Anyone who makes "substantial business contact" with a real estate broker who is licensed in the state of North Carolina should be presented the brochure pictured to the left almost immediately. This brochure can be in one of several formats and may not be identical to this. For more detailed information on this brochure click here. The reason this should happen is because the North Carolina Real Estate Commission requires that you be made aware that all agents you work with do not necessarily represent you or your best interests.
How can this be, you ask. You have called an agent and possibly confided in them information that could possibly compromise your negotiations on a particular property. After the fact, you learn that not only does this agent work for the seller, but also is obligated to make the seller aware of your confidential information. How can this be? To borrow from the sitcom, Seinfeld, "Oh, it can be! And, it does be!"
The "obligation" mentioned above is mandated by the "common law of agency," the roots of which originated in the Middle Ages. The hypothetical example above was exaggerated to make you aware of exactly why the NCREC requires every agent to discuss this important brochure with you VERY early in your relationship. Agency related matters dominate the complaints heard every year by the NCREC.
So, what do you need to do to ensure that you do not feel ill-used by an agent? The short answer is understanding. You should at least understand "seller agency," "buyer agency" and "dual agency." Don't hesitate to ask questions about this important subject. If you are a buyer, hire an agent to provide you "exclusive representation" as a "buyer's agent." In 99.9% of the cases, this is a FREE service to the buyer because the agent's commission is paid by the seller. It's a great deal for buyers here in NC. Also, here in NC, any buyer's agent must have a "written" buyer's agency agreement in place before they can write an offer to purchase for you. Many agents also feel that it is just reasonable to reach this formal agreement early in the buyer/agent relationship. It signifies a mutual trust in one of life's most important dealings. Maybe that is why this principle has lasted over a thousand years!
Download "Working with Real Estate Agents" here.