Bulletin Search
BICs, did you know?
The monthly eBulletin is intended to be a valuable and timely resource for all NC real estate licensees.
As a BIC, you can use some of the articles/videos during your office trainings to ensure brokers adhere to law and rule changes, competently practice brokerage to prevent disciplinary issues, and participate in educational opportunities. The eBulletin is considered by Regulatory Affairs as a valuable resource and an educational tool.
Help! How do I reinstate my Instructor Approval?
Did you forget to renew your instructor approval before June 30, 2024? Do you plan to teach Prelicensing, Postlicensing, or the Update course for a certified Education Provider?
If so, you must have an “active” instructor approval. Therefore, in order for the Commission to reinstate your instructor approval that has been expired for less than six months, you must submit the renewal application per Rule 58H .0306(b).
Prior to submitting an electronic application for renewal of approval, as an instructor, you must have completed six hours of an instructor educational program. If you have not yet completed this required education, please view our Guidelines for Instructional Educational Requirement (Form REC 3.78) for a list of options to satisfy this requirement. Once you have completed the required education, you will then need to log in to the Instructor Dashboard to access the renewal application.
Pursuant to subsection(c) of Rule 58A .0306, if an instructor approval has been expired for more than six months, the former instructor shall file an application for original approval pursuant to Rule 58H .0302.
If you have any questions regarding reinstating your instructor approval, please visit the Commission’s website.
Staff Appearances
Miriam Baer, Executive Director, spoke at NC REALTORS Risk Management Committee Meeting on June 3.
Minerva Mims, Diversity, Equity, and Inclusion (DEI) Officer, spoke at Raleigh Regional Association of REALTORS® on June 20.
Bruce Rinne, Information Officer, spoke at Carolina Smokies Association of REALTORS®, Inc. on June 20.
Leslie Schwartz, Information Officer, spoke at Goldsboro Association of REALTORS® on June 20.
Bruce Rinne, Information Officer, spoke at 220 Agents on June 27.
Diversity, Equity, and Inclusion
July is Disability Pride Month, a month dedicated to honoring and celebrating the history, experiences, achievements of disabled people. Disability Pride is recognized in the month of July to commemorate the passage of the Americans with Disabilities Act (ADA), a law that prohibits discrimination based on disability, in July 1990.
People with disabilities represent the largest and most diverse minority group, with individuals of various abilities, ages, races, ethnicities, religions, and social-economic backgrounds. According to 2021 data from the Centers for Disease Control and Prevention (CDC), 29% of adults in North Carolina have a disability, and according to the National Fair Housing Alliance’s (NFHA) 2023 Fair Housing Trends Report, over 53% of discrimination complaints are based on disability.
To properly serve consumers with disabilities it is important to understand their needs, recognizing that not all disabilities are created equally, ask questions, adjust your thinking, and do a bit of research. As a real estate professional, you have a legal and ethical obligation to uphold fair housing laws; to do this you must be aware of the applicable laws (ADA and Fair Housing Act) that play a vital role in shaping an equitable and inclusive real estate environment.
By understanding the unique needs and challenges faced by consumers with disabilities and the guiding laws, real estate professionals can provide the necessary support to ensure a positive consumer experience and avoid any potential discrimination claims.
To learn more about Disability Pride Month or other disability related resources refer to the links below:
Americans with Disabilities Act Title III Regulations | ADA.gov
Better Service for Clients With Disabilities (nar.realtor)
Disability & Health U.S. State Profile Data: North Carolina | CDC
Fair Housing Project — A Project of Legal Aid of North Carolina (fairhousingnc.org)
Housing for People with Disabilities & Their Families | The Arc
Housing Rights – DRNC (disabilityrightsnc.org)
Tech Corner: How do I translate the Commission’s website and Forms
Is English a second language for your clients or a consumer? Did you know that the Commission’s website can be translated into multiple languages?
Link: https://share.synthesia.io/25d69e92-4f29-4e59-91ed-c35377085508
Reactivating after CE Deficiency
Link: https://share.synthesia.io/b92c0c13-28f7-4684-8f75-c9db29e84bd1
Do you need to reactive your real estate license?
The 2024-2025 Update Course is here!
The Commission’s GENUP-General Update and BICUP-Broker-in-Charge Update courses for 2024-2025 are available beginning on July 1, 2024, for all licensees.
The 2024-2025 GENUP course topics are:
- Environmental Material Facts,
- NCREC Frequently Asked Questions,
- Permits,
- Education Update, and
- Law and Rules Update.
The 2024-2025 BICUP course topics are:
- Environmental Material Facts,
- NCREC Frequently Asked Questions,
- Permits,
- Education Update,
- Law and Rules Update, and
- BIC Responsibility and Supervision.
A statewide continuing education course schedule is provided on the Commission’s website (www.ncrec.gov) under the Education menu. Licensees may search for courses by:
- Education Provider,
- Instructor,
- CE Course title,
- City,
- County,
- Course Date, and
- Course delivery method.
Licensees may take the Update course anytime between July 1, 2024 – June 10, 2025. However, the Commission encourages licensees to take the course as early as possible during the license year, to stay up-to-date on law and rule changes.
Per Commission Rule 58A .1702, a licensee must take eight (8) hours of continuing education (CE) each year to maintain an active license, as follows:
- Provisional Brokers and non-BIC/non-BIC-Eligible Brokers must take the General Update course and one Commission-approved elective.
- BICs and BIC-Eligible Brokers must take the BICUP (Broker-in-Charge Update) course and one Commission-approved elective to retain their BIC/BIC-Eligible status.
NOTE: A broker with BIC-Eligible status who takes the General Update course, and an elective will maintain an active license but will lose their BIC/BIC-Eligible status.
