Navigating the real estate process in North Carolina involves more than just choosing the right home or preparing a property for sale—it also requires a solid understanding of agency relationships. Whether relocating to the state or moving within it, understanding how real estate agents operate under North Carolina law can help consumers make informed decisions.

What Is an Agency Relationship?

In real estate, an agency relationship is a legal agreement that defines the duties and responsibilities between a real estate professional and their client. North Carolina follows a fiduciary model, which means agents are obligated to act in the best interest of their clients—offering advice, protecting confidential information, and guiding clients through each step of the transaction.

Unlike more transactional states like Florida or Texas, where agents may act as neutral facilitators with fewer fiduciary responsibilities, North Carolina emphasizes a relationship-based approach. This commitment is evident from the moment a consumer meets an agent, who must present the Working With Real Estate Agents brochure at first substantial contact.

Types of Agency Relationships in North Carolina

Understanding the different types of agency roles can help buyers and sellers set clear expectations.

1. Seller’s Agent

A seller’s agent represents the property owner in listing, marketing, and negotiating offers. Their primary role is to secure the highest and best terms for the seller while managing the transaction efficiently.

2. Buyer’s Agent

A buyer’s agent advocates for the purchaser, helping to identify potential properties, analyze market data, and negotiate favorable terms. This agent ensures the buyer is informed and protected throughout the homebuying journey.

3. Dual Agency

Dual agency occurs when one agent—or two agents within the same brokerage—represents both the buyer and the seller in the same transaction. In North Carolina, dual agency is legal but requires written consent from both parties. Under this arrangement, the agent must remain neutral and cannot offer negotiation advice to either side.

Designated Dual Agency

A subset of dual agency, this occurs when two agents from the same brokerage represent opposing parties. It allows both buyer and seller to have individual advocates while remaining within the same firm. However, clients must be informed and agree to this arrangement in writing before proceeding.

What Happens Without Representation?

Consumers may also choose to remain unrepresented, either by listing their home for sale by owner or by purchasing without an agent. In these cases, it’s important to remember that the agent involved—typically the listing agent—owes fiduciary duties to the other party. Sharing sensitive information with that agent can affect negotiating power.

Why Agency Relationships Matter

Understanding these relationships helps ensure the right level of representation in a transaction. Here are three core reasons why having an agent is beneficial:

• Protection of Interests: Agents work to safeguard their clients’ financial and personal interests, ensuring all decisions are made with full awareness of the potential outcomes.
  
• Informed Decision-Making: With a firm grasp of legal documents and real estate processes, agents help guide clients through complex paperwork and contractual obligations.
  
• Professional Standards: Real estate professionals in North Carolina adhere to strict ethical codes, helping ensure fair, transparent, and compliant transactions.

Final Thoughts

Agency relationships form the foundation of trust in North Carolina real estate transactions. Whether buying or selling, understanding these roles is key to making confident, well-informed decisions.

Looking for guidance?

Contact The Coley Group—the Triangle’s number one Compass team. With deep market expertise and a personalized approach, we’re here to help you navigate every step of the buying or selling journey.

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