Rules Updates

Rules Updates

Posted on 01. Aug, 2024 by in Miscellaneous

Changes to NJMLS Rules & Regulations – Effective August 12, 2024

Section 1 – Listing Procedures (REVISED)

…The Multiple Listing Service shall accept exclusive right to sell listing contracts and exclusive agency listing contracts which make it possible for the listing broker to cooperate with other Participants of the Multiple Listing Service acting as subagents, buyer agents, or any other non-agency relationship as permitted by law.

Section 5 – Information Specifying the Compensation on Each Listing Filed with the Service

REMOVED; REPLACED WITH…

Section 5 – No Compensation Specified on MLS Listings (NEW)

Participants, Subscribers, or their sellers may not make offers of compensation to buyer brokers and other buyer representatives in the MLS.

Use of MLS data or data feeds to directly or indirectly establish or maintain a platform to make offers of compensation from multiple brokers to buyer brokers or other buyer representatives is prohibited and must result in the MLS terminating that Participant’s access to any MLS data and data feeds.

Failure to comply will result in a $1,000 dollar fine.

Section 5.0.1 – Disclosure of Compensation (NEW)

MLS Participants and Subscribers must:

  1. Disclose to prospective sellers and buyers that broker compensation is not set by law and is fully negotiable. This must be included in conspicuous language as part of any listing agreement, buyer written agreement, and pre-closing disclosure documents (if any).
  2. Conspicuously disclose in writing to sellers, and obtain the seller’s authority, for any payments or offer of payment that the listing Participant or seller will make to another broker, agent, or other representative (e.g. real estate attorney) acting for buyers. This disclosure must include the amount or rate of any such payment and be made in writing in advance of any payment or agreement to pay.

Section 5.0.2 – Written Buyer Agreement (NEW)

Unless it is inconsistent with state or federal law or regulation, all MLS Participants working with a buyer must enter into a written agreement with the buyer prior to touring a home.  The written agreement must include:

  1. a specific and conspicuous disclosure of the amount or rate of compensation the Participant will receive or how this amount will be determined, to the extent that the Participant will receive compensation from any source;
  2. the amount of compensation in a manner that is objectivity ascertainable and not open-ended.
  3. a term that prohibits the Participant from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and
  4. a conspicuous statement that broker fees, and commissions are not set by law and are fully negotiable.

The Multiple Listing Service reserves the right to request a copy of the buyer agreement. If NJMLS requests submission of buyer agreement, it must be submitted to NJMLS within 2 business days, or a $250 fine will be issued.

Section 5.3 – Dual or Variable Rate Commission Arrangements

REMOVED

Section 5.4 – Display of Listing Broker’s Offer of Compensation

REMOVED

Section 5.5 – Prohibition on Filtering out Listings (Revised)

MLS Participants and Subscribers must not, and MLSs must not enable the ability to, filter out or restrict MLS listings that are communicated to customers or clients based on the existence or level of compensation offered to the cooperating broker or the name of a brokerage or agent.