A limited-service broker typically does not provide services normally associated with a full-service brokerage, hence “limited service.” The listing commonly requires that the seller pays a fee to any cooperating broker involved in the sale of the property. Canopy MLS must accept listings that, under state law, are legal exclusive right-to-sell or exclusive agency listings, and that offer compensation to cooperating brokers.
Limited-service listings must be identified by entering “no” in the “Full Service” field in the system 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.
A listing is considered “limited” if the listing broker will not provide one or more of the following services.
Agents often ask, “How do I list a property for which I am only being paid a fee to list with no other service provided? I see others doing it." To list a property in Canopy MLS, the following must be true.
Obligations for Cooperating Brokers. Section 3 of the Canopy MLS Rules and Regulations require cooperating brokers to report accepted offers and prices that are fully executed to the Listing Brokerage in writing within two (2) business days after the "Effective Date." Then the Listing Brokerage shall report accepted offers and prices that are fully executed to the MLS within two (2) business days after receiving notice from the Cooperating Brokerage.
Commissions on limited-service listings. Who pays the commission on a limited-service listing? Submitting a listing into MLS constitutes the listing broker’s agreement to offer compensation and cooperation to other MLS Member Participants. In other words, listing brokers must offer compensation to a cooperating broker (buyer agent and/or subagent) as either a percentage of the gross-sales price or a flat-dollar amount.
It is acceptable for the seller to agree to compensate a cooperating broker. However, the offer to compensate cooperating brokers is made through the MLS by the listing broker, and the listing broker is obligated to pay, and to arbitrate a dispute over, such compensation.