Legal Matters: Q1 2025

A recap of resources, updates and guidance from the IAR Legal Department from the first quarter of 2025.

JUST IN: NAR Announces New ‘Multiple Listing Options’ MLS Policy Alongside Clear Cooperation

On Tuesday (March 25th), NAR announced that it will expand listing options for sellers while preserving equal access to property information for buyers through their brokers by adding a new MLS policy, “Multiple Listing Options for Sellers” alongside the existing Clear Cooperation Policy (CCP):

The new policy creates a “delayed marketing exempt listing” option for sellers, who can instruct their brokers to enter their property information into the MLS but not make it available on the public-facing MLS platform, via IDX feed or other syndication for marketing or promotion by brokers beyond the listing brokerage.
During this ‘delayed marketing period,” the listing broker may share these properties one-on-one with other brokers, but not in a broad-based way; other REALTORS® may also access the listing information on the MLS and share it with prospective buyers (but not through syndicated marketing).
CCP submission requirements remain in effect – the public marketing of listings (beyond the one-on-one, broker-to-broker communications described above) still triggers the mandatory one-day MLS submission.
Each MLS will determine the allowable length of the delayed marketing period for their service area.
Listing agents representing sellers who choose to delay the public marketing of their listing must secure from their seller a signed disclosure documenting the seller’s informed consent to waive the benefits of immediate public marketing through IDX and syndication. (Seller disclosure is required for both delayed marketing exempt listings and office exclusive exempt listings.)
The new policy is effective immediately, but MLSs have until September 30th to implement “Multiple Listing Options for Sellers.”
We’ll be communicating more details and guidance on what the new policy means for REALTORS® and consumers as soon as possible, acknowledging that some terms will be set by individual MLSs (e.g. the length of the delayed marketing period).
However, we wanted to help spread the word about these important changes as soon as possible to IAR members and share that additional information is also available at Facts.REALTOR; download the initial questions and answers on the policy below:

MULTIPLE LISTING OPTIONS Q&A

The Latest Legal Hotline Questions and Answers:

IAR Legal and Regulatory Compliance Counsel Anne Johnson addresses the latest questions from the Legal Hotline in this new video update, from sellers with multiple listing agreements to sellers who won't agree to clean up the trash from their yards before moving on:

Download the Legal Q&A Compilation - Updated for 2025:

Each year, IAR’s Legal Department fields thousands of calls through the Legal Hotline as well as hearing directly from members at state and local association events and other forums.

In early March, the Legal Department released an updated compilation of common questions from the Legal Hotline, including revisions to reflect the latest guidance on buyer agency agreements, broker compensation and changes to state law and MLS rules as a result of the resolution of the NAR class action seller lawsuits. Click the button to view and download the PDF of this Legal Q&A Compilation:

LEGAL Q&A COMPILATION

2024 Professional Standards Trends:

IAR General Counsel Richelle Cohen Mossler talks 2024 professional standards trends in this two-part video update, covering the most common Code of Ethics complaints and violations last year.

Part one (below) deals with issues in Articles 1, 2, 3 and 12; the second part puts a singular spotlight on the rise in complaints related to Article 15, especially via social media.

Forms Changes Q&A:

After a few weeks of fielding Legal Hotline calls about the 2025 editions of IAR legal forms, Senior Staff Counsel Kelly Shonborn answered several recurring questions in this video update from February:

Showing Homes within Agency Law and MLS Rules:

Listing brokers do not need to secure agency agreements before showing homes to unrepresented prospective buyers:

A recurring question that Kelly addresses again in the video above: A listing broker does not need to secure a buyer agreement with an unrepresented buyer to show them a home on the MLS - the listing agent represents only the seller and is not "working with" the prospective buyer under Indiana agency law or the terms of the NAR settlement.

The listing broker could ask the buyer if they would agree to limited agency, subject to written agreement by both the seller client and the buyer; in that case, the listing broker could sign an exclusive agency contract with the buyer and proceed.

