Real Estate News


New Home Listings In The MLS Need To Conform To Compensation Rules


by Bob Hunt
Thursday, October 04, 2012

Over the years MLS members have had an on-again, off-again relationship with new home builders.

Although not universal, it is common for new home builders to exhibit a bit of a who-needs-you? attitude to MLS members when the market for their products has heated up. They don't list their homes in the MLS, and, frequently, they don't even offer to pay a referral or commission to an agent who brings a buyer to their project.

Then, when the market slows, builders are liable to find a renewed interest in all those MLS agents who have a lot more exposure to potential home buyers than the builders do. They may make it known that they will cooperate with (i.e. pay) agents who bring prospects to their development; and they may even join the MLS to give that exposure to their inventory.

When builders use the MLS they must, of course, abide by MLS rules. Unfortunately, this does not always happen. In particular, they are likely to run afoul of the MLS prohibitions against conditional offers of compensation. (I am not saying that these are intentional violations going on here. They may just be the result of ignorance and/or habit.)

Here are some current examples from the MLS that I belong to: "Agent must accompany buyer on first visit to qualify for commission." "Realtor MUST accompany and register client on client's first visit to qualify for the referral fee." "3% Broker Co-op -- Broker must accompany buyer on their first visit and register their client with sales representative."

The rule that those and similar remarks violate is "The amount of compensation offered through the MLS may not contain any provision that varies the amount of compensation offered based on conditions precedent or subsequent or on any performance, activity, or event." This comes from the NAR model rules for Multiple Listing Services. Thus, for example, an agent can't (legitimately) say, "no co-op commission will be paid if the buyer first saw the property at my open house."

MLS rules do provide for some exceptions to the prohibition against conditional offers of compensation. Short sales are among those exceptions. New home sales are not.

Thanks to my colleague and former president of the Southern California Multiple Listing Service, David Silver-Westrick, for pointing out the recent and increasing re-occurrences of this issue.



Copyright© 2013 Realty Times®. All Rights Reserved

One Bal Harbour #904 One Bal Harbour #904NEW - Absolutely Beautiful 3 Bedroom, 3.5 Bath flow-thru oceanfront floorplan. Turn Key and decorate...
As Seen In Forbes
Updated: Wednesday, May 22, 2013

How Renovations Impact Your Ho...
When planning a major renovation, the last thing homeowners think about is how it may impact th...

Reasons To Live In Texas...
Texas is the second-largest state in the country and is home to a vast array of landscapes, cul...

More Real estate News
Copyright ©2013 - Realty Times®
All Rights Reserved.

Linda G Properties $2.99m Acqualina Resort Condominium Sale
  Linda "G" Gustafson and ONE Sotheby's International Realty Miami...

Linda G Properties Ocean House $6.9m Sale
  Linda "G" Gustafson and ONE Sotheby's International Realty Miami...

ONE Bal Harbour #306 Listing Reduced $75k
A Linda G Properties & ONE Sotheby's International Realty Miami Beach EXCLUSIVE...

NEW LISTING - ONE Bal Harbour 206
A Linda G Properties & ONE Sotheby's International Realty Miami Beach EXCLUSIVE...

Majestic Tower Penthouse Featured in Housewives of New York SOLD
  Majestic Tower in Bal Harbour Penthouse Featured on Bravo's "The Housewives...

NEW LISTING - ONE Bal Harbour 1703
  A Linda G Properties & ONE Sotheby's International Realty Miami Beach...

NEW LISTING - ONE Bal Harbour 1207
A Linda G Properties & ONE Sotheby's International Realty Miami Beach EXCLUSIVE...

NEW LISTING - ONE Bal Harbour 306
A Linda G Properties & ONE Sotheby's International Realty Miami Beach EXCLUSIVE...

Regalia Miami Construction Progress September 2012
Good Day to Everyone! It is another beautiful day in Sunny Isles Beach. Just wanted to...

Regalia Miami Construction Progress August 2012
  Good Day to Everyone! It is another sunny day in Sunny Isles Beach. Just wanted...

South Florida Real Estate Market Recovery Report
  Is A Strong & Healthy Real Estate Market Back In South Florida? - It Certainly...

Ray of Hope - Fannie Mae National Housing Survey Results
  Another Ray Of Hope as reflected in a recent Fannie Mae National Housing Survey.   There...

Porsche Design Tower Miami - A Sneak Peak at the Porsche Condominium
  Porsche Design Tower Miami – My Personal Tour into the Future!   My exclusive peak...

Bellini Williams Island Construction Progress July
  As we are nearing the end of July, construction at the Bellini Williams Island...

St Regis Bal Harbour Resort and Condominium Record Sale
South Florida Luxury Oceanfront Real Estate Continues to Grow while Values Increase!   An...

ONE Bal Harbour 1608 EXCLUSIVE Listing
    Dedicated to the extraordinary. The exceptional. The Unique.   Linda...

Trump Hollywood Condominium Developer Units are SOLD OUT.
Trump Hollywood Is Sold Out! Record Sales in 16 months leads to Sell Out at the oceanfront Trump...

Turnberry Ocean Colony 1402 EXCLUSIVE Listing
    Dedicated to the extraordinary. The exceptional. The Unique.   Linda...

Linda G Properties Honored by Trump Hollywood for Sales Accomplishments
Linda "G" of Linda G Properties & ONE Sotheby's Int'l Realty Miami Beach Honored...

Miami Beach Food And Wine Festival Schedule and Recommendations from Linda G!
It is that time of year again, when South Beach is buzzing with activity. Last weekend’s...

Closed! Residence 1904 in One Bal Harbour Sells for $2.4 Million
    Linda G Properties Closes on an EXCLUSIVELY LISTED One Bal Harbour Luxury...

Incredible Sunny Isles Condominium, Porsche Design Tower new Preconstruction Oceanfront Sunny Isles Beach Condominium
  Germany Based Porsche Design Group and local luxury developer Gil Dezer joined forces...

Featured Penthouse at Turnberry Ocean Colony
  It is with great pleasure that Linda G Properties offers Penthouse 3704 at Turnberry...

Press Releases


FOR IMMEDIATE RELEASE - 12/6/11
SOLD! Linda G Properties of ONE Sotheby's International Realty Miami Beach - ONE Bal Harbour...

FOR IMMEDIATE RELEASE - 9/20/11
SOLD! Linda G Properties of ONE Sotheby's International Realty Miami Beach - ONE Bal Harbour...

FOR IMMEDIATE RELEASE - 8/26/11
SOLD! Linda G Properties of ONE Sotheby's...

FOR IMMEDIATE RELEASE - 7/7/11
SOLD! Linda G Properties of ONE Sotheby's International Realty Miami Beach - ONE Bal Harbour...

FOR IMMEDIATE RELEASE - 6/30/11
SOLD! Linda G Properties of ONE Sotheby's International Realty Miami Beach - Trump Palace...

FOR IMMEDIATE RELEASE - 5/10/11
SOLD! Linda G Properties & ONE Sotheby's International Realty Miami Beach Listing -...

FOR IMMEDIATE RELEASE - 3/23/11
SOLD! Linda G Properties & ONE Sotheby's International Realty Miami Beach Listing -...

FOR IMMEDIATE RELEASE - 3/15/11
SOLD! Linda G Properties & ONE Sotheby's International Realty Miami Beach Listing -...

FOR IMMEDIATE RELEASE - 3/10/11
Just SOLD! Linda G Properties & ONE Sotheby's International Realty Miami Beach Listing...

FOR IMMEDIATE RELEASE - 12/20/10
SOLD! Linda G Properties & ONE Sotheby's International Realty Miami Beach Listing -...

FOR IMMEDIATE RELEASE - 12/14/10
ONE BAL HARBOUR OPEN HOUSE - LINDA “G” OPEN HOUSE THE TALK OF THE TOWN! Linda...

FOR IMMEDIATE RELEASE - 10/11/10
    Sunny Isles Beach, FL  October 11, 2010 – Linda “G”...

FOR IMMEDIATE RELEASE - 10/5/10
Linda “G” Gustafson with ONE Sotheby’s International Realty Miami Beach...

FOR IMMEDIATE RELEASE - 8/31/10
  Sunny Isles Beach, FL  August 31, 2010 – Linda “G” proudly...

FOR IMMEDIATE RELEASE - 3/16/10
Top Producing WCI Communities & Prudential Florida Realty Waterfront Specialist is now...

FOR IMMEDIATE RELEASE - 1/01/09
Linda “G” lists and shows only the finest waterfront properties in South Florida....

FOR IMMEDIATE RELEASE - 3/08/08
PALM BEACH, Fla. – Friday March 7, 2008 at The Mar-a-Lago Club, Palm Beach.   Linda...

FOR IMMEDIATE RELEASE - 2/22/06
WATERFRONT LUXURY CONDOMINIUM SALES SPECIALIST ‘LINDA G’   AVENTURA,...

FOR IMMEDIATE RELEASE - 1/15/06
WCI TOP PRODUCER LINDA ‘G’ JOINS FLORIDA PRUDENTIAL REALTY IN AVENTURA   AVENTURA...