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Practice Of Real EstateLicense LawMEDIUM

A buyer representative in Concord 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 North Carolina broker may not pay compensation for brokerage services to an unlicensed person or to an inactive licensee.

A North Carolina broker may not pay compensation for brokerage services to an unlicensed person or to an inactive licensee.

Answer Options
A
A broker may pay an unlicensed social-media promoter for procuring buyers.
B
A broker may pay an inactive licensee a referral fee because the person once held a license.
C
A broker may pay a showing fee to an unlicensed company if the amount is small.
D
A North Carolina broker may not pay compensation for brokerage services to an unlicensed person or to an inactive licensee.

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Related Topics & Key Terms

Key Terms:

unlicensed personinactive licenseebrokerage compensationNC license lawprocuring cause

Related Concepts

FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.

A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

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