The 2006-07 edition of the Real Estate Commission’s text and reference book, the North Carolina Real Estate Manual, will be available for purchase in late June. The Manual, which is updated bi-annually, has for several years served as the text for the sixty-hour Broker Course. However, the course became obsolete April 1 with the change to a “broker only” licensing structure and implementation of a substantially revised education program. Under this new program, newly licensed “provisional brokers” must now complete three thirty-hour postlicensing courses within the first three years after initial licensure (at least one of the thirty-hour courses each year). Also, all salesperson licenses were converted to provisional broker licenses and those persons licensed as salespersons prior to October 1, 2005 required to complete a twenty-four hour Broker Transition Course if they do not have four years full-time (or equivalent part-time) brokerage experience within the previous six years. The new edition of the Manual will serve as the text for all three of the new postlicensing courses and the Broker Transition Course.
In addition to the usual updating required to reflect changes in laws, rules and practices, the 2006-07 edition features substantial revisions to better support its expanded role as the text for the new courses. For example, the material relating to agency concepts and relationships was substantially rearranged and duplication of coverage minimized. Coverage of broker practices and services when working with both sellers and buyers has been expanded to provide a better understanding of an agent’s practical responsibilities and to facilitate teaching the subject matter in “transaction sequence” as called for in the new courses. New chapters on “Property Management” and “License Law Case Studies” have been added, as well as a new appendix addressing the process of “Licensing a Real Estate Firm”. And there have been significant improvements in the coverage of several other topics, including sales contracts, fair housing and commercial real estate brokerage. TheManual continues to include current versions and comments on the Real Estate License Law and Commission rules.
Because of its excellent coverage of a wide range of topics critically important to practicing real estate agents, every broker should have a current edition of the North Carolina Real Estate Manual in his or her personal library. It may be ordered online via the Commission’s website at www.ncrec.state.nc.us or by using the order form included in this Bulletin.
This article came from the June 2006-Vol37-1 edition of the bulletin.
The June 30 license renewal deadline is just days ahead. Take a few minutes now to renew and take this annual task off your to-do list.
Join the many licensees who choose to renew online each year at the Commission’s website, www.ncrec.state.nc.us. It’s quicker and easier and takes about two minutes. You will receive a confirmation that your renewal has been sent to the Commission for processing.
To renew online, you will need your MasterCard or Visa for the $40 fee. While online and, if necessary, update your personal information (email, fax, residence address).
Reminder: At the “Renew/Reinstate” tab of the Commission’s website you must login with your license number and PIN (personal identification number). Unless you have changed your PIN, it will be the last four digits of your Social Security Number).
If you choose to renew by mail, remember that it must be received by the Commission no later than June 30 (not postmarked). Otherwise, your license status will be expired.
Continuing education credit information is also available on the website, which will allow you to monitor the correct posting of your course credits. Allow 15 days following your class for any credits to be reflected. If you renew but fail to take the required continuing education for the license period, your license status will be changed to “inactive”.
This article came from the June 2006-Vol37-1 edition of the bulletin.
By Emmet R. Wood
Director, Audits and Investigations
The Internal Revenue Service has just issued a ruling (Rev. Rule 2006-27) on organizations that provide seller-funded down-payment assistance to home buyers.
Down-payment-assistance programs provide cash assistance to home buyers who cannot afford to make the minimum down payment or pay closing costs involved in obtaining a mortgage. Such programs can qualify as tax-exempt charitable and educational organizations when properly structured and operated. In the ruling, the IRS provides a detailed discussion of the guidelines-including two examples that meet and one that fails to meet the test for exemption.
The ruling makes it clear that seller-funded programs are not charities because they do not meet the requirements of section 501 (c)(3). Increasingly, the IRS has found that organizations claiming to be charities are being used to funnel down-payment assistance from sellers to buyers through self-serving, circular-financing arrangements. In a typical scheme, there is a direct correlation between the amount of the down-payment assistance provided to the buyer and the payment received from the seller. Moreover, the seller pays the organization only if the sales closes, and the organization usually charges an additional fee for its services.
What happens when an organization does not qualify as a tax-exempt organization? No tax deduction will be allowed to the seller for a charitable contribution. The home buyers may not be able to include the amount of the assistance in the cost basis of their home. The assistance will probably no longer qualify as a third-party gift for the purposes of the buyer’s loan application. Consequently, the lender will have to treat the payment as a seller concession, deduct the concession from the value of the property and recalculate the buyer’s loan-to-value ratio. If the buyer cannot come up with the required down-payment another way, his/her loan application will be denied.
Brokers are cautioned to be wary of any down-payment assistance program in which the home seller makes a gift to a purported charity and the buyer receives a gift of roughly the same amount from the charity (minus fees and expenses) to use as a down-payment to buy the seller’s house. Such programs may not be what they claim to be and may violate the IRS ruling. Misrepresentation of such a program to a lender or party in a real estate transaction would be a violation of the North Carolina Real Estate License Law and may constitute loan fraud.
You can find the news release and the ruling at www.irs.gov/newsroom, click on “News Releases”, then on “IRS Targets Down-Payment Assistance Scams”.
This article came from the June 2006-Vol37-1 edition of the bulletin.
SANYA E. ADAMS (Durham) – By Consent, the Commission revoked the broker license of Ms. Adams effective March 16, 2006. The Commission found that Ms. Adams, acting as broker and rental agent for the owners of 53 rental properties, failed to keep proper trust account books and records and failed to properly account for trust monies for her landlord clients. The Commission also found that trust monies in her account were short in excess of $21,000.
M. PAM ARIZONA (Raleigh) – By Consent, the Commission revoked the salesperson license of Ms. Arizona effective February 9, 2006. The Commission found that Ms. Arizona on September 15, 2005 pleaded guilty and was found guilty of felony false bomb report and two counts of second degree kidnapping, sentenced to 6-8 months for the false bomb report, which sentence was suspended for 60 months of supervised probation, and 20-33 months of active incarceration for the kidnapping.
MURIEL M. BIJEAU (Raleigh) – By Consent, the Commission reprimanded Ms. Bijeau effective April 1, 2006. The Commission found that Ms. Bijeau, acting as a buyer agent, failed to disclose to her buyer clients a proposal to build a four-lane bypass in close proximity to the property being purchased.
BINACO INTERNATIONAL OF NY t/a BINACO REAL ESTATE (Charlotte) – By Consent, the Commission revoked the firm license of Binaco International effective March 16, 2006. The Commission found that BinacoInternational, in selling a property it owned, paid a referral fee of $18,750 to an unlicensed entity for referring the buyer.
