Simplified, this settlement roll-out changed two key aspects of how real estate professionals function:

• Compensation offers moved off MLS: NAR has agreed to put in place a new rule prohibiting offers of compensation on an MLS. Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can offer buyer concessions on an MLS (for example — concessions for buyer closing costs). Maryland has also introduced new addenda that allow for the communication in writing of what a seller is willing to offer by way of buyer broker compensation.

• Written agreements for MLS Participants acting for buyers: While NAR has been advocating for the use of written agreements for years, in this settlement they agreed to require MLS participants working with buyers to enter into written agreements with their buyers before touring a home. This practice has been in Maryland code since 2016, but it is a new requirement for Delaware licensees. The requirement stipulates that agents must enter into a written buyer agency agreement with a buyer prior to a buyer “touring a home.” unless state law requires a written buyer agreement earlier in time, which in Maryland is the first scheduled face to face contact. The written agreement must include a specific and conspicuous disclosure of the amount or rate of compensation the participant will receive or how the amount will be determined, to the extent that the participant will receive compensation from any source; the amount of compensation in a manner that is objectively ascertainable and not open-ended; a term that prohibits the participant from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and a conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.