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Reminder: Course Completion Certificates

Video link: https://youtu.be/skAc2ffNAd0

Have you recently completed a continuing education course? Do you have a course completion certificate?

Course completion certificates are for your personal records and should be kept in your file. Your education provider is responsible for reporting your course completion to the Commission within seven days of finishing your course. This ensures your course completion is recorded and posted in your license record. But, if a question arises about whether you took a particular course, having the completion certificate will help alleviate any questions.

For further questions or assistance, please visit the Commission’s Support page.

Don’t Wait: Complete Your CE Early and Stay Ahead for 2025!

While the CE deadline may be June 10, 2025, at 11:59 PM EST, you don’t have to wait until May to start thinking about your continuing education.

What Are the CE Requirements?

According to Rule 58A .1702, brokers must complete eight (8) hours of CE annually to maintain an active license.

Unsure Which Update Course You Need?

Log into your license record on the Commission’s website to confirm your license status before registering for a course.

Finding and Registering for CE Courses

CE courses are available in a variety of formats to suit your schedule and learning preferences:

To Search for In-Person and “Live-Online” CE Courses:

  1. Visit www.ncrec.gov.
  2. Click on the Education menu.
  3. Select Search CE Course Schedules.
  4. Click on Search Providers to see a full list of scheduled courses.

You can refine your search by provider, instructor, or city. Contact the education provider directly to register.

To Search for Self-Paced, Online CE Elective Courses:

  1. Visit www.ncrec.gov.
  2. Click on the Education menu.
  3. Select List of Distance CE Providers.

This will display a list of providers offering self-paced elective courses. Contact the provider directly to register.

Don’t Wait Until the Deadline

Avoid the stress of last-minute course completion by planning ahead and completing your CE requirements early. Staying proactive ensures you have plenty of time to choose the courses that best fit your schedule and professional goals. While you can’t predict what life may throw your way, you can ensure your education requirements are met well before the deadline.

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

Calling All Certified Education Providers, Approved Instructors, and Education Directors… Shine Bright at the North Carolina Real Estate Commission’s Educator’s Conference!

Video Link: https://youtu.be/Ao7a__WyAzI

Are you an approved instructor, education director, or certified education provider with the Commission? Do you want to take your real estate education career to the next level?

Join us at the highly anticipated Educator’s Conference, where we’ll show you how to become an Education Star in the ever-evolving world of real estate. This dynamic event will cover everything from maximizing the benefits of course audits to mastering the latest revisions in the Prelicensing syllabus and exam. Also, you will discover innovative strategies to effectively engage your students and learn how to harness the power of technology to elevate your teaching methods.

Don’t miss this opportunity to connect with other educational professionals, exchange ideas, and leave inspired to transform the classroom experience. Mark your calendar for March 27 and get ready to shine!

The Importance of Maintaining Your Business Entity with the NC Secretary of State

The Commission would like to remind licensed real estate firms and certified education providers of the critical importance of maintaining their business entities with the North Carolina Secretary of State (NCSOS). Ensuring your entity remains in good standing with the NCSOS is not just a formality but is a legal requirement with serious consequences for noncompliance.

Annual Requirements with the NCSOS

All entities registered with the NCSOS, including corporations, LLCs, and limited partnerships, must meet annual requirements to maintain their active status. These requirements typically include filing an annual report and paying any associated fees by the designated deadline. However, specific obligations can vary based on the type of entity. The Secretary of State has a page on its website which breaks down these ongoing obligations for each type of entity into more detail.

Consequences of Noncompliance

Failing to meet these requirements may result in the administrative dissolution, revocation, or suspension of the entity by the NCSOS. Without an active and compliant status, the entity is prohibited by law from conducting any business activities, including engaging in real estate transactions or offering education as a certified provider.

To ensure compliance, the NCREC conducts regular checks of licensed real estate firms and certified education providers registered with the Secretary of State. If your entity is found to be administratively dissolved, revoked, or otherwise not in good standing with the NCSOS, the Commission will require immediate corrective action.

