North Carolina Governing Agency North Carolina Real Estate Commission Website: http://www.ncrec.gov/ Address: 1313 Navaho Drive Raleigh, NC 27609 Tel. No.: 919-875-3700 Email: [email protected] License/Activity Law License Law found in Chapter 93A of the General Statutes of North Carolina (GSNC). The Rules and Regulations are found in Chapter 58 of the North Carolina Administrative Code (NCAC). For guideline to rules and regulations: http://www.ncrec.gov/pdfs/studyguide.pdf Referral Fee/Commission Sharing A licensee shall not undertake in any manner, any arrangement, contract, plan or other course of conduct, to compensate or share compensation with unlicensed persons or entities for any acts performed in North Carolina for which licensure by the Commission is required. 21 NCAC 58A .0109(g). Note that NC brokers may split commissions or pay referral fees to licensees of another state so long as the out-of-state licensee does not provide any brokerage services while physically in North Carolina. http://www.ncrec.gov/pdfs/studyguide.pdf Acts requiring license It shall be unlawful for any person, partnership, corporation, limited liability company, association, or other business entity in this State to act as a real estate broker, or directly These materials have been prepared for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. This website is not intended to be a source for legal advice, and thus the reader should not rely on any information provided in this website as such. 1 or indirectly to engage or assume to engage in the business of real estate broker or to advertise or hold himself or herself or themselves out as engaging in or conducting such business without first obtaining a license issued by the North Carolina Real Estate Commission under the provisions of this Chapter. GSNC § 93A-1. o GSNC § 93A-2(a): a Broker sells or offers to sell, buys or offers to buy, auctions or offers to auction (specifically not including a mere crier of sales), or negotiates the purchase or sale or exchange of real estate, or who leases or offers to lease, or who sells or offers to sell leases of whatever character, or rents or offers to rent any real estate or the improvement thereon, for others. Reciprocity Persons applying for a North Carolina broker license who hold a current real estate license that has been on active status within the previous three years in another state of the United States, a United States territory or possession or a Canadian jurisdiction shall meet the licensing requirements prescribed in G.S. 93A-4 except that such persons shall be exempt from the "national" section of the North Carolina real estate license examination, but shall pass the "state" section of that examination. A person qualifying for licensure under this provision shall be issued a North Carolina broker license on a status comparable to the category of license held by the person in the jurisdiction where the qualifying license is held. 21 NCAC 58A .0511(a). Brokers who were licensed in North Carolina by reciprocity shall be entitled to retain such license indefinitely, unless suspended, revoked or surrendered pursuant to G.S. 93A6, so long as the license is continuously renewed or is reinstated within six months of expiration. A person who was previously licensed in North Carolina by reciprocity and who seeks reinstatement of that license after the license has been expired for more than six months, suspended, revoked or surrendered shall satisfy the requirements described in Rule .0505 of this Section. 21 NCAC 58A .0502(b). License Types and Requirements A real estate broker is any person, partnership, corporation, limited liability company, association, or other business entity who for a compensation or valuable consideration or promise thereof lists or offers to list, sells or offers to sell, buys or offers to buy, auctions or offers to auction (specifically not including a mere crier of sales), or negotiates the purchase or sale or exchange of real estate, or who leases or offers to lease, or who sells or offers to sell leases of whatever character, or rents or offers to rent any real estate or the improvement thereon, for others. GSNC § 93A-2(a). These materials have been prepared for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. This website is not intended to be a source for legal advice, and thus the reader should not rely on any information provided in this website as such. 2 o For applications and qualifications: GSNC § 93A-4. A broker-in-charge is a real estate broker who has been designated as the broker having responsibility for the supervision of brokers on provisional status engaged in real estate brokerage at a particular real estate office and for other administrative and supervisory duties as the Commission shall prescribe by rule. GSNC § 93A-2(a1). o For qualification: GSNC § 93A-4.2; 21 NCAC 58A .0110(g). A provisional broker is a real estate broker who, pending acquisition and documentation to the Commission of the education or experience prescribed by either G.S. 93A-4(a1) or G.S. 93A-4.3, must be supervised by a broker-in-charge when performing any act for which a real estate license is required. GSNC § 93A-2(a2). Every business entity other than a sole proprietorship shall apply for and obtain from the Commission a firm license prior to engaging in business as a real estate broker. 21 NCAC 58A .0502(a). o Entity must show the Commission that one principal of the business entity holds a broker license on active status and in good standing who will serve as qualifying broker of the entity. 21 NCAC 58A .0502(b). o The qualifying broker of a partnership of any kind must be a general partner of the partnership; the qualifying broker of a limited liability company must be a manager of the company; and the qualifying broker of a corporation must be an officer of the corporation. 21 NCAC 58A .0502(b). o A provisional broker may not serve as a qualifying broker. 21 NCAC 58A .0502(b). Nonresident o The Commission may issue a broker license to an applicant licensed in a foreign jurisdiction who has satisfied the requirements for licensure set out in G.S. 93A-4 or such other requirements as the Commission in its discretion may by rule require. GSNC § 93A-9(a). For application forms: http://www.ncrec.gov/Resources/Forms These materials have been prepared for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. This website is not intended to be a source for legal advice, and thus the reader should not rely on any information provided in this website as such. 3 Misc./Advertising Trade Names o In the event that any broker shall advertise in any manner using a firm name or an assumed name which does not set forth the surname of the broker, the broker shall first file the appropriate certificate with the office of the county register of deeds in each county in which the broker intends to engage in brokerage activities in compliance with G.S. 66-68 and notify the Commission in writing of the use of such a firm name or assumed name. 21 NCAC 58A .0103 (b). o A broker shall not include the name of a provisional broker or an unlicensed person in the name of a sole proprietorship, partnership or business entity other than a corporation or limited liability company. No broker shall use a business name that includes the name of any active, inactive, or cancelled broker without the permission of that broker or that broker's authorized representative. 21 NCAC 58A .0103 (b). Advertising o A provisional broker shall not advertise any brokerage service or the sale, purchase, exchange, rent or lease of real estate for another or others without the consent of his or her broker-in-charge and without including in the advertisement the name of the broker or firm with whom the provisional broker is associated. 21 NCAC 58A .0105(a)(1). o A broker shall not advertise the sale, purchase, exchange, rent or lease of real estate, for another or others, in a manner indicating the offer to sell, purchase, exchange, rent, or lease is being made by the broker's principal only. Every such advertisement shall conspicuously indicate that it is the advertisement of a broker or brokerage firm and shall not be confined to publication of only a post office box number, telephone number, street address, internet web address, or e-mail address. 21 NCAC 58A .0105(b). These materials have been prepared for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. This website is not intended to be a source for legal advice, and thus the reader should not rely on any information provided in this website as such. 4
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