The Advocate
September 1, 2023

Bipartisan efforts led by Rep. Kyle Hall, Attorney General Josh Stein, NC REALTORS® and other stakeholders culminated at the Executive Mansion on Thursday, August 24 as Gov. Roy Cooper signed House Bill 422 – Unfair Real Estate Agreements Act into law.

This important legislation protects homeowners from being targeted by risky real estate deals, typically those targeted are senior citizens and the more vulnerable people in our society.

House Bill 422 prohibits unfair real estate service agreements, and the recording of unfair real estate service agreements. It also provides remedies for owners harmed by the recording of those unfair agreements.

The work on this legislation was in response to a real estate company that signed homeowners to contracts that guaranteed the company would be their real estate agent if they sold their home within 40 years. If the homeowners broke their contract and sold with a different agent they still owned the company 3% of their home’s value. These types of predatory contracts continue even after the death of the owner.

NC REALTORS® was on board from the start with a push to end this unfair real estate practice. In fact, this bill was so important it was added as one of NCR’s top legislative priorities of the year. Our lobbying team spearheaded efforts to pass this legislation and that was evident during the comments provided at the bill signing ceremony as state lawmaker publicly thanked NCR.

President Leigh Brown attended the bill signing ceremony. “As REALTORS® it’s important for us to work with all state lawmakers when advocating for sound policy that improves the lives of homeowners,” explained Leigh. “Yes, we want to be strong advocates for changes affecting the real estate industry but it’s equally important to lead efforts when we have the opportunity to protect consumers and especially the more vulnerable citizens of our great state.”

Governor Roy Cooper and President Leigh Brown at the bill signing ceremony for HB 422

With the legislative session currently focusing on the state budget and other high profile issues, it is a testament to REALTOR® strength and the power of bipartisan efforts that we were able to pass this legislation. NCR’s lobbying team continues to advocate for other issues of importance to our industry. Please be sure to look for more legislative updates in future Advocates.

If you have any questions or comments about the Advocate, please contact Pam Melton, Director of Political & External Communications.