NC Post Licensing 303 Questions and Answers
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Terms in this set (103)
A Licensee may not earn is INACTIVE or EXPIRED
compensation when there
license - VIP
A Licensee can receive the license was current and active even if inactive of
compensation that was expired after
earned WHEN - VIPterm-
0
A BIC may NOT pay a unless the entity has a firm license.
licensee's ENTITY
1) Must be in writing - as part of the agreement
2) Must be subject to Lender Approval in case of
loans
A Licensee can share
commission with parties
3) Disclosed on the Closing Disclosure
BUT
4) Is considered a gift
5) Only with principal or client (not others)
, 1) from the BIC
Compensation ALWAYS 2) NO payment directly by the firm
flows through the firm
3) Brokers MAY NOT pay brokers directly except a
SOLE PROPrietorships
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
When Paying Non-
Affiliated Brokers or Firms
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 & Disclosure AND consent by Principal is REQUIRED
Incentives
KICKBACKS to
Settlement Service Providers
- BANKS
RESPA Prohibits
- APPRAISAL COMPANIES
- TITLE OFFICERS
- ATTORNEYS
Applies to:
- 1-4 units RESIDENTIAL PROPERTIES WITH A
RESPA STATUTE
FEDERALLY RELATED LOAN
- ENFORCED BY HUD
1) Vacant Land Transactions
2) Cash Transactions
RESPA does not apply to
(VIP)
3) Seller Financed Transactions
) Commercial Transactions
Save
Terms in this set (103)
A Licensee may not earn is INACTIVE or EXPIRED
compensation when there
license - VIP
A Licensee can receive the license was current and active even if inactive of
compensation that was expired after
earned WHEN - VIPterm-
0
A BIC may NOT pay a unless the entity has a firm license.
licensee's ENTITY
1) Must be in writing - as part of the agreement
2) Must be subject to Lender Approval in case of
loans
A Licensee can share
commission with parties
3) Disclosed on the Closing Disclosure
BUT
4) Is considered a gift
5) Only with principal or client (not others)
, 1) from the BIC
Compensation ALWAYS 2) NO payment directly by the firm
flows through the firm
3) Brokers MAY NOT pay brokers directly except a
SOLE PROPrietorships
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
When Paying Non-
Affiliated Brokers or Firms
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 & Disclosure AND consent by Principal is REQUIRED
Incentives
KICKBACKS to
Settlement Service Providers
- BANKS
RESPA Prohibits
- APPRAISAL COMPANIES
- TITLE OFFICERS
- ATTORNEYS
Applies to:
- 1-4 units RESIDENTIAL PROPERTIES WITH A
RESPA STATUTE
FEDERALLY RELATED LOAN
- ENFORCED BY HUD
1) Vacant Land Transactions
2) Cash Transactions
RESPA does not apply to
(VIP)
3) Seller Financed Transactions
) Commercial Transactions
