Window to the Law: Understanding New Rules on Offers of Compensation

Window to the Law: Understanding New Rules on Offers of Compensation

May 23, 2024
Light Theme Light Dark Theme Dark


Beginning August 17, 2024, offers of cooperative compensation will not be allowed in an MLS listing. Find out how new rules affect offers of compensation and how offers may be communicated, and be prepared for the practice changes.

Window to the Law: Understanding New Rules on Offers of Compensation - Transcript

In this video, I will address questions about how NAR’s March 15th proposed settlement agreement affects offers of compensation.

Offers of compensation will continue to be an option for consumers to pursue off-MLS through consultation and negotiation with real estate professionals.  However, effective August 17, 2024, the MLS can no longer be used to communicate offers of compensation, and where there is an offer of compensation made  off-MLS, there will be no policy requiring that such offers be blanket, unilateral and unconditional.

Instead, once an MLS participant obtains a seller’s approval to make an offer, the offer of compensation can be shared through other common marketing vehicles, such as flyers, signs, emails, and other communication mechanisms off of the MLS. 

For example, a broker can show offers of compensation for their listings on their website display.  However, they must not display offers of compensation for other broker’s listings on their website display if it relies upon any MLS data or data feeds.  

Sellers also continue to have the choice to offer buyer concessions and these concessions can be communicated on the MLS subject to their MLS’s local rules and provided that the concessions are not conditioned on the use of, or payment to, a buyer broker.  

Buyers can also ask their buyer broker to make it a term of an offer to purchase that the seller pay certain compensation to the buyer broker.  That said, keep in mind that Standard of Practice 16-16 prohibits a REALTOR® from attempting to modify the terms of a listing agreement since that’s a contractual matter between the listing broker and the seller.  Article 1 of the Code of Ethics requires that REALTORS® must always serve in their client’s best interest.  So, a buyer broker must not delay or withhold delivery of a buyer’s offer and should never act on their own to negotiate a buyer broker’s compensation.  But the seller and the listing broker can independently choose to amend their agreement or take other action they deem appropriate.  

Lastly, the practice changes under the settlement will require buyers and buyer brokers to enter into a written agreement before the buyer tours a home and establish in writing any agreement for compensation for buyer broker’s services.

For the most up-to-date and accurate information about the settlement, please go to

Additional Resources

NAR Settlement FAQs

Get answers about NAR’s settlement, including key terms, who is covered, practice changes, and NAR operations.

Summary of MLS Policy

Changes MLS policies and model MLS governing documents have been reviewed and updated. Download details of all the changes.

Window to the Law is a monthly video series that provides valuable risk management tips and information to help real estate professionals navigate legal issues facing the real estate industry.
From the advocacy efforts to technology advances and updates on commercial industry trends, the topics in this series all relate to what’s happening in commercial real estate now and what trends are on the horizon.
These webinars and videos are an extension of the New AE Orientation, intended to provide ongoing learning on association management resources and programs to newly appointed AEs.
NAR’s new video series elevating the conversation around the issues relevant to you and what you do. Hear how your peers are putting real estate programs into practice and making an impact in their communities and businesses.
The hunt is about so much more than the house. Home buying hiccups lead to tough decisions. Guided by the expertise of a REALTOR®, First-Time Buyer puts the real in real estate.
YouTube Play Button Icon

NAR Videos on YouTube

NAR offers additional topics online covering legislation, events, industry news and guides for both NAR members and the public. Visit NAR on YouTube

National Association of REALTORS®

25.6K subscribers

Open YouTube


1.82K subscribers

Open YouTube

REALTOR® Magazine

3.96K subscribers

Open YouTube

NAR Meetings

1.85K subscribers

Open YouTube

Realtors Property Resource® (RPR)

13.4K subscribers

Open YouTube


1.46K subscribers

Open YouTube

First-Time Buyer

3.7K subscribers

Open YouTube

That’s Who We R (playlist)

Open YouTube