Florida By Owner Flat Fee MLS!

Flat Fee MLS

Florida Flat fee MLS (a.k.a For Sale By Owner MLS, FSBO MLS, Fixed Rate MLS, Fee For Service MLS, and limited service MLS) is a term used to describe a practice in Florida whereby realtors place pertinent information about a Florida property for sale into the database of a Florida local Multiple Listing Service (MLS) for a set fee or dollar amount as opposed to a commission based on the contract selling price of the property. The seller’s home is essentially marketed in cyberspace (i.e. cyberspace home selling) for a specific period of time (or until sold) for this one time flat (or fixed) fee.

No Brokerage Relationship Notice

FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES WHO HAVE NO BROKERAGE RELATIONSHIP WITH A POTENTIAL SELLER OR BUYER DISCLOSE THEIR DUTIES TO SELLERS AND BUYERS. 1. Dealing honestly and fairly; 2. Disclosing all known facts that materially affect the value of residential real property which are not readily observable to the buyer. 3. Accounting for all funds entrusted to the licensee.

Listing Broker

The broker in a multiple-listing situation from whose office a listing agreement is initiated, as opposed to the selling broker, from whose office negotiations leading up to a sale are initiated. The listing broker and the selling broker may be the same person.

Cooperating Broker

MLS Rules require that its members offer compensation to other members who bring them contractual offers that result in a successful closing. The selling broker (buyer’s agent) who secured the purchaser is referred to as the cooperating broker that assists the listing broker in selling the property. The cooperating broker must look to the listing broker for a commission. The brokers agree to a commission split.

The fee paid to the buyer’s broker (cooperating broker) is usually 2 to 3.5 percent of the contract sales price. The title agent conducting the closing will be be instructed, pursuant to the purchase and sales agreement (or listing agreement), to disburse any fees due to the cooperating Broker.

Exclusive Agency Listing Agreement

Most commonly used with flat fee MLS. A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner’s stated terms, for a commission. The owner reserves the right to sell without paying anyone a commission if he or she sells to a prospect who has not been introduced or claimed by the broker. Most commonly used with Flat fee MLS listings or limited service business models.

Buyers Agent

Same as cooperating broker and selling agent.

The MLS (Multiple Listing Service)

The MLS (Multiple Listing Service) is a computerized database that enables realtors to display real time, real property listing information, so that authorized participants, as well as the public, can view and evaluate listings. The MLS serves as a means by which authorized participants (listing brokers representing sellers) make blanket unilateral offers of cooperation and compensation to other authorized participants (co-operating brokers representing buyers). MLS participants actively show and sell homes that are listed by other participants (member realtors). This process provides the basis upon which the Broker, who is working with the buyer and referred to as the Cooperating Broker, earns a commission. A cooperating broker’s entitlement to compensation is determined by the broker’s performance as procuring cause of sale or lease. 75% of all properties sold are sold through the MLS.

Limited Service Listings or MLS Entry-Only Listings For FSBO Sellers

Listing agreements under which the listing broker will not provide one, or more, of the following services:

a. arrange appointments for cooperating brokers to show listed property to potential purchasers but instead gives cooperating brokers authority to make such appointments directly with the seller(s)

b. accept and present to the seller(s) offers to purchase procured by cooperating brokers but instead gives cooperating brokers authority to present offers to purchase directly to the seller(s)

c. advise the seller(s) as to the merits of offers to purchase

d. assist the seller(s) in developing, communicating, or presenting counter-offers

e. participate on the seller’s(s’) behalf in negotiations leading to the sale of the listed property. These listings will be identified with an appropriate code or symbol (e.g., LR or LS) in MLS compilations so potential cooperating brokers will be aware of the extent of the services the listing broker will provide to the seller(s), and any potential for cooperating brokers being asked to provide some or all of these services to listing brokers’ clients, prior to initiating efforts to show or sell the property.