Summary of January 2025 Changes to NC REALTORS® Residential Forms

The following forms have been revised effective January 2025. Click on the hyperlinks below for details.

1.     RE-DRAFTED Form 101 – Exclusive Listing Agreement

1.1.       Similar to the re-drafting of Form 201 last October, this agency agreement has been re-drafted to meet both member and consumer requests to simplify the standard forms. The Forms Committee believes that this re-draft will fit the current market much better than the existing version of Form 101. Also, like revised Form 201, the grace period for using this new form will be 30 days instead of the usual 60 days under NCR’s Forms Policy.

There is no need to convert existing agency agreements over to the new form. Members should just use the new forms going forward for new clients.

1.2.          Interim Guidelines for new Form 101. Formal Guidelines will be released to the Forms Library in July 2025.

Name of Seller and Firm – Fill in the complete legal name of each seller. Do not use shorthand names, abbreviations, or combine spouse’s names. Fill in the complete name of the agent’s firm, not the agent’s name, since the agreement is between Seller (all the sellers) and Firm. If Seller is a corporation, limited liability company, trust, or other legal entity, the entity should be named as Seller and a duly authorized officer, manager, trustee, or other legal representative of the entity should sign this Agreement on the entity’s behalf.

¶ 1 – This section describes the exclusive services provided by the Firm. Importantly, it retains the obligation that Seller cooperate with Firm and that Firm can assign another agent at any time.

¶ 2 – Insert the date the agency agreement will expire in the blank. The Real Estate Commission requires that any written agreement for brokerage services “shall provide for its existence for a definite period of time.” Although there is no rule which limits the period of time that the agreement can be in effect, the period of time should be reasonable, taking into account the period of time within which the objective of the agreement—selling the Seller’s property—can probably be accomplished. The Real Estate Commission rules also provide that an agreement for brokerage services cannot contain a provision that would require notice prior to termination. Although the form does not contain any such provision, agents are cautioned against inserting any “prior notice” or “automatic renewal” provision in the form.

If Seller is under contract when this agency agreement is set to expire, every effort should be made to extend the agency agreement to complete the transaction. If Seller refuses to extend, Firm still has a right to be paid so long as section 7 is satisfied. However, in order for an agent to have a clear right to assist Seller all the way to the end of the transaction, a written agency agreement should be in effect.

¶ 3 – Describe Seller’s Property in as much detail as possible. A copy of the Seller’s deed may be attached as an exhibit. Do not attempt to complete a metes and bound description as an exhibit. An attorney should be consulted if a metes and bounds description is necessary or if the information available is inadequate to clearly describe the Property.

New Form Feature: This section now has a box that can be checked to include additional parcels or lots. It is important to note, however, that additional parcels will be included in the definition of “Property” in this agency agreement. This means that multiple parcels must be sold at the same time and in the same transaction. If Firm is going to be paid on each parcel separately, then separate listing agreements should be used, or a custom addendum should be attached to this form.

Agents should note, however, that when it is time to write a purchase contract, it must also be adjusted to accommodate multiple parcels. This can be accomplished on a case-by-case basis with attorney-drafted custom addenda to the purchase contract.

¶ 4 – It is not necessary to cross out items that are listed in subsection (a) that are not on the Property. Any item that is leased or not owned by Seller must be identified in the blank space in subsection (b). Any fixture owned by Seller that will not convey must be identified in the blank space in subparagraph (c). If in doubt as to whether an item that Seller wishes to exclude from any sale is or is not a fixture, it is advisable to list the item to avoid a later dispute. If Seller wishes to put conditions on such fixtures, for example if Seller will convey solar panels only if a buyer can assume the associated loan with the solar panels, then such conditions should be identified in section 20 of the form.

¶ 5 – Insert the list price for the Property and indicate what terms, including types of financing a buyer might seek, the Seller is willing to accept by checking the appropriate box(es). If FHA or VA financing might be sought, Sellers should be made aware of the terms of the FHA/VA Addendum and that appraisals by such lenders might be binding for a period of time in the future.

¶ 6 – Seller must initial either “Public Marketing” or “Office Exclusive” in subsection (a). If “Public Marketing” is selected, check all applicable boxes. Note that checking the “Open Houses” box permits the Firm to hold open houses at such times as the Firm and the Seller may agree but does not require that open houses be held. The beginning of subsection (a) states that Seller “authorizes” Firm to conduct the marketing next to the boxes, but it does not state that Firm “must” do what is beside the boxes.

If “Coming Soon” Advertising is checked, also check whether a copy of any listing service restrictions and requirements pertaining to such advertising are or are not attached to the Listing Agreement, and the date that the status of the listing will be changed to “active.”

