Bulletin Search
Staff Appearances
Bruce Rinne, Information Officer, spoke at Keller Williams Realty in Raleigh on February 7.
Shanna Hardy, Consumer Protection Officer, spoke at Keller Williams Realty Fayetteville on February 8.
Christy Evans, Consumer Protection Officer, spoke at Premier Sotheby’s International Realty on February 13.
Jean Hobbs, Auditor/Investigator, spoke at Bottom Line Property Management on February 27.
Jean Hobbs, Auditor/Investigator, spoke at the NC Property Management Conference on February 29.
Diversity, Equity, and Inclusion: March is Women’s History Month
In 1978, a California school district started a weeklong celebration of women’s contributions to history. This evolved into a month long celebration in 1987 and continues today. In honor of Women’s History Month, the Commission is taking a look at the history of women in real estate.
Although women have historically been involved in real estate since its inception, their roles were limited to administrative ones until the late 1800’s. As women slowly started to move into agent roles, they often found themselves on their own with no support. The National Association of Realtors® (NAR) was founded in 1908, as a resource to support agents. However, during its first few decades, membership was comprised primarily of men as many local boards barred women from membership. To circumvent the bans instituted by local boards, women formed their own real estate organizations, such as the Women’s Council of Realtors® in 1938. This Council assisted women in advancing as professionals and leaders in the field of real estate.
Many women have served on the Commission since its inception in 1957, with the first being Dee McCandlish who was appointed in 1978. Currently, two of the nine Commission members are women: Sandra O’Connor, who has served since 2017, and Jocelyn Mitnaul Mallette, who has served since 2023.
To learn more about Women’s History Month or women’s history in real estate refer to the links below:
Women’s Council History – Women’s Council of Realtors
Disciplinary Actions
BETTY CAROLINA ALVARADO (MONROE) – The Commission accepted the permanent voluntary surrender of the real estate license of Alvarado, effective January 17, 2024. The Commission dismissed without prejudice allegations that Alvarado violated provisions of the Real Estate License Law and Commission Rules. Alvarado neither admitted nor denied misconduct.
CAROLINA TRACE GATED PROPERTIES LLC (SANFORD) – By Consent, the Commission suspended the firm license for a period of 12 months, effective January 1, 2024. The Commission found that firm failed to adequately supervise an affiliated broker allowing him to conduct brokerage services during a period when his license was on active suspension.
JAMIE ELIZABETH CHRISTENSEN (FAIRVIEW) – By Consent, the Commission suspended the broker license of Christensen for a period of 12 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Christensen listed a property for sale in Buncombe County, N.C. As a part of that listing, Christensen hired a vendor to create drawings of the subject property, as well as to its square footage. The vendor noted on the renderings that all measurements are approximate, and that actual measurements may vary. Despite this notice on the face of the drawing regarding its accuracy, Christensen failed to verify the square footage of the subject property prior to listing it on the Multiple Listing Service (MLS).
ELLEN NORA DEESE (THOMASVILLE) – By Consent, the Commission suspended the broker license of Deese for a period of 12 months, effective November 1, 2023, but stayed the suspension after 3 months upon certain conditions. The Commission found that Deese, acting as a buyer’s agent, found an unclothed semiconscious person in a home during a showing and ran out of the home with her buyers but did not contact anyone else until the following morning, when Deese left feedback to the listing agent on the showing site referencing finding a person “drunk” at the residence. The individual was, in fact, the seller who had suffered a medical emergency and was later found by his family, transported to the hospital, and nine days later passed away. Deese neither admitted nor denied misconduct.
BRANDY NICOLE KALISCH (FAYETTEVILLE) – By Consent, the Commission reprimanded Kalisch, effective January 5, 2024. The Commission found that Kalisch failed to fully provide trust account records to a Commission auditor in a timely manner to sufficiently show the proper deposit and disbursement of funds into and from the trust accounts. Respondent provided records for February, March and September 2023 that showed substantial compliance with Commission rules.
DENISE II, INC (FAYETTEVILLE) – By Consent, the Commission reprimanded the firm effective January 5, 2024. The Commission found that the firm failed to fully provide trust account records to a Commission auditor in a timely manner to sufficiently show the proper deposit and disbursement of funds into and from the trust accounts.
VERRENDRA BABU GANNE (CARY) – By Consent, the Commission reprimanded Ganne, effective January 1, 2024. The Commission found that Ganne entered into a property management agreement with the owners of the subject property. The tenants failed to pay rent for a 6-month period. Ganne failed to comply with the terms of the property management agreement to institute eviction proceedings, failed to follow the lawful requests of the client, and failed to properly protect and promote the client’s property.
