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Simplified Continuing Education 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:

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 currently 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 On July 1, 2023, the Commission repealed that rule.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.

Agent Safety is a Priority!

In the busy world of real estate, where brokers are constantly meeting new clients and showcasing properties, safety is of the utmost importance. While most interactions with clients are positive and exciting, it is essential for real estate brokers to be proactive in protecting themselves against potential threats. Whether meeting clients for a property viewing or hosting an open house, here are some tips for real estate brokers to stay safe:

  1. Meet in a Safe Environment: If you’re meeting with a client for the first time, it is safest to meet somewhere familiar and safe. You can meet at your firm’s office, a busy public place, or with another broker alongside you.
  2. Inform Colleagues or Supervisors: You should always let someone know about your appointments and location, especially when you’re meeting new clients or visiting unfamiliar places. You should also share details like the client’s name, contact information, and the location of the meeting.
  3. Trust Your Instincts: As a real estate broker, your intuition is a valuable tool. If something doesn’t feel right or makes you uncomfortable during an interaction with a client or customer, trust your instincts and proceed with caution. It is better to be cautious than to ignore any red flags.
  4. Use Technology: Use technology to help keep yourself safe such as applications that share your location in real time with trusted contacts or activate emergency alerts if you feel you are in danger.

5. Pre-Plan Escape Routes: Familiarize yourself with the layout of properties you’re showcasing and identify potential escape routes in case of emergency.

6. Stay Informed About Local Safety Risks: Keep up to date about crime trends in the areas you are doing business. Knowledge of potential harm helps you to be proactive and avoid dangerous situations.

7. Create Safety Guidelines: When hosting open houses, create safety guidelines such as requiring visitors to sign in, limiting access to certain areas of the property, and having a colleague or security present.

You can go to ncrec.gov to find the Safety Guide under Publications. This guide includes more helpful information to keep you safe and prepared in the event of a dangerous situation.

Reminder: Complete your Continuing Education Today!

Have you taken your CE courses for the 2023-2024 license year? Do you know which courses you need to take?

The CE deadline is June 10, 2024, at 11:59 PM EST and brokers must ensure they complete their continuing education requirements to maintain an active real estate license.

Rule 58A .1702 dictates that to maintain an active license, a broker must take eight (8) hours of CE each year.

*A BIC or BIC-eligible Broker who takes the General Update course and an elective will maintain an active license but will lose their BIC Eligible status and BIC designation.

Not sure which Update course you need to take? Log into your license record here on the Commission’s website to check your license status before registering for a course.

CE Course Search

CE Update and elective courses are offered in variety of formats.  Update courses are offered in person and via synchronous distance learning (aka, “live online” instruction using Zoom or similar technologies).  Elective courses are also offered via distance courses (self-paced online courses).

To search for in-person and “live-online” CE Update and elective courses:

  1. go to www.ncrec.gov;
  2. click on the Education menu;
  3. click on Search CE Course Schedules; and
  4. click on Search Providers.

To search for providers that offer self-paced, online CE elective courses:

  1. go to www.ncrec.gov;
  2. click on the Education menu; and
  3. click on List of Distance CE Providers.

For more information, visit the Commission’s website at www.ncrec.gov.

Reminder: Instructor Development Credit

After the successful conclusion of the 2024 Spring Educators Conference, a number of Commission-approved instructors earned their six hours of education needed to renew their instructor approval. However, there are still a number of educators who need to satisfy the real estate instructor educational program required by Commission Rule 58H .0306.

A common misconception is that the Spring Educators Conference is the only way to fulfill this requirement, but there are actually a number of other choices available to educators. If you are a Commission-approved instructor who still needs to complete their instructor development credit, review our Guidelines for Instructional Educational Requirement (Form REC 3.78). This form is located on the Commission’s website under Forms. This document contains a list of several options instructors can use to complete the necessary education.

Once an educator has completed their six hours of instructor development training, they can then renew their approval by completing the renewal application in the Instructor Dashboard, once it becomes available on May 15th. If you have any questions regarding the requirements to renew your instructor approval, please go to the Commission’s website at www.ncrec.gov.

Guess What? We have a Video for THAT!

Have you been asked how to become a licensed real estate broker in North Carolina? Well, the next time someone asks you, inform them about our NEW informational videos on real estate licensing. These videos are posted on the NCREC YouTube channel and also in Real Estate Licensing in North Carolina (RELINC) booklet. Spread the word!

1 – Overview of the Licensing Process (3:18)

2 – Real Estate Licensing Requirements (5:04) 

3 – Basic Info about the NC License Examination (4:17)

4 – Scheduling an Exam with Pearson VUE (3:56)  

5- Testing with Pearson Vue (3:17)

Case Study: Material Facts

FACTS: A broker listed a property for a seller and received several offers on the property in a short time frame.

