North Carolina Brokerage Practice
This topic covers how North Carolina brokerages must operate, including trust money handling, recordkeeping, and advertising. It also addresses the license categories that structure supervision within a firm.
Trust and Escrow Account Rules
North Carolina License Law requires brokers to place client and customer money, such as earnest money deposits, into a trust or escrow account separate from the broker's own funds. Commingling personal or business funds with trust money is prohibited, and detailed records must show every deposit and disbursement. Trust funds generally must be deposited within three banking days, and the broker-in-charge is responsible for the account's integrity. These rules protect consumers and are a frequent subject of Commission discipline.
License Categories and the Broker-in-Charge
North Carolina issues a single broker license rather than separating salespersons and brokers, but licensees move through provisional broker, broker, and broker-in-charge roles. A new licensee starts as a provisional broker who must be supervised and must complete post-licensing education. Every office and every broker operating independently must have a designated broker-in-charge who supervises affiliated brokers, trust accounting, and advertising at that location. This structure places clear responsibility for compliance on the BIC.
Advertising and Recordkeeping
Brokers in North Carolina must advertise only with the consent of the property owner and must not advertise in a way that misleads consumers or hides the broker's licensed status. All advertising by affiliated brokers must be under the supervision of the firm and its broker-in-charge. Transaction records, agency agreements, and trust account documentation must be retained for the period the Commission requires. Accurate records allow the Commission to audit compliance and protect the public.