Commission Meeting of December 14, 2022

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:

  • Active Brokers 82,655
  • Active Provisional Brokers 5,702
  • Brokers-in-Charge 17,678
  • BIC-Eligible Brokers 5,675
  • Inactive Brokers 25,413
  • Inactive Provisional Brokers 7,459
  • Firms 16,314
  • Limited Nonresident Commercial Brokers 275

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.