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Diversity, Equity, and Inclusion Updates

October is LGBTQ+ History Month, a month long observance of lesbian, gay, bisexual, transsexual, and queer (LGBTQ) history and the history of gay rights and related civil rights movements. LGBTQ+ History Month focuses on recognizing and celebrating the historical achievements in the LGBTQ+ community and creating opportunities for education and engaging in healthy and open discussions. October was selected as LGBTQ+ History Month to commemorate the march on Washington for gay and lesbian rights (October 14, 1979) and to coincide with National Coming Out Day (October 11th, first celebrated in 1988). LGBTQ+ History Month is not to be confused with Pride Month which is celebrated in June and focuses on uplifting, LGBTQ voices and support of LGBTQ+ rights. 

To learn more about LGBTQ+ History Month, Pride Month, and other LGBTQ+ historical facts about the observances above, or any other holidays or observances, refer to the links below:

Gay Rights: Movement and Marriage Rights | HISTORY

Histories of the National Mall | National March on Washington for Lesbian and Gay Rights

Home | Equality Forum

National Coming Out Day – Human Rights Campaign

Lesbian, Gay, Bisexual, Transgender and Queer Pride Month | Library of Congress

LGBTQ+ Real Estate Alliance

Staff Appearances

Sheryl Graham, Consumer Protection Officer, and Lyndi James, Auditor, spoke at Carteret County Association of REALTORS ® on September 12.

Chad Wilson, Auditor, spoke at Highlands-Cashiers Board of REALTORS ® on September 20.

Sheryl Graham, Consumer Protection Officer, spoke at HomeTowne Realty on September 21.

Sarah Dixon, Associate Legal Counsel I, spoke at High Point Regional Association of REALTORS ® on September 27.

Brian Heath, Consumer Protection Officer, spoke at Charlotte Regional NARPM ® on September 28.

Bruce Rinne, Information Officer, spoke at Century 21 Liberty on September 28.

Len Elder, Director of Education and Licensing, spoke at the North Carolina Real Estate Educators Association Conference on September 29.

Kizzy Crawford Heath, Legal Education Officer, spoke at the North Carolina Real Estate Educators Association Conference on September 29.

Tech Corner: What is the Telephone Consumer Protection Act?

Do you use text messaging as a marketing tool? Are you complying with the Telephone Consumer Protection Act?  

Communication is essential in the real estate industry; therefore, some licensees are using telemarketing as a tool to grow their brokerage businesses. However, if telemarketing tools are being used, licensees should be familiar with the Telephone Consumer Protection Act.

The Telephone Consumer Protection Act (hereafter known as “TCPA”) was created in 1991 and is the primary telemarketing law in the United States. It protects consumers from unwanted and invasive telemarketing calls and is governed by the Federal Communications Commission (FCC). The Act primarily addresses the use of automated telephone equipment, prerecorded voice messages, and unsolicited fax messages. However, the TCPA also applies to calls and messages made for marketing purposes, which may include promotional and/or sales-related communications.

Essentially, the TCPA emphasizes the consumers’ right to privacy by mandating businesses use the following measures when telemarketing:

If licensees are going to use telemarketing as a communication tool, they must adhere to the requirements in the TCPA. If you have questions regarding whether or not your communication is in compliance with the TCPA, you should seek the advice of an attorney.

Current Stats: Monthly Licensee Count as of September 1, 2023

NCREC Wins 3 ARELLO Awards at the Conference

[Pictured L to R]: S. O’Connor, J. Malarney, L. Elder, B. Aceto, J. Thoren, M. Black, M. Baer, T. Lindsey, W. Bullard accepting the ARELLO Awards.

The Commission won the following awards:

ARELLO EDUCATION AWARD – Continuing Education

To NCREC for identifying the need for education on the hot topics of wire fraud and cybersecurity. For integrating multiple agencies and stakeholders into a unified presentation with multiple presenters and awarding real estate CE credit, attorney CLE credit and paralegal credit in a single course. For incorporating training videos, best practices and tools for risk mitigation. For orchestrating and coordinating multiple venues and locations across the state. For integrating the innovative use of QR codes and Sharefile in the delivery of student materials.

ARELLO EDUCATION AWARD – Instructor Training & Development

To NCREC for hosting an instructor education and training event for over 350 attendees from across the state. For the creative and innovative theming of the event as NCREC  TREK and incorporating a Star Trek theme. For exploring new worlds of education and delivery modes with topics such as course audits, effective teaching with technology, assisting instructor performance with problem licensing exam topics, enhancing student engagement and the leverage of learning objectives.

ARELLO COMMUNICATION AWARD – Website Innovation & Design

To NCREC for the creation and implementation of the LADS database system for instructors and education providers. For enhancing the efficiency and accuracy of tracking instructor and education provider data. For processing in real time license examination statistics. For creating reports and statistics segregated by education provider, instructor and delivery mode to allow for enhanced decision making and insight into student examination performance.

