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 November 8, 2023
Pending Cases: The Commission entered into consent agreements to suspend 14 licenses, accepted the permanent voluntary surrender of 4 licenses, accepted the voluntary surrender of 1 license, seek 1 injunctive relief, denied the issuance of 1 license, continued consideration of 3 licensees, reprimanded 2 licensees, closed cases without action against 6 licensees, left cases pending involving 5 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 actions 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: 12, total approved: 4, total approved with conditions: 2, continued: 4, and deferred: 2.
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
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending October 31, 2023.
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. S761, Additional General Assembly Appointment, passed into law extending Mr. Ramseur’s term from June 30, 2026, to July 31, 2026.
Donovan v. Excel Property Management, et al.; 23-CVS-001591: The Special Deputy Attorney General for the North Carolina Department of Justice provided a report on the case Donovan v. Excel Property Management, et al.; 23-CVS-001591 noting that they appeared in New Hanover Superior Court on Tuesday, November 7, on behalf of the Commission and the judge dismissed the case against the Commission as well as the other two named defendants.
Residential Property and Owners’ Association Disclosure Statement (RPOADS): The Executive Director provided an overview of the rulemaking process relating to the RPOADS rule, 21 NCAC 58A .0114, and presented a revised version of the Disclosure Statement for the Commission’s consideration. Upon the motion of Ms. O’Connor, the Commission voted to continue the RPOADS discussion to the December meeting.
General and BIC Update Course Topics: The Legal Education Officer reviewed a preliminary list of possible 2024-2025 Update Course topics based upon suggestions provided by Commission members, staff, licensees, and educators. Mr. Bullard, Mr. Aceto, and Ms. O’Connor commended the Director of Education & Licensing, the Legal Education Officer, and the Education Division on the amount of work that went into the 2023-2024 Update courses to make them both engaging and enjoyable for brokers and instructors. Mr. Black requested that unlicensed activity be added to the list of possible topics for the 2024-2025 Update Courses. The Legal Education Officer will send a survey to the members to rank their preferred topics for inclusion in next year’s Update Courses. Mr. Lindsey requested that competency in specialty practice areas, licensee conduct, agency formation, how to read disciplinary actions, and how to communicate with the Commission also be added to the list of topics for the GenUp, and to the BICUP, provisional broker/BIC supervision. Mr. Lindsey commended the Director of Education & Licensing and the Legal Education Officer on their recent presentation to BICs in Charlotte noting that it was extremely well received and attended. Mr. Bullard inquired whether the Commission should be prepared to address the issue of agency compensation in light of the recent litigation against the National Association of REALTORS®. The Executive Director stated that North Carolina is in a better position than many other states because of its existing rule requiring agency disclosure, including written buyer agency agreements. Staff will monitor the litigation and report to the Commission if changes and/or education is needed. The Legal Education Officer noted that Law and Rules and Licensing and Education are standing topics each year, and that an approved instructor requested that current complaints/FAQs be a third standing topic as well. Standing topics will limit available time in the four-hour courses for other topics. Mr. Black asked the Legal Education Officer to let the members know of overlapping topics to help them with ranking their preferences.
Spring Educators Conference: The Director of Education & Licensing provided a preliminary budget for the Spring Educators Conference scheduled for March 19, 2024, at the McKimmon Center at North Carolina State University. The budget for the conference previously approved by the Commission was $25,000. The Director of Education & Licensing proposed a registration fee of $49.00. Upon the motion from Mr. Lindsey, the Commission accepted the proposed budget for the Spring Educators Conference with a registration fee of $49.00.
License Examination Transition and Item Writing Workshops: The Director of Education & Licensing reported that staff in both Education and Licensing and IT are working to make a smooth transition for license examination services from PSI to Pearson Vue in February. One significant change will be 60 state examination questions instead of 40. A number of Item Writing Workshops have been scheduled with instructors to generate test questions. Sixty-four instructors are involved in the eight Item Writing Workshops. Each day, questions are drafted for a different section of the exam. There has been great collaboration with the instructors and the Director commended the Education and Examination Officer on their work on the Item Writing Workshops.
