MENU North Carolina
Real Estate Commission

Bulletin Search

Help! How do I reinstate my Instructor Approval?

Did you forget to renew your instructor approval before June 30, 2024?  Do you plan to teach Prelicensing, Postlicensing, or the Update course for a certified Education Provider?

If so, you must have an “active” instructor approval. Therefore, in order for the Commission to reinstate your instructor approval that has been expired for less than six months, you must submit the renewal application per Rule 58H .0306(b).

Prior to submitting an electronic application for renewal of approval, as an instructor, you must have completed six hours of an instructor educational program. If you have not yet completed this required education, please view our Guidelines for Instructional Educational Requirement (Form REC 3.78) for a list of options to satisfy this requirement. Once you have completed the required education, you will then need to log in to the Instructor Dashboard to access the renewal application.

Pursuant to subsection(c) of Rule 58A .0306, if an instructor approval has been expired for more than six months, the former instructor shall file an application for original approval pursuant to Rule 58H .0302.

If you have any questions regarding reinstating your instructor approval, please visit the Commission’s website.

Staff Appearances

Miriam Baer, Executive Director, spoke at NC REALTORS Risk Management Committee Meeting on June 3.

Minerva Mims, Diversity, Equity, and Inclusion (DEI) Officer, spoke at Raleigh Regional Association of REALTORS® on June 20.

Bruce Rinne, Information Officer, spoke at Carolina Smokies Association of REALTORS®, Inc. on June 20.

Leslie Schwartz, Information Officer, spoke at Goldsboro Association of REALTORS® on June 20.

Bruce Rinne, Information Officer, spoke at 220 Agents on June 27.

Diversity, Equity, and Inclusion

July is Disability Pride Month, a month dedicated to honoring and celebrating the history, experiences, achievements of disabled people. Disability Pride is recognized in the month of July to commemorate the passage of the Americans with Disabilities Act (ADA), a law that prohibits discrimination based on disability, in July 1990.

People with disabilities represent the largest and most diverse minority group, with individuals of various abilities, ages, races, ethnicities, religions, and social-economic backgrounds. According to 2021 data from the Centers for Disease Control and Prevention (CDC), 29% of adults in North Carolina have a disability, and according to the National Fair Housing Alliance’s (NFHA) 2023 Fair Housing Trends Report, over 53% of discrimination complaints are based on disability.

To properly serve consumers with disabilities it is important to understand their needs, recognizing that not all disabilities are created equally, ask questions, adjust your thinking, and do a bit of research.  As a real estate professional, you have a legal and ethical obligation to uphold fair housing laws; to do this you must be aware of the applicable laws (ADA and Fair Housing Act) that play a vital role in shaping an equitable and inclusive real estate environment.

By understanding the unique needs and challenges faced by consumers with disabilities and the guiding laws, real estate professionals can provide the necessary support to ensure a positive consumer experience and avoid any potential discrimination claims.

To learn more about Disability Pride Month or other disability related resources refer to the links below:

Americans with Disabilities Act Title III Regulations | ADA.gov

Better Service for Clients With Disabilities (nar.realtor)

Disability & Health U.S. State Profile Data: North Carolina | CDC

Fair Housing Project — A Project of Legal Aid of North Carolina (fairhousingnc.org)

Housing for People with Disabilities & Their Families | The Arc

Housing Rights – DRNC (disabilityrightsnc.org)

Why and How to Celebrate Disability Pride Month – The Arc

2023-Trends-Report-Final.pdf (nationalfairhousing.org)

Tech Corner: How do I translate the Commission’s website and Forms

Is English a second language for your clients or a consumer? Did you know that the Commission’s website can be translated into multiple languages?

Link: https://share.synthesia.io/25d69e92-4f29-4e59-91ed-c35377085508

Reactivating after CE Deficiency

Link: https://share.synthesia.io/b92c0c13-28f7-4684-8f75-c9db29e84bd1

Do you need to reactive your real estate license?

The 2024-2025 Update Course is here!

The Commission’s GENUP-General Update and BICUP-Broker-in-Charge Update courses for 2024-2025 are available beginning on July 1, 2024, for all licensees.

