Disciplinary Actions

CAROLINA TRACE GATED PROPERTIES LLC (SANFORD) – The Commission accepted the permanent voluntary surrender of the real estate firm license of Carolina Trace Gated Properties LLC, effective January 1, 2025, with no right to reapply for 5 years. 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.

NELSON G CASHWELL III (WARSAW) – The Commission accepted the permanent voluntary surrender of the real estate license of Cashwell, effective January 15, 2025. The Commission dismissed without prejudice allegations that Cashwell violated provisions of the Real Estate License Law and Commission Rules. Cashwell neither admitted nor denied misconduct.

WILLIAM S CHERRY (GREENVILLE) – By Consent, the Commission suspended the broker license of Cherry for a period of 12 months, effective January 1, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Cherry purchased a property for the purpose of flipping it. Cherry completed renovations and repairs on the property without permits or licensed contractors as required. Cherry failed to take reasonable efforts to verify whether the renovations to the property required permits and/or a licensed contractor before closing on the property. Cherry negligently misrepresented to the buyer agent that permits were not necessary for the renovations and repairs on the property.

ANDREA B FORTUNE (CONCORD) – By Consent, the Commission reprimanded Fortune effective January 1, 2025. The Commission found that Fortune was the Broker in Charge of the listing firm for the subject property. Fortune’s affiliated broker advertised in the MLS  that the subject property contained 1,200 square feet of heated living area. A potential buyer of the subject property ordered an appraisal which reflected 1,093 square feet. After learning of the error, Fortune’s affiliated broker failed to update the MLS  to reflect the correct square footage.  Fortune failed to adequately supervise the advertising of the Firm.

EMMANUEL G GOMEZ (BURLINGTON) – The Commission accepted the voluntary surrender of the real estate broker license of Gomez, effective January 15, 2025, with no right to reapply for 2 years. The Commission dismissed without prejudice allegations that Gomez violated provisions of the Real Estate License Law and Commission Rules. Gomez neither admitted nor denied misconduct.

STEVEN T KOLENO (WAKE COUNTY) – The Commission accepted the voluntary surrender of the real estate broker license of Koleno, effective January 1, 2025, with no right to reapply for 18 months. The Commission dismissed without prejudice allegations that Koleno violated provisions of the Real Estate License Law and Commission Rules. Koleno neither admitted nor denied misconduct.

HALEY M LANGLEY (RALEIGH) – By Consent, the Commission reprimanded Langley effective January 1, 2025. The Commission found that Langley listed a property and was informed by the owners that the property’s roof was going to be replaced due to recent wind damage. Langley failed to inform the buyer agent of the roof replacement until one day prior to the buyer’s scheduled home inspection.  

DOMAYTI P MORALES (GARNER) – By Consent, the Commission suspended the broker license of Morales for a period of 2 years, effective July 31, 2024. The Commission then stayed the suspension following a 6-month active period upon certain conditions. The Commission found that Morales failed to disclose to the Commission criminal convictions within sixty (60) days of judgment. The convictions were discovered by Commission staff.

RITU MUKIM (APEX) – By Consent, the Commission suspended the broker license of Mukim for a period of 6 months, effective December 11, 2024. The Commission then stayed the suspension following a 1-month active period upon certain conditions. The Commission found that Mukim scheduled a showing for her buyer clients and gave an unlicensed person the code to access the home that was listed for sale. This unlicensed person left the home unlocked so that prospective buyers could tour the home without Mukim being present.

ALICIA R NERIS (CHARLOTTE) –  By Consent, the Commission suspended the broker license of Neris for a period of 12 months, effective January 1, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Neris was the buyer agent for a property in which the Residential Property Owners’ Association Disclosure Statement provided by the seller stated that the property had city water, city sewer, septic, and a private well. The advertisement for the property stated it had city water, city sewer, and septic but did not mention a well. The appraisal reported the property had public water and septic, and it was noted there was no city sewer connection.  Additionally, a home inspection was conducted in which  well repairs were recommended. Neris did not recommend a well inspection to her client. It was later disclosed to Neris the primary water source was a well. Neris failed to perform her due diligence to verify the correct water source and failed to advise her buyer client to obtain a well inspection.

