RMLS Legal Settlement Updates
This page is your guide to settlement-related changes that RMLS implemented on August 13, 2024, ahead of the August 17, 2024, compliance deadline. Some of the updates also stem from upcoming state law changes.
Updates
Below is a summary of the changes that were implemented on August 13, 2024. For a detailed accounting of these changes, please refer to the System Changes and Document Updates sections below.
Review the detailed settlement-related changes in these two categories:
System Changes
A comprehensive list of alterations to fields and functions in RMLSweb, our mobile app, and our API (affecting our IDX and VOW data feeds)
Click here to see the system changes.
Document Updates
Updates for key RMLS documents, ranging from our Rules and Regulations to our Listing Contracts
Click here to view the updated documents.
Required Subscriber Actions by 8/13: For any existing listing that is actively marketed on the MLS, the Sellerâs Agent must disclose or amend their agreement with their sellers to include a conspicuous disclosure that compensation is not set by law and is fully negotiable. Active agreements can either be amended or a separate disclosure can be provided to satisfy the requirement.
Additional Considerations:
This Listing Contract Addendum (#1250), or the E-Form version, can be used to make that amendment. It contains a conspicuous disclosure that compensation is not set by law and is fully negotiable. [UPDATED 7/30/24] A Commercial Lease variant addendum is now also available (as well as an E-Form version).
The Listing Contract Addendum can be executed anytime between now and 8/12/2024.
[UPDATED 8/1/24] The amount to be listed in the Listing Contract Addendum should reflect the total brokerage fee charged to the seller. The current Listing Contracts show TOTAL or COMBINED amounts and the addendum changes that to the SELLER’s BROKER only.
Note: Subscribers can work with their own firms and/or legal counsel to draft language as they see fit.
Video Resources
Explore our library of video to help you navigate the ongoing changes with NAR and the settlements.
This Navigating Challenges webinar is provided courtesy of Oregon REALTORS. A CE version of the class can be registered for here.
Additional Video Resources from NAR
Frequently Asked Questions
New Settlement FAQs added on August 16, 2024
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Can any web page I directly link to from RMLS display compensation information?
Per the terms of the settlement, RMLS listings cannot have an embedded link to a website which, with a single click on the MLS listing, would immediately display an offer of compensation. While RMLS will allow a reference to the existence of a website to be listed in the private remarks as long as it does not contain or indicate reference to BAC or compensation (for example, âPlease see my website for more informationâ is acceptable, but âSee my website for BAC informationâ is not) it is not allowable to have any link on RMLS directing to a page that immediately displays an offer of compensation.
From the NAR FAQ:Â Can an MLS allow MLS listings to link to a listing brokerâs contact information (e.g., telephone number, brokerâs preferred communication method)?
Yes, an MLS may provide links or other information that allows brokers to contact each other. However, this may not be used to circumvent the prohibitions of (a) making offers of compensation on an MLS to cooperating brokers or other buyer representatives (either directly or through buyers) or (b) disclosing on an MLS broker compensation or total brokerage compensation (i.e., the combined compensation to both listing brokers and cooperating brokers). For example, an MLS may not allow MLS listings to have an embedded link to a website which, with a single click on the MLS listing, would immediately display an offer of compensation. (Updated 7/31/2024)
If a broker sends a message regarding BAC within Aligned Showings, is the recipient allowed to answer?
Compensation and BAC are not allowable within Aligned Showings. We require that all communication of these topics be handled outside of Aligned Showings or RMLS platforms.
Can I include BAC information in a lockbox at a property?
This does not currently constitute a violation of RMLS rules.
New Settlement FAQs added on August 13, 2024
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Can I link to a listing brokerâs contact information? What if that contact information page has compensation information?
An MLS may not allow MLS listings to have an embedded link to a website which, with a single click on the MLS listing, would immediately display an offer of compensation
From the NAR FAQ: Can an MLS allow MLS listings to link to a listing brokerâs contact information (e.g., telephone number, brokerâs preferred communication method)?
Yes, an MLS may provide links or other information that allows brokers to contact each other. However, this may not be used to circumvent the prohibitions of (a) making offers of compensation on an MLS to cooperating brokers or other buyer representatives (either directly or through buyers) or (b) disclosing on an MLS broker compensation or total brokerage compensation (i.e., the combined compensation to both listing brokers and cooperating brokers). For example, an MLS may not allow MLS listings to have an embedded link to a website which, with a single click on the MLS listing, would immediately display an offer of compensation. (Updated 7/31/2024)
New Settlement FAQs added on July 30, 2024
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Can a website be listed in the private remarks?
