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Mississippi REALTORS® Institute equips REALTORS® with the tools and knowledge to navigate NAR’s recent settlement-driven changes when representing sellers. These guidelines are designed to uphold ethical standards, enhance transparency, and clarify seller-agent relationships. Following these updated practices will help REALTORS® build trust with their clients and maintain compliance.

Dos When Working with Sellers

Emphasize Your Value as a REALTOR®

At the beginning of your relationship with a seller, underscore your unique expertise as a REALTOR® and how it benefits them. REALTORS® adhere to a strict Code of Ethics, which prioritizes client interests. To help sellers understand the benefits of working with a REALTOR®, share this Guide on REALTORS®’ Duty to Put Client Interests Above Their Own to illustrate how REALTORS® work differently than other real estate licensees.

Explain Offers of Compensation and Their Potential Benefits

Help sellers understand what an offer of compensation entails and the potential advantages of covering all or part of the buyer’s agent fees. Offering compensation can expand the buyer pool by reducing upfront costs for prospective buyers, especially for first-time buyers and those from underserved communities. Emphasize that the choice to offer compensation is always the seller’s and should align with their business practices.

For more information, consider sharing the Consumer Guide: Offers of Compensation.

Ensure the Seller Understands Their Options Before Signing

Before signing a listing agreement, make sure the seller knows their options regarding compensation and terms. Highlight that compensation is fully negotiable and not set by law, enabling them to make informed decisions.

Get Written Approval for Compensation Offers

If you’re offering compensation to another agent, get written approval from the seller beforehand. This transparency ensures that the seller is fully aware of any payment arrangements that may affect their transaction.

Present All Offers and Ensure Fairness

Present every offer to the seller and treat all buyers equitably. Compliance with fair housing laws and the REALTOR® Code of Ethics requires that REALTORS® act impartially and avoid discrimination. Sellers must be treated fairly regardless of factors such as race, gender, or other protected characteristics.

Maintain Open Communication with Industry Peers

Effective communication with other brokers, agents, and professionals benefits both the seller and the transaction. Staying accessible to appraisers and other industry professionals can facilitate smoother transactions and help you secure the best offers for your clients.

Follow State and Local Laws

As a Mississippi REALTOR®, it’s essential to be familiar with state and local laws affecting seller representation. Consult with MRI or your local REALTOR® association regularly for updates to ensure your practice is compliant. Check on the Mississippi Real Estate Commission website for the License Law and the MREC Administrative Rules and Regulations.   

Don’ts When Working with Sellers

Avoid Using MLS to Offer Compensation

Under the settlement, offers of compensation cannot be made through MLSs that have opted into the settlement. Avoid using MLS data fields for this purpose, as doing so violates current guidelines.

Don’t Share Listing Agreements with Competitors

Protect the seller’s confidential information by not sharing signed listing agreements with competitors. These documents contain sensitive details, including compensation, that are critical for negotiation.

Don’t Communicate Compensation Without Seller Approval

If a seller decides to authorize an offer of compensation, they dictate when and how that information is shared. Follow the seller’s instructions carefully regarding if, when, and how compensation details are disclosed to potential buyers or their agents.

Don’t Request Copies of Written Buyer Agreements

Respect MLS policies regarding buyer agreements. Avoid requesting copies of written buyer agreements, as MLS policies govern these requirements.

Frequently Asked Questions (FAQ)

Why is a written listing agreement necessary?
A written listing agreement provides clarity, outlining the terms of service and the responsibilities of both the REALTOR® and the seller. This helps establish a clear, transparent working relationship.

What key elements should be included in a listing agreement?
The agreement should detail the services provided, the compensation structure, and other terms that define the relationship between the REALTOR® and the seller. This transparency benefits both parties.

How can REALTORS® explain offers of compensation to sellers?
Explain that offering compensation may attract more buyers, especially those needing financial support for agent fees. However, the decision to offer compensation is entirely up to the seller.

What are the consequences of failing to comply with the new NAR requirements?
REALTORS® who don’t follow these guidelines risk losing MLS access, NAR membership, or facing legal repercussions. Adhering to these best practices helps REALTORS® avoid these potential issues.

Do REALTORS® need written approval from sellers to offer compensation to buyer agents?
Yes, any offer of compensation must be approved in writing by the seller to ensure full transparency and compliance with the settlement.

Where can I find more resources on listing agreements and compliance?
Mississippi REALTORS® Institute offers in-person and online courses to support REALTORS® in understanding and applying these guidelines. For more information, visit our Course Catalog or contact MRI directly.

Take Action Now for Compliance and Success

Take proactive steps to enhance your expertise. Join our upcoming in-person or online classes to keep your skills sharp and deliver top-tier service to your clients. For additional support, the Mississippi REALTORS® Institute team is here to help. Visit our contact page or call us directly at 601-932-5241. Your success is our commitment, and we’re with you every step of the journey.