M. SHERLYNNE BISSELL (Carthage) – By Consent, the Commission revoked the broker license of Ms. Bissell effective February 9, 2006. The Commission found that Ms. Bissell, as broker-in-charge of a vacation rental management firm in 2003 failed to maintain trust account records in the form and manner required by Commission rule and failed to conduct monthly reconciliations of trust account records and bank statements as required by Commission rule. Ms. Bissell neither admitted nor denied, but did not contest, the Commission findings.
MICHAEL E. BLANKENSHIP (Kill Devil Hills) – By Consent, the Commission revoked the broker license of Mr. Blankenship effective April 20, 2006. The Commission found that Mr. Blankenship failed to respond to multiple letters of inquiry in two cases being investigated by the Commission.
SONYA R. BOOHER (Kitty Hawk) – By Consent, the Commission reprimanded Ms. Booher effective April 10, 2006. The Commission found that Ms. Booher, while licensed as a real estate salesperson, was placed in charge of record keeping for vacation rental trust accounts of the firm with which she was affiliated, and failed to maintain the trust account records in the manner required by Commission rule. The Commission noted that Ms. Booher cooperated with the Commission investigation.
TIMOTHY P. BURRELL (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Burrell for a period of six months effective April 1, 2006. The Commission then stayed the suspension for a probationary period of one year on certain conditions. The Commission found that Mr. Burrell, acting as agents to buyers, failed to disclose to the buyers a proposal to build a four-lane overpass in proximity to the property the buyers were purchasing.
DONNA CARTER-ODOM (Greenville) – By Consent, the Commission suspended the broker license of Ms. Carter-Odom for a period of one year effective February 9, 2006. Three months of the suspension were active with the remainder stayed for a probationary period of nine months on certain conditions. The Commission found that Ms. Carter-Odom acted as a dual agent in a transaction in which she represented the buyer of a property listed by another agent in the same firm and negligently failed to disclose material facts related to the buyer’s ability to close the transaction.
CONNER, INC. (Kitty Hawk) – By Consent, the Commission revoked the firm license of Conner, Inc., effective April 10, 2006. The Commission found that Conner, Inc., failed to maintain trust account records in the manner required by Commission rules, and during the operation of its office, could not accurately account for the funds of others it received in the course of its business.
JULIE D. CONNER (Kitty Hawk) – By Consent, the Commission reprimanded Ms. Conner effective April 10, 2006. The Commission found that Ms. Conner, while affiliated with two different firms, was responsible for maintaining trust account records of each firm and failed to maintain the trust account records in the manner required by Commission rule. The Commission noted that Ms. Conner cooperated with the Commission’s investigation.
KEVIN G. CONNER (Kitty Hawk) – By Consent, the Commission suspended the broker license of Mr. Conner for a period of six months effective March 15, 2006. Two months of the suspension were active with the remainder stayed under certain conditions for a probationary period ending June 1, 2009. The Commission found that Mr. Conner, acting as broker-in-charge, took over two real estate offices and failed to detect that the trust accounts were substantially short and failed to implement an adequate record keeping system, thus preventing accurate and timely accounting to property owners for funds received and disbursed on their behalf. The Commission noted that Mr. Conner cooperated with the Commission’s investigation, but had failed to provide an accurate trust accounting to the Commission.
CONNER RESORTS, INC. (Kitty Hawk) – By Consent, the Commission suspended the firm license of Conner Resorts for a period of three years effective July 1, 2006. The Commission then stayed the suspension for a probationary period of three years under certain conditions. The Commission found that Conner Resorts used a trust account it had purchased from another broker that had a shortage of $20,000 at the time of purchase and failed to immediately correct the shortage and implement a trust account record keeping system as required by Commission rules, and, although it corrected its sales and long-term rental trust account records, had not created or maintained acceptable records for its 2004 and 2005 vacation rental properties. The Commission noted that Conner Resorts has implemented an acceptable record system for its 2006 vacation rentals and has hired professional help to assist in correcting the problems with the 2004 and 2005 vacation rental records.
BUDDY L. FULLER (Durham) – The Commission accepted the voluntary surrender of the broker license of Mr. Fuller for a period of 18 months effective April 1, 2006. The Commission dismissed without prejudice allegations that Mr. Fuller had violated provisions of the Real Estate License Law and Commission rules. Mr. Fuller did not admit misconduct.
GENESIS REALTY GROUP LLC (Charlotte) – By Consent, the Commission revoked the firm license of Genesis Realty effective April 20, 2006. The Commission found that Genesis Realty failed to provide records of funds received, held or disbursed by the sole licensee affiliated with it when requested to do so by an agent of the Commission.
GREENVILLE PROFESSIONAL GROUP (Greenville) – By Consent, the Commission reprimanded the Greenville Professional Group effective February 9, 2006. The Commission found that the Greenville Professional Group, a real estate brokerage firm, acted as a dual agent in a sales transaction and through the selling agent negligently failed to disclose material facts related to the buyer’s ability to close the transaction. The Commission noted that Greenville Professional Group has since resolved the situation with the Complainants.
JAYA GUPTA (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Gupta for a period of 90 days effective July 1, 2006. The Commission then stayed the suspension on certain conditions. The Commission found that Ms. Gupta, as broker-in-charge and principal broker of a real estate brokerage firm, paid a referral fee of $18,750 to an unlicensed entity for referring the buyer in the sale of a property the firm owned.
PEARL G. HEMPHILL (Charlotte) – By Consent, the Commission revoked the broker license of Ms. Hemphill effective April 20, 2006. The Commission found that Ms. Hemphill received funds of others while acting as a real estate broker and did not provide trust account records at the request of the Commission.
LINWOOD J. JONES (Garner) – By Consent, the Commission suspended the broker license of Mr. Jones for a period of two years effective April 1, 2006. The Commission found that Mr. Jones, licensed as both a real estate broker by the Commission and as a registered land surveyor by the North Carolina Board of Examiners for Engineers and Surveyors, prepared plats and surveys for a subdivision subsequently flooded during Hurricane Fran in 1996 and Hurricane Floyd in 1999, leading to a controversy about whether the flood plain lines indicated on those documents were correct and civil litigation against Mr. Jones and others which was resolved by settlement with the plaintiffs. The Commission also found that Mr. Jones was subsequently disciplined by the Board of Examiners for his conduct as a surveyor on another matter and failed to report the disciplinary action to the Commission.
CHRISTOPHER M. KELLY (Cary) – By Consent, the Commission suspended the salesperson license of Mr. Kelly for a period of 90 days effective February 1, 2006. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Kelly failed to disclose on his 2000 application for a salesperson license a conviction for possession of nitrous oxide, for which he received a suspended sentence with supervised probation.