Even if your firm license or education provider certification remains active and in good standing with the Commission, you cannot lawfully conduct business through an entity that is not in compliance with the Secretary of State. Entities must reinstate their status before resuming business operations. Failure to comply with NCSOS requirements can result in the cancellation of your firm license or education provider certification.

However, any action taken by the Commission is only the beginning of the potential repercussions for failing to maintain your entity’s status with the NCSOS. Operating through an entity that has been administratively dissolved or revoked exposes brokers to significant legal and financial risks. Under North Carolina law, an inactive entity cannot enter into enforceable contracts, which could invalidate real estate transactions and agreements, leaving both you and your clients at significant risk. Additionally, continuing to conduct business through a noncompliant entity may result in personal liability for business debts and obligations, as the legal protections offered by the entity structure may no longer apply. Brokers who knowingly continue to operate through a dissolved or revoked entity could find themselves personally responsible for legal claims, penalties, or damages arising from real estate transactions.

Avoiding Disruption to Your Business

Maintaining your entity with the Secretary of State is a straightforward process. File your annual reports, pay any required fees on time, and address any compliance issues promptly. If your entity’s status becomes inactive or noncompliant, act quickly to reinstate it to avoid serious legal consequences. The NCSOS provides an online system where you can check your status and file necessary documents to remain in good standing.

Failure to maintain your entity’s status will not only disrupt your ability to conduct business but could result in significant legal and financial consequences. While the Commission can cancel your firm license or education provider certification if you fail to resolve your status, the loss of limited liability protections and legal standing is also a considerable  risk. For more information about the annual requirements to maintain your entity with the NCSOS, you will want to visit their website at www.sosnc.gov.

Tech Corner: Maintaining a Professional Online Presence

Video link: https://youtu.be/8MDeKTIFbC0

In today’s digital world, social media has become a crucial tool for growing businesses looking to build their brand and foster relationships with clients. By effectively using social media platforms, real estate brokers can set themselves apart from others and expand their network. Whether you’re just getting started or looking to enhance your online presence, it is important to keep yourself safe while being mindful of what you say on the internet and how you say it.

  1. Why social media? Social media is a powerful business tool that allows real estate brokers and firms to connect with potential clients, build new relationships, and establish a strong online brand presence. Brokers can showcase properties, advertise services, and offer tips to consumers.
  2. How can I protect my personal information? It is important to take personal safety into consideration when using social media. Brokers may want to separate their personal profiles from their business profiles. Use strong, unique passwords for both personal and business social media accounts. Enabling two-factor authentication for added security helps to protect both types of accounts. Be mindful of oversharing personal details, especially if you have public-facing business accounts. Avoid sharing private moments that could potentially harm your professional reputation.
  3. What can I share? Your business accounts should maintain a professional, clear, and consistent tone appropriate for your brand and audience.The Commission has received complaints about brokers posting offensive content on social media. Posts that someone may consider offensive (e.g. discriminatory, political, angry rants, etc.) may not only damage your business and reputation but may lead to complaints with consumer websites, professional groups or associations, your firm and the Commission. Brokers are entitled to express their opinions and political beliefs. Being rude is generally not enough to constitute a violation of the License Law or Commission rules. On the other hand, the Commission may reprimand, suspend or revoke the license of a broker who is unworthy to act as a broker in a manner as to endanger the public interest. This could include conduct such as threatening physical harm or violence. As brokers continue to expand their use of social media to network and promote their businesses, brokers should carefully consider the effect of their online presence, particularly on professional pages. A firm’s broker-in-charge (BIC) should also consider using written office policies to address their broker’s conduct in communicating in person and online. For more information, review the eBulletin article, Think Before You Speak…or Post.

By taking these steps, you can maintain privacy and security for both your personal and professional life, reducing the risks of data breaches, identity theft, and unwanted cross-over between your personal and business worlds. The choices you make online can leave a long-lasting digital footprint, making it more important than ever to be intentional about the digital you leave behind.

