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Welcome to Friday everyone! As I sweep this past week I bring to you a cheat sheet for preparing for January 1, 2024 with respect to how to handle Existing Agency Relationships and Pending Transactions.
I went direct to the NWMLS counsel to confirm how to handle each specific scenario. Hope this helps! As I’ve been saying often, January 1st won’t arrive with perfection yet we do have control in how we prepare. A little something to work each scenario…
Listings under Listing Agreements signed prior to January 1, 2024
Listing agreements signed prior to January 1, 2024 should be amended to address the seller’s consent to limited dual agency. To do so, firms can use the Addendum to Exclusive Listing Agreement (Form 18) and check the applicable box to address the seller’s consent to limited dual agency for the individual listing broker. If the seller does not consent, the listing broker cannot act as a limited dual agent. For any new listing signed on or after January 1, 2024, brokers must use the new listing agreement.
Purchase and sale agreements pending before January 1, 2024
Purchase and sale agreements for transactions pending (mutually accepted) before January 1, 2024 should not be amended.
Purchase and sale agreements written on or after January 1, 2024
Purchase and sale agreements written on or after January 1, 2024 should be completed on the new forms.
Existing buyer agency relationships after January 1, 2024
For buyer brokers who have existing agency relationships, brokers should have buyers sign the new Buyer Brokerage Services Agreement (Form 41 or Company equivalent) if the broker will continue to provide services to the buyer on or after January 1, 2024. If a broker and a buyer have an existing written agency agreement, the parties should update their agreement using a new form that complies with the Revised Law on January 1, 2024.
Existing agency relationships and pending transactions after January 1, 2024
For buyers who are party to an existing purchase and sale agreement that is waiting to close, there is no need for the buyer to sign a services agreement. However, if that sale fails, and the broker will continue to provide services to the buyer, the parties must enter into a services agreement as required by the Revised Law.
Note: NWMLS posted an on-line self-paced version of their CE class on Agency & Forms changes. It can be taken either for clock hour credit, or viewed for reference with no credit. If you didn’t make one of the earlier classes, or desire a refresh, it will be a good option for you as well!
