Understanding North Carolina’s ‘Working With Real Estate Agents’ Disclosure: What Buyers Need to Know
Buying a home is one of the biggest financial decisions you’ll make, and understanding your relationship with a real estate agent is key to ensuring a smooth and successful experience. In North Carolina, real estate agents are required to provide buyers with a form called the Working With Real Estate Agents Disclosure at the first substantial contact. But what does this document actually mean for you? Let’s break it down in simple terms.
What is the ‘Working With Real Estate Agents’ Disclosure?
First, this form is not a contract. Signing it does not mean you are committed to working with a specific agent—it only confirms that you have received and reviewed the disclosure. The purpose of this document is to help you understand how an agent may or may not represent you in a real estate transaction before you share any confidential information.
In real estate, representation matters. The way an agent represents you impacts their loyalty, responsibilities, and duties in the transaction. This form outlines the four types of agency relationships available when buying a home.
Types of Real Estate Representation in North Carolina
1. Buyer Agency (Exclusive Representation for You)
If you agree to work with a buyer’s agent, that agent (and their firm) represents you exclusively and is legally bound to act in your best interest. Your agent will:
- Advocate for you in negotiations
- Help you find the best property
- Provide advice and guidance throughout the process
Important: You can initially start with an oral agreement, but before submitting an offer (written or verbal), you must sign a written Buyer Agency Agreement.
2. Unrepresented Buyer (Seller Subagent)
If you choose not to have an agent represent you, the agent assisting you in the transaction will actually represent the seller. This means:
- The agent must act in the seller’s best interest
- They can assist you but are not loyal to you
- Do not share any confidential information with this agent, as they are required to share it with the seller
3. Dual Agency (Same Firm Represents Both Buyer & Seller)
Dual agency happens when the same real estate firm represents both you and the seller in a transaction. In this case:
- The agent’s loyalty is split between both parties
- They must treat both the buyer and seller fairly and equally
- They cannot provide guidance that would give one party an advantage over the other
Important: You must agree to this arrangement in writing before making an offer.
4. Designated Dual Agency (More Separation Within the Same Firm)
This option provides a bit more protection than standard dual agency. The firm still represents both parties, but it assigns one agent to the buyer and a different agent to the seller. In this case:
- Your designated agent works only for you
- The seller’s designated agent works only for them
- This setup reduces the risk of a conflict of interest
Like dual agency, this arrangement must be agreed to in writing before an offer is made.
Why This Disclosure Matters to Buyers
- Protects Your Interests: Understanding representation ensures that you make informed decisions about who is advocating for you.
- Prevents Conflicts of Interest: Without a signed agreement, an agent may be obligated to share confidential information with the seller.
- Ensures Transparency: This form helps clarify roles so you know exactly what to expect from the agent assisting you.
Final Thoughts: What Should You Do Next?
If you’re starting your home search, review this disclosure carefully and ask questions. Decide whether you want exclusive representation, and if so, sign a Buyer Agency Agreement to ensure you have an agent working in your best interest.
Still have questions about how representation works in North Carolina? I’d be happy to walk you through the process and help you find the right home with confidence! Reach out today to get started.