With respect to the “General Advertising” box, if the Seller desires to limit or prohibit such advertising, the Seller must complete a separate form confirming the extent to which such advertising will be limited or prohibited. NCAR Form 105 may be used for this purpose. As set out in Form 105, Seller should be clear that prohibiting automated estimates of the market value of the Property and third-party comments about the Property on broker IDX and VOW web sites will NOT prevent those from appearing on “third-party” web sites such as Zillow, Trulia, and Realtor.com.

In subsection (b), check the appropriate box to indicate whether Seller authorizes Firm to place lock/key boxes on the Property.

¶ 7 – MAJOR CHANGE. Prior versions of Form 101 contained a process where Firm charged a total listing fee to Seller and then shared part of that listing fee with cooperating agents, if authorized by Seller. This new version dramatically changes that process to conform better to new MLS rules.

(b) – In this subsection, only specify Firm’s Fee, and do not include any amount intended for cooperative compensation. If there are multiple parcels that have different fees per parcel, or other variable fee structure, be sure to specify such compensation in detail. Any transaction fees, or other Firm fees, should also be included in this section.

(c) – In this subsection, only specify the amount of cooperative compensation, if any, that will be offered. The checkboxes in this subsection provide Firm and Seller the ability to offer and pay cooperative compensation the same way cooperative compensation is negotiated in Form 220 (Cooperative Compensation Agreement).

(d) – Combine subsections (b) and (c) to give Seller the total cost of the Services.

Subsections (e) and (f) specify when Firm’s Fee is due and payable, but not cooperative compensation. Cooperative compensation must be paid as required in subsections (c)(i)-(ii).

¶ 8 – Indicate whether the Seller will or will not agree to obtain and pay for a home warranty by checking the appropriate box. If the Seller will provide a home warranty, insert the maximum amount that the Seller will pay, and insert the amount of any fee that the home warranty company will pay to the Firm for its assistance in obtaining the home warranty in the blank. If the Seller will not pay for a home warranty at the time of listing, insert “N/A” in the blank.

¶ 9 – Check the appropriate box whether Seller will obtain a home inspection. It should be noted that the listing firm is advising the Seller to obtain a home inspection in order to (i) provide proper evaluation of the condition of the Property, (ii) to allow for efforts to enhance its marketability, including appropriate pricing, and (iii) to reduce concerns of prospective buyers. It is generally recommended that a buyer have their own inspection performed and buyer should not rely upon the seller’s inspection report. Any material facts in a seller’s inspection report must be disclosed by Firm.

¶ 10 – Check the boxes in this section as appropriate. Previous versions of Form 101 automatically split the Earnest Money in the case of a buyer breach. Now, it is a negotiable term with the checkboxes.

¶ 11 – As with the Form 201 edits this past October, this dual agency section has been modified to be easier to read, understand, and explain to a client. Though this section is significantly shorter than the old version, it contains the same principles and operates similarly to the old form. The beginning paragraph is meant to provide a consumer-accessible primer on dual agency, but agents should have a more in-depth discussion as necessary.

Choose only one of the first two initial lines, and, if dual agency is permitted, then initial only one of the next three initial lines. If the third line is initialed, then the same agent in Firm cannot represent both a buyer and Seller. If the fourth line is initialed, then the same agent in Firm can represent both a buyer and Seller. If the fifth line is initialed, then Firm will practice designated dual agency.

¶ 12 – This paragraph contains numerous representations by the Seller. The listing agent should carefully go over each on with Seller. The following are a few items to cover in particular:

(b) – Although not required, it is strongly recommended that the Seller be given a sample copy of the Offer to Purchase and Contract form at the time the listing agreement is entered into, as well as a sample copy of the Professional Services Disclosure and Election form (Standard Form 760). The checkboxes should be checked to confirm that the Seller has been given copies of these documents.

(c) – Check the applicable box disclosing how long the Seller has owned the Property or whether the Seller owns the Property at the time Seller executes the listing agreement. Seller’s term of ownership may affect a buyer’s ability to obtain mortgage financing. Some mortgage lenders require proof that the property is not being flipped from one purchaser at a lower price to another purchaser at a higher price within a short period of time.

(e) – If legal access to a public right-of-way is by private road/easement, check appropriate box whether there is a road maintenance agreement, and obtain a copy of the agreement and/or other information from Seller if such an agreement exists.

(f) – If there is a manufactured (mobile) home(s) on the Property that Seller intends to include as a part of the sale of the Property, insert the VIN(s) in the blank, if known, or, if unknown, insert other description of manufactured (mobile) home(s).

(g) – If applicable, insert the name, address and telephone number of the president of the owners’ association or the association manager and the owners’ association website address, if any, in the blank space provided, for any owners’ association regulating the Property.

(k) – The appropriate boxes should be checked based upon Seller’s instructions. Information and flood maps are available at www.fema.gov. Information about the state of North Carolina’s Floodplain Mapping Program is available online at www.ncfloodmaps.com.

