Due Diligence Fee Concerns
Recently there have been several questions and cases involving Due Diligence Fee concerns. The common questions are: “When is the Due Diligence Fee due?” and “What happens if the buyer changes their mind and terminates the contract without paying the Due Diligence Fee to the seller?” It is important to note that if the buyer entered into a contract to purchase a home, the due diligence fee is due immediately upon contract formation. If the buyer changes their mind and terminates later, the seller may be still entitled to the due diligence fee and other fees that may be awarded by the courts, such as attorney fees. The Commission’s, Questions & Answers on Due Diligence Fees is a great resource to review.
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 February 14th at the Carolina Hotel (South Room) 80 Carolina Vista Drive, Pinehurst, NC 28374. A Zoom link will be available at ncrec.gov on the day of the meeting. If you plan to attend in person, please RSVP to exec@ncrec.gov on or before February 7, 2014.
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 January 17, 2024
Pending Cases: The Commission entered into consent agreements to suspend 9 licenses, accepted the permanent voluntary surrender of 1 license, closed 4 cases without action, ordered 5 hearings in cases involving licensees, and left 5 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 made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 12, total approved: 1, total approved with conditions: 4, 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
Expense Authorization for Travel: The Commission reviewed and discussed Chairman Malarney’s memo addressing funding for conference attendance. Upon the motion of Mr. Black, the Commission directed staff to bring a proposed amendment to the Commission’s travel policy to its February business meeting.
Monthly Financial Report, Quarterly Investment, and Education & Recovery Fund Report: The Commission received and reviewed the monthly Financial Report, Quarterly Investment Report, and Education & Recovery Fund Report presented by the Chief Financial Officer for the period ending December 31, 2023. The Executive Director noted that the Accountant had updated and modernized the reports and the changes had been approved by the Finance Committee.
FY2023-2024 Income and Expense Projections: The Chief Financial Officer reviewed the adjusted FY2023-24 Income and Expense Projections, which were also approved by the Finance Committe. Mr. Lindsey noted that the projections are now more favorable and commended Commission staff.
Residential Property and Owners’ Association Disclosure Statement (RPOADS): The Compliance Manager presented the reformatted RPOADS form and asked for feedback from the members. She noted that staff was hoping to reduce the instructions to one page, increase the size of the check-circles, and eliminate more of the white spaces on the form, among other things. The members suggested adding and modifying specific language to improve readability of the form.
License Examination Provider Transition: The Director of Education and Licensing provided a report on the status of the transition between PSI to Pearson Vue for license examination services. The industry training date is February 26, 2024. He reported that the transition is on schedule and that PSI will end testing on February 28, 2024 with Pearson Vue beginning testing on March 1, 2024. The Director of Education and Licensing commended the software engineer for his dedication, expertise, and hard work in accomplishing the many technological requirements for making the transition.
2024 Educators Conference: The Director of Education and Licensing provided a report on the upcoming 2024 Educators Conference. The Educators Conference is planned for Tuesday, March 19, 2024, at the McKimmon Center at North Carolina State University and includes a theme that recognizes education providers as superheroes in their field. The Director of Education and Licensing noted that the Commission will solicit nominations from January 15 – February 2, 2024, for the Larry A. Outlaw Excellence in Education Award. The Chair appointed Ms. Mallette to the award committee along with existing Education Committee members Mr. Black and Ms. O’Connor.
January 2024 Education Town Hall: The Assistant Director of Education and Licensing provided a report regarding the January 11, 2024, Education Town Hall. She stated there were approximately 110 Instructors, Education Directors, and Education Providers in attendance. During the Education Town Hall, staff provided information about the license examination provider transition and the 2024-2025 Update course topics. Mr. Black and Ms. O’Connor noted that the Town Halls are a helpful communication tool between staff and the Education Providers.
