New resource for upcoming changes
Settlement related form changes, effective Aug. 13
WMLAR has created a comprehensive new resource detailing the significant changes and new requirements related to the NAR settlement. This guide aims to provide guidance to help professionals navigate and adapt to the new regulations.
The main forms that have been updated are linked below for reference, but they are also included in the DotLoop and Zipform libraries.
Below are links to the recently released Michigan REALTORS® and West Michigan Regional Group forms:
- Michigan REALTORS Exclusive Listing Contract – Traditional Agency (Form B)
- Michigan REALTORS Exclusive Listing Contract – Designated Agency (Form BB)
- Michigan REALTORS Exclusive Buyer Agency Contract (Traditional Agency) (Form J)
- Michigan REALTORS Exclusive Buyer Agency Contract (Designated Agency) (Form JJ)
Additionally, the West Michigan Regional Group released a new form amending existing listing agreements to meet the new mandates. The discussion on this new form is included in the PDF referenced above.
Regional Group Amendment Striking Participation in MLS
Key points related to new practices to begin August 13:
- Check your listing for settlement compliance.
If a listing agreement says the commission offer is made through an MLS, it needs to be updated to state the offer to compensate will no longer be made through an MLS after August 13. If the agreement doesn’t mention MLS, no changes are needed. - Commissions prohibited in the MLS beginning August 13.
As of Aug 13, commission disclosures will not be allowed in the MLS in any and all forms including: public, agent, or supplemental remarks; video and/or photo content or labels. The fields will no longer appear, and historical data on commission offers will not be available. - Check sales contracts to ensure compliance.
If sales contract is entered into prior to Aug 17, which is the official date the NAR settlement takes effect, previously advertised commissions will still be valid and arbitrable. If the sales contract is entered into on Aug. 17 or after, the previously advertised offer of commission will no longer be valid. Sub-Agents of the Seller, Buyers Agents and Transaction Coordinators must negotiate commission in writing outside of the listing agreement/purchase agreement. Because the compensation fields will be removed from the MLS on Aug. 13, it may be advisable to use that as the trigger date for your changes.
If you have any questions, please contact:
Andrea Booker, RCE, Director of Education, MLS and Marketing
Email: andrea@wmlar.com PH: 616-846-6240 x105