Commission Meeting of April 21, 2021

Pending Cases: The Commission entered into consent agreements to suspend 8 licenses, closed its case without action against 5 licensees, reprimanded 1 licensee, accepted the voluntary surrender of 3 licenses, voted to grant extensions of time in cases involving 2 licensees, authorized the Regulatory Affairs Division to seek injunctive relief against two unlicensed individuals; 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: 25; 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. A representative of the American Resort Development Association (ARDA), gave a progress update on the Timeshare Act. Staff reported that there are a number of co-sponsors on the bill.

Home Inspectors’ Draft Bill: The Commission reviewed a draft bill (not yet introduced) that would restrict the Home Inspectors Board from prohibiting home inspectors from providing low monetary value meals and beverages to real estate licensees. The Commission voted to remain neutral on the bill at this time.

2021 NCREC Educators Conference: Staff provided an overview of the 2021 NCREC Educators Conference, held via Zoom on Tuesday, March 23 from 8:00 a.m. to 4:00 p.m.
Attendance was tracked to ensure educators were eligible for instructor development credit. During the event, the Commission presented an award posthumously to Garth Dunklin as the first recipient of the North Carolina Real Estate Commission Industry Champion. In addition, George Bell was the named the recipient of the 2021 Larry A. Outlaw Excellence in Education Award. The Educators Conference is now available on the Commission’s website as a distance learning course that allows educators to receive their education development credit after the conference.

NCCU MBA Program: The Commission received an overview of the expansion of NCCU’s MBA program with a concentration in commercial real estate. The Commission asked staff to investigate the possibility of the Commission donating, or supporting this program in some way. The Chair appointed a Committee to investigate.

Report on License Numbers: As of April 1, 2020, there are 120,985 brokers and firms licensed by the Commission, as follows:

• Active Brokers 80,004
• Active Provisional Brokers 5,139
• Brokers-in-Charge 17,636
• BIC-Eligible Brokers 4,968
• Inactive Brokers 25,591
• Inactive Provisional Brokers 7,334
• Firms 15,100
• Limited Nonresident Commercial Brokers 290

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, May 19, 2021, via Zoom online video.

Commission Meeting of March 17, 2021

Pending Cases: The Commission entered into consent agreements to suspend 8 licenses; closed its case without action against 4 licensees; reprimanded 3 licensees; accepted the voluntary surrender of 6 licenses; accepted the permanent voluntary surrender of one license; left 2 cases pending; voted to extend to a later date cases involving 4 licenses; and ordered hearings in cases involving 16 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: 23; total approved: 15.

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. It was also reported that Representative Julia Howard will sponsor the Timeshare Act amendments, and that Representative Hastings and other legislators will co-sponsor the bill. Ms. Thoren also reported that the removal of the bond requirement for education providers will be included in that legislative package.

Rule Text Adoption: The Commission reviewed text for proposed rule changes with an effective date of July 1, 2021, and adopted a variety of changes. Those changes are available on the Commission’s website.

Dual Agency Research: Staff reported on the results of the Dual/Designated Agency Survey of Brokers-in-Charge (BICs). It was noted that the survey indicates that 80% of BICs responding supervise twenty or fewer affiliated agents and that 75% reported that their company has only one office. As to dual agency, the survey indicates that 87% of companies permit dual agency and that of those that practice dual agency, 65% practice designated (54% of all firms). Most firms allow dual agency within offices and teams, and allow individual brokers to practice dual agency. The Commission noted that the data collected will help inform their discussion of broker supervision and span of control.

2021 NCREC Educators Conference: Staff provided an overview of the 2021 NCREC Educators Conference which will be held via Zoom on Tuesday, March 23 from 8:00 a.m. to 4:00 p.m. With the Commission’s new learning management system, the Educators Conference is able to be both a virtual event and a distance learning course that allows for educators to receive their education development credit after the conference. The distance course can be taken in sections.