November Education Town Hall: The Director of Education & Licensing reported that 60 instructors attended the November 6 Education Town Hall. Great feedback was received on the Item Writing Workshops. The educators also discussed topics such as forms training and mediation training. All of the Town Halls for 2024 are scheduled from 3:00 – 4:30 p.m. via Zoom and will take place on January 11, April 9, July 23, and October 8. Ms. O’Connor commended the Director of Education & Licensing and the Legal Education Officer on the response and interaction they had with the instructors and education providers.
Report on License Numbers: As of November 1, 2023, there are 124,563 brokers and firms licensed by the Commission, as follows:
Active Brokers 83,474
Active Provisional Brokers 5,266
Brokers-in-Charge 17,885
BIC Eligible Brokers 6,081
Inactive Full Brokers 23,907
Inactive Provisional Brokers 6,851
Firms 16,942
Limited Nonresident Commercial Brokers 240
Next Commission Meeting: The next Commission meeting will be held at 9:00am, Wednesday, December 13, 2023, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.
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 October 11, 2023
Pending Cases: The Commission entered into consent agreements to suspend 3 licenses, permanently revoked 1 license, accepted the permanent voluntary surrender of 1 license, closed cases without action against 6 licensees, left cases pending involving 5 licensees, and ordered hearings in cases involving 24 licensees.
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 made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 6, total approved: 1, total approved with conditions: 2, continued: 3, and deferred: 0.
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
Independent Annual Audit: The Executive Director reported that the Finance Committee had reviewed the audit report with the auditors and staff. The Commission’s independent auditor also provided an overview of the audit. Upon the joint motion of Mr. Lindsey and Mr. Ramseur, the Commission approved the annual audit.
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. The Director of Regulatory Affairs noted that the budget, H259 2023-2024 Appropriations Act, did pass into law.
Residential Property and Owners’ Association Disclosure Statement (RPOADS): Staff provided an overview of the rulemaking process relating to the RPOADS rule, 21 NCAC 58A .0114, and presented a revised version of the Disclosure Statement for the Commission’s consideration [Exhibit 9]. The Commission discussed the first page relating to instructions and two sections, Sections A – B, during its meeting and noted various topics to be addressed by staff in the next draft including clarifying the instructions regarding the obligation to respond to questions, reformatting ‘additional information spaces’ that relate to the questions, and simplifying the question and table structure. Mr. Malarney asked that the public comment matrix be included in next month’s Disclosure Statement exhibit. The Commission took no action on the Disclosure Statement and will continue its discussion during the November business meeting.
BIC Span of Control: The Executive Director reported that the BIC Span of Control Workgroup met and reviewed the BIC Span of Control exhibit the Commission received. At Mr. Lindsey’s request, the workgroup members discussed the scope of the problems including both misconduct and the failure to act. The group will continue to meet and make updates to the full Commission. Mr. Lindsey asked Mr. Aceto and Mr. Ramseur for any suggestions on the BIC span of control. Mr. Ramseur stated he would be an alternate for the workgroup. Mr. Lindsey offered to share the workgroup minutes from the first meeting and noted that the group is working on how best to approach the subject.
General and BIC Update Course Topics: The Director of Education and Licensing reviewed with the Commission a preliminary list of possible 2024-2025 Update course topics based upon suggestions provided by Commission members, staff, licensees, and educators. As to requests for topics that are generally outside the Commission’s scope, e.g., negotiation training, Ms. O’Connor suggested that these topics be directed to the NC REALTORS® Association. The Director of Education and Licensing asked that the Commission consider any topics that they would like to include in the Update Courses for further consideration at the November meeting.
North Carolina Real Estate Educators Association (NCREEA) Fall Conference: The Director of Education and Licensing reported that NCREEA held its fall, in-person conference in Winston-Salem at the end of September. Ms. Cheryl Sain was awarded Program of the Year and Ms. Melea Lemon was awarded Instructor of the Year. The Director of Education and Licensing noted that the entire Education staff presented at the conference and he gave the closing presentation.