Caught Off Guard – What You Should Do

Have you ever shown a property and walked into an unexpected situation? Many brokers have no idea how they might respond in an emergency until they are faced with one. This article is designed to help you consider scenarios that could occur and be prepared in advance with a proper response. What would you do if you discovered smoke? What about a burst pipe where water could potentially flood throughout the house? In these situations it is likely that you would call for help immediately, whether 911 or the listing agent/property owner or someone who could address the issue. But what would you do if you encountered a person in the property, legally or not, who may be in some sort of distress? Would you leave and go to the next property? Would you call for help, or attempt to notify the listing agent or owner?

Discovering People in Unknown Condition/Situations

There have been many instances of licensees entering properties for business purposes and unexpectedly discovering someone is there. Some situations are simple mistakes, confused timing of showings, forgotten appointments. Others are more alarming, like someone who has broken into a vacant home and is living there. What if you encounter someone who is unresponsive, and you are not clear about if they are in distress or not?

Action you can take:

  1. If someone appears to be unresponsive, and you are not trained to render aid, a call to 911 or local police could allow the person to receive assistance from someone who is. If you are uncomfortable or alarmed, exit the property and get to safety, then call for assistance.
  2. If you are unsure whether a situation warrants a call to police or emergency responders, the safest course is to call 911, tell them the facts, and let them assess whether an official response is warranted. In addition, call your Broker-In-Charge or another trusted advisor and share the scenario with them to get an opinion of any other action that might be warranted.
  3. You should always immediately notify the listing agent of your experience and allow them to follow up as needed with their client or local authorities.

Discovering Property in Danger

If you enter a property and discover a situation damaging/affecting the property, like a fire or flood, remember that you have a duty to protect the seller’s property while showing it. It is not advisable to walk away and do nothing. At a minimum a broker must take reasonable steps to contact the listing agent or owner and report the issue. Is there an affirmative duty to also contact emergency services? Not specifically by law, but an agent’s duty to safeguard and protect the property may require you to do so.

Action you can take:

  1. If you discover an imminently dangerous condition, get yourself/clients to safety first.
  2. Once safe, call 911 if a situation such as a fire exists, that could cause harm to property or others.
  3. If not a significantly dangerous situation, contact the listing agent or property owner, and/or authorities that can address the concern appropriately.
  4. Notify your BIC and record a note for your records of the event and your actions in the file, in the case that questions come up later about what happened or about action you took.

Liability Concerns of Brokers

Brokers often express concern that if they encounter a person in distress, they don’t have the proper training or duty to render aid, or that they might be liable under North Carolina law. In fact, North Carolina law provides in NCGS § 90-21.14 that any person who renders first aid or emergency treatment to a person who is unconscious, ill, or injured, and receives no compensation for that assistance, “shall not be liable for damages for injuries alleged to have been sustained by the person or for damages for the death of the person alleged to have occurred by reason of an act or omission in the rendering of the treatment unless it is established that the injuries were or the death was caused by gross negligence, wanton conduct, or intentional wrongdoing on the part of the person rendering the treatment.”  

Other Considerations/Actions:

  1. It is never a good idea to make social media posts about situations where you found someone in any sort of distress.
  2. If you are alarmed or in distress yourself, get to a place of safety and call for help.
  3. If you discover someone deceased in a property, call the police immediately; likewise, if you discover someone unconscious or in apparent medical distress, call 911.
  4. 4. If you discover an animal deceased in the property, immediately notify the listing agent/owner
  5. If you discover a squatter or evidence of one in a vacant property, notify listing agent/owner.
  6. If you discover property damage that was unexpected (broken window or door, tree on roof, etc.), notify listing agent/owner.
  7. Keep meticulous records, so that you can answer/respond if questions come up about a situation that you inadvertently found yourself in.

The October 11, 2023 Commission Meeting will be in Asheville, NC!

The North Carolina Real Estate Commission is pleased to announce that it will be holding its October 11-12, 2023, business meeting and hearings in Asheville, North Carolina.

You are cordially invited to join the Commission members for coffee on Wednesday, October 11th at 8:30, before the meeting begins, and to stay or attend the meeting at any time throughout the day.

The business meeting is expected to begin Wednesday at 9:00 and lasts until mid-afternoon. The meeting will be held at:

Kimpton Arras

7 Patton Avenue

Asheville, NC 28801

The Commission members welcome the opportunity to meet you and hear your thoughts. While not required, we will appreciate your RSVP by October 4th to exec@ncrec.gov for planning purposes.

Reminder: Do I Need a Firm License?

Have you created an LLC, corporation, partnership, or other type of business entity to conduct brokerage activity? Has the LLC, corporation, partnership, or other type of business entity received compensation? Does this business entity have a firm license?

Rule 58A .0502 dictates that every business entity other than a sole proprietorship shall apply for and obtain from the Commission a firm license prior to engaging in business as a real estate broker. Therefore, if you have created an entity to conduct brokerage activity or to receive compensation, you must apply for a firm license.

To complete a firm license application, you must:

The firm must have one principal who holds a broker license on active status in good standing to serve as the qualifying broker (QB). The QB is responsible for:

To apply for a firm license, go to www.ncrec.gov and click on Apply for a Firm License. If you have any further questions about the firm licensing process, contact the Education and Licensing Division at 919.875.3700.