Emerging Trends: Staff reported on agents with one firm “babysitting” listings for agents with another firm. The Commission discussed the risk to the seller that the “babysitter” might not act in the seller’s best interest. Staff opined that the seller should be made aware of another agent hosting the open house and that the agent hosting the open house would likely be viewed in the courts as the seller’s subagent. Staff recommended having Commission staff write an e-Bulletin article to address this topic outlining the issues that the seller, brokers, and their firms should consider before undertaking a “babysitting” arrangement. Staff also stated that they would consider whether to include this topic in a future rulemaking.
The Commission reviewed the use of “love letters” included with offers. It was noted that buyers are sometimes encouraged to include a letter to the seller with their offer on why they love the house and why the seller should choose them. Often, the letters include information that may create a fair housing violation, including information on the buyer’s race, sex, religion, national origin, and/or other protected categories. The Commission directed staff to draft an e-Bulletin article and issue an opinion discouraging the use of love letters.
The Commission discussed robo calls from unlicensed salespersons to buy property. The Commission indicated that they did not believe it was a Commission issue.
The Commission discussed ways to communicate to both consumers and the brokerage community on topics of interest beyond the monthly e-Bulletin, including on the Commission’s YouTube channel. Staff noted that they would likely propose additional consumer and broker outreach projects in connection with the budget planning for FY 2021-2022 and would discuss these with the Finance Committee.

Report on License Numbers: As of March 1, 2020, there are 119,670 brokers and firms licensed by the Commission, as follows:

• Active Brokers 79,028
• Active Provisional Brokers 5,368
• Brokers-in-Charge 17,532
• BIC-Eligible Brokers 4,883
• Inactive Brokers 25,437
• Inactive Provisional Brokers 7,348
• Firms 14,922
• Limited Nonresident Commercial Brokers 283

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, April 21, 2021, via Zoom online video.

Commission Meeting of February 17, 2021

Pending Cases: The Commission entered into consent agreements to suspend 3 licenses; closed its case without action against 2 licensees; reprimanded 4 licensees; accepted the voluntary surrender of 4 licenses; approved the issuance of one license on provisional status; authorized the Regulatory Affairs Division to seek injunctive relief against two unlicensed individuals; and ordered hearings in cases involving 13 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: 28; total approved: 19.

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

Investment Policy: The Commission reviewed and adopted a revised Investment Policy addressing the need to continue to use investment vehicles with FDIC insurance or collateralization of funds in NC pooling method financial institutions in accordance with the directives of the NC Department of State treasurer, and the use of target goals and laddering to ensure access to funds when needed and diversity of investments including
Minority Depository Institutions.

License Application Refiling Fees: The Commission discussed possible changes in how refiling fees are charged and collected, including legal, technical, and financial impacts. The Commission will revisit the issue after data is available on the reinstitution of end-of-course prelicensing examinations.

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.

Dual Agency Research Report: Staff reported that they are surveying the ARELLO jurisdictions concerning recent or expected legislation relating to dual agency and/or transaction brokerage, reviewing the most recent NAR issues tracker on each state’s approach to agency relationships, developing a survey instrument directed to North Carolina brokers in charge about their handling of agency in their companies, offices, and teams, reviewing the position of the Consumer Federation of America, and reviewing other current literature on the topic. Staff will report on their progress at the March Commission.

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, 2020, there are 118,617 brokers and firms licensed by the Commission, as follows:

• Active Brokers 77,995
• Active Provisional Brokers 5,046
• Brokers-in-Charge 17,447
• BIC-Eligible Brokers 4,811
• Inactive Brokers 25,548
• Inactive Provisional Brokers 7,363
• Firms 14,795
• Limited Nonresident Commercial Brokers 279

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, March 17, 2021, via Zoom online video.

Commission Meeting of January 20, 2021

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

Pending Cases: The Commission entered into consent agreements to suspend 4 licenses; closed its case without action against 4 licensees; reprimanded 5 licensees; accepted the voluntary surrender of 2 licenses; left 2 cases pending; authorized the Regulatory Affairs Division to seek injunctive relief of one licensee; and ordered hearings in cases involving
5 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: 27; total approved: 22.

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

Report on RRC Approval of the Distance Education Rules: The Rules Review Commission approved the Commission’s proposed amendments to distance education rules shortly after the Commission’s December meeting with only minor technical changes.

Review Draft Working with Real Estate Agents Disclosure Form: The Commission reviewed final revisions to a draft two-page disclosure form that would replace the tearoff panel in the existing Working with Real Estate Agents brochure. The Commission approved the revised Working with Real Estate Agents Disclosure form, the form to be rolled out in the spring and required in lieu of the brochure beginning July 1, 2021.

Report on Possible NC Timeshare Act Revisions: Staff reported that they had met the prior week with representatives of the North Carolina Attorney General’s Office, representatives of ARDA, and the former Attorney General for Rhode Island to review the proposed modernization of the NC Timeshare Act. Staff anticipate receiving feedback including a possible revision to prohibit timeshare exit companies from receiving advance payments.

