Agency LawMEDIUMFREE

In North Carolina, a broker-in-charge must:

2:29
0 plays

Audio Lesson

Duration: 2:29

Question & Answer

Review the question and all answer choices

A

Have 1 year of experience

Option A is incorrect because while experience is required (2 years full-time), it's not the sole requirement. The question asks what a broker-in-charge 'must' do, and completing the BIC course and designation are equally mandatory requirements that go beyond just experience.

B

Complete BIC course and be designated by the firm

Correct Answer
C

Own the brokerage firm

Option C is incorrect because owning the brokerage firm is not a requirement for becoming a broker-in-charge. Many BIC positions are held by brokers who are employees rather than owners of the firm.

D

Work full-time only

Option D is incorrect because while the BIC must work full-time for the firm they supervise, this is not the complete requirement. They must also complete the BIC course and be formally designated by the firm.

Why is this correct?

Option B is correct because North Carolina Real Estate Commission rules mandate that a broker-in-charge must complete the BIC course and be formally designated by the brokerage firm to supervise other licensees. This requirement ensures proper training and oversight within the brokerage.

Deep Analysis

AI-powered in-depth explanation of this concept

The broker-in-charge (BIC) position is crucial in North Carolina's real estate regulatory structure as it establishes clear accountability and supervision within brokerage firms. This question tests knowledge of NC's specific requirements for the BIC role, which differs from other states. The core concept involves understanding that a BIC must meet several qualification requirements beyond simply having experience or ownership. Option B is correct because North Carolina law specifically requires BIC candidates to complete the mandatory BIC course and be formally designated by the brokerage firm. The question is challenging because it requires knowing NC's specific regulations rather than general real estate principles. Many students confuse the BIC requirements with those of a broker or broker-in-charge in other states. Understanding this concept connects to broader knowledge of real estate regulation, brokerage operations, and supervision requirements across different states.

Knowledge Background

Essential context and foundational knowledge

The broker-in-charge position was established by the North Carolina Real Estate Commission to ensure proper supervision and accountability within brokerage firms. This role serves as the primary point of contact between licensees and the Commission, responsible for ensuring compliance with real estate laws and regulations. The BIC requirement addresses the need for qualified supervision of real estate activities, protecting consumers while maintaining professional standards in the industry.

Memory Technique
acronym

BIC stands for Broker-In-Charge, but remember the requirements as 'C-D-E': Course, Designation, Experience

When you see 'Broker-In-Charge' on the exam, mentally recall C-D-E to remember they need Course completion, Designation by firm, and Experience

Exam Tip

For BIC questions, focus on the three key requirements: course completion, firm designation, and experience. Ownership is rarely required for BIC positions.

Real World Application

How this concept applies in actual real estate practice

Sarah recently obtained her broker license and joined a 20-agent brokerage firm in Charlotte. The firm's current BIC is retiring, and the broker owner asks Sarah if she would like to become the new BIC. Sarah needs to complete the required BIC course, submit the designation paperwork to the firm, and confirm she has the required 2 years of full-time experience before she can legally assume the BIC role and begin supervising the firm's licensees.

Ready to Ace Your Real Estate Exam?

Access 2,499+ free podcast episodes covering all 11 exam topics.