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 December 11, 2024
Pending Cases: The Commission entered into consent agreements to suspend 12 licenses, accepted the permanent voluntary surrender of 1 licensee, accepted the voluntary surrender of 2 licensees, ordered hearings in cases involving 7 licensees, reprimanded 1 licensee, approved the issuance of 1 real estate broker license, approved payment from the Real Estate Education and Recovery Fund in the amount of $45,000, revoked 1 license, and permanently revoked 2 licenses.
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: 15; total approved: 5; total approved with conditions: 3; continued: 4; total deferred 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.
Larry A. Outlaw Excellence in Education Award Rubric: The Director of Education and Licensing presented the Larry A. Outlaw Excellence in Education Award rubric. He noted that the guidelines and nomination instructions go out to educators, are posted on the website, and are distributed to brokers. The nominations will be open on January 6. Upon the motion of Ms. Mallette, the Commission added a “respect for the award criterion,” namely, “that the nominee should demonstrate an understanding of the award’s purpose, values, and prestige, acting in a way that aligns with the award’s intended meaning and not taking the nomination lightly; essentially, showing appreciation for the recognition and behaving in a manner that upholds the award’s reputation.”
Spring Educator’s Conference: The Director of Education and Licensing reported that the Spring Educator’s Conference will be held on March 27, 2025, at the McKimmon Center in Raleigh. The theme is “Raleighwood – How to be an Education Star.” He noted that the Commission Chair typically welcomes attendees and sometimes makes additional remarks. The Executive Director traditionally provides a presentation including statistical information, and an overview of ongoing policy discussions at the Commission. The Director of Regulatory Affairs and the Assistant Director of Regulatory Affairs will also present on regulatory affairs issues. Mr. Lindsey said he would be happy to participate and will discuss with the Director of Education and Licensing presentation ideas.
Community College Education Programs: The Director of Education and Licensing provided a report on the Community College Prelicensing Education Program. The Director of Education and Licensing noted that he and staff worked closely with Dr. Andrew Gardner, Associate Vice President of Workforce Strategies, to work on increasing awareness of careers in real estate and the online prelicensing course available to community colleges to offer to their students. He reported that in 2024, the number of community colleges offering the online prelicensing course increased from ten to thirteen. The Education staff have also participated in Community College career fairs to build the knowledge of real estate careers. The Director of Education and Licensing commended the Assistant Director of Education and Licensing, the Education Officer, and the Consumer Resource Officer on their work on the Community College education programs, and former Commission Chair Jeff Malarney for spearheading the online prelicensing course initiative.
REEA Conference/DREI Summit: The Director of Education and Licensing reported that the national Real Estate Educators Association (REEA) Conference/Distinguished Real Estate Instructor (DREI) Summit will be in Atlanta, Georgia from January 9-11, 2025. The Assistant Director of Education and Licensing, the Education and Examination Officer, and the Director of Education and Licensing will be attending this event.
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending November 30, 2024.
Probable Cause Recommendations: The Assistant Director of Regulatory Affairs and the Commission attorneys presented the probable cause recommendations, followed by proposed settlements. Following a discussion of public and private use of property, the Commission suggested staff to write a Bulletin article about this aspect of disclosure of material facts and present the article to the Commission before it is published. Mr. Black commended deputy legal counsel on his presentation of Case D24-2994. The Assistant Director of Regulatory Affairs introduced the new receptionist for Regulatory Affairs.
Appeals: The Assistant Director of Regulatory Affairs reported that Ms. Joellen Shipman’s case is still pending. She reminded the Commission that Ms. Shipman failed to perfect her appeal in Superior Court. The NC Office of the Attorney General is handling that appeal and is filing a motion to dismiss.
Closed Session: Upon the motion of Ms. O’Connor, the Commission voted to meet in closed session pursuant to N.C.G.S § 143-318.11(a)(5) with the Executive Director, Chief Administrative Officer, and the Assistant Director of Regulatory Affairs to discuss a legal matter. Upon a motion from Mr. Ramseur, the Commission came out of closed session.
