Commission Meeting of July 20, 2022

Pending Cases: The Commission entered into consent agreements to suspend 6 licenses, closed cases without action against 2 licensees, revoked 1 license, accepted the voluntary surrender of 2 licenses, and ordered hearings in cases involving 14 licensees.

License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 8; total approved: 7.

License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:

Legislative Report: The Director of the Regulatory Affairs Division reviewed with the Commission the Legislative Report, noting bills that are currently pending in the General Assembly that relate to real estate brokerage, occupational licensing, or other matters of interest to the Commission.

Potential Litigation: The Commission voted to meet in closed session pursuant to N.C.G.S. § 143-318.11(a)(3) to discuss potential litigation.

License Renewal Progress: Staff reported that as of June 30, 2022, 92% of licensees had renewed their licenses, as opposed to 94% at the same time last year. Staff reviewed with the Commission the numbers of licenses expired, those marked inactive due to failure to complete annual CE requirements and of those, the number designated as brokers-in-charge (BIC) or BIC eligible.

Education Provider and Instructor License Examination Performance: Staff reported on education provider and instructor renewal and license examination performance over the prior fiscal year. They provided detail on the impact and effect of the Commission’s 40% rule, including data indicating that a significant number of instructors and education providers had improved the overall performance of their students on the license examination.

Report on License Numbers: As of July 1, 2022, there are 116,600 brokers and firms licensed by the Commission, as follows:

• Active Brokers 78,499
• Active Provisional Brokers 5,290
• Brokers-in-Charge 16,917
• BIC-Eligible Brokers 5,668
• Inactive Brokers 23,145
• Inactive Provisional Brokers 5,856
• Firms 14,738
• Limited Nonresident Commercial Brokers 218

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday August 17, 2022, and can be viewed via Zoom online video.

NC REAL ESTATE COMMISSION MEETS IN DURHAM

The North Carolina Real Estate Commission met at the JB Duke Hotel in Durham, NC July 20-21 as part of its initiative to reach out to real estate licensees across the State. The meeting was led by the Commission’s Chairman, Wendell Bullard, a Durham broker specializing in commercial real estate brokerage, land, and residential transactions. Bullard welcomed Durham area brokers, Realtors®, education providers and members of the public to the Commission’s monthly business meeting.

Senator Mike Woodard joined the meeting and provided a legislative update to the Commission members, staff, and guests in attendance. Also in attendance were Cindie Burns, incoming president of the Durham Regional Association of Realtors® and the Association’s CEO, Shelia Willis.

Along with its other business, the Commission considered a variety of applicants for real estate broker licenses, settlements of complaints involving broker misconduct, and the performance of education providers in connection with real estate courses.

The Commission members thanked Mr. Bullard for his service to the real estate profession throughout the past year. The Real Estate Commission is responsible for licensing and regulating North Carolina real estate brokers in order to protect the public interest in their real estate brokerage transactions.

Commission Meeting of June 22, 2022

Pending Cases: The Commission entered into consent agreements to suspend 3 licenses, closed cases without action against 6 licensees, revoked 1 license, reprimanded 1 licensee, dismissed a case involving 1 licensee, and ordered a hearing in cases involving 12 licensees.

License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 13; total approved: 9.

License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:

Legislative Report: The Directory of the Regulatory Affairs Division reviewed with the Commission the Legislative Report, noting bills that are currently pending in the General Assembly that relate to real estate brokerage, occupational licensing, or other matters of interest to the Commission. The Director noted that H619, the Elevator Safety law, is moving forward in the Senate. The bill would call for certain elevators in private residences to be inspected and in some cases improved to protect the public safety. The Commission asked if staff could provide more education on this subject to licensees and consumers. The Director of the Real Estate Commission stated staff could craft an educational piece about the subject to publish in the e-Bulletin. The Commission asked if this is an area to be put on the NC Property Disclosure form and suggested putting it on the list for rulemaking.

Annual Rulemaking: Staff provided a summary of the rules that received approval from the Rules Review Commission and reported that the rules are posted on the Commission’s website. The rules were approved on May 19, 2022 and are effective July 1, 2022.