Report on License Numbers: As of January 1, 2024, there are 126,278 brokers and firms licensed by the Commission, as follows:
Active Full Brokers 78,995
Active Provisional Brokers 5,068
Brokers-in-Charge 17,985
BIC Eligible Brokers 6,174
Inactive Full Brokers 17,357
Inactive Provisional Brokers 7,431
Firms 17,171
Limited Nonresident Commercial Brokers 256
Next Commission Meeting: The next Commission meeting will be held at 9:00am, Wednesday, February 14, 2024, at the Carolina Hotel, South Room in Pinehurst 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 December 13, 2023
Pending Cases: The Commission entered into consent agreements to suspend 13 licenses, accepted the permanent voluntary surrender of 5 licenses, accepted the voluntary surrender of 2 licenses, closed cases without action against 1 licensee, left cases pending involving 1 licensee, and ordered hearings in cases involving 6 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: 11, total approved: 3, total approved with conditions: 3, continued: 3, 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
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending November 30, 2023.
Residential Property and Owners’ Association Disclosure Statement (RPOADS): The Commission approved the Disclosure Statement language with the below revisions. The Commission then directed Staff to commence the RPOADS graphic design layout and present the draft for the Commission’s consideration.
General and BIC Update Course Topics: The Legal Education Officer reviewed with the Commission the list of possible 2024-2025 Update Course topics recommended by the Commission members who answered the survey. The survey asked for the priority of topics from all the suggestions previously provided by the Commission members, staff, licensees, and educators. Upon the motion of Mr. Aceto, the Commission approved the topics for the 2024-2025 NCREC Update Courses, with the addition of succession plans and Fair Housing, along with some illustrative case studies.
HBCU Outreach: The Diversity, Equity & Inclusion Officer reviewed the DEI program for calendar year 2023. The Commission members commended the DEI Officer on her work.
License Statistics: The Director of Education and Licensing reviewed the Broker License Issuance Report, noting the total broker licenses issued by month, the total broker original licenses issued, and the total broker licenses reinstated from December 2022 – November 2023. Mr. Lindsey requested that certain data become part of the Monthly Licensee Report in the Consent Agenda. Mr. Lindsey would also like to consider whether those brokers coming in to North Carolina without taking the exam require additional supervision from the BIC. Ms. O’Connor noted that every provisional broker requires unique supervision depending on the broker. Mr. Black asked that the rulemaking list for future consideration include a review of Rule 58A .0511 – Licensing of Persons Licensed in Another Jurisdiction. Mr. Lindsey commended the Director of Education and Licensing on the license statistics report.
Report on License Numbers: As of December 1, 2023, there are 125,394 brokers and firms licensed by the Commission, as follows:
Active Full Brokers 78,668
Active Provisional Brokers 5,207
Brokers-in-Charge 17,948
BIC Eligible Brokers 6,129
Inactive Full Brokers 17,116
Inactive Provisional Brokers 7,109
Firms 17,044
Limited Nonresident Commercial Brokers 250
Next Commission Meeting: The next Commission meeting will be held at 9:00am, Wednesday, January 17, 2024, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.
Technology and NCREC
Technology is ever evolving, and new tools are being used to assist with the ongoing demand for information. NCREC has been exploring the use of AI and has found it useful for idea generation and content creation. While it is a useful tool and a time-saver, be aware that careful and thorough review of any created content is necessary to ensure accuracy.
Vacation Rental Fraud – Spring Break Scams
Each year, as Spring Break approaches, we see an increase in vacation rental property owners who are the victims of fraudulent activity. For instance, if a consumer books a vacation rental property for an underage child (typically, a teenager and their friends) for Spring Break, and allows the child to use the unit unsupervised, it could be considered fraud. Parents, relatives or others who may be tempted to gift their teenagers a beach vacation should be aware that intentionally renting a property for unsupervised use by an underage child is a violation of most rental agreements. Consequences that could follow include the property owners and management companies calling the police and/or terminating the vacation rental tenancy without refunding any monies or deposits to the tenant.