JOHN E. LAWTON (Raleigh) – The Commission accepted the voluntary surrender of the broker license of Mr. Lawton for a period of one year effective March 16, 2006. The Commission dismissed without prejudice allegations that Mr. Lawton had violated provisions of the Real Estate License Law and Commission rules. Mr. Lawton neither admitted nor denied misconduct.
LAWANA MCNEILL (High Point) – By Consent, the Commission suspended the broker license of Ms. McNeill for a period of two years effective February 1, 2006. Three months of the suspension were active and the remainder stayed for a probationary period of two years. The Commission found that Ms. McNeill, acting as agent for clients in the sale of one residence and purchase of another, failed to describe her relationship with the parties accurately in agency contracts. The Commission also found that Ms. McNeill failed to maintain the parties’ earnest money deposits in a trust account and failed to keep full and accurate records of the client monies entrusted to her, did business as a corporation without obtaining a broker license for the firm, and in the course of the Commission’s inquiry failed to respond to the Commission’s letters of inquiry in a timely fashion.
THOMAS LEE MCNEILL (Kill Devil Hills) – By Consent, the Commission suspended the salesperson license of Mr. McNeill for a period of three years effective February 13, 2006. Thirty days of the suspension were active with the remainder stayed for a probationary period of 35 months under certain conditions. The Commission found that Mr. McNeill falsely represented on a 2004 application for a real estate salesperson license that he had not been convicted of a criminal offense other than DWI, when in fact he had been convicted of Assault on a Female, a misdemeanor, and was sentenced to a 60-day jail term, suspended for twenty four months with a fine and costs. The Commission noted that Mr. McNeill disclosed the offense on his 2005 broker license application.
ARVELLE MOORE (Rocky Mount) – By Consent, the Commission reprimanded Mr. Moore effective July 1, 2006. The Commission found that Mr. Moore failed to properly account for and remit to his principal funds received on behalf of the principal in a real estate transaction, which were inadvertently paid to the wrong person. The Commission noted that Mr. Moore cooperated with the investigation of this matter and satisfied the claims of his principal.
HEATHER RENEEE MUIR (Nags Head) – By Consent, the Commission suspended the license of Ms. Muir for a period of one year effective April 20, 2006. The Commission found that Ms. Muir pled guilty and was convicted of possession of drug paraphernalia in April 2005 and was later convicted of Driving While Impaired, Level 5, and another count of possession of drug paraphernalia in November 2005.
ERIC T. PERRY (Kure Beach) – The Commission revoked the broker license of Mr. Perry effective January 1, 2006. The Commission found that Mr. Perry was convicted of felonies for drug possession and obtaining property by false pretenses. The Commission also found that Mr. Perry failed to respond to the initial inquiry letter from the Commission, and failed to report certain convictions to the Commission.
THOMAS F. PIPER (Raleigh) – By Consent, the Commission suspended the salesperson license of Mr. Piper for a period of one year effective November 1, 2005. The Commission found that Mr. Piper listed several properties and collected retainer fees for the listings, but failed to advertise the properties as promised. The Commission also found that Mr. Piper went to work for another real estate brokerage firm where he failed to renew his license and continued to engage in real estate brokerage for approximately four months while his license was expired.
RICHARD J. REGAN (Elizabeth City) – By Consent, the Commission revoked the broker license of Mr. Regan effective February 13, 2006. The Commission found that on October 5, 2005, Mr. Regan pleaded guilty to and was found guilty of Second Degree Sexual Offense and was sentenced to 14 years of incarceration.
H. EUGENE REYNOLDS, JR. (Elizabeth City) – By Consent, the Commission suspended the broker license of Mr. Reynolds for a period of one year effective December 1, 2005. Three months of the suspension were active with the remainder stayed for a probationary period of nine months. The Commission found that Mr. Reynolds notified the property manager of his intent not to renew a lease for a property he had rented for the past year and provided receipts purportedly from a carpet cleaning business and extermination company to demonstrate that the carpets had been professionally cleaned and the property exterminated as required by the property manager when, in fact, the receipts were false documents created by Mr. Reynolds to induce the property manager into believing that he had complied when he had not.
SHERMAN T. RICE (Lake Lure) – By Consent, the Commission suspended the license of Mr. Rice for a period of six months effective April 20, 2006. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Rice made a false statement on his 1996 license application that he had not been convicted of any criminal offense when in fact he had a 1995 conviction for Driving While Impaired, Level II. The Commission also found that subsequent to his licensing Mr. Rice was twice convicted of Driving While Impaired, Level II, once in 1998 and once in 2000 and did not report these convictions to the Commission.
PERRY S. SIMPSON (Sanford) – By Consent, the Commission suspended the broker license of Mr. Simpson for a period of two years effective February 1, 2006. The Commission found that Mr. Simpson failed to disclose to the Commission in his 1992 application for licensure as a salesperson convictions for underage possession of beer or wine during 1988 and 1989 and possession of marijuana in 1989, instead declaring that he had not been convicted of a criminal offense. The Commission also found that Mr. Simpson disclosed none of the convictions described above in his 2001 application for a broker license and also failed to disclose a 1998 conviction for possession of marijuana, again declaring he had not been convicted of any crime, and failed to report his 1998 conviction to the Commission in a timely fashion.
DAVID LOUIS SMITH, II (Reidsville) – By Consent, the Commission suspended the license of Mr. Smith for a period of six months effective April 20, 2006. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Smith failed to report convictions on his 1999 salesperson license application for misdemeanor Injury to Personal Property on October 21, 1997; misdemeanor Motorboat Without Lifesaving Device and misdemeanor Fishing Without a License on June 16, 1995; misdemeanor Assault Inflicting Serious Injury on June 2, 1993; and Speeding to Elude Arrest in December and Driving While License Revoked on December 1, 1993. The Commission noted that Mr. Smith did reveal more serious convictions at that time and revealed all his convictions on his 2005 broker application.
THOMAS J. STATON (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Staton for a period of two years effective September 1, 2005. The Commission then stayed the suspension for a probationary period of three years. The Commission found that Mr. Staton, in attempting to bring about a closing on a property he had listed and to assist potential buyers, prepared numerous documents that did not accurately reflect the actual facts of the proposed transactions for which these documents were intended and signed some of these documents for various parties without authority.
EDWARD V. SWINDELL (Greenville) – By Consent, the Commission reprimanded Mr. Swindell effective February 9, 2006. The Commission found that Mr. Swindell, a licensed real estate broker, was broker-in-charge of a real estate brokerage firm which acted as a dual agent in a sales transaction and negligently failed through its agents to disclose material facts related to the buyer’s ability to close the transaction. The Commission noted that the firm has since resolved the situation with the Complainants.
