How Aiken MLS Will Respond to NAR Settlement Requirements
1. No Offers of Compensation in MLS: The MLS is prohibited from including offers of compensation (buyer’s agents, transaction brokers, sub agents) in the database. Those current compensation fields will be removed on August 5th, 2024. No other field may be used to relay offers of compensation.
NOTE: Aiken Association leadership and our MLS Committee are aware of suggestions of "creative workarounds” to this central mandate of the settlement (alternative language, private remarks, hidden fields, etc.). To be clear – the settlement specifically forbids this practice.
In addition to MANDATORY NAR amendments, both the Aiken MLS Rules & Regulations and Aiken MLS Policies & Procedures will be amended to include the following:
RULE: Offers of compensation are strictly prohibited from the Aiken MLS and any product, service, or media affiliated with Aiken Association of REALTORS® and MLS.
Consequences for entering compensation in the Aiken MLS:
- First Offense: $1000 fine to the offending agent. Broker in Charge shall acknowledge notification of violation in writing.
- Second Offense: $2500 fine to the offending agent. The offending agent will be suspended from MLS for 30 days. The offender must take and pass the MLS Rules Quiz to be reinstated. Broker in Charge shall acknowledge notification of violation in writing.
- Third Offense: Termination of offender's MLS rights, privileges, and services for 1 year. The offender must take and pass the MLS Rules Quiz to be reinstated. Broker in Charge shall acknowledge notification of violation in writing.
NOTE: For graduated offenses to go into effect, the subsequent violations of this rule must be within a 12-month from the previous violation. Transferring brokerages does not reset the graduated offenses. Implementation of these consequences shall begin on August 17, 2024 (NAR Settlement required date of compliance).
Aiken Association and Aiken MLS staff & leadership shall communicate and educate the membership in the following ways: distribution of this document to all members, FlexMLS Login Alerts (with mandatory affirmation), Aiken Association closed group social media posts, emails to all Aiken MLS members, Broker in Charge Forum, FlexMLS in-app NOTES.
2. Offers of Compensation Platforms: Creating another MLS database, feed or platform to collect offers of compensation between multiple brokers is also strictly prohibited by the settlement.
NOTE: Aiken Association and MLS Staff will forward any reports of this prohibited practice to Aiken Association BOD, SC REALTORS® leadership, and appropriate legal counsel. Brokers/brokerages are encouraged to consult the SC REALTORS® attorneys and Legal Hotline before making offers of compensation on any platform other than their own website.
3. Buyer Broker Agreements: Another stated term of the settlement is that the MLS must require that ALL participants and subscribers have a written agreement before touring a listing with a buyer.
NOTE: Aiken MLS Rules & Regulations, as amended June 2024, include MANDATORY NAR amendments regulating Buyer Broker Agreements (see Section 5.0.2). Brokers will not be required to file copies of Buyer Broker Agreements, unless requested by Aiken Association and MLS Staff in response to a dispute or Rules violation.
4. Participant disclosure regarding offers: MLSs must require participants and subscribers to disclose to sellers and obtain seller approval for any payment or offer the listing broker or seller makes to another broker, agent, or representative (for example, an attorney) representing a buyer (if any).
NOTE: Aiken MLS Rules & Regulations, as amended June 2024, include MANDATORY NAR amendments regulating disclosure of offers of compensation (see Section 5.0.0 item #2). All applicable SC REALTORS® Forms will be updated accordingly.
5. Participant disclosure regarding commissions: MLSs must require members participants and subscribers to disclose to sellers and buyers that commissions are not set by law and are fully negotiable in listing agreements, in their buyer rep agreements, and in pre-closing disclosure documents, if any.
NOTE: Aiken MLS Rules & Regulations, as amended June 2024, include MANDATORY NAR amendments requiring this commission disclosure (see Section 5.0.0 item #1). All applicable SC REALTORS® Forms will be updated accordingly.
6. No advertising services as free: MLSs must prohibit participants and subscribers from representing services for which they are later paid, as free.
NOTE: Aiken MLS Rules & Regulations include earlier MANDATORY NAR amendments regulating advertising real estate services as free (see Section 4.5, Amended 2023). Aiken Association and MLS Staff will respond to any reports of this prohibited practice by sending a warning letter to the offending agent and their Broker in Charge, subject to current Aiken MLS Policies & Procedures Fine System policy.