Before a North Carolina agent can work for you, you’ll see two kinds of paperwork: a disclosure explaining how agency works, and an agency agreement that actually hires the agent. They’re easy to mix up, and they’re not the same thing. Here’s what each one is, what’s inside a buyer or listing agreement, and what to look at before you sign.
Step 1: The Working With Real Estate Agents disclosure
At the first substantial contact, North Carolina agents give you the NC Real Estate Commission’s Working With Real Estate Agents disclosure. It explains the different ways an agent can work with you: representing the seller, representing the buyer, or dual agency. Signing it only confirms you received it. It doesn’t hire the agent or commit you to anything. We explain it in detail in what the WWREA form is and why signing it does not hire an agent.
Step 2: The agency agreement
The agency agreement is the contract that creates the relationship. It’s a binding agreement, so read it like one. Buyers sign a buyer agency agreement. Sellers sign a listing agreement. Under current practice, buyers generally sign a written agreement with their agent before touring homes together.
What’s in a buyer agency agreement
- Exclusive or non-exclusive: whether you’re working only with this agent, or may work with others.
- Term: the start and end date. You can ask for a shorter term, especially at the start.
- Compensation: how much the buyer’s agent is paid and how. Compensation is negotiable. The seller may agree to pay some or all of it, but the agreement spells out what happens if they don’t.
- Protection period: a window after the agreement ends during which the agent may still be owed compensation if you buy a home they showed you.
- Dual agency consent: whether you agree to dual agency or designated dual agency if you want a home listed by the same firm.
What’s in a listing agreement
- Term and list price
- Compensation: what you’ll pay your listing firm, and whether you’ll offer anything toward a buyer’s agent’s compensation. Both are negotiable.
- Marketing and showing terms
- Dual agency consent for buyers who come through the same firm
Understanding dual agency before you sign
Both agreements ask whether you’ll allow dual agency, meaning the same firm (or even the same agent) working with both the buyer and the seller. It’s worth understanding before you check a box. Read what designated dual agency means in North Carolina and how single agency works.
Before you sign: a quick checklist
- Read the whole agreement, and ask your agent to walk you through anything unclear.
- Check the term. Is it reasonable for your situation?
- Understand the compensation terms, including what happens if the other side won’t pay.
- Know how to end the agreement if things aren’t working.
- Decide how you feel about dual agency before you’re in the middle of a deal.
- Keep a signed copy.
Frequently asked questions
Is the Working With Real Estate Agents form a contract?
No. It’s a disclosure that explains agency relationships. The agency agreement is the contract.
Can I negotiate a buyer agency agreement?
Yes. The term, compensation and other terms are all negotiable. A good agent will explain each part and work with you on it.
What happens if I want to end my agency agreement?
Look at the termination terms in your agreement and talk to your agent or their broker-in-charge. Keep in mind any protection period that may still apply.
Do I need a buyer’s agent to buy a home?
It isn’t required, but a buyer’s agent represents your interests in negotiations, deadlines and paperwork. In North Carolina’s contract process, that help can matter a lot.
This article is general information, not legal advice. For questions about a specific agreement, talk to your agent or a real estate attorney.
Ready to talk through your options? Talk to a Mantle Realty agent. We’ll explain every document before you sign it.