WILBUR H. TUCK, JR. (Surf City) – By Consent, the Commission suspended the salesperson license of Mr. Tuck for a period of six months effective March 15, 2006. Two months of the suspension were active with the remainder stayed for a probationary period of two years under certain conditions. The Commission found that Mr. Tuck failed to report to the Commission on his license application one conviction of Driving While Impaired and reported a second conviction of Driving While Impaired months after the time required by Commission rule. The Commission noted that Mr. Tuck cooperated with the Commission’s investigation and took appropriate measures to address the issues underlying these incidents.
DAVID A. URBEN (Wilimington). By Consent, the Commission suspended the broker license of Mr. Urben for a period of one year effective June 1, 2006. One month of the suspension was active with the remainder stayed for a probationary period of 11 months on certain conditions. The Commission found that from 1995 until 2005, while Mr. Urben served as the qualifying broker and broker-in-charge of a licensed real estate firm, an associate of Mr. Urben’soffice failed to renew his license or to take any continuing education, and that Mr. Urben failed to assure that he did so.
MICHAEL S. VARNER (Asheville) – By Consent, the Commission suspended the broker license of Mr. Varner for a period of six months effective March 15, 2006. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Varner failed to disclose his convictions for Possession of a Controlled Substance and Possession of Drug Paraphernalia in 1996. The Commission noted that Mr. Varner reported a DWI conviction in 2005.
This article came from the October 2006-Vol37-1 edition of the bulletin.
The Basic Trust Account Procedures and the Trust Account Procedures for Resort Property Managers courses will be offered in varying locations throughout the state during the year in place of the annual Spring Trust Account Caravan, which is being discontinued.
For current locations and course offerings, please see the online course registration form at the Commission’s website, www.ncrec.state.nc.us. Both courses will continue to count as four hours of continuing education elective credit.
Brokers-in-charge are not required to take these courses, although the Commission recommends that BIC’s who will not be taking the new 12-hour broker-in-charge course and their bookkeepers (licensed or unlicensed) attend them to ensure property maintenance of their trust account and related records.
This article came from the March 2006-Vol36-3 edition of the bulletin.
The Commission’s publications for licensees and consumers encompass 19 brochures and booklets; the Real Estate Manual, a text book for use in broker licensing courses; and the Real Estate Bulletin, a thrice-yearly, 16-page, full color newsletter for licensees. Nine are available for purchase; 12 are free. Units distributed exceeded 1,000,000 in the last fiscal year. Distribution through the six months ending December 2005 is 25% greater than that for the same period a year earlier.
This article came from the March 2006-Vol36-3 edition of the bulletin.
On April 1, 2006, North Carolina will take a big step toward enhancing professionalism in its real estate brokerage community and helping to assure that real estate consumers are served by better qualified practitioners. That is the implementation date for changes that rank as the most significant since enactment of the Real Estate License Law in 1957.
Highlights of the Law Changes
• Increasing the education required to obtain a real estate license.
• Adding a substantial postlicensing education requirement that all new licensees must satisfy.
• Eliminating the “salesperson” license category as part of a “broker only” licensing system.
• Converting existing “salesperson” licenses to “broker” licenses and requiring licensees to either demonstrate substantial recent brokerage experience or take additional education.
• Requiring prospective brokers-in-charge of real estate offices to complete additional specialized education and possess substantial brokerage experience.
Advisory committees of the Commission and the North Carolina Association of REALTORS® had reported to the Commission problems with brokers who had become brokers-in-charge of real estate offices with little or no actual real estate experience. They also expressed concern that many newly licensed salespersons did not appear to possess a thorough knowledge of some very important aspects of brokerage practice. It was further noted that real estate consumers did not differentiate between salespersons and brokers as to the level of service they expected. The Commission determined that the best solution was to adopt a “broker only” licensing system, to increase education requirements for new licensees, and to require brokers-in-charge to be better qualified. Legislation to accomplish these goals and objectives was proposed by the Commission and enthusiastically supported and promoted by the REALTORS® Association. The legislation was unanimously enacted by both houses of the General Assembly and signed into law by Governor Easley.
Since enactment of the law changes, the Commission and its staff have been working diligently to adopt the many rules and policies, develop courses, create computer programs and complete a multitude of other tasks necessary to implement this massive new program on April 1 – – in addition to processing a record number of license applications and broker-in-charge declarations.
But perhaps the most challenging task which the Commission has encountered has been that of informing and educating licensees about the coming changes and how it will affect them. Articles have been published in this newsletter, information posted on the Commission’s website, notices sent to real estate schools and instructors and letters sent to all salespersons and brokers-in-charge.
To respond to the heavy volume of calls that this has generated, additional help has been recruited and trained. Nevertheless, you may still encounter delays contacting the Commission office. For this reason, the Commission requests your patience and understanding during this very busy time and asks for your cooperation by carefully reading this article, the letters to salespersons and brokers-in-charge reprinted in this Bulletin and other explanatory materials available to you on the Commission’s website, www.ncrec.state.nc.us.
Following is a more detailed discussion of the new licensing requirements, the April 1 conversion of salesperson licenses to “provisional broker” licenses, and the new broker-in-charge requirements.
NEW LICENSING
REQUIREMENTS
Persons applying for real estate licenses on or after April 1, 2006 must first complete a 75-hour prelicensing course (currently 67 hours). Upon passing the license examination, they will be issued a “provisional broker” license (technically a broker license on “provisional” status) which is actually the same as a current salesperson license with regard to activities the provisional broker is authorized to perform. Thus, provisional brokers must continue to be supervised by a broker-in-charge and may not, of course, be broker-in-charge of their own or any other office. The license certificate will only say “Broker”, but the pocket card will reflect that it is on “provisional” status.
Persons with provisional broker licenses issued or reinstated on or after April 1 must complete three 30-hour postlicensing courses within three years after licensure (at least one course each year). Upon completing the threepostlicensing courses, the “provisional” status of the broker’s license will be terminated. If a provisional broker fails to complete at least one course by the end of the first year (or a second course by the end of the second year), his or her license will be placed on “inactive” status until the required education is completed. And if a provisional broker fails to complete all three postlicensing courses within three years, the license will be cancelled and the former licensee must satisfy the requirements for license reinstatement.
The postlicensing courses will be offered by the same schools that offer prelicensing courses and will include a final examination. When the Commission receives notice from the school that the provisional broker has completed the final course, it will terminate the “provisional” status of the license. [Nonresident North Carolina licensees can satisfy the postlicensing education requirement by taking courses or obtaining a broker license in another state. See the guidelines for nonresident licensees on the Commission’s website, www.ncrec.state.nc.us.]
