What must brokers have to operate legally?

To operate legally, brokers are required to have a $15,000 bond. This bond serves as a form of financial security designed to protect the interests of clients and ensures that brokers adhere to the regulations set forth by the state. In North Carolina, the bond acts as a safeguard against misconduct or unethical practices in the conduct of business. If a broker fails to follow legal or regulatory standards, claims can be made against this bond to compensate affected parties.

While other options may contribute to the overall operation of a brokerage, they are not mandated requirements for legal operation in North Carolina. For example, errors and omissions insurance is highly recommended to protect brokers from claims relating to professional errors but is not a legal requirement to practice. A partnership agreement might be beneficial for structuring a business entity but is not required for operational legality. Similarly, a licensing agreement is necessary for the practice, but it does not specifically capture the financial responsibilities that a bond does.