Commission Meeting of May 20, 2020

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Pending Cases: The Commission entered into consent agreements to suspend three licenses; reprimanded one licensee; closed its case without action against five licensees; and ordered hearings in cases involving five 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: 6; total approved: 6.

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

Emergency Rule 21 NCAC 58G .0106: The Rules Review Commission approved the emergency rule 21 NCAC 58G .0106. As such, the moratorium on in-person delivery of courses will continue through June 30, 2020, and synchronous distance delivery of the Update Course will be permitted until August 1, 2020.

Adoption of Rules 21 NCAC 58G .0104 and .0105: The Commission voted to adopt temporary Rules 21 NCAC 58G .0104 and .0105. In light of the Commission’s vote, the rules will be submitted to the Rules Review Commission (RRC) for consideration at its June 18, 2020 meeting. If approved by RRC, the rules will be effective for 270 days or until repealed or replaced.

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

Progress of Renewals: Staff reported as of May 20, 2020, 28% of licensees had renewed their licenses as compared to 25% at the same time last year and 24% the year before.

Response to Objections to Rule 21 NCAC 58H .0401: The Commission reviewed objections filed by certain education providers with the Rules Review Commission (RRC) asking for the removal of all requirements for ARELLO/IDECC certification of distance courses from Rule H .0401, or in the alternative, a review by the Office of State Budget and Management as whether a fiscal note is required. After considering various options outlined by Staff in a May 19, 2020 memo, the Commission voted to remove the provisions addressing ARELLO/IDECC certification requirements from the rule, i.e., deleting sections (d)(6), (e)(8), and (i).

Deadline Extension for Synchronous Course Approval Applications: The Commission voted to extend the deadline for synchronous course approval applications to September 30, 2020.

Standards for Distance and Synchronous Course Approval Applications: The Commission approved draft standards for distance and synchronous courses and directed staff to begin drafting rules based upon the standards for the Commission’s consideration. Staff indicated that the goal will be to have draft rules for preliminary Commission consideration no later than its July meeting.

Housing Voucher Programs – Potential for Disparate Impact: Upon the motion of Mr. Lindsey, the Commission voted to include a limited discussion concerning housing voucher programs’ potential for disparate impact in the 2020-2021 Update Course in the section on Fair Housing.

Report on License Numbers: As of May 1, 2020, there are 114,251 brokers and firms licensed by the Commission, as follows:

• Active Brokers 74,889
• Active Provisional Brokers 7,229
• Brokers-in-Charge 17,508
• BIC-Eligible Brokers 4,251
• Inactive Brokers 25,015
• Inactive Provisional Brokers 7,984
• Firms 14,055
• Limited Nonresident Commercial Brokers 292

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, June 17, 2020, via Zoom online video.

Commission Meeting of April 15, 2020

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Pending Cases: The Commission entered into consent agreements to suspend four licenses; reprimanded one licensee; closed its case without action against one licensee; and ordered hearings in cases involving ten 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: 18; total approved: 15.

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

Annual Rulemaking: The Commission voted to adopt changes to the Annual Rulemaking Proposed Rules. For more information, visit “License Law and Rule Changes” on the Commission’s homepage at ncrec.gov.

Education Provider Rulemaking: The Commission considered proposed changes to the rules concerning education providers, including all comments received and staff recommendations. After discussion, the Commission voted to adopt the rules. For more information, visit “License Law and Rule Changes” on the Commission’s homepage at ncrec.gov.

Emergency Rulemaking: The Commission voted to adopt an emergency rule allowing synchronous distance learning to continue, in light of the public health emergency. Click here for more information and a copy of the changes.

Income/Expense Report for 2020 Real Estate Educators Conference: The Commission received the Income/Expense Report for the 2020 Real Estate Educators Conference scheduled for March 17, but canceled due to the ongoing public health emergency. Staff noted that refunds to all participants were nearly complete, and that the conference venue waived its fees.

Progress of 2020-21 Update Course Development: Staff reported that course development is progressing on schedule.

Emerging Trends: Staff shared a Time magazine article about discrimination in connection with housing voucher programs. Staff will explore including a discussion of this topic in the Update courses for next year.

Report on License Numbers: As of April 1st, 2020, there are 113,999 brokers and firms licensed by the Commission, as follows:

• Active Brokers 74,597
• Active Provisional Brokers 8,543
• Brokers-in-Charge 17,445
• BIC-Eligible Brokers 4,178
• Inactive Brokers 25,172
• Inactive Provisional Brokers 8,359
• Firms 13,939
• Limited Nonresident Commercial Brokers 291

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, May 20, 2020, via online video.

