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.
Pending Cases: The Commission entered into consent agreements to suspend 13 licenses, left cases pending involving 7 licensees, reprimanded 3 licenses, accepted the voluntary surrender of 1 license, closed cases without action against 10 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 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: 6.
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 2022 | January 2022 through December 2022 | December 2022 | January 2022 through December 2022 | |
# Tested | 462 | 6231 | 16 | 287 |
% Pass both sections | 49% | 49% | N/A | N/A |
% Pass National section | 77% | 78% | N/A | N/A |
% Pass State section | 53% | 52% | 50% | 36% |
Annual Rulemaking: Staff provided a report on the status of the annual rulemaking. They noted that the proposed rules approved by the Commission at the November 2022 meeting will be published in the North Carolina Register for public comment, and that the rulemaking hearing is scheduled for Wednesday, February 15, 2023. The rules will be voted on at the April Commission meeting.
Rule 21 NCAC 58A .1711: Upon the recommendation of staff, the Commission voted to begin the formal process to consider the repeal of Rule 21 NCAC 58A .1711
Petition for Rulemaking: The Director of Regulatory Affairs reminded the Commission that at the December meeting, the Commission received 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. At that time, the Commission asked staff to contact the Petitioners and to make recommendations regarding the Petition and other possible changes to Rule 21 NCAC 58A .0114 at the January meeting. The Director of Regulatory Affairs reported that they and other members of the Regulatory Affairs staff had a productive meeting with representatives of the Petitioners, and will bring suggested changes to the North Carolina Residential Property and Owners Association Disclosure for the Commission’s consideration to the February 15, 2023, meeting.
Mid-Year Real Estate License Examination Results: The Director of Education & Licensing provided a report on the real estate license examination results.
2023 Educators Conference: The Director of Education & Licensing provided a report on the upcoming 2023 Educators Conference. The Educators Conference is planned for Tuesday, March 21, 2023, at the McKimmon Center at North Carolina State University. Registrations will be capped at 300 participants. The cost of the conference as previously set by the Commission is $49 and instructors who attend the conference will receive 6 hours of instructor development credit. Registration will open soon.
January 2023 Education Town Hall: The Director of Education & Licensing provided a report regarding the January 3, 2023, Education Town Hall. There were approximately 100 educators in attendance. Feedback was received on the prelicensing exam, the electronic manual, the nature of BIC focus Groups, postlicensing courses, audits, and staff announced the details of the 2023 Educators Conference.
Remote Proctoring: The Director of Education & Licensing provided a report on PSI’s remote proctoring process. Remote proctoring will be temporarily suspended beginning February 1, 2023 until technical and other issues are resolved.
Report on License Numbers: As of January 1, 2023, there are 125,650 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 15, 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 3 licenses, left cases pending involving 7 licensees, reprimanded 2 licenses, closed cases without action against 6 licensees, and ordered hearings in cases involving 15 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: 7; total approved: 4.
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 2022 | December 2021 through November 2022 | November 2022 | December 2021 through November 2022 | |
# Tested | 430 | 6289 | 6 | 295 |
% Pass both sections | 50% | 49% | N/A | N/A |
% Pass National section | 76% | 78% | N/A | N/A |
% Pass State section | 54% | 51% | 67% | 34% |
Draft Rule Text: Staff reviewed with the Commission the text for proposed amendments to Commission rules. Staff indicated that rule text would need to be adopted by the Commission by January 18 in order to publish any proposed rule changes for public comment in time for a July 1, 2022 effective date.
