Space Coast MLS Policy Changes

Communications timeline

Below you will find our Communication Blitz Countdown.

This communication blitz will include links to imperative information as we send it to our membership from now until August 15th detailing the upcoming MLS Policy changes...

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Space Coast MLS Policy Changes Implemented Pursuant to the NAR Settlement

August 15, 2024

All mandatory changes to MLS policies, governing documents, practice changes, and implementation will take effect Thursday, August 15, 2024.

Two main changes due to the NAR Settlement that take effect August 15, 2024:

  1. Removal of Offers of Compensation in the MLS (all fields: Residential, Residential Lease, Residential Income, Land, and Commercial)
  2. Working with buyers: Required written buyer agreement in place prior to touring property.

View Official Notice of MLS Policy and Governing Documents Changes Here

Effective Thursday, August 15, 2024 and moving forward:

Remove Compensation icon

Removal of all compensation fields in the MLS:

  • All compensation fields will be removed from the Multiple Listing Service (MLS). You will not be permitted to communicate offers of compensation in any portion of the MLS including but not limited to: the narrative, private remarks, marketing remarks, showing services, and/or any product of the MLS. 
  • If an offer of compensation is communicated within the MLS or any of the ancillary products, the offer of communication will be removed immediately by the MLS department and you will be subject to the administrative fines as established in the Space Cost MLS Rules and Regulations. This includes but is not limited to inputting a link on the MLS directly to a listing broker's website which includes the an offer of compensation.
  • Offers of compensation are permissible, you will now communicate and facilitate those offers of compensation off the MLS.
  • Resources on Offers of Compensation: 

Video: How to communicate Offers of Compensation

Facts.realtor FAQ: Offers of Compensation #27 - #45

Written buyer agreement icon

Written Buyer Agreements:

  • MLS Participants (Brokers) and Subscribers (Agents) working with buyers will be required to have written buyer agreements prior to touring properties. 
  • Resources for Written Buyer Agreements:

More information on touring homes

Video: When you need a written buyer agreement

Written Buyer Agreements 101

Facts.realtor FAQ: Written Buyer Agreements #50 - #73

Download: Written_buyer_agreements_binder.pdf

Required Consumer Disclosures on Agreements icon

Disclose, Disclose, Disclose: Required consumer disclosures

All MLS Participants (Brokers) and Subscribers (Agents) must:

  1. Disclose to prospective sellers and buyers that broker compensation is not set by law and is fully negotiable. This must be included in conspicuous language as part of the listing agreement, buyer written agreement, and pre-closing documents (if any).
  2. Conspicuously disclose in writing to sellers and obtain the seller's authority for any payments or offer of payment that the listing Participant or seller will make to another Broker, Agent, or Representative (IE Real Estate Attorney) acting for buyers. This disclosure must include the amount or rate of any such payment and be made in writing in advance of any payment or agreement to pay.

New Form! Have Active Listing Agreements or Current Buyer Agreements? Use this:

  • 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)

Properties Under Contract / Being Negotiated Before August 15:

I have an executed contract before August 15, what happens to my offer of compensation that was on the MLS? 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. #36 on facts.realtor Q&A 

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



I don't have a fully executed contract before August 15, what happens to my offer of compensation that was on the MLS?

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 or by including the offer of compensation in the sales contract. . #36 on facts.realtor Q&A

How Can I Communicate the Offer of Compensation?

Offers of compensation are a great way to get the most exposure and bring the biggest pool of potential buyers to the property.

You are still able to communicate the offer of compensation by other means outside of the MLS, this could include:

  • On the listing brokers website
  • Signs and Sign Riders
  • Social Media
  • Text, Email and Phone Calls
  • Flyers

Removal of all compensation fields in the MLS:

  • All compensation fields will be removed from the Multiple Listing Service (MLS). You will not be permitted to communicate offers of compensation in any portion of the MLS including but not limited to: the narrative, private remarks, marketing remarks, showing services, and/or any product of the MLS. 
  • If an offer of compensation is communicated within the MLS or any of the ancillary products, the offer of communication will be removed immediately by the MLS department and you will be subject to the administrative fines as established in the Space Cost MLS Rules and Regulations. This includes but is not limited to inputting a link on the MLS directly to a listing broker's website which includes the an offer of compensation.
  • Offers of compensation are permissible, you will now communicate and facilitate those offers of compensation off the MLS.
  • Resources on Offers of Compensation: 

Video: How to communicate Offers of Compensation

Facts.realtor FAQ: Offers of Compensation #27 - #45

Fines for Non-Compliance of the Mandatory Policy Changes

Section 22.16 – Fine for Communication Offers of Compensation in the MLS:

If an offer of compensation is communicated within the MLS or any of the ancillary products, the offer of compensation will be removed immediately by the MLS department, and you will be subject to the administrative fines as established in the Space Cost MLS Rules and Regulations. This includes but is not limited to inputting a link on the MLS directly to a listing broker's website which includes an offer of compensation.

