MENU North Carolina
Real Estate Commission

Bulletin Search

Fair Housing

Final Fair Housing Symposium in Wilmington — Don’t Miss Your Chance to Attend

Last month, the North Carolina Real Estate Commission held its second Collaborative Fair Housing Symposium in Charlotte at the Canopy REALTOR® Association. The sold-out event brought together expert presenters from Charlotte-Mecklenburg Community Relations, the United States Attorney’s Office, Legal Aid of North Carolina’s Fair Housing Project, and the Commission itself.

Participants explored the more complex components of fair housing law, including protections for survivors of domestic violence, source of income discrimination, reasonable accommodations, legal ramifications—both civil and criminal—of noncompliance, and best practices to ensure compliance. Firsthand accounts from investigators and prosecutors offered a compelling look into the real-world impact of fair housing enforcement.

Missed the August Symposium? There’s one final chance to attend. The Commission will host its third and final Fair Housing Symposium on October 30, 2025, at Cape Fear Community College in Wilmington, NC. Don’t miss this opportunity to deepen your understanding and stay informed. Register now on the Commission’s website to reserve your spot.

https://www.ncrec.gov/FairHousing/Registration

Polybutylene Pipes: Is the mere presence material?

In the 2008-2009 General Update class on Material Facts, the NC Real Estate Commission made the following statement:

“Is the mere presence of polybutylene piping in a structure a material fact? Polybutylene piping is made from a plastic resin and was commonly used for a couple of decades in lieu of copper piping for water supply. The plastic tubing connected at various junctures into joints or “fittings.” These fittings were of two types, either “insert” or “non-insert.” Complaints arose from consumers about leaky pipes, especially where pipes met an “insert” type fitting.  Notwithstanding a Tennessee class action lawsuit which resulted in a fairly substantial settlement

between the manufacturer and claimants, the Commission’s study of this issue more than a decade ago revealed that:

● not all, or even most, polybutylene piping with insert fittings commonly fail;

● if a defect exists in the piping or fittings, it typically is not readily discernible; and

● no neighboring State has determined that the mere presence of polybutylene piping is a

material fact.

Thus, the Commission concluded that the mere presence of polybutylene piping in a structure is NOT a material fact. However, it becomes a material fact that must be disclosed when the licensee knows or should have known that there was a probable defect in the polybutylene piping. A licensee might know of a defect because s/he inquires and the owner honestly reports any water issues, or because the licensee sees evidence of water damage on walls, ceilings or floors. A licensee may have reason to know or suspect a problem where s/he is aware that there is a history of pipe failure in the subject property or is aware that polybutylene piping in some of the adjacent condos or town homes in the community have failed.

The Commission recommends that listing agents affirmatively inquire as to the type of piping in a property and whether there have been any problems with it in the past. If in a town home or condominium community, the agent should ask his/her owner whether s/he is aware of any problems with other units. If the answer to either is “yes,” then the agent should disclose this information to any prospective buyer and recommend that they have an inspection.”

This advice has not changed, and the mere presence of polybutylene pipes is not a material fact.  A broker representing a buyer might consider, as a best practice, advising their buyer client to discuss the matter with their insurer prior to making an offer.  If the insurer has restrictions, then that would be material to that buyer so the broker should ask about the presence of polybutylene pipes on behalf of their client.

Preventing Seller Impersonation Fraud in Residential and Commercial Transactions

Republished with permission from NC REALTORS®

QUESTION: I was contacted by someone wanting to list a parcel of vacant land. They say they live out of state and cannot meet in person. Given the growing number of scam listings and fake sellers, especially involving vacant land and commercial parcels, what steps should I take to confirm that this person is the rightful owner?

ANSWER: Seller impersonation fraud continues to be a serious and growing concern in both residential and commercial real estate, particularly with vacant land, abandoned properties, and trust or estate-owned assets. Scammers often use forged identification, fake notary stamps, real names from public records, and communicate exclusively via text or email.

