North Carolina License LawIntermediateNorth Carolina Exam
A NC broker who has an ownership interest in a property they are selling to a client must disclose this to the client:
AOnly at closing
BBefore entering a contract, in writingCorrect
COnly verbally
DThis is not required if the broker's firm is not listing the property
Why Before entering a contract, in writing Is Correct
Answer B: Before entering a contract, in writing
NC license law requires brokers to disclose their ownership interest (financial stake) in a property to the client in writing before contracting — the duty of disclosure requires revealing conflicts of interest.
Key North Carolina License Law Terms in This Question
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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.
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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
State-Specific Concepts
Disclosure RequirementsLicense Law
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