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

Commission Meeting of June 17, 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 two licensees; closed its case without action against 1 licensee; accepted the voluntary surrender of two licenses; accepted the permanent voluntary surrender of one license; voted to extend to a later date the deadlines for three licensees to complete the requirements of their respective Consent Orders, 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: 1; total approved: 1.

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

Election of Commission Officers for period August 2020 to July 2021: Ms. Sandra L. O’Connor was elected to serve as Commission Chair and Mr. Wendell Bullard as Commission Vice Chair for the period August 2020 to July 2021.

Racial Equity Issues under the License Law and Commission Rules: The Commission discussed racial equity issues under the Real Estate License Law and Commission rules, including the authority of the Commission to regulate racist comments on brokers’ social media, its authority to consider the character of licensees, and its position on racial equity. The Commission adopted a Commitment to Racial Equity statement and directed staff to post it on the Commission website and disseminate it to licensees.

Racial Equity Training: Training for Commission members and staff will be conducted by the Racial Equity Institute after the July business meeting at 2:00 p.m.

Report on License Numbers: As of June 1, 2020, there are 114,768 brokers and firms licensed by the Commission, as follows:

• Active Brokers 75,188
• Active Provisional Brokers 5,514
• Brokers-in-Charge 17,587
• BIC-Eligible Brokers 4,320
• Inactive Brokers 25,138
• Inactive Provisional Brokers 7,755
• Firms 14,145
• Limited Nonresident Commercial Brokers 297

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

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 in the 2020-2021 Update Course, in the section on Fair Housing, a limited discussion concerning the potential for disparate impact in connection with the denial of housing voucher programs.

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