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In North Carolina, the term 'provisional broker' refers to:

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Question & Answer

Review the question and all answer choices

A

A broker with a suspended license

A is incorrect because a suspended license represents disciplinary action, not a licensing classification. A broker with a suspended license would not be practicing real estate at all, whereas provisional brokers are actively practicing under supervision.

B

A newly licensed broker who must work under supervision

Correct Answer
C

A broker with limited authority

C is incorrect because provisional brokers in NC have full real estate authority, just under supervision. Their authority is not limited by their provisional status, but rather by the terms of their supervising relationship.

D

An out-of-state broker

D is incorrect because an out-of-state broker would need to obtain North Carolina licensure to practice in NC, but they wouldn't be classified as a provisional broker unless they were newly licensed in NC.

Why is this correct?

B is correct because North Carolina specifically designates newly licensed brokers as 'provisional brokers' who must work under the supervision of a broker-in-charge during their first two years. This is a mandatory licensing requirement, not an optional arrangement.

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