 

For a first violation, an administrative fine of $ 1,000.00 and required to attend the MLS sponsored 2-hour class of instructions on the MLS Rules and Regulations within 90 days of notification by the MLS for the first violation. If after 90 days, class has not been taken, an additional fine equal to that of the original fine will be assessed monthly until class is taken. A second violation will result in a $1,500.00 fine to each the MLS Subscriber (agent) and the MLS Participant (Broker).

 

Any subsequent violations by the same MLS Participant (Broker) acting as a listing agent, or MLS Subscriber (Agent) for listing of compensation in the MLS, the MLS Participant (Broker) and MLS Subscriber (Agent), will each be assessed an administrative fine of $3,000.00.

 

Section 22.17 – Fine for Failure to have a Written Buyer Agreement:

If it is reported that a Participant or Subscriber is working with a buyer, without a written buyer agreement, the Space Coast MLS department will contact the Participant/Subscriber to request a copy of the agreement, which must be provided within one business day.

 

Failure to provide a written buyer agreement when requested by MLS Staff, in 1 business day, will result in an administrative fine of $250. An additional charge of $500 will be assessed if not provided within 5 business days. Additionally, the buyer’s agent is required to attend the MLS sponsored 2-hour course of instruction on the MLS Rules and Regulations within 90 days of notification by the MLS. If after 90 days the class has not been taken, an additional fine equal to that of the original fine will be assessed monthly until the class is taken.

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Marketing Assets: Resources for Association Members

Marketing Assets: Resources for the Consumers

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NAR Settlement Update – Class Notice Info – as early as Aug 17

With just days left before the implementation of NAR's practice changes on August 17, be aware of "class notice," which could come as early as August 17, and how real estate professionals should answer questions from consumers should they arise.

What is Class Notice?

  • Class notice is a court-approved process through which members of the "Settlement Class"-home sellers who sold a home during the eligible date ranges, the home was sold on an MLS anywhere in the U.S. and paid a commission to a real estate brokerage in connection with the sale of the home-will be informed about NAR's proposed settlement of the Sitzer-Burnett case.
  • How will Notice be distributed?
  • Notices will be distributed by mail and electronically.
  • What does Class Notice Do?
  • Class notice informs class members of their rights, options, and deadlines to exercise those rights and options under the proposed settlement.
  • Is there a Video on Class Notice?
  • Yes, watch NAR's video on what class notice means for REALTORS® here.

Consumers receiving notices?

  • Consumers in your area may have already received a notice regarding separate settlements made by certain brokerage firms;
  • however, this notice will be new and address NAR's settlement.
  • Does NAR manage the class notice process?
  • No. It is important to underscore that NAR does not manage the class notice process.
  • NAR members may nonetheless receive questions from consumers.
  • What if a consumer asks about the class notice?
  • NAR members should direct consumers to the settlement website (www.RealEstateCommissionLitigation.com) where they can find relevant information.
  • You may also direct them to call the settlement administrator at 888-995-0207, for additional guidance. 
  • NAR members should refrain from further advising consumers on class notice.

Find out what “class notice” is, and what members can expect to see in their markets when class notice is sent about the proposed NAR settlement agreement. Learn more here

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Florida Realtors New & Updated Forms:

All forms are available on Form Simplicity.

Updated September 19, 2024

Draft new flood form:

Draft revised condo forms (relate to units located in condotels – condominiums that operate as hotels):

  • CR-6xx_AComprehensive Rider to the Residential Contract For Sale And Purchase  
  • CRSP-16xxx_FAddendum to Contract for Residential Sale and Purchase

According to the new flood disclosure law that starts on Oct. 1, sellers must disclose the following at or before the time the sales contract is signed:

  1. Whether they have filed a claim with their insurance provider relating to flood damage on the property.
  2. Whether they have received federal assistance for flood damage to the property.