Commission Meeting of March 18, 2020

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Pending Cases: The Commission accepted the voluntary surrender of one license; entered into consent agreements to suspend five licenses; reprimanded two licensees; permanently revoked two licenses; closed its case without action against four licensees; and ordered hearings in cases involving two 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: 38; total approved: 22.

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

Educators Conference: Staff reported that although the Educators Conference was canceled in light of the public health emergency, substantive content would be provided to the educators in an online format in the coming weeks. In addition, the members of the Education and Licensing Division are working on a tutorial for synchronous learning techniques, tips, and tricks that they will make available to the real estate education providers.

Report on License Numbers: As of March 1st, 2020, there are 113,283 brokers and firms licensed by the Commission, as follows:

• Active Brokers 73,927
• Active Provisional Brokers 8,807
• Inactive Brokers 25,240
• Inactive Provisional Brokers 8,459
• Firms 13,827
• Brokers-in-Charge 17,376
• BIC-Eligible Brokers 4,112
• Limited Nonresident Commercial Brokers 289

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, April 15, 2020, via online video.

Commission Meeting of February 12, 2020

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Pending Cases: The Commission rejected one consent agreement; entered into consent agreements to suspend five licenses; closed its case without action against two licensees; and ordered hearings in cases involving ten 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: 30; total approved: 21.

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

Instructor Seminars Update: Staff reminded the Commission that before teaching the Update course in any license year, approved instructors must complete the Update Instructor Seminar. The Update Instructor Seminars have been offered throughout the fiscal year with the last one for this year scheduled for March 26, 2020. For the past two years, the Commission waived the registration fee for the course. Upon the motion of Mr. Lawing, the Commission voted to waive the fee for the course for FY2020-2021.

Emerging Trends: Miriam Baer, Commission Executive Director, advised the Commission that HUD has released new guidance on, “Assessing a Person’s Request to Have an Animal as a Reasonable Accommodation Under the Fair Housing Act.” Staff reviewed with the Commission the Pet Screening article regarding HUD’s guidance provided by Commission member Lawing.

Report on License Numbers: As of February 1st, 2019, there are 112,575 brokers and firms licensed by the Commission, as follows:

• Active Brokers 73,187
• Active Provisional Brokers 8,928
• Inactive Brokers 25,434
• Inactive Provisional Brokers 8,685
• Firms 13,672
• Brokers-in-Charge 17,260
• BIC-Eligible Brokers 4,068
• Limited Nonresident Commercial Brokers 282

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, March 18, 2020, at the Commission’s office in Raleigh, North Carolina and is open to the public.

Assessing a Person’s Request to Have an Animal as a Reasonable Accommodation Under the Fair Housing Act

HUD has released new guidance on Assessing a Person’s Request to Have an Animal as a Reasonable Accommodation Under the Fair Housing Act:

https://www.hud.gov/sites/dfiles/PA/documents/HUDAsstAnimalNC1-28-2020.pdf

Commission Meeting of January 8, 2020

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Pending Cases: The Commission permanently revoked one license; entered into consent agreements to suspend five licenses; closed its case without action of 2 licenses; and ordered hearings involving six licensees.

License Applications Involving Character Issues: Applications for licenses from persons who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately reviewed by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates reviewed: 34; total approved: 22.

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

North Carolina Community College System: The Commission voted to allocate up to $30,000 from the Commission’s Education and Recovery Fund to assist the Community College System in development of an online prelicense education course. Ms. Baer indicated that she would enter into a memorandum of understanding with the Community College System to that effect.

Larry A. Outlaw Excellence in Education Award Proposal Revision: Staff provided the Commission with revised proposed criteria for the Larry A. Outlaw Excellence in Education Award. Upon the motion of Staff, the Commission adopted the criteria. The criteria will be used to make the award at the spring 2020 Educators Conference.

Emerging Trends: Staff reviewed with the Commission an article from The Charlotte Observer concerning housing vouchers.

Report on License Numbers: As of December 1, 2019, there are 110,210 brokers and firms licensed by the Commission, as follows:

• Active Brokers 72,733
• Active Provisional Brokers 8,929
• Inactive Brokers 25,196
• Inactive Provisional Brokers 8,509
• Firms 13,547
• Brokers-in-Charge 17,202
• BIC-Eligible Brokers 4,003
• Limited Nonresident Commercial Brokers 278

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, February 12, 2020, at the Commission’s office in Raleigh, North Carolina and is open to the public.

Commission Meeting of December 11, 2019

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Pending Cases: The Commission accepted the permanent voluntary surrender of one license; suspended two licenses; entered into consent agreements to suspend two licenses and revoke one license; voted to deny a request to reconsider a Consent Agreement previously approved; extended the time within which a licensee must satisfy the conditions of the Consent Order previously entered into with the Commission; denied the issuance of one license; and ordered hearings involving two licensees.

