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Do You Know that Real Estate Appraisals Are Changing?

By:  Steve Fussell, Chief Consumer Protection Officer

                November 2, 2026, is the deadline for real estate appraisers to begin using a new appraisal form (UAD 3.6). Some lenders are already requiring the use of this new form. To complete the new form, it is possible that appraisers will contact listing agents more often than in the past to obtain information regarding properties.

                To educate licensees on this change, the Commission has included a section on appraisals in its 2026-2027 Mandatory Update Course that will be available in July 2026. We strongly encourage you to take the course as soon as possible.

                Other important points regarding appraisals:

  1. A lender hires an appraiser to determine the value of the property for which a buyer wants to borrow money so that, in the event of the buyer’s default on the loan, the lender will know how much it can reasonably expect to recover through foreclosure. Even though a lender will collect money from a buyer to pay for an appraisal, the lender orders the appraisal and is the appraiser’s client. Therefore, if a lender orders an appraisal, brokers should never refer to the appraisal as the “buyer’s appraisal.” You should refer to the appraisal as “the appraisal performed for the buyer’s lender.” Alternatively, if a buyer is paying cash for a property and decides to order an appraisal, then the buyer is the appraiser’s client and the appraisal would be the “buyer’s appraisal.”
  2. A broker may provide any information or documentation requested by an appraiser. However, Rule A .0120(c) prohibits a broker from influencing or attempting to influence an appraiser’s decision of value.
  3. Buyer agents should make a habit of (1) asking their buyer-clients to obtain copies of the appraisal reports from their lenders as soon as the reports are available and (2) carefully reviewing the reports and disclosing material information, such as square footage and other information that a reasonable buyer would want to know. If the square footage in the appraisal report differs from the advertised square footage in the MLS, then a buyer agent should look for “below grade” square footage in the appraisal report to see if it explains the difference.
  4. Buyers who pay cash for properties rarely order appraisals, because there is no requirement to do so. However, an appraisal can provide useful information to a buyer, such as square footage verification and other property information. NC Realtors Form 760 (Professional Services Disclosure and Election) includes “appraisal” in the list of services. Brokers who represent and/or assist buyers should explain the value of an appraisal so that buyers can make informed decisions rather than dismiss an appraisal just because it is not required.

Disciplinary Actions

JOEL BARBER (WILMINGTON)-The Commission accepted the permanent voluntary surrender of the real estate license of Barber, effective May 20, 2026. The Commission dismissed, without prejudice, allegations that Barber violated provisions of the Real Estate License Law and Commission Rules. Barber neither admitted nor denied misconduct.

ASHLEY GONZALEZ (RALEIGH)- The Commission accepted the voluntary surrender of the real estate broker license of Gonzalez, effective May 20, 2026, with no right to reapply for 2 years. The Commission dismissed, without prejudice, allegations that Gonzalez violated provisions of the Real Estate License Law and Commission Rules. Gonzalez neither admitted nor denied misconduct.

JDS RENTALS & PROPERTY MANAGEMENT LLC (FAYETTEVILLE)- The Commission accepted the voluntary surrender of the real estate broker license of JDS Rentals & Property Management LLC, effective May 20, 2026, with no right to reapply for 2 years. The Commission dismissed, without prejudice, allegations that JDS Rentals & Property Management LLC violated provisions of the Real Estate License Law and Commission Rules. JDS Rentals & Property Management LLC neither admitted nor denied misconduct.

KIRKPATRICK REALTY VACATION RENTALS LLC (ROBBINSVILLE)- Following a hearing, the Commission permanently revoked the license of Kirkpatrick Realty Vacation Rentals LLC, effective April 20, 2026. The Commission found that Kirkpatrick Realty engaged in property management and maintained trust funds and rental payments in a bank account that was not initially designated as a trust or escrow account.  The Commission also found that Kirkpatrick Realty failed to timely and properly disburse rental proceeds to owner-clients; improperly transferred trust funds between two separate trust accounts, including one that did not belong to Kirkpatrick Realty, making it difficult or impossible to trace the disposition of funds; and failed to maintain required trust account and transaction records, including individual ledgers, journals, monthly reconciliations, trial balances, and rental agreements.  Kirkpatrick Realty failed to provide supporting receipts for certain expenses as requested during the audit.  The trust account audit could not be completed due to insufficient records and the lack of an adequate audit trail. The audit revealed transactions inconsistent with the permitted use of a trust account, including transactions unrelated to the management or disbursement of client funds, as well as instances of insufficient funds, including at least one returned check.

