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

PrimeMLS FAQ - Cooperating Compensation


1. Can I use the MLS to convey or imply cooperating compensation in any way?

No. Any attempt to convey or imply cooperating compensation within the MLS is strictly prohibited. This includes all listings, remarks, public and non-public fields, and tools like ShowingTime and Supra.


2. Can I include an offer of concessions in the remarks section of the MLS?

Yes. Concessions can be marketed in any of the remarks fields; however, 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.


3. Can I include dollar amounts or percentages when marketing concessions in the remarks fields?

No. 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.


4. Are there any words or phrases that can be used to indirectly suggest cooperating compensation?

No. Any word or phrase that could be interpreted as conveying cooperating compensation is not allowed in the MLS. The PrimeMLS Compliance Team will review any questionable language to determine if it violates the rule.


5. Is it acceptable to use phrases such as, "Buyer Courtesy offered," or "Seller supports Buyer Agent Representation?"

No. If you're asking whether a specific phrase is allowed, the answer is likely "No." If your intent is to convey that the seller is willing to offer cooperating compensation, it cannot be included in the MLS compilation. 


PrimeMLS will review the phrase and assess as to if the intent is to convey compensation. Context will be evaluated, as well as the typical usage of the wording in the industry, and any pattern of similar language used by the member. If a pattern is detected or if the wording appears to be indirectly suggesting cooperating compensation, the phrase will be flagged as non-compliant.


Other examples of prohibited phrases include (this is is not all inclusive):

  • "Referral fee available"

  • "Incentive for Buyer's Broker"

  • "Broker participation invited"

  • "We love buyer agents"

  • "Buyer Agents Welcome"


6. Can cooperating compensation details be communicated through third-party tools like ShowingTime or Supra?

No. These tools are considered extensions of the MLS, and as such sharing cooperating compensation details through them is prohibited.



8. Can I add cooperating compensation information into the documents, tours, photos, or other fields in my MLS listings?

No. Adding any cooperating compensation information or attempting to convey any cooperating compensation details through documents, tours, photos, or other MLS fields is strictly prohibited. Any attempt to bypass MLS rules will be treated as a violation.


9. Are third-party recipients (such as showing services, lockbox, websites) of PrimeMLS data feeds allowed to display cooperating compensation information?

No. Third parties receiving data feeds from PrimeMLS are prohibited from displaying any cooperating compensation information in conjunction with MLS data.


10. Am I allowed to display cooperating compensation offers on my own website, which has an IDX or VOW feed from PrimeMLS?

Yes, but only for your own listings. Agents and brokerages may display compensation offers on their brokerage websites for their only listings only.


11. How should cooperating compensation be negotiated if it can't be included in the MLS?

Compensation should be negotiated directly between the involved parties outside of the MLS environment.


12. What should I do if I accidentally include cooperating compensation information in a listing?

Immediately remove the information to ensure compliance with MLS rules. Failure to do so could result in penalties.

PrimeMLS FAQ - Written Buyer Agreements


1. Are written buyer agreements mandatory for all property types?

No. Written buyer agreements are required for Residential, Multi-Family (1-4 units), and Rental properties and are not mandatory for Commercial Sale, Commercial Lease, Land, or Boat Facility listings.


2. Do I need a written buyer agreement to show a property or hold an open house?

For Buyer's Agents: Yes, a written buyer agreement is required before showing or touring properties. 


For Listing Agents: No, a written buyer agreement is not required when showing properties to unrepresented buyers at an open house or showing held on behalf of your seller.


3. Is it appropriate to ask another agent to share their written buyers agreement?

No. While you may ask if the agent has obtained a written buyer agreement with their buyer, it is generally considered inappropriate to request a copy of another agent's agreement.


4. Will the listing agent be penalized if they show a property to a buyer whose agent did not secure a written agreement with that buyer prior to the showing?

No. PrimeMLS does not require listing agents to verify that a buyer's agent is in compliance with our rules; however, if you suspect that an agent has not complied with the rules, you can report the matter to rules@primemls.com for review. The identity of the person reporting will not be shared with the other agent.


5. What should I do if I suspect a buyer's agent does not have a written agreement?

Proceed with the showing. If you suspect that an agent has not complied with the rules, you can report the matter to rules@primemls.com for review. The identity of the person reporting will not be shared with the other agent. 


6. Do I need a written buyer agreement for every property tour?

Yes. A written buyer agreement is required for each buyer you represent during property tours, though one agreement can cover multiple properties or days.