Draft Rule Text: The Compliance Manager presented draft rule text on the rule topics presented during its October 2024 meeting with a proposed rulemaking schedule for an effective date of July 1, 2025, noting that this would require a vote from the Commission at its December 11, 2024, meeting. She noted that publication and comment period will begin on January 15, 2025, with a public hearing in High Point, NC on February 19, 2025. Public comments will be received until March 16, 2025, with potential rule adoption at the March 19, 2025, meeting. The Commission made the following decisions regarding the rule text:
| 21 NCAC 58A .0106 – Delivery of Instruments | Upon the motion of Ms. O’Connor, the Commission voted to proceed with rulemaking with paragraph (a) being two sentences: “(a) Except as provided in Paragraph (b) of this Rule, every broker shall deliver a copy of any written agency agreement, contract, offer, lease, rental agreement, option, or other related transaction document to their customer or client within three days of the broker’s receipt of the executed document. A broker shall also deliver a copy of said documents within three days of receipt of a request by the customer or client. |
| 21 NCAC 58A .0302 – License Application and Fee | Mr. Black moved to proceed with rulemaking but with the maximum time in the rule a broker is prohibited from reapplying as described in sections (d) and (e) being reduced from two years to six months. The motion failed with Mr. Aceto, Mr. Alston, Ms. Mallette, Ms. O’Connor, and Mr. Ramseur voting against the motion. Ms. Sebti abstained from the vote. Upon a motion from Mr. Ramsuer, the Commission approved the rule as written. Mr. Lindsey and Mr. Black voted against the motion. Ms. Sebti abstained from the vote. Mr. Bell was not present for either vote. |
| 21 NCAC 58A .0502 – Firm Licensing | Upon the motion of Ms. O’Connor, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58A Section 1800 – .1810 | Upon a motion from Mr. Alston, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58H .0204 – Policies and Procedures Disclosure | Upon a motion from Mr. Black, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58H .0206 – Advertising and Recruitment Activities | Upon a motion from Mr. Alston, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58H .0209 – Expiration and Renewal of Education Provider Certification | Upon the motion of Ms. O’Connor, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58H .0302 – Application and Criteria for Instructor Approval | Upon a motion from Mr. Alston, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58H .0416 – Renewal and Expiration of Course Approval | Upon a motion from Mr. Aceto, the Commission voted to approve the rule text proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
Evaluation of Statement of Economic Interest: The Executive Director gave a brief overview of the Statement of Economic Interest for Commission Members. The Executive Director then read into the record of the Commission’s meeting the results of the Evaluation of the Statement of Economic Interest of Commission member Sebti 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 her service on the Commission. The Executive Director concluded that these Statements will be kept on file as required by law.
Report on License Numbers: As of December 1, 2024, there are 124,379 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 78,158
Active Provisional Brokers – 4,799
Brokers-in-Charge – 17,533
BIC Eligible Brokers – 6,588
Inactive Full Brokers – 17,326
Inactive Provisional Brokers – 6,545
Firms– 17,284
Limited Nonresident Commercial Brokers – 267
Next Commission Meeting: The next Commission meeting will be held at 9:00am, January 15, 2025, at the North Carolina Real Estate Commission in Raleigh, NC and is open to the public. It can be viewed via Zoom online video.
NCREC welcomes our 3 newest Commission Members in November and December
Melvin “Skip” Alston of Greensboro, and Patrick H. Bell of Raleigh were ceremonially sworn-in at the Commission’s Business Meeting on November 13, 2024. Melvin ‘Skip” Alston was sworn-in by Judge Lora Cubbage and Patrick H. Bell was sworn-in by Secretary of State Elaine Marshall. Farah Lisa Sebti of Charlotte was sworn-in at the Commission’s Business Meeting on December 11, 2024, by Judge Allegra Collins.