IF YOU ARE SELLING PROPERTY FOR SOMEONE YOU HAVE NOT MET IN PERSON, ASSUME IT IS A SCAM UNTIL PROVEN OTHERWISE.

Whether it’s a $30,000 lot in a rural county or a $3 million commercial tract, below are steps agents can take to verify a remote seller’s identity. Firms can use the following to enact policies to help make sure agents avoid scams.

  1. Require a Government-Issued Photo ID: Ensure the name and address match public records for the record property owner. Be cautious of IDs that are blurry, cropped, or barely legible.
  2. Require a Live, Face-to-Face, Video Chat with the Seller: Make sure the person in the video chat matches the ID, but beware that some sophisticated scammers may be able to use AI to make their face match an ID, even if the ID is real (but stolen). Other scammers may just use a fraudulent ID that has their face on it with the real owner’s information. A seller’s refusal to speak live on video is a major red flag.
  3. Visit the Property in Person and Confirm the Seller Knows Details: Visit the seller’s property in person, and then ask the seller about details of the property to see if they know them. For example, if you ask the seller what they would like to do about an old shed on the property, but there is no shed because you made up that fact to test them, then a seller who assumes the shed is there is very likely a scammer. If the seller is instead confused or corrects you that there is no shed, then you know they may not be a scammer. Feel free to ask about large rocks, streams, or other land features instead to test the seller’s knowledge.
  4. Cross-Check the Seller’s Identity Using Tools Like Forewarn: Forewarn can help identify whether the seller has any known association with the property, and whether the email address, phone number, and other contact information is consistent with the contact information of the legitimate owner.
  5. Independently Locate and Contact the Owner and Talk to Neighbors: Even if a Forewarn check comes back with no flags, and even if the seller has talked to you on a live video chat, use the information on the deed and tax records to contact the record owner, and be sure to contact neighbors. Do a Google and a social media search of the seller’s name, and see if the contact information you have been given matches the contact information from your independent searches. If the information does not match, you are likely speaking with a scammer and not the owner.
  6. Ask for Ownership Documents Only the True Owner Would Have: Ask for closing disclosures or settlement statements; a copy of a property tax bill (preferably one recently paid, showing ownership and billing address); title insurance policies; original property surveys; prior listing agreements; and other documents only the seller would have.
  7. Be Wary of “Quick Cash Sale” Requests and Below-Market Prices: Many fake sellers push for an all-cash deal, a reduced price, and a fast closing to avoid scrutiny.
  8. Research Recent Sales and Withdrawals of the Same Property: If the parcel was recently listed, withdrawn, or sold, speak to the prior listing broker to see if a fraud attempt was previously made.
  9. Educate and Protect All Parties: Communicate clearly with buyers, closing attorneys, and your BIC about any concerns. Where appropriate, alert authorities such as the North Carolina Attorney General or FBI Internet Crime Complaint Center if fraud is suspected. Keeping notes, copies of correspondence, and screenshots of ID verification or property records may protect you if a dispute later arises.
  10. Coordinate Early with the Closing Attorney: As soon as a contract is signed, notify the closing attorney of any red flags or concerns. Title professionals may uncover issues through identity verification protocols, trust or estate complications, and prior title history.
  11. Other Red Flags to Watch For:
  12. Seller claims they are traveling abroad or in a family emergency.
  13. Pressure to close quickly and accept a lower-than-market offer.
  14. Seller offers a bonus or incentive to ensure the transaction closes.
  15. Communication is limited to email or text, with evasiveness around calls or video.
  16. Seller wants a quick Due Diligence Fee or is unwilling to accept Earnest Money.
  17. Seller’s email address or phone number is from another country.

The fake seller scam is becoming more sophisticated and increasingly targets both residential and commercial transactions. Never rely solely on documents or information the “seller” or a lead service provides. If red flags persist and identity cannot be confirmed, do not proceed with the listing and escalate the issue to your Broker-In-Charge. Brokers are strongly encouraged to discuss these best practices at office meetings and include fraud prevention as part of onboarding and ongoing agent training programs.