EASTSIDE REALTY LLC (CARY) – By Consent, the Commission reprimanded the firm, effective January 1, 2024. The Commission found that the firm entered into a property management agreement with the owners of the subject property. The tenants failed to pay rent for a six-month period. The firm failed to comply with the terms of the property management agreement to institute eviction proceedings, failed to follow the lawful requests of the client, and failed to properly protect and promote the client’s property.
BARRY FULTON (SOUTHPORT) – The Commission accepted the voluntary surrender of the real estate license of Fulton, effective December 14, 2023. The Commission dismissed without prejudice allegations that Fulton violated provisions of the Real Estate License Law and Commission Rules. Fulton neither admitted nor denied misconduct.
KENNETH SCOTT HAWKINS (DURHAM) – By Consent, the Commission reprimanded Hawkins, effective January 15, 2024. The Commission found that Hawkins served as the listing agent for a property located in Raleigh, NC. Hawkins failed to properly review the listing agreement for the Subject Property, specifically with respect to ascertaining whether the sellers were current on all outstanding loans and not in default. Due to Hawkin’s failure to properly review the listing agreement, the sellers were unable to convey clear title at the time of closing, leading to the termination of the transaction.
RICHARD ARTHUR HUBBELL LINDAU (ASHEVILLE) – By Consent, the Commission suspended the broker license of Lindau for a period of 6 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Lindau acted as a buyer agent for clients who had made an offer to purchase on a property in Buncombe County, N.C. While the buyers were under contract, and prior to closing, the buyers received an appraisal report which revealed a discrepancy in the property’s square footage compared to what was listed in the Multiple Listing Service (MLS). Lindau failed to verify the square footage of the subject property prior to closing.
COSTELLO REAL ESTATE & INVESTMENTS TRIANGLE LLC (RALEIGH) – By Consent, the Commission suspended the firm license for a period of 6 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that an affiliated broker of the firm routinely failed to adhere to agency requirements, specifically, providing and reviewing the working with Real Estate Agents and Disclose Form or to have a signed Buyer Agency Agreement in place prior to the broker submitting Offers to Purchas and Contract.
JAMES MATTHEW IVEY (RALEIGH) – By Consent, the Commission suspended the broker license of Ivey for a period of 6 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that an affiliated broker under the supervision of Ivey routinely failed to adhere to agency requirements, specifically, providing and reviewing the working with Real Estate Agents and Disclose Form or to have a signed Buyer Agency Agreement in place prior to the broker submitting Offers to Purchas and Contract.
NADIA MANSAR (RALEIGH) – By Consent, the Commission suspended the broker license of Mansar for a period of 12 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Mansar routinely failed to provide and review the Working with Real Estate Agents Disclosure Form or to have a signed Buyer Agency Agreement in place prior to submitting Offers to Purchase and Contract on behalf of clients.
KATHERINE ANNE JONES (JACKSONVILLE) – By Consent, the Commission suspended the broker license of Jones for a period of 9 months, effective December 15, 2023, but stayed the suspension after 1 month upon certain conditions. The Commission found that Jones acted as a co-listing agent for the sale of certain property and advertised said property for sale as having a square footage in excess of that shown by a subsequent listing broker and appraiser. Jones failed to retain calculation documents used to determine square footage.
STEPHANIE DANETTE KING (RALEIGH) – By Consent, the Commission suspended the broker license of King for a period of 12 months, effective January 1, 2024. The Commission found that King represented a buyer and submitted offers for two properties without informing the listing agents. After one offer was accepted, King continued to negotiate on the second property, which was also accepted. King lied to the listing agent for the first property and stated the buyer backed out due to a death in the family. The buyer closed on the second property and was sued by the first seller for the due diligence fee.
DAMION MARK PATTON (MORGANTON) – By Consent, the Commission suspended the broker license of Patton for a period of 12 months, effective January 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Patton represented the buyer of real property in the subject transaction. The fully executed offer to purchase and contract stated that the buyer could order a home warranty not to exceed $650 and the seller would pay for it at closing. Patton failed to order the home warranty and submit the invoice to the closing attorney in order to collect the payment from the sellers at closing.
Check Off Postlicensing Courses From Your To-Do List!
Are you a provisional broker? Do you have to complete Postlicensing (PL) education? Have you determined which delivery method will meet your educational needs?
The Commission encourages you to check your Postlicensing courses off of your to-do list this year!
- Pick a course delivery medium best suited for how you like to learn (e.g., in-person, synchronous such as Zoom, or self-paced distance).
