Article 6: RESTRICTION OF COMPENSATION INFORMATION

Section 6.1 Compensation Notice

A. A broker’s compensation and fees for services are not set by law and are fully negotiable.

B. A broker’s compensation for services rendered to a seller or for services rendered to a buyer is solely a matter of negotiation between the broker and their client, and is not fixed, controlled, recommended, or maintained by any persons not a party to the brokerage service agreement.

C. The compensation paid by a listing broker to a cooperating broker in respect to any listing is established by the listing broker and is not fixed, controlled, recommended, or maintained by any persons other than the listing broker.

Section 6.2 No Compensation Offers in the MLS

A. CVR MLS does not accept or allow listings in the MLS containing an offer of compensation to other MLS Participants and Subscribers. Further, CVR MLS will not create, facilitate, or support any non-MLS mechanism (including by providing listing information to an internet aggregator’s website for such purpose) for Participants, Subscribers, or sellers to make offers of compensation to buyer brokers or other buyer representatives.

B. Use of CVR MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers to buyer brokers or other buyer representatives is prohibited and must result in the termination of that Participant’s CVR MLS access to any MLS data and data feeds.

C. CVR MLS shall not have any rules requiring the listing broker to disclose the amount of total negotiated commission in his listing contract and shall not publish the total negotiated commission on a listing which has been submitted to the MLS by a Participant. CVR MLS prohibits disclosing in any way the total commission negotiated between the seller and the listing broker, or total broker compensation (i.e. combined compensation to both listing brokers and buyer brokers).

Note 1: Multiple listing services must give Participants the ability to disclose to other Participants any potential for a short sale. As used in MLS rules, short sales are defined as a transaction where title transfers, where the sales price is insufficient to pay the total of all liens and costs of sale, and where the seller does not bring sufficient liquid assets to the closing to cure all deficiencies. Multiple listing services may, as a matter of local discretion, require Participants to disclose short sales when Participants know a transaction is a potential short sale.

Section 6.3 Disclosure of Compensation in Brokerage Agreements

MLS Participants and Subscribers must:

A. Disclose to prospective sellers and buyers that broker compensation is not set by law and is fully negotiable. This must be included in conspicuous language as part of any listing agreement, buyer written agreement, and pre-closing disclosure documents (if any).

B. Conspicuously disclose in writing to sellers, and obtain the seller’s authority, for any payments or offer of payment that the listing Participant or seller will make to another broker, agent, or other representative (e.g. real estate attorney) acting for buyers. This disclosure must include the amount or rate of any such payment and be made in writing in advance of any payment or agreement to pay.