Posted August 13, 2024
MIAMI Members,
We’ve got you! You are in the right association at the right time – no other association has provided so many classes, resources, toolkits, and real-time answers to all your questions! Since NAR announced the settlement agreement on March 15, 2024, MIAMI REALTORS® has hosted over 70 classes with nearly 20,000 participants and licensed special classes to 104 companies – with more to come. Here is a summary of what you need to know NOW:
- New optional MLS fields added for “seller-to-buyer incentives”
- August 13 – ALL compensation fields removed from ALL listings in the MLS
- New MLS Rules and practice changes are effective August 17
- Compensation disclosures are required
- Written buyer broker agreements are required
- Cannot filter listings by compensation, if any, or brokerage/agent
- Violations of MLS Rules and fines – revised
- More classes with MIAMI to explain the new practice changes and rules
- Brokers can license important courses for FREE from MIAMI REALTORS®
- New Florida REALTORS® forms
- Exclusive classes with MIAMI to answer your top questions and to provide a roadmap to the new forms
- MIAMI REALTORS® resources and toolkits
Read below for details on these important updates – MIAMI REALTORS® continues to support you through these changes, just like all other changes that the real estate industry has seen in our 104-year history.
RENEW YOUR MEMBERSHIP ASAP TO BE ELIGIBLE FOR RELEASE OF LIABILITY
If you have not already done so, renew your membership with MIAMI REALTORS® before the “class notice” date so that you are eligible to be released from liability under the NAR settlement agreement! The earliest date for “class notice” is August 17, 2024. You will NOT be eligible for a release of liability under the NAR settlement agreement – and the connected federal class action lawsuits – if you are not a REALTOR® member by the “class notice” date.
AUGUST 13: ALL COMPENSATION FIELDS REMOVED
ALL commission and compensation data fields for ALL listings (residential, commercial, and rentals) will be removed from the Southeast Florida Multiple Listing Service, which also means they will be removed from all data feeds.
AUGUST 17: ALL NEW MLS RULES ARE IN EFFECT
Read the new MLS Rules HERE, which are effective as of August 17, 2024. Below is a summary of the practice changes:
- All commission and compensation fields for all listings (residential, commercial, and rentals) are removed from the Southeast Florida Multiple Listing Service.
- Two new optional “seller-to-buyer incentives” fields are available for use now:
- New field #1: “Seller-to-buyer incentives” – Y/N
- New field #2: “Seller will consider seller-to-buyer incentives in offer to purchase” – Y/N
- Required compensation disclosures
- Compensation, if any, is not set by law and is fully negotiable.
- This must be disclosed to all sellers, buyers, and prospective sellers and buyers.
- Listing agreement requirements
- Must conspicuously disclose to sellers and obtain seller approval for any payment or offer or payment that the listing broker or seller will make to another broker, agent, or other representative acting for buyers. This must be in writing in advance of any payment or agreement to pay another broker acting for buyers and must specific the amount or rate of any such payment.
- Written buyer broker agreements required
- Written agreements required for buyers in residential transactions (not commercial or rentals) before showing a home or otherwise working with the buyer.
- Buyer broker may not receive compensation for brokerage services from any source that exceeds the amount or rate agreed to in the buyer broker agreement.
- Compensation, if any, must be “objectively ascertainable” and cannot be “open ended.”
- If compensation is received from any source, the agreement must specify and conspicuously disclose the amount or rate of compensation the brokerage will receive or how the amount will be determined.
- Cannot filter listings
- Filtering out or restricting listings that are communicated to customers based on the existence or level of compensation offered to the cooperating broker and/or the name of a broker or agent is strictly prohibited.
VIOLATIONS OF MLS RULES
How to report violations? Email mls@miamire.com. The MLS Fine Sheet will be updated by the end of the week and will be posted on miamirealtors.com/mls.