Education Committee Meeting: The Director of Education and Licensing suggested an Education Committee meeting with Mr. Black and Ms. O’Connor to discuss the Education Advisory Committee and topics for the Update course.
Report on License Numbers: As of October 1, 2023, there are 123,647 brokers and firms licensed by the Commission, as follows:
Active Brokers 82,981
Active Provisional Brokers 5,244
Brokers-in-Charge 17,802
BIC Eligible Brokers 6,042
Inactive Full Brokers 16,962
Inactive Provisional Brokers 6,662
Firms 16,805
Limited Nonresident Commercial Brokers 237
Next Commission Meeting: The next Commission meeting will be held at 9:00am, Wednesday, November 8, 2023, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.
Commission Meeting News
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 September 13, 2023
Pending Cases: The Commission entered into consent agreements to suspend 11 licenses, accepted the permanent voluntary surrender of 3 licensees, closed cases without action against 9 licensees, left cases pending involving 3 licensees, approved 1 license application following a hearing, granted approval to seek injunctive relief if needed against 5 individuals, and ordered hearings in cases involving 22 licensees.
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 made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 12, total approved: 3, total approved with conditions: 5, continued: 0, and deferred: 4.
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
ARELLO Awards: The Executive Director reported that the Commission is receiving three awards at the 2023 ARELLO Annual Meeting later in September. The Commission received an education award for the Wire Fraud Seminars, a second education award for the Instructor Training and Development provided at the 2023 Spring Educator’s Conference, and a communication award for Website Innovation & Design for the implementation of the LADS database system for instructors and education providers. The Executive Director commended staff on the work that went into each of the programs, including Ms. Thoren, Mr. Elder, and Joshua Oglesbee.
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. The Director of Regulatory Affairs noted that H422, Unfair Real Estate Agreements Act, passed and was signed by the Governor. The Attorney General’s office sought and obtained a temporary restraining order against the company involved.
Residential Property and Owners’ Association Disclosure Statement: Staff provided an overview of the rulemaking process relating to the Residential Property and Owners’ Association Disclosure Statement and presented staff recommendations for consideration of revisions to the instructions and certain questions. The Commission discussed whether to add “NA” as an option to the RPOADS. Mr. Malarney noted there was a qualifier in question F5 which should be struck from the form and the word “current” should be included in question F9. Mr. Malarney commended Staff for their work on the statement. Ms. O’Connor indicated that she liked the reformatting and approach of the disclosure form.
Consumer Resources and Projects Report: The Director of Education & Licensing and Consumer Resource Officer provided a report on the current consumer outreach and education projects while noting that consumer resources have been created for the Timeshare Act. The Consumer Resource Officer also provided an update on the status of the consumer outreach projects. Mr. Lindsey commended Staff on their work with consumer outreach. Mr. Black commended Staff for the improvement in the Commission’s social media presence since last year. Mr. Bullard suggested inviting high school students to the Commission meetings as part of the high school real estate career outreach project.
2023 License Law and Commission Rules: The Communication Officer distributed the newly published 2023 License Law and Commission Rules booklets to the Commission members, which were updated by the Communications Officer, Legal Education Officer and Compliance Manager.
Report on License Numbers: As of September 1, 2023, there are 122,629 brokers and firms licensed by the Commission, as follows:
Active Brokers 82,412
Active Provisional Brokers 5,186
Brokers-in-Charge 17,715
BIC Eligible Brokers 6,013
Inactive Brokers 23,345
Inactive Provisional Brokers 6,411
Firms 16,641
Limited Nonresident Commercial Brokers 231
Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, October 11, 2023, at the Kimpton Arras in Winston-Salem and is open to the public. It also can be viewed via Zoom online video.
