MENU
[Broker's Authority and Duties -- Commission Eligibility]
A North Carolina broker arranges a real estate sales transaction while working for a brokerage firm. If the broker's license becomes inactive before the transaction closes, the brokerage firm:
Suggested Answer: A
Get Premium NCREC-Broker-N Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
According to North Carolina Real Estate Commission policy, as long as the broker was actively licensed at the time the transaction was originated (i.e., while performing licensed activity), the broker is legally entitled to compensation---even if their license becomes inactive before closing. The commission is paid through the firm. Therefore, the correct answer is A.
12 comments · newest first
KA
Kaycee
3 days ago
Wait, are you sure about that? Seems harsh!
LE
Leoma
8 days ago
Totally agree, that's how it works!
AL
Alberto
13 days ago
The broker can't get paid if their license is inactive.
FL
Flo
18 days ago
Nope, it goes to whoever takes over the deal.
JO
Joseph
24 days ago
I thought the commission would go back to the seller.
ZO
Zona
29 days ago
Wait, does that mean the firm just keeps the money?
LA
Lashunda
1 month ago
Totally agree, that's how it works.
TE
Tegan
1 month ago
The broker can't get paid if their license is inactive!
AV
Avery
1 month ago
I’m a bit confused on this one. I thought the commission had to be returned to the seller if the broker is inactive, but I can't recall clearly.
SH
Shawna
2 months ago
I'm not entirely sure, but I think if the broker's license is inactive, the commission might go to whoever takes over the transaction. So maybe D?
JA
Jaleesa
2 months ago
I feel like there was a similar question in our practice exam, and I think the answer was about the brokerage keeping the commission.
JE
Jesusa
2 months ago
I think I remember something about inactive licenses not being able to receive commissions, so maybe it's B?