DARRIN P STEPHENS (GREENVILLE) – By Consent, the Commission suspended the broker license of Stephens for a period of 3 months, effective January 1, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Stephens represented a buyer in the purchase of a flipped property. The seller was also a real estate broker representing himself in the sale. Stephens was aware the renovations included electrical, plumbing, cosmetic, and roof repair, however, Stephens relied on the seller’s word that permits and licensed contractors were not necessary for the renovations made. Stephens failed to verify if the renovations to property required permits and/or licensed contractor before closing on the property. Permits and licensed contractors for the renovations performed on the property were required.

REVOLUTION PARTNERS LLC (CONCORD) – By Consent, the Commission reprimanded Revolution Partners LLC effective January 1, 2025. The Commission found that the Firm advertised that the subject property for sale in the MLS  as containing 1,200 square feet of heated living area. A potential buyer ordered an appraisal which reflected 1,093 square feet. After learning of the error, the Firm’s affiliated broker failed to update the correct square footage in the MLS.

ALLYSON G WARD (CHARLOTTE) – By Consent, the Commission suspended the broker license of Ward for a period of 12 months, effective January 1, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Ward was the listing agent for a property of which the sellers completed the Residential Property Owners’ Association Disclosure Statement, and described the property as having city water, city sewer, septic, and a private well. Ward advertised the property as having city water, city sewer, and septic. Ward failed to include the well in the advertisement. After settlement, Ward disclosed that the seller checked the wrong box and the property’s water source was well. Ward misrepresented the water source in the advertisement and failed to take reasonable steps to verify its accuracy.

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

Commission Presentations

January 2025 Presentations

Commission Chair T. Anthony Lindsey and Vice Chair Bill Aceto, with Executive Director Miriam Baer, held a listening session at the NCR Leadership meetings in Winston-Salem.

Bryan Boyd, Deputy Legal Counsel, and Bruce Rinne, Information Officer, spoke at Lantern Realty and Development LLC on January 8^th.

February 2025 Presentations

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

Janet Thoren, Director of Regulatory Affairs, will speak at Canopy REALTOR® Association on February 6^th.

Bruce Rinne, Information Officer, will speak at Allen Tate Glenwood on February 11^th.

Jean Hobbs, Auditor/Investigator, will speak at PROACTIVE Real Estate on February 20^th.

Brian Heath, Consumer Protection Officer, and Jean Hobbs, Auditor/Investigator, will speak at the North Carolina Property Management Conference on February 26^th and February 27^th.

Diversity, Equity, and Inclusion Article

In February we celebrate Black History Month, an opportunity to highlight and honor the history and legacy of African Americans throughout the nation.

In recognition of Black History Month, we’d like to highlight some of the impactful contributions of African Americans in real estate. Some of these notable figures include:

Dorothy Height Was known as the “Godmother of the Civil Rights Movement” for her dedication and advocacy for racial and gender equality. Height tirelessly fought against housing discrimination and advocated for legislation and was pivotal in the passage of the Fair Housing Act.

Patricia Roberts Harris was the first African American woman to hold a cabinet position when she was appointed Secretary of Housing and Urban Development (HUD) in 1977. During her tenure at HUD, Harris was dedicated to reconstructing and revitalizing dilapidated neighborhoods throughout the nation. 

Clarence Mitchell Jr. was a civil rights activist and chief lobbyist for the National Association for the Advancement of Colored People (NAACP). While serving as the NAACP’s Washington director Mitchell was instrumental in the passage of the Fair Housing Act. Mitchell is often referred to as the “101^st senator” for his significant presence on the US Capitol and his influence on the passage of civil rights legislation in the 1950s and 1960s.     The North Carolina Real Estate Commission recognizes that there are countless other pioneers in real estate history, and we encourage you to take the opportunity to learn about these notable figures. 

