Current Stats: Monthly Licensee Count as of March 1, 2022

The April 20 Commission meeting will be in Fayetteville!

Have you ever wanted to attend a Real Estate Commission meeting to see what it is really all about? Or have you wanted a chance to talk to a Commission member? Are you going to be in the Fayetteville area on Wednesday, April 20? If so, please join us at the Springhill Suites, 4750 Lake Valley Drive, Fayetteville, NC in the Plank/Campbell Meeting Room.

We will be welcoming the public in for coffee at 8:30 AM, with the Commission meeting starting at about 9:00. This is a great opportunity to meet the Commission Members and key staff. You are also welcome to stay for a portion or for all of the Commission’s meeting. Mark your calendars for April 20!

Disciplinary Actions

SUSAN JONES AMICK (CHARLOTTE) – By Consent, the Commission reprimanded Ms. Amick, effective January 17, 2022. The Commission found that Ms. Amick assisted with maintaining the trust accounts at the firm. An audit of these accounts found that two different software systems were being used, which caused reporting issues. Monthly reconciliations of the bank balance and property ledger trial balance were also not occurring. Furthermore, the software system had not been completely set up when it was implemented years ago. Deficit spending was also present and the security deposit did not hold enough personal funds to offset the bank fees. Finally, not all transactions were being reported on the same date in the journal and ledger, which lead to unreliable reporting. The Commission noted that Ms. Amick’s firm has now converted to one software management system and hired an independent auditor who assisted with bringing the accounts into compliance with Commission rules; Ms. Amick’s firm has hired a CPA to assist in oversight moving forward; and Ms. Amick has taken the Basic Trust Account Procedures course.

JANICE R COOPER (PRINCEVILLE) – By Consent, the Commission reprimanded Ms. Cooper, effective February 17, 2022. The Commission found that during her tenure as the BIC of a firm, in January 2021, a broker affiliated with Ms. Cooper listed two residential properties for a seller client. In February 2021, the broker was notified that the properties were owned in part by the heirs of the seller’s deceased ex-husband. The broker failed to disclose to the buyers or closing attorneys that there were additional owners. The first property closed after the broker provided the closing attorney with documents which falsely indicated that the seller-client was widowed, not divorced, and therefore owned the properties. All proceeds went to the seller-client. The closing attorney for the second property discovered the ownership interests. When informed of possible ownership issues, Ms. Cooper failed to advise the affiliated broker to disclose the ownership issues to the buyers but advised the broker to inform the closing attorney and that it would be caught during a title search. The Commission noted that Ms. Cooper assisted with the transaction to get the second transaction closed and the seller-clients have refunded the proceeds from the first transaction.

STEPHANIE D DAVIS (SANFORD) – By Consent, the Commission suspended the broker license of Ms. Davis for a period of 3 years, effective February 1, 2020. The Commission then stayed the suspension effective February 1, 2022. The Commission found that Ms. Davis, acting as BIC of a sole proprietorship, failed to safeguard and account for trust account money and failed to properly maintain trust account records in compliance with Commission rules. Commission staff also determined that Ms. Davis’ trust account was short $11,229.78.

SUZANNE BERNADETTE DAVIS (CHAPEL HILL/ORANGE COUNTY) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Davis effective February 16, 2022. The Commission dismissed without prejudice allegations that Ms. Davis violated provisions of the Real Estate License Law and Commission rules. Ms. Davis neither admitted nor denied misconduct.

KRISTI GALLAGHER FOSTER (BOONE) – The Commission accepted the voluntary surrender of the broker license of Ms. Foster for a period of five years, effective February 16, 2022. The Commission dismissed without prejudice allegations that Ms. Foster violated provisions of the Real Estate License Law and Commission rules. Ms. Foster neither admitted nor denied misconduct.

FOUR SEASONS PROPERTY MANAGEMENT INC (CHARLOTTE) – By Consent, the Commission suspended the firm license of Four Seasons Property Management Inc. for a period of 12 months, effective January 17, 2022. The Commission then stayed the suspension in its entirety. The Commission, during an audit of Four Seasons Property Management Inc.’s trust accounts, found that two different software systems were being used, which caused reporting issues. Monthly reconciliations of the bank balance and property ledger trial balance were also not occurring. Furthermore, the software system had not been completely set up when it was implemented years ago. Deficit spending was also present and the security deposit did not hold enough personal funds to offset the bank fees. Finally, not all transactions were being reported on the same date in the journal and ledger, which lead to unreliable reporting. The Commission noted that Four Seasons Property Management Inc. has now converted to one software management system and hired an independent auditor who assisted with bringing the accounts into compliance with Commission rules and that Four Seasons Property Management Inc. has hired a CPA to assist in oversight moving forward.

