Update Instructor Seminar
Last month we held our first two In-person Update Instructor Seminars for the 23/24 license year in Raleigh and Charlotte. They were a great success! This course is for NCREC approved instructors only. There is no fee for the course, and no CE or Instructor credit will be awarded. There are 5 remaining sessions scheduled both in-person and by zoom, view and register for them here.
Small Claims Court Process
Buyers often ask how they can pursue a seller if they believe they are entitled to a refund of earnest money or due diligence fees paid. For an amount less than $10,000, the claim can usually be handled before a magistrate in small claims court. In NC, depending on the county, the maximum amount that can be claimed in small claims court is between $5,000 to $10,000. If your claim is greater than the small claims amount but less than $25,000, the case needs to be filed in district court. If greater than $25,000, your case must be filed in superior court. The plaintiff will need 3 copies of their complaint, 3 copies of the Magistrate Summons, and a filing fee of $96.00 to file a case in small claims court, although local requirements may vary. More information and forms can be found on the NC Judicial Branch website.
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 July 19th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Commission Meeting News
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 14, 2023
Pending Cases: The Commission entered into consent agreements to suspend 9 licenses, accepted the permanent voluntary surrender of 1 education provider approval, accepted the permanent voluntary surrender of 1 license, closed cases without action against 2 licensees, left cases pending involving 1 licensee, approved 1 license following a hearing, granted approval to seek injunctive relief if needed against 2 individuals, and ordered hearings in cases involving 16 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: 9, total approved: 4, total approved with conditions: 3, continued: 1, and 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
Legislative Report: Staff 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.
Annual Rulemaking: Staff reported that the proposed rule changes that the Commission voted to adopt at its April 19, 2023, meeting were approved by the Rules Review Commission on May 18, 2023, and are posted on the Commission’s website. The rules are effective July 1, 2023.
Renewals: The Director of Education & Licensing reported that 72% of brokers and firms had renewed as of June 14, 2023. They stated that since May 15, License Services staff have answered over 16,400 phone calls. Further, as of June 14, 3,246 brokers were CE-deficient because they did not meet the June 10 deadline. Based on past data, the Director of Education & Licensing is expecting approximately 750 brokers to remedy their CE deficiencies.
Update Course Development: The Director of Education & Licensing and the Legal Education Officer reported that the 2023-2024 Update course is complete. The student manual and the slide presentations have both been shortened in response to feedback from education providers. The first Update Instructor Seminar was taught on Tuesday, June 13, 2023, to 80 instructors at the McKimmon Center at NC State University.
Report on License Numbers: As of June 1, 2023, there are 129,601 brokers and firms licensed by the Commission, as follows:
Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, July 19, 2023, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.
Renewal Update – Last Chance!
All broker and firm licenses must be renewed by June 30th. Provisional brokers, brokers, BIC’s, firms, limited nonresident commercial brokers, all licenses must be renewed by 6/30. Failure to renew will cause your license to expire. If a license expires, all brokerage activity must cease. No actions that require a real estate license are allowed (including referrals). If you allow your license to expire, and wish to practice real estate in the future, you will have to reinstate and reactivate your license. This will require several steps, which get more involved the longer you wait. Brokers can check their renewal status by logging in under the licensing tab on our website, and get answers to the most frequently asked questions in this month’s eBulletin article.
Do I need a real estate license to co-host an Airbnb?
We receive calls daily asking if co-hosting property on Airbnb requires a real estate license. If you are performing cleaning, maintenance, recommending restaurants or local attractions, these type of activities do not require a license. If you are handling funds of others, negotiating lease terms, or collecting rent or deposits, these activities require a real estate license. Be careful of the terminology you use. Do not call your fees a ‘commission’ or a ‘management fee’ as this implies that you have a license that enables you to receive those fees. Instead, you should consider using terms such as ‘service’ or ‘maintenance’ fees or something comparable, to prevent confusion about the services you are providing. View GS 93A-2(a) for a definition of a real estate broker and a list of activities requiring a real estate license.
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 July 19th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
All renewals due by 6/30.
All broker and firm licenses must be renewed by June 30th. Brokers can check their renewal status by logging in under the licensing tab on our website, and get answers to the most frequently asked questions in this month’s eBulletin article.
Questions about estates?
We receive many calls with questions about estates. It is possible for a licensed broker to list a property for sale on behalf of an executor or administrator of an estate. However, everyone involved must follow NC law regarding probate of an estate. Advice from a probate attorney is recommended for both the broker and executor or heir. View this link for details on estates and the probate process.
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 tomorrow here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Only 10 days for Continuing Education
The continuing education (CE) deadline is quickly approaching. All GenUp/BICUp and Elective courses must be completed by June 10th to remain actively licensed on July 1st. Visit the Education tab on our website ncrec.gov, and select Search CE Course Schedule. Enter your preferred search parameters to find available classes near you.
