Unpermitted work is a material fact that could affect the value, desirability, or use of the property. A broker has a duty to disclose known material facts. The proper action is to advise the seller of their obligation to disclose this on the Residential Property and Owners’ Association Disclosure Statement, ensuring transparency and mitigating future liability for both the seller and the broker.

The North Carolina Real Estate Commission rules require that disbursement from a trust account requires the written consent of all parties who have an interest in the funds. A signed, written release from both buyer and seller providing clear instructions is the proper and required method for disbursing earnest money after a contract termination, preventing claims of improper handling.

The most professional and effective first step is to escalate the issue within the other firm by contacting the broker-in-charge (BIC). The BIC has supervisory responsibility for the listing agent and is in the best position to resolve the internal communication problem. This approach is direct, respects the chain of command, and seeks a solution before involving outside authorities, which would be a later step if the BIC is unresponsive.

As a fiduciary, the broker’s duty is to provide competent advice to help the client make an informed decision. This involves presenting relevant market data (like comparable sales), understanding the client’s goals, and advising on negotiation strategy. Crafting a strategic counteroffer, rather than an automatic full-price counter or outright rejection, serves the client’s best interest by keeping negotiations alive while working toward a favorable outcome.

The Interstate Land Sales Full Disclosure Act (ILSA) provides an exemption from registration for the sale of lots in a subdivision where each lot is at least 10 acres in size. This is a key exemption that brokers dealing with land sales must know. The other options do not describe valid exemptions under the common interpretations of ILSA rules enforced in North Carolina.

The due diligence period in the standard North Carolina offer-to-purchase contract allows the buyer to terminate the contract for any reason or no reason at all, as long as they provide written notice to the seller before the due diligence deadline. The buyer’s reason (the HVAC cost) is valid but not required to be justified. Upon proper termination, the buyer is entitled to a full refund of their earnest money.

NCREC rules require that all advertisements be in the name of the broker or firm, and the firm name must be displayed in a prominent, conspicuous, and easily readable manner. The compliant example clearly shows the firm name and properly identifies the individual as a broker. The other options contain potential violations: superlatives like “BEST” and “#1” may be considered misleading, and unsubstantiated comparative claims (faster, for more money) are prohibited unless they can be proven with reliable, current data for a meaningful comparison.

The purchase price (minus any deposits already paid and any financing) is due at closing. The earnest money deposit is a small part of the total price held in trust to show good faith. The bulk of the funds required to complete the purchase—whether from the buyer’s own funds or their lender’s proceeds—are collected and disbursed at the settlement table on the closing date as outlined in the settlement statement.

This conditional offer creates a conflict of interest. If the broker’s compensation depends on the buyer meeting the seller’s specific price and term demands, the broker has a financial incentive that conflicts with their fiduciary duty to get the best price and terms for the buyer client. This creates an undisclosed dual agency situation, which is a serious violation. The broker must either negotiate a clear, unconditional commission agreement with the seller (often as a sub-agent) or have a clear agreement with the buyer to be paid regardless of the final price.

Unpermitted work is a material fact that could affect the value, desirability, or use of the property. A broker has a duty to disclose known material facts. The proper action is to advise the seller of their obligation to disclose this on the Residential Property and Owners’ Association Disclosure Statement, ensuring transparency and mitigating future liability for both the seller and the broker.0