To recognize excellence in the field of real estate education, the Real Estate Commission will begin presenting the Billie J. Mercer Excellence in Education Award annually to the person selected by the North Carolina Real Estate Educators Association as its “Educator of the Year.”
The award was established in memory of Mrs. Mercer who, as a member and former Chair of the Commission, was dedicated to furthering the education and knowledge of real estate practitioners and persons entering the real estate business.
The trophy, which will be presented at the Association’s spring meeting, will be engraved with the recipient’s name and remain on display in the Commission office.
This article came from the February 2003-Vol33-3 edition of the bulletin.
The license Law permits licensed NC salespersons to obtain a broker license simply by completing a 60-hour broker prelicense course. No additional license examination is required! During the past two years, thousands of salespersons have taken advantage of the opportunity to upgrade their salesperson licenses to broker licenses.
Do all your affiliated agents hold a broker license? If not, perhaps you should carefully consider the advantages of operating an all-broker office.
If you still have salespersons under your supervision, you should encourage them to improve their knowledge and level of competence by taking the broker prelicense course and obtaining their broker licenses. Contact a Commission-approved school in your area today for a schedule of broker course offerings and require your salespersons to upgrade to a broker license as soon as possible. A list of approved schools is available on the Commission’s website at www.ncrec.state.nc.us.
This article came from the February 2003-Vol33-3 edition of the bulletin.
MICHAEL J. BARKOVICH (Jacksonville) – By Consent, the Commission revoked the broker license of Mr. Barkovich effective October 1, 2002. The Commission found that Mr. Barkovich collected more than $3,000 in cash rent payments from a tenant and failed to turn them over to the firm with which he was associated or its broker-in-charge, instead converting the funds to his own use. Mr. Barkovich neither admitted nor denied any misconduct.
RHONDA K. BATCHELOR (Wilmington) – By Consent, the Commission reprimanded Ms. Batchelor effective October 1, 2002. The Commission found that Ms. Batchelor, as a broker, listed a home and failed to disclose material facts personally known by her about the home, i.e., that it had been clad in synthetic stucco and had suffered fire damage.
BDSC PROPERTY MANAGEMENT, INC. (Calabash) – By Consent, the Commission revoked the firm license of BDSC Property Management effective December 1, 2002. The Commission found that BDSC Property Management failed to retain and maintain certain transaction and trust account records.
LEONARD R. BEAVER (Kannapolis) – By Consent, the Commission suspended the broker license of Mr. Beaver effective April 1, 2001 for a period of one year. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Beaver, as principal broker and broker-in-charge for a real estate firm, allowed the firm to engage in general contracting without first obtaining the necessary license from the North Carolina Licensing Board for General Contractors.
CAROLYN A. BERRY (Sapphire) – By Consent, the Commission reprimanded Ms. Berry effective September 12, 2002. The Commission found that Ms. Berry, when notarizing an application for a real estate license, recited that the applicant had appeared before her when, in fact, the applicant had not. Her notary public commission was subsequently canceled due to this improper notarization.
WILLIAM E. BLACK (Durham) – The Commission revoked the broker license of Mr. Black effective October 28, 2002. The Commission found that Mr. Black, as principal broker and broker-in-charge of a property management firm, failed to keep certain clients informed, failed to account for or remit certain moneys coming into his possession within a reasonable amount of time, failed to properly maintain and deposit in trust all money he received and failed to safeguard client funds in his possession.
HERBERT G. CAHOONE (Hampstead) – By Consent, the Commission reprimanded Mr. Cahoone effective October 1, 2002. The Commission found that Mr. Cahoone, as broker-in-charge of his own sole proprietorship, continued to market a subdivision and act as the seller’s agent for lots in a residential subdivision for more than a year after the expiration of the written listing agreement with the seller.
JOHN M. CAMPBELL (Asheville) – By Consent, the Commission revoked the broker license of Mr. Campbell effective January 1, 2002. The Commission found that Mr. Campbell failed to disclose prior criminal convictions on his application for a salesperson license as well as his application for a broker license. The Commission further ordered that Mr. Campbell’s subsequent application for a salesperson be granted on certain conditions.
CAROLINA PIEDMONT REALTY, INC. (Clemmons) – By Consent, the Commission revoked the firm license of Carolina Piedmont Realty effective December 15, 2002. The Commission found that Carolina Piedmont Realty failed to maintain the funds of others in a trust account and failed to promptly account for and remit those funds.
