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Tech Corner: The Importance of Email Security

In today’s digital world, email has become one of the most common ways to communicate. While convenient, it also exposes sensitive information to potential threats like hacking, phishing, and data breaches. In this guide, we’ll explore the importance of email security and provide steps to help brokers protect sensitive information.

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Why Email Security Matters in Real Estate Transactions

  1. Sensitive Data: Real estate transactions involve highly sensitive information such as Social Security numbers, financial records, personal identification details, and bank account numbers. A breach of this data can lead to identity theft, financial loss, and legal complications.
  2. Confidential Communication: Email exchanges between brokers and clients often include private conversations about offers, counteroffers, inspections, and contractual terms. Ensuring that these communications are secure is vital to maintaining confidentiality.
  3. Reputation Protection: A breach in email security can significantly damage your reputation as a trusted broker.

How to Secure Your Emails and Protect Clients’ Personal Information

1. Use Strong, Unique Passwords for Your Email Accounts

2. Enable Two-Factor Authentication (2FA)

3. Encrypt Your Emails

4. Use Secure File Sharing Services

5. Be Cautious with Public Wi-Fi

6. Beware of Phishing Emails

7. Educate Your Team and Clients

8. Regularly Update Your Email Software

9. Consider Using a Secure Email Provider

By taking proactive measures, such as using strong passwords, and encrypting emails you can significantly reduce the risk of a data breach and protect your clients’ personal information. Remember, email security is an ongoing process. Stay vigilant and update your practices as technology evolves to ensure that you are always providing the highest level of protection for your clients.

Question Corner: NCREC’s Most Frequently Asked Questions

Question: Can I renew my license before May 15?

Answer: No. By law, the annual renewal period for your real estate license begins at midnight on May 15 and ends at 11:59 PM on June 30. Therefore, brokers cannot renew their licenses any earlier. If a broker fails to renew their license during May 15th-June 30th, their license will expire.

Brokers must pay a $90 fee between July 1 and December 31 to reinstate an expired license. If you are a broker and fail to reinstate by December 31, after that, you will need to submit a new application, along with the application fee and a criminal background report. Additionally, you may be required to complete extra education or pass the state licensing exam. For more details, visit the Commission’s license reinstatement page.

Question: Do I have to renew my firm license?

Answer: As the Qualifying Broker (QB) for your firm, it’s crucial to renew the firm’s real estate broker license annually between May 15th-June 30th. According to Commission Rule 58A .0502(g)(2), the QB is responsible for this renewal.

Failure to renew the firm’s license by the deadline results in significant administrative changes:

These changes can disrupt your firm’s operations and the professional activities of your affiliated brokers. To avoid these complications, please ensure timely renewal of the firm’s license each year.

Case Study: Material Facts

FACTS:  During a listing appointment, the prospective seller states that they recently had a home inspection that indicated water leakage in the basement walls and crawl space. They have ordered no further inspections to determine the extent of the issue or identify repair options. The broker tours the property and sees no moisture or standing water at that time. The broker lists the property but does not mention the water leak to any prospective buyers. The seller selects “No Representation” on the Residential Property and Owners’ Association Disclosure Statement (RPOADS).

ISSUE:  Did the broker fulfill their duties under License Law and Commission Rules?

ANALYSIS:  No. Under N.C.G.S. § 93A-6(a)(1) and Commission Rule 58A .0114, a broker must make reasonable efforts to discover and disclose material facts to parties to the transaction, regardless of who they represent.

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. Failure to disclose material facts continues to be the most common complaint from consumers. 

This mandatory disclosure of material facts includes disclosure of:

Although the broker/agent did not personally observe any moisture or standing water, they were informed of it by the seller and therefore had an obligation to disclose what they knew about the water leakage in the basement walls and crawl space. The seller’s completion of the RPOADS does not relieve the broker of their obligation.

