NCRealtors® Leadership Academy attended August Commission meeting
Each year the North Carolina Real Estate Commission welcomes the members of the NCRealtors® Leadership Academy to attend a Commission meeting and receive an explanation of the process as they observe the course of business. As these possible future leaders in the real estate industry become acquainted with the regulatory side of the business, it is our hope that this educational experience will add understanding and depth to their practice, and that they will share what they learn with others.
Do you know about the recovery fund?
Consumers whose funds have been converted by a licensed NC broker may be able to qualify for some financial relief through the NCREC Education and Recovery Fund. View this video and the following Commission Rules for more details:
For more information on the process for qualifying and applying for a payment from the recovery fund, and the Fund limits, view Article 2 of the Real Estate License Law.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting this month is September 13th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Staff Appreciation and Achievements
During the August Commission meeting, a staff appreciation luncheon was held to thank the staff for their enthusiastic service to NCREC and the public. Several service awards were given in gratitude for 5, 10 and 15 years of dedicated service. Special congratulations to Janet Thoren, who was awarded the 25 year service award, and Miriam Baer who received the 35 year service award. Sincere thanks to all of our valued staff, you are appreciated.
Is No Due Diligence Period Allowed In a Contract?
As a result of a very competitive real estate market, buyers have been coming up with new strategies to attract the seller to their offer over others. One such strategy that has recently evolved in NC is a no due diligence period offer, in which the buyer offers a substantial due diligence fee and earnest money deposit, but does not require a period of time to investigate the property to change their mind and get their earnest money back. Calls have come in asking if this is allowed. Buyers and sellers can agree to any legal terms that they wish in a contract. It is recommended to consult an attorney about the risks of this type of offer, and to understand the potential losses of both the due diligence fee and earnest money if the buyer later changes their mind.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting next month is September 13th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Wire Fraud Series
Last week the final wire fraud seminar was held in Asheville. These courses were designed by the Commission, the NC State Bar and Investors Title, to debunk myths about wire fraud, teach prevention tactics, discuss liability and reporting to authorities, and review recovery data. If you were unable to attend one of these courses and would like information or resources on wire fraud, visit these links to assist you in wire fraud prevention and/or recovery.
C.Y.B.E.R. – Overview of how to assess wire fraud risk and establish policies for prevention.
S.I.M.P.L.E. – Seller and notary identity verification methods and red flags.
W.I.R.E. – Process and worksheet to verify wires.
F.A.S.T. – Step by step plan and worksheet to take quick action if wire fraud is discovered.
Do you know what a CoBRA flood zone means?
A CoBRA zone is an area designated by the Coastal Barriers Resources Act. Properties located in CoBRA zones are not able to obtain federal flood insurance, or federal funds for mortgage products. It is important to research properties before placing an offer to make sure that they qualify for federal funding if needed. Failure to do so could result in the loss of due diligence fees, if the inability to obtain funding/insurance is discovered after entering into a contract to purchase a property. See page 410 (9-19) of this document from fema.gov for more details about CoBRA zones.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting this month is August 16th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
NCREC is proud of our own award winners at the National REEA Conference.
Commission Member Cindy Chandler and Legal Education Officer Kizzy Crawford-Heath received high honors at the National Real Estate Educators Association conference last month in Las Vegas. The 2023 Classroom Education Program of the Year Award was bestowed on Chandler, DREI, for her work on the commercial version of the Commission’s mandatory Update course. The 2023 Rising Star Award, was bestowed upon Crawford-Heath, DREI, for her contributions at REEA conferences and the DREI summit.
HOA/POA Lawsuit Concerns?
The existence of a lawsuit involving a Homeowner’s or Property owner’s association (HOA/POA) that affects the subject property is a material fact that must be discovered and disclosed by licensed real estate brokers in NC. If you are considering a property that is subject to an association, you should ask the association directly if there are any lawsuits that could affect the property. You may also ask the licensed brokers involved in the transaction, if any, to assist you with gathering that information. Depending on the outcome of a lawsuit, assessments could be levied against the property owners to cover the legal expenses incurred.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting next month is August 16th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Update Instructor Seminar
Last month we held our first two In-person Update Instructor Seminars for the 23/24 license year in Raleigh and Charlotte. They were a great success! This course is for NCREC approved instructors only. There is no fee for the course, and no CE or Instructor credit will be awarded. There are 5 remaining sessions scheduled both in-person and by zoom, view and register for them here.
Small Claims Court Process
Buyers often ask how they can pursue a seller if they believe they are entitled to a refund of earnest money or due diligence fees paid. For an amount less than $10,000, the claim can usually be handled before a magistrate in small claims court. In NC, depending on the county, the maximum amount that can be claimed in small claims court is between $5,000 to $10,000. If your claim is greater than the small claims amount but less than $25,000, the case needs to be filed in district court. If greater than $25,000, your case must be filed in superior court. The plaintiff will need 3 copies of their complaint, 3 copies of the Magistrate Summons, and a filing fee of $96.00 to file a case in small claims court, although local requirements may vary. More information and forms can be found on the NC Judicial Branch website.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting this month is July 19th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Renewal Update – Last Chance!