License Applications Involving Character Issues: Applications for licenses from persons who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately reviewed by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews. Total candidates reviewed: 16; total approved: 6.

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

Proposed Text of Education Provider Rules: Staff reviewed with the Commission the proposed text of rules relating to education providers as necessitated by recent changes in the License Law, specifically, Rules H.0101, .0203 – .0208, .0210, .0303, .0305, and .0401. that were substantively changed since the last meeting. The Commission also received oral comments from Matt Davies on behalf of the North Carolina Real Estate Educators Association. Following a motion by Ms. O’Connor, the Commission voted to publish the proposed Rules for publication. Miriam Baer, Commission Executive Director, reminded attendees that formal comments should be submitted during the official comment period in order to be properly considered by the Commission.

Rules A .0305, .1705, and .1712: Staff reported that changes to Rules A .0305, .1705, and .1712 were approved by the Rules Review Commission and will go into effect January 1, 2020.

General Update and BICUP Courses: Staff reviewed with the Commission the list of possible Update course topics for fiscal year 2020-21 based on suggestions provided by Commission members and staff to date. The determined by the Commission members to have the highest priority include contract formation and related issues, cybersecurity, Fair Housing laws pertaining to service vs. assistance animals, and the NC DOT database of public/private streets and Subdivision roads. Additional topics prioritized for the Brokerin- Charge Update Course include Rule A. 0110 as it relates to supervision of provisional brokers on teams, and advertising. Upon the motion of Staff, the Commission authorized Ms. Hamlin and Ms. Crawford Heath to choose as many of the topics as needed to create the four-hour Update courses in accordance with the priorities established by the Commission.

Larry A. Outlaw Excellence in Education Award Criteria: Staff provided the Commission with proposed new criteria for the Larry A. Outlaw Excellence in Education Award. The Commission suggested changes in the outlined process; staff will revise the proposal accordingly and bring it back to the Commission at the January meeting.

Emerging Trends: Miriam Baer, Commission Executive Director, reviewed with the Commission a recent North Carolina Court of Appeals decision, Stevens v. Heller (COA19-344).

Report on License Numbers: The Commission was advised that as of December 1, 2019, there are 110,210 brokers and firms licensed by the Commission, as follows:

• Active Brokers 72,484
• Active Provisional Brokers 9,309
• Inactive Brokers 24,099
• Inactive Provisional Brokers 7,835
• Firms 13,352
• Brokers-in-Charge 17,118
• BIC-Eligible Brokers 3,963
• Limited Nonresident Commercial Brokers 275

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, January 8, 2020, at the Commission’s office in Raleigh, North Carolina and is open to the public.

Commission Meeting of November 13, 2019

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Pending Cases: The Commission accepted the voluntary surrender of one license; following a hearing, reprimanded one licensee; entered into consent agreements to suspend three licenses, reprimand three licensees, and revoke one license; closed one case without action; reconsidered and rescinded its previous decision to order a hearing involving one licensee and instead closed its case; and ordered hearings involving three licensees.

License Applications Involving Character Issues: Applications for licenses from persons who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately reviewed by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates reviewed: 46; total approved: 29.

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

Character Guidelines for Compliance with H770/S.L. 2019-91: Staff reviewed with the Commission draft character guidelines that comply with the new legal requirements and describe the applications staff will bring to the Commission for consideration. The Commission approved the new guidelines. Staff reported that to the extent the guidelines are relevant to license applicants, they will be posted on the Commission website.

Proposed Text of Education Provider Rules: Staff reviewed with the Commission in detail proposed text of rules relating to education providers as necessitated by recent changes in the Real Estate License Law. The Commission will vote in December on whether to begin the formal process of adoption and amendment of the rules as proposed or with changes.

North Carolina Community College System: Ms. Margaret Roberton, Associate Vice President, Continuing Education, NC Community Colleges, provided the Commission with information about North Carolina’s community college system and its workforce development and continuing education programs. The Commission discussed assisting the community colleges in the development of online Prelicensing and Postlicensing courses. The Commission was generally in favor of providing such assistance and asked staff to research the potential project and provide a proposal for consideration at a future meeting.

General Update and BICUP Courses: Staff reviewed with the Commission the list of possible update topics based on suggestions provided by Commission members and staff to date. Commission members were asked to communicate any other ideas for topics, and staff will add them to the list. The Commission will review all proposed topics and prioritize those deemed most important before making a final selection at the December
Commission meeting.

North Carolina Real Estate Educators Association Conference: Staff reported that several members of the Commission staff actively participated the fall NC Real Estate Educators Association (NC REEA) conference. Staff noted that the conference provided valuable information to the North Carolina’s real estate education community and recognized NC REEA President Travis Everette on organizing such a successful conference.

