Commission Meeting of January 18, 2023

Pending Cases: The Commission entered into consent agreements to suspend 13 licenses, left cases pending involving 7 licensees, reprimanded 3 licenses, accepted the voluntary surrender of 1 license, closed cases without action against 10 licensees, 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: 11; total approved: 6.

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

Annual Rulemaking: Staff provided a report on the status of the annual rulemaking. They noted that the proposed rules approved by the Commission at the November 2022 meeting will be published in the North Carolina Register for public comment, and that the rulemaking hearing is scheduled for Wednesday, February 15, 2023. The rules will be voted on at the April Commission meeting.

Rule 21 NCAC 58A .1711: Upon the recommendation of staff, the Commission voted to begin the formal process to consider the repeal of Rule 21 NCAC 58A .1711

Petition for Rulemaking: The Director of Regulatory Affairs reminded the Commission that at the December meeting, the Commission received a petition for rulemaking from the NRDC (Natural Resources Defense Council), North Carolina Justice Center, the North Carolina Disaster Recovery and Resilience School, Robeson County Church and Community Center, and NC Field Petitioners. At that time, the Commission asked staff to contact the Petitioners and to make recommendations regarding the Petition and other possible changes to Rule 21 NCAC 58A .0114 at the January meeting. The Director of Regulatory Affairs reported that they and other members of the Regulatory Affairs staff had a productive meeting with representatives of the Petitioners, and will bring suggested changes to the North Carolina Residential Property and Owners Association Disclosure for the Commission’s consideration to the February 15, 2023, meeting.

Mid-Year Real Estate License Examination Results: The Director of Education & Licensing provided a report on the real estate license examination results.

2023 Educators Conference: The Director of Education & Licensing provided a report on the upcoming 2023 Educators Conference. The Educators Conference is planned for Tuesday, March 21, 2023, at the McKimmon Center at North Carolina State University. Registrations will be capped at 300 participants. The cost of the conference as previously set by the Commission is $49 and instructors who attend the conference will receive 6 hours of instructor development credit. Registration will open soon.

January 2023 Education Town Hall: The Director of Education & Licensing provided a report regarding the January 3, 2023, Education Town Hall. There were approximately 100 educators in attendance. Feedback was received on the prelicensing exam, the electronic manual, the nature of BIC focus Groups, postlicensing courses, audits, and staff announced the details of the 2023 Educators Conference.

Remote Proctoring: The Director of Education & Licensing provided a report on PSI’s remote proctoring process. Remote proctoring will be temporarily suspended beginning February 1, 2023 until technical and other issues are resolved.

Report on License Numbers: As of January 1, 2023, there are 125,650 brokers and firms licensed by the Commission, as follows:

• Active Brokers 82,936
• Active Provisional Brokers 5,547
• Brokers-in-Charge 17,745
• BIC-Eligible Brokers 5,707
• Inactive Brokers 25,994
• Inactive Provisional Brokers 7,769
• Firms 16,442
• Limited Nonresident Commercial Brokers 278

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday February 15, 2023, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.

January Division Highlights

BIC Focus Groups

The NCREC has hosted several BIC focus groups over the past month, and the participation and feedback has been wonderful!  We so appreciate the candid conversations and excellent ideas and will be working diligently to compile all of the information gained, and use it to develop new or updated education/processes/procedures and rules to address the evolving needs of our licensees.

Fake Seller/ Fake Buyer Scam Alert

The NCREC has been receiving an increasing number of calls that indicate scam listings are on the rise. These scammers pose as sellers of vacant land and usually find listing brokers through lead generation sites. See the following link for a recent NCREC article about these scams: https://bulletins.ncrec.gov/fake-seller-fake-buyer-scam-alerts/

You are invited!

The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom.  The January 18th meeting is at the Embassy Suites in Wilmington.  A Zoom link will be available on the website at ncrec.gov on the day of the meeting.

Commission Meeting of December 14, 2022

Pending Cases: The Commission entered into consent agreements to suspend 3 licenses, left cases pending involving 7 licensees, reprimanded 2 licenses, closed cases without action against 6 licensees, and ordered hearings in cases involving 15 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: 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:

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.

Petition for Rulemaking: The Director of Regulatory Affairs presented a petition for rulemaking presented to the Commission on behalf of the NRDC (Natural Resources Defense Council), North Carolina Justice Center, the North Carolina Disaster Recovery and Resilience School, Robeson County Church and Community Center, and NC Field Petitioners. The petitioners request that the Commission initiate a rulemaking to amend the Residential Property and Owners’ Association Disclosure Statement to require the disclosure of a property’s flood history and flood risk by adding five additional questions. The Commission asked staff to contact the Petitioners and to make recommendations regarding the Petition and other possible changes at either the January or February Commission meeting.

Unlicensed Practice of Real Estate: In response to an inquiry from the Commission, the Director of Regulatory Affairs reported that the Commission has the authority to investigate the unlicensed practice of real estate brokerage and to seek an injunction in civil court if necessary. Upon receipt of information concerning unlicensed activity, the regulatory staff generally work to assure that the unlicensed person or entity ether obtains a license as required, or agrees to cease and desist the practice of real estate brokerage without a license. In the event these options are unsuccessful, staff will ask the Commission for authority to sue in civil court for injunctive relief in cooperation with the Office of the North Carolina Attorney General. The Commission expressed concerns about unlicensed property management firms or out-of-state firms that do not fall under the Commission’s purview. As to persons whose license to practice has been suspended or revoked by the Commission, the Director of Regulatory Affairs explained that staff follow up when there are indications that the person or firm is engaged in brokerage, and that the Commission can take further action against licensees who fail to abide by the terms of a Commission Order.

Timeshare Exit Company Litigation: The Director of Regulatory Affairs provided information on litigation with timeshare exit companies by the Federal Trade Commission and the Wisconsin Attorney General. They noted that timeshare exit scams remain a problem and that the legislation that the Commission helped put in place last year better protects consumers in North Carolina.

Education Director Video Replaced with New Course: The Director of Education & Licensing provided an update on the project to replace the existing 15-minute Education Director (ED) video with expanded content to include more how-to information. They noted that it was a collaborative effort involving many staff from the Education division. The new course can be used for training new EDs, as a refresher video for seasoned EDs, and as a training tool for Education Provider staff.

Tech Survey Report: The Director of Education & Licensing provided a report on the tech survey completed by licensees. A link to the survey was provided to licensees in the last e-Bulletin. Licensees would like more information from the Commission on law and rule compliance in connection with various tech issues in either the Update course or the eBulletin. They suggested that the Update course and eBulletin include a tech corner in the future.

Larry A. Outlaw Excellence in Education Award: The Director of Education & Licensing reported that the nomination forms have been made available for the Larry A. Outlaw Excellence in Education Award. The due date for nominations is January 15. The Director will send out meeting date and time options to schedule the next Education Task Force meeting to discuss the award nominations.

Report on License Numbers: As of December 1, 2022, there are 124,657 brokers and firms licensed by the Commission, as follows:

• Active Brokers 82,655
• Active Provisional Brokers 5,702
• Brokers-in-Charge 17,678
• BIC-Eligible Brokers 5,675
• Inactive Brokers 25,413
• Inactive Provisional Brokers 7,459
• Firms 16,314
• Limited Nonresident Commercial Brokers 275

Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday January 18, 2023, at the Embassy Suites by Hilton Wilmington Riverfront in Wilmington and is open to the public. It also can be viewed via Zoom online video.

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.