Please Note: There are been many more changes and revisions since I wrote this in 2008 so please check with your Realtor to learn about the latest forms and purchase process!
Effective July 1, 2008, there have been numerous small and more significant changes/additions/deletions to the standard North Carolina real estate forms jointly approved by the North Carolina Association of Realtors AND the North Carolina Bar Association.
As a home buyer or seller in the Lake Norman area, there are several things you should do or know if you are currently thinking about or in the process of buying or listing a home:
- Always make sure that the forms you are provided by your Realtor are the most current form available. Our four most commonly used forms, the Offer to Purchase and Contract (Form 2-T), The Additional Provisions Addendum (Form 2A11-T), The Exclusive Right to Sell Listing Agreement (form 101), The Exclusive Right to Represent Buyer Agreement (Form 201) as well as many others were revised on July 1, 2008. At the very bottom of each form you will find the Standard Form number and the date adopted. Check to make sure it says: Adopted 7/2008. (Or later depending on when you read this!)
- Have your REALTOR explain the changes in the forms, especially if you have used the old forms recently.
- There is a 60-day grace period to transition to new forms.
Here is a very brief summary of the most notable changes to these 4 forms. *This is general information only. Please note, I am NOT an attorney. If you have any questions regarding these changes please consult a real estate attorney. I would be happy to provide you with names and phone numbers for several in the Mooresville Lake Norman area!
Offer to Purchase and Contract (Form 2-T)
- Important clarification of the loan condition (paragraph 5) including when the buyer can terminate the contract with return of their earnest money and when the earnest money will be forfeited due to a breach in the purchase contract.
- Clarifications and changes related to Paragraph 16, 1, 17, 27.
Additional Provisions Addendum (Form 2A11-T)
- New “Agreed-Upon Repairs and/or Improvement” provision has been added
- “Closing of Existing Contract” provision has been eliminated as it is now addressed in the new Contingent Sale Addendum
Exclusive Right to Sell Listing Agreement (Form 101)
- New wording has been incorporated into the Dual Agency paragraph 20 and they have eliminated the separate Dual Agency Addendum we have been using.
- Additions include a paragraph encouraging Sellers and agents to discuss advantages of having a home inspection done before listing
- Clarification/new wording added to address ethical duties of Realtors regarding disclosure of multiple offers and a new Real Estate Commission rule prohibiting “shopping of offers” by real estate agents. Briefly, if the seller authorizes disclosure, a firm shall disclose the existence of other offers, who obtained the other offer(s) but”disclosing the price or other material terms contained in a party’s offer to purchase, sell, lease,rent or option real property to a competing party” may not be done without the “express authority of the party making the offer”. In other words, without the buyers permission, price or terms must not be disclosed to other buyers or their agents.
Exclusive Right to Represent Buyer Agreement (Form 201)
- The same changes have been made to this form as were made to the listing agreement regarding incorporating the content from our previous Dual Agency Addendum
- This form also has been modified to address the new North Carolina Real Estate Commission rule prohibiting the shopping of offers by real estate agents.
There is also a great, new Form 780 which is a form created to help real estate agents keep track of the increasing number of contractual deadlines and whether they are “time is of the essence” or not.
Again, this is meant to be a brief overview for Lake Norman buyers and sellers of just some of the many changes/additions and deletions to North Carolina real estate contracts that went into affect as of July 1, 2008. For more information, please contact your Realtor or real estate attorney.
There are some indications of major changes to our Offer to Purchase and Contract in the near future. I will devote an entire article to our currently rarely used “Option 2? and why there may be a move to make this the sole option for home buyers and sellers.