Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meeting:
Commission Meeting of July 17, 2024
Pending Cases: The Commission entered into consent agreements to suspend 2 licenses, accepted the permanent voluntary surrender of 2 licenses, ordered hearings in cases involving 12 licensees, closed cases without action against 6 licensees, authorized injunctive relief involving 1 licensee, and denied the issuance of 1 real estate broker license.
License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary actions by another licensing board are separately considered by the Commission. Decisions are based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 14; total approved: 3; total approved with conditions: 5; continued: 5; deferred 1.
License Examination Results: If you are interested in reviewing the most recent statistics and pass rates regarding the North Carolina broker license examination, click here License Examination Results
Allan R. Dameron Legal Internship Award: The Commission presented the Allan R. Dameron Legal Internship Award to Caroline Plumides – Carolina Central University and Gabrielle Sigmon – University of North Carolina at Chapel Hill.
Ethics Commission SEI Evaluation Letter: The Executive Director read into the record of the Commission’s meeting the results of the Evaluations of the Statements of Economic Interest of Commission members Aceto, Black, Lindsey, Malarney, Mallette, O’Connor, and Ramseur by the North Carolina State Ethics Commission; namely, that the Ethics Commission did not find an actual conflict of interest but did find the potential for a conflict of interest, and that the potential conflict does not prohibit their service on the Commission. The Executive Director also noted that no biennial evaluation was required for Commission members Bullard and Fox.
FY2024-25 Draft Project Summaries: The Executive Director presented the draft project summaries for the coming year to the Commission, including staff suggestions, and Vice Chair Lindsey’s suggestions. Upon a motion from Mr. Aceto, the Commission voted to remove item 4, DEI Licensee survey, from the staff draft projects list. Mr. Lindsey, Mr. Malarney, Ms. Mallette, and Ms. O’Connor voted against the motion. The Director of Regulatory Affairs gave an overview of the software the Regulatory Affairs staff are already using to assist with audits and investigations, especially trust accounts. Given this information, Mr. Lindsey agreed that no additional project is needed at this time on this topic. Mr. Ramseur suggested educating licensees on the availability of third-party options to monitor trust accounts. The Executive Director noted that while licensee disciplinary histories are currently digitized and attached to the licensee’s record, they should be searchable and this project is set out on the staff list as item #12. After a robust discussion on the process for complaints declined by staff, Mr. Lindsey withdrew his request to make this a project on the 2024-25 Project Summaries list. As to the suggestion to strengthen enforcement of unlicensed practice, the Executive Director responded that eliminating the limited nonresident commercial license is a topic for possible rulemaking and will come to the Commission in September in that context and that wholesaling may be a topic for proposed legislation. The Commission has no authority to regulate homeowner associations. Upon a motion from Ms. O’Connor, the Commission agreed to accept the Project Summaries as presented with the exception of project number 4.
Monthly Financial Report, Quarterly Investment, and Education & Recovery Fund Report: The Commission received the monthly Financial Report, Quarterly Investment Report, and Education & Recovery Fund Report presented by the Chief Financial Officer for the period ending June 30, 2024.
FY2024-2025 Projected Receipts and Disbursements: The Chief Financial Officer presented the FY2023-2024 Projected Receipts and Disbursements. The Chief Financial Officer noted that the Finance Committee (Mr. Lindsey and Mr. Ramseur) had earlier reviewed the projections in detail. Upon the motion of Mr. Lindsey on behalf of the Finance Committee, the Commission accepted the Projected Receipts and Disbursements for the Fiscal Year Ending June 30, 2025, as presented.
ARELLO Sponsorship: Upon a motion from Mr. Fox, the Commission approved a $7,500 sponsorship for the installation of the Director of Regulatory Affairs as the 2025 ARELLO President. Mr. Black was not present for the vote.
