Additional Forms Changes Coming October 1!

Important Contract Changes

Since rolling out the most recent contract changes, Members have submitted feedback and the Forms Committee listened.

Based on the feedback received, it's been decided to eliminate cooperative compensation from most association contracts, effective October 1, 2024. This includes all sale contracts, listing contracts, buyer representation contracts, and related forms. Additionally, the Cooperative Compensation Disclosure (Form #2108), aka CCD, will be sunset. This decision was not made lightly, and the Committee feels it is in the best interest of all member firms and their associates.

Factors leading to the decision are as follows:

• The real estate industry is witnessing a significant shift. By eliminating references to cooperative compensation, we align our forms and practices with emerging industry norms and the evolving expectations of both buyers and sellers. More importantly, this recommendation dramatically simplifies the process.
• Many brokerages have determined they will not offer cooperative compensation to buyer agents. These brokerages did not use the cooperative compensation disclosure (aka, CCD), Form #2108, creating confusion and frustration among our members and, ultimately, the consumer.
• A major factor in not participating in cooperative compensation is the concern of further antitrust scrutiny. With regulators' heightened scrutiny, Civil Investigative Demand (CID) requests from the DOJ to other associations, and the ongoing main DOJ investigation, this change is a proactive measure to ensure our contracts and forms fully comply with potential future legal challenges. This change addresses these concerns and minimizes the risk of a legal challenge to our members and the association.

This change will result in much-needed clarity for buyers seeking assistance from the seller to pay their buyer agent fee. Buyers will most likely request a credit on the sale contract. Removing cooperative compensation should also not be construed as hindering individual brokers and agents from their practice of discussing incentives with their seller. 

Click here to access the updated packet of new/revised forms.  The Valid Forms Guide dated October 1 can be found here.

Additional Contract update sessions are scheduled for:

10/2/24 - 10am-noon

10/9/24 - 1-3pm

10/25/24 - 10am-noon

Register here.