JANEISE B. COLLINS (Hampstead) – By Consent, the Commission suspended the salesperson license of Ms. Collins for a period of one year effective October 1, 2002. Three months of the suspension were active, with the remainder stayed for a probationary term. The Commission found that Ms. Collins continued to show properties after listing agreements were no longer in effect and misrepresented her agency relationship to the two owners of the properties.
DANIEL P. COUNCELL (Asheville) – The Commission revoked the broker license of Mr. Councell effective October 9, 2002. The Commission found that Mr. Councell, as principal broker and broker-in-charge of a real estate firm, failed to obtain signed lease agreements from tenants for rental units he contracted to manage and charged commissions on uncollected rent not authorized by his property management agreement. The Commission also found that Mr. Councell failed to account for the funds of others in his possession, to properly maintain and retain records relating to trust accounts and to produce trust account and transaction records requested by the Commission’s auditor.
LOU ANN EARNHARDT (Statesville) – By Consent, the Commission reprimanded Ms. Earnhardt effective June 2, 2002. The Commission found that Ms. Earnhardt failed to obtain earnest money as required by the contract and gave the buyers conflicting information concerning the validity of their contract. The Commission also found that Ms. Earnhardt was unable to produce agency disclosure documentation for a transaction in which she acted as a seller’s subagent.
KAREN R. ETHERIDGE (Kitty Hawk) – By Consent, the Commission suspended the salesperson license of Ms. Etheridge effective July 1, 2001 for a period of 30 days. The Commission then stayed the suspension on certain conditions. The Commission found that Ms. Etheridge, as a listing agent, did not disclose to buyers that a neighbor claimed ownership of the private road accessing the listed property. The Commission also found that Ms. Etheridge’s listing contract had expired.
L. DAVID GARDNER (Cary) – By Consent, the Commission revoked the salesperson license of Mr. Gardner effective December 1, 2002. Upon satisfaction of certain conditions, Mr. Gardner is eligible to seek and obtain the reinstatement of his license. The Commission found that Mr. Gardner failed to disclose various criminal convictions on his license application.
GEORGE W. GOSS (Durham) – By Consent, the Commission suspended the broker license of Mr. Goss effective January 1, 2001 for a period of 30 days. The Commission found that Mr. Goss, as broker-in-charge, allowed a salesperson to practice with an inactive license and failed to maintain trust account records as required by Commission rules.
GUY M. GREER (Charlotte) – By Consent, the Commission reprimanded Mr. Greer effective January 16, 2003. The Commission found that Mr. Greer, in various license applications between 1989 and 2000, failed to disclose a 1977 misdemeanor conviction. The Commission noted the Mr. Greer cooperated in the investigation.
JUANITA P. HILDENBRAND (Charlotte) – By Consent, the Commission suspended the salesperson license of Ms. Hildenbrand for a period of 30 days effective January 16, 2003. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Hildenbrand, in listing a property, relied on tax records instead of measuring and overstated the actual square footage. The Commission also found that Ms. Hildenbrand, in a related transaction, failed to provide the seller with written disclosure when presenting an offer that she represented the buyer.
SHEILA R. HOLDEN (Supply) – By Consent, the Commission revoked the salesperson license of Ms. Holden effective December 1, 2002. Upon satisfaction of certain conditions, Ms. Holden is eligible to seek and obtain the reinstatement of her license. The Commission found that Ms. Holden had failed to disclose certain misdemeanor convictions in her salesperson and broker license applications.
CHARLES L. HOLLOWAY (Franklinton) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Holloway effective September 12, 2002. The Commission dismissed without prejudice allegations that Mr. Holloway violated provisions of the Real Estate License Law and Commission rules. Mr. Holloway neither admitted nor denied misconduct.
MICHAEL D. HUMBLE (Fayetteville) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Humble effective December 16, 2002. The Commission dismissed without prejudice allegations that Mr. Humble violated provisions of the Real Estate License Law and Commission rules. Mr. Humble neither admitted nor denied misconduct.
CHARLES T. KELLY (Morehead City) – By Consent, the Commission revoked the broker license of Mr. Kelly effective October 1, 2002. The Commission found that Mr. Kelly, as secretary-treasurer of a homeowner’s association, misappropriated in excess of $100,000 in funds for his own use and to fund his own real estate company. The Commission also found that Mr. Kelly, as Broker-in-Charge of his own firm, did not fully comply with Commission record-keeping requirements relating to identifying the purpose of deposits and disbursements on ledgers and in the journal and the parties to a sales transaction. The Commission noted that Mr. Kelly replaced the misappropriated funds.