Emerging Trends: Miriam Baer, Commission Executive Director, reported on the recent decision by the National Association of REALTORS® (NAR) in support of a “clear cooperation policy” intended to limit its members’ use of “pocket listings.” Ms. Chandler reported that NAR also changed the frequency of its ethics training requirement. Ms. Baer also reported on a meeting at the NAR conference between representatives of the North Carolina REALTORS® and Airbnb.

Report on License Numbers: The Commission was advised that as of October 1, 2019, there are 108,434 brokers and firms licensed by the Commission, as follows:

• Active Brokers 72,484
• Active Provisional Brokers 9,309
• Inactive Brokers 24,099
• Inactive Provisional Brokers 7,835
• Firms 13,352
• Brokers-in-Charge 17,118
• BIC-Eligible Brokers 3,963
• Limited Nonresident Commercial Brokers 275

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, December 11, 2019, at Raleigh, North Carolina and is open to the public.

Commission Meeting of October 16, 2019

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Pending Cases: The Commission accepted the voluntary surrender of three licenses; following a hearing, reprimanded one licensee; entered into consent agreements to suspend four licenses and reprimand one licensee; rejected a proposed consent agreement involving one licensee; authorized injunctive relief if necessary involving one individual; reconsidered and rescinded its previous decision to order a hearing involving two licensees and instead closed its case; and ordered hearings involving 24 licensees.

License Applications Involving Character Issues: Applications for licenses from persons who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately reviewed by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews. Total candidates reviewed: 36; total approved: 26.

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

Public Comments and Rule Text: Staff reviewed with the Commission the text of proposed amendments to Commission rules and the Commission approved the rules for publication in the North Carolina Register.

General Update and BICUP Courses: Staff reviewed with the Commission the list of possible Update topics based on suggestions provided by Commission members and staff to date. Staff asked Commission members to communicate any other ideas for topics to add to the list. The Commission will review all proposed topics and prioritize those deemed most important before making a final selection in the coming months.

Emerging Trends: Commission Member Cindy S. Chandler reviewed with the Commission an article from Inman News outlining Bright MLS’s new rule addressing pocket listings.

Report on License Numbers: The Commission was advised that as of October 1, 2019, there are 108,434 brokers and firms licensed by the Commission, as follows:

• Active Brokers 71,545
• Active Provisional Brokers 9,431
• Inactive Brokers 23,471
• Inactive Provisional Brokers 7,362
• Inactive Provisional Brokers 7,362
• Brokers-in-Charge 17,011
• BIC-Eligible Brokers 3,812
• Limited Nonresident Commercial Brokers 262

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, November 13, 2019, at Raleigh, North Carolina and is open to the public.

Commission Meeting of September 11, 2019

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Commission Meeting of September 11, 2019

Pending Cases: The Commission, following two hearings. revoked one license and, in the second case, adjourned to deliberate with a decision to be communicated at a later date; entered into consent agreements to suspend three licenses and reprimand five licensees; rejected a proposed consent agreement involving one licensee; extended the time within which a licensee must satisfy the conditions of the Consent Order previously entered into with the Commission; and ordered hearings involving 12 licensees.

License Applications Involving Character Issues: Applications for licenses from persons who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately reviewed by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews. Total candidates reviewed: 18; total approved: 15.

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

Proposed Subject Matter for Rulemaking: Staff reviewed with the Commission a summary of proposed subject matter for rulemaking. The Commission directed the staff to proceed with the rulemaking process to clarify authorization of dual and designated agency and to proceed with rulemaking as to all the other topics described except the proposed change to Rule A .0104 concerning conflicts of interest by property managers.

Update on 12-hour Broker-in-Charge Course Development: Staff noted that the last in-person, classroom-based BIC Courses are this month and that on October 1 the new blended learning solution begins. The new requirements include completion of an 8-hour online component, followed by a four-hour “classroom” component and, either a live, online synchronous learning environment or in-person at the McKimmon Center in Raleigh.

Emerging Trends: Commission Member Cindy S. Chandler reviewed with the Commission an article from Inman News entitled, Keller Williams advises charging 0% to clients who sell to Offerpad.

Report on License Numbers: The Commission was advised that as of September 1, 2019, there are 108,429 brokers and firms licensed by the Commission, as follows:

• Active Brokers 70,950
• Active Provisional Brokers 9,475
• Inactive Brokers 23,272
• Inactive Provisional Brokers 7,163
• Firms 13,068
• Brokers-in-Charge 16,929
• BIC-Eligible Brokers 3,712
• Limited Nonresident Commercial Brokers 259

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, October 16, 2019, at Raleigh, North Carolina and is open to the public.