BIC TIP #1133: From Showing Agreement to Making an Offer

Since the industry changes that followed the NAR settlement, brokers have a new tool in the toolbox: the showing agreement. It has been a helpful fix, but it has also created some confusion. Stephen Long clears it up with a simple rule: a showing agreement can get you through the front door, but it is not the agreement you need to make an offer as a buyer’s agent.

What the Showing Agreement Does

The showing agreement form allows a broker to create a temporary, non-exclusive agency agreement. Its purpose is to satisfy the newer requirement that a written agreement be in place before you show a buyer any property.

That is useful for the buyer who calls off a sign, wants to see one house this afternoon, and is not ready to commit to a long-term relationship. It keeps you compliant without forcing a big decision on the spot.

Showing Is Not Representing

Here is where brokers get tripped up. Showing a property and representing a buyer through an offer are two different things. Under North Carolina license law, if you are going to help a buyer make an offer, you need a written buyer agency agreement in place before the offer is made.

Stephen’s direction is clear: if you are going to represent that consumer as their buyer’s agent, convert the relationship over to the exclusive buyer agency agreement. That is the agreement that establishes you as their agent and lets you move forward with the Offer to Purchase and Contract in compliance with license law, just as it always has.

Build the Conversion Into Your Process

The cleanest approach is to treat the showing agreement as a starting point, not a destination. When a buyer gets serious about a property, that is your cue to sit down, explain the exclusive buyer agency agreement, and get it signed before you start drafting.

Waiting until the buyer is excited and ready to write tonight is not the time to discover you skipped a step. Have the conversation early, and the offer stage goes smoothly.

The Practical Takeaway

The showing agreement is a compliant way to show property before you have a full relationship. It is not a substitute for the exclusive buyer agency agreement. Before you help any buyer make an offer as their agent, make sure the exclusive agreement is reduced to writing and signed. If you are unsure which form fits your situation, check with your broker-in-charge.

This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.