As a result of the broker’s failure to adhere to N.C.G.S. § 93A-6(a)(1) and Commission Rule 58A .0114, the broker may be subject to disciplinary action by the Commission. 

RESOURCES: N.C.G.S. § 93A-6(a)(1), N.C.G.S. § 93A-6(a)(10), and N.C.G.S. § 93A-6(a)(15) License Law and Commission Rule:  58A .0114Articles: “What is a Material Fact” and “How to Discover Material Facts”    

Education Provider Certification Renewal Process: Step-by-Step

Just as qualifying brokers are required to renew their firm licenses, education directors are required to renew their education provider’s certification. Education directors should follow these steps to ensure the successful renewal of their provider’s certification without any interruption to their education program:

  1. Starting on May 15th, education directors will first need to complete the Education Director Course as part of the annual education requirement to renew their provider’s certification.
  2. Next, they will want to review their Policies & Procedures Disclosure (PPD) to ensure the information contained in it is up-to-date and still accurately reflects the types of education they offer.
  3. With these two steps completed, the education director can now login to the EP Dashboard to renew their provider’s certification and attach their updated PPD to the renewal form.
  4. After the renewal form has been submitted, the next step is to renew any additional branch locations, if applicable.
  5. Next, they will need to go through and renew each education type their provider offers whether it is Prelicensing, Postlicensing, and/or Continuing Education. In addition to renewing the type of education offered, they will also need to renew each delivery method of each course they are approved to offer within that education type if they still want to offer it in the coming license year.
  6. Finally, once everything they intend to renew has been selected, they will need to pay all required fees.

The biggest difference for the education provider renewal process from other renewals is the lack of a reinstatement period. Failing to renew an education provider’s certification will result in the expiration of that certification, approved locations, and all course approvals. Since there is no reinstatement period, an education director will be required to start over with a new education provider application and then submit course applications for all of its course approvals to get up and running again.

If a director has any questions regarding the requirements to renew their education provider’s certification (and everything else contained within it), they should review the “EP Renewals” video located in the Video Library of the EP Dashboard. If they still have additional questions, they can reach out to Education staff at educ@ncrec.gov.

Reminder: Retain Text Messages

Most brokers are aware that Commission Rule 58A .0108 requires that all transactional records be retained for three years. Most brokers are good at retaining contracts, agreements, money trails, closing statements, and such. But what about those pesky text messages that are frequently used to communicate orders, approvals, and questions by clients or other transactional parties? Where and how are they kept? Are they available to be provided to Commission representatives without prior notice as required by rule?

If your heart just skipped a beat in panic, you are not alone. It is not uncommon for brokers under investigation to be unable to provide pivotal documentation because it was by text message that is no longer available to the broker.

How can that be, you ask. It usually revolves around the broker assuming that their phone/text service provider keeps all text messages indefinitely. Sadly, this is seldom the case. It seems that most carriers scrub/delete call records and/or text messages in a fairly short timeframe unless the phone owner has changed the retention settings to a longer period of time; some carriers offer “forever” as an option. Retaining such data in the Cloud is also a good storage option.

Moral of the article: don’t assume that you will be able to retrieve a needed text unless you have made specific retention choices with your device and/or service provider.

Reminder: Continuing Education Points to Consider

Don’t forget to complete your Continuing Education (CE) courses before June 10, 2025, at 11:59 PM EST. Here’s what you need to know:

Broker-in-Charge responsibility: Ensure all affiliated brokers have completed their required CE.

Some CE classes may sell out: Seats are limited, so secure your spot early.

Less than 40 days left: Time is ticking! Act now to fulfill your CE requirements.

Avoid the last-minute rush: Start now to avoid any last-minute stress.

Did you know?

What can a co-host do without a license?

The Commission often receives calls from both brokers and unlicensed individuals who want to know what activities require licensure when renting property on AirBnB, VRBO, and other similar online platforms.

