Does an agent need buyer agreements with every buyer at an open house?

QUESTION: The policy at my firm is that we do not engage in dual agency. One new NAR policy requires that agents enter into written buyer agreements prior to showing a house. If my agents are hosting an open house, will they have to enter into a buyer agreement to show the house? If so, my firm’s policy related to dual agency prevents my agents from showing their own listing!

ANSWER: No, Question #60 of the NAR Settlement FAQs makes it clear that MLS participants who are hosting an open house will not need to have a written buyer agency agreement. The NAR policy states that when an agent is only working for the seller, such as an agent hosting an open house, there is no mandate to enter into a buyer agreement. Therefore, the agent will be able to host the open house and allow unrepresented buyers to tour the listing.

Note, even if no buyer agreement is necessary at an open house, the NC Real Estate Commission requires agents to discuss agency and have the Working with Real Estate Agents disclosure form (WWREA) signed with these prospective buyers at first substantial contact. The Commission has given clear guidance on what constitutes first substantial contact. The rule itself is set forth at 21 NCAC 58A .0104(c).

In the case of an open house, a licensed broker will have to go over agency and have the WWREA disclosure signed if the buyer acts as if an agency relationship exists and begins to disclose any personal or confidential information. In other words, if the buyer starts to discuss any details that would make their ability to negotiate weaker, or reveals any personal financial information, that constitutes substantial contact and the WWREA is required.

Release Date: 6/20/2024