ANGELICA KIRKPATRICK (ROBBINSVILLE)- Following a hearing, the Commission permanently revoked the license of Angelica Kirkpatrick, effective April 20, 2026. The Commission found that Kirkpatrick was the qualifying broker and broker-in-charge of her licensed firm, which engaged in property management activities and maintained  trust funds and rental payments in a bank account that was not initially designated as a trust or escrow account. Kirkpatrick failed to timely and properly disburse rental proceeds to owner-clients; improperly transferred trust funds between two separate trust accounts, including one that did not belong to the firm, making it difficult or impossible to trace the disposition of funds; and failed to maintain required trust account and transaction records, including individual ledgers, journals, monthly reconciliations, trial balances, and rental agreements. Kirkpatrick failed to provide supporting receipts for certain expenses requested during the audit, and the trust account audit could not be completed due to insufficient records and the lack of an adequate audit trail. The audit  revealed transactions inconsistent with the permitted use of a trust account, including transactions unrelated to the management or disbursement of client funds, as well as instances of insufficient funds, including at least one returned check. The Commission found that, as broker-in-charge, Kirkpatrick failed to maintain the firm’s trust account and related records, failed to retain and maintain records relating to transactions conducted by or on behalf of the firm, and failed to complete the Commission’s Basic Trust Account Procedures Course within 120 days of assuming responsibility for a trust account.

LAKE SHORE REALTY INC (SOUTHPORT)- The Commission accepted the permanent voluntary surrender of the real estate license of Lake Shore Realty Inc., effective May 20, 2026. The Commission dismissed, without prejudice, allegations that Lake Shore Realty Inc. violated provisions of the Real Estate License Law and the Commission Rules. Lake Shore Realty Inc. neither admitted nor denied misconduct.

AMANDA PARKER (FAYETTEVILLE)- The Commission accepted the voluntary surrender of the real estate broker license of Parker, effective May 20, 2026, with no right to reapply for 2 years. The Commission dismissed, without prejudice, allegations that Parker violated provisions of the Real Estate License Law and Commission Rules. Parker neither admitted nor denied misconduct.

DANA VINSON (WILSON)- By Consent, the Commission suspended the broker license of Vinson for a period of 12 months, effective May 1, 2026. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Vinson was the listing agent for the subject property. The initial buyer under contract for the subject property terminated after a home inspection revealed several significant defects, including structural issues. Vinson failed to disclose these material facts to a subsequent potential buyer prior to the submission of an offer.

ROBERT WARNER III (SOUTHPORT)- The Commission accepted the permanent voluntary surrender of the real estate license of Warner, effective May 20, 2026. The Commission dismissed, without prejudice, allegations that Warner violated provisions of the Real Estate License Law and Commission Rules. Warner neither admitted nor denied misconduct.

Current Stats: Monthly Licensee Count as of April 1, 2026

Disciplinary Actions

ROBERT ATKINSON II (APEX)- By Consent, the Commission suspended the broker license of Atkinson for a period of 12 months, effective April 15, 2026. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Atkinson advertised a property for sale that was owned by a provisional broker affiliated with his firm. He failed to have a written agreement with her to advertise the property and failed to supervise her conduct in selling the property.