License Renewal Progress: Staff reported that as of June 21, 2022, 79% of licensees had renewed their licenses, as opposed to 84% at the same time last year. There are currently 4,648 brokers that have not completed CE and of those, 221 are BIC eligible, 486 are BICs and 86 of the BICs have affiliated brokers. The Executive Director of the Real Estate Commission noted that there would be a phone campaign to BICs who have not renewed their license to remind them to do so before June 30.

Update Course Development: Staff reported that the theme of the 2022-2023 Update and BICUP courses is “Staying Alert in the Brokerage Practice Zone” and that the course presents information regarding Material Facts and Dual Agency along with Law & Rules Updates and information regarding Licensing and Education. In the BICUP course, an additional section on BIC Responsibility is included. The Update Instructor Seminar has been and will be offered on nine different dates to educate instructors on teaching the courses.

Report on License Numbers: As of June 1, 2022, there are 127,564 brokers and firms licensed by the Commission, as follows:

• Active Brokers 84,438
• Active Provisional Brokers 6,336
• Brokers-in-Charge 18,012
• BIC-Eligible Brokers 5,510
• Inactive Brokers 26,511
• Inactive Provisional Brokers 8,326
• Firms 16,312
• Limited Nonresident Commercial Brokers 303

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday July 20, 2022, at the JB Duke Hotel in Durham, NC, and can also be viewed via Zoom online video.

Commission Meeting of May 18, 2022

Pending Cases: The Commission entered into consent agreements to suspend 6 licenses, closed cases without action against 3 licensees, accepted the voluntary surrenders of 2 licensees, rejected a proposed consent agreement involving 1 licensee reprimanded 4 licensees, and ordered a hearing in a case involving 1 licensee.

License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 14; total approved: 9.

License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:

Legislative Report: The The Directory of the Regulatory Affairs Division reviewed with the Commission the Legislative Report, noting that the General Assembly has been out for primaries, and there are no bills to be monitored at this time. Sheexpects legislative activity to begin the week of May 23, 2022.

2022 NCREC Educators Conference: Staff reported that as of May 17, 2022, 20% of licensees had renewed their licenses, as opposed to 17% at the same time last year.

Distance Education Provider Audits: The Executive Director reminded the Commission that during COVID and by emergency rule, education providers were permitted to teach prelicensing and postlicensing courses in an asynchronous manner for the first time but at the last minute determined not to require ARELLO approval of the courses. It was then determined by the Commission to allow the courses to be taught without any approval by staff as there were no rules in place for staff approval. In 2021, the Commission allowed these courses to be renewed with only the certification of the education provider submitting the courses assuring the Commission that the courses were in compliance with the requirements that became effective July 1, 2021. Commission staff began auditing courses to ensure compliance with Commission rules. The results of the audits completed to date indicate that, three of the audited asynchronous/distance NC Broker Prelicensing courses were found not in compliance as required by Commission Rules, including Rules 58H .0205, .0401, and .0415. The Executive Director noted also that two of the three owners of these courses resell them to other education providers who then offer the course to students under their name, creating a total of approximately thirty providers offering courses to students that fail to meet minimal requirements. Following discussion, the Commission voted unanimously to withdraw approval for the three distance education NC Broker Prelicensing courses effective the date the notice is sent; further, that the Commission will not renew the courses until they are brought into compliance, at which time the education provider must reapply for approval, and further, that the education providers must not enter into new contracts with students but must honor contracts with existing students, including the 180 day period to complete the course as required by Commission rules.

Report on License Numbers: As of May 1, 2022, there are 126,675 brokers and firms licensed by the Commission, as follows:

• Active Brokers 83,941
• Active Provisional Brokers 6,299
• Brokers-in-Charge 17,949
• BIC-Eligible Brokers 5,458
• Inactive Brokers 26,292
• Inactive Provisional Brokers 8,189
• Firms 16,147
• Limited Nonresident Commercial Brokers 295

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday June 22, 2022, and can be viewed via Zoom online video.

Commission Meeting of April 20, 2022

Pending Cases: The Commission entered into consent agreements to suspend 8 licenses, closed its case without action against 4 licensees, accepted the permanent voluntary surrender of 3 licenses, left 3 cases pending, reprimanded 2 licensees, permanently revoked 1 license, and ordered hearings in cases involving 11 licensees.

