BIC TIP #1195: Oral Buyer Agency Is Allowed in NC, Unless You Are a REALTOR

Here is one that trips up plenty of brokers. Under North Carolina Real Estate Commission rules, oral buyer agency is still recognized. But Stephen Long, The Notorious BIC, reminds you that if you are a REALTOR member, that option is off the table. Two sets of standards apply, and the stricter one wins for REALTORS.

What the Commission Allows

According to Stephen, the NC REC does still recognize oral buyer agency in North Carolina. Under the Commission’s rules, a buyer agency relationship can begin orally, with the requirement that it be reduced to writing at a later point in the process.

That is the license law side of the equation, and it applies to every licensed broker in the state.

What REALTORS Must Do

REALTOR members are held to an additional standard through the association. If you are a REALTOR, you must have a written agreement in place before providing any brokerage services or showing any homes to a buyer.

In other words, oral agency is not going to be an option for you, even though the Commission would technically recognize it. Being a REALTOR means opting into requirements that go beyond the license law minimum.

Even a One-Page Agreement Counts

The good news is that the written agreement does not have to be complicated. Stephen notes that it can be as simple as the one-page showing agreement. What matters is that something is in writing and signed before you start working with the buyer.

Your firm may also have its own policy requiring written agreements regardless of membership, so check with your broker-in-charge to be sure you are following both the rules and your office procedures.

The Practical Takeaway

Know which standards apply to you. The Commission recognizes oral buyer agency, but REALTOR members need a written agreement before providing services. Keep a showing agreement or buyer agency agreement ready to go, get it signed before that first showing, and you will be compliant on every front.