[Broker’s Authority and Duties] According to the North Carolina Real Estate Commission Rules, what must be included in a written agency agreement?

According to the North Carolina Real Estate Commission (NCREC) Rule 21 NCAC 58A .0104, all written agency agreements, including both listing agreements and buyer agency agreements, must include the real estate license number of the individual broker. This requirement ensures proper identification and accountability for the licensee providing the brokerage services. The rule is specific in this mandate, making it a non-negotiable component of a valid written agency agreement in North Carolina.

B. The NCREC rules do not require the broker's license expiration date to be included in agency agreements; only the license number is mandated.

C. A broker protection clause (or "extender clause") is a negotiable term that may be included, but it is not a mandatory component required by Commission rules.

D. NCREC rules explicitly prohibit automatic renewal clauses. All agency agreements must have a definite termination date to protect consumers from being bound to an agreement indefinitely.

1. North Carolina Administrative Code, Title 21, Chapter 58A, Section .0104 (e) & (f).

Section .0104(e): "Every listing agreement, written or oral, shall contain the broker's license number."

Section .0104(f): "Every buyer agency agreement, written or oral, shall contain the broker's license number."

This directly supports the correct answer (A).

2. North Carolina Administrative Code, Title 21, Chapter 58A, Section .0104 (c).

Section .0104(c): "Every written agency agreement shall provide for its existence for a definite period of time and shall provide for its termination without prior notice at the expiration of that period."

This directly refutes the validity of an automatic renewal clause (D).

3. North Carolina Real Estate Commission. (2023). North Carolina Real Estate Manual.

Chapter 8, "Agency Contracts and Practices," Section: "Provisions of Agency Agreements." This chapter details the required components of agency contracts as stipulated by NCREC rules, confirming that the broker's license number is required, while automatic renewal clauses are prohibited. It also clarifies that a protection clause is a permissible but not a required provision.