Pending Cases: The Commission entered into consent agreements to suspend 9 licenses, denied the
issuance of 1 license, accepted the voluntary surrender of 5 licenses, closed cases without action
against 7 licensees, and ordered hearings in cases involving 20 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: 7.
License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:
Individuals Tested for the First Time | ||||
Took prelicense course | Hold license from another state | |||
January 2023 | February 2022 through January 2023 | January 2023 | February 2022 through January 2023 | |
# Tested | 457 | 6078 | 14 | 285 |
% Pass both sections | 51% | 49% | N/A | N/A |
% Pass National section | 77% | 78% | N/A | N/A |
% Pass State section | 54% | 53% | 79% | 37% |
Legislative Report: The Director of Regulatory Affairs reviewed the Legislative Report, summarizing 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. Staff reviewed House Bill (HB) 29 – Support Private Property Rights, which provides that inclusion of real property on a comprehensive transportation plan is not, standing alone, a material fact. The Commission voted to remain neutral regarding HB29.
Petition for Rulemaking: The Director of Regulatory Affairs reminded the Commission that at the December meeting, the Commission reviewed 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. The Director of Regulatory Affairs stated that staff recommend approving the petition with the understanding that changes would be proposed to address various flood issues in the Residential Property and Owners’ Association Disclosure Statement. The Commission voted to grant the petition in accordance with staff recommendations.
Proposed Text for Rule 58A .0114 and RPOADS: Staff provided an overview of the proposed text for Rule 58A .0114 and the Residential Property Owners Association Disclosure Statement (RPOADS). Staff proposes that the Commission eliminate the RPOADS form from Rule 58A .0114. Mr. Black commended staff on the addition of the Instructions to Real Estate Brokers to the RPOADS. The Commission accepted the proposed text for Rule 58A .0114 and the RPOADS.
Wire Fraud Seminars: The Director of Regulatory Affairs provided a brief update on six Wire Fraud Seminars scheduled throughout the state between March 2, 2023, and August 2, 2023. The Commission is co-sponsoring this event with the North Carolina State Bar and Investors Title Insurance Company. Registration is open and Commission members are encouraged to attend.
Report on Update Instructor Seminars: The Director of Education & Licensing provided a report on the Update Instructor Seminars for the 2022-2023 license year to date. The Commission approved the 2022-2023 UIS budget and voted to waive the fee for the Update Instructor Seminar for the 2022-23 license year.
License Examination Results: The Director of Education & Licensing provided a report on the license examination results from July 1, 2021, to February 1, 2023. The Commission commended the Education & Licensing staff on the revised presentation of the License Examination Results.
Larry A. Outlaw Excellence in Education Award Selection: The Commission voted to meet in closed session with staff to select the recipient of the Larry A. Outlaw Excellence in Education Award. The recipient of the Award will be announced at the March 21 Educators Conference.
Report on License Numbers: As of February 1, 2023, there are 126,472 brokers and firms licensed by the Commission, as follows:
Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, March 15, 2023, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.
New Instructor Seminars
Due to high demand, several new instructor seminars were created and added to the schedule. These seminars will be offered in 2 formats until May: in person every other month, and by zoom. More seminars will be available in July and/or August, after the license renewal period has ended. If you have an interest in becoming a real estate instructor and meet the requirements, you may register for this course.
Property Manager Concerns
The NCREC sometimes receives calls about private owners managing their own property, and concerns that they are not following Landlord/Tenant Laws. While the NCREC cannot regulate the actions of a private property owner that does not have a real estate license, owners are still subject to following NC and Federal Laws concerning Fair Housing and Landlord and Tenant responsibilities. If you have a concern about the actions of an unlicensed property owner managing their own property, you should contact the Attorney General’s office for assistance.
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 meeting next month is March 15th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Tech Survey
Last month’s eBulletin included a survey for licensees to provide input about tech needs. The input was very helpful in developing a plan, topics and resources that NCREC can provide to our licensees in the identified areas of need. In response to the survey results, there will now be a Tech Corner in the monthly Real Estate Bulletin and in the Update classes specifically dedicated to tech topics.
Wholesaler Warning
We have received calls from unrepresented sellers who were approached by investors or wholesalers who contracted to buy their property. When the buyer did not complete the closing of the contract on time, the seller assumed the contract had expired and was no longer valid. This was not necessarily the case. For example, the standard residential contract form provides that “If the Delaying Party fails to complete Settlement and Closing within seven (7) days of the Settlement Date (including any amended Settlement Date agreed to in writing by the parties), then the Delaying Party shall be in breach and the Non-Delaying Party may terminate this Contract”. In general, a written termination is best, even if the closing date has passed.
Some investors/buyers/wholesalers will put a lien on the property for their interest in the contract if it is not terminated in writing, even if they did not close by the date indicated. The investor/buyer/wholesaler then demands that the seller pay a large sum of money to clear the lien before they can sell to a new buyer. Regardless of the source of the contract, we highly recommend consulting with an attorney to look out for your best interests when termination questions arise.
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 meeting this month is February 15th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.