If the buyer wishes to remain unrepresented and view the property, the listing broker should execute a “No Buyer Agency Acknowledgement” form with the buyer to confirm this status and proceed - but have no conversation with such buyer that could constitute an implied agency relationship.

IAR cautions members against so-called "touring agreements:"

Also on the topic of touring homes under the new MLS rules (and Indiana agency law), the Legal Department offered guidance to members on so-called ‘touring agreements’ that purport to create a non-agency relationship between a broker and prospective buyer limited to showing a home.

In short: The NAR settlement requires a written agreement before a REALTOR® “working with” a prospective buyer can show that buyer a home listed on the MLS. In Indiana, if you are “working with” (providing brokerage services to) a buyer, then an agency relationship has been created. So these agreements are likely inconsistent with state agency law while also skirting the spirit of the settlement (click below to read more):

TOURING AGREEMENT GUIDANCE

Finally, don't let a scheduling conflict lead you astray:

And remember that buyer agency agreements (like listing agreements) are held by the brokerage company but do not extend beyond the brokerage and licensed brokers under the supervision of the company's managing broker. If you have a scheduling conflict with a potential showing, you may coordinate with a broker within your company to 'fill in,' but do not turn to brokers or parties outside your brokerage to show a home on your behalf.

More Recent Legal Updates:

Vacant Land Scams on the Rise?

We’ve received an upturn in reports from members and local associations of fraudulent “sellers” purporting to be the owners of vacant properties. In these land scams, criminals will identify target properties – often vacant or undeveloped parcels, rental homes or other ‘non-homestead’ properties that are free of a mortgage or other liens – and attempt to impersonate the rightful owner while attempting to lure brokers into listing the property on the MLS. The impersonator will typically push to list the property below market value in pursuit of a quick (preferably cash) offer and an expedited closing that allows them to abscond before the legitimate owner, would-be buyer or broker catch on.

IAR General Counsel Richelle Cohen Mossler recorded this video about similar schemes back in 2023:

In the first video of this edition of Legal Matters, IAR Legal and Regulatory Compliance Counsel Anne Johnson also addresses a recent inquiry about responding to potential scams – advising the questioner to locate and alert the rightful owner, the MLS (to remove the fraudulent listing if it has already been listed) and law enforcement.

NAR has warned members about a rise in attempted land scams nationally, with Senior Counsel Charlie Lee providing key ‘red flags’ that should put REALTORS® on alert to a potential fraudulent sale attempt:

The “seller” requests to sell a vacant property for less than its fair market value.
The “seller” only communicates electronically (many of these imposters are out of state or from a different country and will decline face-to-face meetings).
The “seller” typically requests a remote closing using a remote notary—whom they’ll arrange on their own; the scammer may even impersonate the notary and provide fraudulent documents at closing.

U.S. Brokerages Now Exempt from Beneficial Ownership Reporting:

In 2021, Congress passed the federal Anti-Money Laundering and Corporate Transparency Acts to close anti-money laundering loopholes; these laws also created new beneficial business ownership reporting requirements that may have impacted real estate brokerages.

(IAR Legal Counsel Richelle Cohen Mossler explained ownership reporting requirements and new reporting and recordkeeping rules on cash real estate purchases and property transfers to trusts or business entities taking effect in this video.)

Now the Treasury Department and Financial Crimes Enforcement Network (FinCEN) announced that U.S. owned companies are exempt from any beneficial ownership reporting requirements, according to this alert. We will continue to update members on the status of rules on the documentation of non-financed (cash) real estate transactions.

Register for In-Person CE on Indiana Agency Law at the IAR Summer Summit:

There are still seats available for the optional in-person Continuing Education course on Indiana agency law at the IAR Summer Summit (Monday, May 5th in Madison, Indiana). "A Deep Dive Into Indiana Agency Law" is taught by IAR’s Legal Department, covering critical topics for brokers working under new buyer representation rules. (An additional $35 fee applies for this optional Monday morning session.)

DETAILS & REGISTRATION