The real estate landscape in California is undergoing some significant changes as the California Regional MLS (CRMLS) has made the decision to remove fields listing seller concessions from its platform. This move has implications for both listing agents and brokers in the industry.
- Changes in CRMLS Fields:
- In late May, CRMLS added a seller concessions-in-price data field to its platform, allowing professionals to indicate the amount a seller was willing to contribute towards a buyer’s transaction costs.
- Additionally, a field was included to specify whether the offer was a dollar amount or a percentage of the home’s sales price.
- Impetus for Change:
- The introduction of these fields was in response to the evolving business practices outlined in the National Association of Realtors’ recent nationwide commission lawsuit settlement agreement.
- Notably, the settlement bans offers of buyer broker compensation from MLS listings, prompting these adjustments by CRMLS.
- CEO Statement:
- Art Carter, the CEO of CRMLS, emphasized that these alterations were prompted by the modified forms released by the California Association of Realtors (CAR).
- The updated Residential Listing Agreement and Multiple Listing Service Addendum from CAR no longer feature offers of broker-to-broker compensation, aligning with the changing industry landscape.
- Updated Forms by CAR:
- CAR’s revised Residential Listing Agreement no longer includes references to seller concessions, with discussions now shifted to the MLS Addendum.
- The modified MLS Addendum now allows sellers to authorize their listing broker to advertise their willingness to consider concessions, with specific restrictions on the amount and how it can be communicated.
In conclusion, the real estate industry in California is seeing a shift in practices and disclosure requirements, with CRMLS and CAR leading the charge in implementing these changes. It is vital for agents and brokers to stay informed and adapt to these new regulations to ensure compliance and efficiency in their transactions.