Disciplinary Actions

JUSTIN RYAN WINSTEAD (DURHAM) – Following a hearing, the Commission permanently revoked the broker license of Justin Winstead, effective June 27, 2023.  The Commission found that Winstead, the qualifying broker and broker in charge of Harper Homes LLC, purchased a home and completed renovations with the intent to “flip” the property.  Winstead did not hire a licensed general contractor and failed to obtain a certificate of occupancy and permits for the renovations, as required by the locality.  Winstead failed to disclose this information to the buyer prior to the time of offer.  The buyer learned there was no CO when the power company would not connect power to the home for the home inspection.  Despite several contract extensions agreed to by the buyer, Winstead failed to obtain the necessary permits and CO.   Winstead failed to complete the BICUP course as required and was removed as the broker in charge of Harper Homes LLC, leaving the firm without a broker in charge.  Winstead failed to respond to three (3) letters of inquiry from the Commission.

HARPER HOMES LLC (DURHAM) – Following a hearing, the Commission permanently revoked the firm license of Harper Homes LLC, effective June 27, 2023.  The Commission found that Justin Winstead was the broker in charge of Harper Homes LLC.  Winstead failed to complete the BICUP course as required and was removed as the broker in charge, leaving the firm without a broker in charge.   Harper Homes LLC listed a home for sale when the firm did not have a broker in charge.  

RICHARD KELTON (HOLLY SPRINGS) – The Commission accepted the permanent voluntary surrender of the real estate license of Kelton, effective August 16, 2023. The Commission dismissed without prejudice allegations that Kelton violated provisions of the Real Estate License Law and Commission Rules. Kelton neither admitted nor denied misconduct.

SCOTT E. GUPTON (NEW BERN) – The Commission accepted the permanent voluntary surrender of the real estate license of Gupton, effective August 16, 2023. The Commission dismissed without prejudice allegations that Gupton violated provisions of the Real Estate License Law and Commission Rules. Gupton neither admitted nor denied misconduct.

KENT ALLEN DAUDERMAN (CARY) – The Commission accepted the permanent voluntary surrender of the real estate license of Dauderman, effective August 16, 2023. The Commission dismissed without prejudice allegations that Dauderman violated provisions of the Real Estate License Law and Commission Rules. Dauderman neither admitted nor denied misconduct.

SHARON LYNN PARKER (HIGH POINT) – By Consent, the Commission reprimanded Parker, effective August 1, 2023.  The Commission found that Parker, acting as the broker-in-charge and qualifying broker of Wellington Advisors LLC, failed to adequately supervise the firm’s Chief Operating Officer that used a company credit card for personal use and misapplied approximately $306,000 in funds from client trust accounts.

WELLINGTON ADVISORS LLC – By Consent, the Commission reprimanded the firm effective August 1, 2023.  The Commission found that the firm’s Chief Operating Officer used a company credit card for personal use and misapplied approximately $306,000 in funds from client trust accounts.

DEBRA THOMAS PARSONS (ROCKINGHAM) – By Consent, the Commission reprimanded Parsons, effective August 1, 2023.  The Commission found that Parsons represented a buyer and failed to adequately disclose the possibility of a 4-lane bypass planned by the North Carolina Department of Transportation that could affect the subject property.

TONY L, CLONINGER, JR (DENVER) – By Consent, the Commission suspended the broker license of Cloninger for a period of 12 months, effective August 1, 2023, but stayed the suspension after 1 month upon certain conditions.  The Commission found that Cloninger listed a subject property for sale and attached a copy of an expired septic permit from 2006.  Potential buyers terminated the purchase contract and notified Cloninger that it was due, in part, to the difficulty of obtaining the septic permit. Cloninger then re-listed the subject property, failing to disclose the septic permit information. Another buyer went under contract for the subject property and, after learning a conventional septic may not be possible, terminated the contract.  Cloninger listed the subject property for a third time failing to disclose the septic permit information; the property went under contract with a subsequent buyer who also terminated due to issues with the septic. 

Diversity, Equity, and Inclusion Updates

The widely acclaimed 2017 publication, The Color of Law, by Richard Rothstein argues that the racial segregation of Americans in residential communities is not so much a result of personal preference as it is the result of discriminatory government policies dating from the 1800s until the passage of the federal Fair Housing Act of 1968. The Fair Housing Act prohibited future discrimination but did not reverse deeply ingrained residential segregation. Rothstein uses evidence and extensive detail to present an analysis of historical data and events to highlight the de jure segregation across the country, and the lasting impact on African Americans.

With the 2023 publication of Just Action: How to Challenge Segregation Enacted Under the Color of Law, Rothstein and  his daughter, Leah Rothstein, advocate for housing reforms on a national level, and outline targeted strategies for  undoing segregation. Just Action details the importance of redressing historical inequities in communities through intentional action and programing. It provides a blueprint for concerned citizens and community leaders to hold perpetuators of systemic discrimination accountable and take responsibility for reversing the harm caused.

You can learn more about, or purchase, these books through any book retailer.