In compliance with the NAR settlement, Dayton REALTORS® MLS will be removing all compensation fields and implementing the new NAR Mandatory Rules effective August 8th, 2024. The following are the new rules that will be included in the Dayton REALTORS® MLS Rules and Regulations.
Section 5 No Compensation Specified on MLS Listings
Use of MLS data or data feeds to directly or indirectly establish or maintain a platform to make offers of compensation from multiple brokers to buyer brokers or other buyer representatives is prohibited and must result in the MLS terminating that Participant’s access to any MLS data or data feeds.
Note 1: The multiple listing service must not have a rule requiring the listing broker to disclose the amount of total negotiated commission in his listing contract, and the multiple listing service must not publish the total negotiated commission on a listing which has been submitted to the MLS by a participant. The multiple listing service must prohibit disclosing in any way the total commission negotiated between the seller and the listing broker, or total broker compensation (i.e. combined compensation to both listing brokers and buyer brokers.
Note 2: The multiple listing service shall make no rule on the division of commissions between participants and nonparticipants. This should remain solely the responsibility of the listing broker.
Note 3: Multiple listing services must give participants the ability to disclose to other participants any potential for a short sale. As used in these rules, short sales are defined as a transaction where title transfers, where the sale price is insufficient to pay the total of all liens and costs of sale, and where the seller does not bring sufficient liquid assets to the closing to cure all deficiencies. Multiple listing services may, as a matter of local discretion, require participants to disclose potential short sales when participants know a transaction is a potential short sale. (Amended 8/24)
Section 5.1 Required Consumer Disclosure
Disclosure of Compensation: MLS Participants and Subscribers must:
- Disclose to prospective sellers and buyers 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, buyer written agreement, and pre-closing disclosure documents (if any).
- Conspicuously disclose in writing to sellers, and obtain the seller’s authority, for any payments or offer of payment that the listing Participant or seller will make to another broker, agent, or other representative (e.g. real estate attorney) acting for buyers. This 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. (Adopted 8/24)
Section 5.3 Written Buyer Agreement
Unless it is inconsistent with state or federal law or regulation, all MLS Participants working with a buyer must enter into a written agreement with the buyer prior to touring a home. The written agreement must include:
- a specific and conspicuous disclosure of the amount or rate of compensation the Participant will receive or how this amount will be determined, to the extent that the Participant will receive compensation from any source.
- the amount of compensation in a manner that is objectively ascertainable and not open-ended.
- a term that prohibits the Participant from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and
- a conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.
In order to enforce these new mandatory rules, the MLS Committee and Board of Directors have approved the following penalties for violations of the No Compensation on the MLS rules. These penalties will go into effect on August 8, 2024:
- 1st Violation – Immediate $2000 fine and the verbiage will be removed by MLS Staff
- 2nd Violation – $3000 fine and the verbiage will be removed by MLS Staff
- 3rd and Subsequent Violations – $5000 fine, 30-day suspension from the MLS, and the verbiage will be removed by MLS Staff.
Examples of violations that would incur these fines include but are not limited to:
- Stating commission in any field of the MLS
- Having something in the photo displaying compensation
- Mentioning compensation in a virtual tour video placed on the MLS
- Including compensation on a supplement uploaded to the MLS
If you have any questions regarding these rules, please reach out to our MLS team at MLSSupport@DaytonRealtors.org prior adding your listing so that we may advise you. We understand that this is a big change for our members and we want to assure you that we are here to help you by providing guidance to avoid any MLS violations.
