Are you using the Special Listing Type field (a required field in Matrix) correctly?
In case you have ever been confused by the words “Exclusion” or “Variable Commission” — or were just unsure of what option to select for Special Listing Type — here is what each option means:
— Option #1: “Exclusion”
When there is an exempted individual/entity that is named in the listing agreement, for whom/which the seller is not obligated to pay a commission to the listing broker if the property is sold to that individual/entity. This is sometimes also referred to as a “named prospect.”
Example: Exclusion often occurs with previous FSBO listings — when the owner has been negotiating with a potential buyer and wants to exclude that buyer from the listing agreement and any potential commission obligations to the listing broker.
— Option #2: Exclusion/Variable Commission
This is when a listing has an Exclusion (per Option #1 above) AND a Variable Commission as defined by the National Association of Realtors® (NAR).
***See the NAR definition of Variable Commission within the explanation for Option #5.
Example: A listing agreement where the seller has exempted a buyer, and the seller and brokerage firm (“XYZ Realty”) have agreed that the seller will pay “x” percent if the brokerage firm brings the buyer, but will pay “y” percent if any other brokerage firm brings the buyer.
— Option #3: Not Applicable
Select this option if there is no Exclusion, Variable Commission or other circumstance, making it a special listing type.
— Option #4: Other
Select this option if there is another special circumstance — but do not use for Short Sales and Bank Owned listings. Per the MFRMLS Rules & Regulations, the Special Sale Provision field should be used for Short Sales and Bank Owned listings.
— Option #5: Variable Commission
According to the REALTOR® Code of Ethics, Variable Commission is when one amount of commission is payable if the listing broker’s firm is the procuring cause of sale/lease and a different amount of commission is payable if the sale/lease results through the efforts of the seller/landlord or a cooperating broker.
See the full definition from NAR below.
REALTOR® Code of Ethics Standard of Practice Definition for Variable Commission: Realtors®, acting as listing brokers, have an affirmative obligation to disclose the existence of dual or variable rate commission arrangements (i.e. listings where one amount of commission is payable if the listing broker’s firm is the procuring cause of sale/lease and a different amount of commission is payable if the sale/lease results through the efforts of the seller/landlord or a cooperating broker). The listing broker shall, as soon as practical, disclose the existence of such arrangements to potential cooperating brokers and shall, in response to inquiries from cooperating brokers, disclose the differential that would result in a cooperative transaction or in a sale/lease that results through the efforts of the seller/ landlord. If the cooperating broker is a buyer/tenant representative, the buyer/tenant representative must disclose such information to their client before the client makes an offer to purchase or lease.