MICHAEL ROBERT GRAHAM (MOORESVILLE) The Commission accepted the voluntary surrender of the broker license of Mr. Graham for a period of two years, effective January 19, 2022. In light of the surrender, the Commission dismissed without prejudice a complaint filed against Mr. Graham relating to an alleged misrepresentation of a property’s sewage disposal system.Mr. Graham neither admitted nor denied misconduct.

HIGH COUNTRY VACATION HOMES (BOONE) – The Commission accepted the permanent voluntary surrender of the firm license of High Country Vacation Homes, effective February 16, 2022. The Commission dismissed without prejudice allegations that High Country Vacation Homes violated provisions of the Real Estate License Law and Commission rules. High Country Vacation Homes neither admitted nor denied misconduct.

MARY M. HUNT (LUMBERTON) – The Commission accepted the voluntary surrender of the broker license of Ms. Hunt for a period of five years, effective February 16, 2022. The Commission dismissed without prejudice allegations that Ms. Hunt violated provisions of the Real Estate License Law and Commission rules. Ms. Hunt neither admitted nor denied misconduct.

ELIZABETH HOLLY RAMOS (JACKSONVILLE) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Ramos effective February 16, 2022. The Commission dismissed without prejudice allegations that Ms. Ramos violated provisions of the Real Estate License Law and Commission rules. Ms. Ramos neither admitted nor denied misconduct.

FAWN ELIZABETH THAYER (DURHAM) – By Consent, the Commission suspended the broker license of Ms. Thayer for a period of 4 months, effective February 17, 2022. The Commission found that Ms. Thayer participated in a social media exam study group and actively shared confidential exam information or encouraged others to gather exam information.

JOHN C WELCH JR (CHARLOTTE) – By Consent, the Commission suspended the broker license of Mr. Welch Jr. for a period of 12 months, effective January 17, 2022. The Commission then stayed the suspension in its entirety. The Commission found that as the BIC of a firm, an audit of Mr. Welch Jr.’s trust accounts found that two different software systems were being used, which caused reporting issues. Monthly reconciliations of the bank balance and property ledger trial balance were also not occurring. Furthermore, the software system had not been completely set up when it was implemented years ago. Deficit spending was also present and the security deposit did not hold enough personal funds to offset the bank fees. Finally, not all transactions were being reported on the same date in the journal and ledger, which lead to unreliable reporting. The Commission noted that Mr. Welch Jr has now converted to one software management system and hired an independent auditor who assisted with bringing the accounts into compliance with Commission rules, and that Mr. Welch Jr has stepped down as BIC of the firm.

Employment Opportunities Available

Are you interested in joining the staff of the North Carolina Real Estate Commission? From time to time, employment opportunities become available. They are posted on the Commission’s website under the “About Us” tab.

We currently have opportunities available for the following positions:

Diversity, Equity and Inclusion Officer – The Officer be responsible for creating, implementing, and advancing the Commission’s diversity and inclusion initiatives across the state. Application deadline March 3, 2022.

Click here for more information.

Staff Appearances

Janet Thoren, Director of Regulatory Affairs, spoke at the Durham Regional Association of Realtors meeting on February 2.

Nick Smith, Consumer Protection Officer, spoke at the Allen Tate Realtors meeting on February 8.

Dee Bigelow, Information Officer, spoke at the Dream Team Realty Group meeting on February 10.

A Rose By Any Other Name – Names, Name Changes and Assumed Names

Did you know that Bruno Mars’ real name is Peter Gene Hernandez? If Bruno had a real estate license in North Carolina, he would still need to advertise as Peter Hernandez. A broker may not use a name in their real estate business that is different from the name on their real estate license certificate (which should be their legal name). If Peter Hernandez advertised his brokerage services in the name of Bruno Mars, he would be in violation of the Real Estate License Law.

The following will help guide you in the proper use of your name in advertising.

