Rules and Policy Change Summary (August 2024)

The SDMLS Rules and Policies were reviewed and updated with the key (mandatory) changes below per the NAR Executive Summary pursuant to the requirements of the settlement agreement and effective August 17, 2024. 

1. Eliminate and prohibit any requirement of offers of compensation in the MLS between listing brokers or sellers to buyer brokers or other buyer representatives. 
2. Retain, and define, "cooperation” for MLS Participation. 
3. Eliminate and prohibit MLS Participants, Subscribers, and sellers from making any offers of compensation in the MLS to buyer brokers or other buyer representatives. 
4. Require the MLS to eliminate all broker compensation fields and compensation information in the MLS. 
5. Require the MLS to 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. 
6. Prohibit the use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers or other buyer representatives. Such use must result in the MLS terminating the Participant’s access to any MLS data and data feeds. 
7. Reinforce that MLS Participants and Subscribers must not, and MLSs must not enable the ability to, filter out or restrict MLS listings that are communicated to customers or clients based on the existence or level of compensation offered to the cooperating broker or the name of a brokerage or agent. 
8. Require compensation disclosures to sellers, and prospective sellers and buyers. 
9. Require MLS Participants working with a buyer to enter into a written agreement with the buyer prior to touring a home 

Data input fields to be removed from all SDMLS property classes. 

• Comp. to Buyers Broker (CBB) % 
• Comp. to Buyers Broker (CBB)$ 
• Variable Commission (CVR) 
• Contract Length (applies to Residential Rentals) 
• CBB Paid (applies to Residential Rentals) 

Any references to and/or inclusion of Compensation, Commission, Bonuses, or Broker/Brokerage Fees information anywhere in or attached to an SDMLS listing is a Rules violation and will result in immediate citation and $1500 MLS fine. 

Terminology revisions - The terms "Commission" and "Compensation" have been removed where applicable. 

Sections 1 and 2 – Authority and Purpose of the MLS was revised and now reads: 

The San Diego Multiple Listing Service (“San Diego MLS” or “SDMLS”) shall maintain for the use of licensed real estate brokers and salespersons, and licensed or certified Appraisers a Multiple Listing Service (hereinafter also referred to as "MLS" or "Service"), which shall be subject to the Bylaws of San Diego MLS and such rules and regulations as may be hereinafter adopted by the San Diego MLS Board of Directors. 

The San Diego Multiple Listing Service is a means by which cooperation among Participants is enhanced; a means by which information is accumulated and disseminated to enable authorized Participants to prepare appraisals, analyses, and other valuations of real property for bona fide clients and customers; a means by which Participants engaging in real estate appraisal contribute to common databases; and is a facility for the orderly correlation and dissemination of listing information among the Participants so that they may better serve their clients, customers, and the public. 

Section 7.12 - Unilateral Contractual Offer was renamed, revised/expanded, and now reads: 

7.12 No Compensation Specified on MLS Listings 

Participants, Subscribers, and their sellers are prohibited from making offers of compensation to buyer brokers and other buyer representatives in the MLS. Participants and Subscribers are not permitted to include an offer of compensation on any field, photo, attachment, or supplement file on a listing in the MLS. Participants and Subscribers are prohibited from disclosing in the MLS, 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). 

7.12.3 Removal of listing information by MLS 

The MLS reserves the right to remove a listing from the MLS database that does not conform to the requirements of this section. 

7.12.4 Seller offered concessions 

This rule does not prevent sellers from offering buyer concessions on the MLS so long as such concessions are not limited to or conditioned on the retention of or payment to a Buyer Broker or other buyer representative.

Removed Section 7.14 -Acceptance of Contractual Offer 

Removed Section 7.15 - Estate Sale, Probate, and Bankruptcy Listings. 

Removed Section 7.15.2 - Lender Approval Listings. 

Removed Section 7.16 - Changes to Offer of Compensation to All Broker Participants. 

Removed Section 7.22 - Dual or Variable Rate Commission Arrangements. 

New Section 8.3 Buyer Broker Agreement. 

All MLS Participants and R.E. Subscribers working with a buyer must enter into a written agreement with the buyer prior to touring a home. The written agreement must include: (1) a specific and conspicuous disclosure of the amount or rate of compensation the Participant will receive or how this amount will be determined, to the extent that the Participant will receive compensation from any source; (2) the amount of compensation in a manner that is objectively ascertainable and not open-ended; (3) 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 (4) a conspicuous statement that broker fees and commissions are not set by law and are fully negotiable. 

New Section 8.4 Buyer Broker Agreement Written Documentation. 

The service shall have the right to demand from an MLS Participant a copy of any written buyer broker agreement satisfying the requirements of Rule 8.3 whenever an MLS Participant or R.E. Subscriber working with the buyer tours a property listed in the MLS. If the Broker Participant or R.E. Subscriber fails to provide the agreement requested by the service within 1 day after the service’s request or if the agreement provided to the service does not include all the terms required in Rule 8.3, the service shall have the right to discipline the Participant or Subscriber for a violation of MLS Rules.

New Section 8.5 Required Consumer Disclosures Regarding Compensation. 

Participants and Subscribers must 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, and except those documents that are government-specified). Participants and Subscribers, in representing sellers, must also 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 another broker acting for buyers.

Revised 12.5 Misuse of Remarks and Supplemental Remarks 

Information in the public remarks shall only relate to the marketing, description and condition of the property. No contact information is permitted, including names, phone or fax numbers, email addresses or website addresses (including virtual tours and transaction tracking URLs). No showing instructions are permitted, including references to lockbox, alarm, gate or other security codes, or the occupancy of the property (a statement that the property shall be delivered vacant is not a violation of this section). No information directed toward real estate agents or brokers may be shown in public remarks. No information other than the marketing, description and condition of the property is permitted. Participants and Subscribers may not use the remarks in a property data profile sheet or listing submitted to the MLS or inputted directly into the MLS database for purposes of disparaging other real estate agents or conveying information about other offices or for conveying any other information that does not directly relate to the marketing of the listing. By submitting remarks to the MLS, Participant and/or Subscriber represents and warrants he or she has the authority to grant, and hereby grants the MLS and the other Participants and Subscribers the right to reproduce and display the remarks in accordance with these rules. Copying of remarks by a subsequent listing agent for use in his or her own listing requires prior written authorization from the originating listing agent or other appropriate party with the legal right to reproduce and display such remarks. 

Revised Section 11.16. Listing Broker’s Offer of Compensation renamed, revised to, and now reads: 

11.16 Prohibition on Creating a Platform for Making Offers of Compensation from Multiple Brokers

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

Removed Section 16 - ARBITRATION BETWEEN PARTICIPANTS