Avoid Fines by Complying with New Rule Changes

To comply with the NAR Settlement agreement, brokers must adhere to the new rules or face compliance fines.

On August 1st when SWMLS implemented the required changes, the following rules and actions have been taken:

Section 5.0: No Compensation Specified on MLS Listings

Please Note: No offers of compensation apply to all property types.

VIOLATIONS: 108 violation notices have been sent

Examples of Prohibited Practices:

  • Any commission or compensation offers. Words such as "Commission" and "Compensation" are blocked in FlexMLS.
  • Alluding to an offer of compensation to the Buyer Broker, e.g., "Buyer Broker is covered"
  • Abbreviated offers of compensation, e.g., "X% BB Comp"
  • Mentions of NMAR forms relating to Buyer Broker Compensation. e.g., "Send 2301 with the offer" or "Call listing broker for 1108 or 4660"
  • Use of Association/MLS products to offer compensation, such as notes in Showing Time.
  • Directing to a website if that site shows Buyer Broker Comp
  • Directing to "call or text" Listing Broker for Compensation
  • Use of list price to promote Buyer Broker Compensation, e.g., using a specific digit as a code to indicate compensation
  • Use of property images to show offers of compensation, e.g., adding a text overlay with an offer
  • Attaching any document that refers to compensation.
  • This is not an all-inclusive list. There are no workarounds!

Updated SWMLS Rules & Regulations - August 2024

Section 5.0.2 – Written Buyer Agreement

Please Note: This requirement applies only to Residential properties, up to 4 units.

VIOLATIONS: 0 incidents have been reported 

Updated SWMLS Rules & Regulations - August 2024

 

On Saturday, August 17th when the new rules take effect nationwide, SWMLS will no longer issue warning notices, and the following fines will be accessed:
  • First fine within a 12-month period will be assessed at $250
  • Second fine within a 12-month period will be assessed at $500
  • Third fine and all subsequent fines within a 12-month period will be assessed at $750
  • When the Participant or Subscriber receives a 3rd or subsequent administrative sanctions, the tribunal will hold a hearing in which the Subscriber and Participant will be required to attend.

Refresher on what changed for SWMLS Subscribers on August 1st, 2024

Key Rule Changes
  • Compensation can no longer be communicated in the MLS 
  • Use of MLS data feeds to establish a compensation platform among multiple brokers is prohibited 
  • Brokers working with a buyer must enter into a Written Agreement with the buyer before an in-person or live virtual tour of a home
SWMLS Rules and Regulations Effective August 1st, 2024
To comply with the new Rules, the following FlexMLS Fields were removed:
  • Unconditional Comp
  • Variable Rate Comm
  • Comp Comments
FlexMLS Field that remains:
  • The  Seller Assistance Offered Yes/No field in the MLS will remain in the event the seller is willing to assist in buyer closing costs.
SWMLS will not be adding "Concession" fields to the MLS for several reasons:
  1. SWMLS believes that adding a concession field could be confusing and ultimately used to list compensation which could leave SWMLS and members open to liability and potential scrutiny by the DOJ.
  2. It will not be necessary once brokers work through a few transactions. It is preferable to list compensation and concession options in the Purchase Agreement and let the seller decide, rather than create confusion over conditional concessions.
Historical Data in the MLS
  • Historical Compensation Data will still be visible on Listings closed before August 1st.
  • All compensation data on Active or Pending Listings after August 1st will be purged. 

Resources 

https://www.gaar.com/blog/article/member-resources-on-compensation