For the most part, the repeals remove blanket rules set at the national level, instead giving local associations and MLSs the power to make decisions based upon what is best for their members.
If the recommendations are approved by the board, some of the changes would include allowing local MLSs full discretion on deciding who they grant MLS access to, whether or not they accept open listings and their level of cooperation with other MLSs and associations. Through this, it is clear that NAR is pushing more and more policy enforcement down to the local level, something that was seen earlier this year in its decision to allow local MLSs and associations the freedom to choose how the Multiple Listing Options for Sellers (MLOS) policy would apply in their individual markets.
Making the Code commission lawsuit settlement compliant
When it comes to NAR’s code of ethics, the primary focus of the proposed changes is updating the code so it better aligns with the business practice changes mandated in NAR’s commission lawsuit settlement agreement.
The recommendations include the elimination of the requirement to disclose variable commissions because it no longer makes sense as there is no longer a unilateral offer of compensation made via the MLS, requiring agents to disclose referral fees they may profit from when recommending products or services, requiring agents to disclose to clients when they are accepting compensation from more than one party, but noting that there is no obligation for an agent to disclose the contents of a buyer broker agreement with a seller, and also requiring agents to disclose to a clients when they lack familiarity or knowledge of a property type or any area that the client is searching for or in.
These policy recommendations and others will be voted on in the coming days.
