Compensation Fields
Instead of one compensation field, you'll find three (buyer's agent) compensation fields on the new commercial MLS platform. This setup allows you to specify compensation offered in a way that is aligned with SC law.
In South Carolina, real estate transactions (residential or commercial), a SC licensee/brokerage always must enter into a written legal agreement with a consumer describing your legal agency relationship (listing seller agency, buyer agency, landlord agency, tenant agency, subagency with another brokerage) or your legal non-agency relationship (transaction brokerage) relationship with the consumer.
As such, MLS must provide a space to specify the compensation offered for the variety of agency relationships that exist, as defined by South Carolina law.
1. Buyers Agency
The buyer has established buyers agency with a sales licensee
2. Transaction Brokerage.
Established in South Carolina in 2017, A transaction broker means a real estate brokerage firm that provides customer service to a buyer, a seller, or both in a real estate transaction. A transaction broker may be a single agent of a party in a transaction giving the other party customer service. A transaction broker also may facilitate a transaction without representing either party. transaction brokers are considered to be facilitators of a transaction and are often said to represent the transaction, not the parties
3. Sub-Agency
If the seller accepts Sub-Agency, the sub agency fields represent the amount listing brokers will compensate sub-agents
A value greater than zero must be entered into at least one of the three compensation fields, representative of your agreement as an MLS member to cooperate and offer compensation.
Compensation should be expressed as a flat dollar amount or percentage of the gross sale or lease price
Watch this short video for a summary of how to properly utilize the compensation fields.
While in an agency relationship (buyer agency, listing agency, landlord agency, tenant agency) with a consumer, the consumer is referred to as a client. You provide advising assistance to a client.
While in a non-agency relationship (transaction brokerage) with a consumer, the consumer is referred to as a customer. Even with non-agency, you have a limited duty of confidentiality. You provide administrative assistance to a customer.
One brokerage can become a subagent of another brokerage. Your brokerage lawyers can draft the sub agency agreement between the two brokerages.
REALTOR® Associations provide standard agency agreements and standard non-agency agreements (transaction brokerage).
Some situations will require your lawyers to draft a tailored legal agreement (e.g., subagency).
For more details, please consult your Broker-in-Charge and legal counsel.