EARL C. KELLY (Roxboro) – By Consent, the Commission suspended the broker license of Mr. Kelly for a period of 90 days effective December 16, 2002. One month of the suspension was active, with the remainder stayed for a probationary term. The Commission found that Mr. Kelly, as the listing agent for two residential properties, was aware that the builder of the properties was not a licensed general contractor, but did not disclose this fact to the buyers.
MARTIN E. KIMSEY (Highlands) – By Consent, the Commission suspended the broker license of Mr. Kimsey effective June 10, 2002 for a period of 90 days. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Kimsey, as a principal and broker-in-charge of a real estate firm, failed to properly supervise an employee’s handling of trust account funds and to properly account for trust money in the firm’s possession. The Commission noted that Mr. Kimsey cooperated with the Commission’s inquiry and corrected the record-keeping deficiencies.
DAVID M. KIRBY (Charlotte) – By Consent, the Commission revoked the broker license of Mr. Kirby effective September 15, 2002. The Commission further ordered that Mr. Kirby is permanently barred from applying for reinstatement of his broker license, but may apply for reinstatement of his salesperson license under certain conditions. The Commission found that Mr. Kirby approved payment of compensation for brokerage referral services to an unlicensed person.
LEONARD BEAVER REALTY AND CONSTRUCTION, INC. (Kannapolis) – By Consent, the Commission suspended the firm license of Leonard Beaver Realty and Construction effective April 1, 2001 for a period of one year. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Leonard Beaver Realty engaged in the practice of general contracting without first obtaining the necessary license from the North Carolina Licensing Board for General Contractors.
NANCY LIN ( Cary) – By Consent, the Commission reprimanded Ms. Lin effective March 22, 2001. The Commission found that Ms. Lin acted as a buyer agent without a written agreement.
ANN LOCKLEAR (Fayetteville) – By Consent, the Commission suspended the broker license of Ms. Locklear effective December 1, 2002 for a period of two years. One month of the suspension was active with the remainder stayed for a probationary period of five years. The Commission found that Ms. Locklear failed to report convictions for writing worthless checks.
LYNN SPAIN PROPERTIES (Nashville) – The Commission accepted the voluntary surrender of the firm license of Lynn Spain Properties for a period of two years effective February 1, 2003. The Commission dismissed without prejudice allegations that Lynn Spain Properties violated provisions of the Real Estate License Law and Commission rules. Lynn Spain Properties neither admitted nor denied misconduct.
CAROLYN J. MARTIN (Ahoskie) – By Consent, the Commission reprimanded Ms. Martin effective June 10, 2002. The Commission found that Ms. Martin failed to adequately supervise an unlicensed bookkeeper in the proper maintenance of Ms. Martin’s accounts, resulting in embezzlement and a fund shortfall. The Commission noted that Ms. Martin replaced the missing funds, corrected the trust account bookkeeping and prosecuted the bookkeeper for the misuse of funds.
MASTERS REALTY INC., t/a RE/MAX MASTERS REALTY (Morehead City) – The Commission accepted the permanent voluntary surrender of the firm license of Masters Realty effective October 1, 2002. The Commission dismissed without prejudice allegations that Masters Realty violated provisions of the Real Estate License Law and Commission rules. Masters Realty neither admitted nor denied misconduct.
GARLAND G. MCCOY (Bolivia) – By Consent, the Commission suspended the broker license of Ms. McCoy (now known as Ernestine G. Gossett) for a period of two years effective December 1, 2002. The Commission further ordered that the suspension will be stayed on December 1, 2003 for a probationary period of one year on certain conditions. The Commission found that Ms. McCoy failed to retain and maintain certain transaction and trust account records.
MCR PROPERTIES, INC. (Charlotte) – By Consent, the Commission reprimanded MCR Properties effective January 16, 2003. The Commission found that MCR, on its original and reinstatement license application, failed to disclose a misdemeanor conviction of its principal shareholder.
