What form should I use to confirm compensation with a listing agent outside my MLS?
QUESTION: My client would like to submit an offer on a property that is listed in a neighboring MLS, and I am not a participant in that MLS. The listing agent is demanding that I fill out Form 770 (“Confirmation of Compensation”), but after I read the form, it just did not seem right. Is there a better form to use for this situation?
ANSWER: Yes. Form 220 (“Confirmation of Agency Relationship, Appointment & Compensation”) covers this situation. Form 220 even has its own guide labeled Form 220G. The guide explains that in addition to helping you establish compensation in situations like this, Form 220 can be used if: (1) you are seeking compensation other than that being offered in your MLS; (2) the compensation in the MLS is not made to you as a buyer agent or subagent; (3) the property is listed but the Seller has not authorized an MLS listing; (4) you need to confirm your buyer agent status in writing; or (5) you need to document disclosure of and consent to any other fees that you may receive in connection with the transaction.
Form 770 has a separate function. It is intended to help brokers comply with the disclosure requirements of Rule 58A.0109(c) of the License Law. That is why it is not a good fit to help you establish your right to compensation. Rule 58A.0109(c) requires real estate agents to disclose to their client the receipt of (or the expectation of receiving) any compensation, incentive, bonus, rebate, or other valuable consideration from a third-party under certain circumstances. Since Form 770 is designed to make this disclosure to a client, the form only has signature lines for the disclosing broker and the client as opposed to the selling agent and listing agent signature lines that appear in Form 220.
This article is intended solely for the benefit of NC REALTORS® members, who may reproduce and distribute it to other NC REALTORS® members and their clients, provided it is reproduced in its entirety without any change to its format or content, including disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain. Any unauthorized reproduction, use or distribution is prohibited.