Edits to Form 220 and New Forms 201, 202, and 220G

QUESTION: I keep hearing rumors that NC REALTORS® is creating a one-page property showing agreement and rewriting the Exclusive Buyer Agency Agreement (Form 201). Is this true? When will these forms be released?

ANSWER: By the time you read this Q&A, all the new forms will be adopted and available on NC REALTORS®’s website. In addition to Forms 201 and 202, some technical edits have been made to the Cooperative Compensation Agreement (Form 220) and new guidelines to Form 220 have also been released.

Due to the nature of these changes, firms should consider using to the new forms as soon as possible, and as to Form 220, firms may want to replace existing paperwork. Unlike normal forms change rollouts, the grace period to use new these new forms will be 30 days instead of 60 days. Let’s talk about the changes.

Exclusive Buyer Agency Agreement (Form 201) – This form is now three pages instead of seven, and it should be much easier to use. The old guidelines (Form 201G) have been removed from NCR’s forms library. New interim guidelines for Form 201 are in the forms change summary on our website. The forms change summary is available in the Legal Q&A section of the website (which is also where this Q&A is!).

Property Showing Agreement (Form 202) – This brand-new form is a one-page agreement that can be used to tour a property if you are working with a buyer. As required by MLS rules and the License Law, this is a buyer agency agreement. However, agents should note that it is a non-exclusive agency agreement, and buyers will be able to hire another buyer agent if they choose. Agents are reminded that if you are only working with the seller and not providing brokerage services to the buyer, then a written agreement with the buyer is not required in order to tour a home.

Cooperative Compensation Agreement (Form 220) – This form is now all on one page. While most of the edits to this form are technical, there is one major edit. In paragraph three, language has been added to make it clear that if the listing firm is not paid by the seller, then the listing firm will not owe a commission to the selling firm. Firms may want to replace existing Form 220s so that this language will be part of any agreement for cooperative compensation.

Cooperative Compensation Agreement (Form 220) Flowchart and Information Guide – The first page of these new guidelines provide a flowchart that explains how agents may navigate cooperative compensation under the new MLS rules. The second page provides helpful notes and information that agents may want to consider in this process. In drafting this form, the Forms Committee looked at all of NCR’s previous Q&As on Form 220, and tried to synthesize them into one, easy-to-understand document.

The Forms Committee will next be looking at the Exclusive Right to Sell Listing Agreement (Form 101) and the Non-Exclusive Buyer Agency Agreement (Form 203) among other changes. Stay tuned to the REALTOR® Rundown for more potential edits to forms over the next year!

Release Date: 10/17/2024