WANCHAI PANASETHANED (Greensboro) – By Consent, the Commission suspended the broker license of Mr. Panasethaned effective June 10, 2002 for a period of two years. The Commission then stayed the suspension for a probationary period through April 30, 2005. The Commission found that Mr. Panasethaned acted as a buyer agent without a written agreement and without providing written non-discrimination disclosures, did not maintain proper records of an earnest money deposit and delayed in refunding earnest money after all parties to a transaction had agreed to do so.
KENNETH R. PARKER (Wilmington) – The Commission ordered the revocation of the broker license of Mr. Parker effective February 1, 2003. The Commission found that Mr. Parker acted as a buyer agent and a listing agent without written agreements, failed to provide written disclosure of agency duties and relationships at first substantial contact, improperly prepared and used a dual agency agreement, made misrepresentations relating to the use of the Residential Property Disclosure Statement and customer access to and alterations of the seller’s property, failed to disclose to the seller denial of financing to the buyer and involuntary committal of the buyer, altered a contract to purchase without knowledge of the parties, and returned a disputed earnest money deposit to a buyer without consent of the seller or a court order. On appeal, the Superior Court of New Hanover County affirmed the order of the Commission to revoke the broker license of Mr. Parker.
CURTIS R. POLLY (Brevard) – By Consent, the Commission suspended the salesperson license of Mr. Polly effective October 1, 2002. Three months of the suspension were active with the remainder stayed for a probationary term of 12 months. The Commission found that Mr. Polly, in his salesperson license application, omitted required information including several criminal convictions from the State of Florida. The Commission noted that Mr. Polly, in a subsequent application for a broker license, disclosed his entire criminal history.
SCOTT K. ROOTH (Sapphire) – By Consent, the Commission suspended the broker license of Mr. Rooth for a period of 30 days effective March 1, 2003 and imposed a probationary period of one year effective March 31, 2003. The Commission found that Mr. Rooth, as the owner of a real estate firm, failed to supervise the broker-in-charge to ensure books and records were maintained according to Commission rules. The Commission noted that no client monies were placed in jeopardy.
WILLIAM C. SAPP, JR. (Monroe) – By Consent, the Commission suspended the salesperson license of Mr. Sapp for a period of 90 days effective November 1, 2002. The Commission found that Mr. Sapp, while on inactive status due to failure to complete continuing education courses, engaged in a real estate sales transaction by falsely using the name of another licensee.
RONALD J. SHANNON (Long Beach) – The Commission accepted the voluntary surrender of the broker license of Mr. Shannon for a period of one year effective December 1, 2002. The Commission dismissed without prejudice allegations that Mr. Shannon violated provisions of the Real Estate License Law and Commission rules. Mr. Shannon neither admitted nor denied misconduct.
SHANNON’S SERVICES, INC. (Long Beach) – The Commission accepted the voluntary surrender of the firm license of Shannon’s Services for a period of one year effective December 1, 2002. The Commission dismissed without prejudice allegations that Shannon’s Services violated provisions of the Real Estate License Law and Commission rules. Shannon’s Services neither admitted nor denied misconduct.
JOHN R. SNOW (Cary) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Snow effective October 16, 2002. The Commission dismissed without prejudice allegations that Mr. Snow violated provisions of the Real Estate License Law and Commission rules. Mr. Snow neither admitted nor denied misconduct.
LYNN M. SPAIN (Zebulon) – The Commission accepted the voluntary surrender of the broker license of Ms. Spain for a period of two years effective February 1, 2003. The Commission dismissed without prejudice allegations that Ms. Spain violated provisions of the Real Estate License Law and Commission rules. Ms. Spain neither admitted nor denied misconduct.
NANCY C. STREETMAN (Greensboro) – By Consent, the Commission suspended the salesperson license of Ms. Streetman effective December 1, 2002 for a period of 60 days. One month of the suspension was active with the remainder stayed for a probationary period of eleven months. The Commission found that Ms. Streetman represented a buyer without a written agreement and without providing adequate agency disclosure as required by Commission rules. The Commission also found that Ms. Streetman left one firm and joined another and instructed parties to terminate a pending contract and enter a new one showing her new firm as the agent in the transaction. The Commission noted that Ms. Streetman has since resolved her differences with her former firm.
LYNNE G. TAYLOR (Mebane) – By Consent, the Commission suspended the broker license of Ms. Taylor for a period of 24 months effective December 1, 2002. The Commission found that Ms. Taylor engaged in the real estate business and received payment for services during times when her license had expired or was on inactive status. The Commission also found that Ms. Taylor failed to deposit and maintain earnest money in a trust account. Ms. Taylor neither admitted nor denied any misconduct.
