21 N.C. Admin. Code 58A.0110
Current through Register Vol. 39, No. 11, December 2, 2024
Section 58A .0110 - BROKER-IN-CHARGE(a) Every real estate firm shall designate one BIC for its principal office and one BIC for each of its branch offices. No office of a firm shall have more than one designated BIC. A BIC shall not serve as BIC for more than one office unless each of those offices share the same physical office space and delivery address.(b) Every sole proprietorship shall designate a BIC if the sole proprietorship: (1) engages in any transaction where a broker is required to deposit and maintain monies belonging to others in a trust account;(2) engages in advertising or promoting services as a broker in any manner; or(3) has one or more other brokers affiliated with the sole proprietorship in the real estate business.(c) A licensed real estate firm shall not be required to have a BIC if it:(1) is organized for the sole purpose of receiving compensation for brokerage services furnished by its qualifying broker through another firm or broker;(2) is treated for tax purposes as a pass-through business by the United States Internal Revenue Service;(3) has no principal or branch office; and(4) has no licensed person associated with it other than its qualifying broker.(d) A broker who maintains a trust or escrow account for the sole purpose of holding residential tenant security deposits received by the broker on properties owned by the broker in compliance with G.S. 42-50 shall not be required to be a BIC.(e) In order for a broker to designate as a BIC for a sole proprietor, real estate firm, or branch office, a broker shall apply for BIC Eligible status by submitting an application on a form available on the Commission's website. The BIC Eligible status form shall include the broker's:(5) criminal history and history of occupational license disciplinary actions;(6) certification of compliance with G.S. 93A-4.2, including that: (A) his or her broker license is on active status;(B) the broker has obtained at least two years of real estate brokerage experience equivalent to 40 hours per week within the previous five years or shall be a North Carolina licensed attorney with a practice that consisted primarily of handling real estate closings and related matters in North Carolina for three years immediately preceding application; and(C) the broker completed the 12-hour Broker-in-Charge Course no earlier than one year prior to application and no later than 120 days after application; and(f) A broker who holds BIC Eligible status shall submit a form to become the designated BIC for a sole proprietor, real estate firm, or branch office. The BIC designation form shall include: (1) the broker's: (E) criminal history and history of occupational license disciplinary actions; and(2) the firm's: (B) license number, if applicable;(g) A designated BIC shall:(1) assure that each broker affiliated at the office has complied with Rules .0503, .0504, and .0506 of this Subchapter;(2) notify the Commission of any change of firm's business address or trade name and the registration of any assumed business name adopted by the firm for its use;(3) be responsible for the conduct of advertising by or in the name of the firm at such office;(4) maintain the trust or escrow account of the firm and the records pertaining thereto;(5) retain and maintain records relating to transactions conducted by or on behalf of the firm, including those required to be retained pursuant to Rule .0108 of this Section;(6) supervise provisional brokers associated with or engaged on behalf of the firm at such office in accordance with the requirements of Rule .0506 of this Subchapter;(7) supervise all brokers affiliated at the office with respect to adherence to agency agreement and disclosure requirements;(8) notify the Commission in writing that he or she is no longer serving as BIC of a particular office within 10 days following any such change;(9) complete the Commission's Basic Trust Account Procedures Course within 120 days of assuming responsibility for a trust account in accordance with G.S. 93A-6(g), however the BIC shall not be required to complete the course more than once in three years; and(10) supervise all unlicensed individuals employed at the office and ensure that unlicensed individuals comply with G.S. 93A-2(c)(6).(h) A broker holding BIC Eligible status shall take the Broker-in-Charge Update Course during the license year of designation, unless the broker has satisfied the requirements of Rule .1702 of this Subchapter prior to designation.(i) A broker's BIC Eligible status shall terminate if the broker: (1) made any false statements or presented any false, incomplete, or incorrect information in connection with an application;(2) fails to complete the 12-hour Broker-in-Charge Course pursuant to Paragraph (e) of this Rule;(3) fails to renew his or her broker license pursuant to Rule .0503 of this Subchapter, or the broker's license has been suspended, revoked, or surrendered; or(4) fails to complete the Broker-in-Charge Update Course and a four credit hour elective course pursuant to Rules .1702 and .1711 of this Subchapter, if applicable.(j) In order to regain BIC Eligible status after a broker's BIC Eligible status terminates, the broker shall complete the 12-hour Broker-in-Charge Course prior to application and then submit a BIC Eligible status form pursuant to Paragraph (e) of this Rule.(k) A nonresident commercial real estate broker licensed under the provisions of Section .1800 of this Subchapter shall not act as or serve in the capacity of a broker-in-charge of a firm or office in North Carolina.(l) A broker shall not be granted BIC Eligible status or designated as BIC of a firm if there is a pending Commission investigation against the broker.21 N.C. Admin. Code 58A .0110
Authority G.S. 93A-2; 93A-3(c); 93A-4; 93A-4.2; 93A-9; 93A-38.5;
Eff. September 1, 1983;
Amended Eff. July 1, 2014; May 1, 2013; July 1, 2010; July 1, 2009; January 1, 2008; April 1, 2006; July 1, 2005; July 1, 2004; April 1, 2004; September 1, 2002; July 1, 2001; October 1, 2000; August 1, 1998; April 1, 1997; July 1, 1995; July 1, 1994;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. May 1, 2018;
Amended Eff. July 1, 2021; July 1, 2020; July 1, 2018.Authority G.S. 93A-2; 93A-3(c); 93A-4; 93A-4.1; 93A-4.2; 93A-9;
Eff. September 1, 1983;
Amended Eff. May 1, 2013; July 1, 2010; July 1, 2009; January 1, 2008; April 1, 2006; July 1, 2005; July 1, 2004; April 1, 2004; September 1, 2002; July 1, 2001; October 1, 2000; August 1, 1998; April 1, 1997; July 1, 1995; July 1, 1994;Amended by North Carolina Register Volume 29, Issue 3, August 1, 2014 effective 7/1/2014.Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. May 1, 2018;Amended by North Carolina Register Volume 32, Issue 23, June 1, 2018 effective 7/1/2018.Amended by North Carolina Register Volume 35, Issue 01, July 1, 2020 effective 7/1/2020.Amended by North Carolina Register Volume 36, Issue 03, August 2, 2021 effective 7/1/2021.