In North Carolina, a buyer agency agreement is the written contract that has to be in place before your agent can submit an offer on a home for you. It sets the agent’s compensation, how long you’re working together, whether you can also work with other agents, and what it costs to walk away. Since the 2024 National Association of REALTORS® settlement ended the practice of advertising buyer-agent commissions on the MLS, the numbers in this contract are no longer a formality: they determine what you may owe out of pocket if the seller doesn’t cover your agent’s fee.
When You Have to Sign One
North Carolina Real Estate Commission Rule 58A .0104 sets the timing. If the agreement restricts your right to work with other agents or locks you in for any period of time, it must be written and signed from the moment it takes effect. For less restrictive arrangements, the written agreement must be signed no later than the time you or the agent makes an offer on a property.1Legal Information Institute. 21 North Carolina Admin Code 58A 0104 – Agency Agreements and Disclosure
An agent cannot keep representing you without a signed written agreement once the rule requires one. Showing you homes and talking strategy informally is fine, but the paperwork has to be done before an offer goes in.
The “Working With Real Estate Agents” Disclosure Is Not the Contract
At what the Commission calls “first substantial contact,” before you share confidential information or get into a serious conversation about your search, the agent must review the “Working With Real Estate Agents” disclosure with you and give you a signed copy.2North Carolina Real Estate Commission. Working With Real Estate Agents Disclosure It explains the types of agency relationships available in the state. It’s a consumer disclosure, not a contract. Signing it doesn’t commit you to anything, and it does not stand in for the buyer agency agreement itself.3North Carolina Real Estate Commission. Working With Real Estate Agents Brochure
What Must Be in the Agreement
To be enforceable in North Carolina, a written buyer agency agreement has to include several specific elements. Check for each of them before you sign:
- A definite start and end date. Open-ended agreements are not permitted.
- The broker’s license number and the brokerage firm holding the license.
- A clear, conspicuous fair housing provision stating the broker will conduct all activities without regard to race, color, religion, sex, national origin, disability, or familial status.
- Any early termination penalty, set apart clearly from the rest of the document so it is not buried in the fine print.
- How the agent will be paid, including whether you might owe money directly.
- A conspicuous disclosure that the commission rate is not set by law and is fully negotiable.4National Association of REALTORS®. NAR Settlement FAQs
If any required element is missing, the agreement may not hold up. Agents know this, so you’ll rarely see a blank where a required term should be. Read every one of these clauses anyway.
Exclusive, Non-Exclusive, and Dual Agency
The type of agreement you sign controls how much flexibility you keep and what you owe.
Exclusive Agreements
An exclusive buyer agency agreement gives one agent or brokerage the sole right to represent you. If you buy any property during the contract period, that agent is entitled to compensation even if you found the home yourself or through someone else. Because the agreement restricts your right to work with other agents, it must be in writing and signed from the moment it takes effect.1Legal Information Institute. 21 North Carolina Admin Code 58A 0104 – Agency Agreements and Disclosure The trade-off is real: a dedicated agent in exchange for giving up the ability to shop around.
Non-Exclusive Agreements
A non-exclusive agreement lets you work with more than one agent at the same time. You owe compensation only to the agent who actually helped you find and close on the property. It still has to be in writing before an offer is made. Agents working under this arrangement often invest less time in your search, because their pay depends on being the one who connects you to the deal.
Dual Agency and Designated Dual Agency
Dual agency happens when one brokerage firm represents both you and the seller in the same transaction. It’s legal in North Carolina, but only with written consent from both sides, obtained before the dual agency situation arises.5North Carolina Real Estate Commission. Section 2 – Dual Agency A dual agent cannot advocate for either party and must stay neutral. They can’t push the seller to accept your lower offer, and they can’t advise you to walk away from a bad deal.
