North Carolina License LawIntermediateNorth Carolina Exam
A broker in NC who represents both a buyer and seller and fails to disclose this dual agency relationship prior to entering into a binding contract has violated:
AOnly the Code of Ethics of the local REALTOR association, in most cases
BNC license law and the duty to disclose material agency relationshipsCorrect
CRESPA
DThe NC Residential Rental Agreements Act
Why NC license law and the duty to disclose material agency relationships Is Correct
Answer B: NC license law and the duty to disclose material agency relationships
NC license law requires full disclosure of dual agency and informed written consent from both parties before entering a binding contract — failure to do so violates license law.
Key North Carolina License Law Terms in This Question
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Key Terms to Know
Agency
A 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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
State-Specific Concepts
License Law
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