Commission Meeting News
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 August 16, 2023
Pending Cases: The Commission entered into consent agreements to suspend 13 licenses, accepted the permanent voluntary surrender of 3 licensees, revoked 2 licenses, reprimanded 1 licensees, closed cases without action against 4 licensees, left cases pending involving 7 licensees, and ordered hearings in cases involving 18 licensees. The Commission approved payment from the Real Estate Education and Recovery Fund in the amount of $7,215 to a consumer who suffered a direct monetary loss because of certain acts committed by a real estate licensee.
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 made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 6, total approved: 2, total approved with conditions: 1, continued: 3, and deferred: 0.
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
DEI Staff Survey Results: Staff presented the DEI staff survey results noting that 74% of staff fully participated in the survey, 9% of staff partially completed the survey, and 17% of staff did not complete the survey.
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.
BIC Span of Control: The Director of Regulatory Affairs reviewed the Broker in Charge Education and Span of Control report. Mr. Lindsey commended the Director of Regulatory Affairs and Staff on the updated presentation of the survey results. Mr. Malarney and Mr. Lindsey created a work group to review the report and make recommendations about the next steps to pursue relating to the span of control of brokers-in-charge. The Executive Director asked Commission members to email her or the Director of Regulatory Affairs their feedback on BIC span of control.
Residential Property and Owners’ Association Disclosure Statement: Staff presented the public comments that were submitted relating to the proposed revisions to the Residential Property and Owners’ Association Disclosure Statement form. Staff received 684 responses from brokers, attorneys, organizations, and the general public. The overall feedback was 91% positive. The Director of Regulatory Affairs provided a memo to the Commission members with preliminary staff recommendations for consideration by the Commission. Staff provided an in-depth review of each of these recommendations.
Item-Writing Workshops: The Director of Education & Licensing provided a report on proposed item-writing workshops to help education providers and instructors develop meaningful end-of-course examination questions. There will be eight item writing workshops with +20 attendees. Four of the workshops will be held in Raleigh and four will be held in the Charlotte area beginning in October.
Education Town Hall: The Director of Education & Licensing provided a report on the August 9, 2023, Education Town Hall noting that it was structured as a ninety-minute open forum for the 70 instructors present. Most of the time was spent discussing the shift from PSI to Pearson Vue for the Commission’s license examination. The educators present provided a positive response to the change of testing providers.
Other Business: The Executive Director and the other members of the Commission recognized Mr. Bullard for his appointment to the National Association of REALTORS® Legal Action Committee.
Report on License Numbers: As of August 1, 2023, there are 121,250 brokers and firms licensed by the Commission, as follows:
Active Brokers 80,555
Active Provisional Brokers 4,685
Brokers-in-Charge 17,520
BIC Eligible Brokers 6,034
Inactive Brokers 24,066
Inactive Provisional Brokers 6,554
Firms 16,411
Limited Nonresident Commercial Brokers 218
Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, September 13, 2023, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.
Commission Meeting News
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 19, 2023
Pending Cases: The Commission entered into consent agreements to suspend 17 licenses, 1 instructor approval, and 1 education provider approval, accepted the permanent voluntary surrender of 1 instructor approval, reprimanded 4 licenses, extended the time to satisfy conditions involving 1 licensee, closed cases without action against 3 licensees, left cases pending involving 6 licensees, denied 1 license following a hearing, continued cases involving 3 licensees, 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 actions 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: 3, total approved with conditions: 2, continued: 3, and deferred: 2.
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
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.
BIC Span of Control: The Director of Regulatory Affairs reviewed the report on the BIC Focus Groups and surveys and asked Commission members to consider what actions and next steps they might like to pursue relating to the span of control of brokers in charge. The report will be reviewed at the August meeting and staff will seek the Commission members’ feedback on each of the topics listed.
Residential Property and Owners’ Association Disclosure Statement: Staff reported that the Residential Property and Owners’ Association Disclosure Statement rule changes were approved at the Rules Review Commission on June 15, and effective on July 1, 2023. The public comment period for the RPOADS form is open until August 1, 2023. The comments received during this period will be presented to the Commission at the August 16, 2023, meeting.