All broker and firm licenses must be renewed by June 30th. Provisional brokers, brokers, BIC’s, firms, limited nonresident commercial brokers, all licenses must be renewed by 6/30. Failure to renew will cause your license to expire. If a license expires, all brokerage activity must cease. No actions that require a real estate license are allowed (including referrals). If you allow your license to expire, and wish to practice real estate in the future, you will have to reinstate and reactivate your license. This will require several steps, which get more involved the longer you wait. Brokers can check their renewal status by logging in under the licensing tab on our website, and get answers to the most frequently asked questions in this month’s eBulletin article.
Do I need a real estate license to co-host an Airbnb?
We receive calls daily asking if co-hosting property on Airbnb requires a real estate license. If you are performing cleaning, maintenance, recommending restaurants or local attractions, these type of activities do not require a license. If you are handling funds of others, negotiating lease terms, or collecting rent or deposits, these activities require a real estate license. Be careful of the terminology you use. Do not call your fees a ‘commission’ or a ‘management fee’ as this implies that you have a license that enables you to receive those fees. Instead, you should consider using terms such as ‘service’ or ‘maintenance’ fees or something comparable, to prevent confusion about the services you are providing. View GS 93A-2(a) for a definition of a real estate broker and a list of activities requiring a real estate license.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting next month is July 19th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
All renewals due by 6/30.
All broker and firm licenses must be renewed by June 30th. Brokers can check their renewal status by logging in under the licensing tab on our website, and get answers to the most frequently asked questions in this month’s eBulletin article.
Questions about estates?
We receive many calls with questions about estates. It is possible for a licensed broker to list a property for sale on behalf of an executor or administrator of an estate. However, everyone involved must follow NC law regarding probate of an estate. Advice from a probate attorney is recommended for both the broker and executor or heir. View this link for details on estates and the probate process.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting this month is tomorrow here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Only 10 days for Continuing Education
The continuing education (CE) deadline is quickly approaching. All GenUp/BICUp and Elective courses must be completed by June 10th to remain actively licensed on July 1st. Visit the Education tab on our website ncrec.gov, and select Search CE Course Schedule. Enter your preferred search parameters to find available classes near you.
Bedrooms, Occupancy Limits and Square Footage
Recently we have received calls with questions about the definition of a bedroom, e.g., if it has to have a closet, door or even 4 walls. One consideration for the bedroom question is what the sewer or septic occupancy will allow. City/county sewer and private septic systems have limits on occupancy based on what the system has been designed to handle, and you cannot advertise more bedrooms than the occupancy limit. Similarly there have been calls about square footage, and what counts and what does not for valuation purposes. See this Bulletin article for details on the difference between NCREC Residential Square Footage Guidelines vs. ANSI Standard to help answer this question.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting next month is June 14th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Renewal is Open
The renewal portal for real estate licenses is now open at NCREC. All broker, firm and LNCL licenses must be renewed no later than 11:59 PM on June 30th. On the home page of the Commission’s website, choose the Licensing tab and scroll down to Licensee Login or Firm Login to renew. Once you have logged in, click the link “Renew Your License” and follow the instructions.
Cemetery and Grave Disclosures
Consumers and brokers have contacted NCREC with questions about required disclosures concerning graves on properties. Graves on private property, including graves with only urns, may have an easement so that future family descendants can visit them. There are rights that family members may have to enter the property to visit the gravesite, with or without the consent of the property owner. Graves should be on a survey and marked by GIS in the county. Graves can be removed, but it is a difficult process and county ordinances must be followed. For these reasons, graves are a material fact that an NC broker should discover and disclose to any interested party to the transaction. View North Carolina GS Chapter 65 for more information on NC laws regarding cemeteries.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting this month is tomorrow May 17th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Interested in obtaining a real estate license?
Take a look at the syllabus for the Broker Prelicensing Course that is posted on our website. It is the basis for all NC Prelicensing courses and has recently been updated to reflect current laws, rules, and forms. Available education providers and course schedules are searchable under the Education tab on our website.
Solar Panel Loan Assumption
There have been several questions about solar panels in recent consumer calls. It is important to note that solar panels are typically attached to the property in a permanent manner and are generally considered to be a fixture that will remain with the home. If the parties use the standard residential contract form, it states: “ALL EXISTING FIXTURES ARE INCLUDED IN THE SALE AS PART OF THE PURCHASE PRICE, FREE OF LIENS, UNLESS EXCLUDED IN SUBPARAGRAPHS (d) OR (e)”. This means that if there is an existing lien on the solar panels, the seller should pay it off prior to or at the sale of the home, unless the parties agree otherwise in their contract. If a seller requires, as a condition of the sale, for the buyer to assume the seller’s responsibility for a solar panel lien, this is a material fact that should be disclosed to the buyer prior to their making an offer, including the lien amount they are to assume.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting tomorrow is in Edenton at the Historic 1767 Chowan County Courthouse. A Zoom link will be available at ncrec.gov in the morning.