When Must a North Carolina Broker Give the "Working with Real Estate Agents" Disclosure?
Short answer: In every real estate sales transaction, a North Carolina broker must give a prospective buyer or seller a copy of the Commission's "Working with Real Estate Agents" publication at first substantial contact, write the broker's name and license number on it, review it with them, and determine whether the broker will act as the buyer's or seller's agent. If first contact is by phone or electronically, the broker must send it at the earliest opportunity and no later than three days later. The rule is 21 NCAC 58A .0104(c).
What the rule requires
Rule .0104(c) lists four duties at first substantial contact with a prospective buyer or seller:
- Provide a copy of the "Working with Real Estate Agents" publication.
- Set forth the broker's name and license number on it.
- Review the publication with the buyer or seller.
- Determine whether the agent will act as the agent of the buyer or seller in the transaction.
The publication is available on the Commission's website or on request from the Commission.
When: "first substantial contact"
The trigger is not the first hello. The rule defines first substantial contact to include contacts where the consumer or broker begins to act as though an agency relationship exists and the consumer begins to disclose personal or confidential information. In practice, that is the moment a conversation turns to the person's own motivation, finances or bargaining position.
| How first substantial contact happens | What the broker must do |
|---|---|
| In person | Provide and review the publication at that contact |
| By phone or other electronic means where giving it is not practical | Mail or transmit it at the earliest opportunity, no later than three days from first substantial contact, and review it at the earliest practicable opportunity |
To whom
Paragraph (c) applies to prospective buyers and sellers "in every real estate sales transaction." Paragraph (g) says it does not apply to brokers representing sellers in auction sales transactions. The paragraph is written for sales; for leasing situations, check the Commission's current guidance.
See how you'd score before paying anything — no card, no signup.
Start free quiz →
Most guides skip Texas law. We do not — one pass covers both halves of the exam.
See what is covered →
See what actually makes the Texas real estate exam hard, straight from TREC data.
Read the breakdown →
The Texas real estate exam is on-demand — no waitlist, no test window. Schedule whenever you're ready.
See how scheduling works →What it does and does not create
The publication is a disclosure and a conversation starter. It helps the consumer understand agency choices, and the rule makes the broker determine which side they will represent. It is not, by itself, the brokerage agreement. Rule .0104(a) separately governs agreements:
- Every agreement for brokerage services between a broker and an owner must be in writing and signed at the time it is formed.
- A buyer or tenant agreement must be express and must be in writing and signed no later than the time one of the parties makes an offer.
- A buyer or tenant agreement that binds the buyer for a period of time or restricts the buyer's right to work with other agents (or without an agent) must be in writing and signed from its formation.
- Every written brokerage agreement must be for a definite period, include the broker's license number, and end without prior notice when that period expires (with a limited automatic-renewal exception for landlord agreements to procure tenants or collect rents).
Likewise, reviewing the publication does not authorize dual agency. Under Rule .0104(d), a broker representing one party may not represent another party in the same transaction without the written authority of each party.
Related disclosures in Rule .0104
- Seller's agent with a buyer (paragraph (e)): a broker working directly with a prospective buyer as a seller's agent or subagent must disclose in writing, at first substantial contact, that the broker represents the seller, including the broker's license number. If contact is by phone or electronically, the broker must disclose immediately by similar means and send the written disclosure no later than three days later.
- Buyer's agent with a seller (paragraph (f)): at initial contact with the seller or seller's agent, a buyer's agent must disclose that they represent the buyer, and, except at auctions, give written confirmation no later than delivery of an offer. The confirmation may be in the offer and must include the broker's license number.
- Firm dual agency (paragraphs (i) and (j)): a firm that represents more than one party in a transaction is a dual agent and must disclose that. With the clients' prior express approval, the firm may designate individual brokers to represent each side.
Who is responsible in the office
Each broker is responsible for their own disclosures. Rule .0110 also makes the broker-in-charge responsible for supervising all brokers at the office with respect to adherence to agency agreement and disclosure requirements.
Why it matters for the exam
Agency is the largest area of the State section, with 16 of the 60 scored items in the April 2026 handbook outline. Expect scenario questions that ask when first substantial contact occurred, what must happen within three days, and whether a written agreement was required yet. Study the topic in our NC agency lesson and see the full outline in our exam structure guide. New licensees should also read what a provisional broker is.
Independent exam-prep guide. Not affiliated with the North Carolina Real Estate Commission or Pearson VUE. Always confirm current requirements with the Commission.
Frequently Asked Questions
What is first substantial contact in North Carolina?
What if I first talk with a buyer by phone or email?
Does giving the Working with Real Estate Agents brochure create an agency agreement?
Does the disclosure rule apply at auctions?
- 21 NCAC 58A, North Carolina Real Estate Commission Rules — Rule .0104 agency agreements and disclosure (paragraphs a, c, d, e, f, g, h, i, j); Rule .0110 BIC duties
- Real Estate Licensing in North Carolina (NCREC / Pearson VUE handbook, April 2026) — State section content outline: Agency 16 items
