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Practice Of Real EstateLicense LawEASY

A training instructor in Boone is preparing an exam-prep note on compensation authorization, disclosure, and limits. Which statement best applies under current North Carolina law?

Correct Answer

A) Commission rules prohibit a broker from accepting compensation from a vendor in exchange for recommending that vendor's services to a party without proper compliance.

Commission rules prohibit a broker from accepting compensation from a vendor in exchange for recommending that vendor's services to a party without proper compliance.

Answer Options
A
Commission rules prohibit a broker from accepting compensation from a vendor in exchange for recommending that vendor's services to a party without proper compliance.
B
A broker may accept secret payment from a home inspector because it is not brokerage compensation.
C
A hidden vendor kickback is acceptable if the vendor performs quality work under current North Carolina rules
D
Vendor referral payments are outside the Commission's compensation rules under current North Carolina rules

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Related Topics & Key Terms

Key Terms:

vendor kickbackconflict of interestRESPAundisclosed compensationbroker fiduciary duty
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