Understanding the Rulemaking Process: A Simple Guide for Real Estate Brokers

In the world of real estate, rules governing brokerage practices help keep everything running smoothly. They protect the public, guide professionals, and make sure laws are applied fairly and consistently. But how are these rules made? Let’s break it down.

Who Makes the Rules?

In North Carolina, the Real Estate Commission (REC) is authorized to create rules not inconsistent with State law.  These rules are written by the REC and then sent to the North Carolina Rules Review Commission (RRC). The RRC reviews the rules to make sure they are legal, clearly written, and adhere to the rulemaking process.  If RRC approves the rules, they are then entered into the North Carolina Administrative Code, Chapter 58.

What’s the Rulemaking Process?

The process of creating or changing a rule is called rulemaking. In North Carolina, the rulemaking process must follow the Administrative Procedure Act’s (APA) strict guidelines.

There are three types of rulemaking:

• Permanent (the most common)
• Temporary
• Emergency

Temporary and emergency rules are only used in special situations and still must go through the permanent process eventually. That’s why this guide focuses on how permanent rules are made.

Step 1: Identifying the Need

It all starts when the REC sees a need to create a new rule, change an old one, or remove a rule that no longer makes sense. This might happen because of new laws, industry trends, or feedback from brokers or the public.

Step 2: Public Notice

Next, the REC writes a draft of the proposed rule and publishes a notice in the North Carolina Register and on the REC’s website. This notice includes:

• What the rule says;
• Why the rule is needed;
• How the public can share feedback; and
• When and where a public hearing will take place.

This notice also goes out to real estate brokers and industry groups to encourage feedback. You can sign up for email updates on rule notifications by subscribing to REC’s mailing list.

Step 3: Public Comment

There’s a minimum 60-day period where anyone—brokers, consumers, or industry groups—can give feedback in writing or by speaking at a public hearing. The goal is to get input and make sure the rule works well in practice. REC encourages brokers to participate and considers all feedback before making its final decision to adopt the rule and proceed with the rulemaking process.

Step 4: Final Adoption

After reviewing public comments, the REC may make small changes to the rule before the final submission to RRC. If the changes are major, the Commission may ask for more public feedback and open another public comment period. Alternatively, the Commission may decide not to proceed based upon the feedback received. If the Commission chooses to proceed, once the final rule text is ready, the REC must vote to officially adopt the rule.

Step 5: Final Review

The adopted rule is then sent to the RRC to ensure the rule:

• Fits within the REC’s legal authority;
• Is clearly written; and
• Follows the law.

If the rule passes this review, it’s published in the official rulebook (NC Administrative Code) and becomes effective—usually at the beginning of the next month or on a set date, such as July 1.

In Summary
Laws (also called statutes) give the overall direction and are passed by the General Assembly and typically signed by the Governor. Rules fill in the details, so everyone understands how to follow the laws in real-life situations. Rules don’t just appear. They go through a careful process that includes research, public input, legal review, and approval. As a broker, staying informed and involved helps shape the rules that affect your profession every day.

Digital Burnout: Managing Technology Tools Without Losing Human Touch

Technology is essential in managing transactions, communications, and advertising. From automated emails and AI-generated listing descriptions to online scheduling apps and virtual showings, brokers have access to a range of tools designed to streamline their work and make it faster.

However, with constant pings, updates, and the pressure to be “always on,” many brokers are facing a modern challenge: digital burnout.

What Is Digital Burnout?

Digital burnout is when the constant use of technology becomes overwhelming, leading to stress, fatigue, and a decline in productivity. It’s not just about staring at screens all day; it’s the mental load of nonstop notifications, multitasking, and the blurred line between work and personal life.

In real estate, where responsiveness and accessibility are key, it’s easy to lose personal connection and fall into a cycle of over-reliance on digital tools.

