Real Estate Agency Relationships in North Carolina
A real estate agent might be of use while purchasing or selling property. There is a wide variety of methods in which real estate agents can help you. Agents may represent the seller in a real estate transaction. In some transactions, the buyer and seller may use intermediaries. Furthermore, it is not uncommon for the same agents to represent both the buyer and the seller. You need to know if the agent is acting on your behalf as your agent, or if they are only helping you out as the agent of the other party.
In this article, we’ll go over the several agency arrangements that could work for you. You can use this information to determine the type of relationship you wish to have with a realtor. In addition to explaining how real estate brokers are compensated, you’ll gain insight into the many services they offer to both buyers and sellers.
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Seller Representation
A real estate company can help you find buyers for your home if you “list” it with them. In such case, you’ll sign a “listing agreement” giving the company permission to act as your seller’s agent in negotiations with potential purchasers. It’s possible you’ll be requested to work with multiple brokers to sell your home. Before signing the listing agreement, make sure you fully read and comprehend everything. After you sign the listing agreement, your agent is obligated to provide you with a copy.
The listing brokerage and its representatives have several obligations to the seller, including acting in the seller’s best interests, remaining loyal to the seller, carrying out the seller’s lawful instructions, disclosing all relevant information that may affect the seller’s decisions, exercising reasonable skill, care, and diligence, and accounting for all funds in their possession or control. After you sign a listing agreement, the company and its agents are legally prohibited from disclosing any of your private information to potential purchasers or their agents without your express written consent. You should not provide any information to the listing agent that you would not want a buyer to know until after you have signed the listing agreement.
The listing company and its agents will offer a variety of services to you in exchange for a commission on the sale of your home. Some of these services include: assisting with setting the asking price; arranging for the property to be advertised and marketed; providing all necessary property disclosure forms; negotiating the best possible price and terms on your behalf; reviewing all written offers with you; and otherwise advocating on your behalf. You will pay the listing agency a sales commission or fee in exchange for their services in assisting you in the sale of your property. You should include the sales commission or fee and whether or not the firm will divide its commission with agents representing the buyer in the listing agreement.
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Dual Agency
You could agree to have the listing agency represent both you and the buyer. A “dual agency relationship” exists when a real estate agent from the listed firm also represents the prospective buyer. If this is the case, your listing agent will likely ask you to revise your listing agreement to give the agent authority to serve as agent for both you and the buyer. A dual agent may find it challenging to effectively represent the needs of both the buyer and the seller. However, a dual agent has an ethical obligation to handle both buyers and sellers with respect. Despite the fact that the dual agent owes the same duty to both parties, the parties can agree to prevent the dual agent from disclosing specific confidential information about any party.
The term “designated dual agency” refers to the practice through which one agent from the company acts on behalf of the seller while another agent acts on behalf of the buyer. When available, this choice may grant each “designated agent” greater authority to act on behalf of the other party.
If you go with the “dual agency” route, keep in mind that the agent’s loyalty will be split between you and the other party, so it’s crucial that you know exactly what to expect from the agent in terms of their role in the transaction and the nature of your relationship with them.
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Buyers
You may have various options for how you wish to interact with a real estate company and its agents while purchasing property. As a buyer, you might want them to exclusively represent your interests. You might be cool with them acting as a dual agent, representing both you and the seller. Alternately, you might hire them as a seller’s agent or subagent. You may be given a choice between these options by some brokers. Nonetheless, there are many who won’t agree.
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The Buyer’s Agent
The buyer has certain duties, including that the real estate company and its agents must: advocate for the buyer’s best interests; be loyal to the buyer; carry out the buyer’s lawful instructions; disclose all relevant information that might affect the buyer’s decision-making process; exercise reasonable skill, care, and diligence; and account for any funds in the buyer’s possession. If you hire a company to act as your buyer’s agent, whether verbally or in writing, they are legally bound to keep any information about you that could be used to identify you as the buyer discreet from the sellers and their agents. However, until such an agreement is reached with your buyer’s agent, you should refrain from disclosing any information that you would not want a seller to know.
The absence of a written agreement between you and the real estate firm raises questions about the nature of your relationship and the services to be provided by the company. Some businesses, however, may be ready to act as your buyer’s agent for a limited time without a formal contract. However, before drafting an offer to acquire a specific property, the agent must first have a signed agency agreement. If you don’t sign it, the agent is no longer obligated to keep information about you confidential and can no longer represent or assist you. Before signing any agency agreement, be sure you have read and fully understand it. The agent must provide you with a copy after you sign it.
A buyer’s agent will provide a number of services for you, whether or not you have a formal arrangement with them. These services can include—but are not limited to—assisting you in: • locating an appropriate property; • securing finance; • researching the property; and • advocating on your behalf. The agent can also assist you in drafting and submitting a formal offer to the seller if you have signed a written agency agreement.
There are a variety of ways to pay a buyer’s agent. You can pay the broker with your own money, for instance. Or, the agent may initially request payment from the seller or listing agent, but insist that you foot the bill if the seller or selling agency declines. If you’re working with a buyer’s agent, it’s important to have a written agreement outlining your remuneration arrangement with them before making an offer on a property.
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Dual Agency
You can have the same agent or company represent both you and the seller. If a home you’re interested in happens to be listed by the same company as your buyer’s agent, a “dual agency relationship” will likely develop. If you and the seller have not already agreed to a dual agency relationship in your buyer agency agreement (whether written or oral), your buyer’s agent will ask you to sign a new agreement or document authorizing your buyer’s agent to act as agent for both you and the seller. A dual agent may find it challenging to effectively represent the needs of both the buyer and the seller. However, a dual agent has an ethical obligation to handle both buyers and sellers with respect. Despite the fact that the dual agent owes the same duty to both parties, the parties can agree to prevent the dual agent from disclosing specific confidential information about any party. In “designated dual agency,” one agent in the company acts on behalf of the seller, while another agent acts on behalf of the buyer. When available, this choice may grant each “designated agent” greater authority to act on behalf of the other party. If you go with the “dual agency” route, keep in mind that the agent’s loyalty will be split between you and the other party, so it’s crucial that you know exactly what to expect from the agent in terms of their role in the transaction and the nature of your relationship with them. Putting the agreement in writing as soon as possible is the best way to ensure that everyone is on the same page.
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Seller’s Agent Working With A Buyer
You can still engage with the company and its agents even if the real estate agent or firm you contacted does not offer buyer agency. They will, however, be operating as the seller’s agent (or “subagent”). The agent can still act as a buyer’s agent in many respects, including helping you locate and acquire property. The agent has a duty of candor to disclose any “material facts” (such a property’s poor roof) to you. But keep in mind that the agent works for the seller, not you, and must prioritize getting the greatest deal for the seller. In addition, a seller’s agent has an obligation to disclose to the seller any information (including personal, financial, or sensitive data) about you that may facilitate the sale of the seller’s property. Before you say anything that could be useful to the seller, the agent must disclose in writing whether or not they are acting as the seller’s agent. You should not reveal any sensitive information to an agent unless you have verified that they are not working on behalf of the seller. The commission for the seller’s agent comes from the seller.
Reach out to Lori Eastridge of NC High Country Real Estate powered by Realty One Group Select today! She is more than happy to review this information with you and help you navigate the process of buying or selling a home or land. She covers Boone, Banner Elk, Blowing Rock, Jefferson, West Jefferson, Sparta and all surrounding areas.
