Rules and Policy Changes - Q&A

Q: What are the main changes to the SDMLS Rules and Policies in August 2024?

A: The main changes include:

• Elimination of Compensation Information: Removal of compensation fields and any mention of compensation, commission, or bonuses from MLS listings.
• Prohibition on Compensation Offers: No direct or indirect offers of compensation between listing and buyer brokers within or outside the MLS.
• Mandatory Buyer Broker Agreements: Requirement for written buyer broker agreements before property showings, including specific compensation details.
• Enhanced Compensation Disclosures: Clear disclosures to sellers, prospective sellers, and buyers that broker compensation is negotiable.

Q: Why were these changes made?

A: The changes were primarily driven by the NAR Executive Summary and a settlement agreement, aiming to enhance transparency and consumer choice in real estate transactions.

Q: How should seller-offered concessions be communicated now?

A: Seller-offered concessions should be mentioned in the Confidential Remarks field with the instruction to contact the listing agent for details.

Q: What are the consequences of violating these new rules?

A: Violations can result in penalties, including fines (e.g., Up to $1,500 for mentioning compensation in listings) and even termination of MLS access for severe breaches.

Q: Have any terms been changed in the rules?

A: Yes, terms like "Commission" and "Compensation" have been removed where applicable to align with the new policies.

Q: Where can I find the detailed changes in the rules?

A: Specific sections, including 1, 2, 7.12, 8.3, 8.4, 8.5, and 11.16, have been revised or added. Please review the full policy document for complete details.

Q: What specific data fields were removed from SDMLS listings?

A: The following data input fields will be removed from ALL SDMLS property classes:

• CBB% (Comp. to Buyers Broker %)
• CBB$ (Comp. to Buyers Broker $)
• CVR (Variable Commission)
• CBB% Contract Length
• CBB Paid

Q: What specific actions are now prohibited?

A: The following actions are no longer permitted:

• Offering compensation to buyer brokers in the MLS.
• Using external platforms or tools to make compensation offers.
• Creating platforms using MLS data for compensation offers.
• Filtering or restricting MLS listings based on compensation or brokerage/agent information.
• Mentioning compensation, commission, or bonuses in listing remarks.
• Displaying offers of compensation on IDX websites or VOWs (with limited exceptions).