Online rental platforms were created to allow an owner to self-manage short term rentals in a convenient and accessible manner.  Sites permit licensees to list rentals as property managers, but they also allow for “Co-Hosts” to assist in some of the hands-on tasks that an owner may not be able to perform. The question of the day is, when does an unlicensed person cross the line into brokerage territory where a license would be required?

North Carolina General Statute § 93A-2(a) states that an active real estate license is required in order to:

A few rules to keep in mind: Commission Rule 58A. 0110 states that a Broker in Charge is responsible for the conduct of advertising by or in the name of a firm.  Commission Rule 58A. 0104 requires a property management agreement to be fully executed prior to providing property management services. 

Unlicensed individuals who wish to assist owners on these platforms may perform the following services without having a license:

A license is required for the following:

An unlicensed Host should not be paid per booking and no fees can be tied to a booking, cannot advertise on a website even if it links to a different platform, and cannot enter into a Property Management Agreement with an owner of a rental property.  Unlicensed individuals also cannot pay or be paid any referral or finders fees for referring potential tenants or owners.

The NCREC 2025 Spring Educators Conference

The North Carolina Real Estate Commission proudly hosted its 2025 Spring Educators Conference on March 27, 2025, at the McKimmon Center in Raleigh. The conference, themed “Raleighwood: How to Be An Education Star,” welcomed 300 participants. Commission Chair T. Anthony Lindsey kicked off the event with a warm welcome to all attendees. Throughout the day, participants engaged in the following insightful presentations by the Commission Chair, Vice Chair Bill Aceto, and Commission Staff.

The conference concluded with the presentation of the 2025 Larry A. Outlaw Excellence in Education Award to Patrice Willetts by Commission Chair T. Anthony Lindsey. The Commission established the Larry A. Outlaw Excellence in Education Award in 2016 to honor the Commission’s late former Director of Education and Licensing Division. This year’s recipient of the Larry A. Outlaw Award, Patrice Willetts, demonstrated ongoing excellence in outstanding contributions to real estate education in North Carolina.  

The Commission expressed gratitude to North Carolina’s real estate educational community for their unwavering support and dedication in honing their skills, and extended a heartfelt congratulations to Patrice Willetts on her well-deserved award.

Disciplinary Actions

BOTTOM LINE REALTY & MANAGEMENT (CHARLOTTE) – By Consent, the Commission suspended the firm license of Bottom Line Realty & Management for a period of 16 months, effective March 14, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that the Firm began providing property management services to a landlord-client in 2017 with the same tenant occupying the property since that time. The Firm failed to inform the landlord-client of needed repairs or ensure that staff was doing said repairs leading to additional damage from a leak in the crawlspace. The Firm failed to ensure that tenants had established utilities for subject property leading to the gas meter being removed and the tenants being without heat. The Firm failed to provide repair documentation to the landlord-client upon request.

CATHY COTTLE (WINSTON SALEM) – By Consent, the Commission reprimanded Cottle effective March 31, 2025. The Commission found that Cottle was the Broker in Charge of the listing firm of the subject property.  Cottle’s listing agent (hereinafter “LA”) listed the subject property and began advertising in the MLS that the subject property contained 2,526 heated square feet. The LA represented that the 2,526 square feet included the 936 square feet in the basement, however the basement was unheated. Excluding the basement, the square footage would have been 1,590 square feet, which is the same as the county tax record. LA failed to notice the error until it was pointed out by a Buyer’s Agent during the listing period. Cottle failed to update the MLS to indicate the correct square footage.

RALONNIE DAVIS (CHARLOTTE) – By Consent, the Commission suspended the broker license of Davis for a period of 12 months, effective March 11, 2025. The Commission then stayed the suspension following a three-month active period upon certain conditions. The Commission found that Davis failed to remit rent proceeds and security deposit funds to an owner after that owner terminated a property management agreement with Davis. Davis, as the broker-in-charge, failed to properly account for trust monies and failed to reconcile the Firm’s trust accounts in accordance with Commission rules.

