BIC TIP #1225: The Forms, They Are A-Changing

The forms, they are a-changing. In this BIC TIP, Stephen Long gives North Carolina brokers a quick heads-up on upcoming forms changes. The most notable updates affect two documents you use constantly: the listing agreement and the Offer to Purchase and Contract. If compensation language has been giving you headaches, help may be on the way.

Compensation Moves to an Addendum

According to Stephen, the bar association and Realtor association did not land on putting commission directly inside the Offer to Purchase. Instead, there will be an addendum to the Offer to Purchase that handles compensation, working very much like the Form 220 has worked.

If you have been attaching a Form 220 to your offers, this approach will feel familiar. Compensation stays tied to the contract without being baked into the main form.

A Cleaner Listing Agreement

Many brokers have struggled with the compensation subsections of the current listing agreement, the ones that seem to get jumbled every time. Stephen says the update aims to straighten that out with a simpler structure: how much the seller is paying the listing agent, and then how much the seller wants to offer a buyer’s agent.

Clearer forms mean fewer mistakes, fewer awkward phone calls, and fewer questions for your broker-in-charge.

Stay Tuned for Training

Stephen notes that more detailed training is coming, including long-form walkthroughs from industry educators and update videos from the Notorious BIC himself. When the new forms are released, take the time to learn them before you need them in a live transaction.

The Practical Takeaway

Watch for the updated listing agreement and Offer to Purchase, including the new compensation addendum. Attend a training, read the new forms carefully, and make sure you are using the current versions once they take effect. Hopefully, the new forms will be clearer and more succinct, but only if you actually learn them.

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.