Form 160 - Working With Real Estate Agents (Page 2 of 4) in pdf

If you choose the “dual agency” option, remember that since a dual agent's loyalty is divided between

• •

parties with competing interests, it is especially important that you have a clear understanding of

what your

• •

relationship is with the dual agent and

what the agent will be doing for you in the transaction.

BUYERS

When buying real estate, you may have several choices as to how you want a real estate firm and its

agents to work with you. For example, you may want them to represent only you (as a buyer's agent). You may

be willing for them to represent both you and the seller at the same time (as a dual agent). Or you may agree to

let them represent only the seller (seller's agent or subagent). Some agents will offer you a choice of these

services. Others may not.

Buyer's Agent

• •

Duties to Buyer: If the real estate firm and its agents represent you, they must

promote your best

• •

interests

be loyal to you

follow your lawful instructions

provide you with all material facts that could

• •

influence your decisions

use reasonable skill, care and diligence, and

account for all monies they handle for

you. Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer's agent, they

may not give any confidential information about you to sellers or their agents without your permission so long

as they represent you. But until you make this agreement with your buyer's agent, you should avoid telling

the agent anything you would not want a seller to know.

Unwritten Agreements: To make sure that you and the real estate firm have a clear understanding of

what your relationship will be and what the firm will do for you, you may want to have a written agreement.

However, some firms may be willing to represent and assist you for a time as a buyer's agent without a written

agreement. But if you decide to make an offer to purchase a particular property, the agent must obtain a written

agency agreement. If you do not sign it, the agent can no longer represent and assist you and is no longer

required to keep information about you confidential. Furthermore, if you later purchase the property through an

agent with another firm, the agent who first showed you the property may seek compensation from the other

firm.

Be sure to read and understand any agency agreement before you sign it.

Services and Compensation: Whether you have a written or unwritten agreement, a buyer's agent will

• •

perform a number of services for you. These may include helping you

find a suitable property

arrange

• •

financing

learn more about the property and

other-wise promote your best interests. If you have a written

agency agreement, the agent can also help you prepare and submit a written offer to the seller.

A buyer's agent can be compensated in different ways. For example, you can pay the agent out of your

own pocket. Or the agent may seek compensation from the seller or listing agent first, but require you to pay if

the listing agent refuses. Whatever the case, be sure your compensation arrangement with your buyer's agent is

spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully

read and understand the compensation provision.

Dual Agent

You may permit an agent or firm to represent you a n d the seller at the same time. This “dual agency

relationship” is most likely to happen if you become interested in a property listed with your buyer's agent or

the agent's firm. If this occurs and you have not already agreed to a dual agency relationship in your (written or

oral) buyer agency agreement, your buyer's agent will ask you to sign a separate agreement or document

permitting him or her to act as agent for both you and the seller. It may be difficult for a dual agent to advance

the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and

equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from

divulging certain confidential information about them to the other party.

Page 2 of 4

FORM 160

NC REC 1/1/2009

Form 160 - Working With Real Estate Agents Page 2

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