August 17 Practice Changes

TVR MLS must implement the 9 NAR Policy Changes (click here - Executive Summary is page 1) by August 17th. This is the date established by the settlement that NAR mandated policy changes must take effect and the deadline for REALTOR® MLSs to implement policy changes pursuant to mandatory NAR policy.

TVR MLS has removed all compensation fields from our MLS as of Tuesday, August 6th to prepare for the August 17th deadline. This will apply to all listing types that appear in the MLS.

The settlement also requires MLS Participants working with a buyer to enter into a written agreement with the buyer prior to touring a home. Click here for a resource on Buyer Agreements provided by NAR.

Paragraph 58(vi) of the Settlement Agreement, requires that all REALTOR® MLS Participants working with a buyer enter into a written agreement before the buyer tours any home with the following:

  1. to the extent that such a REALTOR® or Participant will receive compensation from any source, the agreement must specify and conspicuously disclose the amount or rate of compensation it will receive or how this amount will be determined;
  2. the amount of compensation reflected must be objectively ascertainable and may not be open-ended (e.g., “buyer broker compensation shall be whatever amount the seller is offering to the buyer”); and
  3. such a REALTOR® or Participant may not receive compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer.

TVR MLS will “prohibit (#6 of the NAR Executive Summary) the use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers or other buyer representatives. Such use must result with the MLS terminating the Participant’s access to any MLS data and data feeds”. Furthermore, check with your legal counsel and/or your franchise on how your office will handle the communication aspect of this transition. We stress that you do not look for “workarounds” within the MLS system. We, as an MLS, cannot take on that liability. Additionally, new fines have been approved by the TVRMLS as stated below:

Fines:

  1. 1st offense: Warning with 24 hours to correct the violation.
  2. 2nd offense: $500 fine
  3. 3rd offense: $1000 fine and mandatory education
  4. 4th offense: $1500 fine and Board Hearing for possible suspension (Agent and Broker)

 

I would encourage you to continue to reference facts.realtor for the most up-to-date information and resources.

I appreciate your cooperation as we make this significant transition in our industry together. If you have any additional questions or concerns, please reach out to support@tvrmls.com or call/text the office at 423-477-0041.

Sincerely,

Monica Berry
Chief Executive Officer
TN/VA Regional (TVR) MLS
423.477.0041
support@tvrmls.com