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Practice Of Real EstateLicense LawMEDIUM

A provisional broker in Winston-Salem is sorting out a file issue involving compensation authorization, disclosure, and limits. Which statement best applies under current North Carolina law?

Correct Answer

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

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Related Topics & Key Terms

Key Terms:

referral feedisclosurefiduciary dutyNC Real Estate Commissioncompensation transparency
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