The Commission has accepted the recommendations of the Incentive Disclosure Implementation Advisory Committee, formed earlier this year to examine the current compensation disclosure requirements in dual agency transactions.
The Committee recommended that:
• the incentive disclosure rule remain unchanged;
• the North Carolina Association of REALTORS® recommend to the forms committee that it modify the Exclusive Right to Represent Buyer agreement to incorporate a disclosure of expected firm compensation in dual agency situations; and
• the Commission initiate an educational program to teach instructors, brokers-in-charge and licensees the buyer agent’s disclosure requirements in dual agency transactions.
The current rule relating to agency compensation went into effect October 1, 2008. The primary change was to clarify disclosure requirements relating to third party payments.
In its final report, the Advisory Committee agreed that many licensees may be confused about their duty under the rule and its application in typical situations. Education through the Real Estate Bulletin, Broker-in-Charge Annual Review, and/or Update Course would provide practical scenarios and a review of specialized transactions to describe steps which can be taken to achieve compliance.
Members of the Advisory Committee were George R. Bell, Winston-Salem; Donell Croom, Greensboro; Garth K. Dunklin, Charlotte; Kelly C. Hanley, Wilmington; J. Malcolm McFadyen, Fayetteville; Sheila G. Rudisil, Lincolnton; Monica A.Thibodeau, Duck; Walt Tipper, Raleigh; Grady F. Watkins, Jr., Holden Beach; and Harriet Worley, Raleigh.
Commission Chairman Marsha H. Jordan served in an ex officio capacity.
The Commission thanked the members for their participation in the Advisory Committee.
This article came from the October 2010-Vol41-2 edition of the bulletin.