Arizona Realtors unveils new forms that are ‘to the point’
The state association is rolling out buyer agreements and other forms that it believes offer a balance of simplicity and agent protections.
Key points:
- Arizona Realtors is offering members several new forms to support industry rule changes set to take effect in August.
- The organization focused on readability — an issue highlighted in a recent report from a consumer watchdog group.
- The association is still offering a broker-to-broker compensation form, at least for now.
One of the largest state real estate associations is rolling out new buyer and seller agreement forms it believes will protect agents — without being overly complicated.
The Arizona Association of Realtors, which represents more than 53,000 members in the state, has begun releasing drafts of new and revised forms, along with line-by-line descriptions and FAQs, in an effort to help agents comply with upcoming rule changes.
The forms will be officially available on Aug. 1, well ahead of the Aug. 17 deadline set by the National Association of Realtors.
A focus on readability
Shelley Ostrowski, the association's president, said she couldn't be more pleased by the way the process has been handled through its committees, volunteers and staff. She noted that the forms had to cover a lot of complex information in a clear, concise manner.
"We feel that (our forms) are what we need: to the point, and with the protection that's needed for us as Realtors," Ostrowski said.
One of the draft forms is a one-page touring agreement for agents who want to show properties to a prospective buyer. For agents who enter into a more formal working relationship with a buyer, the association has created a three-page buyer agent employment agreement which explains that broker compensation is not set by any organization — and is negotiable.
Real estate agents are allowed to use their own forms if they wish, but Ostrowski said the association wanted to ensure members have access to forms that have passed committee and legal scrutiny.
Avoiding unwanted scrutiny
Creating clear, transparent forms isn't just for the benefit of the consumer, but could help Arizona Realtors steer clear of trouble. Other organizations haven't been so lucky. The California Association of Realtors drew criticism from the Consumer Federation of America over its forms, which the watchdog group considered to be being "virtually unreadable." On the other hand, the CFA heaped praise on eXp for its simpler forms.
C.A.R. was also forced to delay releasing its new forms after it received a formal inquiry from the U.S. Department of Justice, but has since released revised forms on July 10 that eliminated language around offers of compensation. The association said that while putting such offers in writing is legal, eliminating that option was "in the best interest of our members and consumers." The new C.A.R. forms will be available for use on July 24.
"Standard forms are evolving documents, and we believe that these revisions not only meet the needs of the current moment but also equip our members with the best possible tools to ensure their ongoing success," said Melanie Barker, C.A.R. president.
For now, the Arizona Association of Realtors is keeping its broker compensation agreement, but that form will be discussed in a future meeting after getting more feedback, Ostrowski said.
'We're here for you'
Buyer-broker agreements have been available in Arizona for some time, so the new forms won't be unfamiliar to real estate agents in the state. Ostrowski acknowledges that it is still a big change for some in the industry — but she believes it's better to embrace the change rather than fear it.
"Agents are not creatures of change, and we know that," Ostrowski said. "In Arizona, we have made it really clear… that we've got you with these forms. We're here for you."