One of the very first things I hand buyers and sellers in North Carolina isn’t a contract. It’s a disclosure.
I usually explain it like this…
“It’s basically the real estate version of a HIPAA disclosure.”
That almost always gets a laugh, but it also makes people relax because suddenly this intimidating legal form doesn’t feel quite so intimidating anymore.
The document is called the Working With Real Estate Agents Disclosure in North Carolina. If you’re buying or selling in South Carolina, you’ll receive a very similar document called the Disclosure of Brokerage Relationships.
The names are different. The purpose is the same.
Before anyone starts giving you advice, negotiating on your behalf, or representing your interests, the state wants you to understand the different ways a real estate agent can legally work with you.
That might sound like legal housekeeping, but it actually has a direct impact on how you’re represented throughout the transaction.
Why Does This Disclosure Matter?
Most people sign this form without really understanding what it means.
I don’t like that.
Buying or selling a home is one of the largest financial decisions most people will ever make. You deserve to understand who represents you, who doesn’t, and what responsibilities come with that relationship before you move forward.
Think of it this way. You’re not just choosing a real estate agent. You’re choosing the level of representation you’ll receive.
There’s a big difference.
Looking for the right real estate agent to represent you? Here are the top questions you should ask when interviewing agents as a buyer or seller.
Exclusive Buyer or Seller Agency
This is the relationship most people are looking for, even if they don’t know what it’s called.
If you’re my client, I represent you exclusively. That doesn’t simply mean we’re working together. It means I owe you certain fiduciary duties.
The easiest way I teach clients to remember those responsibilities is with the acronym OLDCAR.
- Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accountability
- Reasonable skill, care, and diligence
Those aren’t marketing promises, they’re professional obligations.
When people ask why representation matters, this is why. The level of service and care owed to you, the client, varies and your level of protection and confidentiality matters depending on which type of relationship you enter into with an agent.
Dual Agency
The second relationship is called dual agency. This means one agent represents both the buyer and the seller in the same transaction.
This is never automatic.
Both parties must knowingly agree to it in writing. One of the biggest distinctions is that I cannot advocate or negotiate exclusively for either side the way I would in an exclusive agency relationship. HOWEVER, this does not change how I professionally do business with you whether it’s in exclusive agency or dual.
My job is to provide you with every bit of information so you can make a well-informed decision. If the relationship seems amenable between the buyer and seller, I provide both sides with as much information as I can with the full transparency, knowledge, and permission of both sides. If we need to negotiate, sometimes a conversation to sort things out is the best way so both sides are happy with the outcome.
Each transaction in dual agency is different. This isn’t the most common agency relationship, but it does occur when the stars…and homes…align.
Some clients are comfortable with dual agency. Others are not. Neither answer is right or wrong. The important part is understanding what you’re agreeing to before making that decision.
What’s it really like to work with me? Read these posts next:
- Why Sell Your Home with Ashley Horton Real Estate
- Why Work with Ashley Horton When Buying a Home in Charlotte, NC
Designated Dual Agency
This is the one that often causes the most confusion because people hear the words “dual agency” and assume they’re the same thing. They’re not.
With designated dual agency, the brokerage represents both sides of the transaction, but each client has their own individual agent.
For example: My firm is the overarching entity. I am one agent that represents one side of the transaction and a different agent in my firm represents the other side.
We don’t share files, they don’t get additional access to any of your information, and the same applies the other way around. It simply means that the other agent and I work for the same firm, but both the buyer and seller still have exclusive representation while working with their respective agents.
Here’s the most likely scenario where this might happen. Let’s say you’re my buyer and you find a house that you love. When we look into it, we find out one of my colleagues at my firm is the listing agent. Designated dual agency allows me to show you the home and make an offer on it on your behalf if you agree to work under designated dual agency.
It’s as simple as that.
What Happens If You’re Unrepresented?
This is probably the section people think about the least, but it’s often the most important.
In North Carolina and South Carolina, there are situations where someone may choose not to have representation, such as certain For Sale By Owner transactions or some new construction purchases.
Many people assume the agent they’re talking to can simply “help them through it,” give them advice, tell them who to call for help, or send them the paperwork to fill out.
That’s not how it works.
If an agent represents the other side of the transaction, they don’t represent you.
That means they cannot advocate for your interests, negotiate on your behalf, or advise you the way they would if you were their client. They cannot fill out paperwork for you, they cannot share contract documents with you for you to complete, and they cannot advocate on your behalf.
You, as an unrepresented buyer or seller, are entirely responsible for hiring your own attorney to create and draft legal documents. You’re responsible for managing showings, coordinating your own closing with an attorney, advertising the property, navigating conversations with interested parties, and everything else that comes with the transaction.
If that sounds overwhelming, that’s because it can be.
For a seasoned investor, builder, or someone who has gone through the process many times before, this may be exactly what they want. For most buyers and sellers, it’s far more responsibility than they expected when they first considered going unrepresented.
And what most people don’t think about…remember the acronym OLDCAR for fiduciary duties? As an unrepresented buyer or seller, you’d get none of that.
This isn’t about whether someone is nice or helpful; it’s about who they legally represent. Understanding that distinction before you begin can prevent a lot of confusion later.
Why I Slow Down Here
This disclosure usually takes just a few minutes to review, but I never rush through it. I’ve found that once people understand how agency relationships actually work, they feel much more confident moving forward.
They’re no longer signing paperwork because someone slid it across the table. They’re making an informed decision about how they want to be represented.
That’s exactly how it should be.
Final Thoughts
The Working With Real Estate Agents Disclosure isn’t just another form to sign.
It’s the foundation of your relationship with your real estate professional.
Whether you’re buying your first home, selling a luxury property, relocating across the country, or simply exploring your options, understanding who represents you and what that means is one of the most important conversations you’ll have.
If you’re buying or selling in North Carolina or South Carolina and you’d like someone to walk through these relationships with you in plain English, I’d be happy to help.
Ashley Horton | 704.975.5418 | ashley.horton@charlotteluxehomes.com
Global Real Estate Advisor
Licensed in North Carolina & South Carolina
Premier Sotheby’s International Realty
It Starts with a Conversation!
Buying, selling, or relocating to Charlotte? Get in touch with me here to get started!
