Steering and the New MLS Ruling

In the real estate industry, "steering" refers to the unethical practice of buyer agents guiding clients toward properties with higher commission payouts instead of those best suited to their preferences. To combat this, a new ruling requires buyer agents to have signed representation agreements with their clients before showing properties. This helps ensure that agents are working in the best interests of their clients, rather than being influenced by commission incentives.

By requiring transparency around cooperating commission details and detaching agent compensation from the listing price, this new rule aims to reduce steering practices. Buyer agents are now compensated based on pre-negotiated agreements, which ensures that their compensation does not influence which properties they recommend.

How CommissionSync Avoids Contributing to Steering Practices

CommissionSync’s Neutral Role in Commission Sharing

CommissionSync, a platform designed to streamline the sharing of commission details between listing agents and buyer agents, plays a vital role in supporting the transparency goals set by the new MLS rules. It’s important to note that CommissionSync does not participate in, nor does it facilitate, steering.

Instead, CommissionSync acts as a neutral communication tool, forwarding cooperating commission details provided by listing agents to buyer agents upon request. This ensures compliance with the anti-steering rules while maintaining transparency and fairness. Importantly, CommissionSync does not influence which properties buyer agents show their clients, nor does it provide preferential treatment based on commission offers.

The Impact of the New Anti-Steering Rule

With the new MLS ruling in place, buyer agents must obtain a signed representation agreement before showing homes. This rule aims to prevent agents from guiding buyers toward properties offering higher commissions instead of those aligned with the buyer’s preferences.

This transparency means that buyer agents must know the cooperating commission details before fully informing their clients about what compensation will be due. CommissionSync helps facilitate this by providing these details in a private and controlled manner, ensuring compliance with anti-steering regulations.

How CommissionSync Adheres to Anti-Steering Regulations

Private, Agent-Driven Communication

CommissionSync operates as a private communication tool between listing agents and buyer’s agents. Compensation details are entered directly by the listing agent and only shared with buyer agents upon specific request. This private, agent-driven approach ensures that the flow of commission details remains direct and confidential.

By keeping compensation details private, CommissionSync avoids the broad distribution or aggregation of commission offers that could influence buyer agents in steering clients toward specific listings.

No Public Aggregation or Data Sharing

Unlike platforms that publicly broadcast commission details, CommissionSync does not publicly share or aggregate cooperating commission offers. All information on the platform is securely stored and only accessible to authorized individuals involved in a specific transaction. This controlled access helps to avoid the creation of any kind of public marketplace for commission offers.

In this way, CommissionSync remains aligned with the intent of the anti-steering rule—ensuring compensation details are not publicly broadcasted to influence agents' behavior.

Complete Separation from MLS Data

Another key feature of CommissionSync is its independence from MLS data. The platform does not pull, aggregate, or interact with any MLS data feeds. Instead, all commission details are provided directly by listing agents, ensuring that the platform operates separately from MLS rules and complies with anti-steering regulations.

This separation further supports the integrity of the real estate transaction process by ensuring that compensation information is not influenced by external MLS data or feeds.

Expert Approval and Compliance

Reviewed by Industry Professionals

CommissionSync has been reviewed and approved by experienced brokers and real estate attorneys to ensure its compliance with NAR regulations. These industry experts confirm that CommissionSync meets current standards and operates within the bounds of the anti-steering rule.

By maintaining private, controlled communication and avoiding any overlap with MLS data, CommissionSync is designed to comply with the most recent regulations and protect agents from potential steering violations.

CommissionSync’s Role in Ensuring Transparency and Compliance

In summary, CommissionSync does not contribute to steering practices. By operating as a neutral platform that forwards cooperating commission details, the tool ensures compliance with the new MLS rules without influencing agents’ decision-making.

The platform’s commitment to transparency, private agent-driven communication, and separation from MLS data positions it as a valuable resource for agents looking to remain compliant with the latest regulations while protecting the integrity of their real estate transactions.

By facilitating transparent and ethical practices, CommissionSync supports the ongoing effort to eliminate steering in the real estate industry.

Debunking Common Objections About CommissionSync and Steering

Despite the clarity in how CommissionSync operates, some misconceptions and objections may arise about its role in the real estate process, particularly in relation to steering. Let’s address and debunk these common objections.

Objection 1: "CommissionSync Encourages Steering by Sharing Commission Information"

Debunked:
One might argue that by sharing cooperating commission details, CommissionSync could encourage steering, but this is far from the truth. CommissionSync merely forwards the commission details provided by the listing agent to buyer’s agents upon request. The platform acts as a passive tool without influencing the decision-making process or suggesting which properties agents should show their clients.

Because buyer’s agents are now required to have signed representation agreements before showing properties, their focus is on serving their client’s preferences, not commissions. CommissionSync simply facilitates transparency, allowing buyer’s agents to fully inform their clients of all relevant financial details without bias.

Objection 2: "CommissionSync's Role in Providing Commission Details Can Still Influence Buyer Agents"

Debunked:
Some might believe that knowing the commission details could still sway a buyer agent’s behavior. However, buyer agents are legally obligated to act in their client’s best interest, with a signed representation agreement protecting the buyer from unethical behavior like steering.

CommissionSync simply provides required information in a transparent, neutral manner. It does not incentivize agents to choose properties based on commission offers, nor does it highlight properties based on higher commissions. The focus remains entirely on the buyer’s needs and preferences.

Objection 3: "Sharing Commissions Violates the Principle of Keeping Commission Information Private"

Debunked:
While some may argue that sharing commission details compromises privacy, the reality is that CommissionSync ensures commission information is kept private and secure. The platform does not publicly broadcast commission details, nor does it create a marketplace for such information. The details are only shared between authorized agents involved in a specific transaction.

This controlled, agent-driven approach ensures that the cooperating commission details are disclosed only when necessary, and only to the appropriate parties—buyer agents who have requested the information. This keeps the process compliant and maintains the integrity of the commission-sharing process.

Objection 4: "CommissionSync Could Be Misused to Favor Listings with Higher Commissions"

Debunked:
There’s a concern that platforms like CommissionSync could be misused by buyer agents to favor listings with higher commissions. However, CommissionSync does not provide any ranking, filtering, or preference for listings based on commission offers. It simply serves as a neutral conduit for commission information, ensuring that all relevant details are available in a transparent and fair manner.

Moreover, the new MLS rules require buyer agents to work under a signed representation agreement with their clients, meaning that their responsibility is to serve their clients’ interests, not chase higher commissions. CommissionSync's neutral operation reinforces this by not influencing which properties are recommended to clients.