First Names

Nicknames have always been common, and you can certainly use one in place of your legal first name. The key is to remain readily identifiable to the public and to the Real Estate Commission. Some nicknames are short versions of a longer name and are commonly known. For example, William may go by “Will” or “Bill,” Robert by “Rob” or “Bob,” and Elizabeth by “Liz,” “Beth,” or even “Betsy.” In these kinds of situations, you may use a nickname because your actual name can be easily determined. Similarly, a nickname involving the use of initials in place of your given name is acceptable, as when Thomas Joseph Jefferson goes by “T. Joseph Jefferson” or even “T.J. Jefferson.”

Other nicknames are not logically associated with the user’s first name. For example, if your name is Midlemas Phestus Jones and you use a nickname like “Purple,” a member of the public would have no way of knowing that you are actually “Midlemas.” In order to assure that you can be easily identified, your business cards and correspondence should include your full name together with your nickname. This can be done in various ways. For example, your business card might read, “Midlemas ‘Purple’ Jones, Broker,” and your social media ad could say, “For all your real estate needs, call Purple! (M.P. Jones, Broker).”

Last Names

On the other hand, using a surname that is not your own is not allowed. If you have an awkward or lengthy surname, you may wish that you could shorten or simplify it only in connection with your real estate business. While the goal is understandable, the result is misleading if you haven’t legally changed your name. For instance, if your surname is Furplesnurkle, you can’t simply call yourself “Mr. Furp” or “Mr. Jones” in your brokerage activities, if your legal name remains Furplesnurkle. If a consumer wishes to confirm that you are licensed or wants to file a complaint, it is imperative that you are identifiable.  If you want to become “Furp” or “Jones,” you must legally change your name. The most straightforward way to do this is to go through a judicial name change proceeding before the clerk of court in the county where you reside.

Marital Status

But what about your wife who is also a broker–Mrs. Furplesnurkle? Before she married you, her maiden name was Myrtle Evans. What name can she use now in her brokerage activities? The answer depends on whether she legally changed her name upon her marriage. If she did, then she must use her new, legal name, “Myrtle Furplesnurkle” or “Myrtle Evans Furplesnurkle.” In addition, she must notify the Commission that she has legally changed her name by filing a Request Broker Name Change and to Reissue Real Estate License/Pocket Card form (https://www.ncrec.gov/namechange ) to have her license reissued in her new name. She will need to upload a copy of the marriage certificate and a copy of her driver’s license or other state issued ID with the new name. Myrtle cannot be Myrtle Furplesnurkle to family and friends but be Myrtle Evans on advertising.

If Myrtle did not legally take your name, she must continue to use her maiden name until she legally changes it.

If you later divorce and she wants to revert to her maiden name, she may apply to the clerk of court in the county where she lives. Upon legally resuming her maiden name, she must again notify the Commission on the same form she used when she married you and her license will be reissued in her maiden name.

 Assumed Names

If you don’t want to go to the trouble of changing your name legally, then you should use your legal name in all aspects of your business. You cannot avoid the problem by filing an assumed name registration in the office of the register of deeds. That procedure is only for business names – not for individuals who wish to have a “stage name” like Bruno.

What is an “Assumed Business Name”? For example, when an individual broker/sole proprietor named Alex Robinson advertises as Robinson Realty, Alex is not using an assumed name because Robinson Realty includes the broker’s surname.

If Alex Robinson instead advertises brokerage services (with business cards, ads, etc.) as broker-in-charge of a sole proprietorship under the name, “Luxury Homes 4U Realty,” Alex is now using an assumed business name and must comply with the statute and Commission rule.

The Commission recognizes Assumed Business Names (aka DBAs) for licensed firms and for sole proprietorships, not for individual brokers. Accordingly, the designated broker-in-charge of a sole proprietorship may submit the Request Firm/Sole Proprietorship Name Change and to Reissue Real Estate License/Pocket Card form once they have filed an assumed name certificate for their company. Again, an assumed business name is not meant for Alex Robinson to use the stage name Alex Star when he is really Alex Robinson.

However, if you see an advertisement for Elton John’s brokerage services, it’s okay. He legally changed his name from Reginald Kenneth Dwight back in 1972.

