Article 6: COOPERATIVE COMPENSATION

The Central Virginia Regional MLS, LLC (CVR MLS), Williamsburg Multiple Listing Service, Inc. (WMLS) and Chesapeake Bay and Rivers Property Services Inc. (CBAR PS), are members of the Commonwealth MLS Cooperative. In filing a property with CVR MLS, the Participant of the service is making blanket unilateral offers of compensation to the other MLS participants of Central Virginia Regional MLS, LLC (CVR MLS), Williamsburg Multiple Listing Service, Inc. (WMLS) and Chesapeake Bay and Rivers Property Services Inc. (CBAR PS),, and shall therefore specify on each listing filed with the service, the compensation being offered to the other MLS participants. Specifying the compensation on each listing is necessary, because the cooperating broker has the right to know what his compensation shall be prior to his endeavor to sell. Entitlement to compensation is determined by the cooperating Participant’s performance as procuring cause of the sale (or lease). While offers of compensation made by Listing Participants to cooperating Participants through CVR MLS, CBAR PS and WMLS  are unconditional, a Listing Participant’s obligation to compensate a cooperating Participant who was the procuring cause of sale (or lease) may be excused if it is determined through arbitration that, through no fault of the Listing Participant and in the exercise of good faith and reasonable care, it was impossible or financially unfeasible for the Listing Participant to collect a commission pursuant to the Listing agreement. In such instances, entitlement to cooperative compensation offered through CVR MLS, CBARPS and WMLS  would be a question to be determined by an arbitration hearing panel based on all relevant facts and circumstances including, but not limited to, why it was impossible or financially unfeasible for the Listing Participant to collect some or all of the commission established in the Listing agreement; at what point in the transaction did the Listing Participant know (or should have known) that some or all of the commission established in the Listing Agreement might not be paid; and how promptly the Listing Participant communicated to cooperating Participants that the commission established in the Listing agreement might not be paid.

Section 6.1 Cooperating Participant Compensation

The Listing Participant shall specify in all appropriate MATRIX Database fields, the compensation offered to other Participants for their services acting as, buyer agents, or in other agency or non-agency capacities as defined by law in the sale, lease or exchange of such Listing. The Listing Participant retains the right to determine the amount of compensation offered to other cooperating Participants, which may be the same or different than the Listing Participant’s compensation.

Section 6.3 Forms of Compensation

Compensation shall be shown in one of the following forms:

a.) A percentage (%) of the gross sale lease or exchange price. In the case of rental properties, the percentage shall be based on the first month’s rental amount, or

b.) A definite dollar ($) amount.

Section 6.4 Modified Compensation

The Listing Participant shall not be precluded from offering any cooperating Participant compensation other than the compensation published in the MLS Database provided the Listing Participant informs the other Participants in advance of their submitting an offer to purchase and provided that the modification in the specified compensation is not the result of any agreement among all or any other Participants in CVR MLS.

Section 6.5 Dual or Variable Compensation Arrangements

The existence of a dual or variable rate compensation arrangement must be noticed to other Participants and Subscribers by placing a “Y” in the appropriate compensation field. The Listing Participant shall in response to inquiries from potential cooperating Participants and Subscribers disclose the differential that would result in either a cooperative transaction or, alternatively, in a sale/lease that results through the efforts of the Seller. If the cooperating Participant or Subscriber is a buyer/tenant representative, the buyer/tenant representative must disclose such information to their client before the client submits an offer to purchase or lease.

Section 6.6 Reference to Additional Properties

An offer of compensation shall apply to Listings formally entered into the CVR MLS MATRIX system, and shall not apply to any other listing.  A cooperating Participant shall not assume the offer of compensation entered for a CVR MLS Listing will apply to a property referenced in the “Remarks” section of the Listing. The Cooperating Participant or Subscriber must inquire of the Listing Participant or Subscriber as to what compensation, if any, is being offered for the sale of such referenced property.