What Is an Off-MLS Compensation Agreement in Real Estate?

🔎 What “Off-MLS” Means After the NAR Settlement

Under the NAR settlement, MLS platforms can no longer display buyer-agent compensation. This eliminates the traditional “BAC” field and requires all compensation to be communicated privately and off-MLS.

• No commission offers in MLS remarks or fields
• No percentage or flat-fee BAC displayed on listings
• All compensation must be written and delivered off-MLS
• Offers of compensation are now fully negotiable

To learn who pays buyer agents under the new rules, see: Who Pays the Buyer’s Agent After the NAR Settlement?

📄 Two Types of Off-MLS Compensation Agreements

1. Off-MLS Due to NAR Rules (Compensation Must Be Off-MLS)

This is the most common situation. Any seller offering compensation to a buyer’s agent must document it off-MLS using:

• A Seller-to-Buyer Agent Compensation Agreement
• A buyer-agent showing agreement
• An offer addendum stating compensation
• An email or written communication between brokers

Learn more about seller-side agreements in our guide: Seller-to-Buyer Agent Compensation Agreement.

2. Off-MLS Because the Property Is NOT Listed (True Off-Market)

FSBO sellers often receive inquiries from buyer agents even when the property is not on the MLS. In these cases, agents typically request a written compensation agreement to confirm how they will be paid if their buyer closes.

• Common for off-market FSBO homes
• Useful when testing the market pre-listing
• Used when an agent brings a buyer directly without MLS exposure

To learn what makes a seller “FSBO,” visit: What Is FSBO in Real Estate?

🏡 Why FSBO & Flat Fee MLS Sellers Use Off-MLS Agreements

FSBO and Flat Fee MLS listings do not include buyer-agent compensation in the listing agreement. Since MLSs are prohibited from showing compensation, these agreements give sellers full flexibility to:

• Offer 2–3% to encourage showings
• Offer a reduced rate (1% or flat fee)
• Offer $0 for direct buyers
• Stay compliant by keeping compensation off-MLS

To see how FSBO sellers use Flat Fee MLS listings, visit: What Is Flat Fee MLS?

📌 Common Examples of Off-MLS Compensation Agreements

• Traditional: Seller offers 2–3% off-MLS to buyer’s agent
• Flat fee: Seller offers a one-time fee (e.g., $2,500)
• Reduced amount: Seller offers 1% or negotiated fee
• FSBO off-market: Agent brings a buyer to an unlisted home
• $0 compensation: Direct buyer purchases without an agent

To compare listing methods, visit: Flat Fee MLS Plans.

✅ Off-MLS Compensation Agreement Checklist

• Confirm the compensation amount (flat fee or percentage)
• Ensure the form is a regional standard REALTOR® agreement — see What Is a REALTOR in Real Estate?
• Select the correct checkbox for who pays (seller or buyer)
• Verify compensation is documented off-MLS for compliance
• Attach agreement to the offer when applicable
• Coordinate with your assigned Realtor or the buyer’s agent if needed
• Check impacts on seller closing costs

❓ Off-MLS Compensation Agreement FAQs

Why must compensation be off-MLS?

Under the NAR settlement, MLS platforms are prohibited from displaying offers of buyer-agent compensation. All offers must be communicated off-MLS through written agreements or direct communication.

Who provides the compensation form?

Brokerless does not provide legal forms. Your assigned Realtor may supply the regional form when appropriate, and buyer agents often provide it directly.

Can this be used for off-market FSBO transactions?

Yes. Many buyer agents request an off-MLS compensation agreement when bringing a buyer to a property that is not listed on the MLS.

Is this the same as a buyer-agent compensation agreement?

No. A buyer-agent compensation agreement is between a buyer and their agent. An off-MLS compensation agreement involves a seller paying a buyer’s agent. See: Buyer Agent Compensation Agreement.

Ready to List on the MLS Without Paying 6%?

Get full MLS exposure with no required buyer-agent commission.