TIEASE DUNCAN (ERWIN) – By Consent, the Commission suspended the broker license of Duncan for a period of 6 months, effective March 1, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Duncan represented a buyer in a real estate transaction. The buyer obtained a home inspection which discovered potential evidence of termites and identified other potential issues. Duncan failed to competently review the inspection report and did not discuss with her buyer-client that they might want to conduct additional inspections. Duncan failed to ensure the buyer obtained a home warranty to be paid by seller prior to close, as was agreed to in the contract.

FAMILY FIRST PROPERTY MANAGEMENT & REALTY (JACKSONVILLE) – By Consent, the Commission permanently revoked the firm license of Family First Property Management & Realty, effective March 5, 2025. The Commission found that the Firm managed approximately 277 properties. On or about February 7, 2025, the Firm had shortages in its trust accounts in excess of $300,000.00.

KENLON PARK ESTATE LLC (CHARLOTTE) – By Consent, the Commission suspended the firm license of Kenlon Park Estate LLC for a period of 12 months, effective March 11, 2025. The Commission then stayed the suspension following a three-month active period upon certain conditions. The Commission found that the Firm failed to remit rent proceeds and security deposit funds to an owner after that owner terminated a property management agreement with the Firm. The Firm also failed to properly account for trust monies and failed to reconcile its trust accounts according to Commission rules. 

KEVIN STRINGARI (CHARLOTTE) – By Consent, the Commission suspended the broker license of Stringari for a period of 16 months, effective March 14, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Stringari was broker-in-charge of a firm which began providing property management services to a landlord-client in 2017 with the same tenant occupying the property since that time. As broker-in-charge, Stringari failed to ensure that the landlord-client was informed of needed repairs or ensure that staff was doing said repairs leading to additional damage from a leak in the crawlspace, and failed to ensure that tenants had established utilities for subject property leading to the gas meter being removed and the tenants being without heat.

LEONARD RYDEN BURR LLC (WINSTON SALEM) – By Consent, the Commission reprimanded Leonard Ryden Burr LLC effective March 31, 2025. The Commission found that the Firm’s listing agent (hereinafter “LA”) listed the subject property and began advertising in the MLS that the the subject property contained 2,526 heated square feet. The LA represented that the 2,526 square feet included the 936 square feet in the basement, however the basement was unheated. Excluding the basement, the square footage would have been 1,590 square feet, which is the same as the county tax record. LA failed to notice the error until it was pointed out by a Buyer’s Agent during the listing period. The Firm failed to update the MLS  to indicate the correct square footage.

DAMON WINSLOW (CHARLOTTE) – By Consent, the Commission suspended the broker license of Winslow for a period of 16 months, effective March 14, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Winslow was broker-in-charge of a firm which began providing property management services to a landlord-client in 2017 with the same tenant occupying the property since that time. As broker-in-charge, Winslow failed to ensure that the landlord-client was informed of needed repairs or ensure that staff was doing said repairs leading to additional damage from a leak in the crawlspace. Winslow failed to ensure that tenants had established utilities for the subject property, leading to the gas meter being removed and the tenants being without heat. Winslow failed to provide repair documentation to the landlord-client upon request.

Quick Tips

“Please include your NC real estate license number when contacting NCREC; this will allow staff to respond quickly with information that is personalized to you.

-Deb C, Education and Examination Officer

“CE is NOT required to be completed in order to renew your license. You can RENEW your license before you have completed CE.”

-A. Anderson, License Specialist

“Taking Postlicensing courses will not satisfy your CE requirement.”

-B. Hollings, License Services Officer

“Please keep copies of your submitted forms and electronic correspondence with the Commission for your own personal records.”

-E. Muse, License Services Specialist

“BIC Eligibility is LOST if you expire or go inactive. Not sure why I’ve received several calls about that the past few weeks.”

-D. Moessner, License Services Team Lead