Participation in fraudulent activity can be a crime. The article, “Vacation Rental Fraud Scam Alert” provides examples on other vacation rental fraud scenarios and how to avoid them.
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 17th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
By Tiffany Ross- Consumer Resource Officer
Over the past year, the North Carolina Real Estate Commission has released several detailed scam alert articles, including Fake Seller / Fake Buyer Scam Alert, Notary Fraud / Deed Fraud Alert, Be Aware of Scam Sellers, and Rental Fraud Scam Alerts. In addition to these, NCREC, in conjunction with the North Carolina State Bar and Investors Title, hosted several Wire Fraud Conferences across the state. Vacation Rental Fraud is the latest scam that we want to educate consumers about.
Vacation Rental Scams
Many vacation rental scammers use reputable vacation rental websites to advertise, so the scams are harder to spot. These scams affect both the vacation rental tenant, and the property owners, as bad actors will pose as either to run their scheme. For those looking to rent a vacation property, there may be a fake listing where someone asks you to send money in advance as a deposit or full advance payment. Additionally, scammers may hack the email accounts of actual property owners or managers and then contact legitimate travelers and request payments to be made providing different instructions from previous deposits paid. Beware of sending any funds without verifying the receiver is legitimate.
For owners looking to rent out their vacation property, there are several scams to be aware of, including fake guests that will send a fraudulent check for more than the rental rate, and then ask for a refund of the difference. Real guests sometimes will stay and damage the property or plant insects in the property and claim it was damaged on arrival or infested. Another example is parents knowingly renting properties for their underage children for spring break without an adult being physically present to supervise and prevent damage to the property or underage consumption of alcohol. Being aware of these scams and not falling for these tactics can prevent the loss of hundreds or even thousands of dollars.
Action You Can Take:
Red Flags That You May Be Dealing With a Fake Owner/Manager Scammer
What To Do If You Are Already a Victim Of a Vacation Rental Fraud Scam in NC
If you responded to a fake ad and sent money, but never heard from the scammer again, contact the North Carolina Attorney General’s office to notify them of the scam and provide as much information as you can. If the property is located outside North Carolina, contact the Attorney General’s office for that particular state. You should also report the incident to the service or website you were using, and/or the actual owner/property manager if you were a tenant victim, as well as the Federal Trade Commission. You can also contact local law enforcement (sheriff or police) and submit an internet crime complaint to the FBI to report the scam and see if there is any chance of recovery.
How You Can Protect Yourself or Your Clients
If you work in vacation rental property management and have clients who rent their vacation properties to tenants, educate them on these dangers and assist them by enhancing your screening processes of potential vacation rental tenants. If you are working with a vacation rental tenant, provide information like this article to help them avoid the scams and traps, and assist them with carefully verifying the vacation rental details. Stay in contact with them, and make sure they are aware of the NC Vacation Rental Act. If you are considering a vacation rental, be sure to verify that the rental is legitimate and watch out for the red flags above to protect yourself in the process.
If you or your clients have a problem with a vacation rental, and a licensed real estate broker is involved, contact the Commission’s Regulatory Affairs Division at (919) 719-9180. If there are concerns about the actions of an unlicensed property owner managing their own property, or other unlicensed property management activity, contact this office and the Attorney General’s office (877) 566-7226.
Newest Instructor Development Workshop Released
Last month, NCREC released our latest Instructor Development Workshop (IDW) for approved instructors to learn more about how to write exam items that accurately test student knowledge. Writing Effective Exams is now available on the Commission’s education website learn.ncrec.gov.
Warning to Brokers and Consumers to Beware of Unlicensed Activity in NC
NCREC would like the public to be aware of types of unlicensed activity taking place in North Carolina that could result in legal action and possibly criminal charges. In NC, it is illegal to manage properties that belong to others for compensation without a license. Paying ‘referral’ or ‘finders’ fees to people who do not have a real estate license is also illegal in NC. Another common category of unlicensed activity includes brokerage services provided by inactive or expired brokers. For more details on types of unlicensed activity to watch out for and possible legal actions, read this month’s eBulletin article: Brokers & Consumers Should Beware of Unlicensed Activity in North Carolina.
