BIC TIP #1257: The BCA Overrides

Here is a question Stephen Long keeps hearing about the new forms: if the listing agreement authorized one compensation amount for a buyer agent, but the offer arrives with a buyer compensation addendum showing a different number, do you need to amend the listing agreement? The short answer is no. The addendum overrides.

Where the Addendum Lives

The new buyer compensation addendum will typically be attached to the Offer to Purchase and Contract (Form 2-T) when the buyer is requesting that their buyer agent be paid by the seller.

Once the seller accepts that offer with the addendum attached, the compensation terms become part of a binding agreement between the parties to that addendum.

The Listing Agreement Was Permission, Not a Promise

Here is the key distinction Stephen draws. On the listing agreement, the seller gave the listing agent authorization to market an incentive to buyer agents, for example a certain percentage. That authorization was never a contractual obligation to any particular buyer agent.

It was simply permission to advertise. It did not create a contract with whoever showed up with a buyer.

The Contract Supersedes the Marketing

When the buyer brings an offer with the buyer compensation addendum attached, that addendum becomes the contract. Whatever is agreed in that document between the buyer agent and the seller is what governs.

According to Stephen, that agreement supersedes anything the listing agent may have offered in marketing. So if the addendum shows a different number than the listing agreement authorized, you do not need to go back and amend the listing agreement to match. The accepted addendum controls the compensation for that transaction.

As always, if a unique situation comes up or the numbers get complicated, check with your broker-in-charge on how your firm wants it handled.

The Practical Takeaway

The listing agreement authorizes the listing agent to market a compensation incentive, but it is not a contract with the buyer agent. The buyer compensation addendum attached to an accepted offer is. When the two numbers differ, the addendum overrides, and no listing agreement amendment is needed.

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.