Bedrooms, Occupancy Limits and Square Footage
Recently we have received calls with questions about the definition of a bedroom, e.g., if it has to have a closet, door or even 4 walls. One consideration for the bedroom question is what the sewer or septic occupancy will allow. City/county sewer and private septic systems have limits on occupancy based on what the system has been designed to handle, and you cannot advertise more bedrooms than the occupancy limit. Similarly there have been calls about square footage, and what counts and what does not for valuation purposes. See this Bulletin article for details on the difference between NCREC Residential Square Footage Guidelines vs. ANSI Standard to help answer this question.
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 June 14th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Pending Cases: The Commission entered into consent agreements to suspend 6 licenses, accepted the voluntary surrender of 2 licenses, continued hearings to a later date for a case involving 1 licensee, closed cases without action against 1 licensee, left cases pending involving 6 licenses, revoked 2 licensees, and ordered hearings in cases involving 14 licensees.
License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 9; total approved: 8.
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
Legislative Report: Staff 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.
Rule 21 NCAC 58A .0114: The Commission thanked licensees and the public for their interest in the Commission’s rulemaking and their comments on the proposed rules. Staff reviewed the recommendations on Rule 21 NCAC 58A .0114, which if adopted would be effective July 1. The Commission then voted to adopt the changes as presented.
Draft Residential Property and Owners’ Association Disclosure Statement: Staff reviewed a draft revision of the Residential Property and Owners’ Association Disclosure Statement (RPOADS), noting that the form is divided into categories to clarify disclosure topics for the seller and the buyer. After review, the Commission voted to publish the draft RPOADS with the following revisions:
LaRose v. NCREC: 23 REC 00687: The Director of the North Carolina Real Estate Commission reported that the case, LaRose v. NCREC; 23 REC 00687, was dismissed by the Office of Administrative Hearings based upon lack of subject matter jurisdiction as well as other substantive grounds.
Renewals: The Director of Education & Licensing reported that licensees must renew by June 30, 2023 in order to maintain a license. They also reported on the comprehensive planning for renewals, including advance electronic notices and reminders in the Commission’s social media and the Bulletin. On the first day of renewals, License Services renewed 11,929 brokers, and 2,086 firm licenses, while taking 1,116 phone calls. By the second day, 19,202 brokers renewed along with 3,346 firms. A total of 17% of brokers have been renewed and 20% of firms. Commission member Chandler asked that staff revisit the possibility through rulemaking that an Education Provider would not be required to renew when they do not offer classes directly to students but still want to control their course content.
May 3 Education Town Hall: The Director of Education & Licensing reported on the May 3 Education Town Hall noting that 65 educators attended. There were questions about renewals, Prelicensing, Postlicensing, and CE approval. The next Town Hall is on August 7, 2023.
2023-2025 North Carolina Real Estate Manual: Staff presented the Commission members with the newest addition of the North Carolina Real Estate Manual. They thanked the Commission Chair Mel Black for his contribution on chapter five.
Report on License Numbers: As of May 1, 2023, there are 128,798 brokers and firms licensed by the Commission, as follows:
Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, June 14, 2023, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.
Renewal is Open
The renewal portal for real estate licenses is now open at NCREC. All broker, firm and LNCL licenses must be renewed no later than 11:59 PM on June 30th. On the home page of the Commission’s website, choose the Licensing tab and scroll down to Licensee Login or Firm Login to renew. Once you have logged in, click the link “Renew Your License” and follow the instructions.
Cemetery and Grave Disclosures
Consumers and brokers have contacted NCREC with questions about required disclosures concerning graves on properties. Graves on private property, including graves with only urns, may have an easement so that future family descendants can visit them. There are rights that family members may have to enter the property to visit the gravesite, with or without the consent of the property owner. Graves should be on a survey and marked by GIS in the county. Graves can be removed, but it is a difficult process and county ordinances must be followed. For these reasons, graves are a material fact that an NC broker should discover and disclose to any interested party to the transaction. View North Carolina GS Chapter 65 for more information on NC laws regarding cemeteries.
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 tomorrow May 17th here at the Commission building. A Zoom link will be available at ncrec.gov on the day of the meeting.
Pending Cases: The Commission entered into consent agreements to suspend 11 licenses, accepted the voluntary surrender of 3 licenses, voted to extend to a later date cases involving 2 licenses, closed cases without action against 9 licensees, left cases pending involving 9 licenses, revoked 1 license, and ordered hearings in cases involving 21 licensees.
License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary action by another licensing board are separately considered by the Commission. Decisions are made based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 10; total approved: 8.