Report on Dual Agency Complaints: The Commission reviewed a report on complaints received from January 1, 2018 through December 31, 2019 where agency representation was noted as a primary issue. There were 4300 total cases in this timeframe, with 572 cases (13%) involving an agency issue. Of that number, 39 cases (less than 1% of the total) involved dual agency and 20 cases indicated a violation relating to dual agency (less than one half percent of the total). Two of the 20 cases resulted in disciplinary action.

The Commission requested that staff gather more detailed information regarding trends around dual agency legislation nationwide.

Review License Examination Question Development Process: Staff provided a report on the real estate license examination results. The Commission discussed the application fee provided in the law and whether the Commission could give license applicants two or more opportunities to take the license examination for a one time application fee of $100.
Staff will provide further information at either the February or March Commission meeting.

Report on License Numbers: As of January 1, 2020, there are 117,164 brokers and firms licensed by the Commission, as follows:

• Active Brokers 77,108
• Active Provisional Brokers 4,700
• Brokers-in-Charge 17,376
• BIC-Eligible Brokers 4,732
• Inactive Brokers 25,375
• Inactive Provisional Brokers 7,136
• Firms 14,403
• Limited Nonresident Commercial Brokers 278

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, February 17, 2021, via Zoom online video.

Commission Meeting of December 16, 2020

Pending Cases: The Commission entered into consent agreements to suspend 3 licenses; closed its case without action against 2 licensees; reprimanded 2 licensees; accepted the voluntary surrender of 2 licenses; left one case pending; voted to extend a case involving one licensee and ordered hearings in cases involving 7 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: 20; total approved: 12.

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

Report on Approaches to Dual Agency and Transaction Brokerage: The Commission reviewed data on states’ approaches to dual agency and transaction brokerage. They requested that staff provide information on the number of complaints that the Commission has received over the past two to three years concerning dual agency transactions where a consumer complains they were not properly represented. The requested information will be provided no later than the February 17, 2021 Commission
meeting.

Review Draft Working with Real Estate Agents Disclosure Form: The Commission reviewed revisions to a draft two-page disclosure form, which if approved, could be used by licensees to satisfy their agency disclosure requirements. Staff reported on feedback provided by the NC REALTORS® Forms Committee. If the Commission adopts the disclosure, July 1, 2021 is the tentative roll out date. The Commission requested that under the Dual Agency section of the disclosure a statement be added stating that when the consumer agrees to dual agency, the agent cannot help either side gain an advantage over the other.

Report on Possible NC Timeshare Act Revisions: Staff reported speaking to the North Carolina Attorney General’s office to arrange a time to discuss and receive feedback on the draft legislative changes to the Timeshare Act.

Report on Input on Rules Relating to Racial Equity: Staff shared suggested language received from the Director of the NC Justice Center’s Consumer, Housing & Energy Project for the draft rules relating to racial equity. The Commission requested that staff work on integrating language to provide the Commission authority to act when a broker promotes their status as a real estate broker in connection with the prohibited conduct. Staff will update the language and consult with the Rules Review Commission to see if the language can be changed as part of the rulemaking process.

General Update and BICUP Courses: The Commission reviewed the results of the 2021-2022 NCREC Update Course Topic Survey of the Commission members. Broker’s Fiduciary Duties, the Working with Real Estate Agents Brochure and Racial Equity were the top three topic categories in the survey, followed closely by Permits: Broker Responsibilities. Mr. Lawing requested that the topic “Permits: Broker Responsibilities” be added to the course if time permits. The Commission also requested that both “Implicit Basis and Fair Housing: Disparate Impact” be included in the Racial Equity section of the Update course. The Commission authorized use of as many of the course topics as time permits for the 2021-2022 Update course in the order of priority indicated by the survey results.

Review License Examination Question Development Process: Staff provided a report on the nine-step process for development of National and State license examination questions.

Report on License Numbers: As of November 1, 2020, there are 115,215 brokers and firms licensed by the Commission, as follows:

• Active Brokers 76,240
• Active Provisional Brokers 4,689
• Brokers-in-Charge 17,279
• BIC-Eligible Brokers 4,675
• Inactive Brokers 24,478
• Inactive Provisional Brokers 6,650
• Firms 14,223
• Limited Nonresident Commercial Brokers 274

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, January 20, 2021, via Zoom online video.