Rule Number | Current Rule Name | Action |
21 NCAC 58A .0113 | Reporting Criminal Convictions and Disciplinary Actions | Upon a motion from Ms. O’Connor, the Commission accepted the text changes as presented. Mr. Lawing was not present for the vote. |
21 NCAC 58A .0114 | Residential Property and Owners’ Association Disclosure | The Commission took no action on this rule and ask staff to bring back recommendations for the rule at the January meeting. |
21 NCAC 58A .0120 | Prohibited Acts | The Commission took no action on this rule. |
21 NCAC 58A .0301 | Form | Upon a motion from Mr. Bullard, the Commission accepted the text changes as presented. Mr. Lawing was not present for the vote. |
21 NCAC 58A .0505 | Reinstatement of a License | Upon a motion from Mr. Malarney, the Commission accepted the text changes as presented. Mr. Lawing was not present for the vote. |
21 NCAC 58A .1705 | Attendance and Participation Requirements | Upon a motion from Ms. O’Connor, the Commission accepted the text changes as presented. Mr. Lawing was not present for the vote. |
21 NCAC 58A .1708 | Equivalent Credit | Upon a motion from Ms. Chandler, the Commission accepted the text changes as presented. Mr. Fox and Mr. Lawing were not present for the vote. |
21 NCAC 58A .1711 | Continuing Education Required of Nonresident Brokers | The Commission took no action on this rule and ask staff to bring back recommendations for the rule at the January meeting. |
21 NCAC 58B .0202 | Public Offering Statement Summary | Upon a motion from Mr. Malarney, the Commission accepted the text changes as presented. Mr. Lawing was not present for the vote. |
21 NCAC 58H .0202 | Application for Education Provider Certification | Upon a motion from Ms. Chandler, the Commission accepted the text changes with an additional change to limit the impact of paragraph (f) of the rule toan individual with ownership of 10% or greater in an education provider that has been limited, denied, withdrawn or terminated. Mr. Lawing was not present for the vote. |
21 NCAC 58H .0216 | Limited Education Provider Petition for Reconsideration | Upon a motion from Ms. Chandler, the Commission accepted the text changes as presented. Mr. Lawing was not present for the vote. |
21 NCAC 58H .0302 | Application and Criteria for Instructor Approval | Upon a motion from Mr. Bullard, the Commission accepted the text changes as presented. Mr. Lawing was not present for the vote. |
21 NCAC 58H .0307 | Limited Instructor Petition for Reconsideration | Upon a motion from Ms. Chandler, the Commission accepted the text changes as presented. Mr. Lawing was not present for the vote. |
Petition for Rulemaking: The Director of Regulatory Affairs presented a petition for rulemaking presented to the Commission on behalf of 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 petitioners request that the Commission initiate a rulemaking to amend the Residential Property and Owners’ Association Disclosure Statement to require the disclosure of a property’s flood history and flood risk by adding five additional questions. The Commission asked staff to contact the Petitioners and to make recommendations regarding the Petition and other possible changes at either the January or February Commission meeting.
Unlicensed Practice of Real Estate: In response to an inquiry from the Commission, the Director of Regulatory Affairs reported that the Commission has the authority to investigate the unlicensed practice of real estate brokerage and to seek an injunction in civil court if necessary. Upon receipt of information concerning unlicensed activity, the regulatory staff generally work to assure that the unlicensed person or entity ether obtains a license as required, or agrees to cease and desist the practice of real estate brokerage without a license. In the event these options are unsuccessful, staff will ask the Commission for authority to sue in civil court for injunctive relief in cooperation with the Office of the North Carolina Attorney General. The Commission expressed concerns about unlicensed property management firms or out-of-state firms that do not fall under the Commission’s purview. As to persons whose license to practice has been suspended or revoked by the Commission, the Director of Regulatory Affairs explained that staff follow up when there are indications that the person or firm is engaged in brokerage, and that the Commission can take further action against licensees who fail to abide by the terms of a Commission Order.
Timeshare Exit Company Litigation: The Director of Regulatory Affairs provided information on litigation with timeshare exit companies by the Federal Trade Commission and the Wisconsin Attorney General. They noted that timeshare exit scams remain a problem and that the legislation that the Commission helped put in place last year better protects consumers in North Carolina.