CONVERSION OF
SALESPERSON LICENSES TO PROVISIONAL BROKER LICENSES
Also on April 1, all salesperson licenses will be converted to “provisional broker” licenses. Persons licensed as salespersons between October 1, 2005 and March 31, 2006 must satisfy the postlicensing education requirement described above to avoid having their “provisional” broker licenses placed on “inactive” status or eventually cancelled. Persons licensed as salespersons before October 1, 2005 must, prior to April 1, 2008, either complete a 24-hour Broker Transition Course or demonstrate at least four years full-time (or equivalent) brokerage experience within the previous six years to avoid having their “provisional” broker licenses placed on “inactive” status.
How to Terminate “Provisional”
Status by Taking the
Broker Transition Course
If your salesperson license was issued before October 1, 2005 (look at the issuance date on your license certificate) and you cannot satisfy the experience option, you will need to take the 24 classroom hour Broker Transition Course. This course will have no “end-of-course exam” and will count as your continuing education elective course for the license period in which you take it (or carryover credit if you have already taken your elective course for the period). The course will be offered by continuing education Update Course sponsors who will report your completion of the course to the Commission. So you will not need to request termination of “provisional” status upon completing this course. [Nonresident North Carolina licensees may take courses in another state to satisfy this requirement. See the guidelines for nonresident licensees on the Commission’s website, www.ncrec.state.nc.us.
How to Terminate “Provisional”
Status Based Upon
Real Estate Experience
You may have the “provisional” status of your broker license terminated without taking the Broker Transition Course if:
1. Your salesperson license was issued before October 1, 2005; and
2. You have at least four years experience as a licensed broker and/or salesperson at the time you request termination of “provisional” status (which can include experience acquired between April 1, 2006 and April 1, 2008); and
3. Your experience was acquired within six years preceding the time you request termination of “provisional” status; and
4. You were working as a broker or salesperson on a full-time (or equivalent part-time) basis and your license was on active status when you acquired the experience. “Full-Time” means at least 40 hours per week. Only experience performing activities that require a real estate license (listing, selling, property management, etc.) is acceptable, including experience obtained in another state. Experience gained as a licensed real estate assistant is acceptable. But you cannot claim credit for work performed as a secretary, bookkeeper or manager of a real estate office, or as a leasing agent performing acts exempt from licensure – even though you were licensed as a broker or salesperson at the time.
To request the Commission to terminate the “provisional” status of your broker license:
1. Go to the Commission’s website, www.ncrec.state.nc.us
2. On the website, go to “Licensee Login” and enter your license number and PIN.
3. From the “Menu”, select “Provisional Broker Certification of Experience” which will contain a statement for you to certify to the Real Estate Commission that you possess the experience required to terminate the “provisional” status of your broker license.
4. Enter the information requested on the “Certification of Experience” screen, and you will be promptly sent a new license pocket card reflecting that your broker license is no longer on “provisional” status.
By submitting the above information to the Real Estate Commission, you are certifying to the Commission that you possess the experience required to terminate the “provisional” status of your broker license. You will not, at that time, be required to produce evidence of your experience, but you should be prepared if the Commission later asks you to do so. Here are some suggestions for records you may wish to have on hand should the Commission request you to verify your real estate experience. They are listed in the order preferred by the Commission.
1. Written statement(s) from your current and/or former broker(s)-in-charge or other firm officials giving the dates of your affiliation with the firm(s) and stating that during those dates, you were engaged in the business of a real estate broker and/or salesperson on a full-time basis (at least 40 hours per week) or, if not full-time, the approximate number of hours worked per week; and/or
2. Transaction documents (copies of sales contracts, agency agreements, leases, etc.) from the period for which you are seeking credit; and/or
3. A list of transactions in which you participated during the period for which you are seeking credit giving the approximate dates of the transactions, types of properties involved, the names of the parties and any other agents in the transaction, and a description of your role in them (listing agent, rental agent, etc).
Due to the large number of persons expected to seek termination of the “provisional” status of their broker licenses based upon their real estate experience, the Real Estate Commission staff will be unable to evaluate or comment on the adequacy of your experience. Therefore, if you will not be able to produce for the Commission upon request documentation which reasonably demonstrates that you were engaged in the business of a licensed real estate broker and/or salesperson on a full-time (or equivalent part-time) basis for at least four out of the past six years prior to certifying your experience, you are advised to complete the 24-hour Broker Transition Course.
NEW BROKER-IN-CHARGE
REQUIREMENTS
Generally, all active real estate firms and sole proprietorships must have a broker-in-charge designated with the Commission for each real estate office. (There are exceptions for “sole practitioners” who have no associates, handle no trust monies, and don’t advertise or otherwise promote their services as a broker in any way; and for certain Subchapter S corporations.)
Broker-In-Charge
Qualification Requirements
If you want to become a broker-in-charge on or after April 1, 2006 you must:
1. Hold an active broker license which is not on “provisional” status; and
2. Possess two years full-time (or equivalent part-time) experience as a broker and/or salesperson in North Carolina or another state within the previous five years, or have equivalent education/experience; and
3. Complete the Commission’s 12 classroom hour Broker-In-Charge Course within three years prior to or 120 days following your designation as broker-in-charge. You will receive continuing education elective course credit during the license period in which the course is taken. This course will be offered by the Commission at various locations each month. Brokers-in-charge may obtain the course schedule and register for the course via the Commission’s website,www.ncrec.state.nc.us.
[Nonresident brokers-in-charge whose offices are in another state are exempt from the course requirement.]
How to Certify and Verify
Broker-In-Charge
Qualifying Experience
Beginning April 1, to designate yourself as a broker-in-charge, you should access the Commission’s website, www.ncrec.state.nc.us, and complete online the “Broker-In-Charge Declaration Form”. It will contain a statement for you to certify to the Real Estate Commission that you possess the experience required to qualify as a broker-in-charge. You will not be required to produce evidence of your experience at that time, but you may later be requested to do so by the Commission. For more information on what constitutes acceptable experience and how to verify it, see the previous discussion about how to terminate “provisional broker” status based on real estate experience and how to verify such experience.
Broker-In-Charge
Continuing Education
Beginning July 1, 2006, all brokers-in-charge must complete a four classroom hour Broker-In-Charge Annual Review Course each full license period after being designated a broker-in-charge. When you take the review course, it will count as your continuing education elective course for the license period, but you must still complete the Real Estate Update continuing education course each license period. The content of the Broker-In-Charge Annual Review Course will change each year.
