In January 2020, the Consumer Federation of America (“CFA”) published a report entitled, “Why Required Real Estate Agent Disclosures about Representation Fail and How They Can Be Improved.” The report contains a list of recommendations for improving agency disclosure forms.
The Commission’s Working With Real Estate Agents brochure has been used for approximately 25 years. Although it contains good information, changes in technology, communication methods, and the faster pace of real estate transactions have made its format less user friendly.
The Commission has created a new disclosure form (“Working With Real Estate Agents Disclosure”) which will make agency disclosure quicker and easier for brokers and more understandable for buyers and sellers. The form is just two pages in length, with one page dedicated to sellers and one page dedicated to buyers. A broker explaining agency to a seller need only review the seller side of the form; likewise, a broker disclosing agency relationships to a buyer need only review the buyer side.
The new form replaces the old Working With Real Estate Agents brochure as the form that brokers must review with prospective buyers and sellers at first substantial contact. The new disclosure form is now available on the Commission’s website (ncrec.gov) under the “PUBLICATIONS” tab.
The Commission encourages brokers to begin using the form immediately. Effective 7/1/21, brokers will be required to use this form in all commercial and residential sales transactions.
On 4/26/21, the Commission hosted a 60-minute webinar introducing this new form. A recording of the webinar is available for viewing on the Commission’s website.
This form will be translated into Spanish and will be discussed in the 2021-2022 GENUP and BICUP courses. Aside from the introduction of this new form, there has been no change to the rule which requires agency disclosure (A .0104(c)) and no change in the types of agency relationships that brokers may offer. The only change is in the form that brokers use to explain agency relationships.