[UPDATED 8/13/24] RMLS will allow a reference to the existence of a website to be listed as long as it does not contain or indicate reference to BAC or compensation. For example, âPlease see my website for more informationâ will be considered acceptable, but âSee my website for BAC informationâ will not. It’s important to note though that, even if the language used in the private remarks is acceptable, you cannot include any single links directly to a web page which contains compensation information.Â
From the NAR FAQ: Can an MLS allow MLS listings to link to a listing brokerâs contact information (e.g., telephone number, brokerâs preferred communication method)?
Yes, an MLS may provide links or other information that allows brokers to contact each other. However, this may not be used to circumvent the prohibitions of (a) making offers of compensation on an MLS to cooperating brokers or other buyer representatives (either directly or through buyers) or (b) disclosing on an MLS broker compensation or total brokerage compensation (i.e., the combined compensation to both listing brokers and cooperating brokers). For example, an MLS may not allow MLS listings to have an embedded link to a website which, with a single click on the MLS listing, would immediately display an offer of compensation. (Updated 7/31/2024)
If you have any concerns about the specific language, please reach out to helpdesk@rmls.com.
Can I indicate concessions are available?
This is technically allowed. Though the settlement language may make room for offers of concession on the MLS (âso long as such concessions are not limited to or conditioned on the retention of or payment to a cooperating broker, buyer broker, or other buyer representativeâ according to NAR) the spirit of the agreement is to prevent MLSs from playing a role in compensation. The risk of having participants use concessions as a proxy for compensation, thus violating the settlement terms, is still deemed to be high and not in the spirit of the agreement.
Do addendums need to be filled out for Pending listings?
No, the addendums are for Active listings and are not required for Pending listings. If the listing switches back to Active before 8/13, then an addendum would be needed.
For my Pending listings, do I need to make a compensation disclosure?
Yes. NAR recently put out this document to assist with those disclosures.
Are the Listing Contract addendums available on forms provider sites?
Yes, we are working to make those available on forms provider sites. Both the Listing Contract addendum and the Commercial Lease variant are available now on SkySlope and DocuSign.Â
To find these documents on the forms provider sites, please search for these terms in the RMLS libraries:
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Notice of Legal Settlement Terms and Listing Contract Addendum (Oregon and Washington)
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Notice of Legal Settlement Terms and Listing Contract Addendum (Commercial Lease)
[UPDATE 8/6] The addendums are scheduled for release by zipForms on 8/13. They will be listed as:
- RMLS & RMLSW Notice of Legal Settlement Terms and LCA
After the Listing Contract addendum is signed, do I need to adjust anything on RMLSweb?
[UPDATED 8/1/24] The amount to be listed in the Listing Contract Addendum should reflect the total brokerage fee charged to the seller. No associated field in RMLSweb needs to be changed due to signing the addendum. The BAC field on RMLSweb is still a required field (until 8/13/24) so it can remain unchanged – it cannot be left blank but can be âzeroâ (as an option). As of 8/13/2024, the BAC field will be removed from the MLS.
What if clients don't want to sign the addendum?
RMLS cannot advise on this matter. We can only say that for active listing contracts signed before 8/13/24, for any existing listing that is actively marketed on the MLS, the Sellerâs Agent must disclose or amend their agreement with their sellers to include a conspicuous disclosure that compensation is not set by law and is fully negotiable. Active agreements can either be amended or a separate disclosure can be provided to satisfy the requirement.
How will open houses work for buyer representative agreements?
If you are operating on behalf of the seller, no agreement is needed. If you are operating on behalf of a buyer, then a written buyer-broker agreement would need to be in place before attending an open house.
Is any action needed for In-Progress Listings as of 8/13/24?
Yes. For any In-Progress Listings after the 8/13/24 changes (approximately at 8:00 AM), subscribers will need to click the Contract tab on the lower left of their Listing Load screen – the 8/13 changes (removal of certain fields, etc.) will then be visbile to those listings.
New Settlement FAQs added on July 23, 2024
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Will there be a new form to modify current contracts to comply with new disclosure requirements?
