MLS "Broker Beachbag" Guidebook
As we navigate a new MLS landscape, OBAR is dedicated to keeping you informed and up-to-date on what is taking place to ensure a smooth transition for members and vendors by the NAR mandated effective date of August 17th.
The OBAR Board of Directors recently approved changes that would remove MLS fields while adding new fields. These changes are necessary to meet the requirements of opting-in to the NAR settlement agreement. Opting-in releases all members as of the date of the class notice (by August 17th) from liability for the types of claims brought in the cases on behalf of home sellers related to broker commissions. It is mandatory that all, and any, reference to commission/buyer's agent compensation be removed from the MLS. Go to the FAQ's on facts.realtor to learn more about these changes.
Here is a Summary of MLS Policy Changes.
The OBAR MLS Committee, under Chair Tammy Aycock and member Maslin Seal, have developed a guidebook - the Broker Beachbag Guidebook - to assist MLS participants navigate new MLS fields, the Buyer Agency Agreement, the removal of MLS compensation fields, and more.
A Special Edition Milepost e-newsletter was sent to members last week highlighting the information below:
MLS Changes and Doing Business After August 17th
- Written Buyer Agency Agreement - Must be in place prior to a buyer touring a home.
- Listing Agreement - Must include disclosures regarding broker compensation.
The good news is, unlike brokers in 32 other states, REALTORS in North Carolina have been using Buyer Agency Agreements for years - so this should be business as usual. More good news - NC REALTORS Legal Counsel has reviewed all forms effective July 1, 2024 to ensure compliance with the terms of the NAR settlement agreement. They recently posted a wealth of resources about the forms - videos, summaries, and more - to assist you as you conduct business. NC Real Estate Forms Resources
Changes to Paragon
It is expected that on August 15, 2024, the following mandatory fields will be added to the MLS.
- Pre-Sale Concessions: a Y/N check box in the Listing section. Pre-sale concessions will be a negotiating point for the seller. This simply means that the seller would allow buyer concessions in the contract. The buyer could choose to use the concessions any way they would like towards closing costs or to pay their buyer agent or lenders fees, repairs etc.
- Concessions Y/N check box in the Sold section. There is already a Concessions field in Paragon.
- Closing Cost Y/N check box and a Closing Cost Value field to the Sold section,
- Other Value Y/N check box and Other Value field to the Sold section.
On August 15th, compensation fields in all classes will be removed from Paragon and data feeds. These include:
- Comp Buyer's Agent %
- Comp Buyers Agent Fee/Bonus $
- Comp Sub Agent %
- Comp Sub Agent Fee/Bonus $
- Var Rate Comp
Additionally, a pop-up "Warning" message will appear so that when the listing is saved you will need to certify that there is no compensation included anywhere in the listing.
There will also be new fines effective August 15th:
1718 A fine shall be imposed for entering broker compensation in any listing in the MLS as follows:
1.7.18.1 First Offense - $500
1.7.18.2 Second Offense - $1000
1.7.18.3 Suspension from the MLS for 30 days. The OBAR MLS Committee, Board, and staff has been working diligently - attending meetings, webinars, conferences, meeting with NAR/NCR staff/attorneys - since news of the settlement agreement was announced in March to ensure the OBAR MLS is compliant and you are protected.