Navigating Multiple Offers

If you receive more than one offer on a property, i.e., “multiple offers”,  per Commission Rule 58A .0106(c), you must present all offers to the seller as soon as possible, but no later than three days after receipt.

Are Multiple Offers a Material Fact?

Link: https://youtu.be/1PC4uZdsWIo

Script: No. The existence of multiple offers is not considered a material fact and does not have to be disclosed to other brokers and/or their clients. However, if the seller gives consent to the listing agent, they may disclose that multiple offers exist—but in doing so, they have a duty to share the information fairly, equally, and honestly with everyone.

Handling multiple offers on a property can be complex but understanding your responsibilities under Commission rules ensures compliance. The Commission has published a section entitled Contracts in the 2020-2021 Update Course that explains how brokers should navigate a transaction that includes multiple offers. You can review this information here.

If you have additional questions, please visit the Commission’s website at www.ncrec.gov.

THE BROKER’S LEGAL MAP: A GUIDE FOR BROKERS TO NC LAW AND RULES

North Carolina real estate brokers juggle many responsibilities. While you don’t need to be a lawyer to practice real estate, a working knowledge of the statutes and rules that govern your business is essential to keeping your license and your clients’ trust. This guide offers a summary of key laws brokers should be aware of as part of competent practice.

North Carolina Real Estate License Law (Chapter 93A) and Commission Rules (21 NCAC Chapter 58)

The foundation of authority to act as a broker is found in Chapter 93A of the North Carolina General Statutes. Here, you will find broker licensing requirements, the Commission’s disciplinary authority, and the rules governing continuing education, broker-in-charge status, and broker price opinions. If you’re ever unsure where to look, this is a good start. Rules adopted by the Commission under the Administrative Code are found in the North Carolina Administrative Code, 21 NCAC Chapter 58, and cover day-to-day practice, including agency agreements, advertising, delivery of instruments, handling of trust money, disclosures, record retention, and education. Both are available here (See the Commission’s home page for proposed and recent rule changes).

Residential Transactions: Landlord and Tenant Law

North Carolina brokers frequently handle residential leases in addition to sales, and understanding landlord-tenant law is crucial. NCGS § 42 establishes laws relating to the obligations and duties of landlords and tenants and includes the Tenant Security Deposit Act, which mandates the how residential tenant security deposits are to be handled.

Disclosures and Due Diligence

North Carolina law imposes specific disclosure duties on sellers and brokers. Under the Residential Property Disclosure Act, sellers must complete the Residential Property and Owners’ Association Disclosure Statement (RPOADS), and brokers must ensure it is delivered to prospective buyers. Beginning in 2024, sellers are also required to disclose prior flood damage. Brokers facilitating inspections should be aware that only licensed professionals may perform home inspections under the Home Inspector Licensure Act.  

Title, Insurance, and Risk

Title and risk management are integral to every transaction. The Title Insurance Act, regulates entities that issue insurance policies guaranteeing ownership. In transactions with financing, NCGS § 53-244, governs lender obligations in connection with mortgage loan commitments. Additionally, environmentally sensitive properties—particularly those in coastal regions—may be subject to development restrictions under the Coastal Area Management Act (CAMA).

Fair Housing Act

Any conduct by a broker that violates the North Carolina State Fair Housing Act, the Federal Fair Housing Act, or Local Fair Housing Ordinances also constitute a violation of the Real Estate License Law. Brokers must not engage in discriminatory practices in the sale, leasing, or financing of housing.

Administrative Procedures Act

The Administrative Procedures Act establishes the framework by which North Carolina agencies, including the Real Estate Commission, adopt rules and conduct administrative hearings. It ensures separation between investigative, advocacy, and adjudicative functions in agency proceedings and provides due process protections to licensees subject to discipline.

HOAs and COAs

Real estate brokers working with planned communities or condominiums should be aware of the statutory frameworks that govern them. The Planned Community Act applies to most homeowner associations (HOAs) formed after January 1, 1999, while the Condominium Act governs condominiums created on or after October 1, 1986. Many HOAs are organized as nonprofit corporations and thus operate under the North Carolina Nonprofit Corporation Act.

Vacation Rental Act

The growth of the tourism industry in North Carolina led to a greatly expanded market of privately owned residences that are rented to tourists for vacation, leisure, and recreational purposes. Rental transactions conducted by the owners of these residences or licensed real estate brokers acting on their behalf present unique situations not normally found in the rental of primary residences for long terms. The Vacation Rental Act regulates the competing interests of landlords, real estate brokers, and tenants.

Local Ordinances and Rules

While strict adherence to state and federal laws is required, a broker in North Carolina must also pay attention to local ordinances and rules for the area in which their business occurs. Each locality may have different regulations for brokerage and adherence to them is crucial for successful practice.

Conclusion

While you’re not expected to memorize every statute, knowing where to look and what governs your work is part of your responsibility as a broker. When in doubt, consult your broker-in-charge, the Commission’s website, or legal counsel. Knowledge is not only power, it’s also protection.

Disciplinary Actions

RICHARD H FLEMING (CLAYTON) – By Consent, the Commission reprimanded Fleming effective June 30, 2025. The Commission found that Fleming listed a vacant lot for sale. Fleming failed to take adequate steps to verify the identity of the seller of the vacant lot, resulting in the loss of the $5,000 due diligence fee paid on behalf of the buyer.

