In North Carolina, a Buyer Agency Agreement is particularly important due to specific state regulations and the structure of real estate transactions. Here are key reasons why it’s needed:
- Required by Law for Full Representation: In North Carolina, state law mandates that for an agent to fully represent a buyer’s interests, there must be a written buyer agency agreement. Without this agreement, the agent’s ability to provide specific services is limited, and they may only act as a facilitator rather than a true advocate for the buyer.
- Defines the Agency Relationship: The agreement formalizes the buyer-agent relationship, outlining the fiduciary duties owed to the buyer. These include loyalty, confidentiality, obedience, full disclosure, and accountability. Without this agreement, the agent cannot legally provide these duties to the buyer.
- Prevents Dual Agency Conflicts: North Carolina law allows for dual agency (representing both buyer and seller) under certain circumstances, but it requires written consent. The buyer agency agreement ensures that the buyer’s interests are fully protected and clarifies whether or not the buyer agrees to dual agency, which could create potential conflicts of interest.
- Compensation Clarity: In North Carolina, real estate agents typically earn commissions based on the sale of the property, and the agreement specifies who is responsible for paying the commission. The buyer agency agreement makes it clear whether the buyer will pay part of the commission or if the seller’s commission covers the buyer’s agent. This prevents misunderstandings later in the transaction.
- Access to Full Services: Without a buyer agency agreement, the agent may only provide limited services. In North Carolina, real estate agents are allowed to work with buyers in two ways: as a client or as a customer. Only clients (those with a signed agreement) receive the full benefits of representation, including advice on pricing and negotiations. Customers, on the other hand, get very limited assistance, mainly transactional.
- Legal Protections: North Carolina requires real estate agents to disclose their role and whom they represent at the first substantial contact. A buyer agency agreement ensures compliance with the North Carolina Real Estate Commission (NCREC) regulations and provides legal protections for both the buyer and agent throughout the transaction.
In summary, a Buyer Agency Agreement in North Carolina is necessary to fully protect the buyer’s interests, ensure legal compliance, and provide a clear framework for how the agent will be compensated and represent the buyer in a real estate transaction.
Below is my buyer agency agreement. A note here is that commission and what you pay for my professional services are negotiable, at all times.
