Current Stats: Monthly Licensee Count as of March 1, 2023

Tech Corner: Online Payment Systems

Do you have online payment systems such as CashApp, PayPal, Venmo, or Apple Pay? Are you using these online payment systems to receive money while acting in a fiduciary capacity? Do you have a trust account?

Rule 58A .0116(a) requires brokers to deposit all monies received while acting in a fiduciary capacity into a trust or escrow account no later than three banking days following receipt of the funds unless an exception is met.

The Commission is aware that brokers are utilizing online payment systems such as CashApp, PayPal, Venmo, and Apply Pay to transfer funds in brokerage transactions.

Pursuant to Rule 58A .0116(b),

…a broker may only accept custody of a check or other negotiable instrument made payment to the seller of real property as payment for an option or due diligence fee or to the designated agent in a sales transaction for the purpose of delivering the instrument or the seller or designated agent.

These online payment systems are not considered negotiable instruments.

Further, if a broker uses these online payment systems to take custody of funds even if the intent is to assist a customer or their principal with transferring funds to a seller, the broker may be in violation of Commission rules.

However, if a client or consumer would like to use an online payment system to transfer funds, they are permitted to do so. However, the broker/brokerage may not do so without establishing the online payment system as a trust or escrow account per Commission rule requirements.

For more information, contact Regulatory Affairs at 919.719.9180.

Diversity, Equity, and Inclusion Updates

April is National Fair Housing Month.

On April 11, 1968 President Lyndon B. Johnson signed into law the Fair Housing Act; we commemorate the 55^th anniversary of its passage this year. The Fair Housing Act, 42 U.S.C. 3601 et seq, is a federal law that prohibits discrimination against people in a protected class in the renting or buying of a home, getting a mortgage, seeking housing assistance, or engaging in other related activities. 

Who is protected?

The Fair Housing Act prohibits discrimination in housing and related activities on the basis of one’s race, color, national origin, religion, sex – which includes gender identity and sexual orientation, familial status, and disability.

Does North Carolina Have any Fair Housing Laws?

Yes, the North Carolina Fair Housing act: NCGS § 41A. Similar to the Federal Fair Housing Act, the State Fair Housing Act prohibits, and makes illegal, the discrimination in housing and related activities because of race, color, religion, sex, national origin, physical or mental handicaps, and family status.

For more information on the State or Federal Fair Housing laws visit the North Carolina Real Estate Commission’s DEI and Fair Housing pages on the website, here. Also, refer to the Commission’s 2020-2021 General Update Course for a practical refresher.