Minnesota guide

MLS Commission Advertising Rules Post-NAR Settlement

Q: Why does the Minnesota MLS no longer show how much the buyer's agent will be paid?

The NAR settlement that took effect on August 17, 2024 required NorthstarMLS and every other Minnesota MLS to remove the offer-of-compensation field from listing data, and showing those numbers anywhere in the listing is now an MLS rule violation.

Q: How do I find out what a particular seller is willing to pay my agent?

Because that information is no longer allowed on the MLS, your agent has to contact the listing agent or seller directly to ask whether the seller will consider a concession to cover buyer-side compensation on that specific home.

Since the NAR settlement took effect on August 17, 2024, Minnesota MLS platforms like NorthstarMLS no longer show what a seller is offering to pay your agent.

Reading as buyer.

TL;DR

Since the settlement took effect on August 17, 2024, Minnesota platforms like NorthstarMLS no longer show what a seller is offering to pay your agent. That means you and your agent will agree in writing on what your agent earns before you start touring homes, using a buyer representation agreement. Your agent's pay can still come from the seller as a concession in the offer, from you directly, or from a separate written agreement, but the number is no longer baked into the listing.

Before you start — 7 things to know

On NorthstarMLS and every other Minnesota , the field that used to show how much a seller was offering to pay a buyer's agent has been removed as of August 17, 2024.
You will sign a written buyer representation agreement with your agent before touring homes, and that agreement spells out exactly what your agent gets paid.
Your agent's pay can come from three places in Minnesota: the seller paying it as a concession in the purchase agreement, you paying your agent directly, or a separate written agreement between the seller's brokerage and your agent's brokerage.
If the seller agrees to cover your agent's fee as a concession, that amount is credited against what you owe your agent under the buyer representation agreement, so you do not pay it twice.
Because compensation cannot be advertised on the , your agent will need to ask the listing agent or seller directly whether the seller is open to paying buyer-side compensation on a specific home.
Listings that try to sneak compensation offers into the public remarks or agent-only remarks fields violate Minnesota rules and can be fined, so you should not see those numbers in the listing itself.
If no seller concession is offered on a home you want, you may need to either pay your agent the difference out of pocket at closing or ask the seller in writing to cover it as part of your offer.

The timeline — step by step

Before you tour homes with an agent, you sign a buyer representation agreement that states the compensation your agent will be paid.
When you find a home you like, your agent contacts the listing side to find out whether the seller is willing to pay buyer-agent compensation, since that information is no longer on the listing.
When you write the offer, your agent includes any seller concession to cover buyer-side compensation as a term inside the purchase agreement itself.
If the seller accepts the offer, the agreed concession becomes part of the executed purchase agreement and shows up as a credit on your closing statement.
At closing, the seller-paid concession is applied against the compensation amount you owe under the buyer representation agreement so you are not charged for it again.
If the seller refuses to cover any buyer-side compensation, you and your agent decide whether to raise your offer, walk away, or have you pay your agent directly under the buyer representation agreement.

Common questions

Why does the Minnesota [[MLS]] no longer show how much the buyer's agent will be paid?

The settlement that took effect on August 17, 2024 required NorthstarMLS and every other Minnesota to remove the offer-of-compensation field from listing data, and showing those numbers anywhere in the listing is now an rule violation.

Do I have to pay my real estate agent out of my own pocket now?

Not necessarily — in Minnesota, your agent can still be paid through a seller concession written into the purchase agreement, and only if the seller refuses to cover it would you need to pay your agent directly under your buyer representation agreement.

How do I find out what a particular seller is willing to pay my agent?

Because that information is no longer allowed on the , your agent has to contact the listing agent or seller directly to ask whether the seller will consider a concession to cover buyer-side compensation on that specific home.

Can I just skip signing a buyer representation agreement to keep things flexible?

No — under the post-settlement rules in Minnesota, your agent must have a signed buyer representation agreement with you before touring homes, and that agreement is what locks in how your agent gets paid.

What happens if the seller agrees to pay more than my agent's fee?

Concessions are usually capped at the actual compensation owed under your buyer representation agreement, so any extra amount the seller offers above what your agent charges typically does not become cash to you and instead is simply not paid.

Is it still common for Minnesota sellers to pay the buyer's agent?

Yes — having the seller cover buyer-side compensation as a concession in the purchase agreement is currently the most common path in Minnesota because it widens the pool of buyers who can afford the home.

Glossary

2 terms

NAR — National Association of Realtors: The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service: The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

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