Postlicensing and CE – Myths vs. Reality

What are the differences between the Postlicensing (PL) and Continuing Education (CE) programs? Do they interact with each other? Who is required to complete the courses – and when?

Following are the rules regarding the Postlicensing and CE programs, key points about rule requirements, and clarification of three common myths about the programs.

Postlicensing (PL) Education

Rules 58A .1901-.1905 and 58H .0101-.0415

Key Points:

• PL is a 90 hour program comprised of three 30-hour courses.
• PL course titles are Post 301-Broker Relationships & Responsibilities, Post 302-Contracts and Closing, Post 303-NC Laws, Rules, and Legal Concepts. Course syllabi are provided on this page.
• To remain on or be eligible for active license status, provisional brokers (PBs) must complete all three PL courses within 18 months of the date of licensure.
• If a PB does not complete all three PL courses within 18 months of licensure, their license is placed on inactive status. To be eligible for active status, the PB must complete all three courses within a two-year period.
• Course completion means attending a minimum of 90% of a scheduled course and passing the end-of-course exam with a minimum score of 75%. Note that education providers may have stricter completion requirements.
• PL courses time out after two years. So, if a PB does not complete all three PL courses within a two-year period, the courses will time out and will have to be repeated.

Continuing Education (CE)

Rules 58A .1701 -.1712 and 58H .0101-.0415

Key Points:

• All brokers are required to complete 8 hours of CE comprised of an Update course and one Commission-approved elective, annually between July 1 and June 10.
  — Brokers who do not have BIC Eligible Status must take the General Update (GENUP) course
  — Brokers who have BIC Eligible Status must take the Broker-in-Charge Update (BICUP) course to retain BIC Eligible Status.
• If a broker does not complete all 8 hours by June 10, their license will be placed on inactive status on July 1, provided the license is timely renewed by June 30. To be eligible for active status, the broker must follow the steps laid out in rule 58A .1703.
• Course completion means attending a minimum of 90% of a scheduled course. Note that education providers may have stricter completion requirements.
• The only exception to this requirement is that newly-licensed brokers are not required to complete CE prior their first license renewal.

MYTHS and REALITY

MYTH: If a PB completes all three PL courses within the first year of licensure, the broker will have to take CE right away.

REALITY: PL and CE are separate programs. Completion of PL courses does not affect CE deadlines, nor does completion of CE affect PL deadlines.

Example: Provisional Broker Pat was licensed on August 24, 2021.

• Pat’s Postlicensing education deadline will be February 24, 2023, which is 18 months after licensure.
• Pat will not have to take CE by June 10, 2022, because Pat will renew their license for the first time during May 15-June 30, 2022. Pat will be required to take CE sometime between July 1, 2022, – June 10, 2023.
• When Pat completes all 3 Postlicensing courses, the provisional status is removed from their license. The timing of Pat’s Postlicensing course completion has no impact on Pat’s first CE deadline.

MYTH: You have to complete CE before you can renew your license.

REALITY: CE and renewal are separate requirements.

Licenses must be renewed annually during the May 15-June 30 renewal period. If a license is not renewed by June 30, it will expire.
In order to maintain active license status – or be eligible for active license status – brokers must complete CE each year between July 1-June 10.
In other words, you can renew your license as early as May 15 and complete your CE as late as  June 10. Also, you can renew your license without completing CE; in such case, your license will be on inactive status but will not expire on July 1.

MYTH: The content of the Update course is the same every year.

REALITY: The Commission determines Update course topics each year based on industry issues and trends.

Update course topics and materials from previous years are provided on this page. Do you have questions about the PL or CE programs? Contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700, x772.

Current Stats: Monthly Licensee Count as of February 1, 2022

CE Required for Brokers with BIC Eligible Status

Do you have BIC Eligible status? Are you a designated BIC? Do you know which CE courses you need to take?

Rule 58A .1702 requires brokers who hold BIC Eligible status to take the BICUP (Broker-in-Charge Update) course and one Commission-approved elective each year in order to maintain active license status and BIC Eligible status. A broker with BIC Eligible status who takes the General Update course and an elective will maintain an active license but will lose BIC Eligible status (and, in turn, BIC designation).

For more information or to ask a question, contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700.

Staff Appearances

Sheryl Graham, Consumer Protection Officer, spoke at the Greater Orange Chatham County Board of REALTORS meeting on January 12.