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Commission Meeting of May 19, 2021

Pending Cases: The Commission entered into consent agreements to suspend 5 licenses, closed its case without action against 1 licensee, reprimanded 2 licensees, denied the issuance of 1 license; 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: 15.

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


April 2021

May 2020

through April 2021


April 2021

May 2020

through April 2021

# Tested

983

12091

29

259

% Pass both sections

37%

36%

N/A

N/A

% Pass National section

67%

66%

N/A

N/A

% Pass State section

39%

38%

38%

30%

Reconsideration of Proposed Rule Language: Staff reported that the proposed rule changes were submitted to the Rules Review Commission (RRC) and that RRC requested technical changes. Staff explained that three major change requests will likely prevent RRC from approving the proposed rules addressing racial equity issues as submitted. Staff reviewed two possible alternatives that create one broader rule addressing discrimination in lieu of the proposed rule amendments with objections. A third option would be to withdraw the rules where objections have been made and begin again. The Commission approved revised text for submission to RRC in place of the racial equity changes previously submitted.

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. Staff reported that the Timeshare Bill passed the House unanimously and is going to the Senate.

Request for Funding for NCCU MBA Real Estate Program: Staff reported that they are reviewing the law to determine the Commission’s authority to make a donation to the fundraising effort for NCCU’s proposed MBA real estate concentration. Staff reported that they have reached out to Ms. Anne Brown, Special Deputy Attorney General at the Department of Justice, and to the Commission’s auditor, for their professional opinions. Research so far reveals that some occupational licensing boards have explicit statutory authority to offer monetary contributions to State educational institutions, but most do not. The NCCU MBA Committee will meet on June 1, 2021 at 2:00 PM via Zoom. The Commission discussed the possibility that the Commission offer an internship at the Commission for a student enrolled in the NCCU MBA program rather than a monetary donation. The Committee will explore all options and report back.

Progress of Renewals: Staff reported that as of May 19, 2021, 22% of licensees (26,326) had renewed their licenses, which is slightly ahead of renewals at the same time last year. To remind licensees of their renewal deadline, staff included a reminder article in the May e-Bulletin, emailed licensees an advance message that renewals would begin on May 15, 2021, and began emailing licensees in batches now that the renewal process is open on the Commission website. Second reminder notices will be sent in early June to all brokers by email and mail who have not then renewed. As June 30 approaches, staff will reach out to BICs and QBs of offices and firms with affiliated brokers who have not yet renewed.
The Executive Director commended the Commission’s CTO, Programmer, and Systems Administrator for their work in building a custom online renewal process for Education Providers. The new system is in place and renewals are running smoothly. The Commission commended Staff for the instructional videos for Education Providers.

Federal Background Checks from CRC: The Commission was reminded that at the May 2020 Commission meeting, members voted to require federal background checks of new license applicants as of July 1, 2021. Staff reported that CRC will add this component to the background check process beginning July 1 at a cost of $15 per applicant. Measures have been taken to notify applicants and education providers of this new requirement.

PSI Remote Proctoring: Staff reported that license examination candidates can now take the exam at home or a remote location. This option began on May 4, 2021. Less than 50 candidates have taken the exam from a remote location to date. Candidates testing from remote locations cannot take breaks or use scrap paper; however, they can use a white board in the background that the proctor can see. PSI offered a webinar rolling out the remote proctoring for Education Providers and instructors and this webinar is available online.

Foreign Investment in Real Property Tax Act: The Commission reviewed an article addressing the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) published in the May 2021 issue of Insight magazine. The Commission suggested that the article be reprinted in the e-Bulletin. Staff responded that they are already seeking permission.

The Commission commended staff for the changes implemented in the office during the pandemic.
The Commission discussed how cases on Fair Housing are handled in North Carolina and suggested adding more Fair Housing resources for licensees on the website and eBulletin, and reaching out to the Human Relations Commission to ask them to alert staff when there are any fair housing cases that involve a licensee. The Commission noted that the National Association of REALTORS has hired a law firm to review and produce a report on how states’ license laws and rules address fair housing. The full report will be out within the next month.

Report on License Numbers: As of May 1, 2020, there are 122,165 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, June 16, 2021, via Zoom online video.

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:


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


March 2021

April 2020 through March 2021


March 2021

April 2020 through March 2021

# Tested

1097

11123

28

231

% Pass both sections

39%

36%

N/A

N/A

% Pass National section

67%

66%

N/A

N/A

% Pass State section

40%

37%

32%

29%

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:

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:


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


February 2021

March 2020 through February 2021


February 2021

March 2020 through February 2021

# Tested

794

10453

23

213

% Pass both sections

28%

37%

N/A

N/A

% Pass National section

59%

67%

N/A

N/A

% Pass State section

30%

38%

17%

28%

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:

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:


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


January 2021

February 2020 through January 2021


January 2021

February 2020 through January 2021

# Tested

965

10068

18

207

% Pass both sections

37%

38%

N/A

N/A

% Pass National section

68%

68%

N/A

N/A

% Pass State section

39%

40%

33%

30%

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:

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:


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


December 2020

January 2020 through December 2020


December 2020

January 2020 through December 2020

# Tested

1062

9681

19

208

% Pass both sections

36%

39%

N/A

N/A

% Pass National section

66%

69%

N/A

N/A

% Pass State section

41%

40%

32%

30%

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:

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:


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


November 2020

December 2019

through November 2020


November 2020

December 2019

through November 2020

# Tested

978

9391

18

202

% Pass both sections

34%

40%

N/A

N/A

% Pass National section

63%

71%

N/A

N/A

% Pass State section

35%

42%

22%

31%

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:

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:


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


October 2020

November 2019

through October 2020


October 2020

November 2019

through October 2020

# Tested

1353

9018

26

212

% Pass both sections

33%

42%

N/A

N/A

% Pass National section

61%

73%

N/A

N/A

% Pass State section

35%

44%

15%

32%

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:

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:


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


September 2020

October 2019 through September 2020


September 2020

October 2019 through September 2020

# Tested

1316

8298

34

212

% Pass both sections

33%

44%

N/A

N/A

% Pass National section

62%

76%

N/A

N/A

% Pass State section

34%

46%

35%

35%

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:

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:


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


August 2020

September 2019 through

August 2020


August 2020

September 2019 through

August 2020

# Tested

1008

7580

13

198

% Pass both sections

35%

47%

N/A

N/A

% Pass National section

66%

80%

N/A

N/A

% Pass State section

36%

49%

38%

36%

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:

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:


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


July 2020

August 2019 through

July 2020


July 2020

August 2019 through

July 2020

# Tested

971

7248

20

199

% Pass both sections

35%

50%

N/A

N/A

% Pass National section

68%

83%

N/A

N/A

% Pass State section

37%

51%

40%

36%

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:

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