News Bulletin - June 28, 2018
Forms Release Date Changed to July 3, 2018
Changes to Clauses in Some Additional Forms
Forms Release Date Changed to July 3, 2018
The NSREC was just notified by the NSAR that their provider, WEBForms®, cannot accommodate the July 1 release date for the new forms. The NSREC has been advised that the forms will not be available on WEBForms® until July 3 at 12 noon Atlantic Time. Any questions pertaining to WEBForms® should be directed to the NSAR.
As a result, the NSREC Board of Directors has approved a new release date of July 3 to accommodate licensees who use WEBForms®.
For licensees who have requested early access to the new forms for administrative purposes, there won’t be any compliance issues raised if you start using them on July 1. However, it would be preferable if you started using them on July 3 along with everyone else.
If you are using the NEW forms, use the NEW applicable schedules.
If you are using the OLD forms, use the OLD applicable schedules.
As of July 3, ALL licensees must use the NEW forms.
Changes to Clauses in Some Additional Forms
As stated in the Monday, June 25, news bulletin, the NSREC Board of Directors recently approved revisions to five additional forms. Use of these revised forms will also be required as of July 3. The information below explains changes to clauses in the new forms:
Form 100—Working with the Real Estate Industry
Form 100—the following sections have changed:
- Transaction Brokerage
- Privacy and Use of Personal Information
Form 300—Buyer Brokerage Agreement (BBA)
Form 301—Buyer Designated Brokerage Agreement (BDBA)
Brokerage's Remuneration
The remuneration clause is the same in both the BBA and the BDBA. In the BBA it is clause 4.1, and in the BDBA it is clause 6.1. The changes clarify under what situations an amendment is required when dealing with changes in remuneration.
If the remuneration offered by the seller is less than what was agreed to in clause 4.1/6.1, and that remuneration is acceptable to the brokerage, this change does not require an amendment. Written notification (for an example an email from the buyer’s brokerage to the buyer) is required before an offer is prepared.
However, if the brokerage is not prepared to accept the lower remuneration offered by the seller, and the buyer agrees to pay the difference, this will require an amendment to the BBA/BDBA (based on what is negotiated)—see clause 4.1 (b)/6.1 (b). An amendment is required in this case because according to clause 4.1 (a)/6.1 (a) it was agreed that the “seller or seller’s brokerage” would pay the remuneration, and the buyer has agreed to pay the difference.
If the remuneration offered by the seller is more than what was agreed in clause 4.1/6.1, the brokerage will keep the difference (see clause 4.1 (c)/6.1 (c)) and no amendment is required. However, written notification (an email from the brokerage to the buyer) of the amount the seller is offering must be provided to the buyer before an offer is prepared (see 4.1 (d)/6.1 (d)).
Clause 4.1 (d)/6.1 (d) states that if the remuneration changes at any time after the offer is accepted and on or before closing, written notification must be provided to the buyer.
Licensees are to maintain a copy of all written notifications in the brokerage transaction file.
Change in Representative Capacity of the Brokerage
The change in representation clause is similar in context in the BBA and the BDBA. In the BBA it is clause 6, and in the BDBA it is clause 8.
This clause was changed to address concerns and give weight to all representation options, rather than having transaction brokerage appear to be the most common option.
Form 411—Transaction Brokerage Agreement for Common Law
Form 412—Transaction Brokerage Agreement for Designated Agency
These two forms were revised to be more understandable to consumers and licensees. Both of the Transaction Brokerage forms provide clarity, but also are to the point.
