North Carolina License Law
A broker in NC who discovers their client is planning to use the real estate transaction to commit mortgage fraud should:
AProceed with the transaction since it's not their responsibility
BWithdraw from the representation and, where required, report the fraud✓ Correct
CNegotiate a higher commission for the risk
DDisclose the fraud only to the other party's agent
Explanation
A broker who discovers mortgage fraud or illegal activity must withdraw from the representation and may have reporting obligations. Participating in fraud violates license law and federal law.
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