Medicaid Liens on Real Property

Recently, brokers have been requesting information on Medicaid liens for properties that are being voluntarily sold and placed on the market. This article was written to help clarify the source, nature and effect of Medicaid liens on real estate.

Medicaid is a federal program, established in 1965, that is managed individually by each state to provide healthcare coverage for individuals who do not qualify for welfare but still have incomes low enough that they cannot afford healthcare on their own. In North Carolina the Medicaid program is administered by the North Carolina Department of Health and Human Services (DHHS).

Medicaid eligibility is based on limited assets. A Medicaid recipient is entitled to retain their home as a primary residence so long as the home’s equity does not exceed a certain amount, which can change year to year.

Should the recipient require long term care, such as a nursing home, then Medicaid rules envision using the equity in the home to recover those expenses and recovering the costs from the homeowner. More information is available from the NC Department of Health and Human Services,  

As part of these recovery programs, Medicaid will place a lien on the real estate for the amounts expended for care. It is not uncommon with extended care facilities or nursing homes for those costs to be thousands of dollars per month. While Medicaid has a lien on the property, the program is precluded from foreclosure as a lien holder under certain circumstances such as when:

For real estate professionals, this means that there could be a Medicaid lien on the property, which is not being foreclosed upon, but which will need to be satisfied in full with the NC Department of Health & Human Services should the owners wish to engage in a voluntary sale of the property.

Many recipients and family members may believe that the home is an exempt asset. While the home is considered an exempt asset for purposes of Medicaid qualification, it may still be subject to liens by Medicaid. Determining the amount of the lien and obtaining approval for the sale from government entities may take longer than the parties anticipate. It is also possible that the existence of the lien may affect the decision or ability of the owners to transfer the property. As a result, advice from an attorney in such situations is strongly encouraged.

When a broker is aware that a Medicaid lien is attached to the property, the broker should disclose this to any prospective buyer.  Listing brokers who are aware that their seller-client is receiving Medicaid should inquire about the existence of a Medicaid lien. If one exists, listing agents  should strongly encourage sellers to speak with an attorney specializing in Medicare benefits prior to listing their home.

Reminder: Reconcile Your Trust Account Knowledge

Commission Rule 58A .0110(g)(9) requires Brokers-in-Charge to complete the Commission’s Basic Trust Account Procedures Course within 120 days of assuming responsibility for a trust account provided they have not already completed the course within the previous three years. If the BIC never opens another trust account or assumes control of another one, they are not required to complete the course again.

Even so, BICs are encouraged to complete the course on a more routine basis. For the 2020-2021 license year, the mishandling of trust account funds resulted in almost 20% of all disciplinary actions. The Commission has since revamped its Basic Trust Account Procedures Course and now offers it through distance (self-paced online) delivery on our Online Training Portal (https://learn.ncrec.gov). While trust account issues have slowed, mismanagement of the funds of others remains an ongoing issue.

While all licensees must safeguard and protect the money and property of others entrusted to them, the ultimate responsibility to oversee and safeguard the monies of others passing through the office rests with the BIC. The BIC remains responsible for the trust account, even if they hire an assistant, accountant, or bookkeeper to assist with record-keeping. Brokers should be mindful of the fact that embezzlement can happen even with trusted bookkeepers or long-time employees, and it is made easier when there is no oversight of their activity.

Since the responsibility ultimately falls on the Broker-in-Charge, it is in their best interest to maintain a working knowledge of how to properly maintain a trust account. BICs who complete the course will, at a minimum, learn what they need to know to adequately supervise their bookkeeper and what the software program needs to be able to produce in the way of reports in order to be compliant. As a bonus, it also qualifies as an elective continuing education course.

Whether a Broker-in-Charge personally maintains their brokerage’s trust account or delegates that responsibility to others, it is essential they maintain an active working knowledge of the rule requirements regarding the handling and reconciliation of funds in that trust account. Even if a BIC is in compliance with the minimum requirement to complete the Basic Trust Account Procedures Course once, it is highly recommended they regularly review and complete the course in order to ensure the safeguarding of their clients’ money and for the protection of their own business.