Yes, an addendum (Listing Contact Addendum or E-Form version) is now available that contains language covering the disclosure requirement. All listing contracts established before August 13, 2024, can use this addendum to provide the necessary disclosure information. As of August 13, the new listing contracts should be in use.
Can I indicate on the listing that compensation amounts are available on my website?
How can I find listings after the search criteria changes?
When do I start using the new listing contracts?
Between now and August 12, 2024, please use the current listing contracts. An addendum is now available (Listing Contact Addendum or E-Form version) for all current contracts that provides the disclosure language required for contracts created before August 13. As of August 13, you can use the new Listing Contracts.
Why are certain fields no longer searchable?
Part of the policy changes stemming from the NAR settlement are a requirement that MLSs and their subscribers âmust 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.â
âAs for filtering based on listing firm or listing agent, just like the inability of Participants or Subscribers to withhold listings based on those criteria in IDX and VOW displays, MLSs cannot enable that same ability within other MLS functions that provide listing data to consumers.â
âAn MLS must take appropriate action if it becomes aware that a Participant or Subscriber acts inconsistently with this MLS policy.â (quotes are taken from the NAR FAQ)
To comply with this policy requirement and avoid any prohibited filtering or steering, the ability to search by identifiable information such Email, Name, ID, Phone, and Broker Code for sellers and co-sellerâs will be removed.
How will RMLS monitor the requirement for written buyer-broker contracts before touring properties?
What kind of education is RMLS planning around these changes?
We will have a new class starting in late July and a recorded webinar to serve as an evergreen option. We are also scheduling in-person presentations, forums, and QA sessions on a per-request basis. Contact training@rmls.com if you have questions or would like to schedule a training.
Can compensation be noted in Aligned Showings?
No. Aligned Showings is owned by a collection of MLSs, all of which will follow the terms of the settlement, so having BAC on Aligned Showings is not allowable.
Can subscribers use a non-RMLS listing contract that lists BAC?
Yes. But the contract terms surrounding BAC cannot be marketed/listed on any RMLS platform.
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Why is RMLS making these changes?
These changes are being made in order to comply with the terms of the NAR legal settlement, and in some cases new state law requirements such as Oregon HB 4058 (goes into effect January 1, 2025) and Washington SB 5191 (went into effect January 1, 2024). After careful consideration, our Board of Directors approved opting into the settlement terms.
What changes are being made to the RMLS system?
Field Removals: The following fields will be removed from RMLSweb, the RMLS Mobile app, and our API (data feeds):
- BAC Amount and BAC Type (for RES, MUL, COM, LND, and NCIR property types)
- Total Commission Differs Y/N (for RES, MUL, COM, and LND property types)
- Cooperating Agent Commission Amount and Cooperating Agent Commission Type (for LSE property types)
- Commission Differs If Leased In-House Y/N (for LSE property types)
Field Search Removal: The following fields within the RMLS system will no longer be searchable:
- Seller’s Agent Email, Name, and ID
- Seller’s Office Broker Code, Name, and Phone
- Co-Seller’s Agent E-mail, Name, and ID
- Co-Seller’s Office Broker Code
Input sheets and the New Construction Information Record are also being updated.
When is RMLS making these changes?
Our current plan is to implement the changes on August 13, 2024, ahead of the August 17 compliance deadline.
What documents are being updated?
The RMLS Rules and Regulations, Internet Policy, Privacy Policy, Oregon Listing Contract, Washington Listing Contract, and Commercial Lease Listing Contract are the key documents being updated. Redline versions documenting all the changes are available in addition to âfinalâ versions. In addition, the Residential, Lots and Land, Multi Family, Commercial/Industrial, and Commercial Lease input forms will be updated, along with the New Construction Information Record form.Â
Why is the ability to search certain fields being removed?
Part of the policy changes stemming from the NAR settlement are a requirement that MLSs and their subscribers âmust 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.â
âAs for filtering based on listing firm or listing agent, just like the inability of Participants or Subscribers to withhold listings based on those criteria in IDX and VOW displays, MLSs cannot enable that same ability within other MLS functions that provide listing data to consumers.âÂ
âAn MLS must take appropriate action if it becomes aware that a Participant or Subscriber acts inconsistently with this MLS policy.â (quotes are taken from the NAR FAQ)
To comply with this policy requirement and avoid any prohibited filtering or steering, the ability to search by identifiable information such Email, Name, ID, Phone, and Broker Code for sellers and co-sellerâs will be removed.
