Can a builder require a represented buyer to sign a Working with Real Estate Agents Disclosure form?
QUESTION: A builder in my area sells their own houses and has an employee who works as a site agent. This site agent is licensed by the North Carolina Real Estate Commission and is also a REALTOR®. My buyers, with whom I have an agency agreement, met directly with the site agent without my knowledge, but they did make sure the site agent knew that I was representing them. Even though the site agent knew I was involved, they spoke to my clients, and my clients eventually signed a purchase contract. In the contract, I am identified and compensated as the buyers’ representative. The site agent also required that my buyers sign a Working with Real Estate Agents Disclosure form with the “Unrepresented Buyer (Seller subagent)” box checked. Should the site agent have required my buyers to sign a WWREA disclosure that states that they are unrepresented? Did the site agent violate the Code of Ethics by talking to my buyers?
ANSWER: We do not believe that the site agent did anything wrong here by requiring that the WWREA disclosure form be signed by your buyers. As to the Code of Ethics, there is not enough information to conclude there was a violation.
In this situation, and in simple terms, a real estate broker is defined as any person or firm who lists, sells, buys, or negotiates real estate for someone else in exchange for compensation. A full definition can be found in N.C.G.S. § 93A-2(a). A site agent working as an employee for a builder is not working for someone else as an agent. They are an employee, which means they are not independent from the builder. They are essentially an extension of the builder themselves. This is why W-2 employees of builders selling their own property are exempt from being licensed at all (so long as they make proper disclosure). See N.C.G.S. § 93A-2(c).
If licensed, a site agent who is an employee for a builder may decide to require the WWREA, even if the site agent could otherwise qualify as exempt as an employee. Providing a WWREA is not only good for the site agent, but in your case, the WWREA warned your buyers as follows: “The agent who gave you this form may assist you in your purchase, but will not be representing you and has no loyalty to you. The agent will represent the seller. Do not share any confidential information with this agent.” This means that even though you were not there, your clients were warned of the risks in talking to the site agent.
As to the Code of Ethics, Article 16 states that “REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients.” Article 3 of the Code states that “REALTORS® shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker.”
The site agent clearly had a primary duty to the builder. We do not know the full conversation that occurred between the site agent and the buyers, and the answer as to whether there was a violation of the Code here would certainly vary widely depending on the nature and scope of this conversation. As such, we cannot conclude whether the site agent violated the Code by talking to your buyers.
That said, we do know through the WWREA that the buyers were informed, quite clearly, that the site agent would not represent them at all. If the buyers chose to proceed anyway following this warning, then that was their choice. In most cases, a choice like this is more likely to violate the terms of the buyer agency agreement than the Code of Ethics. For example, see the first section of the Exclusive Buyer Agency Agreement (Form 201), which requires the buyer “to cooperate with Firm and also agrees that all offers, contracts, negotiations, leads, inspections, appointments, and any other activities in connection with buying property will be facilitated by and through Firm only.”
Hopefully, this transaction proceeds smoothly, but regardless, it might be a good idea to remind your buyers of their obligation to make sure every part of the transaction flows through you and your firm.
Release Date: 5/28/2026
This article is intended solely for the benefit of NC REALTORS® members, who may reproduce and distribute it to other NC REALTORS® members and their clients, provided it is reproduced in its entirety without any change to its format or content, including disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain. Any unauthorized reproduction, use or distribution is prohibited.