Broker in Charge (BIC) Requirements Quiz

Broker in Charge (BIC) Requirements

• Most brokerage activities in North Carolina necessitate the supervision of a Broker in Charge.
• A Broker in Charge oversees a group of licensees working together at a single location.
• Licensees advertising properties or services must operate under a BIC.
• Holding trust money on behalf of clients also requires BIC supervision.
• Sole proprietors may operate without a BIC, provided they do not engage in specified activities.

Supervision of Licensees

• Nonprovisional brokers can remain on "Active" status without a BIC if they do not engage in advertising, hold trust money, or collaborate with others.
• A provisional broker cannot achieve "Active" status without supervision from a BIC.
• Nonprovisional brokers who distribute business cards in hopes of attracting clients must be supervised by a BIC.

Responsibilities of a Broker in Charge

• The BIC is accountable for the actions of provisional brokers they supervise and can face disciplinary actions if violations occur.
• The BIC is not legally required to report violations to the North Carolina Real Estate Commission (NCREC).
• They must ensure all affiliated brokers renew their licenses by June 30 each year.

Advertising Regulations

• Real estate advertisements must either include the BIC's name or the firm's name for compliance.
• Any advertisement lacking this critical information risks violating NCREC rules.

Documentation and Compliance

• Licensees must submit documentation, including disclosures, to their BIC within three calendar days of receipt.
• Transaction files must be maintained for three years after the last service is provided in the transaction.

Qualifying Broker (QB) Role

• A Qualifying Broker is a licensed nonprovisional broker with ownership interest in a company obtaining a firm license.
• The QB is responsible for choosing the firm’s BIC and must ensure the firm's license is renewed annually.
• The QB does not have to serve as the BIC but must appoint one.

Distinction of Responsibilities

• The QB has two main duties: renewing the firm's license and appointing a BIC. All other supervisory responsibilities fall to the BIC.
• The BIC operates independently in decision-making related to the firm’s activities and compliance.

Licensing and Certification Requirements

• To become a BIC, a broker must be nonprovisional, active, and have two years of full-time experience within the last five years.
• A Broker in Charge course can be completed either prior to or within 120 days after assuming the BIC role.

Compliance with Licensee Supervision

• A nonprovisional broker may receive referral fees without BIC supervision if they are not engaging in marketing or brokerage services.
• Active provisional brokers cannot operate independently and must always work under a BIC’s supervision.