Commission Commendations: Mr. Fox commended Mr. Malarney and Mr. Lindsey on their elections as Chair and Vice-Chair of the Commission. He also commended Ms. Mallette on her nomination to the North Carolina Business Court and Mr. Black for his work as Chair of the Commission this year.
Renewals: The Director of Education & Licensing reported that as of July 1, 2023, 90% of brokers, and 89% of firms renewed their licenses, which is slightly below previous years. A total of 3,235 licensees were marked inactive due to a CE deficiency, and 13, 757 licenses expired due to the failure to renew. Further, he stated that 1,015 BICs lost their BIC status. Out of approximately 129,000 licensees, only 126 licenses were affected by an inactive BIC, 12 licensees were affected by a BIC who failed to complete CE, and 62 licensees were affected by an expired BIC.
Education Provider and Instructor License Examination Performance: The Director of Education & Licensing provided a report on the Education Provider and Instructor License Examination Performance. He indicated that 3,017 people tested on the NC licensing exam and first-time test takers had a 67.5% yearly pass rate. Sixty-four education providers offered the prelicensing course and only 3 fell below the 40% minimal competency threshold. Additionally, there were 147 instructors who taught prelicensing and only 6 instructors went below the 40% minimal competency rule. The Director commended the education providers for working to improve their delivery of education. Ms. Chandler asked that the Commission discuss the feasibility of allowing instructors to take a licensing exam periodically in order to determine the instructor’s competency level, noting that some instructors may be presenting incorrect information.
Year-End CE Student Survey: The Director of Education & Licensing provided a report on the year-end CE student survey noting that 13,244 surveys were returned over the course of the year. According to the survey results, there has been a transition of some courses from Zoom back to in-person. He noted that the survey respondents indicated that the overall performance of instructors and the perceived quality and value of the course remains very high. There were also improvements reported in student engagement and instructor delivery. In addition, the report included the most frequent comments on CE courses and the Update course.
Report on License Numbers: As of July 1, 2023, there are 115,911 brokers and firms licensed by the Commission, as follows:
Active Brokers 79,298
Active Provisional Brokers 4,373
Brokers-in-Charge 17,223
BIC-Eligible Brokers 6,178
Inactive Brokers 21,133
Inactive Provisional Brokers 5,546
Firms 15,285
Limited Nonresident Commercial Brokers 195
Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, August 16, 2023, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.
Commission Meeting News
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 June 14, 2023
Pending Cases: The Commission entered into consent agreements to suspend 9 licenses, accepted the permanent voluntary surrender of 1 education provider approval, accepted the permanent voluntary surrender of 1 license, closed cases without action against 2 licensees, left cases pending involving 1 licensee, approved 1 license following a hearing, granted approval to seek injunctive relief if needed against 2 individuals, 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 actions 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: 9, total approved: 4, total approved with conditions: 3, continued: 1, and 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
Legislative Report: Staff 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.
Annual Rulemaking: Staff reported that the proposed rule changes that the Commission voted to adopt at its April 19, 2023, meeting were approved by the Rules Review Commission on May 18, 2023, and are posted on the Commission’s website. The rules are effective July 1, 2023.
Renewals: The Director of Education & Licensing reported that 72% of brokers and firms had renewed as of June 14, 2023. They stated that since May 15, License Services staff have answered over 16,400 phone calls. Further, as of June 14, 3,246 brokers were CE-deficient because they did not meet the June 10 deadline. Based on past data, the Director of Education & Licensing is expecting approximately 750 brokers to remedy their CE deficiencies.
Update Course Development: The Director of Education & Licensing and the Legal Education Officer reported that the 2023-2024 Update course is complete. The student manual and the slide presentations have both been shortened in response to feedback from education providers. The first Update Instructor Seminar was taught on Tuesday, June 13, 2023, to 80 instructors at the McKimmon Center at NC State University.
