We know change is not easy, but HAR strives to provide members with resources to navigate through the recent MLS rule changes. We know you may have questions. Here are the answers to the seven most frequently asked questions by members.
Can commission information be put in the agent remarks?
No. Under the settlement, offers of compensation cannot be communicated through the MLS. This includes attachments and all comments. Any mention of compensation in the MLS (which has been against the rules for years outside of the compensation fields) will be an automatic fine of $500 and the violating language will be immediately removed from the listing. If there are three violations within a 12-month period, the fine will be doubled for the third and subsequent violations. However, you can include information on a flyer, rider, social media and anywhere outside of the MLS.
Are written agreements needed for Open Houses?
An agent hosting an Open House (whether the Listing Agent or someone on your team) does not need to obtain a signed, written agreement prior to the consumer touring the home because they are working for the Seller in this instance. In the case of a hosting agent who is not the Listing Agent or on the Listing Agent’s team, they would only need to have a signed, written agreement if they take that lead and then show the consumer another home.
Do the new rules impact leases?
The terms of the settlement do not apply to leases or commercial properties, so an agent showing a lease to a consumer is NOT required to have a signed, written agreement in place first. It would still be a smart idea to have a conversation with the client about how the agent will be compensated and have the Buyer/Tenant Representation Agreement signed. The field for offers of compensation will no longer be allowed in the MLS, so an agent working with a renter would need to contact the property manager/owner/leasing agent to find out what, if any, compensation is being offered.
Will agents be able to view archived compensation information?
All mentions of compensation, either current offers or those from closed transactions, have been removed from the MLS as of August 16, 2024.
Can information about concessions to buyers be included in the agent remarks?
In addition to the newly added field “Seller May Contribute to Buyer Expenses Up To $___” that allows you to express a fixed dollar amount that is highlighted on HAR.com, you will be able to write about concessions to buyers in the agent remarks so long as you do not make any reference to compensation or commission to the cooperating brokerage.
Who will be responsible for enforcing the written agreements and ensuring all parties follow the new practice changes?
The MLS will be responsible for enforcing the rule regarding written agreements, similar to how the MLS enforces other existing rules. If a violation is reported of the requirement of having a signed, written agreement in place prior to a showing, the Buyer’s Agent will be asked to provide a copy of the agreement with a date prior to the date of the showing. If it is determined that a signed, written agreement was not in place as required, there will be an automatic fine of $500 issued. If an issued fine is not paid, an MLS subscriber would have their MLS access suspended.
How is HAR making sure consumers have accurate information about the rule changes?
HAR has been doing extensive media outreach. We have sent Media Fact Sheets to all local media outlets in English and Spanish multiple times as things were updated along the way. HAR Chair Thomas Mouton has been doing multiple media interviews about the rule changes. Some of his interviews include KHOU 11’s Great Day Houston, Fox 26, ABC 13, ABC 13, Houston Chronicle, and Community Impact just to name a few. HAR board member Rick Treviño was interviewed about the changes in Spanish for Univision 45. We previously ran a column in the Houston Chronicle about the upcoming changes and had an op-ed in the Houston Business Journal. We are also continuing to run an HAR print and online ad in the Houston Chronicle to attempt to educate consumers on these new changes that are occurring.
We have also posted on all HAR.com consumer-facing (and member-facing) social media channels (Facebook, Instagram, X, LinkedIn and YouTube) with informational content about the changes. We have a reach of more than 100,000 people across those channels.
Lastly, and probably most powerfully, we have had the Reality of Real Estate campaign prominently displayed on the homepage of HAR.com, which has six million visitors every month (who are obviously interested in real estate), since April. We also have the REALTOR® side of the campaign available through the Members Only Portal that provides lots of resources for members to educate their prospects and clients.
You may find our extensive list of FAQs at www.har.com/settlement.
