North Carolina Real Estate Sales Contracts & Practices

Instructor: Kyle Aken

Kyle is a journalist and marketer that has taught writing to a number of different children and adults after graduating from college with a degree in Journalism. He has a passion for not just the written word, but for finding the universal truths of the world.

This lesson provides an overview of North Carolina real estate sales contracts as regulated by North Carolina Real Estate Commission Rule A.0112. Common standard forms and sales practices are discussed as well.

North Carolina Real Estate Commission Sales Contracts Overview

The North Carolina Real Estate Commission (NCREC) promulgates rules based on the North Carolina Statutes regarding real estate sales contracts and other real estate transactions. Rule A.0112 lists the required information for sales contract forms. Newly licensed real estate broker, Jennifer, feels that the list of essential information is useful and not surprising.

What Jennifer finds interesting is that the list of mandated content was created to regulate pre-printed forms that are used by brokers. The rule, however, does allow brokers, sellers, buyers, and other parties to draft their own sales contracts. While the content of pre-printed forms is regulated, the use of pre-printed forms is not mandated.

The other section of Rule A.0112 that catches her attention is the information that cannot be included in a pre-printed offer or sales form. Two types of provisions are prohibited:

  • Any section that sets out payment of a commission or other compensation to a broker or agent
  • Any section that limits or 'disclaims' the liability of a broker's representation during the real estate transaction in question.

Approved Pre-Printed Form

The North Carolina Association of REALTORS® and the North Carolina Bar Association worked together to draft a pre-printed 'Offer to Purchase and Contract' form for real estate professionals, also called 'Standard Form 2-T'. Jennifer feels comfortable with that form since it was created and approved by a committee of both real estate lawyers and licensed real estate brokers.

The Standard Form 2-T is only used for the purchase of single family homes. The two entities regularly update the form for brokers and to comply with any changes to the rules. As a new broker, Jennifer feels confident using that form.

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