The 2024-2025 GENUP course topics are:

The 2024-2025 BICUP course topics are:

A statewide continuing education course schedule is provided on the Commission’s website (www.ncrec.gov) under the Education menu. Licensees may search for courses by:

Licensees may take the Update course anytime between July 1, 2024 – June 10, 2025. However, the Commission encourages licensees to take the course as early as possible during the license year, to stay up-to-date on law and rule changes.

Per Commission Rule 58A .1702, a licensee must take eight (8) hours of continuing education (CE) each year to maintain an active license, as follows:

NOTE: A broker with BIC-Eligible status who takes the General Update course, and an elective will maintain an active license but will lose their BIC/BIC-Eligible status.

If you have questions about the CE requirement, please visit the Commission’s website.

My license is expired! How do I reinstate it?

To maintain a current license, brokers must renew their license annually between May 15 and June 30. The license of a broker who fails to renew during that period will expire on June 30, and that broker must cease all brokerage activities immediately.   

What steps must a broker take to reinstate an expired license? That answer depends on how long the license has been expired.

To reinstate a license expired for less than 6 months:

  1. Go to the Commission’s homepage (www.ncrec.gov);
  2. Click on Reinstate your License;
  3. Enter your license number and PIN (last 4 of your SSN unless you have changed it);
  4. Answer required questions; and
  5. Pay the $90 reinstatement fee.

NOTE: Following expiration, a broker’s license is reinstated on inactive status. To regain active status, brokers must submit a License Activation / Affiliation form (REC 2.08).

To reinstate a license expired for 6 months but no more than 2 years:

  1. Successfully complete one 30-hour Postlicensing course (course must be completed within 6 months prior to submitting reinstatement application); and
  2. Submit a reinstatement application with the $90 application fee and all required documentation, including criminal background report;

-OR-

  1. Submit a reinstatement application with the $90 application fee and all required documentation, including criminal background report; and
  2. Pass the National and State sections of the license exam.

NOTE: Following expiration, a broker’s license is reinstated on inactive status. To regain active status, brokers must submit a License Activation / Affiliation form (REC 2.08).

To reinstate a license expired for more than 2 years:

  1. Successfully complete the 75-hour NC Broker Prelicensing course;
  2. Submit a license application with the $100 original application fee and all required documentation, including criminal background report; and
  3. Pass the National and State sections of the license exam.

NOTE: You will be licensed as a provisional broker and be subject to the 90-hour Postlicensing education program. To gain active status, you must submit a License Activation / Affiliation form (REC 2.08).

For more information, review Commission Rule 58A .0505 or visit the “Reinstate your License” page on the Commission’s website. You may also contact the Commission’s Education & Licensing Division at ls@ncrec.gov or 919-875-3700.

North Carolina Department of Revenue: Privilege License Tax

N.C.G.S. Section 105-41 required every individual in North Carolina who practiced a profession or engaged in a business to obtain from the North Carolina Department of Revenue (hereafter “NCDOR”) a statewide license for the privilege of practicing a profession or engaging in the business.

However, Session Law 2023-134 repealed this requirement under the General Statutes. Effective July 1, 2024, real estate brokers and other professionals are no longer required to apply to the NCDOR for a privilege license, or renew an existing privilege license, each year beginning July 1, 2024. The last license period will be for the fiscal year, July 1, 2023 to June 30, 2024.

If you would additional information regarding this change, read the Privilege Tax Bulletin published by the North Carolina Department of Revenue.

Case Study: Material Facts

FACTS: A broker listed a seller’s family home for sale. The broker informed the seller about the purpose and requirements of the Residential Property and Owners’ Association Disclosure Statement (RPOADS). Having not lived in the home for several years, the seller had limited knowledge about the property’s condition. The broker clarified that the seller could choose to make no representations regarding the home’s condition without misrepresenting it.  

The seller felt overwhelmed by the information requested and decided to make no representations.  The listing agent further explained the broker’s duty to disclose any material facts and/or defects and pointed out a few issues the broker noticed during the walk-through. The RPOADS remained unchanged, but the broker did list the discussed defects in the property description.  The broker did note several areas of pooling water in the backyard but failed to do any further investigation and made no disclosures. 