License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 16; total approved:12.

License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:

Legislative Report: The Commission reviewed the Legislative Report, noting that the General Assembly will be back in session on May 4, 2022, and that there are no bills to be monitored at this time.

Homeowner Associations Cases and Issues: Jim Slaughter, an attorney from Law Firm Carolinas, gave a presentation to the Commission on recent cases regarding solar panels and the Marketable Title Act as well as the Residential Property Disclosure form regarding homeowner association issues.

2022 NCREC Educators Conference: Staff provided to the Commission an overview of the 2022 NCREC Educators Conference which was held via Zoom on Tuesday, March 29 from 8:30 a.m. to 5:00 p.m. Attendance was tracked to ensure educators were eligible for instructor development credit. During the event, the Commission present the 2022 Larry A. Outlaw Excellence in Education award to Mr. Dana Rhodes. Videos of the conference presentations are available on the Commission’s website.

Report on License Numbers: As of April 1, 2022, there are 125,649 brokers and firms licensed by the Commission, as follows:

• Active Brokers 83,391
• Active Provisional Brokers 6,287
• Brokers-in-Charge 17,877
• BIC-Eligible Brokers 5,376
• Inactive Brokers 25,908
• Inactive Provisional Brokers 7,785
• Firms 16,060
• Limited Nonresident Commercial Brokers 290

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday May 18, 2022, and can be viewed via Zoom online video.

Commission Meeting of March 16, 2022

Pending Cases: The Commission entered into consent agreements to suspend 6 licenses, closed its case without action against 1 licensee, accepted the permanent voluntary surrender of 2 licenses, left 2 cases pending, voted to extend deadlines to a later date in 2 cases, reprimanded 2 licensees, revoked 2 licenses, and ordered hearings in cases involving 9 licensees.

License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 12; total approved:10.

License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:

Legislative Report: The Commission reviewed the Legislative Report, noting that the General Assembly adjourned on March 11 and will reconvene on April 4.

Dual Agency: Staff reviewed the current rule, 21 NCAC 58A .0104, regarding dual agency and reminded the Commission of the information provided in the Q&A on Working With Real Estate Agents and the two reports on dual agency staff presented at previous Commission meetings. The Commission discussed generally whether a single agent should be allowed to continue practicing dual agency and the possibility of some form of transaction brokerage, either of which would require rulemaking.

2022 NCREC Educators Conference: Staff provided to the Commission an overview of the 2022 NCREC Educators Conference agenda which will be held via Zoom on Tuesday, March 29 from 8:30 a.m. to 5:00 p.m. It was noted that the conference sold out in three-and-a-half hours. Videos of the conference presentations will be posted shortly after the conference. Instructor development credit will not be awarded for watching the video recordings. However, the Commission’s new distance IDWs – Instructor Development Workshops – will be posted in early April for those instructors who need credit.

Education Town Hall: Staff reported that the first Town Hall meeting for education providers and instructors was held on Friday, March 4, 2022. Ninety-two educators attended and the covered topics included the proposed rule changes and instructor development credit. Staff was pleased with the number of participants but noted that no new topics were discussed. The next Town Hall will take place in June with the hope that those present will generate ideas for the next year. The recording of the first Town Hall has been posted in Sharefile. The Commission reported that educators asked if staff can provide exam pass rates for different course delivery formats. Staff responded that right now the Commission systems are not set up to report this type of data but staff is working on it.

Report on License Numbers: As of March 1, 2022, there are 124,621 brokers and firms licensed by the Commission, as follows:

• Active Brokers 82,970
• Active Provisional Brokers 6,467
• Brokers-in-Charge 17,772
• BIC-Eligible Brokers 5,322
• Inactive Brokers 25,470
• Inactive Provisional Brokers 7,388
• Firms 15,897
• Limited Nonresident Commercial Brokers 284

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday April 20, 2022, in Fayetteville, North Carolina, and can be viewed via Zoom online video.

