Prior to the August 2024 NAR settlement rule changes, a cooperating broker showed a property to a buyer client after the listing appeared in the MLS with an offer of 2.5% cooperating compensation. Before the buyer submitted an offer, the listing broker notified the cooperating broker that the compensation had been reduced to 1.5%. Under the MLS rules in effect at that time, what compensation was the cooperating broker entitled to claim?

Correct Answer

B) 2.5%, because the cooperating broker commenced performance by showing the property under the original published offer

Note: This question tests MLS compensation rules as they existed prior to the August 2024 NAR settlement, under which offers of buyer broker compensation were no longer permitted to be published in MLS systems. Under the prior framework, an MLS offer of compensation functioned as a unilateral contract offer to cooperating brokers. A cooperating broker accepted that offer by commencing performance — typically by showing the property to a procured buyer. Once performance began under the published rate, the compensation offer became binding at that rate and could not be retroactively reduced for that transaction.