NAR Settlement Updates
August 6, 2024 - MLS will remove all Commission Fields.
*$500 Fine if Commission or Bonuses are mentioned elsewhere in the Listing.
*Any Document outlined in Yellow is clickable.
Concessions Fields
Offering of concessions to the buyer is at the sole discretion of the seller and is not required.
This field will be:
- Yes/No field
- If yes, autofill in remarks that seller will consider concessions in price when an offer is submitted.
- An option to enter $ amount or % of sales price
Concessions Fields Are Not:
- Conditioned upon using only for buyer broker compensation, nor a replacement of compensation fields.
- It is not a blanket, unilateral offer and must be negotiated in the contract.
- It is not required in any way from sellers.
New Buyer Forms
Office Clauses to Add to your MLS Paperwork
1. Company Compensation Clause in Contract
We have prepared a company compensation clause for you to insert in Paragraph 20 of the FAR/BAR As-Is Contract.
“Buyer and Seller agree that Buyer’s Brokerage compensation of ____ of Purchase Price is to be paid from seller's proceeds at closing.”
To insert Clauses: Click on the box of the Additional Terms. A pop-up will appear "Add Clause".
Click on "Office Clauses."
Check the box next to "Company Compensation" to add the clause to the contract. Make sure to add the appropriate amount of compensation to the Clause.
2. Yellowfin Realty Compensation Modification for Listing Agreement
We have prepared a company compensation clause for you to insert in Paragraph 15 of the Exclusive Right to Listing Agreement.
“Seller acknowledges that commission for listing agents and buyer's agents are negotiable. Yellowfin Realty does not have a policy for this.
Compensation noted on this document reflects the negotiated offerings of compensation.”
To insert Clauses: Click on the box of the Additional Terms. A pop-up will appear "Add Clause".
Click on "Office Clauses."
Check the box next to "Listing Agreement Compensation Modification" to add the clause to the contract.
New Updates
Update #1: Showing Agreement
Upon further review and in-depth conversations about best practices for working with buyers we located an alternative form to comply with settlement guidelines.
This showing agreement is property-specific and allows you to begin to serve the consumer without expecting them to commit to the more extensive buyer-broker agreement. In the event the buyer purchases said home you will be protected.
Company compensation is earned when you perform in helping the buyer successfully negotiate a purchase that includes your stated commission being paid by the seller at closing. It states that compensation is negotiable and capped based on the fee reflected in the document.
The purpose of the conversation with buyers regarding compensation is to let them know you get paid to work the same as they do. You are not paid until you help people buy or sell real estate successfully with terms and conditions that meet their home requirements and their financial goals. You are committed to helping the accomplish using your skill and experience to produce an excellent outcome for all parties
Update #2: All new Listing Agreements after 8/6 will need to add in the following clause in Paragraph 14 or Line 167: Additional Terms.
"Seller acknowledges that commission for listing agents and buyer's agents are negotiable. Yellowfin Realty does not have a policy for this.
Compensation noted on this document reflects the negotiated offerings of compensation."
You will find this clause in Transaction Desk.
Update #3: Agents may or may not tell you what the seller is prepared to pay.
When you make the call to a list agent or text just ask is there information you should have to make an eventual offer appealing to a seller. Pause and let them speak. If they do not state commission to be paid, just state you will help the buyer make an offer that meets their needs.
Update #4: On page 15 of the Attached Q&A from Stellar MLS, you can find information about New Construction contracts.
The Buyer Broker Agreement requirement only applies if the New Home is listed in the MLS. If it is listed in the MLS, you will still need a BBA before showing the property.
Update #5: Attachments in the MLS
There has been an update to the Attachments page in the MLS for listings. You can choose how you would like your attachments shown.
- Public Attachments - Attachments will be visible to everyone, including OneHome and Public Websites.
- Conditional Attachments - Attachments will be visible to everyone (just like Public), however when the property goes off-market, the attachments will not be visible on the Public Websites.
- Private Attachments - Attachments will only be visible on the MLS to Realtors. The public will not be able to see the attachments on the Public Websites.
Frequently Asked Questions
Do I still have to have the Compensation Clause on the Contract, if we have an agreed and signed Buyer Broker Agreement?
Yes, it is always best practice to add the Compensation Clause in the Contract.
Best Practice Verbiage
It may be best practice for clarity to start referring to your commission as Company Compensation, as that is more congruent with the updated forms.
In addition, due to the Buyer Brokerage agreement being required, you may want to refer to yourself as the Buyer Agent vs. selling agent.
New Company Policies
* All Listing Paperwork, including the Listing Agreement and updated Checklist reflecting commissions will be due within 3 days of activating your new listing.
* All Listing Modifications forms signed by the sellers are due within 3 days of the changes.
* All Contract Paperwork, including the new Buyer Brokerage Agreement, EMD, and updated Checklist reflecting commissions to be received will be due within 3 days of the Executed Contract.
Fines of $50 per occurrence will begin August 1, 2024
Our Focus Is Serving You! That’s What We Do!
Yellowfin Realty
11256 Winthrop Main Street
Riverview, FL 33579
813-229-8862
