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 July 17, 2024
Pending Cases: The Commission entered into consent agreements to suspend 2 licenses, accepted the permanent voluntary surrender of 2 licenses, ordered hearings in cases involving 12 licensees, closed cases without action against 6 licensees, authorized injunctive relief involving 1 licensee, and denied the issuance of 1 real estate broker license.
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 based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 14; total approved: 3; total approved with conditions: 5; continued: 5; 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
Allan R. Dameron Legal Internship Award: The Commission presented the Allan R. Dameron Legal Internship Award to Caroline Plumides – Carolina Central University and Gabrielle Sigmon – University of North Carolina at Chapel Hill.
Ethics Commission SEI Evaluation Letter: The Executive Director read into the record of the Commission’s meeting the results of the Evaluations of the Statements of Economic Interest of Commission members Aceto, Black, Lindsey, Malarney, Mallette, O’Connor, and Ramseur by the North Carolina State Ethics Commission; namely, that the Ethics Commission did not find an actual conflict of interest but did find the potential for a conflict of interest, and that the potential conflict does not prohibit their service on the Commission. The Executive Director also noted that no biennial evaluation was required for Commission members Bullard and Fox.
FY2024-25 Draft Project Summaries: The Executive Director presented the draft project summaries for the coming year to the Commission, including staff suggestions, and Vice Chair Lindsey’s suggestions. Upon a motion from Mr. Aceto, the Commission voted to remove item 4, DEI Licensee survey, from the staff draft projects list. Mr. Lindsey, Mr. Malarney, Ms. Mallette, and Ms. O’Connor voted against the motion. The Director of Regulatory Affairs gave an overview of the software the Regulatory Affairs staff are already using to assist with audits and investigations, especially trust accounts. Given this information, Mr. Lindsey agreed that no additional project is needed at this time on this topic. Mr. Ramseur suggested educating licensees on the availability of third-party options to monitor trust accounts. The Executive Director noted that while licensee disciplinary histories are currently digitized and attached to the licensee’s record, they should be searchable and this project is set out on the staff list as item #12. After a robust discussion on the process for complaints declined by staff, Mr. Lindsey withdrew his request to make this a project on the 2024-25 Project Summaries list. As to the suggestion to strengthen enforcement of unlicensed practice, the Executive Director responded that eliminating the limited nonresident commercial license is a topic for possible rulemaking and will come to the Commission in September in that context and that wholesaling may be a topic for proposed legislation. The Commission has no authority to regulate homeowner associations. Upon a motion from Ms. O’Connor, the Commission agreed to accept the Project Summaries as presented with the exception of project number 4.
Monthly Financial Report, Quarterly Investment, and Education & Recovery Fund Report: The Commission received the monthly Financial Report, Quarterly Investment Report, and Education & Recovery Fund Report presented by the Chief Financial Officer for the period ending June 30, 2024.
FY2024-2025 Projected Receipts and Disbursements: The Chief Financial Officer presented the FY2023-2024 Projected Receipts and Disbursements. The Chief Financial Officer noted that the Finance Committee (Mr. Lindsey and Mr. Ramseur) had earlier reviewed the projections in detail. Upon the motion of Mr. Lindsey on behalf of the Finance Committee, the Commission accepted the Projected Receipts and Disbursements for the Fiscal Year Ending June 30, 2025, as presented.
ARELLO Sponsorship: Upon a motion from Mr. Fox, the Commission approved a $7,500 sponsorship for the installation of the Director of Regulatory Affairs as the 2025 ARELLO President. Mr. Black was not present for the vote.
Appeals: The Director of Regulatory Affairs reported that Ms. Joellen Shipman’s appeal of her disciplinary case to Superior Court was dismissed. She has since filed a notice of appeal with the North Carolina Court of Appeals. Staff reported that it appears Ms. Shipman has missed her window to appeal to the Court of Appeals. The Director of Regulatory Affairs will keep the Commission apprised of the progress of that appeal. The appeal of the MV Realty case is ongoing.
Legislative Report: The Executive Director 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.
