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In the world of real estate, staying informed about the latest rules and regulations is crucial for both new and experienced professionals.
Recently, there's been some confusion regarding buyer agency agreements, particularly the differences between North Carolina Real Estate Commission (NCREC) rules and the National Association of REALTORS® (NAR) practice changes. Let's clarify these differences.
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NCREC Rules: Flexibility in Buyer Agency Agreements
The North Carolina Real Estate Commission, which governs all licensed real estate brokers in the state, allows for some flexibility in buyer agency agreements. According to 21 NCAC 58A .0104 AGENCY AGREEMENTS AND DISCLOSURE:
"Every agreement for brokerage services between a broker and a buyer or tenant shall be express and shall be in writing and signed by the parties thereto not later than the time one of the parties makes an offer to purchase, sell, rent, lease, or exchange real estate to another."
This means that under NCREC rules, brokers can operate under nonexclusive oral buyer agency agreements up until the point that an offer is submitted. This flexibility allows for initial discussions and property viewings without the immediate need for a written agreement.
NAR's New Practice: Written Agreements Required Earlier
In contrast, the National Association of REALTORS® has recently changed its practices due to the settlement of a commission lawsuit. The new NAR guidelines require a written buyer agency agreement before showing any homes to the buyer. This is a significant change from their previous stance, which was more aligned with NCREC's current rules.
Key Takeaways
NCREC rules apply to all licensed real estate brokers in North Carolina.
NAR rules only apply to REALTORS® (members of NAR).
Under NCREC rules, oral buyer agency agreements are permitted until an offer is made.
NAR now requires written agreements before showing properties.
Brokers who are also REALTORS® must adhere to the stricter of the two standards.
Real estate professionals must understand which rules apply to them. All licensed brokers must follow NCREC rules, while only REALTORS® are bound by the additional NAR guidelines. Know your status! Know your rules!
As the real estate landscape continues to evolve, staying educated on these distinctions is vital for compliance and professional success. Whether you're a new agent or a seasoned professional, always ensure you're up-to-date with the latest rules and regulations governing your practice.
How are you working to get Buyer's Agency Agreements signed sooner with your clients? Share in the comments or with a colleague in an upcoming CE Class!