There are many things to consider when adapting to the new practice changes. One important and in-depth resource is NAR Settlement FAQs. IRES recommends you also rely on your brokerage leadership, counsel, CAR, and/or DORA for all questions regarding representation agreements.
What if I am not a REALTOR®?
IRES Rules, updated as necessary to comply with the NAR settlement, apply to all subscribers independent of their affiliation with NAR.
Can buyers and buyer brokers rely on an offer of compensation that was on an MLS prior to the effective date of the MLS policy changes?
- If the sales contract is executed before the MLS policy change, the buyer broker should be able to rely upon the offer of compensation even if closing occurs after the date of the policy change.
- But if a sales contract is not executed before the date the participant’s MLS implements the policy changes, the offer on an MLS will not be valid and buyers and buyer brokers may wish to protect themselves in writing with the listing broker or seller through a broker agreement or by including the offer of compensation in the sales contract.
Should active buyer agreements entered into before the MLS policy change be amended to make sure any compensation is not open-ended and is objectively ascertainable?
- Yes. MLS Participants working with a buyer after the effective date of the policy should take steps to ensure that the buyer has agreed to the necessary terms required by the settlement agreement.
Should active listing or buyer agreements—meaning there is no accepted offer—entered into before the MLS policy changes go into effect on August 17, 2024, be amended to include a conspicuous disclosure that compensation is not set by law and is fully negotiable?
- MLS Participants must make this disclosure. Active agreements can either be amended or a separate disclosure can be provided to satisfy the requirement.
IRES MLS: Come Home to Colorado 