The MLS Board drafted a new policy regarding payment of co-broke commissions in a timely manner. Most payments are made at closing or a very timely manner shortly following when funds clear and we expect that to continue unchanged. But, we have fielded several complaints about a “lack of urgency” and sometimes long gaps without payment. After research, we have adopted an MLS policy to help address these rare instances that is consistent with our current rules and arbitration guidelines.
Failure or refusal of a Participant to pay to another Participant the compensation owed to the selling Participant in a transaction in which entitlement to the compensation is undisputed according to Section 5 Division of Commissions: The Service will issue a warning if it receives satisfactory written evidence that entitlement to cooperative compensation is undisputed and yet still unpaid after closing with proper time for funds to clear, without extenuating circumstances. If compensation remains unpaid after warning or an arbitration request is not filed, the fine shall be;
- $0 fine if paid in full / arbitration filed within five (5) days after warning.
- $50 / day from date of warning for a first offense
- $150 / day from date of warning for a second offense
- Fines for unpaid compensation or the filing of an arbitration request more than 5 days after warning or a third offense will be administratively assessed after a hearing with the MLS Board, the Participant, and the offending user; per Section 7 of the Rules and Regulations.