Release Date: 07/31/2025

© Copyright 2025. North Carolina Association of REALTORS®, Inc.

This article is intended solely for the benefit of NC REALTORS® members, who may reproduce and distribute it to other NC REALTORS® members and their clients, provided it is reproduced in its entirety without any change to its format or content, including disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain. Any unauthorized reproduction, use or distribution is prohibited.

Jonathan Barfield, Jr., Appointed to the NC Real Estate Commission and James Beaty, Jr., and Mel Black, Reappointed

Governor Josh Stein has appointed Jonathan Barfield, Jr., to the NC Real Estate Commission and reappointed James Beaty, Jr., and Mel Black, for terms ending July 31, 2028.

Jonathan Barfield Jr. was born in Columbus, Ohio and raised in Wilmington, NC. He has deep roots in both his community and the real estate industry. Married to his wife, Laura, for more than 36 years, Jonathan is the proud father of four daughters and grandfather of two grandsons.

A licensed REALTOR® since 1997, Jonathan is the Broker/Owner of Barfield and Associates Realty. He served as President of the Cape Fear REALTORS® Association in 2007 and has remained a dedicated leader in the profession ever since.

Following in the footsteps of his father, Jonathan was elected to the New Hanover County Commission in 2008, where he served for 16 years, concluding his tenure in December 2024. During that time, he held the roles of both chair and vice chair for multiple terms, while representing the County on a variety of boards and committees. These included the Greater Wilmington Chamber of Commerce, Wilmington Business Development, Health and Human Services, and the Cape Fear Public Utility Authority. He also recently completed nine years of service on the Cape Fear Community College Board of Trustees.

A U.S. Navy veteran, Jonathan served six years on active duty and in the reserves. Most recently, he contributed to Governor Stein’s Transition Team as co-chair of the Military and Veterans group, where he helped interview candidates for Secretary and Deputy Secretary of Military and Veteran Affairs.

Licensed as a minister since 2004, Jonathan enjoys reading, golfing, and relaxing with a good cigar. His career and community service reflect a lifelong commitment to leadership, service, and making a difference for the people of North Carolina.

James Arthur Beaty Jr. was reappointed to the Commission by Governor Josh Stein. He is a former Judge of the United States District Court for the Middle District of North Carolina.

Beaty grew up in Thomasville, North Carolina. He received a Bachelor of Arts degree from Western Carolina University in 1971 with Honors and a Juris Doctor from the University of North Carolina School of Law in 1974. He entered private practice in Winston-Salem, North Carolina in 1974, and in 1981 he became a judge of the Superior Court of Forsyth County, North Carolina, a position he held until 1994.

On August 25, 1994, President Bill Clinton nominated Beaty to fill a vacancy on the United States District Court for the Middle District of North Carolina created by the retirement of Judge Richard C. Erwin. The United States Senate unanimously confirmed Beaty in a voice vote on October 7, 1994. Beaty became chief judge of that court in 2006. He is based in Winston-Salem. He assumed senior status on June 30, 2014, and retired from active service on January 31, 2018.

Mel Black was reappointed to the Commission by Governor Josh Stein. As a real estate and appraisal educator, Mr. Black develops and delivers real estate related curriculum for the Colibri Group. As an attorney in private practice with Gaskins Hancock Tuttle Hash, LLP, he focuses on administrative law, occupational licensing, and real estate related matters.

As a speaker, Mr. Black provides training to board members, investigators, and attorneys of national regulatory organizations on the proper conduct of occupational licensing boards. Mr. Black is a third-generation broker and second-generation appraiser in North Carolina. He has been licensed as a broker since 1988 and certified as an appraiser since 1991.

