Section 6: Broker Compensation
This article covers MLS Now Rules sections 6.1 through 6.6: 6.1, 6.2, 6.3, 6.4 Written Buyer Representation Agreements Required, 6.4.1, 6.4.2, 6.4.3, 6.4.4, 6.5 Prohibition on MLS Compensation Offers, 6.6 Seller-Paid Concessions.
6.1 MLS Now does not fix, control, recommend, suggest, or maintain commission rates or fees for services or the division of compensation between cooperating Participants or between Participants and non-participants.
6.2 Participants and Subscribers must not represent that their brokerage services are free or available at no cost unless no compensation will be received from any source for those services.
6.3 Listing Broker must disclose to prospective sellers that broker compensation is not set by law and is fully negotiable. This must be included in conspicuous language as part of any listing agreement. Listing Broker must conspicuously disclose in writing to sellers, and obtain seller's authority for, any payments or offer of payment that the Listing Broker or seller will make to another broker, agent or other representative acting for buyers. The disclosure must include the amount or rate of any such payment and be made in writing in advance of any payment or agreement to pay.
6.4 Written Buyer Representation Agreements Required
Unless inconsistent with governing law, a Participant working with a buyer must enter into a written agreement with the buyer before touring a home. The agreement must:
6.4.1 Disclose conspicuously the amount or rate of compensation or how it will be determined if the Participant will receive compensation from any source;
6.4.2 State compensation in an objectively ascertainable, non-open-ended manner;
6.4.3 Prohibit the Participant from receiving total compensation for brokerage services from any source exceeding the amount or rate agreed in the buyer agreement; and
6.4.4 Conspicuously state that broker fees and commissions are not set by law and are fully negotiable.
6.5 Prohibition on MLS Compensation Offers
MLS Now will not accept listings containing an offer of compensation in the MLS to other Participants or Subscribers, and MLS Now will not create or facilitate any non-MLS mechanism for Participants, Subscribers, or sellers to make offers of compensation to buyer brokers or other buyer representatives. The MLS may not be used to publish broker-to-broker, broker-to-agent, or blanket offers of cooperative compensation in any field, media, or upload. Participants may not disclose in the MLS the total commission charged to the seller or the listing broker's commission.
6.6 Seller-Paid Concessions
Entry of seller-paid concessions negotiated in an accepted offer (e.g., credits toward buyer closing costs, rate buydowns, repairs) is permitted in the designated concessions fields. After closing, Participants may report seller-paid concessions actually paid at settlement in the designated fields, consistent with these Rules.