Non-Member MLS Showings: Are Written Commission Confirmations Still Required?
Q: I’ve always been told that I shouldn’t show property exclusively listed in an MLS for which I’m not a member without first getting something in writing from the seller’s agent confirming they’ll share their commission with me. Has this changed with the changes in MLS and the requirement for Buyer Rep Agreements?
A: Multiple Listing Services (MLSs) existed in the past to provide an offer of cooperation and compensation between agent members. With the changes mandated by the NAR Settlement Agreement, the offer of compensation is now prohibited within the MLS. This means that being a member of an MLS now offers agent members only the offer of cooperation in showing the listings entered into the system. So now, if you’re not a member of an MLS in which the property your buyer wants to view is listed, nothing changes with respect to compensation. Compensation is agreed upon between the buyer’s agent and buyer in the Buyer Representation Agreement and may be modified with an agreement for the seller to contribute toward what the buyer owes as part of a sale agreement. Shared compensation agreements, if any, must be disclosed to the clients in writing before being entered into. However, technically, an agent who isn’t a member of an MLS hasn’t received the offer of cooperation allowing them to show the properties listed there. Therefore, you’ll want to get that authorization in writing from the seller’s agent, most commonly in the form of an email.
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