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 week is December 13th here at the Commission building. 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 November 8, 2023
Pending Cases: The Commission entered into consent agreements to suspend 14 licenses, accepted the permanent voluntary surrender of 4 licenses, accepted the voluntary surrender of 1 license, seek 1 injunctive relief, denied the issuance of 1 license, continued consideration of 3 licensees, reprimanded 2 licensees, closed cases without action against 6 licensees, left cases pending involving 5 licensees, and ordered hearings in cases involving 13 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: 12, total approved: 4, total approved with conditions: 2, continued: 4, 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
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending October 31, 2023.
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. S761, Additional General Assembly Appointment, passed into law extending Mr. Ramseur’s term from June 30, 2026, to July 31, 2026.
Donovan v. Excel Property Management, et al.; 23-CVS-001591: The Special Deputy Attorney General for the North Carolina Department of Justice provided a report on the case Donovan v. Excel Property Management, et al.; 23-CVS-001591 noting that they appeared in New Hanover Superior Court on Tuesday, November 7, on behalf of the Commission and the judge dismissed the case against the Commission as well as the other two named defendants.
Residential Property and Owners’ Association Disclosure Statement (RPOADS): The Executive Director provided an overview of the rulemaking process relating to the RPOADS rule, 21 NCAC 58A .0114, and presented a revised version of the Disclosure Statement for the Commission’s consideration. Upon the motion of Ms. O’Connor, the Commission voted to continue the RPOADS discussion to the December meeting.
General and BIC Update Course Topics: The Legal Education Officer reviewed a preliminary list of possible 2024-2025 Update Course topics based upon suggestions provided by Commission members, staff, licensees, and educators. Mr. Bullard, Mr. Aceto, and Ms. O’Connor commended the Director of Education & Licensing, the Legal Education Officer, and the Education Division on the amount of work that went into the 2023-2024 Update courses to make them both engaging and enjoyable for brokers and instructors. Mr. Black requested that unlicensed activity be added to the list of possible topics for the 2024-2025 Update Courses. The Legal Education Officer will send a survey to the members to rank their preferred topics for inclusion in next year’s Update Courses. Mr. Lindsey requested that competency in specialty practice areas, licensee conduct, agency formation, how to read disciplinary actions, and how to communicate with the Commission also be added to the list of topics for the GenUp, and to the BICUP, provisional broker/BIC supervision. Mr. Lindsey commended the Director of Education & Licensing and the Legal Education Officer on their recent presentation to BICs in Charlotte noting that it was extremely well received and attended. Mr. Bullard inquired whether the Commission should be prepared to address the issue of agency compensation in light of the recent litigation against the National Association of REALTORS®. The Executive Director stated that North Carolina is in a better position than many other states because of its existing rule requiring agency disclosure, including written buyer agency agreements. Staff will monitor the litigation and report to the Commission if changes and/or education is needed. The Legal Education Officer noted that Law and Rules and Licensing and Education are standing topics each year, and that an approved instructor requested that current complaints/FAQs be a third standing topic as well. Standing topics will limit available time in the four-hour courses for other topics. Mr. Black asked the Legal Education Officer to let the members know of overlapping topics to help them with ranking their preferences.
Spring Educators Conference: The Director of Education & Licensing provided a preliminary budget for the Spring Educators Conference scheduled for March 19, 2024, at the McKimmon Center at North Carolina State University. The budget for the conference previously approved by the Commission was $25,000. The Director of Education & Licensing proposed a registration fee of $49.00. Upon the motion from Mr. Lindsey, the Commission accepted the proposed budget for the Spring Educators Conference with a registration fee of $49.00.
