In August as the MLS rules change and as the MLS Participants/BICs/Licensees use the SCR120 Compensation Agreement in a manner like the previous MLS rules, here are some current typical thoughts:

SCR120 is a contract between brokerages.

Contract professionally.

Call the hotline with questions. 803-712-3478
SCR can do SCR120 forms training for you.
SCR has SCR120 forms videos online.

Always use all your contract training, knowledge, and skills (e.g., write the terms clearly, checkbox appropriately, handle changes appropriately such as initials and dates, identify the parties, payor signs, payee signs, authorized agents sign, non-parties do not sign, offer/counteroffer/acceptance procedure).

Section 1:

The paying listing brokerage is written in the correct line.

The buyer brokerage being paid is written into the correct line.

Section 2:

Checkbox "buying" and write the buyer’s name so it is clear who is buying.

Section 3:

Fully identify the subject property being bought with all these blanks filled in properly.

Section 4:

Use a long enough term of this agreement to cover pre-showing, showing, negotiating the deal, working the deal, closing the deal and paying per the SCR120.

Section 5:

Clearly state the amount of money (dollars, percentage).
Clearly state when the money is paid via checkbox.

Section 6:

Listing BIC/agent signs.
Buyer Brokerage BiC/agent signs.
Buyers do not sign.
Sellers do not sign.

For a variety of reasons, most times, agents will have actual or apparent authority to sign for their brokerage. For a variety of reasons, some BICs often delegate authority to sign forms for the brokerage (e.g., SCR120, listing agreements, buyer agency agreements).

Because signatures can be illegible, consider clearly printing on the line next to the signature both the name and title (e.g., listing BIC, listing agent, buyer brokerage BiC, buyer agent, Jane Smith listing agent, John Doe buyer agent) and date.

Best practice is to get the SCR120 agreed and signed pre-showing, but can be negotiated later but with much less negotiating leverage.

Some listing BIC/agents might post a SCR120 with only the listing side information completed. This is not a contract yet. Buyer agents can complete this SCR120 and get the listing side to agree to form a meeting of the minds aka a contractual agreement.

WARNING: a proper SCR120 will be important to mediate and arbitrate or litigate if you are not paid. Even if you are the procuring cause without a contractual agreement to be paid, no arbitration.

This information is only accurate as of 08/09/24. You must contact SCR for updates and changes to this information after 08/09/24 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)

This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.