New Law Permitting Agent Compensation in a Purchase Contract
QUESTION: I heard there is a new law that now permits agent commissions to be in the Offer to Purchase and Contract (Form 2-T). Is this true? If so, how will this change real estate brokerage in North Carolina going forward?
ANSWER: For many years, North Carolina prohibited brokers from including their commission or cooperative compensation in any pre-printed purchase contract, including Form 2-T. That prohibition is no longer in effect.
On July 2, 2025, Session Law 2025-52 (Senate Bill 690) was enacted, which requires the North Carolina Real Estate Commission to adopt a rule allowing real estate brokers to use pre-printed sales contracts that include terms related to broker compensation—including cooperative compensation and the potential forfeiture of earnest money as compensation. The new law is effective immediately, and brokers may now use pre-printed purchase contracts with commissions even before the permanent rule is adopted by the Commission.
If your firm wishes, it may continue to negotiate commissions just as it does now. There is no requirement to change because of the new law. However, if your firm wishes to take advantage of this new law, there are several things you can do that you could not do before:
1. Attach Form 220 to Form 2-T or any other standard form contract as an addendum. You may need an attorney help you with this option. For example, in Form 220, you might want to strike the language above the signatures as follows: “DO NOT UPLOAD THIS FORM TO THE MLS OR ATTACH IT TO A PURCHASE CONTRACT.” And, on the other addenda line in paragraph 14 of Form 2-T, you will need to add Form 220 to make it clear that it is part of the contract.
2. Attach a custom, attorney-drafted addendum to address agent commissions. If you are not comfortable using Form 220, you may have an attorney draft a custom addendum to address agent commissions and the potential disposition of the Earnest Money Deposit.
3. Insert custom language in a purchase contract indicating the amount of the seller concessions, if any, that will be used for agent commissions. Again, you may need an attorney to help you insert this kind of language if the lender does not have verbiage they wish to propose.
NC REALTORS® will be looking at formal forms changes soon to accommodate the new law. In the meantime, you may use any of the above options to help you communicate commissions in your transaction.
Release Date: 07/17/2025
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