Are all in-house transactions classified as Dual Agency?

For transactions in which an agent represents both the buyer and seller within the same brokerage, it is essential to understand the nuances of agency relationships. The reason the correct choice states that not all in-house transactions are classified as dual agency is due to specific scenarios that can occur.

In North Carolina, dual agency arises when an agent or brokerage represents both the buyer and the seller in a transaction without appointing different agents to represent each party. However, there are exceptions, such as when the seller employs a sub-agency structure or when a buyer is unrepresented. In these cases, the existence of a sub-agency means that the buyer is represented by an agent who is not the listing agent for the seller, thus eliminating the dual agency connection. Similarly, if a buyer is unrepresented, the listing agent is only representing the seller, and thus, it does not constitute dual agency.

Overall, this understanding emphasizes the importance of clarifying representation and agency relationships within real estate transactions, showcasing that not all in-house dealings automatically imply dual agency. Hence, the noted exceptions greatly influence the classification of the agency relationship.