North Carolina License LawIntermediateNorth Carolina Exam
Which of the following actions would likely result in revocation of a NC real estate license?
AReceiving a referral fee from a moving company after disclosure
BTaking a vacation during a listing period
CEmbezzling client funds from a trust accountCorrect
DSetting a commission rate below market average
Why Embezzling client funds from a trust account Is Correct
Answer C: Embezzling client funds from a trust account
Embezzlement of client trust funds is a serious violation of fiduciary duty and license law that would result in license revocation and potentially criminal prosecution.
Key North Carolina License Law Terms in This Question
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Math Concepts
State-Specific Concepts
Trust Account RulesLicense Law
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