Designated dual agency assigns separate agents within the same firm to the buyer and seller individually. Designated agents can advocate for their respective clients more freely than a standard dual agent, though they remain under the same firm.5North Carolina Real Estate Commission. Section 2 – Dual Agency Both parties must agree to it in writing for it to be valid.6North Carolina Real Estate Commission. Dual Agency – Authorization, Disclosure and Safeguarding Confidential Information Think carefully about what you’re giving up. In competitive negotiations, an agent who can’t fully take your side is a real disadvantage.
How Your Agent Gets Paid Now
The 2024 NAR settlement changed the compensation picture. Buyer-agent compensation can no longer appear on the MLS for NAR-affiliated agents and the MLSs that follow NAR rules.4National Association of REALTORS®. NAR Settlement FAQs Compensation can still come from the seller as a negotiated term of your purchase offer, but nothing is automatic.
Your agreement will state a compensation amount, usually a percentage of the purchase price or a flat fee. Percentage rates have historically ranged from 2% to 3%, though these rates are negotiable. Your agreement may say the agent will first seek compensation from the seller’s side. If the seller offers nothing, or offers less than the amount in your agreement, you can be responsible for the difference.
Ask your agent to walk you through specific scenarios before you sign. What if the seller offers 2% and your agreement says 3%? What if the seller offers zero? Get concrete answers.
Some agreements also include upfront retainer fees, administrative charges, or a fee if you back out of a transaction after signing a purchase contract. These clauses are enforceable in North Carolina when clearly stated. Arbitration awards in disputes between brokers over buyer-agent compensation are now capped at the amount specified in the buyer representation agreement, so the number you agree to is effectively the ceiling.7National Association of REALTORS®. 2026 Summary of Key Professional Standards Changes
One important protection: your agent is required to show you any listing that meets your criteria, even if the seller offers little or no compensation for the buyer’s agent. Steering you away from suitable homes because the commission is low violates professional standards.7National Association of REALTORS®. 2026 Summary of Key Professional Standards Changes
Term, Termination, and the Protection Period
Every agreement must run for a definite time period. The Commission does not dictate the length, but it has to have a clear end date.1Legal Information Institute. 21 North Carolina Admin Code 58A 0104 – Agency Agreements and Disclosure In practice, agreements typically last anywhere from 30 days to six months.8North Carolina Real Estate Commission. Buyer Agency Agreements If you haven’t bought a home by the expiration date, the agreement ends unless both sides agree in writing to extend it.
Termination clauses vary. Some let you walk away with written notice and no penalty. Others impose a fee, and that fee must be set out clearly and conspicuously.1Legal Information Institute. 21 North Carolina Admin Code 58A 0104 – Agency Agreements and Disclosure Read that clause before you sign, not after you want out.
The clause most likely to catch buyers off guard is the protection period, sometimes called a tail period. After the agreement expires or is terminated, the agent may still be entitled to a commission if you buy a property they introduced you to during the contract. Protection periods commonly run 30 to 90 days. The agent typically must give you a written list of the properties they showed you or identified. Before signing, check whether a protection period exists, how long it runs, and what triggers it.
If Something Goes Wrong
Most buyer agency agreements include a dispute resolution clause. Mediation brings in a neutral third party to help you and the agent negotiate a resolution; neither side is forced to accept an outcome, but many agreements require you to try mediation before escalating. The North Carolina Association of REALTORS® offers mediation services, and local boards affiliated with NAR are required to make mediation available to their members.9NC REALTORS®. Board’s Obligation to Offer Mediation
If mediation fails, arbitration may follow, with a binding decision from an independent arbitrator. Any arbitration award involving buyer-agent compensation is capped at the amount specified in your buyer representation agreement.7National Association of REALTORS®. 2026 Summary of Key Professional Standards Changes
For serious issues like fraud, misrepresentation, or ethical violations, you can file a complaint directly with the North Carolina Real Estate Commission. The Commission investigates complaints and can impose fines, license suspension, or revocation. It cannot award you money, but a Commission finding can support a separate civil lawsuit for breach of contract or misrepresentation if you’ve suffered financial harm.