The Prescott Area Association of REALTORS® has made changes to the MLS Rules and Regulations to comply with the NAR Settlement Opt-In Agreement effective Thursday, August 1st.
The new MLS rules have been drafted by MLS counsel and approved by the PAAR Board of Directors as of July 11th, 2024. Changes to the rules are noted in blue font within the document, reflecting the adjustments required for PAAR to comply with the NAR Opt-In Settlement Agreement.
Please review the new MLS Rules in their entirety here.
Current as of July 31st, 2024.
Additionally, the PAAR Board of Directors approved updates to the bylaws that comply with the Opt-In. Changes to the bylaws are noted in red font within the document. Changes mandated by NAR do not require a member vote.
Please review the new Bylaws in their entirety here. (See Article XVIII – Multiple Listing)
If you have a question regarding the MLS Rules and Bylaws changes, please contact PAAR. Thank you for your patience throughout this process.
Resources
NAR is the most comprehensive resource for updates regarding the settlement agreement and the resulting rule changes. Visit the Facts for REALTORS® page here for FAQ, educational videos, and more.
In coordination with NAR, Arizona REALTORS® has released a comprehensive guide of best practices and resources. Visit the Best practices webpage here.
Overview of New MLS Rules
No Offers of Compensation via the MLS (8.16 – 8.19)
Offers of compensation via the MLS are no longer permitted, nor is the reporting of compensation allowed. All MLS fields related to compensation, will be removed from listing input and listing detail reports on August 1st. This includes the Compensation field, Compensation Type field, and the Variable Commission field.
Additionally, PAAR has adopted a new Seller Concessions Y/N field that can be used to communicate with potential buyers that there are amounts the seller may be willing to contribute as part of the transaction. This field will be available when entering a new listing on August 1st. Please note that further discussion in the Remarks section is not allowed and will result in a Level D violation which bears a fine of $1,000.
Misuse of Remarks (13.7)
“Neither the REALTOR® Remarks (Public) or the REALTOR® Only Remarks (Confidential) may contain an offer of compensation from seller or listing broker to cooperating brokers or an offer of a seller concession. Seller concessions may only be entered into the MLS designated field for seller concession (i.e., Seller concession Y/N).”
As we ramp up to the August 1st rules change, PAAR staff is reviewing the REALTOR® Remarks and the REALTOR® Only Remarks sections and removing any text that references offers of compensation and seller concessions. Historical data regarding compensation will also be removed as of August 1st for closed listings.
Written Buyer Agreement Required (10.4)
“A participant working with a buyer must enter into a written agreement with the buyer prior to the buyer touring any listing. This requirement does not apply to potential buyers attending an open house that is open to the public.”
Buyer Agreements are required, but you do not need to send these agreements to PAAR. However, if a notice of violation is received, we will investigate and ask for the agreement. It must be provided within one business day when requested by PAAR
Written Disclosures to Sellers / Buyers (9.2 and 10.3)
“With government-specified forms, Participants must include a separate written disclosure statement with conspicuous language expressly stating that broker commissions are not set by law and are fully negotiable.”
We have received feedback that the newly revised AAR forms contain the language that complies with the commission disclosures. However, you may have a transaction that uses a government form (i.e. HUD) or a non-AAR form for the listing agreement, buyer agreement or pre-closing documents. Only if one of those items is a government form, would there need to be a separate disclosure (unless the government form had the disclosure language, which may not be the case).
For this reason, NAR is providing a separate disclosure form that may be used in those instances available here.
Overview of New MLS Violations
4.1 Misuse of REALTOR® Remarks (Public) – Publishing: (Sec. 13.7 & 13.7.1)
NEW 4.1.11 Links to Webpages Predominantly about Offers of Compensation - FINE LEVEL D
NEW 4.1.12 Offering of Compensation via MLS - FINE LEVEL D
4.2 Misuse of REALTOR® Only Remarks (Confidential) – Publishing: (Sec. 13.7 & 13.7.2)
NEW 4.2.3 Links to Webpages Predominantly about Offers of Compensation - FINE LEVEL D
NEW 4.2.4 Offering of Compensation via MLS - FINE LEVEL D
5.1 Showings and Access (Sec. 10.4)
NEW 5.1.6 Failure to Provide a Copy of the Completed Written Buyer Agreement
within One (1) Business Day of Request by the Service. - FINE LEVEL D
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