NOTE: If you don’t complete all PL courses within 18 months of initial date of NC licensure, your license will be placed on inactive status until the educational deficiency is cured.
- Click this link to search all scheduled in-person, synchronous, or blended delivery PL courses by Course Name, Type of Delivery, Name of Education Provider or Instructor, City/County, or course dates. Click this link for a list of certified Education Providers who offer self-paced distance PL courses.
- A distance PL course must be completed (including successfully passing the end-of-course exam) within 180 days of course enrollment, Commission Rule 58H .0207(b).
NOTE: Be sure to allow adequate time to schedule and pass the proctored end-of-course exam prior to deadlines in the distance PL courses.
WARNING: Commission rules do not allow for ANY extension of time for ANY reason to complete PL education.
Simplified Continuing Education Hours to Increase Professional Competence
Pursuant to Rule 58A. 1702, North Carolina brokers must complete eight credit hours of real estate continuing education each license year. The eight hours consist of:
- four credit hours of elective courses; and
- four credit hours of either the General Update Course or the Broker-in-Charge Update Course.
All brokers without BIC-Eligible status and provisional brokers must attend the General Update Course and all Brokers-in Charge and BIC Eligible Brokers must attend the Broker-in-Charge Update Course. A broker is required to complete eight credit hours of continuing education by June 10th at 11:59 PM EST. This requirement begins upon the second renewal following initial licensure and upon each subsequent annual renewal.
In the past, Rule 58A .1708 permitted brokers to request equivalent credit for a course that was not approved by the North Carolina Real Estate Commission by submitting a $50 fee, course outline and completion certificate. On July 1, 2023, the availability of equivalent credit was removed for all brokers, except an instructor who either authored or taught a course. Therefore, there is no equivalent credit offered for a course that is not approved by NCREC. A broker who previously submitted courses for equivalent continuing education credit should take the required Update course and an approved North Carolina elective prior to the June 10th deadline.
Rule 58A .1708 was changed to ensure that all North Carolina brokers are required to take North Carolina approved courses. The change also eliminates the need for brokers to pay additional fees, especially when courses were not approved for equivalent credit.
Rule 58A .1711 previously exempted brokers who were licensed in another state from the continuing education requirements in North Carolina. On July 1, 2023, the Commission repealed that rule. All brokers licensed in North Carolina must meet the same eight hour continuing education requirement. The prevalence of online courses means that this is no longer an unreasonable burden for licensees living outside North Carolina.
These rule changes were intended to make things simpler for brokers and to assure that all brokers in North Carolina obtain the same education regarding North Carolina rules, statutes and information to ensure the competence of brokers practicing in the state. If you have questions about the status of your continuing education, you can login and check your continuing education record on the Commission’s website.
How to Designate My Email Address as Private
Did you know that licensees must provide an email address/phone number to the Commission? Are you aware that you can designate your email address/phone number as private?
Commission Rule 58A. 0103 requires all licensees to notify the Commission of any changes to their email addresses/phone numbers within 10 days of the change. This applies to provisional and full brokers, whether on active or inactive status.
Although brokers must provide their email addresses/phone numbers to the Commission per Rule 58A .0103, a broker may designate their email address as private. To designate an email address as private in your license record, you should complete the following steps:
- Go to the Commission website (www.NCREC.gov).
- Scroll down to Licensees.
- Select Licensee Login.
- Enter your license number and PIN (the last four digits of your social security number unless you have changed it).
- Select View/Update Your License Record.
6. Scroll down to Other Contact Information (see screenshot below)
7. Delete any entries in the boxes next to Public Phone and Public Email to mark your email address and/or phone number as private.
8. Add your information in the Private Phone and Private Email sections.
9. Select the submit button.
NOTE: If an email/phone number is designated as private, the North Carolina Real Estate Commission will not share your information, unless it is required under federal law or valid subpoena.
Case Study: Material Facts
FACTS: A broker listed a property for a seller and attached an expired septic permit.
The listing broker indicated in the property description that the property was a 4-bedroom, 3-bath residence but specified that it was the responsibility of the buyer agent and/or the prospective buyer to locate the current septic permit for the property. A prospective buyer was interested in the property and submitted an offer. The seller accepted the buyer’s offer and the parties went under contract for the property.
The contract allowed for a due diligence period. During this period, the buyer and buyer agent contacted the local municipality to inquire about the septic permit. They received a copy of the permit that indicated the property was permitted for 3 bedrooms.
Upon receipt of the current septic permit, the buyer agent notified the listing agent of the discrepancy in the property description and provided them a copy of the current septic permit. Based upon the information in the current septic permit, the prospective buyer decided to terminate the contract because it did not meet their residential needs.
