The term 'cooperative compensation' in the context of the NAR settlement refers to:
Correct Answer
B) The listing broker's offer of compensation to buyer brokers through the MLS
Cooperative compensation was the arrangement under which a listing broker offered part of the commission to whichever broker brought the buyer, published on the MLS so every buyer broker could see it before showing the house. That publication is what ended. Other choices: two brokerages working a transaction together at no cost to either describes cooperation without compensation, which is not the term; there were never government subsidies for agent fees; and it was not a partnership, new or otherwise, but an offer made listing by listing. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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