In a North Carolina real estate sales transaction, it is important that you understand whether an agent/broker represents you or the other party.

NC Real Estate – First substantial contact is defined in two ways:

It’s the point at which the consumer begins to talk about real estate, acts as though an agency relationship exists, or begins to tell the agent personal information about the consumer’s real estate needs.

Ideally, agents should explain agency BEFORE the consumer reveals any personal information. It also happens when the licensee speaks or acts in a way that a reasonable person would interpret to mean that an agency relationship exists, such as a licensee saying, “Well, when we go look at houses, we can look for those features.

“If first substantial contact is via email or phone, the agent must provide the brochure to the consumer within the three days following the phone call or email exchange. The agent must still explain the brochure’s contents, which may be done via phone or email.

NC Real Estate – Prospective Buyers and First Substantial Contact

Buyers have more decisions to make, since they can work with: A buyer’s agent A seller’s agent/sub-agent (if the listing company permits it)A dual agent.

Agents should review the “Working with Real Estate Agents” pamphlet during first substantial contact with prospective buyers. It should be provided before the agent asks about the customer’s needs or wants, or asks about confidential information. The conversation should happen before the agent and prospective buyer begin to work together. If the buyer wants a buyer’s agent, a written or oral agency agreement must be entered into that also addresses whether dual agency is authorized and what form it will take. If the buyer rejects buyer agency and decides that the agent will be the seller’s sub-agent, the agent must provide written notice that discloses this status before the agent can begin showing any properties.

NC Real Estate – Prospective Sellers and First Substantial Contact

For agents with prospective sellers, the first substantial contact usually happens at the initial listing presentation. Agents should give the “Working with Real Estate Agents” brochure to consumers during the initial listing presentation. Agents must inform consumers that any shared information is not confidential unless there’s an agency agreement in place.

If the seller begins to reveal confidential information, the agent should stop the presentation immediately and present and explain the pamphlet. Usually, the seller needs to decide whether to hire the agent’s brokerage and whether to authorize dual agency.

NC Real Estate – Disclosures When Working with a Prospective Buyer

Agent disclosure responsibilities when working with buyers include: Having an express oral or written buyer agency agreement in place Providing the “Working with Real Estate Agents” brochure, explaining it to the buyer, and getting a signature when appropriate Disclosing in writing that the agent is working as a seller’s agent or sub-agent (if the buyer doesn’t choose buyer’s agency)Agents and consumers can agree orally on a buyer’s agency agreement.

NC Real Estate – Working with a Prospective Buyer as a Seller’s Sub-Agent

Agents in this situation must tell these buyers, upon first contact, that without an agency agreement, the buyers are unrepresented and shouldn’t reveal confidential information that they don’t want sellers to know. Agents must include their license number in this disclosure. If first substantial contact is via email or phone, the agent must provide the brochure to the consumer within the three days following the phone call or email exchange. The agent must still explain the brochure’s contents, which may be done via phone or email.

If you need additional information please visit the NCREC website.

Dwain Ammons, Licensed WNC Broker® Broker:

Direct: (828) 447-0036
(828) 433-9254dwain@ammonsrealestate.com

The North Carolina Real Estate Commission requires me to provide my clients with a Working With Real Estate Agent Brochure. Click on this Mandatory Brochure LINK for your copy. View the NC Fair Housing Disclosure Here

 

DISCLAIMER

All information deemed reliable but not guaranteed as listings and properties are constantly being updated.

Dwain Ammons Certifications/Memberships/Licenses:
MLS of Burke County NC
e-PRO® Certified
PSA – Pricing Strategy Advisor Certified
SFR® – Short Sale and Foreclosure Resource Certified
C2EX NAR Endorsement – Commitment to Excellence (C2EX)