Report on License Numbers: As of June 1, 2023, there are 129,601 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, July 19, 2023, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.
Pending Cases: The Commission entered into consent agreements to suspend 6 licenses, accepted the voluntary surrender of 2 licenses, continued hearings to a later date for a case involving 1 licensee, closed cases without action against 1 licensee, left cases pending involving 6 licenses, revoked 2 licensees, 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: 9; total approved: 8.
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
Legislative Report: Staff 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.
Rule 21 NCAC 58A .0114: The Commission thanked licensees and the public for their interest in the Commission’s rulemaking and their comments on the proposed rules. Staff reviewed the recommendations on Rule 21 NCAC 58A .0114, which if adopted would be effective July 1. The Commission then voted to adopt the changes as presented.
Draft Residential Property and Owners’ Association Disclosure Statement: Staff reviewed a draft revision of the Residential Property and Owners’ Association Disclosure Statement (RPOADS), noting that the form is divided into categories to clarify disclosure topics for the seller and the buyer. After review, the Commission voted to publish the draft RPOADS with the following revisions:
LaRose v. NCREC: 23 REC 00687: The Director of the North Carolina Real Estate Commission reported that the case, LaRose v. NCREC; 23 REC 00687, was dismissed by the Office of Administrative Hearings based upon lack of subject matter jurisdiction as well as other substantive grounds.
Renewals: The Director of Education & Licensing reported that licensees must renew by June 30, 2023 in order to maintain a license. They also reported on the comprehensive planning for renewals, including advance electronic notices and reminders in the Commission’s social media and the Bulletin. On the first day of renewals, License Services renewed 11,929 brokers, and 2,086 firm licenses, while taking 1,116 phone calls. By the second day, 19,202 brokers renewed along with 3,346 firms. A total of 17% of brokers have been renewed and 20% of firms. Commission member Chandler asked that staff revisit the possibility through rulemaking that an Education Provider would not be required to renew when they do not offer classes directly to students but still want to control their course content.
May 3 Education Town Hall: The Director of Education & Licensing reported on the May 3 Education Town Hall noting that 65 educators attended. There were questions about renewals, Prelicensing, Postlicensing, and CE approval. The next Town Hall is on August 7, 2023.
2023-2025 North Carolina Real Estate Manual: Staff presented the Commission members with the newest addition of the North Carolina Real Estate Manual. They thanked the Commission Chair Mel Black for his contribution on chapter five.
Report on License Numbers: As of May 1, 2023, there are 128,798 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 14, 2023, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.
Pending Cases: The Commission entered into consent agreements to suspend 11 licenses, accepted the voluntary surrender of 3 licenses, voted to extend to a later date cases involving 2 licenses, closed cases without action against 9 licensees, left cases pending involving 9 licenses, revoked 1 license, 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: 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:
Individuals Tested for the First Time | ||||
Took prelicense course | Hold license from another state | |||
March 2023 | April 2022 through March 2023 | March 2023 | April 2022 through March 2023 | |
# Tested | 598 | 5955 | 15 | 242 |
% Pass both sections | 51% | 49% | N/A | N/A |
% Pass National section | 79% | 78% | N/A | N/A |
% Pass State section | 60% | 55% | 20% | 40% |
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.
Annual Rulemaking: Staffed reviewed the recommendations on proposed rules, which if adopted would be effective July 1, 2023. See the Commission’s homepage for more information about proposed rulemaking.
BIC Focus Groups: The Director of Regulatory Affairs reviewed a report on the BIC Focus Groups and surveys and asked Commission members to consider what actions and next steps they might like to pursue relating to the span of control of brokers in charge.
Educators Conference: The Director of Education & Licensing provided a report on the March 21 Spring Educators Conference noting that 335 people attended the conference. Stephanie Walker was awarded the 2023 Larry A. Outlaw Excellence in Education Award. The total conference cost is $6,121.74 against a budget of $36,000.00.
