Is an agreement between brokers for a residential lease required for MLS offers of compensation?
10/15/2015 | Author: Editorial Staff
I listed a rental property in the MLS and offered compensation to other MLS participants. Another broker who is an MLS participant saw my listing and submitted her client’s lease application to me. After the landlord accepted her client’s application and executed the lease, the broker told me I must sign the Agreement Between Brokers for Residential Leases. Do I have to sign the agreement?
No. An offer of compensation in the MLS becomes enforceable when the cooperating broker is the procuring cause. (Read more about procuring cause in this post.) No other agreement is necessary.
Some brokers find the Agreement Between Brokers for Residential Leases (TAR 2002) beneficial, since it specifies a time frame for payment, and covers compensation for lease renewals and sales. Still, an agreement between brokers is not required to enforce the offer of compensation specified in the MLS.
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