The NC WWREA brochure explains three possible agency relationships. Which one is NOT a recognized agency relationship in NC real estate?
Why Transaction broker (non-agent) Is Correct
Answer D: Transaction broker (non-agent)
North Carolina brokers may represent a seller (including as a seller's subagent) or a buyer, always with the consumer's express consent. NCREC states that there is no 'default' form of representation and no such thing as acting as a broker for neither party. Under 21 NCAC 58A .0104(d), a broker representing one party may not represent another without each party's written authority, which is dual agency. A neutral 'transaction broker' role is therefore not recognized.
Source: NCREC Bulletin: Getting Agency Representation Right (April 2021); 21 NCAC 58A .0104(d)
Exam Tip: Agency
Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.
Key Agency Terms in This Question
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Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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