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❉ NAR Transparency Rules Mean MLS Changes

MLS
Posted on March 4, 2022

Two new National Association of REALTORS® (NAR) multiple listing services (MLS) policies to increase transparency for consumers will mean changes for MLS users.

The NAR Board of Directors made these policies changes during their November 2021 meeting in San Diego.  Bay East announced the policies in the January 31, 2022 edition of the Bay East Insider email newsletter and implemented changes to the MLS on March 1, 2022.

Here are summaries of the policies and the related MLS changes:

Prohibition on filtering listings by compensation amount

New NAR policy:MLS Participants and Subscribers must not, and MLSs must not enable the ability to, filter out or restrict MLS listings that are searchable by and displayed to consumers based on the level of compensation offered to the cooperating broker or the name of a brokerage or agent.

According to NAR, this policy is in response to recent developments in real estate brokerage services, evolving broker business models, and the evolution of online marketing and listing searches.

To comply with this new NAR requirement to disclose Buyer Agent compensation public-facing MLS websites, agent and brokerage fields within the MLS have been temporarily disabled and any saved searches with these criteria have been removed. 

Bay East is working with its MLS vendor on an alternative for MLS participants and subscribers to search using these fields while also complying with the NAR policy.

Bay East hopes to enable the following search criteria as soon as possible:

  • Comp to Selling Office
  • Comp type
  • Co-list agent DRE num
  • Co agent email
  • Co agent fax
  • Entry agt ID
  • Entry Agent First Name
  • Entry Agent Last Name
  • Entry Agent License ID
  • List Agent DRE Num
  • Listing Agent
  • Listing Agt email
  • Listing Agt Fax
  • Listing Broker DRE Number
  • Listing Office

Buyer Agency Compensation Disclosure

New NAR Policy: MLSs must include the listing broker’s offer of compensation for each active listing displayed on its consumer-facing website(s) and in MLS data feeds provided to participants and subscribers and must permit MLS participants or subscribers to share such information through IDX and VOW displays or through any other form or format provided to clients and consumers. The information about the offer of compensation must be accompanied by a disclaimer stating that the offer is made only to participants of the MLS where the listing is filed.

According to NAR, disclosure of the offer of compensation to buyer agents (including non-agency relationships defined by state law) will increase transparency for the clients and consumers working with MLS participants and subscribers in a real estate transaction.

Bay East has enabled the Buyer Agent Compensation fields along with this disclaimer within the IDX and VOW fields. 

Disclaimer: “The offer of compensation is made only to participants of the MLS where the listing is filed or where the listing is shared with other MLSs as part of a data-share agreement that extends the offer of compensation.”  

MLS subscribers who want to display the information within their consumer-facing websites, should contact their IDX Vendor or whoever integrates data within their consumer-facing website. 

The “Find a Home” page on the www.bayeast.org  website has also been updated with Buyer Agents Compensation / Disclaimer information. 

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