TOP FIVE
LEGAL TAKEAWAYS FROM 2024 In my house, I oversee everything concerning the holiday season. I get the tree out of the attic and decorate it. I shop and buy all the presents for the entire family (including myself). I entertain family and plan the meals. I organize the annual ski trip. Etc., etc., etc. . . . For about two months, it is an additional full-time job for me. And yet. With the holidays now fully in the rearview mirror and a new year upon us, I can confidently say that this past season was a welcome vacation from an otherwise frenetic 2024. Ha! Think about it! When 2024 started, we were discussing NAR’s appeal of the antitrust verdict. In March, the appeal was over, and we were digesting the news of the settlement and waiting on details. In early summer, all of you were preparing to conduct business in a completely new way. By Halloween, you were adjusting to new buyer agency forms and MLS rules. And when the holidays rolled around, many of you had begun to find your groove and thrive in a totally new environment. If you have not heard it lately, you all deserve gigantic kudos. You have my admiration and respect. I mean, you did already, but you know what I’m saying. Anyway, you looked a seismic shift in the industry in the eye, and took it head on. You did so by causing about a 30% increase in Legal Hotline calls. LOL! But still, you did it, and we were happy to help.
1.
Broker compensation is, quite simply, negotiable.
By all means, value your services and make sure your client understands exactly how compensation works for you and your firm. Continue to put your client’s needs first and foremost. Part of that discussion for buyers should include an explanation that listing firms and sellers are not required to offer compensation to a cooperating agent. Even if cooperative compensation is offered, it does not need to be a blanket offer and may vary based on the terms in a purchase contract. For sellers, make sure they understand the financial strains a buyer may be under and the advantages and 20 INSIGHT • February 2025
BY “LEGAL JOHN” JOHN WAIT General Counsel
disadvantages of declining to offer concessions or cooperative compensation. Once the new MLS rules were implemented, we received a lot of calls on the Hotline from agents seeking guidance on negotiating compensation. Having detailed compensation discussions with your clients and explaining your value are the most important things you can do to facilitate these nowcommon negotiations.
2.
cams are still a huge problem, and firms should S continue to be extremely vigilant.
Last year, phone calls to the Hotline about scams remained constant. Fake sellers and buyers continue to be a major issue. Anytime you receive information for an out-of-state prospect who cannot meet you in person, you need to be very careful. Insist on at least a live video conference after receiving a picture ID. If you are not using the FOREWARN app, download it to your phone immediately. If you are a broker-in-charge, make sure scams are discussed regularly at your firm. In addition to fake seller and buyer scams, be aware of fake tenant and landlord scams as well. We have received Hotline calls where the documentation for all these scams, at first blush, looked very convincing and authentic. One property manager only discovered a tenant scam after calling the bank associated with the tenant’s check. All other paperwork, and the background check, failed to discover the scam. In short, if your Spidey Sense is going off, do not ignore it. You should also be cautious in transactions that are not scams but present escalated risk. For example, wholesale listings and purchases present a variety of risks depending on the parties involved. NC REALTORS® standard forms are often not a good fit for these sorts of transactions. Make sure you have the tools necessary to help your client, including an attorney who can help your client interpret custom, nonstandard forms, if necessary.