The NAR Settlement has introduced critical changes to how cooperating compensation and written buyer agreements are handled within the MLS. These adjustments are designed to enhance transparency, reduce potential conflicts of interest, and protect consumers by prohibiting the direct communication of cooperating compensation within the MLS. Additionally, written buyer agreements are required for Residential, Multi-Family (1-4 units) and Rental listings to clarify the relationship between buyers and their agents. These updates are essential for maintaining the integrity of real estate practices and ensuring that all parties are fully informed and fairly represented.


TABLE OF CONTENTS

High Level Elements of the NAR Settlement Agreement


1. NAR will pay $418 million over the next four years.

2. Offers of cooperative compensation from a listing broker will no longer be included in the MLS.

3. Agents working with buyers must execute written agreements with buyers that specify the compensation the agent will receive before showing any property.

4. Listing brokers/agents and sellers can negotiate offers of cooperative compensation with buyers and their brokers/agents outside of the MLS, but that cooperative compensation cannot exceed the amount specified in the applicable buyer agreement.


The Settlement Agreement also includes Appendix B, which REALTOR® owned MLSs can execute and file at no cost to be classified as a "Stipulating MLS" or "Released Party." As a REALTOR® owned MLS, filing of Appendix B is applicable to PrimeMLS. The PrimeMLS Board of Directors agreed to move forward with filing Appendix B, and on May 16, 2024, PrimeMLS submitted its executed Appendix B. Filing Appendix B ensures PrimeMLS and its members benefit from the protections afforded under the Settlement Agreement. Additionally, it requires PrimeMLS to implement NAR's practice changes, noted above, by August 17, 2024.


In the PrimeMLS world, cooperating compensation is now treated as "kryptonite" - a topic that is strictly off-limits. Any mention or implication of compensation in MLS listings, remarks, or tools (such as ShowingTime and Supra) is strictly prohibited. All discussions regarding cooperating compensation must take place outside of the MLS environment. This rule is enforced to ensure transparency, prevent misuse, and align with the NAR Settlement regulations. Violations of this rule can lead to enforcement actions, including penalties.

PrimeMLS Adoption and Fine Schedule


PrimeMLS enacted these required changes on July 15, 2024. Accordingly, all cooperating compensation fields and data have been removed from the MLS compilation.  

  • Per Section C.2 of the PrimeMLS Rules and Regulations, Participants, Subscribers, or their sellers may not make offers of compensation to buyer brokers and other buyer representatives in the MLS.  

  • Per Section 1.2.D - Public Field Restriction, there shall be no reference to cooperative compensation in any public or non-public field, including photographs, attachments, and virtual tours. This also includes through showing services and Supra. 

Also, while concessions can be included in the Public Remarks, there can be no reference to a dollar amount or percentage as this could be construed to include cooperative compensation. Agents will need to contact the list agent outside of the MLS to obtain the details of any concession offering.


The fines for references cooperating compensation in the MLS are as follows:

  • 1st Offense: $250.00 fine 

  • 2nd Offense: $750 fine

  • 3rd Offense (and all subsequent offenses within a 12 month period): $1500 fine


Also as part of the NAR Settlement, the MLS is responsible for enforcing written agreements and ensuring compliance with the new practice changes. Accordingly, failure to provide a member's written agreement with a buyer within 24 hours of a request from PrimeMLS will result in a fine of $100 per day, up to a maximum of $500.