New Rules Go Into Effect and Compensation Information Eliminated
Please Read Below for a Full Description
See C.A.R. Resources as well
Significant changes to everyday business are currently underway in the professional real estate industry. CRMLS is making it a priority to help our users adapt to thrive.
In other words, this message, among the others to come in the next few weeks, will be the most important information you’ll read from us all year.
ON AUGUST 13:
- Buyer Agent Compensation fields will be removed from Matrix and Paragon systems
- New CRMLS Rules & Policy changes will go into effect
- The current required Concessions field at Close will include a category list
After NAR settled the Sitzer/Burnett case, the draft agreement included specific requirements for all multiple listing services owned by REALTOR® associations, including CRMLS.
To remain compliant, CRMLS will remove all Compensation fields from the MLS. Compensation negotiations will not be allowed in the MLS in any way, shape, or form.
With such a major change, it’s reasonable that you have questions, so we’re here to answer them.
What happens to my listings on August 13?
Compensation fields/information will be ELIMINATED and no longer visible for the following listing types:
- Coming Soon
- Active
- Hold
- Withdrawn
What happens to my listings that are NOT in one of those statuses?
Compensation fields/information for the following listing types will REMAIN for historical purposes, but cannot be edited or changed:
- Active Under Contract (unless it moves back to Active)
- Pending (unless it moves back to Active)
- Closed
- Expired
- Cancelled
How will I get paid once the Compensation fields are removed?
There are different methods for a Buyer’s Broker to be compensated. A frequently used method is when the buyer includes a term in the offer stating the seller will pay the Buyer Broker fee. Assuming the seller agrees, the Buyer Broker fee becomes part of the complete purchase agreement. Additionally, if using the C.A.R. Residential Purchase Agreement and Joint Escrow Instructions (RPA), the payment would also become part of the Escrow instructions.
What CRMLS Rules & Policy changes will go into effect on August 13?
In adherence to the NAR MLS Policy Changes, CRMLS will make Rules & Policy changes including:
- Rule 7.15 – Unilateral Contractual Offer will be renamed and revised to No Offers of Compensation in the MLS
- Rule 7.19 – Changes to Offer of Compensation to All Broker Participants has been renamed and revised to No Disclosure of Listing Broker Total Commission
- Rule 9.1 – Showing and Negotiations has been renamed and revised to Showings.
- Note: A signed Buyer Broker Agreement will be required before showing a property.
This is just a short selection of the new rules. To see all CRMLS Rules & Policy changes that go into effect on August 13, click here.
Where else can I get information on these changes?
CRMLS has designed a robust Resource Center to provide information on all items mentioned in this email and more. Bookmark the page and visit it frequently for future updates.
Thank you,
California Regional MLS