ALLISON M LONG (MINT HILL) – By Consent, the Commission reprimanded Long effective June 30, 2025. The Commission found that Long was the listing agent of the subject property. Prior to the listing, Long was contacted by a woman claiming to be the owner of the subject property. Long failed to take adequate steps to verify the identity of the seller of the subject property, resulting in the loss of the $5,000 due diligence fee paid on behalf of the buyer.

JILL JORDAN (RALEIGH) – By Consent, the Commission suspended the broker license of Jordan for a period of 12 months, effective June 16, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Jordan listed her personally owned real property but failed to fully disclose material facts regarding structural repairs to a buyer. The buyer terminated the contract after the parties could not agree on a due diligence request and Jordan refunded the buyer’s due diligence fees and paid their inspection costs. Jordan performed additional repairs, revised the RPOADS, and disclosed a structural engineer’s report to a second buyer but failed to fully disclose defects from the first inspection that had not been repaired.

LATASHIA S MCDONALD (RALEIGH) – By Consent, the Commission suspended the broker license of McDonald for a period of 30 days, effective June 18, 2025. The Commission found that McDonald’s buyer-clients went under contract with a property and McDonald scheduled a showing appointment for the buyer-clients to visit the occupied property. The seller vacated the property to accommodate the scheduled showing. McDonald provided the buyers with the lock-box code to the property and allowed the buyers to enter the property without McDonald being present.

RACHEL A WITHERS (RALEIGH) – By Consent, the Commission reprimanded Withers effective June 13, 2025. The Commission found that Withers represented a buyer in a residential transaction and failed to visit the property with the buyer, but had another agent on her team attend on her behalf. Withers failed to identify that the lot size was actually 0.25 acres, and not 0.8 acres as advertised in the listing. An empty lot was located next to the subject property.

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

Home Inspections – Broker Duties

Home inspections provide buyers with critical information needed to make an informed decision when purchasing a home. Buyers often rely on the recommendation of their broker when choosing a home inspector. This article will address considerations that should be made when brokers are recommending a home inspector.

In North Carolina, individuals who perform home inspections for compensation or hold themselves out as licensed home inspectors must be licensed by the North Carolina Home Inspector Licensure Board (HILB). The HILB licenses individual home inspectors but does not regulate or license home inspection companies. The individual completing the inspection on site must be licensed. The HILB maintains a searchable directory of active licensees on its website.

Licensed home inspectors must provide a written contract to the client that states the home inspection will be performed in accordance with the North Carolina Home Inspector Licensure Board Standard of Practice (SOP). The contract must contain the inspector’s name, license number, and may include limitations on liability for errors and omissions, including those that lead to property damage or injury, or for not meeting the standard of care expected of a license home inspector. Understanding the scope and limits of the inspection at the outset is critical to managing expectations and protecting the client’s interests.

During a home inspection, systems and components required to be inspected by the SOP will be inspected for defects. For each system inspected, the inspector will:

1. Describe the system,
2. Identify any Defects,
3. Explain the Implications of the defect, and
4. Direct the client to appropriate next steps.

This is known as the “DDID” framework which ensures consumers understand not only what is wrong, but why it matters and what they should do about it. However, inspection reports that include repair estimates or offers to make repairs are not allowed as they may create a conflict of interest.

Following the inspection, customers are provided with a written home inspection report. The report will include a summary page, but the entire report should be reviewed to identify all systems and components that may not be functioning as intended or appear not to be functioning as intended based upon tangible evidence. The summary and report may also include safety concerns identified during the home inspection.

Under Home Inspector Licensure Law, a person who is not licensed as a home inspector cannot inspect two or more systems or components for a fee. There is an exception for licensed general contractors who are preparing bid specifications and estimates for construction work. Similarly, licensed plumbing contractors may inspect plumbing systems and licensed electrical contractors may inspect electrical systems. However, these professionals cannot inspect additional systems unless they are also licensed by the HILB. Typically, these tradespeople are brought in as follow-up specialists when a licensed home inspector identifies a concern that requires repair or further evaluation by a specialist.

Critically, brokers must not rely on a home inspection report that they know or reasonably should know was prepared by an unlicensed individual. Even if an unlicensed individual performed the inspection at no charge, claims that their company employs a licensed home inspector, or claims that licensure is not required, the broker may still be subject to disciplinary action under N.C. Gen. Stat. § 93A-6(a)(8) and (10) for unreasonably relying on an inspection report by an unlicensed individual.

For example, a listing broker provides a buyer’s agent with a copy of a pre-listing inspection report prepared by an unlicensed individual. The buyer’s agent is unfamiliar with the inspector and makes no inquiry into their credentials but counsels the buyer client that they can rely on the report when moving forward with the purchase. After closing, defects are discovered that were not contained in the report. The buyers may then seek recourse against the unlicensed individual and the brokers who recommended the inspector.

To summarize, brokers should exercise due diligence in connection with recommending home inspections as follows:

• Recommend only licensed home inspectors
• Verify the inspector’s license status via the HILB directory if there are any red flags
• Advise clients to review and sign the home inspection contract before the inspection
• Advise clients to review the full home inspection report, not just the summary
• Do not rely on any report from an unlicensed inspector.