Case Study: Wire Fraud

FACTS:  A provisional broker (PB) was licensed in December 2024. The PB was affiliated with a Broker-in-Charge (BIC) but had limited interactions with them and was not supervised/trained while conducting brokerage activities. During the first month of licensure, the PB was hired by their first client, a first-time homebuyer. The PB completed the agency agreements and disclosures without supervisionand successfully negotiated the best offer for their client. The buyer client and seller went under contract for a single-family residence.

After the due diligence period ended, the buyer client spoke with their closing attorney. During this conversation, the closing attorney informed them of the law firm’s settlement protocols, including verifying wiring instructions prior to sending settlement funds to their office.

One day before settlement, the PB received an email with wiring instructions for their client’s settlement funds. The email appeared to be from the closing attorney but was sent by a hacker who gained access to the law firm’s email account. Upon receipt of the wiring instructions, the PB  forwarded the email to their buyer client. In the forwarded email, the PB instructed their client to wire the funds to the account specified in the email and failed to advise the buyer client to confirm the information with their closing attorney. The buyer client trusted the advice of their buyer agent and wired $42,000.

The next day the closing attorney contacted the buyer client and informed them that the settlement could not proceed because the funds had not been received. After consulting with law enforcement and their financial institution, the buyer client discovered that the funds were sent to a fraudulent account and could not be recovered.

ISSUE: Did the BIC and PB act competently in this transaction?

ANALYSIS:  No. In this transaction, the BIC and PB were acting as fiduciaries for the buyer client. A fiduciary is an individual(s) entrusted to act on behalf of another in a relationship built on trust, with a legal obligation to prioritize the principal’s interest above their own. The common law of agency requires a fiduciary to:

• remain loyal to the principal and protect their personal and confidential information,
• act in good faith to advance the principal’s interest, and
• disclose all relevant facts that could affect the principal’s decisions.

Further, while acting as fiduciaries, brokers must also safeguard any property related to the client’s transaction, such as money, deeds, and documents.

In this scenario, the PB contributed to the fraudulent activity by forwarding wiring instructions to the buyer without advising them to confirm the information with the closing attorney. This conduct by the PB prevented them from acting in the best interest of their client by protecting their personal information (e.g. bank account) and safeguarding their property (e.g. closing funds). Essentially, the PB would have acted in the best interest of their client if they would have directed the buyer client to follow the protocols established by the closing attorney and communicate directly with them regarding any information or funds needed to proceed with the settlement.

Further, a BIC is responsible for supervising all brokerage activities conducted by a PB pursuant to Rule 58A .0506. A PB cannot hold an active license or engage in brokerage activities without a supervising BIC.

The scenario above indicated that the BIC never reviewed the PB’s brokerage transactions or communicated with them. To ensure competency, the BIC should make sure they have the necessary understanding to oversee their associates’s transactions, including the prevalence of wire fraud and some best practices to prevent it. For help on this topic, review and implement the best practices discussed in the 2020-2021 Update Course Section Cybersecurity.  

The Commission may consider the following criteria in assessing how adequately a BIC supervises a PB. The presence or absence of these factors will be considered along with all other pertinent information in arriving at a disciplinary decision.

1. Is the BIC available to assist, advise, and review the PB’s practices and is the PB available to be supervised?
2. Has the BIC established written policies and procedures under which all affiliated brokers are expected to operate?
3. Does the BIC review and monitor the brokerage activities of PBs?
4. Does the BIC hold regular meetings and otherwise assure proper implementation of and adherence to office policies and procedures?
5. Does the BIC provide ongoing quality training programs and materials to affiliated licensees and disseminate in a timely manner all regulatory information they receive pertaining to real estate brokerage practice?
6. What is the experience level of the PB?
7. Has the BIC delegated supervisory duties to another licensee in the office and, if so, what is the level of training and experience of that supervisory licensee?
8. In what types of brokerage activities is the PB engaged?
9. How many PBs does the BIC supervise and what is the ratio of supervisors to PBs?
10. What, if any, corrective or remedial action does the BIC take upon learning of a violation of the License Law or rules by a PB for whom the BIC is responsible?

