Commission Meeting of August 12, 2020

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

Pending Cases: The Commission entered into consent agreements to suspend three licenses; closed its case without action against one licensee; accepted the permanent voluntary surrender of one license; and ordered hearings in cases involving four licensees.

License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 33; total approved: 27.

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


Individuals Tested for the First Time

Took prelicense course

Hold license from another state


July 2020

August 2019 through

July 2020


July 2020

August 2019 through

July 2020

# Tested

971

7248

20

199

% Pass both sections

35%

50%

N/A

N/A

% Pass National section

68%

83%

N/A

N/A

% Pass State section

37%

51%

40%

36%

Proposed Rule Text for Distance and Synchronous Learning Standards: The Commission reviewed the proposed rule text for distance and synchronous learning standards. Changes had been made since the Commission’s July 2020 meeting, when the draft rule text was initially provided to the Commission for review. The Commission voted to publish the draft text in the North Carolina Register at the appropriate time.

Fiscal Note: The Commission reviewed a fiscal note analysis for the proposed rules concerning distance and synchronous learning standards. The Commission was advised that a fiscal note must be filed when the anticipated fiscal impact of the rule changes exceeds $1,000,000.00. It was noted that even with an analysis including generous cost estimates, the fiscal impact of the rule changes do not reach the threshold. It was pointed
out to the Commission that the rule changes are primarily adjustments to existing rules, and that only the cost of the adjustment, not the entire rule, must be considered. The Commission was advised that if the note is attached to the rulemaking, it will be reviewed by the North Carolina Office of State Budget and Management in due course and that the timeframe for the review is uncertain. If the fiscal note is not attached, the rulemaking can proceed as scheduled without delay, but the rule is subject to an objection later based upon the lack of a fiscal note, and any such objection would also delay the process. The Commission voted to proceed with the rulemaking process without attaching a fiscal note.

Federal Background Checks: The Commission reviewed research on other states’ use of federal background checks and consideration of convictions for driving while impaired (aka driving under the influence) in connection with licensing.

Legislative Report: The Commission reviewed the Legislative Report specifically, Senate Bill 866/S.L. 2020-39, and congratulated Mr. Thomas Lawing and Ms. Cindy Chandler on their reappointments to the Commission.

Report on Instructor and License Examination Performance: Staff reported on instructor and school (now education provider) license examination performance over the prior fiscal year, including the probable impact of COVID-19 in the fourth quarter. The Commission voted to publish on its website the performance data for the entire fiscal year combined, and for the first three quarters of the fiscal year.

CE Deadline: At the request of the NC Real Estate Educators Association, the Commission again considered whether to extend the CE deadline beyond the current extension of September 30, 2020. The Commission voted to keep the deadline of September 30, 2020, and asked staff to propose at the September meeting parameters for an accommodation for those licensees who might need an extension.

Report on License Numbers: As of August 1, 2020, there are 110,125 brokers and firms licensed by the Commission, as follows:

  • Active Brokers 74,386
  • Active Provisional Brokers 4,015
  • Brokers-in-Charge 17,080
  • BIC-Eligible Brokers 4,530
  • Inactive Brokers 21,800
  • Inactive Provisional Brokers 5,922
  • Firms 13,681
  • Limited Nonresident Commercial Brokers 258

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