Is compensation or the Buyerâs Agent Commission (BAC) allowed to appear or be negotiated on any RMLS platform or document?
Can I post my BAC or negotiate compensation in the private remarks, uploaded PDFs, tour videos, property photos, or anywhere else on any RMLS platform?
Can RMLS start a new website to advertise compensation?
No. The terms of the settlement and legal expectation are clear that MLSs will have no role in compensation. There are no loopholes to this requirement.
Can I add my BAC to each individual listing on my own website that receives and posts a data feed from RMLS?
Yes, but only for listings for your own brokerage. If the listing is not from your brokerage, no offer of compensation can be added on any RMLS data feed.
Where can I list and negotiate my BAC?
Agents are free to post and negotiate compensation independently of the MLS. For example, Listing Agents can post the compensation the seller is offering on their own IDX site or in their marketing materials, including flyers, signs, and emails.
Are there penalties if I post compensation anywhere on an RMLS platform or document?
Yes. Violators may be subject to a fine of up to $5,000. The Specifying Compensation on MLS Listings violation (page 14 of the updated RMLS Rules and Regulations) states: âFor making an offer of compensation in MLS and/or using RMLS data or data feeds to directly or indirectly establish a platform to make offers of compensation from multiple brokers, a fine of up to Five Thousand ($5,000), in an amount to be determined by the RMLS Rules and Regulations Committee.â
Are commissions still allowed to be negotiated?
Do I have to alter my existing listings before the compliance deadline?
Existing listings on RMLSweb will no longer display the BAC when the settlement-related changes are made on August 13, 2024. For any existing listing that is actively marketed on the MLS, the Sellerâs Agent must disclose or amend their agreement with their sellers. An addendum for listing contracts generated through August 12, 2024, that contains the requisite disclosure language is now available (Listing Contact Addendum or E-Form version)
From NAR: âShould active listing or buyer agreementsâmeaning there is no accepted offerâentered into before the MLS policy changes go into effect on August 17, 2024 be amended to include a conspicuous disclosure that compensation is not set by law and is fully negotiable?
MLS Participants must make this disclosure. Active agreements can either be amended or a separate disclosure can be provided to satisfy the requirement.â
Will historical compensation/BAC data be available after the change?
With various Sellerâs Agent and Co-Sellerâs Agent fields no longer being searchable, how can I find a specific listing?
If a subscriber is aware of another subscriberâs particular listing but canât locate it on RMLSweb, please contact the agent directly to attain the MLS number and/or address to search by.
Are written agreements between Buyerâs Agents and buyers or prospective buyers now a requirement?
Yes, these are now a legal requirement as part of law changes related to Oregon HB 4058 (goes into effect January 1, 2025) and Washington SB 5191 (went into effect January 1, 2024). These are noted in the new Section 7.1 of the RMLS Rules & Regulations. Violations of this requirement may result in fines up to $5,000.
Where can I get the buyer written agreements?
Oregon Real Estate Forms, Oregon RealtorÂź Forms, and NWMLS provide written buyer agreements.
Will RMLS police buyer agreements?
RMLS will investigate individual buyer agreements when we receive an inquiry or complaint that the rule was violated. The role of RMLS is to help ensure that some form of agreement is in place.
Are written agreements between Buyerâs Agents and buyers or prospective buyers required before touring a residential home?
Yes, written agreements are required before any property tours. [UPDATE 9/11/24] The need for a written buyer agrement applies for all property types.
What type of tours need written agreements?
Do I have to be a member of NAR to be an RMLS subscriber? Do all members of my brokerage have to be RMLS subscribers?
RMLS rules require that all subscribers have active NAR membership and there are no current plans for there to be a change in that requirement. This requirement does mean that all agents in a brokerage, including the Principal Broker, must be NAR members to be RMLS subscribers.
NAR Settlement FAQs
NAR has provided an extensive frequently asked questions page to address key settlement questions. Please visit the NAR FAQs page to find answers to questions such as the ones in the below dropdown.
FAQs you can find on NAR's website (Last Updated July 23, 2024)
Questions?
Â
Send an email to communications@rmls.com