Renewals: The Director of Education and Licensing provided a report on the 2024 Renewals noting that following closeout on July 1, 2024, 89% of brokers and 86% of firms renewed their licenses, which is slightly below previous years. A total of 3,953 licensees were marked inactive due to a CE deficiency, and 12,257 licenses expired due to failure to renew. The Director of Education and Licensing noted that in the last 2 weeks, License Services has reinstated 1,844 brokers and firms. The Director of Education and Licensing commended the Technology Services Manager and the Chief Technology Officer on the detailed reports they provided throughout the renewal period.
Education Provider and Instructor License Examination Performance: The Director of Education and Licensing provided a report on Education Provider and Instructor License Examination Performance, noting that there were no instructors that performed under the 40% threshold and only one Education Provider who is under the threshold. The Education Provider in question is planning to retire.
Year-End CE Student Survey: The Assistant Director of Education and Licensing provided a report on the year-end CE student survey noting that 6,503 surveys were returned over the course of the year. The overall result was positive. Some feedback was received that the sound and video quality was poor, and this has been rectified for the 24-25 Update in the AI videos. Ms. O’Connor commended the staff on the new Update Course, and the creation of the GENUP and BICUP with clear differences between the two courses. Mr. Bullard asked if the Commission could teach Civics. The Executive Director noted that limited civics can be taught in Commission courses if it relates to consumer protection in brokerage practice.
Fair Housing Conference: The Director of Education and Licensing noted that he and the DEI Officer attended a Fair Housing conference. The Director noted that the presentations were excellent and that there were discussions about AI and meta tags in advertising, along with presentations from HUD, the CFPB, and other federal agencies. The US Department of Justice is working on numerous land scams targeting immigrants. The Director of Education and Licensing, the DEI Officer, and the Assistant Director of Education and Licensing will use the information obtained for educational purposes for licensees and the public.
Report on License Numbers: As of July 1, 2024, there are 115,355 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 78,465
Active Provisional Brokers – 4,019
Brokers-in-Charge – 16,601
BIC Eligible Brokers – 6,766
Inactive Full Brokers – 21,485
Inactive Provisional Brokers – 5,354
Firms – 15,212
Limited Nonresident Commercial Brokers – 193
Next Commission Meeting: The next Commission meeting will be held at 9:00am, August 14, 2024, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.
Director of Education and Licensing, and Diversity, Equity and Inclusion Officer attend National Fair Housing Conference
Len Elder, the Director of Education and Licensing and Minerva Mims, Diversity, Equity, and Inclusion Officer, attended the National Fair Housing Alliance (NFHA) Conference in Washington, DC this month. The conference theme was “Housing Equity Now: Building an Inclusive and Just Future.” The NFHA works to eliminate housing discrimination and ensure equitable housing opportunities for all people and communities through its education and outreach, member services, public policy, advocacy, housing and community development, tech equity, enforcement, and consulting and compliance programs.
Dangers of Unpermitted Spaces in a Property
A broker’s failure to disclose that a property has an unpermitted space is a common complaint received at the Commission. It is important that consumers understand the dangers of unpermitted spaces in a property, and why an inspection and corrective action is recommended for your protection. Watch this video, Dangers of Unpermitted Space, to learn about possible fire and flood hazards if construction work in a property is not properly permitted.
To learn more about the types of projects in a home that require permits, contact your local municipality’s planning and development office for details. We strongly recommend that you become knowledgeable on the risks associated with purchasing a property without the appropriate permits.
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 next meeting is August 14th at the Commission building, 1313 Navaho Drive, Raleigh, NC. A Zoom link will be available at ncrec.gov on the day of the meeting.
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 19, 2024
Pending Cases: The Commission entered into consent agreements to suspend 5 licenses, accepted the permanent voluntary surrender of 2 licenses, ordered hearings in cases involving 5 licensees, closed cases without action against 3 licensees, reprimanded 1 licensee, and approved the issuance of 1 real estate broker license.
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 based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 13; total approved: 5; total approved with conditions: 5; continued: 3.
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
2024-2025 Business and Related Insurance Proposals: The Executive Director presented the Insurance Report, including options for carriers, coverage, and costs thereof for the Commission’s business. The Director noted that the Finance Committee (Mr. Lindsey and Mr. Ramseur) had met to review the coverage in detail and recommended its approval without changes. Upon the motion of Mr. Lindsey, the Commission voted to purchase or renew certain insurance policies, each of which is more particularly described in the report.
