1. Unfair Real Estate Service Agreements Act (2023)
- In August 2023, NC passed An Act to Prohibit Unfair Real Estate Service Agreements for Residential Real Estate, codified in N.C.G.S. § 93A-85.1 et seq. Morningstar Law Group+1
- What It Covers: The law defines “real estate service agreements” broadly (written contracts for services in connection with sale/purchase/maintenance of residential property). Some agreements were being used in predatory ways, especially with vulnerable homeowners. Examples: exclusive rights, very long terms (sometimes decades), recorded memoranda creating liens without meaningful service being performed. Morningstar Law Group
- What Is Prohibited / Void: An agreement is “unfair, void, and of no legal effect” if it is for a term longer than one year and it does one of:
- Runs with the land, or
- Allows assignment without the owner’s consent, or
- Attempts to create a lien, encumbrance, or other property interest. Morningstar Law Group+1
- Note: This applies only to agreements signed on or after August 24, 2023. NC REALTORS®+1
2. Forms & Contracts Changes (Residential Forms – July 2023; January 2025 Forms Update)
- July 2023: The standard forms used in residential contracts (Offer to Purchase & Contract, etc.) were revised to improve clarity around septic lots, separate lots, storage units/garages/boat slips, and to better define deadlines for earnest money, due diligence fees, etc. NC REALTORS®
- January 2025: More revisions took effect. Notably, the Exclusive Right to Sell Listing Agreement was shortened and simplified; clearer disclosure and structure around cooperative compensation; clarifications around dual agency; more explicit detail in forms about property parcels; policy around “fees, costs” made more transparent. Thomas & Webber
3. MLS Compensation Disclosure & Buyer Agency
- In NC, in response to NAR settlement and state-level changes, there’s been movement to change how compensation is displayed in MLS systems. For example:
- No more public display of commission/compensation amounts in MLS: Notices indicate that offers of compensation will no longer be visible in listings. Discover NC Homes+1
- Buyer Agency Agreement timing: Buyer agency agreements must now be signed before any showing (physical or virtual). This ensures that the buyer-agent relationship is formalized earlier. Discover NC Home
