The NC REALTORS® Management Division recommends that the forms listed below be revised or added to the NCR Forms library effective July 1, 2019. A summary of the significant changes to each form follows the list. A marked-up copy of each form showing the exact changes has been provided with the Executive Committee’s meeting materials.

(1) Exclusive Agreement (Long-term Rental Property) (form 401) (2) Residential Rental Contract (form 410-T) (3) Exclusive Right To Advertise/ Agreement (form 405-T) (NEW) (4) Short-Term Rental Agreement (form 412-T) (NEW)

(1) Exclusive Property Management Agreement (Long-term Rental Property) (form 401)  Paragraph 3(a)—At the request of the Commission's staff, changes to the format of the current version of the form regarding the firm's management fee have been made to clarify that the firm is entitled to an agreed-upon minimum fee when the property is vacant  Paragraph 3(b)—This new paragraph has been added to address the firm's entitlement to an agreed-upon fee if a tenant who the property during the term of the management agreement agrees to buy the property during the term of the management agreement or the initial term of the tenant's lease if the initial term ends after the end of the management agreement.  Paragraph 9—This new paragraph has been added wherein the owner represents that at the time the management agreement is signed, the owner is not in bankruptcy or , and that the owner is current on taxes, mortgage payments and governmental or owner association assessments. Hopefully, the addition of this paragraph will help facilitate a discussion of these important issues before the agrees to manage the owner's property.  Paragraph 11—New wording has been added to the second checkbox to give the firm and the a greater degree of flexibility in determining whether a tenant will be allowed to bring a particular pet onto the property in situations where the landlord has indicated that pets are permissible

(2) Residential Rental Contract (form 410-T)  "Note" (top of page 1) --Unlike a contract for the sale of an interest in real estate, a residential lease agreement does not have to be in writing to be legally enforceable. This new Note has been added to clarify that the Rental Contract doesn't become binding until it has been signed by all parties.  Paragraph 9(b)—Since some owner associations aren't managed by management companies, minor changes to this paragraph have been made to include the name and contact information of the association's president  Paragraph 24—in the aftermath of Hurricanes Matthew and Florence, a number of property managers have had to address situations in which a tenant has refused to move out of a property that has been substantially damaged. The amendments to this paragraph clarify the landlord's right to terminate a rental contract under such circumstances and the rights and obligations of the parties in the event of any such termination.

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(3) Exclusive Right To Advertise/Lease Agreement (form 405-T) (NEW)  This new form may be used to market a residential property for lease and, at the option of the firm and the owner, secure a tenant for the property. In either event, the firm will not provide management services for the property.

(4) Short-Term Rental Agreement (form 412-T) (NEW)  Property managers are occasionally involved in for very short periods of time that are similar to vacation rentals except that they are being rented for non-vacation rental purposes. An example might be the off-season rental of a vacation rental property for a period of several weeks to an out-of- town construction crew that has been engaged to make repairs/improvements to another property. This new form, patterned closely after the existing Vacation Rental Agreement, may be used to rent a property for short-periods of time for non-vacation rental purposes.  Users are warned that the form does not address issues typically addressed in long-term rental agreements and are discouraged from using the form for rentals longer than 90 days  As noted at the top of the first page, the form should not be used for vacation rentals, and it should not be used for possession before or after in connection with a sales transaction.

The forms are available on the NCR website and in the forms software program of NCR’s approved forms software vendor. Permitted users of the forms will have 60 days following their effective date to transition to the new versions. Therefore, old versions should not be used in transactions taking place after the end of August 2019.

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