Future Breaks in Service
If you are designated broker-in-charge before April 1, 2006 and have satisfied the current or new broker-in-charge education requirement, you may continue to serve indefinitely as broker-in-charge so long as there is no break in your service for any reason. If there is a break in service, and you subsequently want to again become a broker-in-charge, you must satisfy the education and experience requirements in effect at that time. If you terminate yourself as broker-in-charge from one office and simultaneously designate yourself broker-in-charge of another office with the same or a different firm, this will not be considered a break in service.
This article came from the March 2006-Vol36-3 edition of the bulletin.
Letters explaining the law changes were mailed to all licensees on February 1. The texts of those letters are reproduced below on pages 8 through 11. Please visit the Commission website, www.ncrec.state.nc.us, for more information about the changes in the Real Estate License Law and Commission rules.
Broker-In-Charge
• According to our records, you are currently designated broker-in-charge of a real estate office. The Real Estate Commission wants to make you aware of Real Estate License Law amendments effective April 1, 2006. Beginning April 1, persons wishing to become brokers-in-charge must:
o possess two years full-time (or equivalent part-time) experience as a broker and/or salesperson within the previous five years (or have equivalent education/experience); and
o complete the Commission’s Broker-In-Charge Course consisting of 12 hours of classoom
instruction.
• Also, all brokers-in-charge, regardless of when they became a broker-in-charge, must complete a four classroom-hour Broker-In-Charge Annual Review Course each license period which will count as their continuing education elective course for the year. This course will be available beginning July 1, 2006. Course content will change each year. You also must continue to take the Real Estate Update continuing education course each license period.
• If you have already taken your Broker-In-Charge Course (four classroom hours now, 12 hours after April 1) or you take it within 120 days following your designation as broker-in-charge, and you remain broker-in-charge without any break in service, YOU WILL ONLY BE AFFECTED BY THE NEW CONTINUING EDUCATION REQUIREMENT.
• However, if you are not designated a broker-in-charge on April 1 or if there is any period of time after April 1 when for any reason you are not designated a broker-in-charge, you will be required to satisfy the new education and experience requirements if you wish to again become a broker-in-charge. [Note: If after April 1, you terminate as broker-in-charge of one office/firm and, AT THE SAME TIME, designate yourself broker-in-charge of a different office/firm, this will not be considered to be a break in service.]
RESIDENT
Resident Salespersons with Active Licenses Issued Before October 1, 2005
• The Real Estate License Law was recently amended to help improve professional standards within the real estate industry. Under the revised law, your salesperson license will be converted to a broker license on April 1. However, you should be aware that salesperson licenses converted to broker licenses will be on “provisional” status. This means you must still be supervised by a broker-in-charge. Also, you will have two years to complete a Broker Transition Course or demonstrate a certain amount of real estate experience to avoid having your license placed on inactive status on April 1, 2008.
• The Broker Transition Course will be offered by continuing education course providers throughout the state after April 1. It will consist of 24 hours of classroom instruction, HAVE NO END-OF-COURSE EXAM, and will count as your continuing education elective course for the license period in which you take it (but you must still take the Update Course if you were licensed as a salesperson prior to July 1, 2005).
• You can skip the Broker Transition Course if/when you certify to us you have acquired at least four years full-time (or equivalent part-time) experience as a real estate broker and/or salesperson within the previous six years. “Full-time” means at least 40 hours per week. “Experience” includes any activity requiring a real estate license (listing, sales, property management, etc.). Experience acquired between April 1, 2006 and April 1, 2008 may count toward the four years. Beginning in April, you may access our website at www.ncrec.state.nc.us for instructions on how to certify your real estate experience.
• When you complete the Broker Transition Course (or certify you possess the required real estate experience), we will remove your license from “provisional” status. But if you have not completed the course (or certified you possess the required real estate experience) by April 1, 2008, your “provisional” broker license will be placed on inactive status and you must then complete 90 classroom hours of education to remove the “provisional” status and activate your license.
Resident Salespersons with Active Licenses Issued on or After October 1, 2005
• The Real Estate License Law was recently amended to help improve professional standards within the real estate industry. Under the revised law, your salesperson license will be converted to a broker license on April 1. However, you should be aware that salesperson licenses converted to broker licenses will be on “provisional” status. This means you must still be supervised by a broker-in-charge. Also, to avoid cancellation of your license, you must complete three postlicensing real estate courses (at least one per year) by April 1, 2009.
• The three Commission-approved postlicensing courses will be offered by schools after April 1 and each will consist of at least 30 hours of classroom instruction (including a course exam). You may take them in any order, but you must complete your first course by April 1, 2007, your second course by April 1, 2008, and your third by April 1, 2009. If you prefer, you may take all three courses during the first year after April 1, 2006.
• When you complete the three postlicensing courses, we will remove your license from “provisional” status. If you fail to complete the required course(s) by the April 1 deadlines in 2007 or 2008, your (provisional) broker license will be placed on inactive status until you have completed the missed course(s). And if you have not completed all three postlicensing courses by April 1, 2009, your license will be cancelled and you must reapply if you wish to have it reinstated. Depending on how long your license remains “cancelled”, you may have to complete even more education and/or retake the license examination to reinstate your license.
Resident Salespersons with Inactive Licenses Issued Before October 1, 2005
• The Real Estate License Law was recently amended to help improve professional standards within the real estate industry. Under the revised law, your inactive salesperson license will be converted to an inactive broker license on April 1. However, you should be aware that salesperson licenses converted to broker licenses will be on “provisional” status. This means that if you activate your provisional broker license, you must still be supervised by a broker-in-charge. You must complete a Broker Transition Course or demonstrate a certain amount of real estate experience by April 1, 2008 to terminate the “provisional” status and retain the right to activate your license by merely satisfying the continuing education requirement for the current and preceding license period.
• The Broker Transition Course will be offered by continuing education course providers throughout the state after April 1. It will consist of 24 hours of classroom instruction and HAVE NO END-OF-COURSE EXAM. You will receive continuing education elective course credit for the license period, but you may still need to complete additional continuing education to activate your license.
• You can skip the Broker Transition Course if/when you certify to us you have acquired at least four years full-time (or equivalent part-time) experience as a real estate broker and/or salesperson within the previous six years. “Full-time” means at least 40 hours per week. “Experience” includes any activity requiring a real estate license (listing, sales, property management, etc.). Experience acquired between April, 2006 and April 1, 2008 may count toward the four years. Beginning in April, you may access our website at www.ncrec.state.nc.us for instructions on how to certify your real estate experience.
• When you complete the Broker Transition Course (or certify you possess the required real estate experience), we will remove your license from “provisional” status. But if you have not completed the course (or certified you possess the required real estate experience) by April 1, 2008, you must complete 90 classroom hours of education to remove the “provisional” status and activate your license. Because your license was issued before October 1, 2005, you can keep it on inactive status indefinitely so long as you renew it each year.