The listing agent re-listed the subject property and attached the expired septic permit.
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’ interests. In this case study, the listing broker advertised that the property was a 4-bedroom, 3-bathroom home, which was incorrect based upon the septic permit for the property. Prior to listing the property, the listing broker should have verified the number of bedrooms that were permitted for the property by the local municipality.
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 attached an expired septic permit for the property and indicated that buyer agents and/or prospective buyers had a duty to verify the accuracy of the information. The listing broker did not act like a reasonably prudent broker because they failed to obtain the current septic permit and verify the accuracy of the property information prior to listing the property. Additionally, the listing broker was given a copy of the current septic permit by the buyer agent that indicated the property was only permitted for 3-bedrooms. After the prospective buyer terminated the contract, the listing agent failed to revise the property description prior to re-listing the property.
The listing broker had a duty to pull the septic permit and verify the accuracy of the information for the property prior to listing the property. The listing broker’s assertion that the discovery of the correct information regarding the number of bedrooms the property was permitted for was the duty of the buyer agent and/or prospective buyers is incorrect. 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).
Rule 58A .0110(g)(3) states that a broker-in-charge is responsible for all advertising by or in the name of the firm. As a result of this misrepresentation and the listing broker’s failure to adhere to N.C.G.S. § 93A-6(a)(1), the listing broker and broker-in-charge 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 .0110
Articles: 2022-2023 General Update Course
Diversity, Equity, and Inclusion
On May 21, 1957 the North Carolina General Assembly enacted Chapter 744 of the Session Laws of 1957, an act to regulate and license real estate brokers and real estate salesmen in North Carolina. The act established the North Carolina Real Estate Licensing Board (this name changed to the North Carolina Real Estate Commission in late 1983), which was composed of five Governor appointed members. Board members had the power to create and enforce rules and regulations connected with the application for any broker or salesman license and suspend or revoke those licenses with due cause.
In the Commission’s nearly 67 year history more than 80 Commission members, all with diverse backgrounds and experience, have served on the board. As we enter February, which marks Black History Month, the Commission would like to recognize some of its African American Commission members throughout the years.
In 1979 Mr. James A. Beaty, Jr. was appointed by Governor James B. Hunt, becoming the first African American Commission member. Mr. Beaty, at the time an attorney in Winston-Salem, served on the Commission until 1981 when he became a Superior Court Judge in Forsyth County. In 1994 Mr. Beaty was nominated by President Bill Clinton to the United States District Court for the Middle District of North Carolina, where he served until his retirement in 2018.
The late Mr. Thomas Council, of Fayetteville, was appointed by Governor Hunt to fill the vacancy left by Mr. Beaty in 1981. Mr. Thomas, who founded his own real estate brokerage firm, was an experienced real estate professional dedicated to civic and community service. Serving on the Commission until 1985 Mr. Council was elected Vice-Chairman in 1984 and then Chairman in 1985, becoming the first African American to hold either position.
Continuing with Commission firsts, in 1989 Mrs. Patrice P. Lewis was appointed by Governor James G. Martin to become the first African American woman to serve as a Commission member. Mrs. Lewis was a law clerk for Judge Robert E. Orr with the North Carolina Court of Appeals. Mrs. Lewis, an attorney, who came to the Commission with North Carolina Court of Appeals experience, served on the Commission for one 3-year term.
The Commission members referenced above represent firsts in Commission member history, but they certainly would not be the last. Below are other African American Commission members, including current Vice Chair T. Anthony Lindsey, past Chair Wendell Bullard, and member Jocelyn Mitnaul Mallette.
- Chandler B. Lee (Pinehurst), 1988-1989
- James K. Polk (Charlotte), 1992-1995, Vice-Chairman 1993-1994, Chairman 1994-1995
- Sang J. Hamilton, Sr. (Winton), 1995-2004 Vice-Chairman 1999-2000, Chairman 2000-2001
- M. Rick Watts (Fayetteville), 2002-2012, Vice-Chairman 2003-2004, Chairman 2004-2006
- Melvin L. Alston (Greensboro), 2003-2011, Vice-Chairman 2005-2007,Chairman 2007-2009
- Wendell Bullard (Durham), 2018-Present, Vice-Chairman 2020-2021, Chairman 2021-2022
- T. Anthony Lindsey (Charlotte), 2019- Present, Vice-Chairman 2023-2024
- Jocelyn Mitnaul Mallette (Raleigh), 2023-Present
The Commission recognizes the service and immense contributions of these, and all other past and present, Commission members to real estate brokerage in North Carolina.