Fraudulent Sellers continue to increase
NCREC continues to receive calls from brokers and consumers about fraudulent sellers attempting to list homes for sale, and in some cases succeeding with the listing and even consummating the sale of the property. Many County Register of Deeds offices now offer a fraud alert or notification service that property owners can sign up for, so that they will be notified if documents are recorded against their property.
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 January 15th at the Commission building, 1313 Navaho Drive, Raleigh, NC. A Zoom link will be available at ncrec.gov on the day of the meeting.
High School and Community College Outreach
Last month, NCREC attended the Community College System Conference at the Convention Center in Raleigh, NC, and shared resources about careers in real estate. NCREC also attended Southeast Raleigh High School’s Career Expo, to talk to students about careers in real estate. View some of the resources here:
Opportunities with (and without) a Real Estate License
Are you interested in a career in real estate?
Careers in Real Estate: An Inside Look (video)
Do you know what being a fiduciary means?
It refers to being in a relationship of trust. Licensed brokers are in a relationship of trust when handling the property of others, and are required by the law of agency to put their clients’ interests above all others, including the broker’s own interests. Brokers must:
Read more about the duties of licensed brokers and other important information in the Consumer Guide to the North Carolina Real Estate Commission.
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 tomorrow, November 13th at the Commission building, 1313 Navaho Drive, Raleigh, NC. A Zoom link will be available at ncrec.gov on the day of the meeting.
Director of Regulatory Affairs Sworn in as ARELLO® President
We congratulate Janet Thoren, the Director of Regulatory Affairs, for being sworn in as President of ARELLO® during their national conference last month in Chicago.
NCREC ARELLO® award
ARELLO® awards are national honors given to states across the country for cutting edge initiatives in the real estate regulatory industry. This year we received the ARELLO® EDUCATION AWARD – Prelicensing Education, for our groundbreaking Item Writing Workshops, where Commission staff and approved real estate instructors participated in creating test items for the licensing exam.
You are invited!
The monthly Real Estate Commission meetings are always open to the public. You are invited to attend in person or online via Zoom. The meeting tomorrow, October 16th is in Duck at The Sanderling, Partridge Room, 1461 Duck Road, Duck, NC 27949. 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 September 18, 2024
Pending Cases: The Commission entered into consent agreements to reprimand 1 licensee, suspend 12 licenses, accepted the permanent voluntary surrender of 5 licenses, ordered hearings in cases involving 5 licensees, and closed cases without action against 7 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 based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 19; total approved: 6; total approved with conditions: 4; continued: 7; withdrawn: 1; 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.
Spring Educator’s Conference: The Director of Education and Licensing reported that the 2025 Spring Educators Conference will be held at the McKimmon Center in Raleigh on Thursday, March 27. The theme is, “Raleighwood – How to be an Education Star!” and the fee will be $49. The Director of Education and Licensing noted that staff will work to increase the size of the event.
Update Instructor Seminars: The Assistant Director of Education and Licensing noted that the Education staff has conducted six of the 2024-25 Update Instructor Seminars. There are now 254 instructors who have an active update instructor status. There are two more scheduled Update Instructor Seminars, the first on December 3, 2024, and another on April 3, 2025. The Assistant Director of Education and Licensing and Director of Education and Licensing noted that most staff have also taken an in-house version of the Update Course, as have some Commission members.
NCREEA Fall Conference: The Director of Education and Licensing reported that the Fall NCREEA Conference will be in Cherokee, NC. Many of the Education staff will attend NCREEA. Also, certain members of Commission staff have been invited to conduct an Item Writing Workshop and several will also participate in a panel discussion about License Law and Commission rules. [NOTE: This event was subsequently cancelled due to severe weather impacts in Western North Carolina.]
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending August 31, 2024.
Appeals: The Director of Regulatory Affairs reported that Ms. Joellen Shipman’s appeal case is being handled by an attorney from the NC Office of the Attorney General who is filing for a dismissal in light of Ms. Shipman’s failure to perfect their appeal. The appeal of the MV Realty case is also ongoing and is being handled by outside counsel in accordance with an agreement with the Attorney General’s Office.
Rulemaking: The Compliance Manager presented a memo outlining proposed rulemaking with a proposed schedule for those rules. The Director of Regulatory Affairs noted that there may be additional rulemaking tracks this year, including rule changes recommended by the BIC Span of Control Workgroup. The Compliance Manager stated that rulemaking takes 6-9 months to complete; they reviewed the schedule noting that it includes additional time to accommodate changes requested by the Commission, the Rules Review Commission, and the like. Staff compiled 17 recommendations received from Commission members, staff, and members of the public. The Compliance Manager reviewed the following proposed rulemaking topics, and the Commission took the actions indicated below:
| 21 NCAC 58A .0104 – Agency Agreements and Disclosure | Upon the motion of Ms. O’Connor, the Commission directed staff to draft proposed text in accordance with Recommendations 1-3. |
| 21 NCAC 58A .0106 – Delivery of Instruments | Upon the motion of Mr. Ramseur, the Commission directed staff to draft proposed text in accordance with Recommendation 4. |
| 21 NCAC 58A .0112 – Offers and Sales Contracts | Mr. Ramseur moved that the Commission make no change to the existing rule; he later withdrew the motion. Upon the motion of Ms. Mallette, the Commission voted to table discussion on Recommendation 5. |
| 21 NCAC 58A .0302 – License Application and Fee | Upon the motion of Ms. O’Connor, the Commission directed staff to draft bifurcated proposed text in accordance with Recommendation 6, one draft to prohibit an applicant from reapplying for licensure after a set period of time if their application is withdrawn after a Notice of Hearing has been issued, and a separate draft that would place a time limitation on the applicant’s ability to reapply if their application is denied following a hearing. Mr. Black, Mr. Fox, and Mr. Malarney voted against the motion. |
| 21 NCAC 58A .0502 – Firm Licensing | Upon the motion of Mr. Ramseur, the Commission directed staff to draft proposed text in accordance with Recommendation 7. Mr. Aceto voted against the motion. Upon the motion of Mr. Ramseur, the Commission directed staff to draft proposed text in accordance with Recommendation 8, the draft to provide that the rule would apply if a finding of probable cause has been made as to the pending disciplinary matter(s) in question. |
| 21 NCAC 58A .0503 – License Renewal | Upon the motion of Mr. Black, the Commission voted not to pursue Recommendation 9 at this time. Mr. Lindsey and Mr. Bullard voted against the motion. |
| 21 NCAC 58A .0615 – Settlements | Upon the motion of Mr. Ramseur, the Commission voted not to pursue Recommendation 10. Mr. Lindsey and Mr. Fox voted against the motion. |
| 21 NCAC 58H .0401 – Approval of Real Estate Education Courses 21 NCAC 58H .0402 – Continuing Education Elective Course Requitements | Upon the motion of Mr. Bullard, the Commission directed staff to draft proposed text in accordance with Recommendations 11 and 12. |
| 21 NCAC 58H .0206 – Advertising and Recruitment Activities | Upon the motion of Ms. O’Connor, the Commission directed staff to draft proposed text in accordance with Recommendation 13, the duration to be determined. |
| 21 NCAC 58H .0302 – Application and Criteria for Instructor Approval | Upon the motion of Mr. Black, the Commission directed staff to draft proposed text in accordance with Recommendation 14, including existing as well as new instructors. Mr. Ramseur, Ms. Mallette, and Mr. Aceto voted against the motion. |
| 21 NCAC 58A Section 1800 – Limited Non-resident Commercial Licensing | Upon the motion of Mr. Bullard, the Commission directed staff to draft proposed text in accordance with Recommendation 15. |
| 21 NCAC 58A .0511; NC Gen. Stat. § 93B-15.1 – Licensing Persons Licensed in Another Jurisdiction | Upon the motion of Mr. Lindsey, the Commission tabled discussion of Recommendation 16. |
| 21 NCAC 58A .1601 – Fair Housing and 21 NCAC 58A .0120 – Prohibited Acts | Upon the motion of Mr. Lindsey, the Commission directed staff to look at additional ways to strengthen education on, and enforcement of, Fair Housing violations. |
NAR Settlement-Article and Talking Points: The Commission approved the draft article, “Has the World Exploded? The NAR Settlement, Commission Law and Rules” for publication in the next eBulletin.