CLARENCE BYNUM (CHARLOTTE)- By Consent, the Commission suspended the broker license of Bynum for a period of 12 months, effective April 1, 2026. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Bynum listed vacant land on behalf of a person believed to be the seller but only verified the name on the deed to the property and contacted the purported seller by phone. The seller accepted an offer from a potential buyer. Bynum forwarded the seller’s wiring instructions, which he had received via text message, to the buyer’s agent, despite their informal nature. The buyer successfully executed a $7,000 wire transfer to the seller. Bynum later learned the seller was fraudulent. Bynum failed to take the reasonable steps required by a real estate broker to verify the seller’s identity and protect the public from fraudulent sellers.

CHATEAUX REALTY INC. (HILLSBOROUGH)- The Commission accepted the permanent voluntary surrender of the real estate license of Chateaux Realty Inc., effective April 22, 2026. The Commission dismissed without prejudice allegations that Chateaux Realty Inc. violated provisions of the Real Estate License Law and Commission Rules. Chateaux Realty Inc. neither admitted nor denied misconduct.

JORDAN COLVILLE (JACKSONVILLE)- By Consent, the Commission suspended the broker license of Colville for a period of 9 months, effective April 17, 2026. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Colville listed a house for sale. The prospective buyers terminated their contract after an inspection revealed damage to several joists caused by wood-destroying fungi and a roof leak. The buyer’s agent told Colville about these issues, but Colville failed to disclose these material facts to two subsequent prospective buyers.

CHRISTOPHER DURFEE (CAMERON)- The Commission accepted the voluntary surrender of the real estate license of Durfee, effective April 22, 2026, with no right to reapply for 3 years. The Commission dismissed, without prejudice, allegations that Durfee violated provisions of the Real Estate License Law and Commission Rules. Durfee neither admitted nor denied misconduct.

KRISTENA JOHNSON (CHARLOTTE)- By Consent, the Commission suspended the broker license of Johnson for a period of 12 months, effective October 15, 2025. The Commission found that Johnson was the qualifying broker and designated broker-in-charge for Mason Karter & Co LLC (dba “Johnson Group Partners”). Johnson failed to inform the Commission that Johnson Group Partners was administratively dissolved in April 2023 and failed to renew the firm’s license before expiration in July 2023. As a result, Johnson became unaffiliated, and the firm’s license was canceled in August 2024. Despite being unaffiliated, Johnson continued to advertise real estate services in North Carolina through the unlicensed firm’s website and social media platforms. Johnson advertised two listings in North Carolina in 2024. Johnson was unresponsive to the Commission’s Letters of Inquiry.

ELLEN POSTLETHWAIT (RALEIGH)- The Commission accepted the permanent voluntary surrender of the real estate license of Postlethwait, effective April 22, 2026. The Commission dismissed without prejudice allegations that Postlethwait, violated provisions of the Real Estate License Law and Commission rules. Postlethwait neither admitted nor denied misconduct.

MARY ROLFE (KITTY HAWK)- By Consent, the Commission suspended the broker license of Rolfe for a period of 9 months, effective May 1, 2026. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Rolfe served as the listing agent in the subject transaction. Rolfe listed the subject property and advertised heated square footage, which improperly included the square footage of an unheated bonus room. Although Rolfe disclosed that the bonus room was unheated, Rolfe continued to advertise the subject property’s heated square footage, including the bonus room.

MICHELE SZABO (INDIAN LAND)- The Commission accepted the permanent voluntary surrender of the real estate license of Szabo, effective April 22, 2026. The Commission dismissed, without prejudice, allegations that Szabo violated provisions of the Real Estate License Law and the Commission Rules. Szabo neither admitted nor denied misconduct.

CHARLES WITCHER (TRINITY)- By Consent, the Commission suspended the broker license of Witcher for a period of 2 years, effective April 15, 2026. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Witcher advertised a property for sale that had been “flipped” and failed to discover and disclose that the flipper performed the renovations without permits and without the required general contractor. 

Commission Presentations

Minerva Mims, Fair Housing and Community Relations Officer, spoke at Raleigh Regional Association of REALTORS® on April 2nd.

Beau Minnick, Consumer Protection Officer, spoke at Century 21 The Realty Group on April 7th.

