BIC TIP #1168: Get Hired If You Want to Get Paid
Hopefully you like getting paid. Most brokers do. Stephen Long has a simple reminder for anyone who expects a commission check: you have to represent someone in the transaction. Represent the buyer, represent the seller, or represent both. The only exception is a referral fee. And here is the kicker: North Carolina does not have transactional brokerage.
No Representation, No Commission
If you are going to get paid a commission in North Carolina, there has to be an agency relationship. You are either the buyer’s agent, the seller’s agent, or a dual agent representing both. Helping out informally, without an agency agreement, does not put you in a position to be compensated.
The one exception Stephen mentions is a referral fee. Outside of that, if you expect to be compensated, you need to be representing someone.
The Friend Who Already Found a Buyer
Stephen hears this question a lot: “My friend is selling their house. They already found a buyer. They just want me to look over the contract.” That is fine, and it is nice of you to help. But you cannot get paid for it unless you actually represent someone in that transaction.
If you are going to take on that role, make it official. Have the agency conversation, get the agreement in place, and understand that with representation comes all the duties that go with it. Reviewing a contract as a favor is not the same as being the agent.
North Carolina Is Not Like Some Other States
Brokers who move here from elsewhere, or who chat with agents in other markets, sometimes assume they can act as a neutral facilitator who gets paid without representing anyone. Some states allow transactional brokerage. North Carolina does not offer it.
So if a deal is structured around you being “just the paperwork person” while collecting a fee, stop and talk to your broker-in-charge before you go any further.
The Practical Takeaway
If you want to get paid, get yourself an agency agreement. Decide who you represent, put it in writing, and then do the work that representation requires. No agency, no commission, with the referral fee being the lone exception. Simple rule, fewer headaches, bigger smiles at closing.
