July 2024 Updates to NC REALTOR® Standard Forms

With the evolving real estate landscape, staying updated on form changes is crucial for every REALTOR®. July 2024 brings significant updates and new forms to better address the needs of buyers, sellers, and agents. Many of these changes are also required by the NAR Commission Lawsuit Settlement.

The forms committee has been hard at work this year, introducing a series of exciting and impactful changes. Among the most noteworthy updates are the new Owner's Disclosure Statement for Vacant Land, an invaluable Estate Property Flowchart providing clear guidance on contract signatories, and a groundbreaking Wear-and-Tear Guide that distinctly outlines examples of wear and tear versus property damage for landlords and tenants.

REALTOR® Members should begin using these forms no later than 7/1/2024. Copies of the new forms can be obtained from your forms vendor or by logging into your NC REALTOR® online account.

Residential Form Revisions

Form 2-T – Offer to Purchase and Contract

• ¶ 1(i): Buyers can now pay the Due Diligence Fee to another party at the seller’s or listing agent’s direction.

• ¶ 1(j): New checkboxes allow agents to specify the Due Diligence Period either by a fixed date or a number of days from the Effective Date, reducing errors.

• ¶ 8(a)(iii): Sellers must provide HOA information to the closing attorney, enhancing verification processes.

• ¶ 8(h): Buyers must establish governmental compliance violations and notify the seller promptly, ensuring timely and equitable relief during transactions.

Form 2G – Guidelines for Completing the Offer to Purchase and Contract

• ¶ 2(c): Sellers are reminded to unpair smart devices and delete personal data before closing.

• ¶ 8(h): Additional explanations for the new compliance verification responsibilities under Form 2-T.

Form 2A11-T – Additional Provisions Addendum

• ¶ 2: Agents can use this form with Form 12-T (Vacant Land Offer to Purchase and Contract) to specify when property clearing for septic tests should be completed.

Form 4-T – Agreement to Amend Contract

• A checkbox has been added to facilitate adding a buyer to a purchase contract easily.

NEW Form 10-T – Estate Property Flowchart

• This flowchart will assist agents in identifying who needs to sign documents for estate properties, enhancing clarity and efficiency.
  

Form 12-T – Offer to Purchase and Contract – Vacant Lot/Land

• ¶ 3(d): Introduces a 3-day right to terminate if the buyer does not receive the Vacant Land Disclosure Statement (Form 142) before making an offer, ensuring transparency in vacant land transactions.

NEW Form 142 – Vacant Land Disclosure Statement

• Allows sellers to make disclosures about vacant land, similar to existing residential property disclosures, promoting informed transactions.

NEW Form 170 – Closing Guidelines for Seller

• A simple, one-page checklist for sellers to complete as part of closing, making the process more understandable and streamlined.

Form 101 – Exclusive Right to Sell Listing Agreement

• ¶ 7(e): Specifies that broker compensation is negotiable and requires client consent for compensation over agreed amounts.

• ¶ 12(i): New checkboxes for sellers to disclose wetlands and water issues, aiding in risk management.

Form 201 – Exclusive Buyer Agency Agreement

• ¶ 4: Ensures buyer and agent agree on compensation, and any additional compensation must be approved by the buyer, aligning with antitrust compliance.

Form 203 – Non-Exclusive Buyer Agency Agreement

• Similar edits as Form 201, emphasizing the negotiability of compensation and the necessity for buyer consent.

RE-DRAFT Form 220 – Cooperating Compensation Agreement

• Renamed and re-drafted to facilitate navigating new MLS rules and Code of Ethics changes, aiding in clear documentation of cooperating compensation agreements.

Form 350-T – Termination of Contract (Form 2-T) by Notice to Seller from Buyer

• Clarifies that the seller is not agreeing to the buyer’s reason for termination, promoting smoother release of the Earnest Money Deposit.

Form 800-T – Offer to Purchase and Contract – New Construction

• Overhauled to better reflect new construction transactions, including mandatory detailed plans, construction fee mechanisms, and deadlines to prevent indefinite delays.

Property Management Forms

NEW Form 416 – Tenant Personal Property Flowchart

• Aids property managers in navigating statutes related to tenant personal property, reducing the risk of legal penalties.

NEW Form 417 – Landlord-Tenant Normal Wear and Tear Guide

• Helps manage expectations regarding ordinary wear and tear, benefiting landlords, tenants, and agents.

Commercial Forms

Form 530 – Exclusive Buyer/Tenant Representation Agreement

• Ensures client consent for any additional compensation, in compliance with the NAR settlement requirements, emphasizing that agent services are fully negotiable.

Form 573 – Disclosure and Fee Agreement for Non-Listed Property Sale

• Simplifies language for informing sellers of prospects, aligning with antitrust laws.

These updates aim to enhance clarity, compliance, and efficiency in real estate transactions. REALTORS® should familiarize themselves with these changes to ensure smooth and legally sound transactions for their clients. For detailed changes and specific form updates, refer to the NC REALTORS® website.

Are you excited about these new forms? Let us know in the comments or share with a colleague in an upcoming CE Class!

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References

NC REALTORS®. "Summary of July 2024 Residential, Property Management, and Commercial Forms Changes." NC REALTORS® Forms Update, July 2024.