The stockbroker reserves the right to determine the amount of compensation available to sub-agents, buying agents or brokers who operate in other agencies or other non-agency capabilities that may be equal or different. (Review 11/96) When submitting real estate with the Multiple Listing Service, participants make lump sum unilateral compensation offers to other MLS participants and therefore set out on each list submitted to the service the compensation that the Listing Broker offers to other MLS participants. This is necessary because cooperating participants have the right to know: what their compensation will be before starting their sales efforts. as indicated by MLS, provided that the broker informs the other broker in writing before filing an offer to purchase and provided that the change in compensation indicated is not the result of an agreement between all participants or other participants in the service. Any excess compensation offer must be expressed either as a percentage of the gross sale price or as a lump sum. (Modified 05/10) Note 3: Several registration services should allow participants to disclose possible sales opportunities to other participants. Short selling is defined as a transaction in which the sale of securities is not sufficient to pay the sum of all the pledge and sales costs and where the seller does not provide sufficient liquidity to remedy all the defects. Several ad services may require, at local discretion, that participants disclose short selling when participants know that a transaction is a potential short sale. In any event, when a participant discloses a possible short sale, he must also be allowed to communicate to other participants how any reduction in the gross commission set out in the listing contract that the lender requires as a condition of authorization to sell is distributed between the listing and the cooperating participants. If participants are allowed to: Inform other participants of the distribution between the listing and the cooperating participants of the reduction in the gross commission requested by the lender as a precondition for the approval of the sale, Multiple filing services may, at local discretion, require list participants to communicate in writing to co-operated participants the overall reduction in gross commission and the amount of the reduction in compensation to be paid to the cooperating broker within hours of receiving the lender`s note. All confidential disclosures and confidential information relating to the short sale must be disclosed through special boxes or confidential “observations” that are only available to subscribers and subscribers. (Modified 5/10) M While the compensation offers of stockbrokers to brokers who have cooperated through MLS are unconditional (unless MLS rules create specific exceptions, as stated elsewhere in this policy statement), the obligation of a stockbroker may: to compensate a cooperating broker who was the cause of the sale (or leasing) when an arbitration has established that, without the fault of the listing broker and by exercising good faith and due diligence, it was impossible or financially impossible for the broker to collect a commission in accordance with the listing agreement. In such cases, the right to cooperative compensation offered through MLS would be an issue that should be determined by an arbitration body on the basis of all relevant facts and circumstances, including, but not limited to, the reason why it was impossible or financially impossible for the broker to recover some or all of the commission set out in the listing agreement; At what point in the transaction did the stockbroker know (or should have known) that some or all of the commission set out in the listing agreement might not be paid; and how quickly the broker had informed the cooperating brokers that the commission set in the listing agreement might not be paid.