Commission Meeting of February 16, 2022

Pending Cases: The Commission entered into consent agreements to suspend 10 licenses, closed its case without action against 10 licensees, accepted the voluntary surrender of 2 licenses, accepted the permanent voluntary surrender of 3 licenses, left 1 case pending, voted to extend to a later date a case involving 1 licensee, reprimanded 2 licensees, approved the issuance on conditions of 1 license, ordered hearings in cases involving 14 licensees.

License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews. Total candidates considered: 21; total approved:16.

License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:

Legislative Report: The Commission reviewed the Legislative Report, noting that there has been no change since the last Commission meeting as to bills that are currently pending in the General Assembly that relate to real estate brokerage, occupational licensing, or other matters of interest to the Commission.

ANSI Z765 Standard: The Commission reviewed the American National Standards Institute standards for measuring square footage and discussed Fannie Mae’s requirement that residential appraisers use the newest edition of the ANSI Z765 standards for square footage as of April 1, 2022. Staff presented a comparison of the ANSI Z765-2021 Standards with the Commission’s Residential Square Footage Guidelines. The Commission discussed providing information to licensees on the difference between the
ANSI standards and the Commission’s guidelines, including the possibility of a video, eBulletin article, and/or other education.

Report on Update Instructor Seminars: Staff provided to the Commission a report a report on the Update Instructor Seminars for the 2021-2022 license year to date. Commission staff plan to offer the same number of seminars during the 2022-23 license year. The Commission voted to continue the current practice of waiving the fee for Update Instructor Seminar for the 2022-23 license year.

Education Advisory Council and Town Halls: The first Town Hall meeting for education providers and instructors is scheduled for Friday, March 4, 2022. As to the Education Advisory Council, that the Education staff will provide to the Education Committee suggested categories of participants and a list of names to choose from for each category.

Larry A. Outlaw Excellence in Education Award Selection: The Commission voted to meet in closed session pursuant to N.C.G.S § 143-318.11(a)(2) to select the recipient of the Larry A. Outlaw Excellence in Education Award.

Report on License Numbers: As of February 1, 2022, there are 123,935 brokers and firms licensed by the Commission, as follows:

• Active Brokers 82,503
• Active Provisional Brokers 6,460
• Brokers-in-Charge 17,691
• BIC-Eligible Brokers 5,212
• Inactive Brokers 25,397
• Inactive Provisional Brokers 7,299
• Firms 15,752
• Limited Nonresident Commercial Brokers 283

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday March 16, 2022, and can be viewed via Zoom online video.

Commission Meeting of January 19, 2022

Pending Cases: The Commission entered into consent agreements to suspend 6 licenses, rejected a proposed consent agreement involving 1 licensee, closed its case without action against 1 licensee, accepted the voluntary surrender of 1 license, left 1 case pending, ordered hearings in cases involving 2 licensees.

License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 22; total approved:13.

License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:

Legislative Report: The Commission reviewed the Legislative Report, noting bills that are currently pending in the General Assembly that relate to real estate brokerage, occupational licensing, or other matters of interest to the Commission.

Draft Rule Text: The Commission reviewed proposed amendments to Commission rules H .0210 and .0303 as requested by the Commission at the December 2021 meeting. These amendments were considered by the Education Committee on January 4, 2022, and the Committee recommended the changes as written to the Commission. The Commission agreed to the rule amendments presented. The proposed amendments will be published in the February 15 issue of the North Carolina Register and will be posted on the Commission’s home page. The public hearing will be on March 16, 2022.

Report on the 2022 Educators Conference: Staff provided to the Commission a report on the upcoming 2022 Educators Conference. The Educators Conference is planned for Tuesday, March 29, 2022, via Zoom. Registrations will be capped at 150 participants with approximately ten staff moderators. Staff will focus on exam performance on topics described in the prelicensing course syllabus as well as explaining staff’s course audit process, among other topics. After the event, recordings will be available. Registration will open soon.

Report on Real Estate License Examination Results: Staff provided to the Commission a report on the real estate license examination results including total brokers applications received annually, total broker licenses issued annually, exam performance from January 2019-December 2021 and exam pass rate from January 2019-December 2021.

Education Advisory Committee and Town Halls: The Commission reported that as a result of the interest among education providers in new education rule amendments and other education topics, the Education Committee recommends that the Commission form an Education Advisory Committee and also to hold periodic town hall events for the educators and instructors. The Commission voted to create an education advisory committee and to schedule two quarterly town halls this fiscal year for the education providers and instructors.

