North Carolina law requires each real estate agent to form one of the following agency relationships and to disclose the type of relationship writing to all parties.
- Seller agency – owner of real estate agrees to engage services of a brokerage firm in order to sell the piece of real estate. The seller is the principal and the broker (brokerage firm) is the owner’s agent.
- Buyer agency – prospective buyer seeks the assistance of a real estate broker (or firm) to locate a home/property. The buyer is the principal and the broker is the buyers agent.
- Dual Agency – brokerage firm is representing both the seller and the buyer in any one transaction. Dual agency requires full disclosure to both parties involved. Both the seller and the buyer are principals and the broker is the agent of both.
- Designated agency—form of dual agency where one agent in a firm is ‘designated’ to represent the interests of the seller and another agent is ‘designated’ to represent the interest of the buyer. Designated agency can be requested by either side to avoid any conflict of interest.
Posted on January 25, 2016 at 9:53 am by Michael Davenport