Mr. Black is the former Executive Director of the North Carolina Appraisal Board and former Education and Examination Officer with the North Carolina Real Estate Commission.

He has been elected to multiple national positions, including president of the Association of Appraiser Regulatory Officials, member of The Appraisal Foundation Advisory Council and its State Regulator Advisory Group, and member of the Board of Directors of the Council on Licensure, Enforcement and Regulation. For his service to North Carolina, Mr. Black was inducted into the Order of the Long Leaf Pine in 2002.

Mr. Black was named Educator of the Year by the North Carolina Real Estate Educators Association and received the Larry A. Outlaw Excellence in Real Estate Education Award from the North Carolina Real Estate Commission.

He holds a Juris Doctorate from the North Carolina Central University School of Law, an Educational Specialist degree from Appalachian State University, a Masters of Education from Winthrop College, and a Bachelor’s degree from the University of the State of New York. Mr. Black and his two adult children are based in Raleigh.

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

Commission Presentations

August 2025 Presentations

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

Bruce Rinne, Information Officer, spoke at Lincoln County Board of REALTORS® on August 5th.

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

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

September 2025 Presentations

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

Bruce Rinne, Information Officer, will speak at Compass on September 2nd.

Dee Bigelow, Information Officer, will speak at Salisbury Rowan Board of REALTORS® on September 9th.

Lyndi James, Auditor/Investigator, will speak at Coldwell Banker Sea Coast Advantage on September 9th.

Diana Jasany, Communications Officer, will speak at the Coastal Plains Association of REALTORS® on September 9th.

Bruce Rinne, Information Officer, will speak at Orange Chatham Association of REALTORS® on September 11th.

Miriam Baer, Executive Director, will speak at Longleaf Pine REALTORS® on September 16th.

Brian Heath, Consumer Protection Officer, will speak at Triangle Chapter of the National Association of Property Managers on September 18th.

Tech Corner: Digital Signatures and Record Retention

Digital signatures can help simplify the way real estate brokers handle contracts and agreements. It can save time, reduce paper waste, and expedite transactions.

However, while these tools make transactions more efficient, brokers must remember that technology does not replace compliance. North Carolina License Law and Commission Rules require brokers to retain all records related to a transaction regardless of the format of the original record (e.g., hard-copy or electronic).

The Commission does not require any specific format of record retention so long as the records are legible and available upon request. A broker is required to retain all records for at least three years following:

The Commission does not recommend any electronic service provider over another.

In North Carolina, the Uniform Electronic Transactions Act (UETA), found in NCGS § 66-311 et. seq. applies to electronic records and electronic signatures in the conduct of a transaction, including a real estate transaction. UETA establishes the legal equivalence of electronic records and signatures with paper writings and manually signed signatures, removing barriers to electronic commerce. The responsibility for maintaining records rests with the broker, not the technology provider.

Best Practices for Digital Signature Use

  1. Choose a Reputable Provider
    • Select platforms that comply with UETA.
    • Confirm the service offers downloadable copies so you can store them independently.
  2. Maintain Multiple Backups
    • Keep electronic copies in at least two secure locations (e.g., encrypted cloud storage + a local backup drive).
    • Avoid relying solely on the platform’s storage in case your subscription ends or the provider changes service terms.
  3. Verify Document Integrity
    • Download the fully signed version and review the audit trail to confirm all signatures and timestamps.
    • Lock or password-protect files to prevent unintentional edits.

NOTE: Commission Rule 58A .0104, requires that a broker provide AND REVIEW the Working With Real Estate Agents Disclosure. Agency principles require the review and explanation of all documents signed by the client. Brokers should also keep accompanying emails and notes that indicate they met these obligations, not just proof that the client signed the document.

Digital signature technology can streamline your workflow—but it’s only effective if paired with consistent and compliant record-keeping. Treat your electronic records with the same diligence as paper versions.

Reminder: Guess What? You Can Take Your CE Now!