Appeals: The Director of Regulatory Affairs reported that Ms. Joellen Shipman’s appeal of her disciplinary case to Superior Court was dismissed. She has since filed a notice of appeal with the North Carolina Court of Appeals. Staff reported that it appears Ms. Shipman has missed her window to appeal to the Court of Appeals. The Director of Regulatory Affairs will keep the Commission apprised of the progress of that appeal. The appeal of the MV Realty case is ongoing.
Legislative Report: The Executive Director 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.
Renewals: The Director of Education and Licensing provided a report on the 2024 Renewals noting that following closeout on July 1, 2024, 89% of brokers and 86% of firms renewed their licenses, which is slightly below previous years. A total of 3,953 licensees were marked inactive due to a CE deficiency, and 12,257 licenses expired due to failure to renew. The Director of Education and Licensing noted that in the last 2 weeks, License Services has reinstated 1,844 brokers and firms. The Director of Education and Licensing commended the Technology Services Manager and the Chief Technology Officer on the detailed reports they provided throughout the renewal period.
Education Provider and Instructor License Examination Performance: The Director of Education and Licensing provided a report on Education Provider and Instructor License Examination Performance, noting that there were no instructors that performed under the 40% threshold and only one Education Provider who is under the threshold. The Education Provider in question is planning to retire.
Year-End CE Student Survey: The Assistant Director of Education and Licensing provided a report on the year-end CE student survey noting that 6,503 surveys were returned over the course of the year. The overall result was positive. Some feedback was received that the sound and video quality was poor, and this has been rectified for the 24-25 Update in the AI videos. Ms. O’Connor commended the staff on the new Update Course, and the creation of the GENUP and BICUP with clear differences between the two courses. Mr. Bullard asked if the Commission could teach Civics. The Executive Director noted that limited civics can be taught in Commission courses if it relates to consumer protection in brokerage practice.
Fair Housing Conference: The Director of Education and Licensing noted that he and the DEI Officer attended a Fair Housing conference. The Director noted that the presentations were excellent and that there were discussions about AI and meta tags in advertising, along with presentations from HUD, the CFPB, and other federal agencies. The US Department of Justice is working on numerous land scams targeting immigrants. The Director of Education and Licensing, the DEI Officer, and the Assistant Director of Education and Licensing will use the information obtained for educational purposes for licensees and the public.
Report on License Numbers: As of July 1, 2024, there are 115,355 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 78,465
Active Provisional Brokers – 4,019
Brokers-in-Charge – 16,601
BIC Eligible Brokers – 6,766
Inactive Full Brokers – 21,485
Inactive Provisional Brokers – 5,354
Firms – 15,212
Limited Nonresident Commercial Brokers – 193
Next Commission Meeting: The next Commission meeting will be held at 9:00am, August 14, 2024, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.
Director of Education and Licensing, and Diversity, Equity and Inclusion Officer attend National Fair Housing Conference
Len Elder, the Director of Education and Licensing and Minerva Mims, Diversity, Equity, and Inclusion Officer, attended the National Fair Housing Alliance (NFHA) Conference in Washington, DC this month. The conference theme was “Housing Equity Now: Building an Inclusive and Just Future.” The NFHA works to eliminate housing discrimination and ensure equitable housing opportunities for all people and communities through its education and outreach, member services, public policy, advocacy, housing and community development, tech equity, enforcement, and consulting and compliance programs.
Dangers of Unpermitted Spaces in a Property
A broker’s failure to disclose that a property has an unpermitted space is a common complaint received at the Commission. It is important that consumers understand the dangers of unpermitted spaces in a property, and why an inspection and corrective action is recommended for your protection. Watch this video, Dangers of Unpermitted Space, to learn about possible fire and flood hazards if construction work in a property is not properly permitted.
To learn more about the types of projects in a home that require permits, contact your local municipality’s planning and development office for details. We strongly recommend that you become knowledgeable on the risks associated with purchasing a property without the appropriate permits.
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 next meeting is August 14th at the Commission building, 1313 Navaho Drive, Raleigh, NC. A Zoom link will be available at ncrec.gov on the day of the meeting.