Dual Variable Y/N in the MLS is a disclosure question only, hence the Y/N.
In a nutshell dual variable means that the seller will pay their listing broker, Broker A, X% if Broker A is the procuring cause of the successful transaction or seller will pay listing broker, Broker A, Y% if Broker B is the procuring cause of the successful transaction for the property.
NAR Code of Ethics, Standard of Practice 3-4.
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2 Comments
If there are two potential commission rates in the listing agreement (dual and variable = Y), is the buyer broker commission listed in MLS the rate that would apply if the listing agent is NOT the procuring cause?
@Margaret here is the answer from our Compliance department.
“No. The commission rate on the listing agreement is between listing broker and seller only. What seller pays listing broker has nothing to do with what listing broker offers through the MLS to other MLS participants. Dual Variable Y/N in the MLS is for disclosure only. Dual Variable as you know, means that seller will pay listing broker A% if listing broker is procuring cause, or seller will pay listing broker B% if outside broker is procuring cause.”
I hope this answers your question and thank you for it.