Commission Meeting of September 14, 2022

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:

  • Active Brokers 80,989
  • Active Provisional Brokers 5,724
  • Brokers-in-Charge 17,406
  • BIC-Eligible Brokers 5,547
  • Inactive Brokers 24,763
  • Inactive Provisional Brokers 6,853
  • Firms 15,930
  • Limited Nonresident Commercial Brokers 267

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.