As we rapidly approach the implementation of the industry settlement all Realtors are making changes to business practices when representing buyers and sellers.  Under the new MLS rules, applicable to all MLS subscribers and participants, compensation may no longer be offered from listing brokers to cooperation brokers via the MLS system.  Although we are no longer allowed to exchange compensation via the MLS the listing broker or seller is allowed to offer compensation to the cooperating broker.

Buyers need representation and Realtors are now required to enter into a written buyer representation agreement BEFORE they show property to a buyer.  Florida Realtors has released compensation agreements, buyer broker agreements and other tools to assist you in the process.  These agreements may be accessed from floridarealtors.org or by logging into Form Simplicity.

It is crucial that all Realtors communicate with their buyers and establish an understanding and agreement on how they will receive compensation. Under the new rules you are precluded from being paid more than the the amount your establish in your written buyer representation agreement. In the event you conclude the amount agreed to is more or less than you are able to earn it is necessary to amend your agreement with your buyer.

One thing that has not changed is the need for a Realtor to be the procuring cause to earn a commission. In the event of a dispute         REALTORS® are bound to arbitrate or mediate pursuant to Article 17 of the Code of Ethics, and for MLS Participants who are non-REALTORS® they are bound to arbitrate or mediate pursuant to their MLS’s local rules. 

Change is complicated and the new rules are sometimes confusing. Florida Realtors has extensive resources for your reference at floridarealtors.org/settlement or all Realtors may contact the Florida Realtors legal hotline at 407 438 1409 Monday thru Friday from 9:00 am- 4:45 pm.