EDUCATION:
Don’t miss out on the “Final Preparation for August 17” series hosted by MIAMI’s Legal Department:
- August 14, 3 – 5 PM (HYBRID): Roadmap on the new Florida REALTORS® forms
- August 15, 6:30 – 7:45 PM (ZOOM): How to do business NOW – roadmap to prepare for 8/17 and beyond with the MLS and Legal Departments
- August 16, 11:30 AM – 1 PM (ZOOM): Must know answers to your top questions
- August 16, 1:30 – 3 PM (ZOOM): Must know answers to your top questions (SPANISH)
- August 20, 10:30 AM – 12 PM (ZOOM): Roadmap on the new Florida REALTORS® forms
- August 20, 12:30 – 2 PM (ZOOM): Roadmap on the new Florida REALTORS® forms (SPANISH)
- August 22, 1 – 3 PM (ZOOM): How to do business NOW – roadmap to prepare for 8/17 and beyond with the MLS and Legal Departments
- On-Demand: (Webinsar) Roadmap on the new Florida REALTORS® forms (MIAMI REALTORS Live)
Below are other courses to prepare you for the practice changes:
- August 14: Buyer Brokerage and Agency (SOLD OUT)
- August 26, 9:30 AM – 12 PM (GLOBAL HQ): Conversations about compensation
- September 6, 9:30 AM – 12PM (GLOBAL HQ): Conversations about compensation (SPANISH)
- September 9, (WEST BROWARD): Conversations about compensation
- September 20, 9:30 AM – 12 PM (WEST BROWARD): Conversations about compensation (SPANISH)
- November 7, 9:30 AM – 12 PM (GLOBAL HQ): Buyer agency best practices and profitability (SPANISH)
- November 14, 9:30 AM – 12 PM (SAWGRASS): Buyer agency best practices and profitability (SPANISH)
Want more? Get courses on replay at MiamiRealtorsLive.com.
Are you a broker? Sign the Broker Course License Agreement to license MIAMI’s courses for FREE for your brokers and agents.
NEW FORMS:
Since late June, Florida REALTORS® has been releasing forms to address the practice changes required by the NAR settlement agreement. Log into Form Simplicity to access those. Like all business decisions, which must be made unilaterally and independently, the decision to use these forms or to work with your counsel to tailor forms to your business’ unique needs rests with your brokerage.
Important notes when using the new Florida REALTORS® forms:
- Property Pre-Touring Agreement (PPTA-1): While all business decisions must be made unilaterally and independently, MIAMI does not recommend using this form because, among other reasons, it may not comply with the terms of the NAR settlement agreement.
- Showing Agreement (SA-4) and the Buyer Brokerage Agreements (EBBA-7tn, EBBA-7nr, EBBA-7sa, and EBBA-7tb): MIAMI strongly recommends deleting the last of these agreements (“However, Consumer agrees that Broker may receive separate compensation from owner of the property for services rendered to owner by Broker, for which Consumer will not be responsible.”). This is because it conflicts with the requirements of the NAR settlement agreement for buyer broker agreements (see pp. 36-37) and for agreements with sellers (see p. 37).
RESOURCES:
Your hub for ALL resources, education, toolkits, and updates is at miamirealtors.com/facts. Check back frequently for updates.
- MIAMI’s toolkits:
- Must-know answers to your TOP questions
- How to do business NOW: checklist to get ready for the 8/17 practice changes
- Slide deck: how to do business now – legal update and action plan (ENGLISH)
- Slide deck: how to do business now – legal update and action plan (SPANISH)
- Toolkit: compensation models
- Toolkit: seller concession options
- Toolkit: best practices for developer-owned properties
- Toolkit: Florida authorized broker relationships
- Toolkit: best practices for data feeds, websites, and compensation
- Toolkit: roadmap for the new forms
- Slide deck: roadmap for the new forms
- Templates: compensation disclosure forms
- MIAMI – Compensation Disclosure Form
- NAR – Compensation Disclosure Statement
- Florida REALTORS® – Compensation Disclosure Statement (CDS-1 on Form Simplicity)
- MIAMI’s Antitrust Policy
- NAR: written buyer agreements 101
- MIAMI’s legal update on the NAR settlement agreement
- MIAMI’s legal update: impact of NAR’s proposed settlement on commercial real estate
- NAR settlement agreement
- Antitrust Audit Checklist (ENGLISH)
- Antitrust Audit Checklist (SPANISH)
- NAR settlement frequently asked questions
- Florida REALTORS®: Let’s talk listing agreements with Juana Watkins, VP of Law & Policy and General Counsel
- Florida REALTORS®: Let’s talk buyer broker agreements with Juana Watkins
COMPENSATION NOTICES:
Pursuant to NAR Handbook on Multiple Listing Policy (Section 18, Policy Statement 7.39), the following are important reminders on compensation:
- A broker’s compensation and fees for services, if any, are not set by law and are fully negotiable.
- A broker’s compensation, if any, for services rendered to a seller or for services rendered to a buyer is solely a matter of negotiation between the broker and their customer or client, and is not fixed, controlled, recommended, or maintained by any persons not a party to the brokerage service agreement.
- The compensation, if any, paid by a listing broker to a cooperating broker in respect to any listing is established by the listing broker and is not fixed, controlled, recommended, or maintained by any persons other than the listing broker.
QUESTIONS?
Visit miamirealtors.com/facts frequently to stay up to date on all of the legal developments, sign up for courses, and to access our resources.
Thank you for being a MIAMI member!
