Is it necessary for Dual Agency to be documented in writing?

In North Carolina, dual agency occurs when a real estate agent represents both the buyer and the seller in a transaction. It is crucial to document dual agency in writing to ensure that all parties are fully aware of the agent's role and the implications of that role. This documentation helps to establish clarity regarding the duties and responsibilities of the agent, and it ensures compliance with legal and ethical obligations.

Having a written agreement before an offer is made serves several important purposes. It provides transparency to both the buyer and seller, which is essential in maintaining trust and protecting each party's interests. Additionally, it helps to clarify how the agent will manage potential conflicts of interest that arise when representing both sides in a real estate transaction.

While some may think that verbal agreements could suffice, particularly in less formal dealings, written documentation is typically a requirement for protecting both the clients and the agent involved. This practice also aligns with regulatory standards designed to safeguard all parties in a transaction, reinforcing the need for diligence and clarity in real estate dealings. Writing down the dual agency agreement also may be a specific requirement under North Carolina’s real estate laws, thus supporting the necessity for this documentation before any offers are presented.