Two main changes take effect August 15, 2024:

1. All compensation fields removed from Space Coast Multiple Listing Service for ALL field types (Residential, Rental, Income, Land, Commercial).
2. Written agreements required when working with buyers, prior to touring property.

Have a Fully Executed Contract Not Closing Until After August 15?

Do This by End of Business Day Today!

If the sales contract is executed before the MLS policy change (August 15 for Space Coast MLS) the buyer broker should be able to rely upon the offer of compensation even if the closing occurs after the date of the policy change.

We are suggesting that our members print the listing sheet with the offer of compensation on August 14 for fully executed sales contracts.

I Do Not Have a Fully Executed Contract and the Compensation is Being Removed, What Do I Need to Do?

Do This By End of Business Day Today!

If the sales contract is NOT fully executed before August 15, the offer on the MLS will not be valid and buyers and buyer brokers may wish to protect themselves in writing with the listing broker or seller through a broker. This can be accomplished by using one of these Florida Realtors forms:

• Listing Broker to Buyer's Broker Compensation Agreement (Listing Broker is paying Buyer's Broker, with Seller Authorization) Historically, this is the way business is conducted.



• Seller to Buyer's Broker Compensation Agreement (Seller is paying Buyer's Broker, through Listing Broker).

If at the buyer's instruction, you put the offer of compensation is the sales and purchase contract, you are not a party to that contract. Only the Seller and Buyer are parties to the sales and purchase contract. To protect yourself use one of the listed compensation agreements above. Be sure to check with your Broker and office policy.

Have Active Listing Agreements?

(Prior to July 2024 updated forms)

TO DO: Provide Disclosure Form to Sellers or buyers if currently working with buyer agreements

Recommendation: Florida Realtors Compensation Disclosure Statement CDS-1

This disclosure should be given to the Buyer/Seller/Owner if the existing listing agreement or buyer agreement does not contain this disclosure. (Click here for preview)

This form is available in Form Simplicity and Transaction Desk

Know the Facts: Facts.Realtor #53

Required Written Buyer Agreements:

All MLS Participants (Brokers) and Subscribers (Agents) working with buyers will be required to have written buyer agreements prior to touring properties.

Check the Facts: NAR FAQ

#58 - #79 Written Agreements

#80 - #85 Transaction Brokerage

New ShowingTime Feature When Scheduling an Appointment:

On Thursday, August 15 when scheduling an appointment through ShowingTime a Buyer Written Agreement Requirement Reminder will appear.

What is Required in the Written Buyer Agreement?

1. A specific and conspicuous disclosure of the amount or rate of compensation the REALTOR will receive or how this amount will be determined, to the extent that the REALTOR will receive compensation from any source.
2. The amount of compensation in any manner that is objectively ascertainable and not open-ended.
3. A term that prohibits the REALTOR from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer and;
4. a conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.

Notes: a written buyer agreement cannot have a commission that is "buyer broker compensation shall be whatever amount the seller is offering to the buyer" or "between X and Y percent".

Importantly, NAR Policy will not dictate the amount of compensation agreed between buyers and buyer brokers (IE $0, X flat fee, X percent, X hourly rate).

Who is Entitled to See the Written Buyer Agreement?

The MLS will be responsible for enforcing the rule regarding written buyer agreements, much like the enforcement of listing agreements.

If it is reported that an agent is working with a buyer without a written buyer agreement, the MLS staff will contact the agent to request a copy of the agreement.

What if the listing agent refuses to show property if the buyer's broker doesn't show them the written buyer agreement?

Code of Ethics: Standard of Practice 3.10:

Participants have the duty to cooperate which is to share information on listed property and to make property available to other brokers for showing to prospective purchasers and tenants when it is in the best interest of their clients.

Standard of Practice 3-10 The duty to cooperate established in Article 3 relates to the obligation to share information on listed property, and to make property available to other brokers for showing to prospective purchasers/tenants when it is in the best interests of sellers/ landlords.

What Forms are Compliant Post NAR Settlement?

Always refer to your Broker and Brokerage Policy on which form(s) to use and who is authorized to sign them.

