Removal of compensation fields - Tomorrow, August 1st!

Below are key talking points regarding changes to the MLS model,

new contracts, and resources to help you navigate the process.

NAVIGATE CHANGES

The Vail Multi-List Service will remove the commission fields in the MLS (Flex System) on August 1, 2024, as part of our compliance with the NAR Settlement. This change is being implemented ahead of the required date of August 17th to ensure compliance with the settlement terms, safeguard the MLS from future risks, and continue providing a centralized marketplace for listings in the Vail Valley.

The VMLS Board of Directors made this decision after careful consideration of our organizational needs. Although we considered the timelines and needs of other entities and stakeholders, we had to operate independently. Our timeline was developed as soon as the settlement was announced on March 15th, with the original implementation date set for July 17th.

The Division of Real Estate recently announced new contracts for use starting August 15th. This creates a gap between the elimination of the compensation fields on August 1st and the release of the new contracts on August 15th.

VMLS is committed to assisting you throughout this process but is limited in the guidance and advice we can provide, as Colorado contracts are governed by the Division of Real Estate. We cannot guide or dictate individual business practices due to anti-trust laws.

To help you navigate this timing gap, the Colorado Association of REALTORS® (CAR) General Counsel, Scott Peterson, has created a 10-minute video titled"Mind the Gap" to assist you during this period. VMLS will promote this video to our participants and subscribers over the next few weeks. 

CAR also hosted a webinar on new contracts last Monday. The recording can be found here. VBR is hosting several classes over the next few months to support these industry shifts. 

• August 7: "10 Legal Things for REALTORS®" with Scott Peterson 
• August 14: Listing Contracts Class 
• September 17: Contract Changes 2024 
• September 18: Brave New Co-op World 

VMLS is committed to supporting our participants and subscribers through these changes. This has been a challenging time for the industry, but Realtors® are resilient and will continue to thrive as valuable advisors to buyers and sellers. You are encouraged to reach out to your legal counsel or take advantage of the CAR Legal Hotline that is available for legal information at no cost to Realtors®.

NAR & CAR RESOURCES

Upcoming CAR webinar on new contracts

In Scott Peterson's previous webinar he addressed the 2024 Contract modifications related to the MLS Practice Changes ONLY. In Version 2, he will be reviewing ALL THE OTHER CONTRACT CHANGES that will be mandatory beginning August 15, 2024, and included in the NEW Colorado Real Estate Commission’s Contract to Buy and Sell – Residential. 

“All the OTHER Contract Changes!”

Monday, August 5

10:30 a.m. to Noon

REGISTER

NAR webinars on best practices

The National Association of REALTORS® is providing Realtors® with three webinars, available to members ONLY, on learning.realtor about navigating the upcoming practice changes. These are scheduled for:

• August 1st at 1:00 p.m. MT (REGISTER HERE)

• August 5th at 10:00 a.m. MT (REGISTER HERE)

• August 15th at 2:00 p.m. MT (REGISTER HERE)

Registration links will be available on facts.realtor.

NEW VMLS BYLAWS & RULES

Compensation fields removal and new regulations

As of August 1, 2024, all compensation fields will be removed from the MLS. Compensation fields will not be available on any current listings, regardless of status, nor for data entry on any new listings after August 1st.

There is no action if you have a listing in the VMLS Flex system, this removal will take place automatically.

New VMLS Bylaws and Rules and Regulations are linked below - and will be effective upon publication. A summary of all the changes to the MLS rules is also linked below.

CONTRACT & FORMS CHANGES

NEW Colorado contracts and forms

The Colorado Real Estate Commission (“CREC”) approved changes to the Commission approved Contracts and Forms.

Please use the new Contracts and Forms after August 15, 2024. The redline versions are available now to review for mandatory use beginning August 15th.

Visit the Real Estate Contract and Forms website in the coming weeks to review the changes and to better understand how your practice may be affected.

BUYER AGREEMENT

NAR Practice Changes

Beginning August 15, 2024, a buyer representative “working with” a buyer will be required to enter into a written agreement with the buyer prior to touring a home, including both in-person and live virtual tours, unless inconsistent with state law. This resource provides information about what provisions must be included in the written agreement pursuant to the NAR settlement. The guide is available on facts.realtor.

Brokers should talk to their attorney and Managing Broker about the license law requirements and office policy. Please note that MLS rules are different and separate from licensing law.  Click here for guidance from the Colorado Division of Real Estate on Written Buyer Agreements and Disclosures to Buyer in the state of Colorado.

HELPFUL RESOURCES

Watch NAR’s latest “Window to the Law” video - the first in a special series on MLS practice changes - which has information on how the new rules will impact broker compensation and how to communicate offers of compensation off the MLS.