Commission Meeting of November 18, 2020

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

Pending Cases: The Commission entered into consent agreements to suspend 6 licenses; closed its case without action against 6 licensees; reprimanded 6 licensees; accepted the voluntary surrender of one license; voted to extend a case involving one licensee and ordered hearings in cases involving 7 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: 26; total approved: 20.

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

Proposed Rule Text for Annual Rulemaking: The Commission reviewed proposed amendments to the Timeshare Act which staff drafted with input from the American Resort Development Association (ARDA). ARDA representatives provided additional information on the proposed revisions. The next step is to seek input from the North Carolina Attorney General’s office. The Commission approved staff continuing to pursue the legislative changes to the Timeshare Act to better protect consumers.

Review Draft Working with Real Estate Agents Disclosure Form: The Commission reviewed a draft two-page disclosure form, which if approved, could be used by licensees to satisfy their agency disclosure requirements. They members made various suggestions, including: that the title of the form include the word, “disclosure”, that staff consider whether 1 an alternate version of the disclosure should be created for commercial use, 2
dual agency and firms with multiple offices should be addressed in more depth, and 3 it would be appropriate to point out that a broker representing the seller may not be the listing agent, that the form address what constitutes “confidential” information. They also suggested that the form also note that its purpose is for the consumer’s protection and that the consumer’s signature indicates that they received the form and understood its contents. As to unrepresented buyers, more clarity may be needed depending upon whether the buyer is working with a listing agent or a seller’s subagent. Staff will modify the form and ask the NC REALTORS Forms Committee for input at its December meeting.

Report on U.S. H.R. 8680 Legislation: The Commission was apprised of U.S. H.R. 8680, proposed federal legislation which would provide immunity to occupational licensing boards and their members in certain circumstances.

General Update and BICUP Courses: The Commission reviewed the list of possible 2021-2022 Update course topics based upon suggestions provided by Commission members, and staff to date. The Commission members asked that BIC responsibility for broker supervision be added to the BICUP course topic options. The Commission requested that the staff allow enough time in the completed course for interaction during the course. The Commission members will be sent a brief survey prior to the December meeting to rank the course topics.

Report on Annual CE Requirements of Licensing Boards: The Commission reviewed the process of changing the law should the Commission desire to increase CE requirements. The Commission will revisit the topic at its January 2021 meeting and discuss whether to consider requesting a change in the law.

NAR Code of Ethics Amendment Addressing Hate Speech and Discrimination: The Commission discussed the recent decision of the National Association of REALTORS (NAR) to change its Code of Ethics expanding prohibitions against hate speech and discrimination when it occurs outside the context of a real estate transaction. Associations will now be required to inform their state licensing board when a Realtor member is found “in violation of the Code in instances involving real estate related activities and transactions where there is a reason to believe the public trust may have been violated”. This change was effective Friday, November 13, 2020.

Alternatives to Dual Agency: Staff is currently gathering data on how other states are handling dual agency, transaction brokerage, and facilitation. This data is scheduled for discussion at the December meeting.

Report on License Numbers: As of November 1, 2020, there are 114,026 brokers and firms licensed by the Commission, as follows:

• Active Brokers 75,275
• Active Provisional Brokers 4,417
• Brokers-in-Charge 17,209
• BIC-Eligible Brokers 4,585
• Inactive Brokers 24,368
• Inactive Provisional Brokers 6,542
• Firms 14,110
• Limited Nonresident Commercial Brokers 273

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, December 16, 2020, via Zoom online video.

Commission Meeting of October 21, 2020

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

Pending Cases: The Commission entered into consent agreements to suspend 6 licenses; closed its case without action against 6 licensees; revoked one license; permanently revoked one license; reprimanded 2 licensees; accepted the voluntary surrender of one license; left one case pending; voted to extend a case involving one licensee; continued the consideration of one licensee and ordered hearings in cases involving 7 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: 28; total approved: 20.

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

Proposed Rule Text for Annual Rulemaking: The Commission reviewed the text for proposed rules in connection with its annual rulemaking and voted to proceed with publication of the rule text for public comments.

Final Report on Continuing Education (CE) Course Completion: The Commission was advised that 2090 active brokers failed to complete their CE requirements before the end of the extended deadline for the 2019-2020 license year, down from 7035 the month prior. Of those brokers who did not complete their CE on time, only 182 were brokers-in-charge, and only 34 of the brokers-in-charge had affiliated licensees. These numbers are slightly lower than the numbers for the 2018-2019 fiscal year.

