CRMLS Industry Update & MLS Changes with Art Carter
On Wednesday, August 7, CRMLS CEO Art Carter will be discussing important rule changes effective August 13, their associated fines and Concessions in Price (CiP) Fields. Register today to learn about the impact on CRMLS users during a special session exclusively for brokers and managers.
Note: This event is for brokers and managers only. Please do not share this link. Â
To remain compliant with the NAR settlement terms, CRMLS is implementing a new policy regarding terms of compensation
CRMLS will remove all Compensation fields from the MLS on August 13. Compensation negotiations will not be allowed in the MLS in any way, shape, or form. The CRMLS Board of Directors voted to make the compensation fine $2,500 effective August 13.Â
ON AUGUST 8:
- Buyer Agent Compensation fields will be removed from Flexmls
ON AUGUST 13:
- Buyer Agent Compensation fields will be removed from Matrix & Paragon
- New CRMLS Rules & Policy changes go into effect
- The current required Concessions field at Close will include a category list
- Warning messages will be added to listing input to help users understand that compensation is no longer permitted
- Fines will be imposed on all listings that attempt to indicate forms of compensation
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.
What happens to listings on August 8 (Flex) and August 13 (Matrix & Paragon)?
Compensation fields/information will be ELIMINATED and no longer visible for the following listing statuses:
- Coming Soon
- Active
- Hold
- Withdrawn
- Active Under Contract (unless it moves back to Active) *Please note this was updated as previous communications stated that compensation fields/information for the following listing types would remain for historical purposes.
What happens to listings that are NOT in one of those statuses?
Compensation fields/information for the following listing statuses will REMAIN for historical purposes, but cannot be edited or changed:
- Pending (unless it moves back to Active)
- Closed
- Expired
- Cancelled
What will occur if someone attempts to indicate compensation anywhere in the MLS, such as Public Remarks, after August 8 (Flex users) and August 13 (Matrix/Paragon users)?
Violating CRMLS Rule 7.15 (Offering or Conveying Buyer’s Agent Compensation on the MLS) will result in the immediate removal of the offending language from the MLS and a fine of $2,500.
CRMLS is actively communicating this information through emails, REcenterhub articles, MLS system pop-ups, social media, and the CRMLS.org website.
Additionally, warning messages in bold red text will appear within listing inputs on Private Remarks, Public Remarks, and Showing Instructions text fields. Private Remarks will also display a pop-up message titled “Private Remark Warnings and Errors,” indicating that a prohibited word was entered and that it may result in a violation.
Based on the recent NAR settlement, CRMLS is required to take this action to ensure compliance and help reduce potential broker liability. Â
What additional measures is CRMLS taking to ensure compensation amounts are not listed in the MLS after August 8 (Flex users) and August 13 (Matrix/Paragon users)?
A warning message regarding offers of compensation will be added to open text fields at listing input. Additionally, the Public Remarks section will detect any words, phrases, or numbers indicating an attempt to add compensation information to the MLS and display a warning pop-up message. This pop-up will also include links to helpful resources to assist users with understanding the rules changes.
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. Click here to read the full set of rules changes.
C.A.R. Form RLA Revised 7/24
C.A.R. Form RLA (Residential Listing Agreement) 7/24 is here. The new RLA does not provide for any buyer’s agent compensation to be included.
If using C.A.R. Form RLA 7/24, as you enter your listing in the MLS system, please make sure to enter zero (0) in the required BAC field. Zero (0) is the only acceptable value for the BAC field.
If you are using ANY OTHER form as a Listing Agreement, the above might not apply depending on the content and construction of that form. Please contact your broker and/or attorney to review your forms and discuss BAC fields in relation to the above to ensure your listing is properly entered in the MLS.
We highly recommended to have a signed Buyer Representation Agreement with a client prior to any showing in any event, but especially when using the new RLA form.
Concessions in Price (CiP) Fields Revised on July 30
On May 29, new Concessions in Price (CiP) fields were added to the MLS as an optional part of the listing process, and for users to view on published listings.
On July 30, two fields were removed to reduce the risk of those fields being used as a replacement to compensation. The new CiP fields have been active for 2 months. Data indicates the following trends:
- Close to 3K listings made use of the CiP fields
- Approx. 50% of the listings that used the CiP fields did not indicate a $ or % amount
Based on these statistics, it is clear that agents are eager to consider concessions. However, they may not want to indicate a specific amount until the negotiation process begins.
Following these findings, the CRMLS Board of Directors made the strategic decision to remove the option to designate $ or % for the purpose of streamlining the CiP process and allow for the negotiation of concession details via purchase agreements.
Additional Resources
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