Change is Good for Consumers!
By Jim Palmer Jr.

This year we have seen turbulent times and while property sales have been good for most brokers, the real estate industry in general has not gone unscathed.  The MLS (Multiple Listing Service) method of delivery for real estate to consumers has always had critics and this year some of that condemnation came to a head.  Some of the harshest critics accuse the MLS of being a monopoly and not having consumer’s best interest in mind.  Though most reasonable folks think that sentiment is baseless, this type of public scrutiny has caused Realtors® to become progressively more transparent and more responsive to changing times. Realtors® have long sought to ensure fair and competitive real estate markets for home buyers and sellers, and we believe our Code of Ethics and other policies already empower consumers with information.

A recent lawsuit against NAR (National Association of Realtors®) by the DOJ (Department of Justice) concerning this topic was settled before it went to trial. Even though NAR disagrees with the DOJ’s characterization of our rules and policies, and NAR admits no liability, wrongdoing or truth of any allegations made by the DOJ, NAR agreed to make changes to its rules to address the questions raised by the DOJ. We view these changes as added clarification by more explicitly stating what is already the spirit and intent of the Code of Ethics and MLS policies regarding providing information about commissions and MLS participation.

A couple of the changes agreed to in the settlement include assuring that publicly accessible MLS data feeds will include offers of compensation, and buyer’s brokers will have an affirmative obligation to provide such information to their clients.  Buyer’s brokers will no longer be allowed to represent that their services are free to clients, even though a seller has agreed to pay the commission. Additionally, rule changes will reaffirm and strengthen existing policy that brokers must provide consumers with information about all properties that fit their criteria regardless of the amount of compensation offered or the name of the listing brokerage.

The new rules will also require (with seller’s prior written approval) that licensed real estate agents who are non-Realtors® must be allowed access to MLS lockboxes of properties listed on an MLS, even if the agent does not subscribe to the MLS.  Details of this specific change are still being worked out, but the spirit of the rule change is to facilitate ultimate transparency for consumers as they search for homes or property.