Commission Meeting of November 16, 2022

Pending Cases: The Commission entered into consent agreements to suspend 10 licenses, left cases pending involving 2 licensees, reprimanded 2 licenses, approved the issuance of 1 license on provisional status, continued consideration in a case involving 2 licensees, closed cases without action against 5 licensees, and ordered hearings in cases involving 22 licensees. Following a hearing, the Commission permanently revoked 1license.

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: 8.

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

Draft Rule Text : Staff reviewed with the Commission the text for proposed amendments to Commission rules. Staff indicated that rule text would need to be adopted by the Commission by January 18 in order to publish any proposed rule changes for public comment in time for a July 1, 2022 effective date.

General Update and BICUP Course Topics: Staff reviewed with the Commission the list of possible 2023-2024 Update course topics based upon suggestions provided by Commission members, staff, licensees, educators, and the Education Advisory Committee to date. The Commission suggested adding the updated Diversity Equity and Inclusion (DEI) Statement in the course material, and always including a topic related to DEI and/or Fair Housing, adding more information about permits under material facts or renovations as staff determines useful, and in the BICUP, including information about the 14-day requirement to respond to Letters of Inquiry from the Commission. The Commission suggested reducing the number of the Top Frequently Asked Questions from Licensees and the Top Complaints to better assure there is sufficient time for the content.

Larry A. Outlaw Excellence in Education Award: The Director of Education and Licensing presented the proposed criteria for the 2023 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.

Educators Conference: The Director of Education and Licensing reviewed with the Commission the proposed budget and agenda for the Educators Conference that is scheduled for on March 21, 2023. The Commission accepted the proposed budget and agenda for the Educators Conference, except that the Commission reduced the registration fee to $49.00.

Report on License Numbers: As of November 1, 2022, there are 123,707 brokers and firms licensed by the Commission, as follows:

• Active Brokers 82,263
• Active Provisional Brokers 5,792
• Brokers-in-Charge 17,612
• BIC-Eligible Brokers 5,621
• Inactive Brokers 24,960
• Inactive Provisional Brokers 7,161
• Firms 16,212
• Limited Nonresident Commercial Brokers 272

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday December 14, 2022, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.

Commission Meeting of October 12, 2022

Pending Cases: The Commission voted to extend the deadline to satisfy conditions in a case involving 1 licensee, left cases pending involving 3 licensees, approved the issuance of 1 license on provisional status, denied the motion for extension of time in a case involving 1 licensee, and ordered hearings in cases involving 17 licensees. Following a hearing, the Commission permanently revoked 1 license.

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: 7; total approved: 4.

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

Report of the Law & Policy Committee: The Commission reported that the Law & Policy Committee met on Friday, September 30, 2022, and provided a brief overview of the meeting.

General Update and BICUP Course Topics: Staff reviewed with the Commission the list of possible 2023-2024 Update course topics based upon suggestions provided by Commission members, staff, licensees, educators, and the Education Advisory Committee to date. The Commission would like there to be information in the Update courses for BICs that do not oversee other agents and suggested adding equity issues and fair housing to the list of topics. Staff stated that they would present a revised exhibit in
November with a list of topics, and will then send a survey to members to vote on which topics they would like for the Update courses. In December, the Commission will vote on the final topics. The Commission stated that staff should consider expanding topics to include commercial real estate issues since the Update is geared toward the residential broker. The Commission commended staff on the great job they did working with the Education Advisory Committee.

Report on License Numbers: As of October 1, 2022, there are 122,951 brokers and firms licensed by the Commission, as follows:

• Active Brokers 81,853
• Active Provisional Brokers 5,868
• Brokers-in-Charge 17,515
• BIC-Eligible Brokers 5,581
• Inactive Brokers 24,752
• Inactive Provisional Brokers 6,958
• Firms 16,076
• Limited Nonresident Commercial Brokers 270

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

Commission Meeting of September 14, 2022

Pending Cases: The Commission entered into consent agreements to suspend 5 licenses, closed cases without action against 2 licensees, permanently revoked 1 license, accepted the voluntary surrender of 3 licenses, denied the motion for extension of time in a case involving 1 licensee, and ordered hearings in cases involving 21 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: 11; total approved: 4.

