NOTE: Effective July 1, 2001, in every real estate sales transaction, a real estate agent shall, at
first substantial contact directly with a prospective buyer or seller, provide the prospective
buyer or seller with the following information [NC Real Estate Commission Rule 21 NCAC
58A.0104(c)].
When buying or selling real estate, you may find it helpful to have a real estate agent assist you.
Real estate agents can provide many useful services and work with you in different ways. In
some real estate transactions, the agents work for the seller. In others, the seller and buyer
may each have agents. And sometimes the same agents work for both the buyer and the seller.
It is important for you to know whether an agent is working for you as your agent or simply
working with you while acting as an agent of the other party.
This brochure addresses the various types of working relationships that may be available to you.
It should help you decide which relationship you want to have with a real estate agent. It will
also give you useful information about the various services real estate agents can provide
buyers and sellers, and it will help explain how real estate agents are paid.
SELLERS
Seller's Agent
If you are selling real estate, you may want to "list" your property for sale with a real estate
firm. If so, you will sign a "listing agreement" authorizing the firm and its agents to represent
you in your dealings with buyers as your seller's agent. You may also be asked to allow agents
from other firms to help find a buyer for your property.
Be sure to read and understand the listing agreement before you sign it.
Duties to Seller: The listing firm and its agents must • promote your best interests • be loyal to
you • follow your lawful instructions • provide you with all material facts that could influence
your decisions • use reasonable skill, care and diligence, and • account for all monies they
handle for you. Once you have signed the listing agreement, the firm and its agents may not
give any confidential information about you to prospective buyers or their agents without your
permission. But until you sign the listing agreement, you should avoid telling the listing agent
anything you would not want a buyer to know.
Services and Compensation: To help you sell your property, the listing firm and its agents will
offer to perform a number of services for you. These may include • helping you price your
property • advertising and marketing your property • giving you all required property disclosure
forms for you to complete • negotiating for you the best possible price and terms • reviewing
all written offers with you and • otherwise promoting your interests.
For representing you and helping you sell your property, you will pay the listing firm a sales
commission or fee. The listing agreement must state the amount or method for determining
the commission or fee and whether you will allow the firm to share its commission with agents
representing the buyer.
Dual Agent
You may even permit the listing firm and its agents to represent you and a buyer at the same
time. This "dual agency relationship" is most likely to happen if an agent with your listing firm
is working as a buyer's agent with someone who wants to purchase your property. If this occurs
and you have not already agreed to a dual agency relationship in your listing agreement, your
listing agent will ask you to sign a separate agreement or document permitting the agent to act
as agent for both you and the buyer.
It may be difficult for a dual agent to advance the interests of both the buyer and seller.
Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual
agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging
certain confidential information about them to the other party.
Some firms also offer a form of dual agency called "designated agency" where one agent in the
firm represents the seller and another agent represents the buyer. This option (when available)
may allow each "designated agent" to more fully represent each party.
If you choose the "dual agency" option, remember that since the dual agent's loyalty is divided
between parties with competing interests, it is especially important that you have a clear
understanding of • what your relationship is with the dual agent and • what the agent will be
doing for you in the transaction.
BUYERS
When buying real estate, you may have several choices as to how you want a real estate firm
and its agents to work with you. For example, you may want them to represent only you (as a
buyer's agent). You may be willing for them to represent both you and the seller at the same
time (as a dual agent). Or you may agree to let them represent only the seller (seller's agent or
subagent). Some agents will offer you a choice of these services. Others may not.
Buyer's Agent
Duties to Buyer: If the real estate firm and its agents represent you, they must • promote your
best interests • be loyal to you • follow your lawful instructions • provide you with all material
facts that could influence your decisions • use reasonable skill, care and diligence, and •
account for all monies they handle for you. Once you have agreed (either orally or in writing)
for the firm and its agents to be your buyer's agent, they may not give any confidential
information about you to sellers or their agents without your permission. But until you make
this agreement with your buyer's agent, you should avoid telling the agent anything you would
not want a seller to know.
Unwritten Agreements: To make sure that you and the real estate firm have a clear
understanding of what your relationship will be and what the firm will do for you, you may want
to have a written agreement. However, some firms may be willing to represent and assist you
for a time as a buyer's agent without a written agreement. But if you decide to make an offer
to purchase a particular property, the agent must obtain a written agency agreement. If you do
not sign it, the agent can no longer represent and assist you and is no longer required to keep
information about you confidential. Furthermore, if you later purchase the property through an
agent with another firm, the agent who first showed you the property may seek compensation
from the other firm.
Be sure to read and understand any agency agreement before you sign it.
Services and Compensation: Whether you have a written or unwritten agreement, a buyer's
agent will perform a number of services for you. These may include helping you • find a
suitable property • arrange financing • learn more about the property and • otherwise promote
your best interests. If you have a written agency agreement, the agent can also help you
prepare and submit a written offer to the seller.
A buyer's agent can be compensated in different ways. For example, you can pay the agent out
of your own pocket. Or the agent may seek compensation from the seller or listing agent first,
but require you to pay if the listing agent refuses. Whatever the case, be sure your
compensation arrangement with your buyer's agent is spelled out in the buyer agency
agreement before you make an offer to purchase property and that you carefully read and
understand the compensation provision.
Dual Agent
You may permit an agent or firm to represent you and the seller at the same time. This "dual
agency relationship" is most likely to happen if you become interested in a property listed with
your buyer's agent or the agent's firm. If this occurs and you have not already agreed to a dual
agency relationship in your (written or oral) buyer agency agreement, your buyer's agent will
ask you to sign a separate agreement or document permitting him or her to act as agent for
both you and the seller. It may be difficult for a dual agent to advance the interests of both the
buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally.
Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents
from divulging certain confidential information about them to the other party.
Some firms also offer a form of dual agency called "designated agency" where one agent in the
firm represents the seller and another agent represents the buyer. This option (when available)
may allow each "designated agent" to more fully represent each party.
If you choose the "dual agency" option, remember that since a dual agent's loyalty is divided
between parties with competing interests, it is especially important that you have a clear
understanding of • what your relationship is with the dual agent and • what the agent will be
doing for you in the transaction. This can best be accomplished by putting the agreement in
writing at the earliest possible time.
Seller's Agent Working with a Buyer
If the real estate agent or firm that you contact does not offer buyer agency or you do not want
them to act as your buyer agent, you can still work with the firm and its agents. However, they
will be acting as the seller's agent (or "subagent"). The agent can still help you find and
purchase property and provide many of the same services as a buyer's agent. The agent must
be fair with you and provide you with any "material facts" (such as a leaky roof) about
properties.
But remember, the agent represents the seller — not you — and therefore must try to obtain
for the seller the best possible price and terms for the seller's property. Furthermore, a seller's
agent is required to give the seller any information about you (even personal, financial or
confidential information) that would help the seller in the sale of his or her property. Agents
must tell you in writting if they are seller's agents before you say anything that can help the
seller. But until you are sure that an agent is not a seller's agent you should avoid saying
anything you do not want the seller to know.
Seller's agents are compensated by the seller.
WORKING WITH REAL ESTATE AGENTS
This is not a contract.
By signing, I acknowledge that the agent named below furnished a copy of this brochure and
reviewed it with me.
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Buyer or Seller Name (print or type)