Mutual Agreements with Various Occupational Licensing Boards: The Executive Director reported that the Commission has been approached by other occupational licensing boards regarding Emergency Disaster Plans. The Commission has a plan in place that includes a mutual agreement with the Appraisal Board that each board can use the other’s space if their office is closed following a disaster. Now, other boards have asked for a similar partnership. Upon a motion from Mr. Black, the Commission authorized the Executive Director to explore agreements with other boards, with any such agreement first being approved by the Commission.
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending May 31, 2024. Mr. Lindsey noted that the Finance Committee met and reviewed the preliminary budget for FY24-25. The Commission will consider a proposed budget at its July meeting. Mr. Black commended the Accountant Executive for reminders to the Commission about expense reimbursement.
Appeals: The Director of Regulatory Affairs reported that following Ms. Joellen Shipman’s unsuccessful appeal of her disciplinary case to Superior Court, she filed a notice of appeal with the North Carolina Court of Appeals. The Director of Regulatory Affairs will keep the Commission apprised of the progress of that appeal. The appeal of the MV Realty case is ongoing in Superior Court.
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.
Renewal Progress: The Director of Education and Licensing reported 97,620 licensees (75%) have renewed their licenses and that renewal is on pace with recent prior years. Regarding CE, 92% of brokers have completed the required courses. There are 6,120 licensees that are CE deficient. The Director of Education and Licensing noted that last year, there were 21,934 phone calls to the License Services section at this time of year, and this year there were 11,511 phone calls received during the renewal period to date. The Director of Education and Licensing commended the IT staff and the License Services staff as well as those who pre-planned and worked renewals. The Director of Education and Licensing stated that there are 500 instructors and none of the instructors will be limited due to performance. One Education Provider will be limited but is retiring.
Update Course Development: The Assistant Director of Education and Licensing provided a brief report on the Update course development, noting that the 2024-2025 Update course is complete. The theme for the Update is “Play to Win” and is powered by AI. The Assistant Director shared a sample of the Update PowerPoint presentation including an introductory video.
Ethics Course: The Director of Education and Licensing reported that the ethics course the Commission members and the Executive Director are required to take bi-annually has been reformatted using Synthesia. He noted that the Consumer Resource Officer and the Communications Officer completely revamped the ethics course with AI. The training should take about three-and-a-half hours to complete. The Chief Technology Officer will provide a link to the Commission Members to take the course. Mr. Bullard commended staff for handling questions to the members that they ethically cannot respond to and assisting licensees with those matters.
License Exam Performance Reporting: The Director of Education and Licensing reported that after a discussion with the Commission’s Software Engineer, staff recommends building a report for persons interested in education provider’s pre-licensing course pass rates that provides real-time data for any period of time the viewer is interested in researching. Creating a user interface for the data will be a proposed project for the 24-25 fiscal year.
Election of Commission Officers for period August 2024 to July 2025: Ms. Mallette reported that the Nominating Committee nominated Mr. Aceto to serve as Vice-Chair and Mr. Lindsey to serve as the Chair for 2024-2025. Upon the motion of Ms. O’Connor, the Commission elected Mr. Aceto as the 2024-2025 Vice Chair and Mr. Lindsey as the 2024-2025 Chair of the Commission. Mr. Fox was not present for the vote.
BIC Span of Control Workgroup: Mr. Lindsey provided a brief report on the progress of the BIC Span of Control Workgroup noting that the workgroup has held eight meetings, completed the discussion of ten items that came out of the BIC Focus Groups, and voted on recommendations relating to four of those items. The workgroup will bring a full report to the entire Commission when all items have been considered.
Report on License Numbers: As of June 1, 2024, there are 112,196 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 86,530
Active Provisional Brokers – 5,047
Brokers-in-Charge – 18,359
BIC Eligible Brokers – 6,483
Inactive Full Brokers – 25,666
Inactive Provisional Brokers – 8,240
Firms – 17,792
Limited Nonresident Commercial Brokers – 276
Next Commission Meeting: The next Commission meeting will be held at 9:00am, July 17, 2024, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.
