Can you correctly answer these 8 true/false questions about the recent practice changes?

MLS participants must ensure that when working with a buyer, a written exclusive buyer broker representation agreement between the buyer and buyer’s broker is entered into before a buyer tours residential real property.

FALSE – While it is true that MLS participants working with a buyer must ensure that written buyer broker representation agreements are entered into before a buyer tours residential real property, that agreement does NOT need to be exclusive in nature. In fact, the Arizona REALTORS® will now publish a new form titled Buyer Broker Agreement to Show Property. This agreement satisfies the practice change mandated by the Sitzer-Burnett settlement, but is non-exclusive.

Buyer broker representation agreements must include a statement that MLS participants may not receive compensation that exceeds the amount or rate agreed upon with the buyer from any source.

TRUE – The buyer broker cannot receive compensation from any source in the transaction that exceeds the rate or amount set forth in the buyer broker representation agreement and this must be expressed in the agreement. The AAR forms meet this requirement.

In stating the rate of compensation on the buyer broker representation agreement, the parties may agree to write in “buyer broker compensation shall be whatever amount the seller is offering by way of a co-broke.”

FALSE – The amount of compensation must be objectively ascertainable and may not be open-ended.

Listing agents sitting their open house must have each prospective buyer that enters the home sign a buyer broker representation agreement.

FALSE – A listing agent holding an open house is not acting on the potential buyer’s behalf. Therefore, the rule does not apply unless the listing agent later begins working with the buyer.

Brokerages may use MLS data through a feed or export to identify on their website the amount of cooperating compensation other brokerages are offering in conjunction with their listings.

FALSE – The NAR settlement prohibits “the use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers or other buyer representatives.”

The REALTOR® Code of Ethics, Standard of Practice 16-16, prohibits the negotiation of buyer broker compensation in a buyer’s purchase offer?

FALSE – A buyer can ask their buyer broker to make it a term of their offer that the seller pay certain compensation to the buyer broker.

Disputes about an offer of compensation between brokers can still be mediated and arbitrated by a REALTOR® Association.

TRUE – As has always been the case, REALTOR® Associations can mediate and arbitrate commission disputes between its members.

Pursuant to the Sitzer-Burnett settlement, NAR agreed to put in place a new rule prohibiting offers of compensation in the MLS.

TRUE – By way of the settlement agreement, NAR agreed to prohibit offers of compensation in the MLS between listing brokers/sellers to buyer brokers or other buyer representatives.