In every real estate brokerage transaction you confront face-to-face the North Carolina Real Estate Licensing Low and the Rules and Regulations of the North Carolina Real Estate Licensing Board. Observance of and strict compliance with these Laws, Rules and Regulations is not a matter of choice - it is an absolute necessity! To illustrate their practical significance, the following "typical" real estate transaction has been constructed which points out (in parenthesis) the specific Rule, Regulation, or Section of the Licensing Low applicable to the particular situation; "LL" refers to the North Carolina Real Estate Licensing Low, and "RR" refers to the Rules and Regulations of the North Carolina Real Estate Licensing Board. Consult your copy of the Licensing Low and Rules and Regulations for complete information, and if copies are not readily accessible in your office, you are strongly urged to request hem from the Licensing Board. Your license and your livelihood may depend upon it.

You are a duly licensed North Carolina real estate broker. You have received your privilege license from the N. C. Department of Revenue for the current year (LL 93A-4 (b)), you have renewed your real estate license for the current year (LL 93A-4 (c), RR, .0503), your real estate license and the licenses of your salesmen and associates are prominently displayed in your ace of business (RR, .0101), and the Licensing Board is aware of your current business address and name (RR .0103). Also, since you have recently incorporated your real estate brokerage company, you have secured the required corporate real estate broker's license (LL 93A-1, RR, .0502) which is also prominently displayed in your office.

Your telephone rings!!! A Mr. Samuel L. Seller has learned of your reputation as an honest and capable real estate broker, and he wants you to sell his home. You make an appointment with Mr. Seller to inspect his property and discuss the terms of your employment.

Upon arriving at Mr. Seller's home, you begin inspecting the property and assembling the multitude of facts and figures necessary to accurately answer the questions of prospective purchasers. Afterwards, you join Mr. Seller in his den to ask him additional questions concerning the property and to discuss the listing contract. Although Mr. Seller suggests a simple, oral agreement "sealed with a hand-shake", you point out that in order to avoid the possibility of future misunderstandings and to protect the interests of all parties concerned, the listing agreement should be in writing. Mr. Seller is impressed with your business attitude and agrees to a written listing agreement. You prepare your listing contract form which includes, among other listings, that you have been employed by the seller; your name and the names of the sellers; a clear and specific description of the property (you copy the full legal description from his deed); the selling price and terms of the sale; the commission you are to receive for your services; and the period during which the listing will be effective, including a definite termination date (RR .0104). Mr. Seller and his wife then sign the listing contract and you immediately give them a copy (RR .0106) retaining a copy for your records (RR .0108). With Mr. Seller's approval, you place your "For Sale" sign on the property (RR .0105 (c) (2)).

You advertise the property in your local newspaper clearly indicating that you are a broker or brokerage firm (RR 0 105 (a))

Your telephone rings!!! Billy B. Buyer has read your advertisement and is interested in seeing the property. A "showing" is arranged at which Mr. Buyer is permitted to examine the property to his complete satisfaction. Although your thorough information enables you to answer almost all questions posed by Mr. and Mrs. Buyer, several questions require additional information from the seller; to avoid the possibility of misrepresenting the property (LL 93A-6 (a) (1) (2)), you inform Mr. Buyer that you will refer his questions to Mr. Seller. After receiving this additional information, Mr. Buyer wants to make an offer to purchase the property.

At Mr. Buyer's request, you assist him in preparing in quadruplicate (4 copies) the Offer to Purchase form which contains, among other things, Mr. and Mrs. Buyer's names; the offer itself; a description of the property (preferably the full legal description you obtained from Mr. Seller's deed); the sale price, terms and conditions; the type of conveyance to be furnished Mr. Buyer; the termination date of the offer; and a statement of the amount of earnest money accompanying the offer with provisions regarding the disposition of the earnest money in the event the purchase is not consummated. Mr. and Mrs. Buyer sign all four copies of the offer and they retain a copy (RR .0106). You then immediately deposit the earnest money in your escrow or trust account (LL 93A-6 (a) (12), RR .0107 (a)) and arrange to promptly meet with the Sellers to deliver and discuss the Offer to Purchase (RR .0106).

Mr. and Mrs. Seller accept the offer in its entirety and sign the three remaining copies (at which point the Offer to Purchase becomes a Contract of Sale). The Sellers retain a copy (LL 93A-6 (a) (13), RR .0106), you keep a copy for your files (RR .0108), and you promptly deliver a copy to the Buyers (LL 93A-6 (a) (13), RR .0106). In accordance with the terms of the Contract of Sale, a closing date is set.

The transaction is closed, and you immediately prepare and deliver complete detailed closing statements to both the Buyers and the Sellers showing all receipts and disbursements handled by you during the course of the transaction (LL 93A-6 (a) (14), RR .0107 (b)), and you retain copies of these signed statements for your files (RR .0108).