Licensed or Illegal? The 7 Real Estate Activities That Require an NC Broker License

Navigating the Legal Landscape of Brokerage

In North Carolina, the term “real estate broker” is much broader than just the person who holds the keys at an open house. The NC Real Estate Commission (NCREC) is tasked with regulating anyone who performs a “brokerage activity” for compensation. If you’re getting paid to facilitate a transaction involving property that you don’t own, your license better be active.

To avoid inadvertently practicing real estate illegally—a Class 1 Misdemeanor offense—it’s essential to know the specific actions that require a North Carolina Real Estate Broker License, as outlined in the General Statutes $\S$ 93A-2.

The Seven Statutory Brokerage Activities

If you engage in any of the following activities for compensation or the promise of compensation on behalf of another person or entity, you must be a licensed broker:

Listing or Offering to List: Putting property on the market, entering into a listing agreement, or soliciting sellers.
Selling or Offering to Sell: Marketing property to buyers, providing detailed information beyond what is in public advertising, and assisting with the sale process.
Buying or Offering to Buy: Representing a buyer, assisting them in finding property, or executing a Buyer Agency Agreement.
Exchanging: Negotiating or facilitating the trade of one piece of real estate for another.
Leasing or Offering to Lease: Representing a landlord to secure a tenant, negotiating lease terms, or signing a lease on behalf of the owner.
Renting or Offering to Rent: This includes managing rental properties, collecting rent, and screening tenants on behalf of the owner.
Auctioning: Selling or offering to sell real estate property at an auction (with specific rules regarding auctioneers).

Beyond the Transaction: Key Activities That Demand Licensure

The general categories above translate into very specific, day-to-day actions that are restricted to licensed NC Real Estate Brokers:

Negotiating Terms: Discussing or modifying prices, concessions, closing dates, repair requests, or any terms in an Offer to Purchase and Contract (OPA).
Showing Property: Opening a property for sale or lease to a prospective client. Even opening the door for a buyer you are working with counts.
Property Management: Most common property management tasks—like determining security deposit amounts, negotiating rental rates, and signing leases—require a license.
Advertising: Drafting or placing an advertisement for a specific listed property (unless simply clerical, as discussed in our previous post on unlicensed assistants).

The Critical Exemption: Property Owners Managing Their Own Assets

It’s important to reiterate that the law applies when you are acting for another (as an agent). The primary exemption is for any person or entity who, as an owner or lessor, performs any of these acts concerning property owned or leased by them.

For example, a property owner managing their own rental home is exempt. However, the moment that owner hires someone else to do the negotiating for compensation, a license is required.

Key Takeaway