Executive Director Performance Evaluation Template: The Executive Director presented a draft template of the revised Executive Director performance evaluation which reviewed the Personnel Committee recommended for approval by the full Commission. Ms. O’Connor noted that the Performance Evaluation matches with the Executive Director’s job description. Upon a motion from Mr. Aceto, the Commission adopted the current Executive Director Performance Evaluation to be in place this calendar year. Mr. Aceto asked that the date approved be added to the Performance Evaluation.
Report on Recent Appearances and Speeches: The Executive Director and Director of Regulatory Affairs presented to the Greensboro Regional REALTORS® Association on September 4, 2024. Mr. Aceto and the Director of Regulatory Affairs presented to the Land of the Sky Association of REALTORS® on September 6, 2024. Mr. Aceto commended the Director of Regulatory Affairs on the presentation. Mr. Ramseur commended the presentation of Ms. Moody, Deputy Legal Counsel, to the NC Bar Association the week prior to the Commission meeting.
Report on License Numbers: As of September 1, 2024, there are 121,752 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 76,522
Active Provisional Brokers – 4,792
Brokers-in-Charge – 17,219
BIC Eligible Brokers – 6,599
Inactive Full Brokers – 17,234
Inactive Provisional Brokers – 6,026
Firms – 16,930
Limited Nonresident Commercial Brokers – 248
Next Commission Meeting: The next Commission meeting will be held at 9:00am, October 16, 2024, at the Sanderling Resort in Duck, NC and is open to the public. It can be viewed via Zoom online video.
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 August 14, 2024
Pending Cases: The Commission entered into consent agreements to suspend 6 licenses, accepted the permanent voluntary surrender of 2 licenses, ordered hearings in cases involving 30 licensees, closed cases without action against 6 licensees, authorized injunctive relief involving 1 licensee, reprimanded 2 licensees, and left 6 cases pending.
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: 16; total approved: 6; total approved with conditions: 4; continued: 4; postponed; 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
ARELLO Award for Excellence in Education: The Director of Education and Licensing reported that the 2024 National ARELLO Award for Excellence in Education will be presented to the Commission at the ARELLO Annual meeting in Chicago for the Item-Writing Workshop staff produced.
Education Town Hall: The Assistant Director of Education and Licensing provided a report to the Commission on the Education Town Hall meeting that was held on July 23, 2024, via Zoom teleconferencing. The Assistant Director indicated that the town hall meeting’s purpose is to foster an environment of collaboration with the educational community in NC. Education staff discussed the license renewal numbers and CE deficiencies of brokers and informed the educators of the Item-Writing Workshops on September 6 and October 11 at the Commission’s office. The Assistant Director also indicated that NCREEA has asked Education staff to present at the NCREEA Fall Conference regarding the intersection of the License Law and Commission rules with the proposed NAR settlement. Additionally, Education staff will host an Item-Writing Workshop in conjunction with the NCREEA conference on Tuesday, October 1, 2024.
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending July 31, 2024.
Appeals: The Director of Regulatory Affairs reported that nothing has changed with Ms. Joellen Shipman’s appeal since the last Commission meeting and that an attorney from the NC Office of the Attorney General is filing for a dismissal. The appeal of the MV Realty case is also ongoing.
Touring Agreements: The Executive Director reported that staff is seeing an interest in the development of “touring agreements” for buyer agents who are REALTORS®, so that they can remain in compliance with the NAR settlement on its effective date later this month. After an extended discussion on the topic of licensees advertising that their forms are in compliance with the License Law and/or Commission rules, the Commission determined not to pursue requirements related to advertising compliance at this time but rather to monitor whether issues arise that indicate the issue should be revisited.