General Update and BICUP Courses: The Commission reviewed the list of possible 2021-2022 Update course topics based upon suggestions provided by Commission members, staff, licensees and educators to date. The Commission members were asked to communicate any other ideas for topics so that they can be added to the list for consideration. The Commission will review all proposed topics and prioritize those deemed
most important in the coming months, before making a final selection at the January 2021 meeting.

Report on License Numbers: As of September 1, 2020, there are 111,260 brokers and firms licensed by the Commission, as follows:

• Active Brokers 76,444
• Active Provisional Brokers 4,388
• Brokers-in-Charge 17,265
• BIC-Eligible Brokers 4,628
• Inactive Brokers 22,023
• Inactive Provisional Brokers 6,100
• Firms 13,949
• Limited Nonresident Commercial Brokers 270

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, November 18, 2020, via Zoom online video.

Commission Meeting of September 16, 2020

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

Pending Cases: The Commission entered into consent agreements to suspend 3 licenses; closed its case without action against 6 licensees; revoked 4 licenses; referred one case back to staff; and ordered hearings in cases involving 10 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: 26; total approved: 22.

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

Proposed Rule Text for Annual Rulemaking: The Commission reviewed the text for proposed rules in connection with its annual rulemaking. The Commission suggested various adjustments which will be reflected in a new draft to be presented at the October Commission meeting. At that time, the Commission will vote on whether to proceed with publication of the rule text for public comments.

Report on Continuing Education (CE) Course Completion: The Commission reviewed a report outlining the number of active brokers who have not yet taken their CE for the 2019-2020 fiscal year, the extended deadline for which is September 30, 2020. It was noted that since the date of the report, 7035 brokers remain CE deficient. Of those, 3028 need one elective and 4007 need two electives, 1714 are brokers-in-charge or broker-incharge eligible, including 376 brokers-in-charge with affiliated licensees. The Commission adopted language to be included in licensee requests for extensions of time to complete their CE beyond the September 30, 2020 deadline. The Commission also recommended adding a countdown clock to the Commission’s website showing the number of days left to complete CE.

Report on License Numbers: As of September 1, 2020, there are 111,260 brokers and firms licensed by the Commission, as follows:

• Active Brokers 75,391
• Active Provisional Brokers 4,278
• Brokers-in-Charge 17,173
• BIC-Eligible Brokers 4,604
• Inactive Brokers 21,814
• Inactive Provisional Brokers 5,948
• Firms 13,791
• Limited Nonresident Commercial Brokers 264

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, October 21, 2020, via Zoom online video.

Commission Meeting of August 12, 2020

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

Pending Cases: The Commission entered into consent agreements to suspend three licenses; closed its case without action against one licensee; accepted the permanent voluntary surrender of one license; and ordered hearings in cases involving four 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: 33; total approved: 27.

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

Proposed Rule Text for Distance and Synchronous Learning Standards: The Commission reviewed the proposed rule text for distance and synchronous learning standards. Changes had been made since the Commission’s July 2020 meeting, when the draft rule text was initially provided to the Commission for review. The Commission voted to publish the draft text in the North Carolina Register at the appropriate time.

Fiscal Note: The Commission reviewed a fiscal note analysis for the proposed rules concerning distance and synchronous learning standards. The Commission was advised that a fiscal note must be filed when the anticipated fiscal impact of the rule changes exceeds $1,000,000.00. It was noted that even with an analysis including generous cost estimates, the fiscal impact of the rule changes do not reach the threshold. It was pointed
out to the Commission that the rule changes are primarily adjustments to existing rules, and that only the cost of the adjustment, not the entire rule, must be considered. The Commission was advised that if the note is attached to the rulemaking, it will be reviewed by the North Carolina Office of State Budget and Management in due course and that the timeframe for the review is uncertain. If the fiscal note is not attached, the rulemaking can proceed as scheduled without delay, but the rule is subject to an objection later based upon the lack of a fiscal note, and any such objection would also delay the process. The Commission voted to proceed with the rulemaking process without attaching a fiscal note.

Federal Background Checks: The Commission reviewed research on other states’ use of federal background checks and consideration of convictions for driving while impaired (aka driving under the influence) in connection with licensing.

Legislative Report: The Commission reviewed the Legislative Report specifically, Senate Bill 866/S.L. 2020-39, and congratulated Mr. Thomas Lawing and Ms. Cindy Chandler on their reappointments to the Commission.

