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NC Post Licensing - 303 Questions with
Detailed Verified Answers
A Licensee may not earn compensation when there license - VIP Ans: is
INACTIVE or EXPIRED
A Licensee can receive compensation that was earned WHEN - VIP Ans:
the license was current and active even if inactive of expired after
A BIC may NOT pay a licensee's ENTITY Ans: unless the entity has a
firm license.
A Licensee can share commission with parties BUT Ans: 1) Must be in
writing - as part of the agreement
2) Must be subject to Lender Approval in case of loans
3) Disclosed on the Closing Disclosure
4) Is considered a gift
5) Only with principal or client (not others)
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Compensation ALWAYS flows through the firm Ans: 1) from the BIC
2) NO payment directly by the firm
3) Brokers MAY NOT pay brokers directly except a SOLE PROPrietorships
When Paying Non-Affiliated Brokers or Firms Ans: 1) Best Practice to
put in writing - Not a Rule
2) May pay referral fees to brokers in any state if person has a CURRENT
and ACTIVE license
3) DOCUMENTATION in broker's file:
- Written documentation regarding fee
- Proof of licensure
- Copy of a W9 for Brokerage Insurance or a 1099
When receiving Bonuses & Incentives Ans: Disclosure AND consent by
Principal is REQUIRED
RESPA Prohibits Ans: KICKBACKS to
Settlement Service Providers
- BANKS
- APPRAISAL COMPANIES
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- TITLE OFFICERS
- ATTORNEYS
RESPA STATUTE Ans: Applies to:
- 1-4 units RESIDENTIAL PROPERTIES WITH A FEDERALLY RELATED
LOAN
- ENFORCED BY HUD
RESPA does not apply to (VIP) Ans: 1) Vacant Land Transactions
2) Cash Transactions
3) Seller Financed Transactions
) Commercial Transactions
RESPA CO-OWNERSHIP with different settlement service providers Ans:
Also known as:
- Affiliated Business Arrangements (ABAs)
- Controlled Business Arrangements (CBAs)
NC Post Licensing - 303 Questions with
Detailed Verified Answers
A Licensee may not earn compensation when there license - VIP Ans: is
INACTIVE or EXPIRED
A Licensee can receive compensation that was earned WHEN - VIP Ans:
the license was current and active even if inactive of expired after
A BIC may NOT pay a licensee's ENTITY Ans: unless the entity has a
firm license.
A Licensee can share commission with parties BUT Ans: 1) Must be in
writing - as part of the agreement
2) Must be subject to Lender Approval in case of loans
3) Disclosed on the Closing Disclosure
4) Is considered a gift
5) Only with principal or client (not others)
, Page | 2
Compensation ALWAYS flows through the firm Ans: 1) from the BIC
2) NO payment directly by the firm
3) Brokers MAY NOT pay brokers directly except a SOLE PROPrietorships
When Paying Non-Affiliated Brokers or Firms Ans: 1) Best Practice to
put in writing - Not a Rule
2) May pay referral fees to brokers in any state if person has a CURRENT
and ACTIVE license
3) DOCUMENTATION in broker's file:
- Written documentation regarding fee
- Proof of licensure
- Copy of a W9 for Brokerage Insurance or a 1099
When receiving Bonuses & Incentives Ans: Disclosure AND consent by
Principal is REQUIRED
RESPA Prohibits Ans: KICKBACKS to
Settlement Service Providers
- BANKS
- APPRAISAL COMPANIES
, Page | 3
- TITLE OFFICERS
- ATTORNEYS
RESPA STATUTE Ans: Applies to:
- 1-4 units RESIDENTIAL PROPERTIES WITH A FEDERALLY RELATED
LOAN
- ENFORCED BY HUD
RESPA does not apply to (VIP) Ans: 1) Vacant Land Transactions
2) Cash Transactions
3) Seller Financed Transactions
) Commercial Transactions
RESPA CO-OWNERSHIP with different settlement service providers Ans:
Also known as:
- Affiliated Business Arrangements (ABAs)
- Controlled Business Arrangements (CBAs)
