Broker in Charge (BIC) Requirements Quiz
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Questions and Answers

Which of the following statements regarding a Broker in Charge in North Carolina is true?

  • The Broker in Charge of a real estate firm must be the owner of the firm
  • A sole proprietor will never need a Broker in Charge to offer brokerage services
  • All brokerage activities in North Carolina require the supervision of a Broker in Charge
  • Most brokerage activities in North Carolina require the supervision of a Broker In Charge (correct)

    • Which of the following real estate licensees in North Carolina would require the supervision of a Broker In Charge?

  • A provisional broker who does not wish to perform any brokerage services
  • A nonprovisional broker who hands out their business card to potential buyers (correct)
  • A nonprovisional broker who remains on Active status to receive referral fees
  • A real estate firm existing only for the payment of commissions

    • Which statement is UNTRUE regarding Alex's responsibility as Broker in Charge?

  • Alex might be reprimanded or have his license suspended if the provisional broker is guilty
  • The provisional broker might be reprimanded or have their license suspended
  • Alex is required by NCREC rule to report the violation to the Commission (correct)
  • The provisional broker, Alex, and the firm might all be sued by a buyer

    • Which of the following activities would automatically require the supervision of a Broker in Charge?

    <p>A provisional broker who joins the local MLS as a REALTOR</p> Signup and view all the answers

    Please select the statement most likely true of a Broker in Charge in North Carolina.

    <p>A Broker in Charge is responsible for ensuring license renewals of all affiliated brokers</p> Signup and view all the answers

    Identify the advertisement which is in compliance with NCREC rules.

    <p>3 bedroom, 2 bath cottage on Lake Gaston. Listing courtesy of Lakeside Properties Inc.</p> Signup and view all the answers

    Which of the following can be accomplished by a licensee in North Carolina who is NOT supervised by a Broker in Charge?

    <p>An active nonprovisional broker paid regular referral fees</p> Signup and view all the answers

    When is the latest time Cora can provide her Broker in Charge with the signed WWREA disclosure?

    <p>Tuesday July 9</p> Signup and view all the answers

    Which of the following statements is most accurate regarding Anna's requirements to become a BIC?

    <p>Anna must be an active nonprovisional broker with at least 2 years of experience in the last 5 years</p> Signup and view all the answers

    How long must New Horizons maintain the documents on file for the transaction?

    <p>July 31, 2024</p> Signup and view all the answers

    Which of the following is true of a Qualifying Broker?

    <p>A qualifying broker is a licensed nonprovisional broker with ownership interest in the firm</p> Signup and view all the answers

    Which of the following duties is the responsibility of the qualifying broker of a real estate firm?

    <p>Renewing the firm license</p> Signup and view all the answers

    Study Notes

    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.

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    Description

    Test your knowledge on the roles and responsibilities of a Broker in Charge (BIC) in North Carolina. This quiz covers essential aspects such as supervision of licensees, trust money management, and the conditions under which nonprovisional and provisional brokers can operate. Ensure you understand BIC requirements to effectively manage real estate activities.

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