Resident Salespersons with Inactive Licenses Issued on or After October 1, 2005
• The Real Estate License Law was recently amended to help improve professional standards within the real estate industry. Under the revised law, your inactive salesperson license will be converted to an inactive broker license on April 1. However, you should be aware that salesperson licenses converted to broker licenses will be on “provisional” status. This means that if you activate your license, you must still be supervised by a broker-in-charge. Also, to avoid cancellation of your license, you must complete three postlicensing real estate courses (at least one per year) by April 1, 2009.
• The three Commission-approved postlicensing courses will be offered by schools after April 1 and each will consist of at least 30 hours of classroom instruction (including a course exam). You may take them in any order. If you wish to activate your license after April 1, 2007, you must have completed at least one course, and after April 1, 2008, at least two courses (in addition to your required continuing education). When you complete all three postlicensing courses, we will remove your license from “provisional” status.
• If you have not completed the three postlicensing courses by April 1, 2009, your license will be cancelled and you must reapply if you wish to have it reinstated. Depending on how long your license remains “cancelled”, you may have to complete even more education and/or retake the license examination to reinstate your license.
NONRESIDENT
Nonresident Salespersons with Active Licenses Issued Before October 1, 2005
• The Real Estate License Law was recently amended to help improve professional standards within the real estate industry. Under the revised law, your salesperson license will be converted to a broker license on April 1. However, you should be aware that salesperson licenses converted to broker licenses will be issued on “provisional” status. This means you must still be supervised by a broker-in-charge. Also, you will have two years to complete a Broker Transition Course or demonstrate a certain amount of real estate experience to avoid having your license placed on inactive status on April 1, 2008.
• The Broker Transition Course will be offered by continuing education course providers throughout North Carolina after April 1. It will consist of 24 hours of classroom instruction, HAVE NO END-OF-COURSE EXAM, and count as your continuing education elective course for the license year in which you take it. The course will NOT be available by distance education (i.e. online, by correspondence, etc.). Recognizing it may be difficult for nonresidents to take the Broker Transition Course in North Carolina, you have this option — you may instead take courses approved by the licensing agency in another state (postlicensing, broker prelicensing, or continuing education) which together total at least 24 classroom hours. You may obtain credit for postlicensing and broker prelicensing courses completed within three years prior to your seeking credit for them. Continuing education courses must have been completed between April 1, 2006 and March 31, 2008 and must be in addition to any course(s) required to satisfy your state’s continuing education requirement. Beginning in April, you may access our website at www.ncrec.state.nc.us for instructions on how to report your education taken in another state.
• You can skip the Broker Transition Course if/when you certify to us you have acquired at least four years full-time (or equivalent part-time) experience as a real estate broker and/or salesperson within the previous six years. “Full-time” means at least 40 hours per week. “Experience” includes any activity requiring a real estate license (listing, sales, property management, etc.). Beginning in April, you may access our website at www.ncrec.state.nc.us for instructions on how to certify your real estate experience.
• We will remove your license from “provisional” status when you either □ complete the Broker Transition Course, or □ complete equivalent course(s) in another state, or □ certify you possess the required real estate experience, or □ certify you have obtained a broker license in another state. But if you have not done so by April 1, 2008, your “provisional” broker license will be placed on inactive status and you must then complete 90 classroom hours of education to remove the “provisional” status and activate your license.
Nonresident Salespersons with Active Licenses Issued on or After October 1, 2005
• The Real Estate License Law was recently amended to help improve professional standards within the real estate industry. Under the revised law, your salesperson license will be converted to a broker license on April 1. However, you should be aware that salesperson licenses converted to broker licenses will be issued on “provisional” status. This means you must still be supervised by a broker-in-charge. Also, to avoid cancellation of your license, you must complete three postlicensing real estate courses (at least one per year) by April 1, 2009.
• The three Commission-approved postlicensing courses will be offered by schools throughout North Carolina after April 1, and each will consist of at least 30 hours of classroom instruction (including a course exam). You may take them in any order, but you must complete your first course by April 1, 2007, your second course by April 1, 2008, and your third by April 1, 2009. The courses will NOT be available by distance education (i.e. online, by correspondence, etc.). Recognizing it may be difficult for nonresidents to take the brokerpostlicensing courses in North Carolina, you have this option — you may instead take education (postlicensing, broker prelicensing or continuing education) approved by the licensing agency in another state. You may obtain credit for postlicensing and brokerprelicensing courses completed within three years prior to your seeking credit for them. Continuing education courses must have been completed during the same one-year period in which you are seeking credit and must be in addition to any courses required to satisfy your state’s continuing education requirement. Beginning in April, you may access our website at www.ncrec.state.nc.us for instructions on how to report your education taken in another state.
• We will remove your license from “provisional” status when you either □ complete our three postlicensing courses, or □ complete equivalent courses in another state, or □ certify you possess the required real estate experience, or □ certify you have obtained a broker license in another state. But if you fail to complete the required education by the April 1 deadlines in 2007 or 2008, your provisional broker license will be placed on inactive status until you have completed the missed education. And if you have not completed the three postlicensingcourses or equivalent education by April 1, 2009, your license will be cancelled and you must reapply if you wish to have it reinstated (which may require taking our license examination and/or meeting other requirements, depending on your particular circumstances).
Nonresident Salespersons with Inactive Licenses Issued Before October 1, 2005
• The Real Estate License Law was recently amended to help improve professional standards within the real estate industry. Under the revised law, your inactive salesperson license will be converted to an inactive broker license on April 1. However, you should be aware that salesperson licenses converted to broker licenses will be on “provisional” status. This means that if you activate your provisional broker license, you must still be supervised by a broker-in-charge. Also, you will have two years to complete a Broker Transition Course or demonstrate a certain amount of real estate experience by April 1, 2008 to terminate the “provisional” status and retain the right to activate your license by merely taking four continuing education courses.
• The Broker Transition Course will be offered throughout North Carolina after April 1. It will consist of 24 hours of classroom instruction, HAVE NO END-OF-COURSE EXAM, and count as your continuing education elective course for the license year in which you take it. The course will NOT be available by distance education (i.e. online, by correspondence, etc.). Recognizing it may be difficult for nonresidents to take the Broker Transition Course in North Carolina, you have this option — you may instead take courses approved by the licensing agency in another state (postlicensing, broker prelicensing, or continuing education) which together total at least 24 classroom hours. You may obtain credit for postlicensing and broker prelicensing courses completed within three years prior to your seeking credit for them. Continuing education courses must have been completed between April 1, 2006 and March 31, 2008 and must be in addition to any course(s) required to satisfy your state’s continuing education requirement. Beginning in April, you may access our website atwww.ncrec.state.nc.us for instructions on how to report your education taken in another state.