The property sold quickly in a cash transaction. Several months later, the home flooded during tropical storms. Following the flooding, the new owner learned that the property was located in a federal flood plain.  The previous owner did not carry flood insurance and had marked “No Representation” for questions about flooding on the RPOADS. Since the buyer did not use a lender, flood insurance wasn’t required.   

ISSUE: Did the listing broker comply with N.C.G.S. §93A-6(a)(1)? 

ANALYSIS:  No. N.C.G.S. § 93A-6(a)(1) states that the Commission has power to suspend or revoke at any time a license issued under the provisions of this Chapter, or to reprimand or censure any licensee, if following a hearing, the Commission adjudges the licensee to be guilty of making any willful or negligent misrepresentation or any willful or negligent omission of material fact.   

A material fact is any fact that could affect a reasonable person’s decision to buy, sell, or lease real property. Therefore, a broker has an affirmative duty to take reasonable steps to discover and disclose material facts to all parties in a transaction. Additionally, brokers are expected to take reasonable steps to discover all pertinent facts that are necessary to serve their clients’ interest. In this case study, the listing broker neglected to investigate the property properly.   

The Commission also determines whether or not a broker knew of the existence of a material fact by analyzing documents and reviewing written correspondence. The Commission uses the Reasonableness Standard to evaluate a broker’s duty to discover and disclose material facts. This standard dictates that a broker has a duty to discover and disclose any particular material fact if a reasonably knowledgeable and prudent broker would have discovered the fact during the course of the transaction and while acquiring information about the property. 

In this scenario, the listing broker neglected to perform further research on the property to discover that it was in a federal flood zone.  The listing broker did not act like a reasonably prudent broker because they failed to gather relevant facts about the property itself.  The Commission expects brokers to know or research whether a property they have listed is in a flood zone. Every broker must exercise reasonable care and diligence in discovering and disclosing all material facts to all interested parties in a timely manner in adherence to N.C.G.S. § 93A-6(a)(1). 

As a result of this omission and the listing broker’s failure to adhere to N.C.G.S. § 93A-6(a)(1), the listing broker may be subject to disciplinary action by the Commission. 

RESOURCES:

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

License Law and Commission Rules: Rule 58A .0114

Articles: 2022-2023 General Update Course

2018-2019 General Update Course

Due Diligence for Residential Buyers

Disciplinary Actions

ANDY ALBRIGHT PROPERTIES LLC (GRAHAM) – The Commission accepted the voluntary surrender of the real estate firm license, effective May 22, 2024. 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.

PHILIP D BLACK (CHARLOTTE) – By Consent, the Commission reprimanded Black, effective May 1, 2024. The Commission found that Black, the broker-in-charge, self-reported an audit revealed that, in some cases, the firm had unknowingly paid commissions to unlicensed entities in connection with sales transactions. The internal audit found 205 unlicensed entities did not meet the requirements to receive compensation for brokerage services. Subsequent investigation by the Commission’s auditor revealed that the actual number of firms that had been established by affiliated brokers to receive compensation but were not licensed was 170.

DANIEL CALLAHAN (CHARLOTTE) – By Consent, the Commission suspended the broker license of Callahan for a period of 9 months, effective May 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Callahan listed a property he had purchased from a seller who had provided an inspection report. Respondent advertised that the inspection report would be made available to a buyer only after submission of an offer to purchase. Respondent failed to provide the report or otherwise disclose the material facts from the inspection report until after he had accepted the offer. 

COASTAL ASSOCIATES REALTY LLC (KITTY HAWK) – By Consent, the Commission reprimanded the firm, effective May 1, 2024.  The Commission found that the firm listed the subject property for sale. The subject property was located across from a coastal waterway. The firm advertised the subject property in the MLS as “Boasting Sound Views and Stunning Sunsets” and “Top level…perfect for an office with water view…” The firm’s affiliated broker who acted as the listing agent knew but failed to disclose in writing that the sellers owned the waterfront lot located across from the subject property and planned to build a house on the waterfront lot. Buyer’s Agent was aware the sellers owned the waterfront lot.

