Real Estate Disclosure 101

Real Estate Disclosure 101

“The NC WWREA”

When I was going through pre licensing classes in order to obtain my NC Real Estate License one of the first documents we discussed was the Working With Real Estate Agents Disclosure (WWREA) and how to explain it.  Those of us in the class were scared to death by our instructor when it came to this disclosure and its importance.  The failure to review the WWREA with a potential client (buyer or seller) could result in you having your license revoked or suspended.  The NC Real Estate Commission requires that a licensee review the document at the first substantial contact of any potential client.  The NCREC’s main responsibility is to protect the consumer (not the agent) and this document is STEP 1 of that protection.  I have heard many agents present the WWREA well and have heard some butcher it.  

When I first started my career in Real Estate in 2012, the WWREA was the same document for buyers and sellers, regardless of what they were potentially looking to do.  In 2021, the NCREC changed the document and now we have 2 documents, each one specific to either a real estate buyer or a seller.  The purpose of the WWREA is to explain to a potential buyer or seller who the agents represent that they are interacting with in a transaction.  Buyers and sellers need to be made aware upfront who they are talking to and whose interests that agent is representing.  Let's get into those categories of the Disclosure……

Buyer Agency - the agent (and agent’s firm) that is loyal to the buyer and would represent the buyer’s interests throughout the transaction.  The buyer agent's job is to protect the buyer and their interests at all times.

Seller’s Agency - the agent (and agent’s firm) hired by the seller and represents the seller and their interests throughout the transaction.  They are responsible for marketing the home in order to get it sold.

Now for the part that I hear most agents have trouble with explaining on an elementary level.  As a former classroom teacher, I like to think that I can get the point across fairly easily…..

DUAL AGENCY!!!!!

When you hire an agent to represent you (buyer or seller), you actually hire the firm that the agent works for (Ex: Keller Williams, ReMax, Real Broker,...)  Dual Agency in its simplest form is something that occurs when both the buyer and seller are represented by the same Brokerage Firm.  That can occur if the buyer and seller have hired the same agent or 2 different agents…..it doesn’t matter.  What matters is if the Brokerage Firm is the same.

Designated Dual Agency - is a specific situation when you have Dual Agency but the buyer and seller are represented by different individual agents.   

**Since most buyer agents are compensated by the Listing Agent in a transaction, buyers often choose to have an agent represent them and thus when Dual Agency does occur, it is most often Designated Dual Agency. ** 

Unrepresented Buyer or Seller -  is very much exactly what it says.  If a Seller is not represented by an agent, then they are a FSBO (For Sale By Owner) and the only potential agent that will be involved in the transaction is a Buyer’s Agent.

If a Buyer goes unrepresented and buys a home without representation, then the only potential agent in the transaction would be the Sellers Agent.  This most often occurs when buyers buy new construction and work with the onsite agent only which represents the seller (builder).

Real estate agents are individuals in the Customer Service industry that just happen to facilitate the buying and selling of real estate.  We try to conduct ourselves as ethically as possible and try to always do the right thing for our clients.  The Kima Real Estate Group is here to help you with all of your real estate needs in the Triangle area and beyond.  Give us a call today and let us know how we can help you.   (919-300-5421)