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Commission Meeting of October 16, 2019

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 three licenses; following a hearing, reprimanded one licensee; entered into consent agreements to suspend four licenses and reprimand one licensee; rejected a proposed consent agreement involving one licensee; authorized injunctive relief if necessary involving one individual; reconsidered and rescinded its previous decision to order a hearing involving two licensees and instead closed its case; and ordered hearings involving 24 licensees.

License Applications Involving Character Issues: Applications for licenses from persons who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately reviewed by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews. Total candidates reviewed: 36; total approved: 26.

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


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


September 2019

October 2018 through September 2019


September 2019

October 2018 through September 2019

# Tested

598

7040

20

222

% Pass both sections

52%

55%

N/A

N/A

% Pass National section

89%

83%

N/A

N/A

% Pass State section

54%

58%

40%

40%

Public Comments and Rule Text: Staff reviewed with the Commission the text of proposed amendments to Commission rules and the Commission approved the rules for publication in the North Carolina Register.

General Update and BICUP Courses: Staff reviewed with the Commission the list of possible Update topics based on suggestions provided by Commission members and staff to date. Staff asked Commission members to communicate any other ideas for topics to add to the list. The Commission will review all proposed topics and prioritize those deemed most important before making a final selection in the coming months.

Emerging Trends: Commission Member Cindy S. Chandler reviewed with the Commission an article from Inman News outlining Bright MLS’s new rule addressing pocket listings.

Report on License Numbers: The Commission was advised that as of October 1, 2019, there are 108,434 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 13, 2019, at Raleigh, North Carolina and is open to the public.

Commission Meeting of September 11, 2019

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Commission Meeting of September 11, 2019

Pending Cases: The Commission, following two hearings. revoked one license and, in the second case, adjourned to deliberate with a decision to be communicated at a later date; entered into consent agreements to suspend three licenses and reprimand five licensees; rejected a proposed consent agreement involving one licensee; extended the time within which a licensee must satisfy the conditions of the Consent Order previously entered into with the Commission; and ordered hearings involving 12 licensees.

License Applications Involving Character Issues: Applications for licenses from persons who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately reviewed by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews. Total candidates reviewed: 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:


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


August 2019

September 2018 through

August 2019


August 2019

September 2018 through

August 2019

# Tested

636

6894

14

217

% Pass both sections

56%

55%

N/A

N/A

% Pass National section

88%

83%

N/A

N/A

% Pass State section

57%

58%

43%

41%

Proposed Subject Matter for Rulemaking: Staff reviewed with the Commission a summary of proposed subject matter for rulemaking. The Commission directed the staff to proceed with the rulemaking process to clarify authorization of dual and designated agency and to proceed with rulemaking as to all the other topics described except the proposed change to Rule A .0104 concerning conflicts of interest by property managers.

Update on 12-hour Broker-in-Charge Course Development: Staff noted that the last in-person, classroom-based BIC Courses are this month and that on October 1 the new blended learning solution begins. The new requirements include completion of an 8-hour online component, followed by a four-hour “classroom” component and, either a live, online synchronous learning environment or in-person at the McKimmon Center in Raleigh.

Emerging Trends: Commission Member Cindy S. Chandler reviewed with the Commission an article from Inman News entitled, Keller Williams advises charging 0% to clients who sell to Offerpad.

Report on License Numbers: The Commission was advised that as of September 1, 2019, there are 108,429 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 16, 2019, at Raleigh, North Carolina and is open to the public.

Commission Meeting of August 14 2019

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Commission Meeting of August 14, 2019

Pending Cases: The Commission accepted the voluntary surrender of one license; entered into consent agreements to permanently revoke one license, revoke one license, and suspend three licenses; rejected a proposed consent agreement involving one licensee; authorized its Regulatory Affairs Division to seek injunctive relief, if necessary, in one case; and ordered hearings involving 10 licensees.

License Applications Involving Character Issues: Applications for licenses from persons who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately reviewed by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews. Total candidates reviewed: 29; total approved: 26.

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


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


July 2019

August 2018 through

July 2019


July 2019

August 2018 through

July 2019

# Tested

504

6909

26

237

% Pass both sections

51%

55%

N/A

N/A

% Pass National section

87%

82%

N/A

N/A

% Pass State section

51%

59%

31%

40%



New Instructor Seminar (NIS): Staff reported to the Commission on the new two-day format for the New Instructor Seminar, requiring live presentations by each participant in lieu of the previously required video. The NIS first offering was a success, generating positive feedback from the participants about the class and the Commission.

Emerging Trends: Commission Member Cindy S. Chandler reviewed with the Commission an article from the Inman News entitled, Amazon Gets into Real Estate with Major Realogy Partnership. The Commission also discussed the duty of property managers when advertising owners’ property in online, unlicensed rental booking sites.

Report on License Numbers: The Commission was advised that as of August 1, 2019, there are 106,476 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 11, 2019, at Raleigh, North Carolina and is open to the public.

Commission Meeting of July 17 2019

Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meetings:

Commission Meeting of July 17, 2019

Pending Cases: The Commission accepted the permanent voluntary surrender of one license; entered into consent agreements to suspend five licenses; following a hearing, denied the application for reinstatement of one broker license; reconsidered its decision to require one licensee to complete the Commission’s Issues and Answers Course and instead ordered that the Consent Order addendum be amended to include a course on agency; and ordered hearings involving seven licensees.

License Applications Involving Character Issues: Applications for licenses from persons who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately reviewed by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates reviewed: 18; total approved: 11.

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


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


June 2019

July 2018 through June 2019


June 2019

July 2018 through June 2019

# Tested

534

6896

18

258

% Pass both sections

58%

56%

N/A

N/A

% Pass National section

89%

81%

N/A

N/A

% Pass State section

60%

59%

56%

41%



H770/S.L. 2019-91: Staff reported that House Bill 770, “Freedom to Work/Occupation Licensing Board Reform,” had passed the legislature and is now Session Law 2019-91. The Commission authorized staff to proceed with the temporary and regular rulemaking process related to the required character predetermination process, with the understanding that the Commission will review draft text at its next meeting, and a public hearing held later in the year in accordance with the requirements of the law.

Report on Broker, Firm, School, Sponsor, and Timeshare Renewals and Reinstatements: Staff reported that as of June 30, 2019, 94% of licensees (103,457) had renewed their licenses, as compared with 92% the prior year, and 94% the year before that. Staff noted as of July 17, 2019, the Commission has 104,714 total licensees. Staff reported that out of the 38 Timeshare Projects, 32 renewed by June 30, 2019, and 30 of the 32 renewed online. The Commission also received data on private school licenses, public school approvals, continuing education sponsor approvals, and instructor approvals.

CE Student Survey Report FY2019-20: Staff reviewed with the Commission the results of surveys of Continuing Education students conducted throughout the year and informed the Commission that the report will be provided annually in July.

Emerging Trends: Chair-elect Jeffery Malarney shared with the Commission an article from the Kellogg School of Management at Northwestern University concerning the relationship between startups and regulators.

Report on License Numbers: The Commission was advised that as of July 1, 2019, there are 103,557 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, August 14, 2019, at Raleigh, North Carolina and is open to the public.