North Carolina License LawIntermediateNorth Carolina Exam
Under NC license law, a broker who acts as both principal (buying for themselves) and agent must disclose this dual role:
AOnly after the transaction closes
BTo the other party before entering into a contractCorrect
COnly to the NCREC
DOnly if the other party specifically asks, in general
Why To the other party before entering into a contract Is Correct
Answer B: To the other party before entering into a contract
A broker who has a personal financial interest in a transaction (such as purchasing for their own account) must disclose their status as a licensed real estate broker to the other party before entering into a contract.
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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.
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.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
State-Specific Concepts
License Law
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