The listing broker discussed the offers with the seller, and helped the seller evaluate the offers. After further negotiation, the seller accepted a 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 had a home inspection performed. The inspection indicated that the home had some significant electrical and plumbing issues.  The buyer agent shared these issues with the listing agent and tried to negotiate for the costs of repairs, but the parties could not come to an agreement.  The buyer terminated the contract before the due diligence period ended and received their earnest money deposit back.

The listing agent re-listed the subject property making no changes to the listing.  A potential buyer who was previously interested in the property wanted to submit an offer.  The buyer asked the listing agent the reason why the property was relisted. The listing agent informed the buyer that the previous buyer had financing issues.  The new potential buyer submitted an offer on the property.

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 the power to suspend or revoke at any time a license, or to reprimand 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. 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 misrepresented the reason the previous buyer canceled their contract. The listing broker had actual knowledge of the plumbing and electrical issues.

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 misrepresented the reason the previous buyer terminated their contract. The listing broker did not act like a reasonably prudent broker because theyfailed to disclose the true reason for the terminated contract. Additionally, the listing broker had knowledge of the electrical and plumbing issues and had a duty to disclose those material facts to additional parties. After the prospective buyer terminated the contract, the listing agent failed to revise the property description prior to re-listing the property and misrepresented known material facts. 

The listing broker had a duty to disclose the issues with the plumbing and electrical systems in the house. The listing broker’s assertion that the terminated contract resulted from financing issues 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).

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 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

2019-2020 General Update Course

Tech Corner: Two-Factor Authentication

How often do you check your email, social media, or financial accounts each day? Did you know that your accounts are more vulnerable to cyber-attacks if you have not enabled two-factor authentication?

The Federal Trade Commission (FTC) indicates that consumers should use two-factor authentication to protect all of their accounts, personal, business, and financial.

Employing Two-factor Authentication

Relying solely on passwords to access accounts is similar to having only one lock on a door securing a home. A door secured with a lock and a deadbolt is similar to two-factor authentication, which provides enhanced protection to individuals. Basically, if an individual implements two-factor authentication on their accounts, even if a hacker has access to their username and password, they will not be able to retrieve any information without the second authentication factor.

Common Authentication Methods Several platforms have adopted two-factor authentication and have allowed users to select their preferred method of verification. Some of the most common methods are:

  • One-time passcodes,
    • This method entails receiving a verification passcode via text message or email. The code typically consists of six digits, is valid for a single log-in attempt, and automatically expires.
  • Authenticator application, and
    • An authenticator app offers the possibility of receiving push notifications on your phone or tablet whenever there’s an attempted login to your account. These notifications typically provide details about the login attempt, such as the account being accessed, the geographical location of the attempt, the device type used, and the date and time of the login attempt. You can then approve or deny the request with a simple tap. There are several variations of authenticator apps like Google Authenticator, Microsoft Authenticator, and Duo.
  • Security key.
    • Security keys are physical devices serving as your secondary authentication factor, available in various forms and sizes. Security keys validate their association with your account. Some security keys plug into a USB port, while others utilize near-field communication (NFC) to establish connection when held close to your device.

The FTC recommends that individuals take a couple of minutes to set-up two-factor authentication on their accounts to prevent spending countless hours on trying to recover lost data or deal with identity theft.

Do you want to know more about keeping your personal information and identity safe? Sign up for Consumer Alerts from the FTC here.

Current Stats: Monthly Licensee Count as of March 1, 2024

Staff Appearances

Bruce Rinne, Information Officer, spoke at the NC REALTORS® Compliance meeting on March 5.

Bruce Rinne, Information Officer, spoke at the NC REALTORS® Commercial Alliance meeting on March 13.

Leslie Schwartz, Information Officer, spoke at Keller Williams Legacy on March 12.

Brian Heath, Consumer Protection Officer, spoke at Coldwell Banker HPW on March 14.

Charlie Moody, Deputy Legal Counsel, spoke at Premier Sotheby’s International Realty on March 12.

Brian Heath, Consumer Protection Officer, spoke at Coldwell Banker HPW on March 19.

Brian Heath, Consumer Protection Officer, spoke at the Triangle Chapter of NARPM on March 21.

Disciplinary Actions

JESSE BURGER (SPRING LAKE) – The Commission accepted the permanent voluntary surrender of the temporary real estate license of Burger, effective February 14, 2024. The Commission dismissed without prejudice allegations that Burger violated provisions of the Real Estate License Law and Commission Rules. Burger neither admitted nor denied misconduct.

CHASITY ANN DEBARBER (JACKSONVILLE) – By Consent, the Commission reprimanded Debarber, effective February 1, 2024. The Commission found that Debarber, acting as the broker-in-charge of Roga LLC, advertised properties on social media for rent by others without obtaining written permission.