Report on License Numbers: As of January 1, 2022, there are 123,013 brokers and firms licensed by the Commission, as follows:

• Active Brokers 82,039
• Active Provisional Brokers 6,341
• Brokers-in-Charge 17,609
• BIC-Eligible Brokers 5,133
• Inactive Brokers 25,127
• Inactive Provisional Brokers 7,025
• Firms 15,568
• Limited Nonresident Commercial Brokers 279

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday February 16, 2022, and can be viewed via Zoom online video.

Commission Meeting of December 15, 2021

Pending Cases: The Commission entered into consent agreements to suspend 12 licenses, closed its case without action against 4 licensees, reprimanded 1 licensee, accepted the voluntary surrender of 1 license, permanently revoked 1 license, authorized the Regulatory Affairs Division to seek injunctive relief against 1 licensee, ordered hearings in cases involving 12 licensees, and approved 4 applications for payments from the Real Estate Education and Recovery Fund.

License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 10; total approved: 5.

License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:

Legislative Report: The Commission reviewed the Legislative Report, noting bills that are currently pending in the General Assembly that relate to real estate brokerage, occupational licensing, or other matters of interest to the Commission. Staff noted that the General Assembly has adjourned until December 30, 2021. Staff reported that in the meantime, the General Assembly extended the effective date of the timeshare bill to July 1, 2022, as it pertains to exit companies and that the exit companies may seek further modifications of the law when the General Assembly returns. Staff also provided an overview of S.L. 2021-78 [Changes to the Laws Concerning Agriculture and Forestry]; Staff noted that information relevant to licensees about it will be included in the next Update courses. Staff will track H776 addressing continuing authority for electronic
notarizations and will include an article in the January e-Bulletin about notarization requirements if the bill does not pass.

Draft Rule Text: The Commission reviewed proposed amendments to Commission rules requested by the Commission at the November 2021 meeting. Staff indicated that rule text would need to be adopted by the Commission by January 19 in order to publish any proposed rule changes for public comment in time for a July 1, 2022 effective date. Following a discussion about existing and future opportunities for helping education providers and instructors improve performance, the Commission directed staff to revise the draft text of 21 NCAC 58H .0210 and 21 NCAC 58H .0303 with the following:

• Include the word, “limit” in the lead-in language of 58H .0210(a) and 58H.0303(a) so that it provides that the Commission may deny, limit, or withdraw certification of an education provider and instructor if they do not meet the requirements of the rule;
• Add a cutoff date by which instructors and providers will be notified that they can no longer teach prelicensing and postlicensing; and
• Include a prerequisite for an education provider or instructor to resume teaching prelicensing and postlicensing after limitations have been placed on their the ability to do so, specifically, that they must complete a Performance Improvement Plan and that an instructor must also take the New Instructor Seminar.

Report on Best Practices/Standards of Conduct for Responding to Brokers’ Noncriminal Misbehavior Outside of a Real Estate Transaction: Staff provided to the Commission a report on research concerning the best practices/standards of conduct for responding to brokers’ noncriminal misbehavior outside of a real estate transaction. Staff reviewed the Commission’s current law and rules including GS 93A-6(a)(8) and (10) and Rule A. 0120, and the manner in which other North Carolina occupational licensing boards and other real estate licensing boards around the country handle the issue. Staff reported that the current statutory authority and rules are broad and allow the Commission to investigate, discipline, and regulate licensees fairly.

General Update and BICUP Course Topics: Staff reviewed the results of the 2021-2022 NCREC Update Course Topic Survey. Material Facts, BIC Supervisory Responsibilities and Dual Agency were the top three topic categories in the survey, followed closely by Agency and Permits. Upon a motion from Ms. Chandler, the Commission voted to address material facts and dual agency in the GenUp and BICUP courses, to also include in the BICUP course a section on BIC Supervisory Responsibilities, and to integrate as many other topics as possible that relate to the selected topics, including a scenario about measuring and reporting square footage without reliance on tax records.