If a PB acts incompetently while representing a principal, they may be subject to disciplinary action by the Commission. Further, per Rule 58A .0506, a BIC is responsible for the supervision of the PB, so they too may be subject to disciplinary action.

RESOURCES:

N.C.G.S. § 93A-6(a)(1), N.C.G.S. § 93A-6(a)(8), and 93A-6(a)(10)                        

License Law and Commission Rules: 58A .0110

Articles: 2020-2021 Update Course Section, “Provisional Brokers on a Team” 

2020-2021 Update Course Section, “Cybersecurity” 

Real Estate Closings Brochure  

Recent Arrests, Jury Verdict Highlight Ongoing Need for Wire Fraud Diligence    

Quick Tips from your License Service Specialists

“Education Providers must report your CE to the Commission. There is no need to send NCREC copies of course certificates. Keep those for your records.”  

-Terry C, License Specialist

“Reinstatement is not the same as activation.”     

-Damien M, License Services Team Lead

“These is no separate license for a BIC. The license for individuals is a broker’s license. Whether the licensee is provisional, non-provisional, BIC-Eligible or actively serving as the BIC is a status of the license, not a separate one.” 

– Allison A, License Specialist

“If you have taken the correct Update Course for this license year, 2024-2025, you do not need to take another Update Course during this license year. You will not receive credit for it.         

-Tina R, Senior License Services Specialist.

Reminder: Course Completion Certificates

Video link: https://youtu.be/skAc2ffNAd0

Have you recently completed a continuing education course? Do you have a course completion certificate?

Course completion certificates are for your personal records and should be kept in your file. Your education provider is responsible for reporting your course completion to the Commission within seven days of finishing your course. This ensures your course completion is recorded and posted in your license record. But, if a question arises about whether you took a particular course, having the completion certificate will help alleviate any questions.

For further questions or assistance, please visit the Commission’s Support page.

Don’t Wait: Complete Your CE Early and Stay Ahead for 2025!

While the CE deadline may be June 10, 2025, at 11:59 PM EST, you don’t have to wait until May to start thinking about your continuing education.

What Are the CE Requirements?

According to Rule 58A .1702, brokers must complete eight (8) hours of CE annually to maintain an active license.

• Provisional Brokers and Non-BIC Brokers:
  • Required to take the General Update (GENUP) course and one Commission-approved elective.
• BICs and BIC-Eligible Brokers:
  • Take the Broker-in-Charge Update (BICUP) course and one Commission-approved elective.
  • Important: A BIC or BIC-eligible broker who completes the General Update course instead of the BICUP course will maintain an active license but lose their BIC Eligible status and BIC designation.

Unsure Which Update Course You Need?

Log into your license record on the Commission’s website to confirm your license status before registering for a course.

Finding and Registering for CE Courses

CE courses are available in a variety of formats to suit your schedule and learning preferences:

To Search for In-Person and “Live-Online” CE Courses:

1. Visit www.ncrec.gov.
2. Click on the Education menu.
3. Select Search CE Course Schedules.
4. Click on Search Providers to see a full list of scheduled courses.

You can refine your search by provider, instructor, or city. Contact the education provider directly to register.

To Search for Self-Paced, Online CE Elective Courses:

1. Visit www.ncrec.gov.
2. Click on the Education menu.
3. Select List of Distance CE Providers.

This will display a list of providers offering self-paced elective courses. Contact the provider directly to register.

Don’t Wait Until the Deadline

Avoid the stress of last-minute course completion by planning ahead and completing your CE requirements early. Staying proactive ensures you have plenty of time to choose the courses that best fit your schedule and professional goals. While you can’t predict what life may throw your way, you can ensure your education requirements are met well before the deadline.