MARY H. TEMPLETON (Clemmons) – By Consent, the Commission revoked the broker license of Ms. Templeton effective December 15, 2002. The Commission found that Ms. Templeton, as principal broker and broker-in-charge of a real estate firm, failed to maintain the funds of others in a trust account and failed to promptly account for and remit those funds.
THE PROPERTY MARKETPLACE, INC. (Durham) – The Commission revoked the firm license of The Property Marketplace effective October 28, 2002. The Commission found that The Property Marketplace, a property management firm, failed to keep certain clients informed, failed to account for or remit certain moneys coming into its possession within a reasonable amount of time, failed to properly maintain and deposit in trust all money it received as a licensee and failed to safeguard client funds in its possession.
CHARLENE S. TRULL (Maggie Valley) – By Consent, the Commission suspended the salesperson license of Ms. Trull for a period of 90 days effective October 1, 2002. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Trull, with little or no experience in the sale of commercial properties, used the Standard Form Offer to Purchase and Contract, designed primarily for single-family residential sales, rather than advising the drafting of an appropriate commercial contract by an attorney, and did not advise her buyer-clients to obtain specialized inspections, including those for a swimming pool, found after closing to have a damaged plumbing system, and termite damage, found after closing to be extensive.
THERESA E. WITHERS (Hickory) – By Consent, the Commission revoked the broker license of Ms. Withers effective March 21, 2001. The Commission found that Ms. Withers signed her ex-husband’s name on a deed to convey property, applied a notary seal without the knowledge or consent of its owner and caused the document to be recorded with the local Register of Deeds. The Commission further ordered that Ms. Withers’ subsequent application for reinstatement of her salesperson license be granted on certain conditions.
WNH REALTY, INC. (Pinehurst) – The Commission accepted the voluntary surrender of the firm license of WNH Realty for a period of one year effective September 1, 2002. The Commission dismissed without prejudice allegations that WNH violated provisions of the Real Estate License Law and Commission rules. WNH neither admitted nor denied misconduct.
This article came from the February 2003-Vol33-3 edition of the bulletin.
By Gary R. Caddell, Senior Auditor/Investigator, Training Officer
The Spring 2003 Trust Account Caravan is scheduled for March 18 through April 30 with seven stops in Asheville, Boone, Fayetteville, Greensboro, Huntersville, Kill Devil Hills, and Wilmington.
To register, go the Commission’s website, www.ncrec.state.nc.us, or use the form with dates and locations on page 10. Class size is limited to 40 participants and early registration is advised.
The “Basic Trust Account Procedures” course is updated to include rule changes that went into effect September 1, 2002. While this course is intended for brokers-in-charge and trust account bookkeepers, all licensees may attend. The course provides instruction in the preparation of trust account records and the reconciliation process. Related topics include the proper handling of owner/broker trust funds and the Tenant Security Deposit Act.
The “Trust Account Procedures for Resort Property Managers” course covers issues specific to resort property management, such as the Vacation Rental Act and sales taxes. This course is updated to reflect recent rule changes. The course is offered only during the Spring Caravan. Because this course focuses on issues specific to resort property management, the Commission strongly recommends that you attend the Basic course prior to taking the Resort Property Managers course.
Both courses were developed and are taught by members of the Commission’s Audits & Investigations Division. Each course counts as four hours of elective continuing education credit.
For the third year in a row, the Real Estate Commission’s Trust Account Caravan set a record for the number of attendees. A total of 593 course attendees participated in the Spring 2002 Trust Account Caravan, compared with 570 in 2001, 505 in 2000 and 291 in 1999.
The Spring 2002 Trust Account Caravan made stops in Asheville, Boone, Charlotte, Fayetteville, Greensboro, Kill Devil Hills, Morehead City and Wilmington. Eleven “Basic Trust Account Procedures” courses and five “Trust Account Procedures for Resort Property Managers” courses were offered.
Held annually, the Caravan was instituted by the Commission in 1982 to provide courses to those who cannot attend one of the monthly courses held in Raleigh. [Note: For registration information, please refer to page 3 of thisBulletin.]
This article came from the October 2002-Vol33-2 edition of the bulletin.
Brush up next February on what you should know about selling coastal real estate with the 2003 Coastal Workshops sponsored by the Commission in conjunction with UNC-Sea Grant and the Division of Coastal Management.
