Key Rule Changes on Compensation take effect August 1st

To comply with the NAR Settlement agreement, several important rule changes will go into effect on Thursday, August 1st.

Key Rule Changes
  • Compensation can no longer be communicated in any way in the MLS  (redline pages 27-29)
  • Use of MLS data feeds to establish a compensation platform among multiple brokers is prohibited (redline page 28)
  • All Brokers working with a buyer must enter into a written agreement with the buyer prior to touring a home (redline page 29)
Download Rules and Regulations
To comply with the new Rules, several FlexMLS Fields will be removed:
  • Unconditional Comp
  • Variable Rate Comm
  • Comp Comments
FlexMLS Field that will remain:
  • The  Seller Assistance Offered Yes/No field in the MLS will remain in the event the seller is willing to assist in closing costs.
PLEASE NOTE:  SWMLS will not be adding "Concession" fields to the MLS for several reasons:
  1. SWMLS believes that adding a concession field could be confusing and ultimately used to list compensation which could leave SWMLS and members open to liability and potential scrutiny by the DOJ.
  2. It will not be necessary once brokers work through a few transactions. It is preferable to list compensation and concession options in the Purchase Agreement and let the seller decide, rather than create confusion over conditional concessions.

For example:  "If I am a seller, I have no desire to advertise the maximum I’m willing to pay. If I advertise that I’m willing to pay $20k and yet, a buyer has agreed to accept $10k, I conceivably could overpay $10k.

Historical Data in the MLS
  • Historical Compensation Data will still be visible on Listings closed before August 1st.
  • All compensation data on Active or Pending Listings after August 1st will be purged. 

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