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"WORKING WITH
REAL ESTATE AGENTS" is a brochure provided by the North Carolina
Real Estate Commission. Real estate agents are required to
present and explain this brochure to Buyers & Sellers as part of the
home sale process. Buyers & Sellers should sign the brochure
and retain the information sheet; the agent will detach and keep the
"acknowledgement" portion after the acknowledgement has been signed.
Signing this form DOES NOT obligate you to work with that particular
agent. It simply means the agent has furnished you a copy, and
has reviewed it with you.
Buyers & Sellers should read the brochure and understand it
thoroughly before committing to any agency relationships. Know
for whom "your" agent works!
The brochure is available here as a PDF file (approx. 136KB).
You must have Adobe Acrobat Reader to open and view it:
WORKING WITH
REAL ESTATE AGENTS
In addition, the brochure has been included
below:
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WORKING WITH
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 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 it's
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. 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.
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.
Be sure to read and understand any agency agreement before you sign
it.
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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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.
____________________________________________
Buyer or Seller Name (Print or Type)
____________________________________________
Buyer or Seller Signature
____________________________________________
Buyer or Seller Name (Print or Type)
____________________________________________
Buyer or Seller Signature
____________________________________________
Date
____________________________________________
Firm Name
____________________________________________
Agent Name
Disclosure of Seller Subagency
When showing you property and assisting you in the purchase of a
property, the above agent and firm will represent the SELLER. For
more information, see "Seller's Agent Working with a Buyer" in the
brochure.
____Buyer's Initials Acknowledging Disclosure:
Agents must retain this acknowledgment for their files.
The North Carolina Real Estate Commission
P.O. Box 17100 • Raleigh, North Carolina 27619-7100
919/875-3700 • Web Site:
www.ncrec.state.nc.us
REC 3.45 5/1/01
00,000 copies of this public document were printed at a cost of $.00
per copy.
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End of
brochure...
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