As of August 17, 2024, the MLS will no longer display compensation offers, including those made to buyer/tenant agents. The removal of compensation offers includes both commissions and concessions. Many MLSs will offer special fields specifically for concessions, but you cannot reference a commission as part of concessions (more info below).
Review your listing to make sure none of the following wording (or similar) appears, as it will be an MLS rule violation and the MLS will issue a fine (passed to you):
- Referral fee possible
- Commission paid for a 12-month lease
- Concessions available
- Broker Co-Broke is Paid
- We always pay the other side...
- We will pay a co-broke
- Any and all mentions of "commission(s)" or "compensation"
- Buyer/tenant agents welcome
- Agent bonus
- Compensation extended
I have NOT accepted an offer as of the day my MLS stopped displaying commissions. Am I under any obligation to pay the commission offer in our listing agreement?
- No - see the question further down if you received an offer prior to the removal of commissions. As of August 17, 2024, for any new offer you receive it will no longer be governed by our listing agreement section on Counterparty Broker Compensation. You can still choose to pay a commission to a buyer/tenant agent, but that is handled through the contract paperwork and not the MLS.
I have accepted an offer before the MLS stopped displaying commissions. Do I need to pay the buyer/tenant agent commission?
- Yes.
What if I want to offer compensation or a bonus to buyer agents on the MLS?
- Offers of compensation, bonuses, mentions of commission, etc to buyer/tenant agents are strictly prohibited on the MLS after the date noted below. The MLS will issue a fine, this fine is passed to you.
Can I state in the Property Description of Private Remarks that there are concessions available?
- No, you cannot note any concession offers in any fields on the MLS, except if the MLS has added special fields specifically for concessions. If the MLS has added special fields for concessions, you CANNOT state that agent commissions are a concession available (or any similar language to indicate that there is compensation available to agents).
Can I offer agent compensation in the concession fields?
- No, the MLS will issue a fine for this. The cost of the fine is passed to you.
Can I make a note in the Private Remarks to Agents that buyer agents can contact me about a commission?
- No. Avoid any discussion of commission, bonus, or compensation of any sort in the MLS. The MLS will issue a fine if this is noted in the MLS, which is passed to you.
Can I upload a document that discusses bonuses?
- No. Avoid any discussion of commission or bonus in the MLS. The MLS will issue a fine, which is passed to you, if this is noted in the MLS.
Can I still pay a commission to an agent?
- Yes, but you cannot make any mention or indication of that in the MLS.
Is this for both buyer and tenant agents?
- Yes.
How are buyer agents now paid?
The way it works now is that buyers must sign a compensation agreement with their agent before viewing any homes. For example, the compensation agreement often states that the buyer will pay their agent a commission (e.g. 3%) for helping them purchase a home. The compensation agreement also states that the buyer agent will request in any offer that the seller pay the commission instead of the buyer.
When an offer is then submitted to a seller, it includes the request the seller pay a commission to the buyer's agent (e.g. 3%). The seller can decide if they want to accept, counter, or decline the offer. If the seller agrees to pay part of the commission (e.g. 2%) it is then up to the buyer to decide if they want to pay the difference (e.g. 1%) or not. If the buyer decides to pay the difference, then there is a binding contract, otherwise there is no contract.
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2 comments
It's confusing 😕,who gets pd whenever you sell your u
Hi Dan, the way it works now is that buyers must sign a compensation agreement with their agent before viewing any homes. For example, the compensation agreement often states that the buyer will pay their agent a commission (e.g. 3%) for helping them purchase a home. The compensation agreement also states that the buyer agent will request in any offer that the seller pay the commission instead of the buyer.
When an offer is then submitted to a seller, it includes the request the seller pay a commission to the buyer's agent (e.g. 3%). The seller can decide if they want to accept, counter, or decline the offer. If the seller agrees to pay part of the commission (e.g. 2%) it is then up to the buyer to decide if they want to pay the difference (e.g. 1%) or not. If the buyer decides to pay the difference, then there is a binding contract, otherwise there is no contract.
I'll add this to the article. Please let me know if you have any questions.Â
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