Report on Instructor and License Examination Performance: Staff reported on instructor and school (now education provider) license examination performance over the prior fiscal year, including the probable impact of COVID-19 in the fourth quarter. The Commission voted to publish on its website the performance data for the entire fiscal year combined, and for the first three quarters of the fiscal year.

CE Deadline: At the request of the NC Real Estate Educators Association, the Commission again considered whether to extend the CE deadline beyond the current extension of September 30, 2020. The Commission voted to keep the deadline of September 30, 2020, and asked staff to propose at the September meeting parameters for an accommodation for those licensees who might need an extension.

Report on License Numbers: As of August 1, 2020, there are 110,125 brokers and firms licensed by the Commission, as follows:

• Active Brokers 74,386
• Active Provisional Brokers 4,015
• Brokers-in-Charge 17,080
• BIC-Eligible Brokers 4,530
• Inactive Brokers 21,800
• Inactive Provisional Brokers 5,922
• Firms 13,681
• Limited Nonresident Commercial Brokers 258

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, September 16, 2020, via Zoom online video.

Commission Meeting of July 15, 2020

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

Pending Cases: The Commission entered into consent agreements to suspend three licenses; reprimanded five licensees; closed its case without action against two licensees; permanently revoked one license; 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: 29; total approved: 18.

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. While General Assembly is not currently in session, it plans to reconvene in early September. Its committees are meeting in the meantime; staff will continue to monitor the progress of bills of interest.

Proposed Rule Text for Distance and Synchronous Learning Standards: The Commission reviewed the text for proposed amendments to Commission rules setting out distance and synchronous learning standards. The draft rules will be placed on the Commission’s August meeting agenda for a vote on whether to proceed with the rulemaking process.

Protocol for Communications Directly to Commission Members: The Commission reviewed the protocol for responding to communications from licensees and/or complainants relating to pending complaints before the Commission. Noting the potential for the Commission members to act as the decision makers in the case, it was suggested that they advise the persons involved that by contacting members and providing them with information outside the established process, they may limit the members’ ability to participate in any decisions about the matter. In order to conduct business in an impartial manner, Commission members must refrain from any dialog with the parties outside the established meeting and
hearing procedures.

Progress of Renewals and Reinstatements: Staff reported that as of July 1, 2020, 92% of licensees had renewed their licenses, a percentage that is in line with the three prior renewal seasons. The Commission was reminded that licensees who fail to renew by June 30 may reinstate their licenses until December 30. It was also reported that by July 15, 2020, 94% of individual licensees had renewed or reinstated their licenses, along with 95% of firms and 83% of limited nonresident commercial licensees.

Report on Instructor, School, and Sponsor Renewals and Transition: The Commission reviewed the report on instructor, school, and sponsor renewals. Under its new rules effective July 1, 2020, 210 instructors, schools, and/or sponsors renewed and are now “education providers” authorized to deliver prelicensing, postlicensing, and/or continuing education courses during the 2020-2021 license year.

CE Student Survey Report FY2020-2021: The Commission reviewed the results of surveys of CE students conducted throughout the year. The results show a high level of broker satisfaction with both elective and Update courses as well as the Broker-in-Charge Course.

Scholarship Application Selections: The Commission voted to meet in closed session pursuant to NCGS § 143-318.11(a)(2) to review applications and select a scholarship recipient. The Commission subsequently came out of closed session and announced the award of scholarships to Kathryn Diamond and Quanta Monique Edwards. Both scholarships were created in honor of Phillip T. Fisher, former Executive Director of the Commission.

Further Extension of Continuing Education Deadline: The Education Committee suggested that the Commission consider, but made no recommendation about, whether to further extend the deadline for licensees to complete their annual continuing education (CE) requirement. The current deadline is September 30, 2020. The Commission was advised that 11,381 licensees still needed continuing education for the 2019-2020 CE period as of June 30, 2020. Of those, 2,082 have broker-in-charge status and an additional 513 are broker-in-charge eligible. It was noted that there are a number of online CE courses available, and a few live courses are scheduled for the future. Staff recommended that if the Commission was
inclined to further extend the deadline, that the deadline be set at June 10, 2021. The Commission voted to keep the CE deadline at September 30, 2020.

Report on License Numbers: As of July 1, 2020, there are 105,760 brokers and firms licensed by the Commission, as follows:

• Active Brokers 73,253
• Active Provisional Brokers 3,889
• Brokers-in-Charge 16,870
• BIC-Eligible Brokers 4,688
• Inactive Brokers 19,320
• Inactive Provisional Brokers 4,902