(l) – The checkboxes should be completed based on Seller’s knowledge of synthetic stucco.

(m) – Check the appropriate box in the first sentence. If there is termite bond on the Property, also check the appropriate box in the second sentence. If there is a termite bond on the Property and if the bond is transferrable, the transfer cost and vendor should be inserted in the blank.

(n) – A bankruptcy proceeding may, but does not necessarily, affect the ability of the Seller to market and sell the Property without the permission of the bankruptcy trustee and/or the bankruptcy court. If the Seller is in bankruptcy or is contemplating bankruptcy, it is strongly recommended that the Firm seek competent legal advice prior to taking the listing.

(p) – In assessing the liens affecting a property, be sure to cover each topic in this subsection in detail. In particular, UCC liens (such as HVAC, solar panels, or other fixture liens) can be hard to assess and will have a big impact on a purchase contract later.

(q) – Check appropriate box whether the Property is subject to any lease(s), and if so, obtain a copy of the lease agreement(s) or a written statement of the terms of any oral lease. Agents may also consider giving Seller a sample copy of Form 2A11-T (Additional Provisions Addendum) and explaining additional contract terms that may pertain to leases.

(r) – Check appropriate box whether an FHA appraisal has been performed on the Property within four months of the commencement date of the listing agreement. It is important to know if an FHA appraisal has been recently performed as it is binding for a period of time following the date of the appraisal for FHA financing.

(s) – Check the appropriate box whether there is/is not a fuel tank(s) on the Property. If there is a fuel tank(s) on the Property, fill in the blank as to whether the tank is currently in use and, if not, indicate whether it is closed and the method used to close the tank. Also, indicate the ownership, location, type of fuel, refilling schedule and name and contact information of the fuel provider for each tank. According to the NC Real Estate Commission, the existence of an underground fuel tank is a material fact that must be disclosed by a real estate agent who knows or reasonably should know of the tank’s existence.

(u) – Any governmental compliance issues should be discussed in detail. Agents should keep in mind that NCR’s standard form purchase agreements, Forms 2-T and 12-T, contain provisions that permit a buyer to potentially terminate the contract if violations of governmental compliance are not disclosed prior to the Seller’s receiving an offer to purchase on those forms.

¶ 13 – Though this section is short, it is an important one. Agents should cover each duty and make sure Seller can comply. If not, then Firm may need to examine whether entering into an agency agreement is appropriate with Seller.

¶ 16 – Inspection costs and professional fees incurred by Seller as part of selling the Property must be paid by Seller. NCR’s standard purchase contracts obligate the buyer to pay inspection costs incurred as part of Due Diligence, which are separate from this obligation.

¶ 20 – All changes, additions, or deletions made to the Agreement after the Effective Date must be in writing and signed by both Seller and Firm, including any termination of this agency agreement. Standard Form 710 can be used to amend this agency agreement, and Standard Form 720 can be used to terminate it.

Signatures: All parties with an ownership interest must be named and sign as “Seller” (see “Names of Seller and Firm” on page 1). A married seller’s spouse should join in the execution of the listing agreement and any purchase agreement, even if the spouse is not a record owner of the Property. The non-owner spouse holds a potential “marital life estate” and a right to dissent from the will under North Carolina law and must sign the deed in order for the owner-spouse to convey clear title. The signature of the non-owner spouse on the contract will obligate that spouse to join in signing the deed. If the married Sellers have executed and recorded a pre-nuptial agreement, post-nuptial agreement, or a free trader agreement, consult an attorney to determine who must sign.

2.     Form 201 – Exclusive Buyer Agency Agreement – Since its rollout last October, revised Form 201 has been well-received. The interim guidelines for this form are in the Legal Q&A section of ncrealtors.org in the October Forms Summary. Both agents and consumers have stated that it is easier to use and understand. To help the form work even better, section 5 has been revised to more closely track the exact language of the settlement, and section 6 has been edited to help agents better navigate dual agency conversations. See ¶ 11 in the interim guidelines of Form 101 above to see how the dual agency section should be filled out.

3.     Form 202 – Property Showing Agreement – This form has also had positive reception since being adopted last October. Sections 1 and 4 have been revised to comply with terms of the settlement, and section 5 has been added to address issues with dual agency that may arise during showings.

4.     RE-DRAFTED Form 203 – Non-Exclusive Buyer Agency Agreement – The re-draft of this form largely follows the edits to Form 201 adopted last October.

4.1.          MAJOR CHANGE. The big change to note in this re-draft, however, is in section 4. Previous versions of this form made it clear that the buyer would not be obligated to pay for their agent’s services. In this re-draft, the fee is now fully negotiable, including whether the buyer will be obligated to pay even if there is no cooperative compensation and Firm is the procuring cause of the sale.

4.2.          The dual agency section in Form 203 is the same as Forms 101 and 201 for uniformity.

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