WORKING
WITH REAL ESTATE
AGENTS IN NORTH CAROLINA
"IT’S
THE LAW!"
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North Carolina’s state-mandated consumer protection law. Here is a brief description of North Carolina’s Law of Agency—about agency relationships and services, and representation in a real estate transaction.
The Law of Agency says: On “first substantial contact” clients/potential clients need to know who is representing who. (Example: At The Eco-Steward Real Estate Firm we are essentially Buyers’ Brokers, representing buyers/investors. 95% of our business involves buyers/investors, although we do accept amazing properties to represent for the
sellers from time-to-time.) The Law of Agency says: Clients/potential clients have rights under the Law. These rights need to be reviewed prior to that client/potential client offering significant details that could negatively impact negotiations in a transaction.
Acknowledgement of Allegiance, Relationships
and Representation Form.
With this in mind, please review the information that follows and please note that 1) You can choose a number of ways in which to work with the real estate professionals. 2) It is important for you to choose what the nature of that relationship will be. 3) We will review these options via email or phone and when we meet.
Acknowledgement of Allegiance, Relationships
and Representation Form.
IMPORTANT
INFORMATION FOR BUYERS
IMPORTANT
INFORMATION FOR SELLERS
PLEASE
REVIEW & REPLY
Acknowledgement of Allegiance, Relationships
and Representation Form
WHAT BUYERS/INVESTORS NEED TO KNOW ABOUT
REAL PROPERTY TRANSACTIONS & THE LAW OF AGENCY IN NORTH CAROLINA
Buyers/investors need to know that ALL real estate agents start out owing their allegiance to SELLERS. Consequences should buyers/investors reveal significant information—like how much money they have to spend or that they are in a hurry to buy—could weaken their position in a negotiation process. Therefore, North Carolina enacted the Law of Agency, a consumer protection law.
Since real estate transactions in the State of North Carolina can favor
sellers, buyers/investors may choose to inform real estate agents right away that they prefer a Buyer (as opposed to Seller) Agency Relationship. The Buyer Agency Relationship can put buyers/investors in a position of strength because the real estate professional now owes his or her allegiance to the buyer/investor, and not to the Seller.
Agency Relationship
Choices: When selling, buying and/or investing in real estate, people have several choices as to where the firm and its agents place their allegiance.
1.
Buyer Agency Relationship. Here the real estate agent’s allegiance is to
buyers/investors. If that is the choice, simply, and immediately tell the REALTOR® that you choose a BUYER
Agency (as opposed to Seller) Relationship.
2.
Dual Agency Relationship. Here buyers/investors may select a property that is listed by their REALTOR®. In that case, after consideration, they may be choose to permit a dual agency relationship.
3.
Seller/Seller Subagency Relationship. By not informing their agent that they want a Buyer Agency Relationship, buyers/investors could continue the Seller (Seller's Agent or Subagent) Relationship.
How the ECO Certified® Consultants at The Eco-Steward Real Estate Firm work: When working with investors/buyers we prefer to owe allegiance to our buyer/investor clients. Simply tell us you choose the Buyer Agency Relationship. This is a benefit to our buyer/investor clients. It keeps pertinent information to a transaction from being given to Sellers. This is NOT a contract. *Until you choose the Buyer Agency Relationship, avoid sharing information you would not want a Seller to know.
Contracts: Later, we hope you will choose one of our Eco Certified® professionals at The Eco-Steward Real Estate Firm to be Your Exclusive Representative. This IS an employment contract. (Fees for under this contract usually are paid from the Seller’s Column at Closing. Real estate firms and their clients benefit from having a clear understanding of what relationships, services and fees are—what a firm will do for clients—spelled out in a written agreement. However, firms may represent and assist clients for a time as Buyer's Brokers without a written agreement. When clients decide to make an Offer to Purchase a particular property, the Broker/Brokerage must obtain a written agreement.
Services: Whether one has a written or unwritten agreement, a Buyer’s Broker will perform a number of services for the client. These may include:
• researching properties to meet clients’ specs within a geographical area
• acting as the “resource for Resources” (legal, mortgage, appraisals, etc.)
• site visits for relocating clients
With a written Right to Represent agreement, the Broker can also assist in the preparation of an Offer to Purchase and Contact. S/he can also act as liaison during the transaction, submitting the written Offer to the Seller, assisting with negotiations, and informing clients all the way to a Happy Closing Event.
Compensation: A Buyer’s Broker can be compensated in different ways. Clients could opt to can pay the Broker directly. Or the Broker may seek compensation from the seller or listing agent. Whatever the case, the compensation arrangement is spelled out in a Right to Represent agreement.
Dual
Agent
Buyers/Sellers may permit a Broker or firm to represent both Buyer and Seller at the same time. This "dual agency relationship" is most likely to happen when a property is listed with your buyer's agent or the agent's firm. If this occurs a separate agreement or document permitting him or her to act as agent for both you and the seller is drawn up. Note: 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. If clients choose the "dual agency" option, and since a dual agent's loyalty is divided between parties with competing interests, it is especially important that clients have a clear understanding of
• what the relationship is with the dual agent and
• what the agent will be doing for the client 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
Here, the Seller’s Broker represents the seller—not the
buyer—and therefore must try to obtain for the seller the best possible price and terms for the
seller's property. A seller's agent is required to give the seller any information about the
buyer (even personal, financial or confidential information) that would help the
seller in the sale of his or her property. In the State of North Carolina, real estate agents must tell clients/potential clients in writing if they are
sellers' agents before clients/potential clients say anything that can help the
seller. Therefore, buyers/investors should avoid saying anything they do not want a
seller to know. Sellers' agents are compensated by the sellers. The acknowledgement card for this document is available here for you to print and sign.
Acknowledgement of Allegiance, Relationships
and Representation Form.
WHAT SELLERS NEED TO KNOW ABOUT REAL PROPERTY TRANSACTIONS & THE LAW OF AGENCY IN NORTH CAROLINA
Seller's
Agent
Clients selling real estate may "list" property for sale with a real estate firm. If so, sign a "listing agreement" authorizing the firm and its agents to represent you in your dealings with buyers as your seller's agent. Sellers may also be asked to allow agents from other firms to help find a buyer for their property. Once Sellers have signed the listing agreement, the firm and its agents may not give any confidential information about them to prospective buyers or their agents without their permission so long as they represent you. But until they actually sign the listing agreement, they should avoid telling a listing agent they have not made a commitment to anything they 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
• preparing a Comparative Market Analysis (CMA)
• helping price the property
• advertising and marketing the property
• giving all required property disclosure forms to complete
• negotiating best possible price and terms
• reviewing all written offers
• otherwise promoting Seller interests.
Dual Agent
Sellers may permit the listing firm and its agents to represent the
seller and the buyer at the same time. This "dual agency relationship" is most likely to happen if an agent with the listing firm is working as a buyer's agent with someone who wants to purchase the
seller’s property. 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.
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ACKNOWLEDGEMENT OF AGENCY RELATIONSHIP AND REPRESENTATION
The Eco-Steward Real Estate Firm kindly requests the use of the following electronic acknowledgement form. You are not being added to any emailing list and your personal information is confidential according to our Privacy Statement found
HERE. All fields are required and upon selecting the 'Submit' button you are agreeing to the following:
"I/we have read
'Working with Real Estate Agents in North Carolina'. Buyer’s Broker will review the form. I/we may choose to have either a Buyer Agency Relationship where allegiance is to me/us, Seller Agency OR Dual Agency representation. At this time I/we am/are choosing":
1:
Please Select One Option:
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