Non-Licensed Ownership in Real Estate Companies for NC

[Levi Bennett]

Can you own a controlling interest in a real estate company if you're not licensed in NC? 

Assuming you have a BIC in place as a manager/officer of the company, and all transactions are done through the oversight of the BIC. 

I can't find clarification on this anywhere. 

From my previous experience in Florida, the law was that you can own a real estate company if you're NOT licensed, or if you're a Broker. However, licensed sales associated were prohibited by law to have any interest in ownership of a real estate company (because of the conflict of interest, a broker would be subject to the ownership, whom the broker manages). My thinking is that there is probably a similar law here in NC, but I am unable to find it. 

Please help, thank you!

[Chris Martin]

I was on this path once. 

When you say "a real estate company" I assume that you mean "a real estate brokerage firm". Big difference. The firm application is here:

The way NC REC rules work (as opposed to ) are spelled out in entitled FIRM LICENSING. The specific wording is: "For purposes of this Rule, the term "principal," when it refers to a person or entity, means any person or entity owning 10 percent or more of the business entity, or who is an officer, director, manager, member, partner, or who holds any other comparable position." Bolding emphasis is mine. 

So your selected broker can be an owner (10% or more) as a member or member/manager or a non-owner manager in your company. And that broker can only be affiliated with your firm. You can't 'borrow' a BIC. If your broker leaves, then your firm will not be in compliance and that may (if you can't get another BIC) impact your business. 

If your plan is to buy a brokerage franchise, please let us know if they balk at your request. When I tried to buy a brokerage franchise, as an unlicensed majority owner, the franchise said 'no' because they required franchise owners to be licensed and owner/operators.