North Carolina License Law
Under NC license law, a broker who knows their client is engaged in tax fraud related to a real estate transaction should:
AAssist the client to secure the transaction
BWithdraw from the representation and report to appropriate authorities if required✓ Correct
CIgnore it as it is outside the scope of real estate practice
DOnly report it after the transaction closes
Explanation
A broker who knows a client is engaged in fraud must withdraw from the representation. Continuing to assist in fraudulent activity violates license law and potentially subjects the broker to criminal liability.
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