Useful Resources

• NAR Member Resource: Dos and Don’ts When Working with Sellers
• Guide on REALTORS®’ Duty to Put Client Interests Above Their Own
• Consumer Guide: Offers of Compensation
• Classroom Courses – Mississippi REALTORS® Institute
• Online Courses – Mississippi REALTORS® Institute 

The Mississippi REALTORS® Institute is dedicated to supporting REALTORS® as they navigate the recent practice changes required by NAR’s settlement agreement. These changes are designed to uphold ethical standards, protect consumers, and clarify buyer-agent relationships. Following these updated guidelines can help you maintain compliance and build stronger, trust-based connections with your clients.

Dos When Working with Buyers

Clearly Communicate Your Value as a REALTOR®

At the beginning of any client relationship, it’s essential to explain the unique value you bring as a REALTOR®. Unlike other real estate licensees, REALTORS® adhere to a strict Code of Ethics that prioritizes client interests. For an in-depth understanding, consider sharing this consumer guide about how REALTORS’® Duty to Put Client Interests Above Their Own with your buyers. Your commitment includes finding a home that aligns with the buyer’s unique needs and upholding ethical standards throughout the process.

Explain the Purpose of the Written Buyer Agreement

Mississippi REALTORS® must provide clarity regarding the written buyer agreement and its importance in the client relationship. This document outlines the services you will provide and the compensation involved, ensuring both you and your client are on the same page before touring properties. 

Emphasize that this agreement is a requirement in many MLSs to reinforce transparency and protect both parties. For more insights, check our recent blog on the Buyer’s Agency Agreement Changes.

Discuss Compensation and Buyer’s Financial Responsibilities

Before signing the agreement, explain the financial aspects clearly. While some sellers offer broker compensation, this isn’t guaranteed. Buyers must understand their responsibility for any agreed compensation, as some payments may not be financeable through a mortgage.

Serve as an Advocate for Your Buyer

As a REALTOR®, you’re ethically bound to prioritize your buyer’s best interests. Make sure they understand their options and advocate for the terms that best meet their needs. Mississippi REALTORS® can inform clients about the potential to ask sellers to cover broker compensation in the buyer’s offer, if applicable.

Know and Follow State and Local Laws

Mississippi REALTORS® should be familiar with relevant state and local laws concerning buyer representation. Always consult with MRI or your local REALTOR® association for updates, or the Mississippi Real Estate Commission as state-specific regulations may impact your work.

Don’ts When Working with Buyers

Avoid Misrepresentation in Buyer Agreements

Buyer agreements must be presented with full transparency. Accurately outline the services and compensation, making sure the buyer fully understands the terms before proceeding. Honesty is crucial, as misrepresentation is a violation of NAR’s Code of Ethics.

Don’t Circumvent Practice Change Requirements

Compensation terms in buyer agreements must be specific and transparent. Avoid creating multiple agreements or amending terms solely to match a competitor’s compensation offer. Each agreement must have a clear basis and an informed, consenting client.

Don’t Accept Unauthorized Compensation

Under the new settlement, REALTORS® cannot accept compensation beyond what is specified in the buyer agreement. Avoid bonuses or other forms of compensation from any source unless explicitly agreed upon in the contract.

Protect the Confidentiality of Buyer Agreements

Buyer agreements contain sensitive compensation information and must not be shared with competitors, except where required by state law. Your MLS may perform audits for compliance but should maintain confidentiality.

Don’t Limit Property Showings Based on Compensation

Avoid steering clients based on broker compensation. Mississippi REALTORS® must show buyers all properties meeting their criteria, regardless of the compensation offered. Ensure that clients make informed choices based on their preferences.

Frequently Asked Questions (FAQ)

Why is a written buyer agreement necessary?
A written buyer agreement establishes clear terms of service, ensuring that both the buyer and the REALTOR® understand their roles and expectations. It protects both parties and aligns with NAR’s recent settlement requirements, which mandate transparency and compliance.

What should I include in a written buyer agreement?
A buyer agreement should outline the services the REALTOR® will provide, the agreed-upon compensation, and any other terms that define the client-agent relationship. This document helps avoid misunderstandings and provides a transparent foundation for the working relationship.

How can REALTORS® clarify their compensation with buyers?
REALTORS® should discuss compensation openly with buyers, explaining that while some sellers may offer to cover buyer-agent fees, this is not guaranteed. Buyers should be aware of any potential costs they may incur and discuss these terms fully before signing the agreement.

What are the penalties for failing to comply with the new NAR requirements?
REALTORS® who do not adhere to these guidelines may risk losing MLS access, NAR membership, or even face legal consequences. Following the dos and don’ts outlined here can help REALTORS® avoid potential penalties.

Can a buyer request the seller to cover their broker’s compensation?
Yes, buyers may request that sellers cover broker compensation as part of their offer, though this is subject to negotiation. REALTORS® should make sure buyers understand that this option is available, even if the seller’s listing does not initially offer it.

Is it acceptable to steer buyers based on broker compensation offers?
No. Under the NAR Code of Ethics, REALTORS® must show buyers any property that meets their criteria, regardless of compensation. Steering clients based on compensation is prohibited, as it conflicts with the principles of transparency and buyer autonomy.

