Working with North Carolina Real Estate Agents
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 information 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 so long as
they represent you. 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 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.
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
so long as they represent you. 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 a 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 writing if
they are sellers' 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 a
seller to know.
Sellers' agents are compensated by the sellers.
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If you have any questions or would like more
information, please contact us 828-689-7244,
email us, or use our
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