The series will consist of workshops at Wrightsville Beach, Holiday Inn Sun Spree Resort, February 10, 1-5 p.m. and February 11, 9 a.m-1p.m.; Nags Head, Ramada Inn Outer Banks Resort, February 20, 9 a.m.-1p.m., and Sheraton Atlantic Beach, February 21, 9 a.m.-1p.m.
Registration for the Workshop of your choice can be made online at the Commission website, www.ncrec.state.nc.us, or by mailing the form below with your check payable to the NC Real Estate Commission for the registration fee of $45 per person.
Recognized experts will discuss a variety of topics including erosion rates and control, construction standards, and disclosure requirements for real estate agents as well as identify sources for additional information on buying and selling coastal real estate.
Each workshop is limited to 125 persons, so registration will be on a first come-first served basis. Real estate licensees will receive four hours’ continuing education elective course credit for attending.
This article came from the October 2002-Vol33-2 edition of the bulletin.
Each year, the Real Estate Commission reviews what it has done during the 12-month period from May 1 to April 30. And each year, the result is an impressive array of statistics that together speak to the breadth and complexity of its role in working with the North Carolina real estate industry.
Here’s a sampling of Commission activity from May 1, 2001 to April 30, 2002:
Contact
• 225,000 telephone calls (a 42% increase over the previous period)
• 100,000 website “hits” (a 15% increase)
Publications
• 816,000 publications distributed to licensees, consumers, applicants (a 33% increase)
Technology
Made more effective use of technology by:
• Imaging 102,817 records
• Renewing 12,000 licenses online
• Re-designing Commission website
Employment
• 86 applications for employment received
• 20 applicant interviewed
• 8 positions filled
Licensing
• 113,000 license record changes
• 8,126 applications processed for licenses by examination
• 6,598 license examinations administered (94% by computer)
• 4,007 licenses by examination issued
• 3,360 broker licenses issued without examination
• 255 licenses issued by reciprocity
• 704 firm licenses issued
• 182 expired licenses reinstated
• 71 license applicant conferences conducted
• 8 new and 41 renewed private real estate school licenses
Education
• 61 pre-licensing instructors issued regular or temporary approvals
• 66 new continuing education elective courses approved (for a total of 331 courses)
• 26 new continuing education sponsors (for a total of 187)
• 53 Broker-in-Charge Course sessions conducted for 3,554 licensees (a 142% increase)
• revised and published Real Estate Manual (2002-2003 Edition)
Audits/Investigations
• 108 case investigations completed
• 63 trust accounts examined
• 414 persons interviewed
• 28 trust account courses conducted for 963 students
• 74 “spot inspections” performed on 126 different trust accounts
• 20 trust account software programs re-evaluated
Legal
• 854 case (complaint) files opened and 855 closed
• 24 licensees reprimanded
• 24 licenses suspended
• 15 licenses revoked
• 13 licenses surrendered
• 34 cases utilized conditional remedies
• 2 Recovery Fund hearings conducted
• 20 license application hearings held (a 67% increase)
This article came from the October 2002-Vol33-2 edition of the bulletin.
(With permission, portions of this article were written based upon an article appearing in the General Counsel Quarterly, a publication of the North Carolina Association of REALTORS®, Volume VI, Issue One, Summer 2002.)
Have you noticed a change in some of the standard contract forms you are using in your residential sales transactions? The Joint Forms Committee of the North Carolina Association of REALTORS® and the North Carolina Bar Association made several revisions to the standard Offer to Purchase and Contract and related forms.
Offer to Purchase and Contract – the contract now allows the buyer to ask that the seller pay a stated amount toward “any of the Buyer’s expenses associated with the purchase of the Property” (¶8), rather than paying money toward the buyer’s closing costs. This change is designed to eliminate disputes over what constitutes a “closing cost.” Conforming changes have also been made to the FHA/VA Financing Addendum which now specifically provides that the amount paid by the seller includes FHA/VA seller mandated lender and inspection costs.
The contract also now requires that the seller deliver marketable and insurable title to the buyer (¶5(e)). In addition, the contract authorizes the Seller’s current and prior closing attorney, and the Property’s title insurer, to release and disclose title documents to the buyer, agents and attorneys.
Finally, references to an inspection addendum were removed from the Inspections provision (¶12), since no such addendum exists.