Where can I find more resources on buyer agreements and compliance?
Mississippi REALTORS® Institute offers various resources, including in-person and online classes, to help you understand and apply these guidelines. For more information, visit our Course Catalog or contact MRI directly.

Take Action Now for Compliance and Success

Don’t wait until it’s too late. Enroll in our upcoming in-person and online continuing education classes to stay ahead of the curve and continue providing exceptional service to your clients. For further guidance, please reach out to us at the Mississippi REALTORS® Institute. Contact us or call us directly at 601-932-5241. Your success is our priority, and we’re here to guide you every step of the way. 

 

Useful Resources

• NAR Member Resource: Dos and Don’ts When Working With Buyers
• Consumer Guide on REALTORS’® Duty to Put Client Interests Above Their Own
• Code of Ethics
• Classroom Courses – Mississippi REALTORS® Institute
• Online Courses – Mississippi REALTORS® Institute 

In the market of real estate, achieving a broker’s license can significantly boost your career prospects. Mississippi offers a well-structured licensing system, which includes distinct pre-license and post-license requirements for prospective brokers. If you’re ready to take the next step in your real estate career and become a broker in Mississippi, you’ve come to the right place. In this comprehensive guide, we’ll break down the broker licensing process and how the Mississippi REALTORS® Institute can help you achieve your goals through our Broker Pre-License & Post-License courses.

Understanding Mississippi’s Broker Licensing Process

In Mississippi, obtaining a broker’s license involves a combination of pre-license and post-license education. These requirements are designed to equip you with the necessary knowledge and skills to excel in your real estate career.

Pre-License Education Requirements

The first step in becoming a broker is to complete an additional 60 hours of pre-license education after you receive your salesperson license. With the Mississippi REALTORS® Institute, we have divided the coursework into two 30-hour segments, known as Broker A and Broker B courses, and can be taken in any order. You can also take the 60 hours of Broker Pre-License required coursework in one online course. These courses focus on essential aspects of real estate, including market economics, appraisal, taxation, ethics, property management, and more. The Mississippi REALTORS® Institute offers these different course options, making it convenient for you to complete your pre-license education. 

Taking these courses will not only fulfill your educational requirements but also prepare you for the Mississippi Broker Licensing Exam. They are a critical foundation for your future success as a broker.

Post-License Education Requirements

After successfully passing your broker’s exam, the journey doesn’t end there. You must also complete a 30-hour Post-License education course within one year of receiving your temporary broker’s license. This requirement is mandated by the Mississippi Real Estate Commission.

The post-license education focuses on more advanced topics relevant to your new role, such as managing escrow accounts, broker responsibilities, and real estate license law. This is an essential step in ensuring that you are well-prepared for the responsibilities and challenges of being a real estate broker.

Summing up How the Mississippi REALTORS® Institute Can Help

The Mississippi REALTORS® Institute plays a crucial role in assisting aspiring brokers in Mississippi. Here’s how our institution can guide you through the process:

1. Pre-License Education: Mississippi REALTORS®  Institute offers Broker A and Broker B courses. These 30-hour classes satisfy the pre-license education requirements, and they can be taken in any order. Please note that if you start with an instructor led course, you will need to complete your Broker Pre-Licensing with an instructor and will not be able to switch to an online course option, unless you wish to start over, due to the way the courses are outlined.Our experienced instructors provide you with in-depth knowledge and practical insights into the real estate field.
2. Post-License Education: To meet the post-license requirement, the Institute offers a 30-hour Broker Post-License course. This comprehensive program will deepen your understanding of the real estate industry, including managing escrow accounts, confidentiality, broker responsibilities, real estate law, and more.
3. Flexible Learning: Whether you prefer instructor-led classes or online learning, the Mississippi REALTORS® Institute offers both options to suit your schedule and learning style. You can choose the mode that works best for you.
4. Experienced Instructors: Our courses are led by seasoned real estate professionals who are dedicated to your success. They bring a wealth of knowledge and practical experience to the classroom.

Now is the Time to Earn Your Broker’s License

Becoming a licensed real estate broker in Mississippi is a significant achievement that opens up new opportunities and responsibilities in the industry. After you receive your salesperson license, the process involves completing an additional 60 hours of pre-license education through Broker A and Broker B courses, followed by a 30-hour post-license course. The Mississippi REALTORS® Institute is your partner on this journey, offering the guidance and resources you need to succeed.

Whether you’re just starting or advancing your career, our courses provide the foundation and expertise required to excel in the real estate market. Ready to take the next step and earn your broker’s license? Explore the courses offered by the Mississippi REALTORS® Institute and begin your journey toward becoming a Mississippi real estate broker. Your future in real estate starts here. 

 

Not Ready for the Broker Licensing Process?

Are you at the beginning of your real estate journey, taking those first steps toward becoming a Salesperson? If you’re not quite ready for a broker license but want to get started, check out our comprehensive guide on the education process here. It’s a great way to kickstart your career in the world of real estate. Don’t hesitate to contact us for more information or to get started today.