T
he recent changes in industry practices have brought about significant shifts in the way real estate agents operate. With new regulations in place, agents are now more accountable for their actions, and MLSs and brokerages are working together to enforce these rules.

    Rene Galicia of Bright MLS emphasizes that the organization's approach is not to fine agents immediately but to flag potential violations before they escalate. This is done through new measures integrated into the MLS system to identify potential issues early on.

    While MLSs are responsible for enforcing these new rules, brokerage leaders also play a crucial role in helping their agents navigate these changes successfully. The onus is on them to ensure that their agents and brokers adhere to the professional standards set forth by the NAR settlement.

    During the lead-up to the August deadline for implementing these changes, MLSs had to revamp their tools and systems to accommodate these new regulations. This was a significant task, given that including offers of compensation on the MLS is no longer allowed.

    Stopping MLS violations before they occur is a key focus for Bright MLS. Some agents have found creative ways to share compensation details, but there is a clear line that should not be crossed when it comes to sharing offers of compensation on the MLS. While MLSs are responsible for preventing such violations, the ultimate goal is not to punish members but to maintain high-quality data and ensure compliance with the terms of the settlement.

    Enforcing these new practices will be challenging and resource-intensive. Bright MLS routinely conducts audits of listings and shared information, but building a new compliance team is a significant undertaking. Laura Ellis, chief strategy officer and head of residential sales at Baird & Warner, emphasizes that brokerage leaders play a crucial role in helping their agents avoid accidentally triggering a violation or fine.

    There is a disparity in how listing agents want to structure transactions, with some still trying to offer voluntary compensation despite going against the motivation of the suits and the guidance provided by the DOJ. These situations put agents in tricky situations, as they want to follow the spirit of the law while also trying to get their clients the house they want.

    Ellis advises her agents to see if the buyer specifically requests a credit from the seller, as voluntarily offering compensation, while not necessarily a violation, is not in line with what the DOJ wants to see happen. By working together, MLSs, brokerages, and individual agents can navigate these changes successfully and ensure compliance with the new professional standards.