Tech Corner: Maintaining a Professional Online Presence

Video link: https://youtu.be/8MDeKTIFbC0

In today’s digital world, social media has become a crucial tool for growing businesses looking to build their brand and foster relationships with clients. By effectively using social media platforms, real estate brokers can set themselves apart from others and expand their network. Whether you’re just getting started or looking to enhance your online presence, it is important to keep yourself safe while being mindful of what you say on the internet and how you say it.

1. Why social media? Social media is a powerful business tool that allows real estate brokers and firms to connect with potential clients, build new relationships, and establish a strong online brand presence. Brokers can showcase properties, advertise services, and offer tips to consumers.
2. How can I protect my personal information? It is important to take personal safety into consideration when using social media. Brokers may want to separate their personal profiles from their business profiles. Use strong, unique passwords for both personal and business social media accounts. Enabling two-factor authentication for added security helps to protect both types of accounts. Be mindful of oversharing personal details, especially if you have public-facing business accounts. Avoid sharing private moments that could potentially harm your professional reputation.
3. What can I share? Your business accounts should maintain a professional, clear, and consistent tone appropriate for your brand and audience.The Commission has received complaints about brokers posting offensive content on social media. Posts that someone may consider offensive (e.g. discriminatory, political, angry rants, etc.) may not only damage your business and reputation but may lead to complaints with consumer websites, professional groups or associations, your firm and the Commission. Brokers are entitled to express their opinions and political beliefs. Being rude is generally not enough to constitute a violation of the License Law or Commission rules. On the other hand, the Commission may reprimand, suspend or revoke the license of a broker who is unworthy to act as a broker in a manner as to endanger the public interest. This could include conduct such as threatening physical harm or violence. As brokers continue to expand their use of social media to network and promote their businesses, brokers should carefully consider the effect of their online presence, particularly on professional pages. A firm’s broker-in-charge (BIC) should also consider using written office policies to address their broker’s conduct in communicating in person and online. For more information, review the eBulletin article, Think Before You Speak…or Post.

By taking these steps, you can maintain privacy and security for both your personal and professional life, reducing the risks of data breaches, identity theft, and unwanted cross-over between your personal and business worlds. The choices you make online can leave a long-lasting digital footprint, making it more important than ever to be intentional about the digital you leave behind.

Medicaid Liens on Real Property

Recently, brokers have been requesting information on Medicaid liens for properties that are being voluntarily sold and placed on the market. This article was written to help clarify the source, nature and effect of Medicaid liens on real estate.

Medicaid is a federal program, established in 1965, that is managed individually by each state to provide healthcare coverage for individuals who do not qualify for welfare but still have incomes low enough that they cannot afford healthcare on their own. In North Carolina the Medicaid program is administered by the North Carolina Department of Health and Human Services (DHHS).

Medicaid eligibility is based on limited assets. A Medicaid recipient is entitled to retain their home as a primary residence so long as the home’s equity does not exceed a certain amount, which can change year to year.

Should the recipient require long term care, such as a nursing home, then Medicaid rules envision using the equity in the home to recover those expenses and recovering the costs from the homeowner. More information is available from the NC Department of Health and Human Services,  

As part of these recovery programs, Medicaid will place a lien on the real estate for the amounts expended for care. It is not uncommon with extended care facilities or nursing homes for those costs to be thousands of dollars per month. While Medicaid has a lien on the property, the program is precluded from foreclosure as a lien holder under certain circumstances such as when:

• A spouse still resides in the property;
• A minor child resides in the property;
• An adult child resides in the property but acts as a caretaker.

For real estate professionals, this means that there could be a Medicaid lien on the property, which is not being foreclosed upon, but which will need to be satisfied in full with the NC Department of Health & Human Services should the owners wish to engage in a voluntary sale of the property.

Many recipients and family members may believe that the home is an exempt asset. While the home is considered an exempt asset for purposes of Medicaid qualification, it may still be subject to liens by Medicaid. Determining the amount of the lien and obtaining approval for the sale from government entities may take longer than the parties anticipate. It is also possible that the existence of the lien may affect the decision or ability of the owners to transfer the property. As a result, advice from an attorney in such situations is strongly encouraged.

When a broker is aware that a Medicaid lien is attached to the property, the broker should disclose this to any prospective buyer.  Listing brokers who are aware that their seller-client is receiving Medicaid should inquire about the existence of a Medicaid lien. If one exists, listing agents  should strongly encourage sellers to speak with an attorney specializing in Medicare benefits prior to listing their home.