DAVID CHRISTOPHER DAWE (SALISBURY) – By Consent, the Commission suspended the broker license of Dawe for a period of 12 months, effective May 1, 2024.  The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Dawe failed to adequately supervise an affiliated provisional broker and ensure that an affiliated provisional broker timely completed all required postlicensing.  The provisional broker was placed on inactive status for failure to complete postlicensing and continued to engage in real estate brokerage activity. 

EXP REALTY LLC (CHARLOTTE) – By Consent, the Commission reprimanded the firm, effective May 1, 2024. The Commission found that an audit performed by the firm revealed that, in some cases, the firm had unknowingly paid commissions to unlicensed entities in connection with sales transactions. The internal audit found 205 unlicensed entities did not meet the requirements to receive compensation for brokerage services. Subsequent investigation by the Commission’s auditor revealed that the actual number of firms that had been established by affiliated brokers to receive compensation but were not licensed was 170.

EXP REALTY LLC (CHARLOTTE) – By Consent, the Commission reprimanded the firm, effective May 22, 2024. The Commission found that the firm failed to ensure that the firm’s advertising disclosed the seller-client’s desire to keep a 0.53 acre parcel.  In a separate transaction, the broker-in-charge of the firm listed for sale in or around Asheville, North Carolina  a 2.46 acre parcel of unimproved land in a small residential subdivision. The firm failed to ensure a dual agent included certain restrictions in the listing agreement or the purchase contract.

MAURICE D FUTRELL (WILMINGTON) – By Consent, the Commission suspended the broker license of Futrell for a period of 3 years, effective May 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Futrell, following a guilty plea, was convicted of Class I Felony Possession of Cocaine stemming from a May 2021 arrest.  Pursuant to the conviction, Futrell was sentenced to 6 to 17 months, suspended, was placed on 24 months supervised probation, and was ordered to participate in a drug awareness/prevention program and pay costs. Futrell reported his criminal conviction 11 days after the 60-day reporting requirement.

DAWN M GILLIAM (ROCK HILL, SC) – By Consent, the Commission reprimanded Gilliam, effective May 22, 2024. The Commission found that Gilliam represented buyers who submitted an offer for the subject property. The offer was pending acceptance when Gilliam arranged a one-hour showing for her clients.  After the designated showing time lapsed, Gilliam and her clients remained in the subject property, preventing another broker and her buyer-clients from accessing and viewing the property during their scheduled time. Gilliam informed the other broker that her clients had entered into a verbal contract regarding the subject property.

GOOD HIKE REALTY LLC (ASHEVILLE) – By Consent, the Commission suspended the firm license for a period of 12 months, effective May 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that the firm listed a property for sale and the firm’s broker-in-charge relied on the square footage contained in a prior listing for the subject property and incorrectly advertised the square footage in the MLS.  The firm’s broker-in-charge failed to discover and disclose that the sellers did not obtain a permit for a newly installed hot tub and deck, for which a permit was required.

WHITNEY O HAWKINS (KITTY HAWK) – By Consent, the Commission suspended the broker license of Hawkins for a period of 12 months, effective May 1, 2024. The Commission then stayed the suspension following a 1-month active period upon certain conditions. The Commission found that Hawkins was the listing agent for the subject property, which was located across from a coastal waterway.  Hawkins advertised the subject property in the MLS as “Boasting Sound Views and Stunning Sunsets” and “Top level…perfect for an office with water view…”  Hawkins failed to disclose in writing that the sellers owned the waterfront lot located across from the subject property and planned to build a house on the waterfront lot. Buyer’s Agent was aware the sellers owned the waterfront lot.

RALPH W HAWKINS JR (KITTY HAWK) – By Consent, the Commission suspended the broker license of Hawkins for a period of 12 months, effective May 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Hawkins was the co-listing agent for the subject property, which was located across from a coastal waterway.  Hawkins advertised the subject property in the MLS as “Boasting Sound Views and Stunning Sunsets” and “Top level…perfect for an office with water view…” Hawkins failed to disclose in writing that the sellers owned the waterfront lot located across from the subject property and planned to build a house on the waterfront lot. Buyer’s Agent was aware the sellers owned the waterfront lot.