Have you taken your CE courses for 2025-2026? It is not too early for you to complete your required CE for this license year.

Disciplinary Actions

FREDDY A ALBAN (KANNAPOLIS) – By Consent, the Commission reprimanded Alban effective August 29, 2025.  The Commission found that Alban facilitated a transaction between a distressed homeowner and an unlicensed out-of-state investor who assigned a purchase contract to buyers who Alban knew wanted to buy a property. Alban failed to provide the Working With Real Estate Agents (WWREA) disclosure form or enter into a written agency agreement with the buyers and received an “assignment fee” at closing through his unlicensed investment firm, without the knowledge or supervision of either of the two firms with which he was affiliated.

DREW M BYERS (WINSTON SALEM) – The Commission accepted the permanent voluntary surrender of the real estate license of Byers, effective August 13, 2025. The Commission dismissed without prejudice allegations that Byers violated provisions of the Real Estate License Law and Commission Rules. Byers neither admitted nor denied misconduct.

CRYSTAL S CHEEVERS (HUNTERSVILLE) – The Commission accepted the permanent voluntary surrender of the real estate license of Cheevers, effective August 13, 2025. The Commission dismissed without prejudice allegations that Cheevers violated provisions of the Real Estate License Law and Commission Rules. Cheevers neither admitted nor denied misconduct.

BRIAN S HAIGLER (INDIAN TRAIL) – The Commission accepted the permanent voluntary surrender of the real estate license of Haigler, effective August 13, 2025. The Commission dismissed without prejudice allegations that Haigler violated provisions of the Real Estate License Law and Commission Rules. Haigler neither admitted nor denied misconduct.

DAVID S KLEPSER (CHARLOTTE) – The Commission accepted the voluntary surrender of the real estate license of Klepser, effective August 13, 2025, with no right to reapply for five years. The Commission dismissed without prejudice allegations that Klepser violated provisions of the Real Estate License Law and Commission Rules. Klepser neither admitted nor denied misconduct.

OWEN E METTS (WILMINGTON) – By Consent, the Commission suspended the broker license of Metts for a period of 24 months, effective June 15, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Metts’ nephew signed a Power of Attorney authorizing Metts to sign documents related to the transfer of real property in exchange for a commission. Metts incorrectly interpreted a legal document to include interest owed to his nephew upon the sale of the subject property. Metts refused to sign a quitclaim deed his nephew was required to sign pursuant to a divorce settlement until the seller paid a commission to him.

AMANDA G RIVERA (WENDELL) – Following a hearing, the Commission suspended the broker license of Rivera for a period of 6 months, effective September 1, 2025, and revoked the instructor approval of Rivera effective June 24, 2025. The Commission then stayed the suspension following a one-month active period upon certain conditions. The Commission found that Rivera reported disciplinary action by the North Carolina Appraisal Board more than five months after entry of the final order and misrepresented the extent of the disciplinary action taken against her. Rivera’s appraiser license was placed on inactive suspension for a period of six months. Rivera was prohibited from supervising trainees and teaching the appraiser supervisor and trainee course for a period of three years, and she was prohibited from teaching continuing education courses or qualifying education courses for a period of two years.

KRISTI L WOOLARD (GREENVILLE) – By Consent, the Commission reprimanded Woolard effective August 31, 2025. The Commission found that Woolard acted as the buyer’s agent who contracted to purchase an unimproved lot for $23,000. Prior to closing, Woolard, in violation of training by both the North Carolina Real Estate Commission and her Broker-in-Charge, emailed the closing attorney to obtain the wiring instructions for her client, did not call the closing attorney to verify the wiring instructions, and did not instruct her buyer to do so.  Unbeknownst to her, her communications with the attorney were intercepted by a hacker who replied with fake wiring instructions. Woolard passed these instructions along to her client who then wired $23,330.09 to the hacker’s account. Woolard’s client was unable to buy the property after her money was lost. 

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:

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:

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:

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.