Reminder: Reconcile Your Trust Account Knowledge

Commission Rule 58A .0110(g)(9) requires Brokers-in-Charge to complete the Commission’s Basic Trust Account Procedures Course within 120 days of assuming responsibility for a trust account provided they have not already completed the course within the previous three years. If the BIC never opens another trust account or assumes control of another one, they are not required to complete the course again.

Even so, BICs are encouraged to complete the course on a more routine basis. For the 2020-2021 license year, the mishandling of trust account funds resulted in almost 20% of all disciplinary actions. The Commission has since revamped its Basic Trust Account Procedures Course and now offers it through distance (self-paced online) delivery on our Online Training Portal (https://learn.ncrec.gov). While trust account issues have slowed, mismanagement of the funds of others remains an ongoing issue.

While all licensees must safeguard and protect the money and property of others entrusted to them, the ultimate responsibility to oversee and safeguard the monies of others passing through the office rests with the BIC. The BIC remains responsible for the trust account, even if they hire an assistant, accountant, or bookkeeper to assist with record-keeping. Brokers should be mindful of the fact that embezzlement can happen even with trusted bookkeepers or long-time employees, and it is made easier when there is no oversight of their activity.

Since the responsibility ultimately falls on the Broker-in-Charge, it is in their best interest to maintain a working knowledge of how to properly maintain a trust account. BICs who complete the course will, at a minimum, learn what they need to know to adequately supervise their bookkeeper and what the software program needs to be able to produce in the way of reports in order to be compliant. As a bonus, it also qualifies as an elective continuing education course.

Whether a Broker-in-Charge personally maintains their brokerage’s trust account or delegates that responsibility to others, it is essential they maintain an active working knowledge of the rule requirements regarding the handling and reconciliation of funds in that trust account. Even if a BIC is in compliance with the minimum requirement to complete the Basic Trust Account Procedures Course once, it is highly recommended they regularly review and complete the course in order to ensure the safeguarding of their clients’ money and for the protection of their own business.

They Did What?! 

Prior to listing their property, the Seller completed the Residential Property and Owners’ Association and Disclosure Statement (RPOADS) and Mineral and Oil and Gas Rights Disclosure Statement (MOG). The Seller marked “No Representation” for their responses on the RPOADS.

Buyer and Seller went under contract using the NCAR/NCBA Standard 2-T Offer to Purchase and Contract. During the Due Diligence Period, Buyer discovered an issue that the Seller chose not to repair, nor did the seller offer concessions. Buyer terminated the contract and requested the return of the non-refundable Due Diligence Fee (DDF). The buyer agent (BA) threatened to file a complaint against the listing agent (LA) with the Commission if the Seller did not refund the DDF based on the seller’s lack of disclosure. The repair issue in question may or may not have been something the LA should or could have reasonably known existed.

In North Carolina, a broker should consider the following points:

• a broker is responsible for discovery and disclosure of material facts;
• while brokers have an affirmative duty to discover and disclose material facts, brokers are not expected to be experts on everything about a property;
• buyer agents should fully prepare their client prior to submitting an offer about the fact that once paid, the DDF is rarely refundable;
• disputes leading to complaints between brokers should be separate from contract negotiations;
• weaponizing the filing of complaints or lawsuits against another broker to have them strongarm their client would be a breach of fiduciary duties and possibly the REALTOR® Code of Ethics.

If you have any questions or need further clarity, you may email Regulatory Affairs at regulatoryaffairs@ncrec.gov.

Is a Federal BOI Filing Required for a NC Brokerage Entity?

The federal Corporate Transparency Act (CTA) was passed in 2021 and included significant reforms to prevent money laundering, combat terrorist funding and reduce corruption and tax fraud. Part of the CTA was the creation of an e-filing system that would require certain types of U.S. and foreign entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.

The mandatory report is called a Beneficial Ownership Interest Report (BOIR). Most LLCs, corporations and other legal entities are required under the new law to file the BOI Report with FinCen or face potential substantial penalties.

The law is currently the subject of legal challenges. Filing deadlines have been imposed, temporarily halted, and reinstated. The North Carolina Real Estate Commission recommends that brokerage entities in North Carolina who have not already filed promptly seek out specific legal advice as to how the law applies to them and any filing deadline to which the brokerage firm may be subject.   More information is available at www.fincen.gov.boi and https://www.scotusblog.com/case-files/cases/garland-v-texas-top-cop-shop/