The term 'cooperative compensation' in the context of the NAR settlement refers to:
Question & Answer
Review the question and all answer choices
Agents working together without pay
Option A is incorrect because cooperative compensation does not refer to agents working without pay. It specifically involves compensation being offered and paid through the MLS system.
The traditional practice of listing brokers offering compensation to buyer brokers through MLS
Government subsidies for agent fees
Option C is incorrect because cooperative compensation is not related to government subsidies. It's a private industry practice involving broker-to-broker compensation arrangements.
A new type of agent partnership
Option D is incorrect because cooperative compensation is not a new type of partnership. It was the traditional, long-standing practice of commission sharing through MLS.
Why is this correct?
Option B is correct because cooperative compensation specifically refers to the traditional practice where listing brokers would offer a portion of their commission to buyer brokers through the MLS. This was standard practice until being prohibited by the NAR settlement.
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