Question

"Judy is an unlicensed individual. Her parents are selling their own home as For Sale by Owner without the representation of a real estate licensee. While her parents are on vacation, Judy shows the home to some interested potential buyers and has long conversations with them about the conditions under which they may purchase her parent's home. Judy's parents do not pay her in cash but instead offer to send on an upcoming vacation. Is Judy in violation of NC Licensing Law?

A. No because the home is her parent's own property and it is therefore exempt from the licensure requirement.
B. No, because Judy did not receive any cash payment for her activity.
C. Yes, Judy is engaged in the business of real estate without a license
D. Yes because Judy is legally required to obtain a power of attorney from her parents in this instance."

Answer 1

Judy is not in violation of NC Licensing Law as she is showing her parent's property, which they are allowed to sell without a real estate license, and the exemption extends to immediate family members like Judy.

Step-by-step explanation:

The question asks whether Judy is in violation of NC Licensing Law by showing her parent's home and discussing sale conditions while they are on vacation, without being a licensed real estate individual and receiving a non-cash benefit.

The correct answer is A. No, because the home is her parent's own property and it is therefore exempt from the licensure requirement. In many jurisdictions, including North Carolina, homeowners are allowed to sell their own properties without being licensed as real estate agents. This exemption typically extends to immediate family members who may assist in the process.

While Judy did not receive a cash payment, the form of compensation (such as a vacation) does not determine a violation of real estate licensing laws. It's the act of performing real estate activities, like listing or selling property, for others without a license that is typically regulated. Since the property belongs to her parents, and she is acting on their behalf as a private individual, not as a professional conducting business, she is not engaged in the business of real estate and thus not in violation of such laws.