Find step-by-step guides, answers to your questions, and updates to help you better navigate and use the MLS system.
MLS Policy Changes - August 2024
To remain complaint with the NAR settlement terms, PAAR has implemented new MLS policy regarding compensation effective August 1, 2024.
Overview of MLS Policy Changes
No Offers of Compensation via the MLS (Section 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.
Misuse of Remarks (Section 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). Additionally, links to websites where the target webpage provides any offer of compensation is prohibited.
Written Buyer Agreement Required (Section 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 unless requested.
Written Disclosures to Sellers/Buyers (Section 9.2 & 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.
Sample disclosure statement provided by NAR can be found in resources below.
Overview of New MLS Violations
Misuse of REALTOR® Remarks (Public) – Publishing: (Sec. 13.7 & 13.7.1)
Links to Webpages with Offers of Compensation FINE LEVEL D
Offering of Compensation via MLS FINE LEVEL D
Misuse of REALTOR® Only Remarks (Confidential) – Publishing: (Sec. 13.7 & 13.7.2)
4.2.3 Links to Webpages with Offers of Compensation FINE LEVEL D
4.2.4 Offering of Compensation via MLS FINE LEVEL D
Showings and Access (Sec. 10.4)
Failure to Provide a Copy of the Completed Written Buyer Agreement within One (1)
Business Day of Request by the Service. FINE LEVEL D
FINE LEVEL D | $1,000 and attend a hearing Repeat offenses of same violation: Second Offense – Suspension from MLS for 60 days Additional Offenses – Termination from MLS |
Summary of Changes
- New Seller Concessions Y/N field added to MLS input that may be used to communicate to potential buyers that there are amounts the seller may be willing to contribute as part of the transaction.
- All Compensation related fields have been removed from the MLS. Specific fields removed include Compensation, Compensation Type, and Variable Commission.
- Links to websites in the REALTOR® Remarks (Public) and/or REALTOR® Only Remarks (Private) where the target webpage offers any offer of compensation is prohibited and will result in a Level D Violation which bears a fine of $1,000.
- A written buyer agreement is required prior to touring any listing. This does not include open houses.A separate written disclosure statement stating that broker commissions are not set by law and are fully negotiable is required.
FAQs
Can I add compensation information to my website that receives listing data from PAAR MLS?
No. The settlement prohibits PAAR MLS from sending any listing data to websites, portals, etc. that includes offers of compensation.
Will compensation fields be removed from all property types?
Yes.
Do the new rules apply to Commercial or Business Opportunity listings?
Yes. The new MLS changes apply to ALL property types.
Can I upload a document to the MLS that contains an offer of compensation?
No. The proposed settlement does not permit for offers of compensation sharing in any field in the MLS, including documents.
Can listing brokers tell buyer brokers about compensation ahead of time?
Yes. Conversations held outside of the MLS can include offers of compensation between the buy and sell side and as permitted by each brokerage.
What happens to the compensation data on August 1st?
All compensation-related data, including historical information, will be hidden and no longer accessible.
Can I continue to communicate seller concessions for things like repairs in the private remarks?
Yes. Seller to buyer incentives is still allowed in the private remarks. However, any direct or indirect statements directing to an offer of compensation is prohibited.
Can sellers still make offers of compensation to buyer’s agents?
Yes. The information exchanges and negotiations can be made via phone, email, text, in-person or any other means available, outside of and not in connection with the MLS.
Can I add compensation in the “Supplements”?
No. The proposed settlement expressly forbids any offers of compensation between brokers to be offered in any field on the MLS.
Can I use ShowingTime to communicate commission or compensation?
No. ShowingTime receives a data feed from PAAR MLS. The terms of the settlement prohibit the MLS from creating, facilitating, or supporting any mechanism to make offers of compensation.
When must a buyer’s agreement be signed?
MLS Participants working with a buyer must enter into a written agreement prior to touring a home.
Do I need to upload the buyer agreement to the MLS?
No. You are only required to send a copy to the MLS if an issue arises and is requested by PAAR.
What should I do if I suspect compensation is being communicated through the MLS?
If you suspect compensation is being communicated anywhere on the MLS, click the Report Violation button to send a notice to the compliance team at PAAR.
RESOURCES
Arizona REALTORS® Best Practices: NAR Settlement Resources