Slim Gets ‘Schooled’ on NCAR Forms Policy

Dear Forms Guy: I have a client who I have represented in purchasing several investment properties. He intends to fix them up and lease them himself. Can I supply him with blank lease forms from the NCAR forms library for him to use? Sincerely, Slim

Dear Slim: I’m afraid not. NCAR has a Forms Policy that describes in detail who can use NCAR’s standard forms and under what circumstances the forms may be used. According to the Forms Policy, “Permitted users may use NCAR’s standard forms in connection with a transaction in which the permitted user is involved as a broker or a principal. Permitted users may not distribute blank NCAR’s forms to clients, customers or others, either gratuitously or for a fee, except that they may distribute specimen copies of any NCAR form to their clients or customers for review purposes.” Sincerely, Forms Guy

Slim: Who are “permitted users?”

Forms Guy: According to the Forms Policy, the following persons may use any of NCAR’s standard forms: w REALTOR®, Affiliate, and Allied Members of NCAR; w REALTORS® from other states (upon satisfactory proof of such membership); and w Non-member sales associates of REALTOR® member firms. (However, a non-member is not allowed to purchase the forms directly or access the forms via the NCAR website.)

In addition, members in good standing of the North Carolina State Bar are allowed to use NCAR’s “transactional forms.”

Slim: What’s a “transactional form?”

Forms Guy: Any form used in connection with a real estate sales or lease transaction by the parties to the transaction is considered a “transactional” form, and is designated as such by the addition of a “T” after the form’s form number found in the lower right-hand corner of the form. All other forms are considered “non-transactional” forms. An example of a transactional form would be the Offer to Purchase and Contract. An example of a non-transactional form would be any of the listing, management or buyer agency agreements.

Slim: You said that it was okay for us to give sample forms to our clients for review purposes. I always give my new seller and buyer clients a copy of the Offer to Purchase and Contract when they sign the listing or buyer agency agreement. It would be convenient if I could put a sample of that form on my website. Is that okay?

Forms Guy: According to the Forms Policy, members may not display sample copies of NCAR forms on their own websites, but they may link to NCAR’s site where the sample forms are displayed. That’s actually easier for you because you don’t have to keep up with changes to the forms – it’s done for you “automatically” since the sample forms are kept current on the website where they are displayed.

Slim: What’s the website where the sample forms are displayed?

Forms Guy: It’s the North Carolina Living Network (www. nc.living.net). Click on “Consumer Information” on the left-hand side of the home page and then on the next page click on “NCAR Sample Forms” under “Other Helpful Information.” The forms are listed in numerical order.

Slim: Thanks, Forms Guy. If I have other questions, is a copy of NCAR’s Forms Policy available for me to review?

Forms Guy: Yes. After you log onto the NCAR website (www.ncrealtors.org), click on “Legal Department” on the left-hand side, and on the Legal Department page you’ll see a link to the Forms Policy under “Standard Forms.” And while you’re there, check out all the other good stuff on the Legal Department page!