North Carolina Agency Law: Working with Real Estate Agents

North Carolina has a distinct approach to agency disclosure — the "Working with Real Estate Agents" brochure — that's tested on virtually every NC exam. Here's everything you need to know.

North Carolina Agency Options

North Carolina law (NCGS Chapter 93A and NCREC Rules) provides for these agency relationships:

Seller's Agent Represents the seller with full fiduciary duties (OLDCAR). The presumed relationship in NC unless a written buyer agency agreement exists.

Buyer's Agent Represents the buyer with full fiduciary duties. In NC, a licensee becomes the buyer's agent **only when there is a written buyer agency agreement**. Without it, the licensee is presumed to be the seller's agent or subagent.

Dual Agent One licensee or firm represents both buyer and seller. Requires: - Full disclosure to both parties - **Written consent** from both parties - The dual agent cannot fully advocate for either party

Designated Dual Agency (Designated Agency) When a brokerage represents both parties, the **broker-in-charge (BIC)** appoints different licensees to represent each party. Each designated agent represents only their client with full fiduciary duties. The BIC must be disclosed as a dual agent.

The "Working with Real Estate Agents" Brochure

NCREC developed this brochure to explain agency options to the public. Key rules:

When it must be provided: - At the first substantial contact with a prospective buyer or seller - "First substantial contact" = when a licensee and prospective client/customer first have a meaningful discussion about a specific property or the person's real estate needs

What it covers: - Explanations of seller agency, buyer agency, and dual agency - What duties are owed in each type of relationship - Consumer's right to choose representation type

What the licensee does with it: - Provide the brochure - Discuss the information with the prospective client - NOT required to sign — the brochure is informational, not a contract

Why it matters for the exam: - Failure to provide the brochure at first substantial contact is a NCREC Rule violation - The brochure must be provided to both buyers AND sellers - Licensees acting as buyer's agents must still provide the brochure

Buyer Agency Agreement in NC

Without a written buyer agency agreement, a NC licensee: - Is presumed to represent the seller - Owes limited duties to the buyer (honesty, disclosure of material facts) - Cannot share the seller's confidential information with the buyer they're working with (no loyalty to buyer)

This is the most commonly tested NC agency scenario: "An agent shows a buyer homes without a written agreement — who does the agent represent?" Answer: The seller.

Common Exam Questions

Q: A North Carolina licensee meets a buyer for the first time to discuss homes in their price range. When must the Working with Real Estate Agents brochure be provided? A: At this first substantial contact — immediately.

Q: A licensee works with a buyer for 3 weeks without a written buyer agency agreement. The buyer is unrepresented. This licensee represents: A: The seller (or is an unrepresented subagent) — NOT the buyer. Without written agreement, buyer agency does not exist in NC.

Q: A brokerage firm represents both the buyer and seller. They designate different agents for each. The broker-in-charge is: A: A dual agent (with designated agents under them representing each party separately).

[Practice NC agency questions at CARealestate.com/states/north-carolina](https://carealestate.com/states/north-carolina)