For purposes of the new disclosure, “flooding” is defined as a general or temporary condition of partial or complete inundation of the property caused by any of the following:

  • The overflow of inland or tidal waters
  • The unusual and rapid accumulation of runoff or surface waters from any established water source
  • Sustained periods of standing water resulting from rainfall. Some examples of an established water source can be a river, a stream, or a drainage ditch.

Currently, Florida courts are split as to whether the tendency to flood is “readily observable.” This matters because if the tendency to flood is readily observable, then there is not a requirement this information be disclosed to a buyer of residential real property. If a buyer is not familiar with an area, they may have no clue the property tends to flood. This can be especially true when the flooding is seasonal.

The Federal Emergency Management Agency (FEMA) has the authority to designate properties as a “severe repetitive loss property.” This means that the home has flooded twice, with damage totaling the value of the property OR which have flooded four times with at least $5,000 of damage each time. There are roughly 45,000 of these properties in the United States, and about 3,100 are in Florida.

FEMA’s policy is to share past flood history with ONLY a property owner who holds an active flood insurance policy. This means that prospective buyers are unable to get this information prior to closing on the home.

Additionally, homeowners’ insurance policies tend to not cover damage resulting from floods. Buyers should always be encouraged to discuss their need to purchase separate flood insurance coverage with their insurance agent.

This new disclosure requirement will allow buyers to have crucial information prior to executing a sales contract.

Updated September 9, 2024

Florida Realtors has released residential contract riders for compensation and buyer credits (concessions). Both riders are now available for download in Form Simplicity.

  • Credit Related to Buyer’s Broker Compensation (CR-6 FF): This form may be used when a seller agrees to give a credit to the buyer in a transaction when the buyer has entered into a separate buyer’s brokerage agreement and elects to apply the credit towards buyer brokerage compensation. (Click here to preview)
  • Seller’s Agreement with Respect to Buyer’s Broker Compensation (CR-6 GG): This form may be used by the buyer to make the contract contingent on the seller or seller’s broker executing a separate compensation agreement with the buyer’s broker, with terms acceptable to the buyer. This form gives the buyer the ability to cancel the contract if no separate agreement is reached, or the terms of the separate agreement are unacceptable. (Click here to preview)

Sales Contracts

Released August 16, 2024

The changes to these frequently used forms remove offers of compensation from the MLS listing.

August 7: New! Compensation Disclosure Statement Form & Updated Modification to Listing Agreement Form 

Our legal team has revised one form and created a new form to ensure you're fully equipped:

New! Listing Agreements & Buyer Representation Videos:

Released July 30

We're also pleased to share the following instructional videos:

  • Listing Agreements-Aug 6 Webinar Juana Watkins, Florida Realtors® General Counsel and Vice President of Law & Policy, discusses changes to listing agreements to help you do business in a post-NAR settlement world.
  • Buyer Broker Agreements-July 30 Webinar Juana Watkins, Florida Realtors® General Counsel and Vice President of Law & Policy, discusses changes to buyer broker agreements.
  • Q&A Buyer Broker Agreements Session Recording: Juana Watkins, Florida Realtors® General Counsel and Vice President of Law & Policy, answers frequently asked questions about changes to buyer broker agreements.
  • New Compensation Forms-June 21 Webinar Florida Realtors has released four new forms — two compensation agreements and modification forms, for each compensation agreement. These new forms aim to provide maximum flexibility to compensation arrangements in the transaction and are designed to allow the participants in a real estate transaction to memorialize compensation arrangements.

Updated Listing Agreements

Listing agreements

Released August 6, 2024

Released July 30, 2024

  1. Exclusive Right of Sale Listing Agreement Consent to Transition to Transaction Broker (ERS-20tn)  (Click here to preview) (Click here for redline version)
  2. Exclusive Right of Sale Listing Agreement No Brokerage (ERS-17nr) (Click here to preview) (Click here for redline version)
  3. Exclusive Right of Sale Listing Agreement Transaction Broker (ERS-20tb) (Click here to preview) (Click here for redline version)
  4. Exclusive Right Of Sale Listing Agreement Single Agent (ERS-19sa)  (Click here to preview) (Click here for redline version)
  5. Exclusive Brokerage Listing Agreement (EBLA-12) (Click here to preview) (Click here for redline version)

You can access these updated forms on Form Simplicity. Redlines are available on the floridarealtors.org NAR Settlement page, along with other helpful information. 

