NAR proposes MLS rule repeals, updates to code of ethics

"For the most part, the repeals remove blanket rules set at the national level, instead giving local associations and MLSs the power to make decisions based upon what is best for their members. If the recommendations are approved by the board, some of the changes would include allowing local MLSs full discretion on deciding who they grant MLS access to, whether or not they accept open listings and their level of cooperation with other MLSs and associations."

"When it comes to NAR's code of ethics, the primary focus of the proposed changes is updating the code so it better aligns with the business practice changes mandated in NAR's commission lawsuit settlement agreement. The recommendations include the elimination of the requirement to disclose variable commissions because it no longer makes sense as there is no longer a unilateral offer of compensation made via the MLS,"

"requiring agents to disclose referral fees they may profit from when recommending products or services, requiring agents to disclose to clients when they are accepting compensation from more than one party, but noting that there is no obligation for an agent to disclose the contents of a buyer broker agreement with a seller, and also requiring agents to disclose to a clients when they lack familiarity or knowledge of a property type or any area that the client is searching for or in."

NAR is removing national blanket rules and delegating policy decisions to local associations and MLSs, allowing local discretion on MLS access, open listings, and cooperation with other MLSs and associations. Local MLSs previously gained flexibility over Multiple Listing Options for Sellers (MLOS) earlier this year. Proposed Code of Ethics changes aim to align ethical requirements with the commission lawsuit settlement. Recommendations include eliminating the requirement to disclose variable commissions, requiring disclosure of referral fees and instances of accepting compensation from multiple parties, and requiring agents to disclose when they lack familiarity with a property type or area.

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