License Examination Transition and Item Writing Workshops: The Director of Education & Licensing reported that staff in both Education and Licensing and IT are working to make a smooth transition for license examination services from PSI to Pearson Vue in February. One significant change will be 60 state examination questions instead of 40. A number of Item Writing Workshops have been scheduled with instructors to generate test questions. Sixty-four instructors are involved in the eight Item Writing Workshops. Each day, questions are drafted for a different section of the exam. There has been great collaboration with the instructors and the Director commended the Education and Examination Officer on their work on the Item Writing Workshops.
November Education Town Hall: The Director of Education & Licensing reported that 60 instructors attended the November 6 Education Town Hall. Great feedback was received on the Item Writing Workshops. The educators also discussed topics such as forms training and mediation training. All of the Town Halls for 2024 are scheduled from 3:00 – 4:30 p.m. via Zoom and will take place on January 11, April 9, July 23, and October 8. Ms. O’Connor commended the Director of Education & Licensing and the Legal Education Officer on the response and interaction they had with the instructors and education providers.
Report on License Numbers: As of November 1, 2023, there are 124,563 brokers and firms licensed by the Commission, as follows:
Active Brokers 83,474
Active Provisional Brokers 5,266
Brokers-in-Charge 17,885
BIC Eligible Brokers 6,081
Inactive Full Brokers 23,907
Inactive Provisional Brokers 6,851
Firms 16,942
Limited Nonresident Commercial Brokers 240
Next Commission Meeting: The next Commission meeting will be held at 9:00am, Wednesday, December 13, 2023, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.
NCREEA Fall Conference
NCREC recently attended the 2023 North Carolina Real Estate Educators Association (NCREEA) Fall Conference in Winston-Salem, and presented Commission and Legal Updates. The Conference was well attended and offered education opportunities for instructors to improve their technology and gamification in the classroom, a parade of ideas from experienced instructors, and sessions on creating elective courses, making a difference and more. Congratulations to Matt Davies who was installed as President of NCREEA, and award winners Cheryl Sain – 2023 Program of the Year, and Melea Lemon – 2023 Instructor of the Year.
Is due diligence refundable?
NCREC often receives questions about due diligence fees and if they are refundable. Standard form 2-T Paragraph 1(i) states the Due Diligence Fee shall be non-refundable except in certain specific events. These are material breach of the contract by the seller under Paragraph 8 (“Seller Obligations”) or Paragraph 12 (“Delay in Settlement/Closing”), damage or destruction to the property under Paragraph 11 (“Condition of Property/Risk of Loss”), or in accordance with any addendum attached to the contract. A buyer and broker should closely examine the specific contract they are considering using to understand their rights and remedies related to due diligence fees.
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 8th here at the Commission building. 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 October 11, 2023
Pending Cases: The Commission entered into consent agreements to suspend 3 licenses, permanently revoked 1 license, accepted the permanent voluntary surrender of 1 license, closed cases without action against 6 licensees, left cases pending involving 5 licensees, and ordered hearings in cases involving 24 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: 6, total approved: 1, total approved with conditions: 2, continued: 3, and deferred: 0.
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
Independent Annual Audit: The Executive Director reported that the Finance Committee had reviewed the audit report with the auditors and staff. The Commission’s independent auditor also provided an overview of the audit. Upon the joint motion of Mr. Lindsey and Mr. Ramseur, the Commission approved the annual audit.
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. The Director of Regulatory Affairs noted that the budget, H259 2023-2024 Appropriations Act, did pass into law.
Residential Property and Owners’ Association Disclosure Statement (RPOADS): Staff provided an overview of the rulemaking process relating to the RPOADS rule, 21 NCAC 58A .0114, and presented a revised version of the Disclosure Statement for the Commission’s consideration [Exhibit 9]. The Commission discussed the first page relating to instructions and two sections, Sections A – B, during its meeting and noted various topics to be addressed by staff in the next draft including clarifying the instructions regarding the obligation to respond to questions, reformatting ‘additional information spaces’ that relate to the questions, and simplifying the question and table structure. Mr. Malarney asked that the public comment matrix be included in next month’s Disclosure Statement exhibit. The Commission took no action on the Disclosure Statement and will continue its discussion during the November business meeting.
