Agency
A broker in NC may not lawfully pay a referral fee to:
AA licensed broker in another state
BA licensed NC broker who referred a client
CAn unlicensed former client who referred a buyer✓ Correct
DA licensed broker who is also a REALTOR
Explanation
Under NC license law and RESPA, referral fees may only be paid to licensed real estate professionals. Paying a referral fee to an unlicensed person (including a client or friend) for referring business is illegal.
People Also Study
Related North Carolina Questions
- Under North Carolina law, a licensee who pays referral fees to unlicensed individuals:North Carolina License Law
- Under RESPA, a kickback or referral fee paid between settlement service providers is:Finance
- Under NC license law, a real estate broker may pay a referral fee to a person who referred a buyer or seller to the broker if:North Carolina License Law
- Under North Carolina agency law, an agent's duty of confidentiality to the client:Agency
- An agent who discloses their client's minimum acceptable price to the other party without authorization has violated the duty of:Agency
- A NC buyer's agent who fails to disclose a known material defect because the seller is also a client (in a dual agency) has violated:Agency
- A NC real estate broker who has a personal financial interest in a property they are recommending to a client must:Agency
Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
State-Specific Concepts
License Law
Study This Topic
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →