What Home Sellers Must Know About Commission Disclosure & MLS Compliance
If you’re a home seller in Florida, you may have heard that real estate commissions can no longer be included in MLS listings. This has left many sellers wondering:
- How do I advertise my home without listing the commission?
- Can I still negotiate commission with agents?
- What happens if my agent gets fined because of my listing?
- Am I responsible for ensuring the listing follows the rules?
Understanding your role as a seller is crucial because failing to comply with these new rules can delay your sale, result in fines for your agent, or even lead to your listing being removed from the MLS.
Let’s break down your responsibilities as a home seller and how you can navigate these changes successfully.
Sellers Must Still Set Commission—But It’s a Private Agreement
Florida law requires that a listing agreement includes the commission details agreed upon between the seller and the listing agent. However, this information is no longer allowed in MLS listings due to the new National Association of Realtors (NAR) policies.
What this means for sellers:
✅ You still decide how much commission to offer your listing agent.
✅ You can still offer buyer’s agents compensation, but it must be done privately.
✅ You cannot require your agent to include commission details in the MLS listing.
This means sellers must understand and accept that their listing won’t show commission offers like it did in the past.
So where do commission discussions happen now?
- In the listing agreement (which remains private).
- Through direct conversations between agents (buyer’s agent and listing agent).
- In buyer representation agreements (buyers can now negotiate agent commissions).
These changes are designed to make commission discussions more transparent and prevent compensation from influencing how agents guide buyers.
What Sellers Need to Do to Stay Compliant
As a seller, you are not directly fined if an MLS violation occurs—but your agent can be, which could result in your listing being temporarily removed.
To avoid delays and issues, here’s what you need to do:
✅ 1. Work With an Agent Who Understands the New Rules
Many agents are still adjusting to these major changes. Some might not realize that even a small mention of commission in the MLS can result in a $500+ fine.
🔹 Before signing a listing agreement, ask your agent:
✔ Do you fully understand the new commission disclosure rules?
✔ How will you ensure my listing complies with MLS guidelines?
✔ How will we communicate commission details to buyers’ agents legally?
A knowledgeable agent will protect your listing and avoid costly mistakes.
✅ 2. Do Not Request Commission Details in the MLS Listing
Some sellers are still asking their agents to include commission offers in the MLS. While this was common practice before, it is now against the rules.
🔹 DO NOT request your agent to:
🚫 List a specific commission amount in public or private MLS remarks.
🚫 Add commission details in showing instructions.
🚫 Attach commission-related documents to the MLS listing.
Even if a seller insists, an agent cannot comply without breaking the rules. If they do, they risk fines and listing removal.
✅ 3. Understand That Buyer’s Agents May Ask About Commission Privately
Since commissions aren’t displayed in MLS listings anymore, buyer’s agents must now contact the listing agent directly to confirm commission details.
🔹 What this means for you:
✔ Your agent should be prepared to discuss commission with buyer’s agents privately.
✔ You may need to negotiate compensation with buyers (this is becoming more common).
✔ Some buyers may ask for commission credits in their offer, meaning you may need to adjust your net proceeds.
This process is not new—buyers have always had the right to negotiate commissions. The difference now is that these conversations are happening outside the MLS.
✅ 4. Be Prepared for More Buyer Negotiations
Buyers are now more aware of how commissions work, and many will ask about compensation in their offer terms. Some buyers may:
✔ Ask for a seller credit to cover their agent’s commission.
✔ Negotiate a lower purchase price instead of a commission payout.
✔ Choose to pay their agent out of pocket (though this is rare).
Sellers need to stay flexible and work with their agent to determine the best way to handle these discussions. The listing price should reflect these changes to avoid surprises during negotiations.
What Happens if My Agent Violates the Rules?
Even if a seller doesn’t directly make an MLS mistake, their listing could still be flagged and removed if their agent violates the new rules.
🚨 Example of a Real MLS Violation Notice (Names Changed for Privacy):
- Agent: John Smith
- Listing: 1234 MAIN ST, CITY, FL 12345
- Violation: Prohibited Commission Verbiage in MLS
- Infraction: “$5,000 commission offered by seller” in Realtor-only remarks.
- Fine: $500
- Correction Deadline: 10 days
What Can a Seller Do If This Happens?
1️⃣ Tell your agent to correct the violation immediately.
2️⃣ Ensure all commission discussions happen off the MLS moving forward.
3️⃣ Work with an experienced agent who knows how to navigate these rules.
If the listing isn’t corrected in time, the MLS can suspend it, leading to delays in selling your property.
Final Thoughts: How Sellers Can Succeed in This New Landscape
The way commissions are handled in real estate is evolving, but sellers still have full control over how they compensate agents—they just need to follow the new rules.
Key Takeaways for Sellers:
✔ Commissions must be in the listing agreement, but not in the MLS.
✔ Do not ask your agent to include commission details in the listing.
✔ Expect direct conversations with buyer’s agents about compensation.
✔ Be ready for commission negotiations during the offer process.
✔ Choose an experienced agent who understands the new rules.
By following these guidelines, sellers can avoid complications, keep their listings active, and maximize their home sale without running into MLS violations.