BIC TIP #1239: NC Real Estate Is Changing

The way you do business as a North Carolina real estate agent is about to change. With the new forms rolling out, buyer agents will be responsible for attaching the new buyer compensation addendum to the Offer to Purchase and Contract (Form 2-T) whenever they need the seller to pay any part of their compensation. Stephen Long breaks it down.

The Buyer Agent Now Carries the Ball

Going forward, if the buyer agent needs the seller to cover any part of the buyer agent’s commission, it is on the buyer agent to attach the buyer compensation addendum to the offer. Stephen notes that this new addendum is very similar to the familiar Form 220.

That means, in practice, nearly every offer going forward will have the buyer compensation addendum attached, unless the buyer is paying their agent directly.

Seller Concessions Are a Separate Conversation

Do not mix up buyer agent compensation with seller concessions. According to Stephen, seller concessions are handled differently and still live on the Offer to Purchase and Contract itself.

Keeping those two items separate in your head, and on paper, will save you from confusion at the negotiating table and at closing. Compensation for the buyer agent goes on the addendum. Concessions to help the buyer go in the contract.

If You Missed the Forms Rundown, Catch Up

Stephen recently did a full rundown of the forms changes, and if you missed it, now is the time to catch up. This is a fundamental change in the way offers are put together, and you do not want to learn the new process in the middle of a multiple offer situation.

Read the new forms, practice filling them out, and ask your broker-in-charge how your firm wants these handled. Every firm may have its own procedures for rolling out the changes.

The Practical Takeaway

Buyer agents, it is your job to attach the buyer compensation addendum to the Offer to Purchase and Contract whenever you need the seller to pay part of your compensation. Seller concessions still go on the contract itself. Learn the new forms now, and let the Notorious BIC keep you between the real estate lines.

This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.