Report on License Numbers: As of December 1, 2021, there are 122,110 brokers and firms licensed by the Commission, as follows:

• Active Brokers 81,745
• Active Provisional Brokers 6,416
• Brokers-in-Charge 17,533
• BIC-Eligible Brokers 5,113
• Inactive Brokers 24,710
• Inactive Provisional Brokers 6,774
• Firms 15,378
• Limited Nonresident Commercial Brokers 277

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday January 19, 2022, and can be viewed via Zoom online video.

Commission Meeting of November 17, 2021

Pending Cases: The Commission entered into consent agreements to suspend 5 licenses, closed its case without action against 13 licensees, reprimanded 8 licensees, left 3 cases pending, and ordered hearings in cases involving 11 licensees.

License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 21; total approved: 17.

License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:

Legislative Report: The Commission reviewed the Legislative Report, noting bills that are currently pending in the General Assembly that relate to real estate brokerage, occupational licensing, or other matters of interest to the Commission. Staff noted that the Governor is about to receive a budget bill that he plans to sign which likely will conclude this session of the General Assembly.

Draft Rule Text: The Commission reviewed proposed amendments to Commission rules. Staff indicated that rule text would need to be adopted by the Commission by December 15 in order to publish any proposed rule changes for public comment in time for a July 1, 2022 effective date. The Commission approved the draft text of 21 NCAC 58A .1712 and 21 NCAC Subchapter 58B – Timeshares, as presented, for publication in the North Carolina Register. As to 21 NCAC 58A .0106, following discussion, the Commission directed staff to meet with the Regulatory Affairs Committee to further consider and refine the draft rule revisions.

Education Related Rulemaking: Staff reviewed a Memo Regarding Proposals for Rule Changes in Subchapter H. Staff advised the Commission that the total number of instructors as of the end of the first quarter who are at risk of losing certification is 18, down from 51 at the end of the license year (or 64 including the 13 who lost their approval after two years of teaching without meeting the 40% pass-rate threshold). Staff reported that the instructors teach a variety of types of courses and that the majority of instructors at risk have only had a few students test. The Commission was reminded that any changes to the text of the rules must be approved at the December meeting if the effective date will be July 1, 2022. The Commission was sent a proposal about a different way to score instructors and asked to bring this matter back to the Commission at a later date. Staff suggested having the Education Committee meet to discuss the proposal and the Commission concurred.

Report on How Other Real Estate Commissions Audit and Regulate Broker Trust Accounts: Staff provided a report on how other Real Estate Commissions audit and regulate trust accounts. Staff reported that the Commission’s rules are in accordance with the majority of states in requiring all funds collected to be held in a trust account controlled by a broker with no access by a third party. States generally conduct audits, with a minority, including Virginia, requiring brokers to perform self-audits.

Report on Trust Account Rules: Staff provided a report on trust account rules regarding commercial real estate brokerage. The Commission indicated that they would look further into the question of whether the Commission should consider adopting specific trust account rules for large commercial firms that would allow them to deposit money directly into the owner’s account rather than first depositing it in the broker’s trust account.

General Update and BICUP Course Topics: The Commission reviewed a list of possible 2022-2023 Update course topics based upon suggestions provided by Commission members, staff, licensees, educators, brokers and the Update Topics Task Force to date. Staff will send an email to the Commission asking for their top five topics from pages 1-5 of the exhibit. Staff will then compile a list and send out an electronic survey to members to rank the topics for the Update course. At the December meeting, Staff will present the results of the survey so that the Commission can make a final decision.

Larry A. Outlaw Excellence in Education Award: Staff presented the proposed criteria for the 2022 Larry A. Outlaw Excellence in Education Award and the nomination guidelines, noting that it was unchanged from the prior year. The Commission accepted the criteria and process for the award. Staff will begin seeking nominations in December.

Report on License Numbers: As of November 1, 2021, there are 121,371 brokers and firms licensed by the Commission, as follows:

• Active Brokers 81,175
• Active Provisional Brokers 6,289
• Brokers-in-Charge 17,484
• BIC-Eligible Brokers 5,050
• Inactive Brokers 24,634
• Inactive Provisional Brokers 6,690
• Firms 15,287
• Limited Nonresident Commercial Brokers 275

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday December 15, and can be viewed via Zoom online video.