They Did What?! 

Prior to listing their property, the Seller completed the Residential Property and Owners’ Association and Disclosure Statement (RPOADS) and Mineral and Oil and Gas Rights Disclosure Statement (MOG). The Seller marked “No Representation” for their responses on the RPOADS.

Buyer and Seller went under contract using the NCAR/NCBA Standard 2-T Offer to Purchase and Contract. During the Due Diligence Period, Buyer discovered an issue that the Seller chose not to repair, nor did the seller offer concessions. Buyer terminated the contract and requested the return of the non-refundable Due Diligence Fee (DDF). The buyer agent (BA) threatened to file a complaint against the listing agent (LA) with the Commission if the Seller did not refund the DDF based on the seller’s lack of disclosure. The repair issue in question may or may not have been something the LA should or could have reasonably known existed.

In North Carolina, a broker should consider the following points:

If you have any questions or need further clarity, you may email Regulatory Affairs at regulatoryaffairs@ncrec.gov.

Is a Federal BOI Filing Required for a NC Brokerage Entity?

The federal Corporate Transparency Act (CTA) was passed in 2021 and included significant reforms to prevent money laundering, combat terrorist funding and reduce corruption and tax fraud. Part of the CTA was the creation of an e-filing system that would require certain types of U.S. and foreign entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.

The mandatory report is called a Beneficial Ownership Interest Report (BOIR). Most LLCs, corporations and other legal entities are required under the new law to file the BOI Report with FinCen or face potential substantial penalties.

The law is currently the subject of legal challenges. Filing deadlines have been imposed, temporarily halted, and reinstated. The North Carolina Real Estate Commission recommends that brokerage entities in North Carolina who have not already filed promptly seek out specific legal advice as to how the law applies to them and any filing deadline to which the brokerage firm may be subject.   More information is available at https://www.scotusblog.com/case-files/cases/garland-v-texas-top-cop-shop/.

Artificial Intelligence: NC Real Estate Commission

Link: https://youtu.be/Naqv7biI6JI

The North Carolina Real Estate Commission first introduced artificial intelligence in its January 2024 eBulletin. AI has become an important part of our outreach, allowing the Commission to deliver more effective and engaging content for both real estate professionals and the public.

The Education and Licensing Division has published over 50 AI videos this year for consumers, brokers, and educators. The addition of these new resources led to a redesign of our YouTube Channel, @NCREC. The YouTube channel gained more subscribers in 2024 than ever before, with a 24% increase.

The surge in subscribers shows the growing demand for accessible real estate education and reliable resources. To further expand our reach, these AI videos were also shared across NCREC’s social media channels, most notably on Facebook. The Facebook page saw an increase in engagement, with an additional 3,000 visitors compared to 2023. Not only did the page see increased visits, but its overall reach metric grew by over 7,500, meaning that more individuals viewed the Commission’s content. Another exciting milestone for NCREC in 2024 was the launch of unique, AI videos on social media. These videos had over 32,500 views.

However, NCREC’s use of AI doesn’t end with video content. At the Educator’s Conference held in March 2024, the Education and Licensing Division took a deep dive into AI, offering a detailed presentation on how artificial intelligence can be used for real estate education. Staff introduced tools like Synthesia for video creation, Adobe Firefly for graphic design, and ReadAI for conducting video meetings. They further demonstrated how these tools can simplify processes, enhance presentations, and improve overall education.

Looking ahead, NCREC remains committed to embracing new technologies as they emerge. As AI continues to evolve, so too will the Commission’s efforts to protect the public interest in real estate brokerage transactions. While AI can be a powerful tool for learning and communication, it is important to note that it still requires careful oversight, like verifying the accuracy of information. Review the article, “Generative Artificial Intelligence and Copyright Law” to familiarize yourself with AI copyright laws.

The North Carolina Real Estate Commission’s first year of utilizing AI has seen impressive growth and innovation. As we move forward into 2025, NCREC will continue to use the power of AI to provide valuable, accessible, and accurate resources for consumers, brokers, and educators.