Question

Under North Carolina law and commission rules, which of the following is a correct statement regarding designated agency?

I. The BIC cannot be a designated agent. II. An agent cannot be appointed as a designated agent if the agent has prior confidential knowledge about the other party in the transaction.
A. Both I and II
B. II only
C. Neither I nor II
D. I only

Answer 1

In North Carolina, the correct statement about designated agency is II only, meaning an agent cannot be a designated agent if they have prior confidential knowledge of the other party in the transaction. Statement I is incorrect as the BIC can be a designated agent.

Step-by-step explanation:

Under North Carolina law and commission rules regarding designated agency, the following statement is correct: An agent cannot be appointed as a designated agent if the agent has prior confidential knowledge about the other party in the transaction. Therefore, the correct answer to whether both statements I and II are true, or just one, is B. II only. The Broker-in-Charge (BIC) can be a designated agent as long as they adhere to the agency agreements and do not have confidential information regarding the other party that would impair their duty to their client.