Minerva Mims, Fair Housing and Community Relations Officer, spoke at Gardner-Webb University on April 8th.

Dee Bigelow, Information Officer, spoke at Asheville Property Managers on April 13th.

Minerva Mims, Fair Housing and Community Relations Officer, spoke at Gaston Association of REALTORS® on April 16th.

Kizzy Crawford Heath, Assistant Director of Education and Licensing, Minerva Mims, Fair Housing and Community Relations Officer, and Tiffany Ross, Consumer Resource Officer, spoke at the F.I.R.E. Summit at N.C. A&T State University on April 21, 2026.

May 2026 Presentations

*These presentations are subject to change due to the availability of Commission members and/or staff.*

Len Elder, Director of Education and Licensing, will speak at Cape Fear REALTORS® on May 6th.

Kizzy Crawford Heath, Assistant Director of Education and Licensing, and Tiffany Ross, Consumer Resource Officer, will speak at Wilmington Beaufort County Board of REALTORS® on May 12th.

Janet Thoren, Director of Regulatory Affairs, will speak at a Wire Fraud Summit on May 13th.

Bruce Rinne, Consumer Protection Officer, will speak at 220 Agents on May 14th.

Bill Aceto, Commission Chair, will speak at Catawba Valley Association of REALTORS on May 15th.

Beau Minnick, Consumer Protection Officer, will speak at True North Realty on May 18th.

Brian Heath, Consumer Protection Officer, will speak at Asheville Property Managers on May 19th.

Miriam Baer, Executive Director, will speak at Neuse River Region Association of REALTORS® on May 29th.

Fair Housing

People with criminal records often face significant barriers in securing housing. Landlords may require criminal background checks as part of the housing application and approval process, but they must conduct these checks consistently and ensure the process complies with fair housing laws.

As a best practice, landlords should avoid blanket bans in which they refuse to rent to anyone with a criminal record. Instead, landlords should carefully consider the following criteria:

Avoid relying on arrest records that did not result in a conviction.

Applicants who are denied housing due to their criminal background check should consider requesting:

The Fair Housing Project with Legal Aid of North Carolina published a guide to help applicants and housing providers understand their rights and responsibilities when renting with a criminal background. The guide can be found here: Renting-with-a-Criminal-Background-A-Fair-Housing-Guide_Final.pdf.

Reminder: QBs Renew Your Individual and Firm Licenses

Link: https://youtu.be/Ws4IcCFzWHQ

Reminder: Are You Ready for May 15?

Link: https://youtu.be/h6vHGhP8oj0

Script: North Carolina brokers—mark your calendars! License renewal opens May 15 and runs through June 30, 2026. Don’t wait until the last minute and risk a lapse that could interrupt your ability to practice real estate brokerage.

A few key reminders:

Also, if you’re a Qualifying Broker, renewing your individual broker license is only part of the job. You’re also responsible for making sure your firm license is renewed on time.

Take care of it early, stay compliant, and keep your business moving forward without disruption!

Tech Corner: Video Conferencing Scams Targeting Brokers and Consumers

Fraudsters are exploiting platforms like Zoom and Microsoft Teams to scam brokers and consumers.

How do the scams work?

Fraudsters typically do not hack into Zoom or Teams directly. Instead, they manipulate users into granting access themselves. Here are some of the most common tactics:

What happens after access?

Once access is granted, fraudsters can conduct extensive surveillance on the victim’s computer without their knowledge. This may include:

How to Protect Yourself

Preventing these attacks requires awareness and implementation of proactive security practices such as:

Brokers must remain vigilant, question unexpected requests, and prioritize cybersecurity best practices. If you believe you’ve been targeted, report it to the FBI Internet Crime Complaint Center (IC3).

Tis the Season for CE … Play Nice!

Every year, a major portion of NC brokers take their annual Continuing Education (CE) courses during the last 60 days before the June 10th CE completion deadline. This surge of last-minute course attendance can cause stress and short tempers for students and educators.

Let’s consider some “Rules of Engagement” to help minimize possible issues: