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Below is the latest guidance from the NC REALTORS® regarding the Cooperating Compensation Agreement. This also includes guidance they received from the NCREC, so it is definitely worth a read!
QUESTION: I keep hearing conflicting information about the Cooperating Compensation Agreement (Form 220). Can you take me through the best way to use this form?
ANSWER: Sure! Let’s walk through some of the most frequent questions on the Hotline and some common scenarios.
Does the buyer agent or the listing agent need to fill out Form 220?
Either one can fill out Form 220 and send it to the other.
Is Form 220 required?
When should I check the “Seller” box in paragraph one of Form 220?
Should I have the seller sign Form 220 at the listing appointment?
Can I attach Form 220 to a purchase contract as an addendum?
If the seller has authorized cooperative compensation, can I publish Form 220 on my firm’s website so buyer agents know what is being offered?
What is the risk of publishing a Form 220 publicly that has already been signed?
When should I negotiate cooperative compensation?
What if Form 220 is signed, but then the buyer and seller never go under contract? Does the listing firm have to pay?
What if the listing firm will not communicate with me? How can I submit my buyer’s offer if my buyer needs help paying my compensation?
What if I send my client’s conditional offer to the listing agent with a Form 220 attached as a separate document, and the seller only signs the purchase contract and sends it back?
Are there any plans to change the License Law and allow agent compensation to be part of a purchase contract?
How have you been using Form 220? Let us know in the comments or share with a colleage in an upcoming CE class!
Release Date: 8/8/2024
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