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NCAR Residential Forms Update: Key Changes Effective January 2025

Writer's picture: SkylineSkyline

As we enter the new year, NC REALTORS® is rolling out significant updates to several Residential Forms.

Man in suit working on documents at a table with laptop in a modern office. Background: shelves, plant, large windows. Text: New Year, New Forms.

These changes are designed to simplify agreements, better reflect current market conditions, and the commission lawsuit settlements. These forms also seek to address feedback from both members and consumers. Whether you’re a seasoned agent or a student in real estate school, it’s important to familiarize yourself with these revisions and their implementation dates. Here’s an overview of the most important changes—and direct links to the new forms.


1. RE-DRAFTED Form 101 – Exclusive Listing Agreement

Effective Date: January 2025

Grace Period: 30 days (a reduction from the usual 60 days)

What’s New?

  • Simplified Language: Similar to the re-drafted Form 201 from last October, the new Form 101 is streamlined to address both member and consumer feedback. The revisions aim to clarify obligations and terms for all parties.

  • Enhanced Property Description:

    • A new checkbox now allows agents to indicate the inclusion of additional parcels or lots. Remember, if multiple parcels are bundled, they must be sold in the same transaction unless a custom addendum is attached.

  • Major Fee Process Overhaul (Section 7):

    • Firm’s Fee vs. Cooperative Compensation: The previous process of charging a total listing fee and then sharing part of that fee with cooperating agents has been revamped. Now, only the Firm’s Fee should be specified in one subsection, while cooperative compensation is addressed separately—mirroring the approach in Form 220 (Cooperative Compensation Agreement).

    • Clear Payment Timing: Specific subsections now detail when each fee is due, ensuring greater clarity for both agents and sellers.

  • Other Important Updates:

    • Revised instructions for filling out seller and firm names.

    • Detailed guidance on describing the property, including options to attach a deed.

    • Updates on advertising, open house arrangements, and dual agency disclosures to help agents explain these concepts clearly to clients.

For a complete look at the changes and to access the new form, please review the updated document here: New Form 101 – Exclusive Listing Agreement.


Note: While there’s no requirement to convert existing agency agreements, all new listings should use this updated form. Interim guidelines are in place now, with formal guidelines to be published in the Forms Library in July 2025.

2. Revised Form 201 – Exclusive Buyer Agency Agreement

Background: Revised Form 201 was first introduced last October, and it continues to be one of the most popular forms among both agents and consumers due to its clear and concise language.

Key Updates:

  • Section 5: The language now more closely aligns with the actual terms of settlements, ensuring that the form accurately reflects agreed-upon conditions.

  • Section 6 (Dual Agency): Edits have been made to streamline dual agency conversations, making it easier for agents to navigate these discussions with clients.

To review the updated Form 201 in full, please visit: New Form 201 – Exclusive Buyer Agency Agreement.


3. Revised Form 202 – Property Showing Agreement

Enhancements Include:

  • Sections 1 and 4: Revised to comply with the terms of recent settlements, these sections now provide clearer instructions on the obligations and expectations during property showings.

  • New Section 5: This additional section specifically addresses dual agency issues that may arise during showings, ensuring that all parties are well-informed.

For detailed information and to view the new form, click here: New Form 202 – Property Showing Agreement.

4. RE-DRAFTED Form 203 – Non-Exclusive Buyer Agency Agreement

Major Change:

  • Fee Negotiation (Section 4):

    • Previously, this form clearly stated that buyers were not obligated to pay for their agent’s services. In the re-drafted version, the fee is now fully negotiable. This means that the buyer’s obligation—even in cases where there is no cooperative compensation and the Firm is the procuring cause—can now be negotiated.

  • Uniform Dual Agency Section: The dual agency section has been updated to match the language used in Forms 101 and 201, ensuring consistency across documents.


Implementation and Next Steps

All the revised forms are effective immediately. It’s crucial for agents to familiarize themselves with these updates to ensure smooth transactions and clear communication with clients. While existing agency agreements do not need to be converted immediately, the new forms should be used for all new listings and buyer agreements moving forward.

For those seeking additional guidance, interim guidelines (for example, for Form 101) are available now, with formal guidelines for certain forms expected to be released in July 2025. These updates not only help in simplifying the forms but also in better addressing real-world scenarios such as multi-parcel transactions, detailed fee disclosures, and dual agency issues.


What do you think about the new forms? Sound off in the comments below or share your thoughts with a colleague in an upcoming CE Class!

References

NC REALTORS®. (2025, January). Summary of January 2025 changes to NC REALTORS® Residential Forms.

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