How do I negotiate buyer agent compensation using new Form 220?
QUESTION: I looked at the new Form 220 (Buyer Agent Compensation Addendum). I like how simple the re-drafted version appears, but I do notice a lot of differences. How should I use this new form? How do I explain it to the seller?
ANSWER: With the introduction of new Form 220, North Carolina will join a majority of jurisdictions in the United States that have moved toward the seller offering buyer agent compensation instead of the listing firm in residential transactions. Firms that wish to continue practicing firm-to-firm cooperative compensation may do so, but they will need to create their own forms.
The first step in the process starts with the Exclusive Right to Sell Listing Agreement (Form 101), where new paragraph 7(c) looks like:
The seller will begin by choosing whether to offer buyer agent compensation or not in the first two checkboxes. If your firm is using new Form 220, and the seller does authorize buyer agent compensation, then check the first option and fill in the blanks with what amount of compensation the seller wishes to offer.
This revised section of Form 101 is how the seller gives the listing firm the permission it needs to communicate with buyer agents. While you can take a sample Form 220 to the listing appointment and review it with the seller, there is no need for the seller to sign it at that time because it will be negotiated and signed with the purchase contract as an addendum.
The second step in the process is making sure the purchase contract reflects the agreement of the buyer and seller. If the buyer and seller negotiate contract terms and agree on an amount of buyer agent compensation, then Form 220 should be filled out and attached to the contract just like other addenda.
This means that Form 220 will most often be filled out by the buyer with the offer, and then sent to the seller for their acceptance, rejection, or counteroffer. Since the Offer to Purchase and Contract (Form 2-T) does not have a preset checkbox to add Form 220, Form 220 should be identified on the line for “other attorney or party drafted addenda.” Anytime Form 220 is an addendum, even now with the 2025 version of the form, then any change to Form 220 would constitute a counteroffer to the original offer.
Agents should note that any buyer agent compensation in Form 220 is in addition to Seller Concessions in paragraph 1(e) of Form 2-T. In Form 220, the parentheses right under the title state: “(Only use this form when Seller is providing a credit to Buyer in Form 2-T, Form 12-T, or Form 800-T.)” The word “credit” in this parenthetical is only referring to the credit being provided in Form 220, and not Seller Concessions in Form 2-T. Agents should be sure that these two different terms are negotiated correctly.
Release Date: 6/17/2026
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