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.

Annual Rulemaking Proposals: Staff reviewed with the Commission proposed rule topics for consideration in connection with its annual rulemaking. They indicated that rule text would need to be adopted by the Commission by December in order to publish any proposed rule changes for public comment in time for a July 1 effective date.

The Commission made the following recommendations regarding the presented rule changes:

Spring Educators Conference: The Director of Education and Licensing reported that the Spring Educators Conference is scheduled for Tuesday, March 21, 2023, at the McKimmon Center at NC State University in Raleigh. Staff anticipates attendance by 300-350 educators. The Director will share this information to those attending the upcoming NCREEA conference.

August Education Town Hall: The Director of Education and Licensing provided a report on feedback from the August 22, 2022, Education Town Hall. The Director noted that it was a positive, professional event allowing participants to share comments and concerns.

Education Committee Meeting: The Director of Education and Licensing stated he met with the Education Committee and the Commission. The Committee reviewed the new license exam reports for use by education providers; these reports provide real-time data regarding students’ performance, as opposed to the quarterly reports previously provided. The Director and Commission commended the IT Staff on their work on the license exam reports. The reports will be posted on the Commission website immediately. The Director reported also that the Education Committee selected members of the Education Advisory Committee.

Report on License Numbers: As of September 1, 2022, there are 121,949 brokers and firms licensed by the Commission, as follows:

• Active Brokers 80,989
• Active Provisional Brokers 5,724
• Brokers-in-Charge 17,406
• BIC-Eligible Brokers 5,547
• Inactive Brokers 24,763
• Inactive Provisional Brokers 6,853
• Firms 15,930
• Limited Nonresident Commercial Brokers 267

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday October 12, 2022, and can be viewed via Zoom online video.

Commission Meeting of August 17, 2022

Pending Cases: The Commission entered into consent agreements to suspend 8 licenses, closed cases without action against 2 licensees, permanently revoked 1 license, accepted the voluntary surrender of 3 licenses, authorized Regulatory Affairs Division to seek injunctive relief in a case involving 1 licensee, and ordered hearings in cases involving 17 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: 10; total approved: 6.

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.

Wire Fraud Seminars and Related Educational Materials: The Director of the Regulatory Affairs Division reported that prior to the COVID-19 outbreak, the Regulatory Affairs staff conducted a series of seminars on wire fraud around the State in cooperation with the State Bar and Investors Title Insurance Company, and that Investors Title has requested that they, the Commission and State Bar conduct another series of
seminar in the coming months. The original seminars were very well attended and received. The Director noted that wire fraud remains a problem area for real estate licensees, attorneys, and consumers. Staff will be working on consumer education pieces about wire fraud when the Consumer Resource Officer is hired. The Commission asked that rental scams be included in consumer education. The Director recommended that staff partner with the State Bar and Investors Title Insurance and begin offering the seminars again starting in late winter, or early spring.

FY2021-22 CE Student Survey: The Director of Education and Licensing reviewed with the Commission the results of the CE student surveys conducted throughout the year. The Director reported that the surveys were updated and modernized by their predecessor to yield better responses, and that the number of surveys returned doubled from 2021.

Education Committee Meeting: The Director of Education and Licensing requested that the Education Committee meet to provide guidance on the Education Advisory Committee, and the rollout of the new License Examination Performance Records.

Report on License Numbers: As of August 1, 2022, there are 120,915 brokers and firms licensed by the Commission, as follows:

• Active Brokers 79,740
• Active Provisional Brokers 5,499
• Brokers-in-Charge 17,238
• BIC-Eligible Brokers 5,501
• Inactive Brokers 25,179
• Inactive Provisional Brokers 6,920
• Firms 15,737
• Limited Nonresident Commercial Brokers 259

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday September 14, 2022, and can be viewed via Zoom online video.

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.