Education Director Video Replaced with New Course: The Director of Education & Licensing provided an update on the project to replace the existing 15-minute Education Director (ED) video with expanded content to include more how-to information. They noted that it was a collaborative effort involving many staff from the Education division. The new course can be used for training new EDs, as a refresher video for seasoned EDs, and as a training tool for Education Provider staff.
Tech Survey Report: The Director of Education & Licensing provided a report on the tech survey completed by licensees. A link to the survey was provided to licensees in the last e-Bulletin. Licensees would like more information from the Commission on law and rule compliance in connection with various tech issues in either the Update course or the eBulletin. They suggested that the Update course and eBulletin include a tech corner in the future.
Larry A. Outlaw Excellence in Education Award: The Director of Education & Licensing reported that the nomination forms have been made available for the Larry A. Outlaw Excellence in Education Award. The due date for nominations is January 15. The Director will send out meeting date and time options to schedule the next Education Task Force meeting to discuss the award nominations.
Report on License Numbers: As of December 1, 2022, there are 124,657 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 18, 2023, at the Embassy Suites by Hilton Wilmington Riverfront in Wilmington 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 10 licenses, left cases pending involving 2 licensees, reprimanded 2 licenses, approved the issuance of 1 license on provisional status, continued consideration in a case involving 2 licensees, closed cases without action against 5 licensees, and ordered hearings in cases involving 22 licensees. Following a hearing, the Commission permanently revoked 1license.
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 | |||
October 2022 | November 2021 through October 2022 | October 2022 | November 2021 through October 2022 | |
# Tested | 443 | 6338 | 13 | 309 |
% Pass both sections | 51% | 48% | N/A | N/A |
% Pass National section | 81% | 78% | N/A | N/A |
% Pass State section | 55% | 51% | 54% | 33% |
Draft Rule Text : Staff reviewed with the Commission the text for proposed amendments to Commission rules. Staff indicated that rule text would need to be adopted by the Commission by January 18 in order to publish any proposed rule changes for public comment in time for a July 1, 2022 effective date.
| Rule Number | Current Rule Name | Possible revisions |
| 21 NCAC 58A .0104 | Agency Agreements and Disclosure | After discussion, the Commission directed staff to make revisions to the rule that would prohibit brokers from lending money to future clients in exchange for future listings. Staff will bring revised language to the December meeting. |
| 21 NCAC 58A .0113 | Reporting Criminal Convictions and Disciplinary Actions | Mr. Malarney asked staff to research the use of the term court-martial versus courts-martial. |
| 21 NCAC 58A .0114 | Residential Property and Owners’ Association Disclosure | Mr. Black suggested that the Instructions to Brokers at the top of page 9 include language to the effect that a broker shall discover and disclose any material facts about the subject property that the broker knows or reasonable should know. Mr. Lawing would like to replace the word “considered” in question 2 to, “designated” or something similar denoting that an official determination has been made. As to the questions relating to the heat and cooling sources, Ms. O’Connor suggested addressing whether the age relates to the entire unit or a component of the unit and add a space for explanation when necessary. Ms. O’Connor and Mr. Black suggested that question 21 be separated into two questions: 1) Is the dwelling equipped with an elevator, and 2) Is there any problem, malfunction, or defect with any component of the elevator system. Ms. Baer is going to reach out to Mr. Jim Slaughter regarding his suggestion to eliminate question 37 from the disclosure. She will report back to the Commission at the December meeting. |
| 21 NCAC 58A .0301 | Original License Application | Ms. Baer suggested removing the word “original” from line 12 of page 15. |
| 21 NCAC 58A .0505 | Reinstatement of a License | Mr. Malarney noted that line 29 may need a space between “post” and “licensing”. Ms. Baer suggested removing the word “original” from line 2 of page 18. |
| 21 NCAC 58A .1705 | Attendance and Participation Requirements | No revisions. |
| 21 NCAC 58A .1708 | Equivalent Credit | No revisions. |