Informative Buyer Representation Videos

We're also pleased to share two instructional videos: 

  1. July 29 Webinar on Buyer Broker Agreements
  2. Q&A Buyer Broker Agreements Session Recording: Florida Realtors General Counsel Juana Watkins answers your most frequently asked questions about the NAR Settlement requirements.

July 23: Florida Realtors released three forms – one revised and two new – in response to the NAR settlement agreement effective Aug. 17. All forms are available on Form Simplicity

As of July 31, 2024 these forms are uploaded in Space Coast MLS forms product Transaction Desk

July 9: Revised Buyer Broker Forms

As of July 18, 2024 these forms are uploaded in Space Coast MLS forms product Transaction Desk

June 21: New Forms 

As of June 27, 2024 these forms are uploaded in Space Coast MLS forms product Transaction Desk

  •         Form 1: Compensation Agreement - Seller to Buyer's Broker (CASB-1). This new form is a compensation arrangement in which the seller agrees to compensate the buyer's broker for procuring a buyer for a listed property. CLICK HERE TO PREVIEW CASB-1
  •         Form 2: Compensation Agreement - Seller's Broker to Buyer's Broker (CABB-1). This agreement memorializes any agreement between the brokers. The seller's broker, also known as the listing broker, to compensate the buyer's broker for the listed property. This agreement is property specific, and the arrangement between the brokers should relate to the listed property, not serve as a blanket agreement between the brokerages. CLICK HERE TO PREVIEW CABB-1
  •        Form 3: Modification to Compensation Agreement - Seller to Buyer's Broker. This form allows the parties to make changes to any material terms of the underlying compensation agreement between the seller and the buyer's broker. CLICK HERE TO PREVIEW MCA-2
  •         Form 4: Modification to Compensation Agreement - Seller's Broker to Buyer's Broker. CLICK HERE TO PREVIEW MCA-1

Resources: Please watch this 12 minute video regarding the new and updated forms

FR NOTE: Once all our forms vendors have uploaded/published the new forms, these forms will no longer be available on our website.

October 1:

  • Condo riders will change October 1, not July 1 as stated previously. The change is mandated by the statue and is effective for Oct 1 not July 1. 

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REALTOR Code of Ethics

Article 1: Protect/Promote the Interests of Clients

Article 3: Cooperate with other Brokers; Ascertain Compensation

Article 12: Be honest and Truthful in Communications

Mediation and Arbitration of commission disputes still applies (Article 17). Procuring cause disputes may still arise and be arbitrated.

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Settlement Class Notice and Timeline 

A class action notice will be sent out on or after August 17 to anyone who has sold a home that was listed on an MLS anywhere in the United States where commission was paid to any brokerage in connection with the sale of a home.

So long as you are a REALTOR member and fall under the settlement coverage terms by the date of class notice, you will be considered a “released party” under the settlement terms. You will not be covered by the settlement regardless of prior membership length, if you resign your membership, if your membership is terminated, or if your membership becomes inactive prior to the date of class notice (no earlier than August 17, 2024).  Class Action Website Here

 

Settlement Timeline:

March 15, 2024: Settlement agreement signed

March 22, 2024: NAR filed notice of the settlement and withdrew pending motions

April 23, 2024: Preliminary approval granted from the court.

June 18, 2024: opt in deadline

REALTOR owned MLSs

Brokerages with transactions of $2bil + and Non-Realtor owned MLSs

August 17, 2024:

Earliest date of class notice: so long as you are a REALTOR member by the date of class notice and fall under the settlement coverage terms you will be considered a “released party” under the settlement terms.

Deadline for Realtor owned MLSs to implement mandatory policy changes.

September: Anticipated motion in support of final approval

November 26, 2024: Hearing for final approval

Florida Realtors® released six forms translated into Spanish to help Spanish-speaking buyers better understand the recent practice changes, providing Realtors® with additional resources to further build customer trust. Click here for more information.

Información importante sobre el acuerdo de solución propuesto por NAR

Visite Facts.Realtor para acceder a los recursos e información más recientes sobre el acuerdo de solución propuesto.

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