The Rhode Island Association of REALTORS® Forms Committee has been working to update and create forms to help members comply with changes to compensation to cooperating brokers, including the recent changes to the Exclusive Buyer Representation Agreement. Now that the settlement agreement was preliminarily approved by the court in late April, 2024, it is critical that RIAR forms, MLS forms and any other compensation-related forms that your brokerage chooses to use meet all of the terms of the settlement by the time that the compensation changes take effect in mid-August. (See NAR Settlement Agreement Pages 27-30.)
Here are some of the forms that the Forms Committee is reviewing.
▪Exclusive Buyer Representation Agreement
▪Compensation to Cooperating Brokerage Form
▪Showing and Compensation Agreement
▪Exclusive Tenant Representation Agreement
▪Termination of Exclusive Tenant Representation Agreement
▪Alternative Compensation forms
The settlement agreement requires “All REALTOR® MLS Participants who are working with a buyer must enter into a written agreement before a buyer tours any home.” The agreement itself must comply with the terms of the agreement.
Here are several requirements:
▪Must include a noticeable disclaimer that compensation is not set by law and is fully negotiable.
▪Services cannot be “free” unless you will receive zero compensation from anyone.
▪Compensation cannot be open-ended. For example, it cannot be "whatever the listing broker or seller offers" or "any amount above x.”
▪Compensation for cooperating brokers cannot include a range.
For more information, please contact the RIAR Legal Department at 401-432-6945 or email [email protected] .