| 21 NCAC 58A .1711 | Continuing Education Required of Nonresident Brokers | No revisions. |
| 21 NCAC 58B .0202 | Public Offering Statement Summary | No revisions. |
| 21 NCAC 58H .0202 | Application for Education Provider Certification | No revisions. |
| 21 NCAC 58H .0216 | Limited Education Provider Petition for Reconsideration | No revisions. |
| 21 NCAC 58H .0302 | Application and Criteria for Instructor Approval | No revisions. |
| 21 NCAC 58H .0307 | Limited Instructor Petition for Reconsideration | No revisions. |
General Update and BICUP Course Topics: Staff reviewed with the Commission the list of possible 2023-2024 Update course topics based upon suggestions provided by Commission members, staff, licensees, educators, and the Education Advisory Committee to date. The Commission suggested adding the updated Diversity Equity and Inclusion (DEI) Statement in the course material, and always including a topic related to DEI and/or Fair Housing, adding more information about permits under material facts or renovations as staff determines useful, and in the BICUP, including information about the 14-day requirement to respond to Letters of Inquiry from the Commission. The Commission suggested reducing the number of the Top Frequently Asked Questions from Licensees and the Top Complaints to better assure there is sufficient time for the content.
Larry A. Outlaw Excellence in Education Award: The Director of Education and Licensing presented the proposed criteria for the 2023 Larry A. Outlaw Excellence in Education Award and the nomination guidelines, noting that it was unchanged from the prior year. The Commission accepted the criteria and process for the award. Staff will begin seeking nominations in December.
Educators Conference: The Director of Education and Licensing reviewed with the Commission the proposed budget and agenda for the Educators Conference that is scheduled for on March 21, 2023. The Commission accepted the proposed budget and agenda for the Educators Conference, except that the Commission reduced the registration fee to $49.00.
Report on License Numbers: As of November 1, 2022, there are 123,707 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 14, 2022, 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 voted to extend the deadline to satisfy conditions in a case involving 1 licensee, left cases pending involving 3 licensees, approved the issuance of 1 license on provisional status, denied the motion for extension of time in a case involving 1 licensee, and ordered hearings in cases involving 17 licensees. Following a hearing, the Commission permanently revoked 1 license.
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: 7; total approved: 4.
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 2022 | October 2021 through September 2022 | September 2022 | October 2021 through September 2022 | |
# Tested | 468 | 6426 | 19 | 323 |
% Pass both sections | 53% | 47% | N/A | N/A |
% Pass National section | 79% | 77% | N/A | N/A |
% Pass State section | 56% | 50% | 53% | 33% |
Report of the Law & Policy Committee: The Commission reported that the Law & Policy Committee met on Friday, September 30, 2022, and provided a brief overview of the meeting.
General Update and BICUP Course Topics: Staff reviewed with the Commission the list of possible 2023-2024 Update course topics based upon suggestions provided by Commission members, staff, licensees, educators, and the Education Advisory Committee to date. The Commission would like there to be information in the Update courses for BICs that do not oversee other agents and suggested adding equity issues and fair housing to the list of topics. Staff stated that they would present a revised exhibit in
November with a list of topics, and will then send a survey to members to vote on which topics they would like for the Update courses. In December, the Commission will vote on the final topics. The Commission stated that staff should consider expanding topics to include commercial real estate issues since the Update is geared toward the residential broker. The Commission commended staff on the great job they did working with the Education Advisory Committee.
Report on License Numbers: As of October 1, 2022, there are 122,951 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 16, 2022, and can be viewed via Zoom online video.
Pending Cases: The Commission entered into consent agreements to suspend 5 licenses, closed cases without action against 2 licensees, permanently revoked 1 license, accepted the voluntary surrender of 3 licenses, denied the motion for extension of time in a case involving 1 licensee, 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: 11; total approved: 4.