License Examination Results: A summary of key data relating to persons taking the exam for the first time is provided below:
Individuals Tested for the First Time | ||||
Took prelicense course | Hold license from another state | |||
March 2023 | April 2022 through March 2023 | March 2023 | April 2022 through March 2023 | |
# Tested | 598 | 5955 | 15 | 242 |
% Pass both sections | 51% | 49% | N/A | N/A |
% Pass National section | 79% | 78% | N/A | N/A |
% Pass State section | 60% | 55% | 20% | 40% |
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.
Annual Rulemaking: Staffed reviewed the recommendations on proposed rules, which if adopted would be effective July 1, 2023. See the Commission’s homepage for more information about proposed rulemaking.
BIC Focus Groups: The Director of Regulatory Affairs reviewed a report on the BIC Focus Groups and surveys and asked Commission members to consider what actions and next steps they might like to pursue relating to the span of control of brokers in charge.
Educators Conference: The Director of Education & Licensing provided a report on the March 21 Spring Educators Conference noting that 335 people attended the conference. Stephanie Walker was awarded the 2023 Larry A. Outlaw Excellence in Education Award. The total conference cost is $6,121.74 against a budget of $36,000.00.
License Exam Statistics: The Director of Education & Licensing provided a report on the third-quarter license exam statistics noting that the monthly pass rate in March was 69%, pulling the yearly average pass rate up to 63%. Only eight instructors are currently performing under the 40% pass-rate threshold.
Real Estate Manual: The Director of Education & Licensing reported that Staff completed the 2023 edition of the Real Estate Manual, which is being printed and set for release in six weeks. The Director of Education & Licensing noted that there are some issues with the online manual, including that page numbers cannot be added to the book. Staff is researching options to improve the online delivery platform, including alternate providers.
Report on License Numbers: As of April 1, 2023, there are 127,978 brokers and firms licensed by the Commission, as follows:
Next Commission Meeting: The next Commission meeting will be held at 9:00 a.m., Wednesday, May 17, 2023, in the Commission’s office in Raleigh and is open to the public. It also can be viewed via Zoom online video.
Interested in obtaining a real estate license?
Take a look at the syllabus for the Broker Prelicensing Course that is posted on our website. It is the basis for all NC Prelicensing courses and has recently been updated to reflect current laws, rules, and forms. Available education providers and course schedules are searchable under the Education tab on our website.
Solar Panel Loan Assumption
There have been several questions about solar panels in recent consumer calls. It is important to note that solar panels are typically attached to the property in a permanent manner and are generally considered to be a fixture that will remain with the home. If the parties use the standard residential contract form, it states: “ALL EXISTING FIXTURES ARE INCLUDED IN THE SALE AS PART OF THE PURCHASE PRICE, FREE OF LIENS, UNLESS EXCLUDED IN SUBPARAGRAPHS (d) OR (e)”. This means that if there is an existing lien on the solar panels, the seller should pay it off prior to or at the sale of the home, unless the parties agree otherwise in their contract. If a seller requires, as a condition of the sale, for the buyer to assume the seller’s responsibility for a solar panel lien, this is a material fact that should be disclosed to the buyer prior to their making an offer, including the lien amount they are to assume.
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 tomorrow is in Edenton at the Historic 1767 Chowan County Courthouse. A Zoom link will be available at ncrec.gov in the morning.
Educators Conference Review
The 2023 Spring Educators Conference – NCREC Trek, was held last month before a sold out crowd of over 300 instructors. Thank you to all who attended, for dedicating yourself to learning, improving and increasing the success of your students. Educators learned about licensing and education stats, benefits of course audits and SMART learning objectives, optimizing zoom waiting rooms and gamification through Flippity, the importance of following the syllabus and how to engage the unengaged. Congratulations to Stephanie Walker, this year’s recipient of the Larry A. Outlaw Excellence in Education Award. If you were unable to attend and need education credit, there is a brand new instructor development workshop (IDW) being released this month. Visit the Education tab on our website for more details. If you are a licensed instructor and have education questions or concerns, join us at our next Educators Town Hall Meeting 5/3/23 at 3pm.
Rental Fraud Concerns
Similar to our recent warnings about increases in wire fraud, seller fraud and deed fraud, consumers and brokers should also be aware of rental scams. Many rental fraud scams take place online or through social media targeting would-be renters, asking them to send money upfront for deposits before even viewing the property, and then disappearing once the money has been sent. View this recent consumer article on our website to learn how to spot red flags and avoid becoming a victim. If you are already a victim of a rental fraud scam you should contact the Attorney General’s office to report the scam, as well as local law enforcement.
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 April 19th in Edenton at the Historic 1767 Chowan County Courthouse. A Zoom link will be available at ncrec.gov on the day of the meeting.