Why is renewal important to consumers?
Licensed real estate brokers and firms who do not renew their licenses by June 30th , will have expired licenses on July 1st. This means that they are no longer licensed to practice real estate and must cease all brokerage activities immediately. So, if a consumer has an agency agreement with a firm that goes inactive, the agency agreement will no longer be enforceable, as the broker can no longer represent the consumer.
NCREC releases, “Careers in Real Estate: An Inside Look”
As a part of an initiative to reach consumers with information about real estate related careers and how to get started with obtaining a real estate license, NCREC created this video. “Careers in Real Estate: An Inside Look”. Viewers will receive an inside look at several real estate and related career opportunities, from home inspectors and attorneys to appraisers and property managers. Visit our YouTube channel to watch this video and many other new resources that have been created for consumers and brokers.
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 next meeting is July 17th at the Commission building, 1313 Navaho Drive, Raleigh, NC. A Zoom link will be available at ncrec.gov on the day of the meeting.
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 May 22, 2024
Pending Cases: The Commission entered into consent agreements to suspend 13 licenses, accepted the permanent voluntary surrender of 2 licenses, ordered hearings in cases involving 6 licensees, left cases pending involving 2 licensees, reprimanded 2 licensees, and authorized injunctive relief involving 2 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: 18; total approved: 4; total approved with conditions: 5; continued: 4; and postponed: 1; deferred: 4.
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
Medical/Dental Insurance Proposals: The Executive Director reported that she, the Chief Administrative Officer Administrator, and the Commission’s Personnel Committee (Mr. Bullard and Mr. Aceto), along with Commission Chair Malarney, met with Mr. Parham McNair, CLU, ChFC, to review options for continuation of health, and dental insurance benefits for staff. Upon the motion of Mr. Aceto on behalf of the Personnel Committee, the Commission voted to adopt the recommendation of the Personnel Committee and continue the current insurance coverage and benefits.
2024-25 Projects: The Executive Director noted that if any of the members have any projects, they would like to add to the 2024-25 projects list, she would like them to email her with their ideas.
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer Executive for the period ending April 30, 2024.
Appeals: The Assistant Director of Regulatory Affairs reported that Ms. Joellen Shipman appealed the Commission’s decision in her October hearing and the court denied her appeal. The Director of Regulatory Affairs reported that MV Realty has appealed the Commission’s decision and asked for a stay of the order. Outside counsel, Shannon Joseph of the Morningstar Law Group, appeared on the Commission’s behalf and the request for a stay was denied.
Legislative Report: The Executive Director and the Director of Regulatory Affairs reviewed the Legislative Report and summarized 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.
Residential Property and Owners’ Association Disclosure: The Executive Director presented the Commission with minor corrections to the Residential Property and Owners’ Association Disclosure (RPOADS). Upon the motion of Mr. Black, the Commission adopted the minor corrections to the RPOADS.
Law & Policy Committee Report: Mr. Fox and Ms. Mallette, the Law and Policy Committee, met on April 29 to discuss whether the Commission should pursue legislation authorizing the Commission to fine licensees. Ms. Mallette provided an overview of the Committee meeting noting the conversation was comprehensive. She reported that the Committee discussed the benefits of having the ability to assess fines in order to more efficiently adjudicate cases, the possible range of the amounts of fines, and the potential hurdles to get this type of legislation through the General Assembly. The Committee noted that the actual funds collected would not come to the Real Estate Commission but would go to the local County School Board of the applicable county. The Committee was mindful of the need for the Commission to be very thoughtful about how, when and on what issues it expends political capital. Ms. Mallette concluded that after consideration of the issue, while the Law and Policy Committee recognizes the benefits of the Commission having authority to fine, they do not believe that the timing is right to pursue necessary legislation given the other issues and changes currently occurring in the industry and the political capital that would be required. Upon a motion from Ms. Mallette, the Commission voted to cease further formal efforts to work towards legislation to grant the Commission the authority to fine licenses.
Local Rules: The Director of Regulatory Affairs presented proposed updates to the Commission’s local rules of practice before the Commission and provided an overview of the changes. Upon a motion from Mr. Lindsey, the Commission adopted the changes proposed.