Signs You May be Experiencing Digital Burnout:

• Feeling mentally exhausted by emails, texts, and app notifications
• Difficulty focusing or prioritizing tasks
• Skipping breaks or meals because you’re “too busy”
• Finding less enjoyment in client interactions or daily routines
• Reduced motivation to use tools or apps that once felt helpful

Strategies to Manage Tech—Without Losing the Human Touch

Here are a few simple ways to prevent digital burnout:

1. Set Digital Boundaries: Define clear business hours in your email signature and on your social media. Use autoreplies to let clients know when you’ll respond, especially outside of work hours.
2. Take Control of Notifications: Customize your devices to only notify you of essential messages. Silence non-urgent app alerts and check social media or other tools at designated times.
3. Schedule Offline Time: Block off parts of your day or week where you go “offline” to recharge. Even a 15-minute walk or tech-free lunch can help reset your mind.
4. Automate Thoughtfully: Utilize automation to save time, but don’t compromise on personalization. For example, you might follow up with an auto-text after a showing, but personalize emails with details specific to your client’s interests.
5. Prioritize Face-to-Face: Picking up the phone or meeting in person can go a long way toward building trust. Clients still value real human interaction.
6. Evaluate Tools Regularly: Not every new tech tool is right for your business. Take the time to evaluate which applications or systems are benefiting your business.

Technology should support your success, not stress you out. The key is a healthy balance of helpful digital tools, personal service, and ethical practice that clients value most.

Your clients chose you, not a bot. Stay human, stay connected, and don’t be afraid to unplug when needed.

Disciplinary Actions

ADVANTAGE PROPERTY MANAGEMENT LLC (THOMASVILLE) – By Consent, the Commission suspended the firm license of Advantage Property Management LLC for a period of 24 months, effective July 30, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Commission staff audited the Firm’s trust accounting records for the period of June-December 2023 and discovered multiple violations of Commission trust accounting rules, including failure to account for trust monies within a reasonable time, commingling, failure to deposit trust funds into the trust account within three banking days, and failure to properly maintain trust account records. The Firm also did not make all records available for inspection as requested by Commission staff.

JACQUELINE HUTTOE – The Commission accepted the permanent voluntary surrender of the real estate license of Huttoe, effective July 16, 2025. The Commission dismissed without prejudice allegations that Huttoe violated provisions of the Real Estate License Law and Commission Rules. Huttoe neither admitted nor denied misconduct.

PHILIP D LEINWAND (WILMINGTON) – By Consent, the Commission suspended the broker license of Leinwand for a period of one-month, effective August 1, 2025. The Commission found that in 2005, Leinwand completed and filed an Application for a Real Estate Salesperson License with the Commission and provided false information in the application. In 2006, Leinwand completed and filed an Application for a Real Estate License with the Commission and provided false information in the application. In 2021, Leinwand completed and filed an Application for a Real Estate Firm License with the Commission and provided false information in the application. Leinwand failed to make full disclosure of all required information in his applications to the Commission in 2005, 2006, and 2021.

JENNIFER M MCCLUSKEY (THOMASVILLE) – By Consent, the Commission suspended the broker license of McCluskey for a period of 24 months, effective July 30, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that in July 2023, after being designated as the Broker-in-Charge (BIC) for Advantage Property Management LLC, McCluskey designated herself as the Qualifying Broker and falsely certified to the Commission that she was an officer/manager/general partner of the firm, when she was not.  An audit conducted by Commission staff while McCluskey was BIC for the firm evidenced multiple violations of Commission trust accounting rules, including failure to account for trust monies within a reasonable time, commingling, failure to deposit trust funds into the trust account within three banking days, and failure to properly maintain trust account records. McCluskey also did not make all records available for inspection by Commission staff as requested and did not properly supervise unlicensed staff members.

ROGER A PARHAM (CHARLOTTE) – The Commission accepted the permanent voluntary surrender of the real estate license of Parham, effective July 16, 2025. The Commission dismissed without prejudice allegations that Parham violated provisions of the Real Estate License Law and Commission Rules. Parham neither admitted nor denied misconduct.

PAUL E PORTERFIELD (GRIFTON) – By Consent, the Commission suspended the broker license of Porterfield for a period of 9 months, effective July 30, 2025, after he failed to comply with certain conditions of his Consent Order.  The Commission found that Porterfield failed to use written agreements for broker services, allowed his unlicensed firm to be paid a commission for real estate brokerage services, and failed to deposit trust monies in a trust account within three banking days of receipt.

WILLIAM W RIKE (NEWPORT) – By Consent, the Commission suspended the broker license of Rike for a period of 6 months, effective July 1, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Rike received a lead from the assumed seller of a vacant lot. Rike executed a listing agreement with the assumed seller and failed to take reasonable steps to identify this individual. Rike believed the email address belonging to the assumed seller was legitimate because it matched the name of the true owner. Rike had the assumed seller sign the listing agreement electronically. The vacant lot  went under contract with a potential buyer; however, the contract was terminated. The transaction successfully closed with a second buyer, but after it was discovered that the assumed seller was fraudulent. The true owner was unaware of the transaction until after the transaction closed.

