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. II. A broker is prohibited from including a liability disclaimer regarding the broker's representations in the transaction.

Answer 1

In North Carolina real estate transactions, a licensee is obliged to disclose any additional compensation from third parties, and brokers are not permitted to include clauses that disclaim their liability for the statements they make.

Step-by-step explanation:

According to the North Carolina License Law and Commission Rules, the statements in question both hold true:

1. A licensee must disclose any additional compensation they will receive from a third party, such as a selling bonus from a builder. This requirement ensures transparency in the transaction and is in place to protect consumer interests by providing all relevant information about the transaction.
2. A broker is prohibited from including a liability disclaimer regarding the broker's own representations in the transaction. This means that brokers cannot absolve themselves of responsibility for the veracity of the statements they make regarding the property or transaction. It is a legal safeguard to maintain the integrity of information conveyed during a real estate transaction and to encourage due diligence