Video: Florida Realtors® Legal Team explains Code of Ethics changes
NAR has reached an agreement with the U.S. Department of Justice to make changes to the Code of Ethics and MLS Policies. If you missed our special webinar with members of Florida Realtors® Legal Team, here's your chance to catch up on the changes.
Full Details on NAR & DOJ Agreement
NAR is making these changes to address questions raised by the DOJ, and even though NAR disagrees with the DOJ’s characterization of rules and policies, by reaching this agreement NAR will be able to remain focused on supporting our members as they preserve, protect and advance the American dream of homeownership.
Although the exact language is still being finalized, most of the changes seek to more explicitly state what is already the spirit and intent of NAR’s Code of Ethics and MLS Policies regarding providing information about commissions and MLS participation.
What to Expect
To explain the expected outcome from these changes, NAR's 2021 President, Charlie Oppler, filmed a short video & included a summary below.
Summary of Outcomes
In accordance with the MLS system’s long-standing focus on creating an efficient, transparent marketplace for home buyers and sellers, the amount of compensation offered to buyers’ agents for each MLS listing will be made publicly available. Publicly accessible MLS data feeds will include offers of compensation, and buyers’ agents will have an affirmative obligation to provide such information to their clients for homes of interest.
Relatedly, the rule changes re-affirm that MLSs and brokerages, as always, must provide consumers all properties that fit their criteria regardless of compensation offered or the name of the listing brokerage.
While NAR has long encouraged buyers’ agents to explain how they expect to be paid, typically through offers of cooperative compensation from sellers’ agents, there will be a rule that more definitively states that buyers’ agents cannot represent that their services are free to clients.
Finally, with the seller’s prior approval, a licensed real estate agent will have access to the lockboxes of properties listed on an MLS even if the agent does not subscribe to the MLS.
What Happens Next
NAR will work with the DOJ to agree on exact rule changes within 45 days, then the Board of Directors will have to approve the new rules. The Court overseeing the settlement must formally approve the agreement, at which point we anticipate that the new rules will take effect. NAR will keep members apprised of official rule changes as more details become available.
In entering this agreement with the DOJ, NAR admits no liability, wrongdoing or truth of any allegations by the DOJ. The agreement does not subject NAR to any fines or any payments.
Source: National Association of Realtors®