License Exam Statistics: The Director of Education & Licensing provided a report on the third-quarter license exam statistics noting that the monthly pass rate in March was 69%, pulling the yearly average pass rate up to 63%. Only eight instructors are currently performing under the 40% pass-rate threshold.
Real Estate Manual: The Director of Education & Licensing reported that Staff completed the 2023 edition of the Real Estate Manual, which is being printed and set for release in six weeks. The Director of Education & Licensing noted that there are some issues with the online manual, including that page numbers cannot be added to the book. Staff is researching options to improve the online delivery platform, including alternate providers.
Report on License Numbers: As of April 1, 2023, there are 127,978 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 17, 2023, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.
Pending Cases: The Commission entered into consent agreements to suspend 6 licenses, denied the issuance of 1 license, accepted the voluntary surrender of 3 licenses, reprimanded 1 licenses, closed cases without action against 5 licensees, left cases pending involving 4 licenses, authorized RA Division to seek injunctive relief of 3 licensees, 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: 11; total approved: 8.
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 2023 | March 2022 through February 2023 | February 2023 | March 2022 through February 2023 | |
# Tested | 385 | 6072 | 18 | 266 |
% Pass both sections | 49% | 49% | N/A | N/A |
% Pass National section | 79% | 78% | N/A | N/A |
% Pass State section | 53% | 54% | 39% | 39% |
Regulatory Report: The Director of Regulatory Affairs reviewed a report showing the status of all cases pending in the Regulatory Affairs Division as of February 28, 2023.
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 summarized H63 – Verification of Immigration Status – SAVE. The Commission directed staff to analyze bill H63 and provide input to the sponsors of the bill regarding Commission concerns.
Authority to Fine Licensees: The Director of the Real Estate Commission summarized the Commission’s prior interest in obtaining statutory authority to fine licensees for misconduct as a supplement to its existing authority to impose discipline. She noted that under the State Constitution, any fines received would go to the local school board rather than to the Commission. The last time the Commission pursued this was in 2010. At that time, staff reached out to the Association of REALTORS® (“NCR”) for support of the change; ultimately, NCR did not support it and no change was made. The Director indicated that if the Commission is interested in considering this matter again, staff could research it and bring back recommendations to the Commission.
Draft RPOADS Internal Policy: The Director of Regulatory Affairs reviewed a proposed internal policy for Commission review of the Residential Property and Owners’ Association Disclosure Statement (RPOADS) outside the rulemaking process. The NCREALTORS® would like to take the RPOADS form back to their Forms Committee for feedback. The Commission requested that acronyms in the Policy be defined and that specific contact information for key personnel be included. The Commission adopted the internal policy for the RPOADS review with the requested changes.
BIC Focus Groups: The Director of Regulatory Affairs provided a brief update on the progress of the BIC Focus Groups noting that she is working on a report and summary to present to the members at the April meeting.
Commendation: The Commission commended the Director of Education & Licensing and the Legal Education Officer on their recent presentation to the Durham Association of REALTORS®.
Closed Session: The Commission voted to meet in closed session pursuant to N.C.G.S § 143-318.11(a)(3) to consult with Special Deputy Attorney General Anne Brown regarding Leonard Paul LaRose v. NC Real Estate Commission; OAH case 23REC00687, and to consult with Commission counsel about a contract issue. At the conclusion of the closed session, the Director of the Real Estate Commission announced in open session that the Commission directed staff to send a letter to PSI about contract issues and to schedule a meeting with their representatives at the upcoming ARELLO meeting.
Report on March 8 Education Committee Meeting: The Director of Education & Licensing provided a report on the March 8 Education Committee meeting following a request that the Commission consider increasing the required number of Prelicensing course hours from 75 to 90. The Director noted that staff will review the Prelicensing course and the license examination and return with recommendations for the Commission.
Report on License Numbers: As of March 1, 2023, there are 127,234 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 19, 2023, at the Historic 1767 Chowan County Courthouse in Edenton, NC and is open to the public. It also can be viewed via Zoom online video.
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.