WWREA Disclosure and Rule A .0104: The Executive Director reported that a Commission member had passed along concerns about broker confusion relating to the differences in the wording of the Working With Real Estate Agents (WWREA) Disclosure that allows oral buyer agency until an offer is signed, versus the requirements of the NAR settlement on most REALTOR® members to have a signed agreement at the time of the first showing. The Executive Director stated that the NAR settlement only affects a segment of the broker population. Changing the Disclosure is possible if the Commission sees fit. Meanwhile, staff is doing a lot of education on the topic. The Director of Education and Licensing stated that to change Commission rules and statutes because of a private settlement may be premature. The settlement has not yet been accepted and the Department of Justice may weigh in. The Executive Director stated that if the broker follows Commission rules, they will not be in compliance with the REALTORS® standards of practice relating to the timing of an agreement with the buyer, but that if they follow the REALTOR standards of practice in terms of timing, they will be in compliance with the Commission’s timing requirements . The Commission discussed broker confusion over the difference between Commission and REALTOR requirements and the need for brokers to follow the Commission rules and to learn how to also be in compliance with the REALTOR® requirements, as it is possible to comply with both.
ARELLO Update: The Executive Director noted that the Director of Regulatory Affairs will be inaugurated as the ARELLO President at the ARELLO Annual Meeting in Chicago. Mr. Ramseur reported that the Legal Exchange in Carmel was well done, and he thought it was interesting to learn how other states are handling the NAR Settlement. The Director of Education and Licensing noted that there is no unity on how each MLS is handling the settlement guidelines. Mr. Ramseur stated that many states are leaning on ARELLO for guidance. Mr. Malarney commended the Director of Education and Licensing on his participation in the event and in recommending the speaker, Lucine Petrosyn, to discuss implicit bias in AI at both the Legal Exchange and the Q3 ARELLO discussion. Ms. O’Connor noted that there was impactful information at the Q3. Mr. Bullard commended the Director of Education and Licensing and Mr. Malarney on their presentation. Mr. Lindsey requested the recordings of the presentation at the Q3 and the Legal Exchange be shared with the full Commission. The Executive Director said that she would ask ARELLO if they would be willing to make a recording available. Mr. Lindsey encouraged the full Commission to attend the ARELLO Annual meeting to take advantage of learning from others around the country.
Report on License Numbers: As of August 1, 2024, there are 120,653 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 80,035
Active Provisional Brokers – 4,482
Brokers-in-Charge – 17,054
BIC Eligible Brokers – 6,534
Inactive Full Brokers – 23,582
Inactive Provisional Brokers –6,109
Firms – 16,799
Limited Nonresident Commercial Brokers – 237
Next Commission Meeting: The next Commission meeting will be held at 9:00am, September 18, 2024, at the Doubletree Hotel By Hilton, ballroom in Rocky Mount, NC and is open to the public. It can be viewed via Zoom online video.
Commission Member Jeff Malarney and Director of Education & Licensing Len Elder Address Inaugural Legal Exchange
This month, Immediate Past Chair Jeff Malarney served as a panelist alongside other industry experts for a discussion about AI in real estate at both the inaugural ARELLO Legal Exchange, and ARELLO’s Q3 Webinar. The panel, moderated by Director of Education and Licensing Len Elder, addressed the pros and cons of artificial intelligence in the real estate industry.
Do you have questions about filing a complaint?
Consumers and brokers often have questions about the complaint process and what to expect. NCREC has created 3 new videos that explain how to file a complaint and the investigations process. View this video playlist Navigating Complaints on our YouTube channel.
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 18th in Rocky Mount at the Doubletree Rocky Mount (Doubletree Ballroom), 651 N. Winstead Avenue, Rocky Mount, 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 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.
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.