Question

According to the North Carolina License Law and Commission Rules, which of the following statements regarding provisions in a preprinted sales contract is/are true? I.A licensee must disclose any additional compensation s/he will receive from a third party, such as a selling bonus from a builder in writing in the sales contract. II.A broker is prohibited from including a liability disclaimer regarding the broker's representations in the transaction in the sales contract.

Answer 1

Both statements I and II are true according to the North Carolina License Law and Commission Rules regarding provisions in a preprinted sales contract.

Step-by-step explanation:

According to the North Carolina License Law and Commission Rules, both statements I and II are true regarding provisions in a preprinted sales contract.

Statement I is true. A licensee is required to disclose any additional compensation they will receive from a third party in writing in the sales contract, such as a selling bonus from a builder. This helps provide transparency to all parties involved in the transaction.

Statement II is also true. A broker is indeed prohibited from including a liability disclaimer regarding their representations in the transaction in the sales contract. This ensures that brokers remain accountable for their statements and representations.