Renewal Progress: The Director of Education and Licensing reported that 129,445 licensees need to renew by June 30, 2024, in order to maintain a license. He reviewed the comprehensive planning for renewals, including advance electronic notices and reminders in the Commission’s social media and the e-Bulletin. On the first day of renewals, License Services renewed 12,079 licenses, and as of Wednesday morning, 37,336 brokers have renewed. The Director of Education and Licensing commended the IT staff and the License Services staff as well as those who pre-planned for renewals.
Consumer Outreach: The Consumer Resource Officer provided an overview of current consumer outreach projects reviewing social media updates, outside events, and consumer presentations, and the creation of a “Careers in Real Estate: An Inside Look” video.
YouTube Videos: The Communications Officer provided a report on the updates made to the Commission’s YouTube video library and how it has been modernized and enhanced. She also demonstrated Synthesia software which creates videos. Mr. Lindsey suggested adding information on the complaint process to YouTube and the Commission’s consumer materials. He would also like to inform all the education providers about the availability of the YouTube library. He commended the staff on their engagement efforts.
Report on License Numbers: As of May 1, 2024, there are 129,445 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 86,109
Active Provisional Brokers – 5,173
Brokers-in-Charge – 18,316
BIC Eligible Brokers – 6,430
Inactive Full Brokers – 25,342
Inactive Provisional Brokers – 7,977
Firms – 17,723
Limited Nonresident Commercial Brokers – 271
Next Commission Meeting: The next Commission meeting will be held at 9:00am, June 19, 2024, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.
Fair Housing Highlight
The Commission’s Diversity, Equity, and Inclusion Officer and Consumer Resource Officer attended Fair Housing events in Gastonia and Charlotte in April. The events highlighted the needs of vulnerable populations such as the homeless, elderly people, single parents, youth aging out of the foster care system, disabled veterans, and other citizens. Data was provided highlighting the gap between the percentage of people in the US who have at least one disability versus the amount of housing accessible for disabled people. The following federal, state, and local resources were shared with attendees:
| Legal Aid Fair Housing Project (housing discrimination) | Legal Aid Housing (evictions, fair housing, foreclosures, housing discrimination, etc.) |
| Continuum of Care (established by HUD) (homelessness assistance) | United Way (housing, general assistance) |
| GLCImpact.com (homelessness) | NC211.org (emergency housing assistance, basic needs referral service of the United Way of NC) |
| John Chafee Grant (youth aging out of foster care) | Section 8 / Housing Choice Voucher (public rental assistance) |
| NCHFA Housing Partnership (funding supportive housing, accessibility modifications) | HUD-VASH Vouchers (housing assistance for veterans) |
It’s Renewal Time
Brokers must renew their licenses between May 15th-June 30th of every year in North Carolina. This license renewal requirement applies to all brokers (i.e., provisional, full, QBs, and BIC Eligible). QBs must renew their firm licenses between May 15th and June 30th. Remember, brokers do not have to complete CE before renewing their license. Review this eBulletin article for more details.
Are you interested in getting a real estate license? Watch this YouTube video, Overview of the Licensing Process, for steps to get started.
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 next meeting is May 22nd at the Commission building, 1313 Navaho Drive, Raleigh, NC. A Zoom link will be available at ncrec.gov on the day of the meeting.
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 April 24, 2024
Pending Cases: The Commission entered into consent agreements to suspend 17 licenses, accepted the permanent voluntary surrender of 9 licenses, ordered hearings in cases involving 18 licensees, left cases pending involving 3 licensees, reprimanded 2 licensees, closed cases with a warning against 3 licensees, and closed cases without action against 1 licensee.
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: 19; total approved: 7; total approved with conditions: 4; continued: 7; and postponed: 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
Project Summaries: The Executive Director reviewed the 2023-2024 Project Summaries noting projects that have been completed or extended since the March Commission meeting. The Executive Director reported that Mr. Lindsey asked that the members discuss at the May meeting any projects they would like to be considered in the upcoming fiscal year, including whether to undertake another SWOT analysis.
Conference Reimbursement: Upon a motion from Mr. Aceto, the Commission approved sending Commission members to the upcoming national Real Estate Educators Association (REEA) conference in Memphis, Tennessee June 25-29, 2024.