KENNETH U ROUNDTREE (GREENSBORO) – The Commission accepted the permanent voluntary surrender of the real estate license of Roundtree, effective July 16, 2025. The Commission dismissed without prejudice allegations that Roundtree violated provisions of the Real Estate License Law and Commission Rules. Roundtree neither admitted nor denied misconduct.

ROBERT E SCHNEIDER (LONGS, SC) – The Commission accepted the voluntary surrender of the real estate license of Schneider, effective July 16, 2025, with no right to reapply for three years. The Commission dismissed without prejudice allegations that Schneider violated provisions of the Real Estate License Law and Commission Rules. Schneider neither admitted nor denied misconduct.

STEEL SKIN REALTY LLC (CHARLOTTE) – The Commission accepted the voluntary surrender of the real estate firm license of Steel Skin Realty LLC, effective July 16, 2025. The Commission dismissed without prejudice allegations that the Firm violated provisions of the Real Estate License Law and Commission Rules. The Firm neither admitted nor denied misconduct.

Current Stats: Monthly Licensee Count as of July 1, 2025

Commission Presentations

July 2025 Presentations

Dillian Hecht, Associate Legal Counsel II, spoke at Brunswick County Association of REALTORS® on July 11^th.

Lyndi James, Auditor, spoke at Realty One Group Affinity on July 16^th.

Brian Heath, Consumer Protection Officer, spoke at Carolina Smokies Association of REALTORS® on July 17^th.

August 2025 Presentations

*These presentations are subject to change due to the availability of Commission members and/or staff.*

Jean Hobbs, Auditor/Investigator, will speak at Keller Williams Realty Fayetteville  on August 5^th.

Miriam Baer, Executive Director, will speak at Neuse River Region Association of REALTORS® on August 20^th.

Bruce Rinne, Information Officer, will speak at Lantern Realty and Development LLC  on August 27^th.

Reminder: Ensure Your CE Courses Are Posted Accurately

Recently, some brokers discovered that their CE courses completed during the 2024-2025 license year weren’t posted to their license record because of an error by their education provider. This lead to their licenses being placed on inactive status. According to Rule 58H .0207(f), Education Providers (EPs) are required to submit course completion reports to the Commission within 7 calendar days of a brokers completion of the course.

Mistakes can happen. To prevent surprises at renewal, brokers should:

1. verify their course completion certificate for accuracy, especially as to name and license number,
2. log into www.ncrec.gov to confirm all CE courses are listed within 10 days of completion, and
3. request an EP to correct any errors and/or timely submit their course completion information to the Commission if they have not done so in adherence to License Law and Commission rules.

Brokers should not send their course completion certificates to the Commission. EPs are required under Rule 58H .0207(f) to submit this information within 7 calendar days of a broker’s completion. The Commission asks brokers to regularly review their license record to ensure their license status remains active and to prevent any disruption in brokerage activities.

Fair Housing Training

In April of this year, the North Carolina Real Estate Commission hosted the first of three Fair Housing Symposia. This series of continuing education training is hosted in collaboration with presenters from the state and local Human Relations Commission, Legal Aid of North Carolina Fair Housing Project, and the United States Attorneys’ Office. During these training courses, attendees gain valuable knowledge and insight into the various components of fair housing laws, including some lesser-known areas of enforcement, hearing directly from experts who investigate and prosecute fair housing violations.

The second symposium will be held in Charlotte on August 18^th. The third and final offering will be held in Wilmington on October 30. Don’t miss out on the opportunity to gain a greater understanding of your duties under fair housing laws, emerging fair housing trends, and pick up some best practices as a practitioner. Real estate brokers will earn 4 hours of CE credit and satisfy the National Association of REALTORS® fair housing training requirement. Attorneys and paralegals will earn 3.5 hours of CLE credit. Limited seats remain, so be sure to register here today. 

William “Bill”  Aceto Elected Chair, Melvin “Skip” Alston, Vice Chair

Executive Director Miriam Baer announced that William “Bill” Aceto of Boone has been elected as Chair and Melvin “Skip” Alston of Greensboro as Vice Chair of the North Carolina Real Estate Commission. Their terms will begin on August 1, 2025.

