Listing Brokerages Keep MLS Compensation Updated ASAP
Listing brokerages should keep MLS offered compensation updated ASAP.
Listing brokerages should not try to change MLS offered compensation once an offer is submitted.
Listing brokerages should ensure their listing agreements cover compensation.
Bonuses, boats, cars, trips, etc. – listing brokerage should have law firm escrow these "seller controlled" items to reduce the risk the seller reneges and listing brokerage is left holding the bag after putting such information in the MLS.
Once an offer is submitted, it is a newly created ethics violation for listing brokerage to try and unilaterally change the compensation in that cooperative transaction.
Dispute resolution: brokerages settle, brokerages mediate settle, brokerages arbitrate, brokerages litigate.
Standard of Practice 3-2
Any change in compensation offered for cooperative services must be communicated to the other Realtor® prior to the time that Realtor® submits an offer to purchase/lease the property. After a Realtor® has submitted an offer to purchase or lease property, the listing broker may not attempt to unilaterally modify the offered compensation with respect to that cooperative transaction. (Amended 1/14)