A Message from ECAR President Keith Wood:

ECAR Implements NAR Settlement August 12th

Dear Members,

The Emerald Coast MLS, Inc. Board of Directors met on Monday, June 24 and discussed the NAR Settlement implementation deadline of August 17th and the date for transferring MLS operations from ECAR to ECMLS.

It was determined that transferring operations to Emerald Coast MLS, Inc. before the implementation date would not be practical. Emerald Coast MLS is working diligently to determine a feasible date, as there are many operational and contractual items (such as signing a new contract with Flex) to resolve before setting a transition date.

As a result, settlement compliance for the MLS will fall under ECAR concerning the approaching August 17th compliance deadline, and ECMLS will be compliant at turnover as well.

On June 25th, I scheduled a meeting with ECAR’s Board of Directors to address the Settlement Compliance Date so we will be able to inform the membership as soon as possible, allowing everyone time to prepare. That meeting took place on July 08, 2024.

Meeting Outcomes

At the meeting it was decided that The Emerald Coast Association of Realtors will implement settlement changes on August 12th, 2024, the Monday before the settlement deadline. This timeline ensures sufficient time to verify everything is correct and compliant before the deadline and allows for any last-minute adjustments. In summary, the mandatory changes will include:

• Eliminate and prohibit any requirement of offers ofcompensation on the MLS between listing brokers or sellers to buyerbrokers or other buyer representatives.
• Retain, and define, “cooperation” for MLSParticipation.
• Eliminate and prohibit MLS Participants, Subscribers, and Sellers from making any offers of compensation in the MLS to buyer brokers or other buyer representatives.
• Eliminate all broker compensation fields and compensation information in the MLS.
• The MLS will not create, facilitate, or support any non-MLS mechanism (including by providing listing information to an internet aggregator’s website for such purpose) for Participants, Subscribers, or Sellers to make offers of compensation to buyer brokers or other buyer representatives.
• Prohibit the use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers or other buyer representatives. Such use must result with an MLS terminating the Participant’s access to any MLS data and data feeds.
• Reinforce that MLS Participants and Subscribers must not, and MLSs must not enable the ability to filter out or restrict MLS listings that are communicated to customers or clients based on the existence or level of compensation offered to the cooperating broker or the name of a brokerage or agent.
• Require compensation disclosures to sellers, and prospective sellers and buyers.
• Require MLS Participants working with a buyer to enter into a written agreement with the buyer prior to touring a home.

Reminders for Brokers and Agents

Brokers and Agents need to take affirmative steps to address the following regarding the settlement:

• Update Listing Agreements: Have an updated compliant listing agreement with the required disclosures ready before August 17th.
• Amend Existing Listing Agreements: Amend listing agreements in effect before August 17th that mention an MLS Co-op; otherwise, a separate disclosure can satisfy the requirements. You are not required to renegotiate an active listing signed prior to August 17 provided you have given the required disclosures to the Seller.
• Seller Discussions: Be prepared to discuss with sellers compensation and the options for offering co-op compensation or a seller concession to the buyer.
• Compensation Offers: Establish an effective method to publish offers of compensation or seller concessions on listings on your website and other communication channels off the MLS.

Listing brokers may advertise an offer of cooperative compensation in many ways off-MLS, including:

• On the listing on their own website.
• Signs and Sign Riders.
• Flyers,Brochures, or Print Media.
• Social Media Posts.
• Text, Email, Phone Calls.

*MLS may not be used, facilitate, or support any mechanism to offer compensation.

• Use Compensation Forms:  Florida Realtors® has created “Compensation Forms.” Seller concessions and compensation can be included in an offer submitted, provided the Buyer directs you to include those provisions in the sales contract.
• Buyer Agreements: Have a written compliant Buyer Broker Agreement ready before August 17th. All new buyer clients/customers will need to sign one before touring a home, which includes any virtual tour or a tour done by a buyer representative (i.e. family member.) A Broker can only accept and be paid the amount of compensation (from any source) set forth in the Buyer Broker Agreement. If any amount offered exceeds the amount listed in the Buyer Broker Agreement, you must get the Buyer’s consent in writing before you can accept it. Remember ECAR’s deadline is August 12th.
• Existing Buyer Rep Agreements: Review your existing agreements in effect before August 17th. Provided they do not include any prohibited practice or provision, you do not need to amend them; a separate disclosure can satisfy the requirement. Be sure to check how your compensation is addressed in the agreement. The buyer’s obligation must be “objectively ascertainable” and “not open-ended.”  NAR has stated it is not permissible to use a range or “Buyer Broker compensation shall be whatever amount Seller is offering to the Buyer.”
• Written Buyer Agreement Requirement: Be ready to explain this requirement to clients. A Buyer’s Broker Agreement is required when working with a Buyer and must be executed prior to touring a property.
• Compensation Conversation: Become comfortable discussing compensation. Be prepared to discuss with Buyers how and when you and the buyer can determine if a listing broker or seller is offering compensation or if a seller concession is advertised.
• Understand Your Value: Know how to communicate your value to consumers.

Florida Realtors has already released 4 new forms:

• Form 1: Compensation Agreement – Seller to Buyer’s Broker (CASB-1)
• Form 2: Compensation Agreement – Seller’s Broker to Buyer’s Broker (CABB-1)
• Form 3: Modification to Compensation Agreement – Seller to Buyer’s Broker (MCA-2)
• Form 4: Modification to Compensation Agreement – Seller’s Broker to Buyer’s Broker (MCA-1)

Florida Realtors just released the following Buyer Broker forms on 7/10/2024:

• Exclusive Buyer Brokerage Agreement, Consent to Transition to Transaction Broker
• Exclusive Buyer Brokerage Agreement, No Brokerage Relationship
• Exclusive Buyer Brokerage Agreement, Single Agent
• Exclusive Buyer Brokerage Agreement, Transaction Broker

Additional forms coming this month are:

• Amended Showing Agreement
• Amended Retainer Agreement
• Modification to Buyer Broker Agreement
• Release of amended Listing Agreements and several other forms. One of these forms will address how to handle listings and buyer broker agreements in effect on August 17 that do not have the required language for settlement compliance.

As always, our goal is to keep you well-informed andequipped to adapt to these upcoming adjustments. For more information, please visit emeraldcoastrealtors.com/NAR-SETTLEMENT or NAR’s direct link at facts.realtor.

Thank you for your attention to these important updates.

Sincerely,
Keith Wood
2024 President, The Emerald Coast Association of Realtors