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Practice Of Real EstateLicense LawMEDIUM

A provisional broker in Greensboro is revising a training memo on compensation authorization, disclosure, and limits. Which statement is NOT accurate under current North Carolina law?

Correct Answer

B) Vendor referral payments are outside the Commission's compensation rules under current North Carolina rules

This choice is the inaccurate statement. The other three options describe the current North Carolina rule or guidance more accurately.

Answer Options
A
A broker who expects to receive a referral fee should disclose that expectation to the prospect or principal involved.
B
Vendor referral payments are outside the Commission's compensation rules under current North Carolina rules
C
An affiliated broker is generally paid through the current BIC or the broker who served as BIC at the time the commission was earned, not directly by outsiders.
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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Why the Other Options Are Wrong

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Related Topics & Key Terms

Key Terms:

vendor referral paymentNCREC compensation rulesNOT accurate formatBIC compensation structuredisclosure obligation
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