Broker-in-Charge Supervision & Compensation Rules

One BIC per office, who qualifies, what the BIC must do, how provisional brokers are supervised, and the NC rules on who may pay and be paid.

7 minNorth Carolina State Portion

North Carolina puts one person in each office on the hook for supervision: the broker-in-charge. The same section of the exam also covers money, specifically who may pay a broker and whom a broker may pay. These questions are usually short scenarios ("A provisional broker receives a bonus check from the seller...") where you have to spot who is allowed to hand money to whom.

One BIC for every office

Every real estate firm must designate one BIC for its principal office and one for each branch office. No office may have more than one BIC, and a BIC may not serve more than one office unless the offices share the same physical space and delivery address (Rule 58A .0110(a)).

A sole proprietor must designate a BIC if the business holds other people's money in a trust account, advertises or promotes brokerage services, or has other brokers affiliated with it (Rule 58A .0110(b)). In practice, a solo broker who runs even one online ad needs BIC status.

Who may be a BIC

Under N.C.G.S. § 93A-4.2, a BIC must have at least two years of full-time brokerage experience (or equivalent part-time experience) within the previous five years, or equivalent education or experience, and must complete a BIC course of up to 12 hours. A provisional broker may not be designated as a BIC.

Rule 58A .0110(e) adds the timing: the 12-hour Broker-in-Charge Course must be completed no earlier than one year before and no later than 120 days after the BIC Eligible application. A broker can't be granted BIC Eligible status or be designated BIC while a Commission investigation against them is pending (Rule 58A .0110(l)).

What the BIC is responsible for

Rule 58A .0110(g) lists the duties. The ones the exam returns to:

Making sure each affiliated broker has a current, properly renewed and active license.
Notifying the Commission of changes to the firm's business address or trade name.
All advertising by or in the name of the firm at that office.
Maintaining the firm's trust or escrow account and its records, and completing the Basic Trust Account Procedures Course within 120 days of taking over a trust account.
Retaining transaction records.
Supervising provisional brokers, and supervising all affiliated brokers on agency agreement and disclosure requirements.
Supervising unlicensed employees at the office.
Notifying the Commission in writing within 10 days after ceasing to serve as BIC of an office.

Supervising provisional brokers

A provisional broker may do licensed work only while the license is on active status and the provisional broker is supervised by the BIC of the firm or office they are affiliated with (Rule 58A .0506(a)). Normally that means one BIC at a time. The exception is two affiliated firms in the same physical location acting as co-listing or co-selling agents. In that case no more than two BICs supervise, and both carry full responsibility.

On affiliation, the BIC files a License Activation and Broker Affiliation form. The provisional broker may start work once it is submitted, but must stop if no written acknowledgment arrives from the Commission within 30 days (Rule 58A .0506(b)-(c)).
The BIC must supervise in a way that ensures the provisional broker follows the License Law and rules. A BIC who fails to do so can be disciplined (Rule 58A .0506(d)).
When the supervisory relationship ends, both the provisional broker and the BIC notify the Commission in writing within 10 days (Rule 58A .0506(e)).
Money a provisional broker receives goes to the broker they are affiliated with upon receipt. A provisional broker does not deposit it personally (Rule 58A .0116(b)(1)).

Compensation: who may pay whom

Provisional brokers are paid only through their BIC or employing broker. Under § 93A-6(a)(5), a provisional broker may be disciplined for accepting a commission or other valuable consideration from anyone else. A thank-you check written by a happy seller straight to a provisional broker is a violation. The payment has to go through the firm.

No sharing with unlicensed people. A licensee may not pay or share compensation with an unlicensed person for acts in North Carolina that require a license (Rule 58A .0109(g)), and paying anyone for acts done in violation of the Chapter is itself a violation (§ 93A-6(a)(9)). Paying an unlicensed friend a "finder's fee" for referring a buyer falls into this trap.

The travel-agent exception

Under Rule 58A .0109(h), a broker may pay a travel agent for introducing a vacation-rental tenant only if the travel agent only made the introduction, did so in the regular course of the travel agent's business, and did not solicit, handle or receive any money for the rental. Before a binding vacation rental agreement is made, the broker must give the tenant a written statement advising them to rely only on the agreement and the broker's representations. Payment may be made only after the tenancy ends, and the broker keeps records of it for three years.

Disclosure of other money. In a sales transaction, a broker may accept compensation or a bonus of more than nominal value from the principal only if it is provided for in a written agency contract. From anyone else, the broker must make full and timely disclosure to the principal. That disclosure may be oral but must be confirmed in writing before the principal makes or accepts an offer (Rule 58A .0109(c)). "Nominal value" means insignificant, token or merely symbolic worth.

Commission disputes. The Commission will not arbitrate disputes over commission rates, splits or broker pay (Rule 58A .0109(f)). Those are private or court matters.

BIC Eligible: A status a broker applies for after meeting the experience requirement. The 12-hour BIC Course must be completed no earlier than one year before and no later than 120 days after the application. BIC Eligible status is required before the broker can be designated BIC of an office.
Nominal value: Of insignificant, token, or merely symbolic worth (Rule 58A .0109(e)).

Where this shows up on the exam

Supervision/Compensation is 4 of the 60 scored State items in the Pearson NC outline (April 2026). Expect one BIC-qualification or duty question and one or two "can this person be paid" scenarios. Remember: provisional brokers are paid only through the firm, and unlicensed people are never paid for licensed acts.

Quick Check

After closing, a grateful seller hands provisional broker Lee a $500 check made out to Lee personally. What should Lee do under NC law?

Sources

North Carolina law as published by the General Assembly and the Office of Administrative Hearings, checked 2026-11-05:

21 NCAC 58A .0109(c)(1)
21 NCAC 58A .0109(c)(2)
21 NCAC 58A .0109(e)
21 NCAC 58A .0109(f)
21 NCAC 58A .0109(g)
21 NCAC 58A .0109(h)
21 NCAC 58A .0110(a)
21 NCAC 58A .0110(b)(1)
21 NCAC 58A .0110(b)(2)
21 NCAC 58A .0110(b)(3)
21 NCAC 58A .0110(e)(6)(C)
21 NCAC 58A .0110(g)(1)
21 NCAC 58A .0110(g)(10)
21 NCAC 58A .0110(g)(2)
21 NCAC 58A .0110(g)(3)
21 NCAC 58A .0110(g)(4)
21 NCAC 58A .0110(g)(5)
21 NCAC 58A .0110(g)(7)
21 NCAC 58A .0110(g)(8)
21 NCAC 58A .0110(g)(9)
21 NCAC 58A .0110(l)
21 NCAC 58A .0116(b)(1)
21 NCAC 58A .0506(a)
21 NCAC 58A .0506(c)
21 NCAC 58A .0506(d)
21 NCAC 58A .0506(e)
N.C.G.S. § 93A-4.2
N.C.G.S. § 93A-6(a)(5)
N.C.G.S. § 93A-6(a)(9)
Pearson VUE, Real Estate Licensing in North Carolina (April 2026), BIC Eligible Status
Pearson VUE, Real Estate Licensing in North Carolina (April 2026), Examination Content Outline

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