker Compensation (54 sec video)

4. The Code of Ethics always applies to REALTORS®.

  • Article 1: Protect/Promote the Interests of Clients
  • Article 3: Ascertain Compensation
  • Article 12: Be Honest and Truthful in Communications

Mediation and arbitration of commission disputes still applies. Procuring cause disputes may still arise and be arbitrated.

5. Next Steps

  • Practice changes go into effect August 17, 2024.

  • A Class Action Notice will be sent out on or after August 17 to anyone who has sold a home that was listed on an MLS anywhere in the United States where a commission was paid to any brokerage in connection with the sale of the home.

  • The settlement is still subject to final court approval on November 24, 2024.

    LEARN MORE – Window to the Law: Understanding the Effective Date of Practice Changes (54 sec video)

If you have any questions, please email info@pwar.com, and we will get you answers. And keep an eye out for more to come.