In response to a request from the North Carolina Real Estate Licensing Board, the following opinion was received on August 9, 1975:

STATEMENT OF FACTS: "Attorney 'A' closes a real estate transaction between a buyer and seller, the closing having been referred to him by the broker. Attorney 'A' handles all details of the closing, collecting all funds held in escrow by the broker, collecting the balance of monies due from the principals, disbursing the funds and preparing closing statements which are signed by both seller and purchaser (each being furnished a copy of the closing statement).

The broker does not prepare a closing statement for either the purchaser or seller since the closing attorney has provided the services listed above. A copy of the closing statement prepared by the attorney is furnished the broker for his file.

QUESTION: Does the broker's failure to deliver to the seller and buyer a complete closing statement under these circumstances constitutes a violation of Section 93A-6(14) of the Licensing Low?"

OPINION: G.S. 93A-6 makes it grounds for suspension or revocation of a real estate broker's license to fail ". . . to deliver to the seller in every real estate transaction wherein he acts as a real estate broker, at the time such transaction is consummated, a complete detailed closing statement showing all of the receipts and disbursements handled by such broker for the seller; also failure to deliver to the buyer a complete statement showing all money received in the transaction from such buyer and how and for what the same were disbursed, . . .".

You inquire if, in our opinion, the factual situation quoted above, constitutes a violation of the statute just quoted.

In our opinion, this statute does not require the broker personally to deliver the closing statement to the buyer and seller. In our opinion there is substantial compliance with the statute if the broker causes someone else, such as an attorney handling the closing transaction, to furnish to the buyer and seller the documents required by the statute. In such instances, in our opinion, the attorney handling the transaction is acting as agent for the broker and the broker will be responsible for the accuracy of the documents. Therefore it is the broker's responsibility to examine the closing statements prior to or at the time of their delivery to the buyer and seller

Yours very truly,
Rufus L. Edmisten
Attorney General
Millard R. Rich, Jr.
Deputy Attorney General

(NOTE: The Licensing Board advises every broker to keep a complete file on each closed transaction for a period of at least three years after the transaction is closed. This file should include copies of all pertinent documents such as listing agreement, sales contract, closing statements, and copies of all correspondence relating to the case.)