Monthly Financial Report, Quarterly Investment, and Education & Recovery Fund Report: The Commission received the monthly Financial Report, Quarterly Investment Report, and Education & Recovery Fund Report presented by the Chief Financial Officer for the period ending March 31, 2024
Audit Services: Upon a motion from the Finance Committee (Mr. Lindsey and Mr. Ramseur), the Commission accepted the audit services bid of Bernard Robinson and Company for three years beginning with the audit of the upcoming year’s financial statements.
Regulatory Report: The Director of Regulatory Affairs reviewed a report showing the status of all cases pending in the Regulatory Affairs Division as of March 31, 2024. At Mr. Lindsey’s request, the Director of Regulatory Affairs will provide a report to the Commission at the May meeting regarding complaints received during the month where staff declined to open a file. She noted that this typically occurs when the Commission does not have jurisdiction, or the complaint does not allege a violation of the law or rules.
NC Office Attorney General Request: Upon a motion from Ms. Mallette, the Commission voted to have staff prepare a request to the NC Office of the Attorney General for an opinion concerning the extent of the Commission’s jurisdiction over out-of-state companies engaged in brokerage services in North Carolina, particularly property management. Mr. Bullard and Mr. Lindsey were not present for the vote.
Spring Educators Conference: The Director of Education and Licensing reported that the Spring Educators Conference was held on Tuesday, March 19, 2024, at the McKimmon Center on North Carolina State University’s campus. Approximately 350 people registered, and despite a budget request for $25,000 to cover the cost of the Conference, it netted a profit of $321.25 as a result of various budget savings. The Director of Education and Licensing noted that over the last two years, the Spring Educators Conference has become the largest gathering of educators in the country. The Director of Education and Licensing asked that the Finance Committee still consider allotting a $25,000 budget for the Educators Conference for the next year.
April Town Hall: The Assistant Director of Education and Licensing reported that the Education Town Hall was held on April 9 and attended by seventy-five educator providers and instructors on Zoom. The Town Hall is an open forum with no agenda. Former Commission Member Cindy Chandler provided a synopsis of the NAR Settlement, an issue at the forefront of the discussion. The next Town Hall is scheduled for July 23, 2024, from 3:00 – 4:30 p.m.
License Exam Statistics: The Director of Education and Licensing reported that 80.71% of first-time test takers passed the exam in March, the first month with the new exam provider. The Director of Education and Licensing noted the exam provider transition went smoothly and that it is too early to draw conclusions from the data gathered so far.
Real Estate Manual: The Assistant Director of Education and Licensing reported that the next edition of the Real Estate Manual is scheduled for development in the fall of 2024. She indicated that staff would like to pursue greater functionality in the electronic version of the Manual. Upon a motion of Mr. Black, the Commission voted to issue an RFP to solicit bids for the next edition of the Real Estate Manual. Mr. Bullard and Mr. Lindsey were not present for the vote.
Report on License Numbers: As of April 1, 2024, there are 128,768 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 85,607
Active Provisional Brokers – 5,149
Brokers-in-Charge – 18,251
BIC Eligible Brokers – 6,361
Inactive Full Brokers – 25,248
Inactive Provisional Brokers – 7,893
Firms – 17,645
Limited Nonresident Commercial Brokers – 268
Next Commission Meeting: The next Commission meeting will be held at 9:00am, May 22, 2024, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.
Spring Educators Conference was a great success!
This year the North Carolina Real Estate Commission hosted its 2024 Spring Educators Conference at the McKimmon Center on March 19,, 2024. The theme of the conference was NCREC Education Superhero Comicon. The attendees learned how to use AI in real estate education, information regarding the exam transition, and handling disruptions in the classroom. For a sample of how to use AI to create a PowerPoint view this video. Congratulations to our 2024 Larry A. Outlaw Excellence in Education Award winner, Bill Gallagher!
