North Carolina License LawIntermediateNorth Carolina Exam
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 requiredCorrect
CIgnore it as it is outside the scope of real estate practice, under standard practice
DOnly report it after the transaction closes
Why Withdraw from the representation and report to appropriate authorities if required Is Correct
Answer B: Withdraw from the representation and report to appropriate authorities if required
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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