Bill Aceto was appointed to the Commission by the General Assembly in 2023. Licensed since 2007, Aceto specializes in investment properties, commercial real estate, development, large acreage tracts, building lots, residential brokerage and long-term property management. As a REALTOR® committed to property owners’ rights, Aceto also personally invests in rental properties, land tracts, and residential properties in the High Country.  Aceto and his Blue Ridge Realty & Investments partner, Todd Rice, also co-founded and operate Blue Ridge Professional Property Services, LLC, Boone High Country Rentals, and Ashe Rental Agency.

Having held leadership positions for the High Country Association of REALTORS®, including President in 2019, Aceto was named the 2020 High Country Association REALTOR® of the Year.  Aceto is active in the North Carolina REALTORS® and was a 2015 Graduate of the NC REALTORS® Leadership Academy. He has been the Chair of NCR Legislative and RPAC Committees as well as its Property Management Division (PMD), and was also a Federal Political Coordinator for NAR® for over 10 years. Additionally, he has served as a public member on the North Carolina Building Commission, is a former member of the Town of Boone Board of Adjustment (ETJ Alternate), and past Chairman of the Watauga County Board of Elections. He graduated from Appalachian State University with a degree in Political Science with minors in Business and Criminal Justice and served as the Chair of Appalachian State Board of Visitors.

Bill lives in Boone with his wife, Sallie and children, Liam (8) and Maggie ( 6 ). 

Melvin “Skip” Alston was recently appointed to the Commission by Governor Roy Cooper on October 9, 2024.  Mr. Alston is the owner and founder of The Alston Realty Group, Inc. in Greensboro, NC, which has been in continuous operation serving the greater Greensboro area for over 42 years. A recipient of the Order of the Long Leaf Pine, Mr. Alston has served as a leader in his community, across North Carolina and the nation since 1987. He has served in numerous capacities and on several Boards. He is the current chairman for the Guilford County Board of Commissioners and has served on the board for 27 years. He is also a Diamond-Life Member of the NAACP and has served on their local, state and national levels for over 25 years. Mr. Alston has also served as the North Carolina NAACP President.

He is the Co-Founder and Co-Chairman of the Board of Directors for Sit In Movement, Inc. a nonprofit corporation formed for the purpose of purchasing and renovating the Historical Woolworth Building in downtown Greensboro into an International Civil Rights Center and Museum, which opened February 1, 2010.

Mr. Alston previously served on the North Carolina Real Estate Commission, appointed in 2003 by the Speaker of the House and elected Chairman of the Commission in 2007 and again in 2008.

A Durham native, Mr. Alston attended North Carolina Central University, with a major in Business Administration. He has been licensed as a broker since 1982. Mr. Alston, his wife Gwendolyn and their adult sons, DeSean and Ryan, are based in Greensboro and are all North Carolina real estate brokers.

A Message from Regulatory Affairs About Commission Rule A. 0112:

The Commission is complying with Session Law 2025-52 (Senate Bill 690) by initiating permanent rulemaking to amend 21 NCAC 58A .0112: Offers and Sales Contracts. During this rulemaking process, the Commission will not enforce the provisions of the current rule that are subject to change.  A broker acting as an agent in a real estate transaction may use a preprinted offer or sales contract form containing provisions concerning the payment of a commission or compensation, including the forfeiture of earnest money, to a broker or firm.

This action is taken in accordance with legislative direction and is designed to provide clarity during the rule revision period.

The public hearing scheduled for August 14, 2025, at 9am, will only address proposed changes to 21 NCAC 58A .0503.  The Commission will hold a public hearing on changes to 21 NCAC 58A .0112 as directed by the legislature at a later date.  Subscribe to the Commission’s mailing list to receive notice of rulemaking:  Subscribe to our mailing list

For questions or additional information, please contact Regulatory Affairs at (919) 719-9180.

Commission Presentations

June 2025 Presentations

Lyndi James, Auditor, spoke at Coldwell Banker Sea Coast Advantage June 10^th.

Mel Black, Commission Member, accompanied by Janet Thoren, Director of Regulatory Affairs, spoke at Cleveland County Association of REALTORS® on June 11^th.

Dillian Hecht, Associate Legal Counsel II, spoke at Allen Tate Glenwood on June 24^th.

July 2025 Presentations

*These presentations are subject to change due to the availability of Commission members and/or staff.*

Dillian Hecht, Associate Legal Counsel II, will speak at Brunswick County Association of REALTORS®  on July 11^th.

Lyndi James, Auditor, will speak at Realty One Group Affinity on July 16^th.

Brian Heath, Consumer Protection Officer, will speak at Carolina Smokies Association of REALTORS®  on July 17^th.