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Practice Of Real EstateLicense LawMEDIUM

A training instructor in Cary is answering a client question about compensation authorization, disclosure, and limits. Which statement best applies under current North Carolina law?

Correct Answer

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

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Related Topics & Key Terms

Key Terms:

unlicensed personinactive licenseebrokerage compensationG.S. 93Alicense requirement

Related Concepts

Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.

A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.

A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.

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