What must a BIC have before paying a licensee's entity?

In North Carolina, a Broker-in-Charge (BIC) must possess a firm license before paying a licensee's entity. Holding a firm license signifies that the BIC operates under a registered real estate firm and is authorized to conduct real estate transactions on behalf of that firm. This requirement ensures that all financial transactions related to real estate activities are conducted within the legal framework governing real estate firms in the state.

A firm license is essential because it validates the broker's authority and enables the proper payment processes to occur. Without this license, any transactions involving payments to a licensee's entity would not comply with state regulations and could lead to disciplinary action.

The other options presented do not fulfill the legal requirements necessary for the BIC to make payments. A broker's personal license only applies to individual transactions but does not encompass the operational capacity of a business entity. Client approval might be necessary for certain transactions but does not substitute the requirement of a firm license. Similarly, a business income report is not a prerequisite for executing payments in real estate transactions. Having the firm license ensures that the BIC is properly authorized to manage and disburse funds related to their associates' activities.