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Practice Of Real EstateLicense LawHARD

A firm owner in Greenville is updating the policy manual on compensation authorization, disclosure, and limits. Which statement best applies under current North Carolina law?

Correct Answer

B) A broker who expects to receive a referral fee should disclose that expectation to the prospect or principal involved.

A broker who expects to receive a referral fee should disclose that expectation to the prospect or principal involved.

Answer Options
A
Disclosure is required only if the referral is to an in-state broker.
B
A broker who expects to receive a referral fee should disclose that expectation to the prospect or principal involved.
C
A broker may accept any hidden vendor or referral payment if the amount is modest.
D
Referral fees are private business matters and need not be disclosed to the client.

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Related Topics & Key Terms

Key Terms:

referral fee disclosureconflict of interestNCREC rulesduty of disclosureprospect or principal
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