We have received several questions regarding how buyer broker compensation should be handled under the updated GLAR Listing Agreement. The following guidance is provided strictly from a compliance and form-usage standpoint.

Removal of Broker-to-Broker Compensation Section

The updated GLAR Listing Agreement no longer contains a section for broker-to-broker compensation.

This section was removed to comply with the NAR Settlement Agreement and MLS Policy Statements 8.11 through 8.13, which prohibit offers of cooperative compensation from being displayed or negotiated through the MLS.

Section 11 is ONLY the Listing Broker’s compensation for the Listing Agent, no part of this compensation is for a Buyer Broker. The Last paragraph of Section 11 is for a Listing Broker with an unrepresented Buyer NOT a Dual Agent. A Listing Agent who also represents a Buyer would have compensation agreement with the buyer in an Exclusive Buyer Agent Agreement.

GLAR’s Role

GLAR does not regulate brokerage business models or compensation structures. Each broker determines how compensation is handled within their firm.

This guidance addresses only how the GLAR Listing Agreement must be completed in order to remain compliant with the settlement.

If a Seller Wishes to Authorize Buyer Broker Compensation

If a seller chooses to authorize compensation to a buyer broker:

  • The authorization cannot appear in the pre-printed sections of the Listing Agreement.
  • The authorization may not be entered into the MLS.

Instead, authorization must be documented:

  • In Section 29 – Other Provisions of the Listing Agreement, or
  • In a separate Addendum to the Listing Agreement.

Required NAR Settlement Language

If compensation is authorized in Section 29 (or in an Addendum), the language must fully comply with the NAR Settlement requirements.

The provision must clearly state:

  • That any compensation offered is subject to seller authorization
  • That the compensation is not being offered through the MLS
  • That the compensation will not be displayed in the MLS
  • The amount or method of calculation is clearly defined, including:
    • Who the compensation is being offered to
    • What percentage or dollar amount is being offered to a buyer broker.
    • Buyer Broker may not receive more compensation than what their Buyer Agency Agreement allows for.

Incomplete or vague language is not sufficient.
Addenda must accompany the Listing Agreement when used.

The authorization must:

  • Be in writing
  • Be clear and specific
  • Be included in Section 29 (or an Addendum) before any representation of compensation is communicated

Important Compliance Reminders

  • Compensation offers may not be published in the MLS.
  • The pre-printed Listing Agreement may not be altered.
  • Any seller authorization for buyer broker compensation must appear only in Section 29 or in an Addendum and must contain all required NAR Settlement language.

If Compensation Is Requested Later

If buyer broker compensation was not authorized by the seller in the original Listing Agreement but is later requested during a transaction, that request must be addressed in the Purchase Agreement, as negotiated between the parties.

Final Clarification

GLAR is not directing whether compensation should or should not be offered. We are clarifying how the Listing Agreement must be completed to ensure compliance with MLS and NAR policy.

If you have legal questions about drafting language, please consult your broker or legal counsel.

Our goal is clarity, consistency, and full compliance across the marketplace.