Broker-In-Charge Designation for More Than One Firm
QUESTION: I am currently the BIC of a real estate firm, which focuses on residential sales transactions. I want to open a second firm to provide property management services for our clients. Will I be able to designate myself BIC of the new management company? In the future, what options do I have to open a third firm, where I am planning to offer commercial sales services, and serve as BIC?
ANSWER: Fortunately, it is possible to serve as a BIC of more than one firm. Under Chapter 58A, Section .0110(a), the NCREC’s rule states, in part, “A BIC shall not serve as BIC for more than one office unless each of those offices share the same physical office space and delivery address.”
This rule allows you to serve as a BIC for more than one firm, if all firms share the same physical address. The rule is consistent with the idea that the number of agents each BIC is responsible for supervising can vary. The important consideration for any licensed broker deciding whether to designate themselves as BIC of one or more firms is whether they believe they will be able to adequately supervise their agents and manage all the services provided by the firms for which they are designated BIC.
Although many agents may work remotely for much of their workday, it is important for BICs to be able to demonstrate that the firm has policies and procedures in place to adequately supervise all agents, review transaction files, ensure advertisements are accurate, and work closely with provisional brokers. A fantastic resource for anyone contemplating or serving as BIC of a firm is the NCREC Broker-In-Charge Best Practices Guide, which can be found here.
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