ZONDRA DENISE HALL (FAYETTEVILLE) – By Consent, the Commission suspended the broker license of Hall for a period of 12 months, effective February 1, 2024, but stayed the suspension after 1 month upon certain conditions. The Commission found that Hall purchased a property in the name of Hall’s LLC and made renovations and additions to the property.  Hall listed and advertised the property as connected to city sewer. Following closing, the buyer learned that the property was not connected to city sewer. Hall was notified and connected the property to city sewer.  Hall failed to verify that a permit was obtained for the renovations and additions to the property completed by one of Hall’s contractors, and failed to disclose the lack of that permit to the buyer. Hall also failed to provide a physical address for herself or the firm.

SARAH KIRAMA (GREENSBORO) – By Consent, the Commission suspended the broker license of Kirama for a period of 24 months, effective January 10, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Kirama acted as a listing agent for a residential property and received a home inspection report from a buyer who later terminated the contract. The inspection report noted certain items needed repair or replacement. Kirama relisted the property and noted in agent remarks on MLS that the report was available upon request but falsely stated that seller made all repairs mentioned in the report when her seller-client made some but not all repairs noted on the report. Kirama failed to advise her client to update the RPOADS form and failed to otherwise disclose material facts described on the inspection report that were not repaired by the seller. In two subsequent transactions, Kirama provided the inspection report only after the buyers went under contract.

LCW MANAGEMENT LLC (CLEMMONS) – The Commission accepted the permanent voluntary surrender of the real estate firm license of LCW Management LLC, effective February 14, 2024. The Commission dismissed without prejudice allegations that the firm violated provisions of the Real Estate License Law and Commission Rules. The firm neither admitted nor denied misconduct.

LATOYA NICOLE OWENS (NEW BERN) – By Consent, the Commission suspended the broker license of Owens for a period of 12 months, effective February 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Owens represented the buyer in the subject transaction.  Sellers advertised a $3,500 seller-paid closing credit and a 1% lender credit with the use of a preferred lender. Owens failed to include these terms in the offer to purchase and contract that was accepted by the seller. The sellers would not thereafter offer the credits. Owens failed to enter into a buyer agency agreement prior to the time of offer.

MANUEL PONCE DE LEON (JACKSONVILLE) – By Consent, the Commission suspended the broker license of Ponce de Leon for a period of 12 months, effective February 1, 2024. The Commission found that Ponce de Leon represented buyers in the purchase of the subject property.  The buyers asked Ponce de Leon if the subject property had previously flooded.  Ponce de Leon failed to inquire from the listing agent and failed to discover permits for work evidencing previous flooding to the subject property caused by a hurricane. Ponce de Leon failed to provide and review the Working with Real Estate Agents disclosure at first substantial contact and failed to provide fully executed documents to the buyers in the subject transaction.

JOSEPH R PUMA (HUNTERSVILLE) – By Consent, the Commission suspended the broker license of Puma for a period of 6 months, effective February 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Puma represented the sellers of the subject property. The buyer was represented by a buyer’s agent. Puma advertised the subject property as a “private lot home.” Puma failed to verify, prior to offer, the planned use of the multiple parcels of residential land adjacent to the subject property.  A preliminary plan for a 124-single family home subdivision had been proposed and noticed by the locality. Puma did not have actual knowledge of the proposed development plans for the adjacent land.  Buyer closed on the subject property and shortly thereafter, the land was sold, development of the subdivision received approval and construction began.

ROGA LLC (JACKSONVILLE) – By Consent, the Commission reprimanded ROGA LLC, effective February 1, 2024. The Commission found that the firm advertised properties on social media for rent by others without obtaining permission.

ALFRED S RUSHATZ (SANFORD) – The Commission accepted the permanent voluntary surrender of the real estate license of Rushatz, effective February 1, 2024. The Commission dismissed without prejudice allegations that Rushatz violated provisions of the Real Estate License Law and Commission Rules. Rushatz neither admitted nor denied misconduct.

JOELLEN EUBANKS SHIPMAN (LAKE TOXAWAY) – Following a hearing, the Commission permanently revoked the broker license of Shipman, effective November 20, 2023. The Commission found that Shipman listed the subject property as a short-term vacation rental.  When Shipman was unable to successfully procure short-term tenants, the property owner agreed to allow for a long-term tenant in the subject property.  The lease agreement approved by the property owner prohibited pets without the prior written consent of the property owner.  Shipman altered the lease agreement previously approved by the property owner in order to allow pets in the subject property without obtaining consent of the property owner.  Respondent failed to provide an executed copy of the lease agreement to the property owner.  Respondent failed to timely deposit the tenant security deposit in her trust account.  

MICHAEL D SONBERT (CLEMMONS) – The Commission accepted the permanent voluntary surrender of the real estate license of Sonbert, effective February 14, 2024. The Commission dismissed without prejudice allegations that Sonbert violated provisions of the Real Estate License Law and Commission Rules. Sonbert neither admitted nor denied misconduct.