If you have questions about the CE requirement, please visit the Commission’s website.
My license is expired! How do I reinstate it?
To maintain a current license, brokers must renew their license annually between May 15 and June 30. The license of a broker who fails to renew during that period will expire on June 30, and that broker must cease all brokerage activities immediately.
What steps must a broker take to reinstate an expired license? That answer depends on how long the license has been expired.
To reinstate a license expired for less than 6 months:
- Go to the Commission’s homepage (www.ncrec.gov);
- Click on Reinstate your License;
- Enter your license number and PIN (last 4 of your SSN unless you have changed it);
- Answer required questions; and
- Pay the $90 reinstatement fee.
NOTE: Following expiration, a broker’s license is reinstated on inactive status. To regain active status, brokers must submit a License Activation / Affiliation form (REC 2.08).
To reinstate a license expired for 6 months but no more than 2 years:
- Successfully complete one 30-hour Postlicensing course (course must be completed within 6 months prior to submitting reinstatement application); and
- Submit a reinstatement application with the $90 application fee and all required documentation, including criminal background report;
-OR-
- Submit a reinstatement application with the $90 application fee and all required documentation, including criminal background report; and
- Pass the National and State sections of the license exam.
NOTE: Following expiration, a broker’s license is reinstated on inactive status. To regain active status, brokers must submit a License Activation / Affiliation form (REC 2.08).
To reinstate a license expired for more than 2 years:
- Successfully complete the 75-hour NC Broker Prelicensing course;
- Submit a license application with the $100 original application fee and all required documentation, including criminal background report; and
- Pass the National and State sections of the license exam.
NOTE: You will be licensed as a provisional broker and be subject to the 90-hour Postlicensing education program. To gain active status, you must submit a License Activation / Affiliation form (REC 2.08).
For more information, review Commission Rule 58A .0505 or visit the “Reinstate your License” page on the Commission’s website. You may also contact the Commission’s Education & Licensing Division at ls@ncrec.gov or 919-875-3700.
North Carolina Department of Revenue: Privilege License Tax
N.C.G.S. Section 105-41 required every individual in North Carolina who practiced a profession or engaged in a business to obtain from the North Carolina Department of Revenue (hereafter “NCDOR”) a statewide license for the privilege of practicing a profession or engaging in the business.
However, Session Law 2023-134 repealed this requirement under the General Statutes. Effective July 1, 2024, real estate brokers and other professionals are no longer required to apply to the NCDOR for a privilege license, or renew an existing privilege license, each year beginning July 1, 2024. The last license period will be for the fiscal year, July 1, 2023 to June 30, 2024.
If you would additional information regarding this change, read the Privilege Tax Bulletin published by the North Carolina Department of Revenue.
Case Study: Material Facts
FACTS: A broker listed a seller’s family home for sale. The broker informed the seller about the purpose and requirements of the Residential Property and Owners’ Association Disclosure Statement (RPOADS). Having not lived in the home for several years, the seller had limited knowledge about the property’s condition. The broker clarified that the seller could choose to make no representations regarding the home’s condition without misrepresenting it.
The seller felt overwhelmed by the information requested and decided to make no representations. The listing agent further explained the broker’s duty to disclose any material facts and/or defects and pointed out a few issues the broker noticed during the walk-through. The RPOADS remained unchanged, but the broker did list the discussed defects in the property description. The broker did note several areas of pooling water in the backyard but failed to do any further investigation and made no disclosures.
The property sold quickly in a cash transaction. Several months later, the home flooded during tropical storms. Following the flooding, the new owner learned that the property was located in a federal flood plain. The previous owner did not carry flood insurance and had marked “No Representation” for questions about flooding on the RPOADS. Since the buyer did not use a lender, flood insurance wasn’t required.
ISSUE: Did the listing broker comply with N.C.G.S. §93A-6(a)(1)?
ANALYSIS: No. N.C.G.S. § 93A-6(a)(1) states that the Commission has power to suspend or revoke at any time a license issued under the provisions of this Chapter, or to reprimand or censure any licensee, if following a hearing, the Commission adjudges the licensee to be guilty of making any willful or negligent misrepresentation or any willful or negligent omission of material fact.
A material fact is any fact that could affect a reasonable person’s decision to buy, sell, or lease real property. Therefore, a broker has an affirmative duty to take reasonable steps to discover and disclose material facts to all parties in a transaction. Additionally, brokers are expected to take reasonable steps to discover all pertinent facts that are necessary to serve their clients’ interest. In this case study, the listing broker neglected to investigate the property properly.
The Commission also determines whether or not a broker knew of the existence of a material fact by analyzing documents and reviewing written correspondence. The Commission uses the Reasonableness Standard to evaluate a broker’s duty to discover and disclose material facts. This standard dictates that a broker has a duty to discover and disclose any particular material fact if a reasonably knowledgeable and prudent broker would have discovered the fact during the course of the transaction and while acquiring information about the property.
In this scenario, the listing broker neglected to perform further research on the property to discover that it was in a federal flood zone. The listing broker did not act like a reasonably prudent broker because they failed to gather relevant facts about the property itself. The Commission expects brokers to know or research whether a property they have listed is in a flood zone. Every broker must exercise reasonable care and diligence in discovering and disclosing all material facts to all interested parties in a timely manner in adherence to N.C.G.S. § 93A-6(a)(1).
As a result of this omission and the listing broker’s failure to adhere to N.C.G.S. § 93A-6(a)(1), the listing broker may be subject to disciplinary action by the Commission.
RESOURCES:
N.C.G.S. § 93A-6(a)(1), 93A-6(a)(8), and 93A-6(a)(10)
License Law and Commission Rules: Rule 58A .0114
Articles: 2022-2023 General Update Course