Seven things you need to know to prepare for this big week in real estate

Many changes go into effect for REALTORS nationwide and for WMLAR members this week. Here are seven things you need to know to make sure you’re ready for what’s next. 

1. The offer of compensation fields will be gone Tuesday: The fields that have long been used to communicate offers of compensation will be gone beginning Tuesday. Historical offer of compensation data will also be unavailable for users. According to the NAR settlement, no offer of compensation language can appear in the MLS. 
2. Don’t try to sneak in an offer of compensation into the MLS: You cannot put offers of compensation in a ShowingTime or Sentrilock comment field, for example. You cannot put an offer of compensation in private or public remarks fields. The listing will be removed as it creates legal risk for the agent, the agent’s brokerage and the Association’s MLS.
3. If compensation can’t be in the MLS, how do I know what’s being offered? In addition to the revised agency agreements below, Michigan REALTORS also released the following forms to be used in the negotiation of compensation. Which forms to use and not use are individual Broker decisions. Compensation Agreement Between Brokers (MR Form) Buyers Broker Compensation Addendum (MR Form) READ MORE
4. Make sure you are using current forms: We all have forms squirrelled away on a hard drive somewhere that we go to when we are in a rush. Using outdated forms can be a legal issue as they may not comply with the NAR settlement terms. We know some brokerages have provided updated forms they prefer. Michigan REALTORS and the West Michigan forms group have provided forms, as well. WMLAR will be monitoring which forms are used and may require proper forms to be uploaded if they do not meet the criteria outlined in the settlement.
5. Get used to using written buyer agreements before home-showing appointments: A formal agreement must be used which have a specific and conspicuous disclosure of compensation; an amount that is not open-ended; terms that prohibit receiving compensation over an agreed amount; and language that states compensation and fees are negotiable and are not set by law. Note: You do not typically need to have a buyer agreement for an open house. Agency forms are below.
6. Seller concession fields will not be in the MLS as originally planned: A vote late last week by associations who are part of our MLS service provider, MichRIC, reversed an earlier decision to offer optional seller concession fields. The vote was a result of growing unease about the legal liability that could come with offering the fields, although they will be considered for future implementation. 
7. Sales contract that’s not executed? Get an addendum: If you have a fully executed sales contract (purchase agreement) prior to Aug. 17, you do not need to do anything. If you have a sales contract that is not executed by Aug. 17, get an addendum that meets the criteria outlined by NAR, and in particular states prominently that compensation is negotiable.