Contingent Sale Addendum – the Addendum has been changed to require a buyer who waives the contingency to then close on the purchase of the seller’s property by a specified date. It is designed to assure that buyers waive the contingency only if they are in fact prepared to proceed in a timely manner with the purchase of the seller’s property.
In addition, the “time is of the essence” provision has been expanded to expressly include the closing date.
Additional Provisions Addendum – the provision concerning a Septic System Improvements Permit has been renamed “Sewer System.” It now provides that the contract is contingent upon the buyer obtaining a permit from the County for either a conventional or otherwise described sewer system. All costs are borne by the buyer, except that the seller must pay for clearing as much of the property as the County requires. A deadline must be inserted by which the test is to be performed. The buyer is required to use “best efforts” to obtain the permit and the buyer must notify the seller by a stated deadline if he cannot get the permit, “time being of the essence” – otherwise the condition is deemed satisfied.
In addition, the Appraisal provision was separated into two pieces – one addressing Appraisal with Financing Contingency and one addressing Appraisal Without Financing Contingency.
As to the Flood Hazard Zone provision, it now provides that it “may be” necessary for the purchaser to purchase flood hazard insurance rather than it “will be” necessary.
Other Jointly Approved Forms – minor changes were made to both the Owner Association Addendum and the Option to Purchase. Some of these were made in order to accommodate the use of both forms with the newVacant Land Offer to Purchase and Contract. Others were more technical in nature.
Changes to All Forms – in addition to the substantive changes, all forms are now available in an 8½ x 11 format. Each contains a new disclaimer immediately preceding the signature lines stating that the Bar Association and the Association of REALTORS® “make no representation as to the legal validity or adequacy of any provision of this form in any specific transaction.”
CAVEAT: The Commission’s Update Course this year includes coverage of the Offer to Purchase and Contract and related addenda. Many of the changes noted here also will be addressed in that course.
This article came from the October 2002-Vol33-2 edition of the bulletin.
The Real Estate Commission has approved a recommendation from its Interstate Brokerage Cooperation Advisory Committee (See Bulletin Volume 32, No. 4) to support legislation to create a “Limited Nonresident Commercial Real Estate License.” As proposed, real estate brokers and salespersons licensed in other states could obtain the license from the Commission without having to pass the North Carolina licensing examination.
The license would allow them to perform real estate brokerage acts in North Carolina only in connection with commercial real estate transactions and only while affiliated with a resident North Carolina real estate broker. The nonresident commercial licensee and the resident North Carolina broker would also be required to enter into a “Brokerage Cooperation Agreement” which, among other things, mandates that the North Carolina broker actively and personally supervise the nonresident commercial licensee.
It is anticipated that legislation authorizing the issuance of the special licenses will be considered by the North Carolina General Assembly during its 2003 Session and that, if enacted, it will facilitate and promote commercial and industrial real estate development and investment in our state.
The Commission thanked again the members of its advisory committee and real estate attorney and commercial broker Garth K. Dunklin who joined the committee at its August 7 meeting.
[The Interstate Brokerage Cooperation Advisory Committee’s reports can be found on the Real Estate Commission’s website www.ncrec.state.nc.us. Go to Site Map, then Reports]
This article came from the October 2002-Vol33-2 edition of the bulletin.
Rule A.0113 requires any licensee who is convicted of a misdemeanor or felony or who has disciplinary action taken against him or her by any other professional licensing board to file a report with the Real Estate Commission.
The reporting requirement includes convictions for driving while impaired (“DWI”). The report must be filed within sixty (60) days of the final judgment or board action.
If you have questions about this rule, please call the Commission’s legal division at 919-875-3700 for more information.
This article came from the October 2002-Vol33-2 edition of the bulletin.
Beginning January 1, applicants for North Carolina real estate licenses will be required to include with their license applications a report listing any criminal convictions or charges pending against them or stating they have no convictions or pending charges.
To assist license applicants in obtaining the reports, the new license application form lists the name and contact information for firms which prepare them. Generally, reports can be obtained within two or three days after ordering them and cost around $10; however, an additional fee and time may be required if the applicant has resided in another state within the past reporting period.
According to Commission Chairman Allan Dameron, “The new reporting requirement will better assure that persons entering the real estate business possess the character expected of real estate brokers and salespersons in our State.”
This article came from the October 2002-Vol33-2 edition of the bulletin.