Exam Provider Transition Complete
The transition from PSI to PearsonVUE has been implemented successfully. Along with the change in exam providers, there are updates to several resources, and the following new videos are available:
1 – Updated RELINC: https://www.ncrec.gov/Pdfs/Licensing/General.pdf
2 – Updated Syllabus: https://www.ncrec.gov/Forms/Education/Prelicense_Course_Syllabus.pdf
3 – Four new videos on our YouTube Channel about the licensing and examination process: https://www.youtube.com/NCREC/videos
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 on April 24th at the Commission building, 1313 Navaho Drive, Raleigh, NC 27609. A Zoom link will be available at ncrec.gov on the day of the meeting.
NAR Settlement
On March 15, 2024, the National Association of Realtors® (NAR) proposed a settlement to end landmark antitrust lawsuits. In the proposal, NAR agreed to pay damages and to mandate that its members enter into written buyer-broker agreements. Additionally, the settlement would prohibit REALTORS® from making compensation offers on multiple listing services (MLS). The settlement has not been approved by the court; a decision from the court is expected later this year. Even so, the NAR rules are planned to be effective in mid-July.
As a reminder, the North Carolina Real Estate Commission (NCREC) is an independent state governmental agency and should not be confused with NAR or its local boards. The NCREC’s primary function is to license and regulate real estate brokers and its mission is to protect consumers. North Carolina has 100,000 plus real estate brokers with many, but not all, also being members of NAR. NAR is a voluntary trade organization whose members are known as REALTORS®. In North Carolina, NC REALTORS® is a state level REALTOR® association and, as part of its services, creates various standard form documents for use by its members and their clients in transactions. In cooperation with the NC Bar Association, NC REALTORS® also creates standard form Offers to Purchase and Contract and other transaction documents.
The NCREC is following developments with the settlement proposal as they occur. However, it is important to recognize that any changes in NAR rules apply specifically to NAR members and do not alter the Real Estate License Law and Commission rules. Moreover, the currently proposed NAR changes are in no way contradictory to the existing License Law and rules.
The following is a reminder of NCREC rules relating to broker transparency, agency agreements, and commissions.
Working With Real Estate Agents Disclosure:
Commission Rule 58A. 0104(c) states: In every real estate sales transaction, a broker shall, at first substantial contact with a prospective buyer or seller, provide the buyer or seller with a copy of the publication “Working With Real Estate Agents” …(WWREA).
In 2021, the NCREC revised the WWREA Disclosure to be one page, double-sided, with one side for sellers and one side for buyers. The new WWREA Disclosure was designed to be quicker and simpler for brokers to use and easier for buyers and sellers to understand. Additionally, the original brochure was updated and expanded to be available for use in conjunction with the required WWREA Disclosure. The WWREA Disclosure and brochure explain the various types of agency relationships in a clear concise manner, educating the consumer and defining expectations. The WWREA Disclosure is a broker’s opportunity to discuss and clarify what their agency role may be in the transaction and to start the conversation concerning the contemplated agency status, payment, and future options.
Buyer Agency Agreements:
Commission Rule 58A .0104(a) has long required brokers to enter into written agency agreements. Listing agreements must be in writing and signed by the broker and client at the time their agency relationship is formed. Buyer agency agreements must be in writing and signed by the broker and client no later than the time of making an offer. Note that the rule does not prohibit a broker from entering into a written buyer agency agreement earlier than the time of offer submission. Accordingly, the proposed rule change for REALTORS® does not conflict with the Commission’s rule.
Additionally, NCGS § 93A-13 prohibits a broker from filing suit for recovery of brokerage compensation unless the agreement is in writing. Therefore, brokers need to be in compliance with NCREC rules in order to avoid disciplinary action and in order to recover a commission through the civil court if the client fails to pay.
The Commission does not have jurisdiction regarding the setting or advertising of commissions. Commission Rule 58A .0109(f) specifically notes that the NCREC will not act as a board of arbitration and shall not compel parties to settle disputes concerning such matters as the rate of commissions, the division of commissions, pay of brokers, and similar matters. The NCREC reminds all of its licensees that brokerage commissions remain a negotiable term between the broker/firm and client.
Finally, it is important to remember that Commission Rule 58A .0112(b)(1) bars a broker from using a preprinted offer or sales contract form containing any provision concerning the payment of a commission or compensation to a broker or firm. While a client may consider the amount of commission when considering making or accepting an offer, the broker/firm should not be made a third party in a form purchase contract between the buyer and seller. The current standard form residential contract includes a provision allowing the seller to pay an agreed amount toward any of buyer’s expenses.