For more information, visit the Commission’s website at www.ncrec.gov.

Calling All Certified Education Providers, Approved Instructors, and Education Directors… Shine Bright at the North Carolina Real Estate Commission’s Educator’s Conference!

Video Link: https://youtu.be/Ao7a__WyAzI

Are you an approved instructor, education director, or certified education provider with the Commission? Do you want to take your real estate education career to the next level?

Join us at the highly anticipated Educator’s Conference, where we’ll show you how to become an Education Star in the ever-evolving world of real estate. This dynamic event will cover everything from maximizing the benefits of course audits to mastering the latest revisions in the Prelicensing syllabus and exam. Also, you will discover innovative strategies to effectively engage your students and learn how to harness the power of technology to elevate your teaching methods.

Don’t miss this opportunity to connect with other educational professionals, exchange ideas, and leave inspired to transform the classroom experience. Mark your calendar for March 27 and get ready to shine!

The Importance of Maintaining Your Business Entity with the NC Secretary of State

The Commission would like to remind licensed real estate firms and certified education providers of the critical importance of maintaining their business entities with the North Carolina Secretary of State (NCSOS). Ensuring your entity remains in good standing with the NCSOS is not just a formality but is a legal requirement with serious consequences for noncompliance.

Annual Requirements with the NCSOS

All entities registered with the NCSOS, including corporations, LLCs, and limited partnerships, must meet annual requirements to maintain their active status. These requirements typically include filing an annual report and paying any associated fees by the designated deadline. However, specific obligations can vary based on the type of entity. The Secretary of State has a page on its website titled, Maintaining Registration, which breaks down these ongoing obligations for each type of entity into more detail.

Consequences of Noncompliance

Failing to meet these requirements may result in the administrative dissolution, revocation, or suspension of the entity by the NCSOS. Without an active and compliant status, the entity is prohibited by law from conducting any business activities, including engaging in real estate transactions or offering education as a certified provider.

To ensure compliance, the NCREC conducts regular checks of licensed real estate firms and certified education providers registered with the Secretary of State. If your entity is found to be administratively dissolved, revoked, or otherwise not in good standing with the NCSOS, the Commission will require immediate corrective action.

Even if your firm license or education provider certification remains active and in good standing with the Commission, you cannot lawfully conduct business through an entity that is not in compliance with the Secretary of State. Entities must reinstate their status before resuming business operations. Failure to comply with NCSOS requirements can result in the cancellation of your firm license or education provider certification.

However, any action taken by the Commission is only the beginning of the potential repercussions for failing to maintain your entity’s status with the NCSOS. Operating through an entity that has been administratively dissolved or revoked exposes brokers to significant legal and financial risks. Under North Carolina law, an inactive entity cannot enter into enforceable contracts, which could invalidate real estate transactions and agreements, leaving both you and your clients at significant risk. Additionally, continuing to conduct business through a noncompliant entity may result in personal liability for business debts and obligations, as the legal protections offered by the entity structure may no longer apply. Brokers who knowingly continue to operate through a dissolved or revoked entity could find themselves personally responsible for legal claims, penalties, or damages arising from real estate transactions.

Avoiding Disruption to Your Business

Maintaining your entity with the Secretary of State is a straightforward process. File your annual reports, pay any required fees on time, and address any compliance issues promptly. If your entity’s status becomes inactive or noncompliant, act quickly to reinstate it to avoid serious legal consequences. The NCSOS provides an online system where you can check your status and file necessary documents to remain in good standing.

Failure to maintain your entity’s status will not only disrupt your ability to conduct business but could result in significant legal and financial consequences. While the Commission can cancel your firm license or education provider certification if you fail to resolve your status, the loss of limited liability protections and legal standing is also a considerable  risk. For more information about the annual requirements to maintain your entity with the NCSOS, you will want to visit their website at www.sosnc.gov.