Dual Commission Arrangements on the MLS (“VAR” field)

Note: This is the ‘VAR’ field on the MLS

A dual commission arrangement refers to those situations where a seller and a listing agent/broker have agreed that the amount of commission paid by the seller will be reduced in the event that the property is sold by the listing agent.

If you’re the listing agent entering into this type of arrangement, please take the following steps:

• Write the details of the dual commission arrangement in the Additional Provisions field (under Brokerage Fee) in the listing contract. These details must be specific.
• The MLS is unable to accept “negotiable” in this field for the reason that other agents might request this information in a multiple offer situation (see information below – “If you’re a buyer’s agent.”).
• Include the following statement in the Agent Only Remarks or the Commission Comments field on the MLS: “Dual commission arrangement exists.”
• Check the VAR box as Yes on the MLS. Below is a screenshot for purposes of an example:

If you are a buyer’s agent and you see the statement “dual commission arrangement exists” on the MLS, you may wish to ask some very important questions of the listing agent before writing your offer, such as:

• Is this a multiple-offer situation?
• Was one of the offers written by the listing agent?
• If yes, what is the difference between what the seller will pay on an offer written by a cooperating broker vs. what they will pay if sold by the listing agent?

Section 4.1 of the MLS Rules & Regulations requires that the listing broker disclose that differential, if asked. However, the listing broker is not required to volunteer that information.

The MLS Policy Committee once considered amending Section 4.1 of the MLS Rules & Regulations to require that the differential be automatically disclosed to anyone writing an offer on the property, but ultimately decided that such a revision isn’t necessary. Rather, it preferred to remind buyer’s agents that they are permitted to ask these questions.

Note: Not to add confusion, but please keep in mind that a dual commission arrangement is different than exclusive agency. Exclusive agency is a listing where the seller has the right to sell the listing himself/herself without payment of a commission (or perhaps at a reduced rate). This disclosure is required because the seller might attempt to entice a buyer away from a buyer’s agent.