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 2022 | September 2021 through August 2022 | August 2022 | September 2021 through August 2022 | |
# Tested | 426 | 6474 | 33 | 326 |
% Pass both sections | 46% | 46% | N/A | N/A |
% Pass National section | 77% | 77% | N/A | N/A |
% Pass State section | 48% | 48% | 33% | 30% |
Legislative Report: The Director of the Regulatory Affairs Division reviewed with the Commission 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.
Annual Rulemaking Proposals: Staff reviewed with the Commission proposed rule topics for consideration in connection with its annual rulemaking. They indicated that rule text would need to be adopted by the Commission by December in order to publish any proposed rule changes for public comment in time for a July 1 effective date.
The Commission made the following recommendations regarding the presented rule changes:
Affected Rule(s) / Topics | Motion |
21 NCAC 58A .0110 Item 1, Exhibit 7 | Following discussion, the Commission took no action. Miss Bode was not present for the discussion or decision in this matter. |
21 NCAC 58A .0113 Item 2, Exhibit 7 | Upon the motion of Mr. Malarney, the Commission approved drafting rule text that would clarify that military court-martial convictions are reportable offenses. Miss Bode was not present for the discussion and decision in this matter. |
21 NCAC 58A .0114 Items 3-6, Exhibit 7 | Upon the motion of Mr. Lawing, the Commission approved drafting rule text to update the Residential and Owners Association Disclosure Statement by 1) including in the initial instructions of the form a description of an owner and a broker’s duties during completion, 2) clarifying what is meant by ‘age of system’ for the dwelling’s heating and cooling systems in Questions 10 &11, and 3) adding an elevator disclosure to comply with S.L. 2022-56 that requires elevator safety requirements for residential accommodations. Upon a separate motion by Mr. Lawing, the Commission also voted to consider as part of its rulemaking process the elimination of questions 37 and 38 from the Residential and Owners Association Disclosure Statement. Miss Bode was not present for the discussion and decision in this matter. |
21 NCAC 58A .0301 Item 7, Exhibit 7 | Upon the motion of Mr. Malarney, the Commission approved drafting rule text that would clarify that military court-martial convictions are reportable offenses. Miss Bode was not present for the discussion and decision in this matter. |
21 NCAC 58A .0505 Item 8, Exhibit 7 | Upon a motion from Mr. Lawing, the Commission drafting rule text that would allow nonresident brokers that have been expired, revoked, or surrendered for more than two years to reinstate their license by filing an original application pursuant 21 NCAC 58A .0511. Miss Bode was not present for the discussion and decision in this matter. |
21 NCAC 58A .1705 Items 9-10, Exhibit 7 | Upon the motion of Mr. Lindsey, the Commission approved drafting rule text to change the term ‘course sponsor’ to ‘education provider.’ Upon the motion of Ms. O’Connor, the Commission approved drafting rule text to eliminate equivalent credit options for CE and Postlicensing courses. The Commission took no action on staff recommendations to consider changing the application deadline for equivalent credit to May 15 instead of June 17. |
Spring Educators Conference: The Director of Education and Licensing reported that the Spring Educators Conference is scheduled for Tuesday, March 21, 2023, at the McKimmon Center at NC State University in Raleigh. Staff anticipates attendance by 300-350 educators. The Director will share this information to those attending the upcoming NCREEA conference.
August Education Town Hall: The Director of Education and Licensing provided a report on feedback from the August 22, 2022, Education Town Hall. The Director noted that it was a positive, professional event allowing participants to share comments and concerns.
Education Committee Meeting: The Director of Education and Licensing stated he met with the Education Committee and the Commission. The Committee reviewed the new license exam reports for use by education providers; these reports provide real-time data regarding students’ performance, as opposed to the quarterly reports previously provided. The Director and Commission commended the IT Staff on their work on the license exam reports. The reports will be posted on the Commission website immediately. The Director reported also that the Education Committee selected members of the Education Advisory Committee.
Report on License Numbers: As of September 1, 2022, there are 121,949 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 12, 2022, and can be viewed via Zoom online video.