NAR Settlement Information & Updates

Page last updated 12/6/24 – Scroll down to see changes and additions where noted

NAR’s class-action settlement was granted approval on November 26, 2024.

Effective August 14th in MCRTC MLS:

Offers of compensation are now prohibited on the MLS. Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make homeownership and the benefits of professional representation more accessible to buyers, including first-time homebuyers, increase homeownership opportunities for historically underserved groups, and benefit sellers by expanding the potential buyer pool.

Agents working with a buyer must enter into a written agreement before touring a home. NAR policy does not dictate terms of buyer agreements, but NAR has created resources to assist with implementation of the settlement terms-such as tips on clarity and emphasizing consumer choice-including their “Written Buyer Agreements 101” resource, available here.

  1. All compensation fields have been removed from MCRTC MLS
  2. Compensation is not permitted anywhere in the MLS, including data fields, photos, virtual tours and supplements.
  3. Compensation cannot be sent through any MLS-provided service, including but not limited to ShowingTime or Supra. All offers of compensation must be communicated outside of the MLS and our 3rd party vendors.
  4. The following words will trigger a possible violation in our system: Compensation, commission, bonus, payment, %, $, and numbers, buyer broker, buyer agent.
  5. Updated 10/4/24: Appropriate seller concessions in compliance with NAR’s settlement guidelines can be included in the Public Remarks field. Remember, a concession is NOT a commission.
  6. Website Links: In Broker Remarks you may have a link for your brokerage website, but the link CANNOT go to a specific page offering compensation for that property. The link with offer of compensation must be at least 2 clicks away from the MLS.
  7. Buyer Broker Agreements are required before “touring” a home, either in-person or virtually. The MLS has the right to audit these documents and request them from an agent/broker per the NAR agreement.
    Scroll down to the “Consumer Guides” section below for more information and resources to use with your customers.

Agent Guides

Added 12/6/24

MCRTC MLS Updates

Listing Input Forms for Matrix

Consumer Guides

Updated 12/6/24

New & Updated Forms

Updated 9/10/24

Compensation Riders

Credit Related to Buyers 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 Buyers 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

Available on Form Simplicity today, these frequently used forms have been revised to remove reference to offers of compensation in the MLS. 

NEW:  Compensation Agreement-Owner/Listing Broker to Tenant’s Broker (CAOT-1):  This form may be used when an owner or listing broker wishes to engage in negotiations to compensate a Tenant’s broker. (Click here to preview)

Revised 8/7/24

Listing agreements

Released August 6, 2024

Modification to Listing Agreement (MLA-6) (Click here to preview) (Click here for redline version)

Released July 30, 2024

Exclusive Right of Sale Listing Agreement Consent to Transition to Transaction Broker (ERS-20tn). This is a listing agreement in which the seller grants the listing broker the sole right to list the property, establishes the broker is acting as a single agent for the seller, and includes the consent to transition to a transaction brokerage agency relationship. (Click here to preview) (Click here for redline version)

Exclusive Right of Sale Listing Agreement No Brokerage (ERS-17nr). This is a listing agreement in which the seller grants the listing broker the sole right to list the property and establishes the broker has a no-brokerage relationship with the seller. (Click here to preview) (Click here for redline version)

Exclusive Right of Sale Listing Agreement Transaction Broker (ERS-20tb). This is a listing agreement in which the seller grants the listing broker the sole right to list the property and establishes that the broker has a transaction broker agency relationship with the seller. (Click here to preview) (Click here for redline version)

Exclusive Right Of Sale Listing Agreement Single Agent (ERS-19sa). This is a listing agreement in which the seller grants the listing broker the sole right to list the property and establishes the broker is acting as a single agent for the seller. (Click here to preview) (Click here for redline version)

Exclusive Brokerage Listing Agreement (EBLA-12). This is a listing agreement in which the seller grants the listing broker the sole right to list the property, but reserves to the seller the right to sell the property herself/himself without owing compensation. (Click here to preview) (Click here for redline version)

Compensation forms

Released August 6, 2024

  • 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)

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.

  • 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.
  • 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.
  • 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.
  • Modification to Compensation Agreement – Seller’s Broker to Buyer’s Broker.
Revised buyer broker forms

Released July 9, 2024

The Exclusive Buyer Brokerage Agreements have been revised and simplified to improve their usability and bring them into compliance with the National Association of Realtors settlement agreement.

Showing agreements

Released July 23, 2024

Property Pre-Touring Agreement (PPTA-1)

There has been high demand from members for a tool that is concise, but satisfies the elements of the settlement. This demand gave rise to the development of the Property Pre-Touring Agreement.

This form provides a way to provide the necessary disclosures of the settlement to a consumer prior to showing property. The form also provides fundamental information regarding broker compensation.

There is educational value in this form regarding compensation but the form does not contain many of the typical contractual provisions that address the rights and responsibilities of the parties, including how compensation disputes are addressed. The form is likely most effective when used at the start of the relationship between the parties and members may want to consider graduating to a more well-

defined agreement between the parties as the relationship between the broker and consumer unfolds.

Please take the time to ensure that you select the agreement that best meets the needs of your relationship with the customer. The Form Simplicity library offers many options ranging from the simple to the more well-defined.

Modification to Exclusive Buyer Broker Agreement/Showing Agreement (MEBBSA-1)

This newly created form allows the consumer and broker to modify the material terms of the Exclusive Buyer Broker Agreement or the Showing Agreement. It is important that the parties state the date of the agreement that the parties seek to modify. There is no place for the parties to enter a property address because the original agreement may or may not be property specific. If the parties would like to make the modification property

specific, they may do so by adding the property address to the other terms section of the modification form. All necessary disclosures to comply with the NAR settlement have been added to the modification form.

Revised Showing Agreement (SA-4). Click here to see redline, which shows changes required to bring this form in compliance with the terms of the NAR Settlement Agreement.

More information: https://www.floridarealtors.org/law-ethics/nar-settlement-sitzer-burnett-lawsuit 

Video Resources

Updated 8/7/24

Florida Realtors has created these instructional videos from recordings of recent webinars:

  • 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.

NARs “Window to the Law” videos address various questions:

Find these videos and others at https://www.nar.realtor/the-facts/window-to-the-law-settlement-facts-videos

How to address ‘Class Action Notice’ Questions

In the Sitzer-Burnett case, the Settlement Class includes home sellers who sold a home within the eligible date ranges, had their property listed on an MLS in the U.S., and paid a commission to a real estate brokerage. These sellers will receive a class notice informing them about their rights, options, and deadlines related to the proposed settlement.

Realtors® may still receive inquiries from consumers. NAR members should refrain from further advising consumers on class notice.

Instead, direct consumers to the settlement website at www.RealEstateCommissionLitigation.com for more information or have them contact the settlement administrator at 888-995-0207 for further assistance.

You can also watch NAR’s video explaining what class notice means for Realtors here.

Resources from Florida Realtors

  • Free webinars
  • Still have questions? Contact Florida Realtors Legal Hotline at 407-438-1409

Resources from NAR