BIC Span of Control: The Executive Director reported that the BIC Span of Control Workgroup met and reviewed the BIC Span of Control exhibit the Commission received. At Mr. Lindsey’s request, the workgroup members discussed the scope of the problems including both misconduct and the failure to act. The group will continue to meet and make updates to the full Commission. Mr. Lindsey asked Mr. Aceto and Mr. Ramseur for any suggestions on the BIC span of control. Mr. Ramseur stated he would be an alternate for the workgroup. Mr. Lindsey offered to share the workgroup minutes from the first meeting and noted that the group is working on how best to approach the subject.
General and BIC Update Course Topics: The Director of Education and Licensing reviewed with the Commission a preliminary list of possible 2024-2025 Update course topics based upon suggestions provided by Commission members, staff, licensees, and educators. As to requests for topics that are generally outside the Commission’s scope, e.g., negotiation training, Ms. O’Connor suggested that these topics be directed to the NC REALTORS® Association. The Director of Education and Licensing asked that the Commission consider any topics that they would like to include in the Update Courses for further consideration at the November meeting.
North Carolina Real Estate Educators Association (NCREEA) Fall Conference: The Director of Education and Licensing reported that NCREEA held its fall, in-person conference in Winston-Salem at the end of September. Ms. Cheryl Sain was awarded Program of the Year and Ms. Melea Lemon was awarded Instructor of the Year. The Director of Education and Licensing noted that the entire Education staff presented at the conference and he gave the closing presentation.
Education Committee Meeting: The Director of Education and Licensing suggested an Education Committee meeting with Mr. Black and Ms. O’Connor to discuss the Education Advisory Committee and topics for the Update course.
Report on License Numbers: As of October 1, 2023, there are 123,647 brokers and firms licensed by the Commission, as follows:
Active Brokers 82,981
Active Provisional Brokers 5,244
Brokers-in-Charge 17,802
BIC Eligible Brokers 6,042
Inactive Full Brokers 16,962
Inactive Provisional Brokers 6,662
Firms 16,805
Limited Nonresident Commercial Brokers 237
Next Commission Meeting: The next Commission meeting will be held at 9:00am, Wednesday, November 8, 2023, in the Commission’s office in Raleigh and is open to the public. It can be viewed via Zoom online video.
Tech Study Group
The North Carolina Real Estate Commission has formed a Tech Study Group consisting of both Commission members and staff. The purpose of the Tech Study Group is to identify technology issues which can improve the function and efficiency of the Real Estate Commission and also to identify technology issues that impact the delivery of brokerage services and better educate and assist brokers in dealing with those issues. Among the many things that are being considered and discussed by the Tech Study group are ADA compliance, the impact of AI models including ChatGPT, the implementation and use of chat bots, cybersecurity, smart contracts and block chain technology. In the coming year watch for future developments, insights and information as a result of the Tech Study Group’s efforts.
Do Emotional Support Animals Require Pet Fees at Vacation Rentals?
Emotional support or therapy animals that qualify as assistance animals are not pets, and the Fair Housing Act (FHA) makes it unlawful for a housing provider to refuse to make a reasonable accommodation. You may view this January 2020 Notice for details. Vacation rentals are not excluded by law, and property owners and managers must follow the guidelines to determine if emotional support animals qualify for the exemption or not. See Part II of the Notice linked above (pg. 7), for a recommended process for determining if an emotional support animal qualifies as an assistance animal. If the animal qualifies as an assistance animal by FHA guidelines, then it is not a pet and reasonable accommodations must be made, including waiver of ‘pet fees’.
If an animal does not qualify as an assistance animal, detailed records of the determination process should be kept to support the decision. These animals would be considered pets and subject to pet fees. It is important to note that a reasonable accommodation can be requested at any time, including after the animal has been introduced into the 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 November 8th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.