The NCREC understands that the real estate industry is always evolving, and our role is to ensure whenever possible that these changes benefit consumers and to assist NC brokers in understanding their duties. The NCREC remains dedicated to fostering a market that prioritizes consumer interests, fair competition, and transparency. We also remain available to answer questions about the application of the License Law and Commission rules to help brokers and consumers better navigate their transactions.
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 March 13, 2024
Pending Cases: The Commission entered into consent agreements to suspend 14 licenses, accepted the permanent voluntary surrender of 2 licenses, ordered hearings in cases involving 18 licensees, left cases pending involving 6 licensees, and closed cases without action against 5 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: 18; total approved: 5; total approved with conditions: 6; continued: 5; and deferred: 2.
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
Residential Property and Owners’ Association Disclosure Statement (RPOADS): The Compliance Manager reviewed the revised RPOADS, noting that it included the suggested changes requested by the Commission at the February business meeting by the Commission members. Upon a motion of Mr. Ramseur, the Commission approved the RPOADS with the following changes:
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Future Legislation to Fine Licensees: The Executive Director and Director of Regulatory Affairs reviewed two spreadsheets developed by staff on the authority to fine currently held by (1) real estate authorities in other states and (2) licensing boards in North Carolina. Mr. Malarney asked the Regulatory Affairs Committee to review and report back to the full Commission. The Executive Director will work with the Director of Regulatory Affairs to schedule a Regulatory Affairs Committee meeting.
BIC Span of Control Workgroup Update: Mr. Lindsey reported that the BIC Span of Control Workgroup has met five times, starting in October of 2023. The workgroup has reviewed many issues relating to brokers-in-charge and is currently working through the ten issues raised by the BIC Span of Control focus groups. Once the Workgroup reaches conclusions on any changes it would like to see in the rules, the Workgroup will make suggestions to the full Commission; if the full Commission agrees, staff will start the rule-making process, which includes initial drafts, publication for public comment, and a period of consideration, among other things, before a final decision is made. Mr. Ramseur asked that the group look at the current role of technology and social media advertising with the current responsibilities of the BIC.
Proposed Changes to Occupational Licensing Boards’ Authority: The Director of Regulatory Affairs reported the General Statutes Commission responsible for making technical changes to the statutes is considering removing the term “moral turpitude” from the Commission’s section of the statutes, among other statutes and presented a draft of the proposed changes.
MV Realty v. NCREC: The Director of Regulatory Affairs reported that the MV Realty v. NCREC case was dismissed in the Federal Bankruptcy Court.
Examination Provider Transition Report: The Director of Education and Licensing reported that exam administration has successfully been transferred to Pearson VUE. Candidates started taking the license examination with Pearson VUE on March 1, 2024, at 68 testing centers across the state of North Carolina. The Director of Education and Licensing noted that the Real Estate Licensing in North Carolina (RELINC) publication has been updated and revamped and a new series of AI videos has been developed for those seeking a real estate license. First-time test takers since the beginning of March are performing at or better than they did with the previous examination provider.
Spring Educators Conference: The Director of Education and Licensing reported that the Spring Educators Conference is scheduled for Tuesday, March 19, 2024, at the McKimmon Center on North Carolina State University’s campus. There are 344 people registered. Over the last two years, the Spring Educators Conference has become the largest gathering of educators in the state.
Agreement with South Carolina: The Executive Director reported that South Carolina requested a written memorandum of the licensing requirements for licensees from South Carolina and that she signed an agreement outlining the requirements already required by North Carolina law and rules. The agreement is revocable at any time.
Report on License Numbers: As of March 1, 2024, there are 127,794 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 84,959
Active Provisional Brokers – 5,079
Brokers-in-Charge – 18,164
BIC Eligible Brokers – 6,299
Inactive Full Brokers – 25,077
Inactive Provisional Brokers – 5,079
Firms – 17,494
Limited Nonresident Commercial Brokers – 264
Next Commission Meeting: The next Commission meeting will be held at 9:00am, Wednesday, April 24, 2024, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.