DEBRA ANN HOLLOMAN (DENVER) – By Consent, the Commission suspended the broker license of Holloman for a period of 12 months, effective May 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Holloman listed two “to be built” homes on two vacant lots and failed to enter into a listing agreement with the seller of the vacant lots prior to the listing.  After a buyer entered into a contract with the builder for the new construction home, Holloman prepared an offer to purchase one of the vacant lots on behalf of the builder. Holloman failed to obtain and remit the due diligence fee or earnest money deposit.  The builder did not close on the vacant lot and has not returned the buyer’s deposit. 

MICHELLE ARELIS IBARRA (SALISBURY) – By Consent, the Commission suspended the broker license of Ibarra for a period of 12 months, effective May 1, 2024. The Commission then stayed the suspension following a 1-month active period upon certain conditions. The Commission found that Ibarra, while on provisional broker status, failed to complete postlicensing education within 18 months of licensure and was placed on inactive status.  Ibarra engaged in real estate activity while on inactive status, including scheduling appointments, attending inspections, communicating about closing information, scheduling the final walk-through, and attending closing. 

AMANDA M. JORDAN (GREENSBORO) – Following a hearing, the Commission revoked the broker license of Jordan for five years, effective April 11, 2024. The Commission found that Jordan represented the buyer in the subject transaction.  Jordan repeatedly engaged in unprofessional conduct, including the use of profane and derogatory language, during the course of the subject transaction, which contributed to her buyer-client terminating the contract and ceasing a working relationship with Jordan.  Jordan inappropriately provided legal advice to her buyer-client, failed to provide and review WWREA at first substantial contact, and failed to respond to a Letter of Inquiry from the Commission within 14 days.

TAMMY ROHRER (GRAHAM) – The Commission accepted the voluntary surrender of the real estate license of Rohrer, effective May 22, 2024. The Commission dismissed without prejudice allegations that Rohrer violated provisions of the Real Estate License Law and Commission Rules. Rohrer neither admitted nor denied misconduct.

RYAN PATRICK ROSS (ASHEVILLE) – By Consent, the Commission suspended the broker license of Ross for a period of 12 months, effective May 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Ross was the listing agent for the subject property.  Ross relied on the square footage contained in a prior listing for the subject property and incorrectly advertised the square footage in the MLS.  Ross failed to discover and disclose that the sellers did not obtain a permit for a newly installed hot tub and deck, for which a permit was required.

KATERYNA RUSH (KITTY HAWK) – By Consent, the Commission reprimanded Rush, effective May 1, 2024. The Commission found that Rush was the broker-in-charge of a firm at the time of closing of the subject property for which an affiliated broker was the listing agent.   The subject property was located across from a coastal waterway. The firm advertised the subject property in the MLS as “Boasting Sound Views and Stunning Sunsets” and “Top level…perfect for an office with water view…” Rush failed to disclose in writing that the sellers owned the waterfront lot located across from the subject property planned to build a house on the waterfront lot. Buyer’s Agent was aware the sellers owned the waterfront lot.

THE PATHWAY GROUP LLC (SALISBURY) – By Consent, the Commission suspended the firm license for a period of 12 months, effective May 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that the firm failed to adequately supervise an affiliated provisional broker.  The firm failed to ensure that an affiliated provisional broker timely completed all required postlicensing.  The provisional broker was placed on inactive status for failure to complete postlicensing and continued to engage in real estate brokerage activity. 

TOY K WARDEN (KITTY HAWK) – By Consent, the Commission reprimanded Warden, effective May 1, 2024. The Commission found that Warden was the broker-in-charge of a firm at the time an affiliated broker listed the subject property for sale.  The subject property was located across from a coastal waterway.  The firm advertised the subject property in the MLS as “Boasting Sound Views and Stunning Sunsets” and “Top level…perfect for an office with water view…”  Warden failed to disclose in writing that the sellers owned the waterfront lot located across from the subject property and planned to build a house on the waterfront lot. Buyer’s Agent was aware the sellers owned the waterfront lot.