• You can skip the Broker Transition Course if/when you certify to us you have acquired at least four years full-time (or equivalent part-time) experience as a real estate broker and/or salesperson within the previous six years. “Full-time” means at least 40 hours per week. “Experience” includes any activity requiring a real estate license (listing, sales, property management, etc.). Beginning in April, you may access our website at www.ncrec.state.nc.us for instructions on how to certify your real estate experience.
• We will remove your license from “provisional” status when you either □ complete the Broker Transition Course, or □ complete equivalent courses in another state, or □ certify you possess the required real estate experience, or □ certify you have obtained a broker license in another state. But if you have not done so by April 1, 2008, you must then complete 90 classroom hours of education to remove the “provisional” status and activate your license. Because your license was issued before October 1, 2005, you can keep it on inactive status indefinitely so long as you renew it each year.
Nonresident Salespersons with Inactive Licenses Issued on or After October 1, 2005
• The Real Estate License Law was recently amended to help improve professional standards within the real estate industry. Under the revised law, your inactive salesperson license will be converted to an inactive broker license on April 1. However, you should be aware that salesperson licenses converted to broker licenses will be issued on “provisional” status. This means that if you activate your provisional broker license, you must still be supervised by a broker-in-charge. Also, to avoid cancellation of your license, you must complete three postlicensing real estate courses (at least one per year) by April 1, 2009.
• The three Commission-approved postlicensing courses will be offered by schools throughout North Carolina after April 1 and each will consist of at least 30 hours of classroom instruction (including a course exam). You may take them in any order. The courses will NOT be available by distance education (i.e. online, by correspondence, etc.). If you wish to activate your license after April 1, 2007, you must have completed at least one course, and after April 1, 2008, at least two courses (in addition to your required continuing education). If you have not completed the three postlicensing courses by April 1, 2009, your license will be cancelled and you must reapply if you wish to have it reinstated (which may require taking our license examination and/or meeting other requirements, depending on your particular circumstances).
• Recognizing it may be difficult for nonresidents to take the broker postlicensing courses in North Carolina, you have this option — you may instead each year take at least 30 classroom hours of education (postlicensing, broker prelicensing or continuing education) approved by the licensing agency in your resident state. To receive credit, salesperson postlicensing and broker prelicensing courses must have been completed within three years prior to your seeking credit for them. Continuing education courses must have been completed during the same one-year period in which you are seeking credit and must be in addition to any courses required to satisfy your state’s continuing education requirement. Beginning in April, you may access our website at www.ncrec.state.nc.us for instructions on how to report your education taken in another state.
• We will remove your license from “provisional” status when you either □ complete our three postlicensing courses, or □ complete equivalent courses in another state, or □ certify you have obtained a broker license in another state.
This article came from the March 2006-Vol36-3 edition of the bulletin.
(More available on the Commission’s website, www.ncrec.state.nc.us)
| Q | How much real estate experience do I need to have the “provisional” status removed from my broker license? |
| A | For at least four of the last six years, you must have been engaged on a full-time (or equivalent part-time) basis in activities for which a real estate license is required. |
| Q | I have a real estate salesperson license and work full-time as an assistant for a very busy broker. Can I claim my experience as a “licensed assistant” as qualifying experience? |
| A | Yes, so long as your work included activities for which a real estate license is required. |
| Q | I work as a leasing agent for an apartment complex. I have a real estate salesperson license even though a license is not required for what I do. Can I claim this experience as qualifying experience? |
| A | No, because the work you perform does not require a real estate license. |
| Q | I have a real estate salesperson license and work as an office manager/bookkeeper for a real estate firm. Does this count as qualifying experience? |
| A | No. Working for a real estate firm as an office manager, bookkeeper, secretary or in any other ministerial capacity does not qualify because a real estate license is not required to perform the tasks and duties associated with these positions. |
| Q | If called upon by the Real Estate Commission to verify my experience, what documentation should I have? |
| A | In order of preference, written statements from your current and/or former brokers-in-charge or other firm officials giving the dates of your affiliation with the firm(s) and your activities there; and/or transaction documents from the period for which you are requesting credits; and/or a list of transactions you participated in during this period including dates, types of transactions, the parties and any other agents in the transactions, and your role in them. |
| Q | I have been a broker-in-charge for several years and took the Broker-In-Charge Course within the past five years. Do I have to retake it after April 1, 2006? |
| A | No, unless you have a “break in service” as broker-in-charge. However, you must take the Broker-In-Charge Annual Review Course each year beginning with the July 2006 – June 2007 license period. |
| Q | What is meant by a “break in service”? |
| A | If, at any time, you are NOT designated a broker-in-charge, you have experienced a “break in service”. This would occur if you were replaced as broker-in-charge of a firm or office. Or if you ceased being broker-in-charge of an office and then later began serving as broker-in-charge at another firm or office (i.e., the changes were notsimultaneous). You would also experience a break in service if you fail to renew your license, or your license is made inactive because you did not take the annual Broker-In-Charge Annual Review Course or your continuing education Update Course. These are some examples of when a break in service will occur. If you then wish to be re-designated as a broker-in-charge, you must satisfy the new broker-in-charge education and experience requirements. |
This article came from the March 2006-Vol36-3 edition of the bulletin.
Interactive online forms are being added to the Commission’s website, www.ncrec.state.nc.us by April 1. The first form to be available is the Commission’s Form 2.08 – Notification of Salesperson (Provisional Broker) Supervision/Notification of Broker Affiliation.
This form is used by brokers-in-charge to notify the Commission of salesperson (provisional broker) supervision and of broker affiliation.
At the website, click on Brokers-in-Charge from the choices on the left side of the home page. Then, click on the icon to open the online Notification of Salesperson Supervision(Provisional Broker)/Notification of Broker Affiliation (Form 2.08) form. Complete the form and then click on “Submit”.
The Broker-in-Charge and the salesperson/provisional broker will both receive email confirmations that the form has been sent to the Commission. Once the form has been received and processed by the Commission, a Notice of Record Change will be generated and mailed to the broker-in-charge and licensee.
The paper version of the form will remain available under Licensee Forms on the forms page, and then clicking on “Notification of Salesperson/Provisional Broker supervision” or “Notification of Broker Affiliation” to open the file and print the document.
As noted in the page one article on changes to the license law (continued on pages 6, 7 and 8) an interactive form to certify experience to qualify for a change from “provisional broker” to “broker” will be available for your use on April 1.
More interactive forms will be added in the future.
This article came from the March 2006-Vol36-3 edition of the bulletin.