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Real Estate Licensing NCREC-Broker-N Exam - Topic 3 Question 20 Discussion

[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:
A) can pay the commission to the broker.
B) must keep the commission.
C) must return the commission to the seller.
D) must pay the commission to the licensee who took over the transaction for the now-inactive broker.

Real Estate Licensing NCREC-Broker-N Exam - Topic 3 Question 20 Discussion

Actual exam question for Real Estate Licensing's NCREC-Broker-N exam
Question #: 20
Topic #: 3
[All NCREC-Broker-N Questions]

[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:

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Suggested Answer: A

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.


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Shawna
4 days 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?
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Jaleesa
9 days 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.
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Jesusa
15 days ago
I think I remember something about inactive licenses not being able to receive commissions, so maybe it's B?
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