There is no mandatory form to use, some brokerages utilize their own forms, some brokerages utilize Florida Realtors forms. So long as all forms have the required components and mandatory disclosures.

All Florida Realtors Forms provide for all settlement compliant language and disclosures.

If you use or create your own forms, you are responsible to ensure your forms are compliant to the NAR Settlement terms.

What Do These Forms Mean and When Do I Use Them?

Written Agreements Prior to Touring Property:

Florida Realtors Forms:

• Property Pre-Touring Agreement = "Coffee Date"
• Showing Agreement = "Dating"
• Exclusve Buyer Brokerage Agreement = "In a relationship"

Compensation Agreements:

Florida Realtors Forms:

Scenario: The Listing Broker is providing the offer of compensation to the Buyer's Broker, with seller's authorization. (Number 10 a. on the Exclusive Right of Sale Listing Agreement Transaction Broker)

Form Recommendation: Compensation Agreement Seller's Broker to Buyer''s Broker Compensation Agreement

Scenario: The Seller is providing the offer of compensation to the Buyer's Broker, with seller's authorization, through the Listing Broker. (Number 10 b. on the Exclusive Right of Sale Listing Agreement Transaction Broker)

Form Recommendation: Compensation Agreement Seller to Buyer's Broker.

Sales and Purchase Contracts: There have been no updates to thiese form(s).

Reminder: As the REALTOR you are not a party to to the contract. The contract is between the seller and the buyer.

Scenario: At the instruction of your buyer, you write the Buyer's Broker compensation with the party paying the compensation, on the purchase contract.

Recommendation: Have an executed Seller to Buyer's Broker compensation form or Seller's Broker to Buyer's Broker compensation form, along with the language your buyer(s) instructed you to add in the purchase contract.

Always refer to your Broker and Brokerage Policy on which form(s) to use and who is authorized to sign them.

Other Property Types: Rentals, Income, Land, Commercial

Compensation fields will be removed for all property types, this includes Residential, Residential Lease, Residential Income, Land, and Commercial. 

Prior to touring residential properties you are required to have written buyer agreements. 

Residential property is considered not less than one nor more than four residential dwelling units. 

When working with clients and customers in all other property types you are not required to have a written buyer agreement, however, will want to make sure you use an agreement that stipulates in writing how much you as a REALTOR will be getting paid in closing of the real estate transaction. the Presentation Here

Fines for Non-Compliance:

If it is reported that an agent is working with a buyer without a written buyer agreement, the MLS staff will contact the agent to request a copy of the agreement which must be provided within 1 business day. If the agent cannot produce the agreement, the following penalties will apply:

• $250 if not provided within 1 business day*
• $500 (additional) if the written agreement is not provided within 5 business days*

The MLS will not maintain copies of written buyer agreements or information therein.

*Required attendance at a Space Coast MLS sponsored course on Rules and Regulations Violation Notices: Violation notices are always sent to the agent and the broker of record.

Join us for Network and a Nosh

Date: Wednesday, August 14

Time: 4:00 pm - 6:00 pm

Where: Pineda Inn Bar and Grill

Come join us for some good ol' fashion networking and a nosh (bite to eat) member mixer on Wednesday, August 14. Let's get together, relax, regroup, and bid farewell to the offers of compensation in the MLS.

Your first drink is on us.

REPLAY: Space Coast MLS Policy Changes Video

On Thursday, August 8 we hosted a ZOOM webinar reviewing the Space Coast MLS Policy Changes pursuant to the NAR Settlement. All changes to Space Coast MLS are effective August 15, 2024.

Florida Realtors Legal/Forms Updates: Rules and Tools for Space Coast Realtor Members

Did you miss the Legal/Forms Friday, August 2? You're in luck! Below find the presentation used from Florida Realtors and learn the rules and the tools to use to coduct business post NAR Settlement.View the Presentation Here

Marketing Assets for Written Buyer Agreements:

Resources for our members to share:

Marketing Assets for Homebuyers and Home Sellers:

Resources for our members to share:

Compensation is always negotiable and should always be negotiated between agents and the consumers they serve.