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The 12-hour Broker-in-Charge Course is Now a Self-paced, Online Course!

Brokers who wish to obtain BIC Eligible status must complete the 12-hour Broker-in-Charge (BIC) Course. Previously, the course was comprised of two segments, an 8-hour, self-paced online segment, and a 4-hour live segment instructed by Commission staff. However, as of July 1, 2021, the 12-hour BIC Course is a distance course, meaning it is a self-paced, online course.

Following are a few of the most frequently-asked questions about the 12-hour BIC Course.

How do I register for the 12-hour BIC Course?

To register for the 12-hour BIC Course:

  1. go to the Commission’s learning site (https://learn.ncrec.gov/);
  2. click on Register for New Courses;
  3. click on 12-hour BIC Course;
  4. click on Add to Cart; and
  5. click on Checkout.

In order to complete the purchase and begin the course, you will either need to login to your account on this site, or, if you have not previously created an account, you will need to create one. Be sure to enter your broker license number during registration if you wish to receive CE credit for the course.

Once the purchase is complete, you have a 30-day period of access to the course, per Commission Rule 58H .0404. If you fail to complete the course in full EITHER within 30 days from the date of registration OR by 11:59pm EST on June 10, whichever occurs first, then you will be required to register and pay for the course again and to restart the course.

When must I take the 12-hour BIC Course?

The 12-hour BIC Course must be completed EITHER within the year period prior to application for BIC Eligible status OR within 120 days after being granted the status.

What happens if I fail to complete the 12-hour BIC Course within 120 days of obtaining BIC Eligible status?

If you fail to complete the 12-hour BIC Course within 120 days after being granted BIC Eligible status, your BIC Eligible status, and, in turn, BIC Designation, will be terminated. In such case, you will not be granted BIC Eligible status again until the course is completed.

Will I get CE credit for the 12-hour BIC Course?

Yes. Upon successful completion of the 12-hour Broker-in-Charge Course, you will receive 4 hours of CE elective credit. The 12-hour BIC Course does NOT provide CE Update course credit.

For more information regarding the 12-hour BIC Course, contact the Commission’s Education and Licensing Division at LS@ncrec.gov or 919.875.3700.

Wendell Bullard Elected Chair and Mel Black Elected Vice Chair

Executive Director Miriam Baer announced that Wendell Bullard of Durham has been elected as Chair and Mel Black of Raleigh as Vice Chair of the North Carolina Real Estate Commission. Their terms will begin on August 1, 2021.

Wendell Bullard was appointed to the Commission by Governor Cooper in 2018. Licensed in 1994, he is Managing Broker at Bullard Properties, LLC, in Durham. He has experience in commercial brokerage, land, and residential sales. Bullard is a past President of the Durham Regional Association of REALTORS® and the North Carolina Association of REALTORS® and is a past REALTOR® of the Year in both organizations. He also served as a NAR® Director and REALTOR® Party Liaison for Community Engagement.

Mr. Bullard is also an original founding member of several charter schools in North Carolina.  He holds a B.S. in Marketing from North Carolina Central University and is a United States Air Force Security Specialists veteran.

Mel Black was appointed to the Commission by Governor Cooper in 2019. As a real estate and appraisal educator, Mr. Black develops and delivers real estate curriculum for the Colibri Group. As an attorney in private practice with Everett Gaskins Hancock, LLP, he focuses on administrative law and occupational licensing. Mr. Black is a third-generation broker and second-generation appraiser in North Carolina. He has been licensed as a broker since 1988 and certified as an appraiser since 1991.

Mr. Black is the former Executive Director of the North Carolina Appraisal Board and former Education and Examination Officer with the North Carolina Real Estate Commission.

He has been elected to multiple national positions, including president of the Association of Appraiser Regulatory Officials, member of The Appraisal Foundation Advisory Council and its State Regulator Advisory Group, and member of the Board of Directors of the Council on Licensure, Enforcement and Regulation. For his service to North Carolina, Mr. Black was inducted into the Order of the Long Leaf Pine.

Mr. Black was named Educator of the Year by the North Carolina Real Estate Educators Association and received the Larry A. Outlaw Excellence in Real Estate Education Award from the North Carolina Real Estate Commission.

He holds a Juris Doctorate from the North Carolina Central University School of Law, an Educational Specialist degree from Appalachian State University, a Masters of Education from Winthrop College, and a Bachelor’s degree from the University of the State of New York. Mr. Black and his children, Andrew and Mari, are based in Raleigh.

Current Stats: Monthly Licensee Count as of July 1, 2021

Effective July 1st: NEW WWREA Disclosure is required!

If you have already begun using the Commission’s new Working With Real Estate Agents Disclosure, keep up the good work! If you have not begun using the new WWREA Disclosure, now is the time! Effective July 1st, you must begin reviewing the new form with all prospective commercial and residential buyers and sellers at first substantial contact.

The new disclosure form is available on the Commission’s website (ncrec.gov) under “PUBLICATIONS.” Click on “Publications” and then “Disclosure Forms.” We recommend that you give every prospective buyer and seller a copy of (or a link to) the new “Questions and Answers on: WORKING WITH Real ESTATE AGENTS” brochure as a supplement to answer questions commonly asked by buyers and sellers

On April 26, 2021, the Commission hosted a 60-minute webinar introducing these two new publications. A recording of the webinar is available for viewing on the Commission’s website. The new WWREA Disclosure will be discussed in the 2021-2022 GENUP and BICUP courses. Aside from the introduction of these new publications, there has been no change to the rule which requires agency disclosure (A .0104(c)) and no change in the types of agency relationships that brokers may offer. The only change is in the form that brokers use to explain agency relationships.

Appearances

Fred Moreno, Chief Deputy Legal Counsel, spoke at the Mobile Monday Session on June 7.

Miriam Baer, Executive Director, and Janet Thoren, Director of Regulatory Affairs, spoke at the NC Realtors’ BIC Talks Session on June 23.

‘Everything Changed the Minute I Opened the Door’

by Melissa Dittmann Tracey

Debbie Morrisette, a real estate broker with the Morrisette Group in North Carolina, thought she had followed all the safety protocols prior to showing properties to a potential buyer. She first met with the buyer—a man in his 20s—in a conference room at her brokerage, screened his interest in properties and asked a lot of questions about his background. The only thing she now regrets is not trusting her instinct as she approached the home’s front door alone to show him the home.

“Everything changed the minute I opened the door,” Morrisette said as she recalled that day two years ago while speaking to attendees during a recent REALTOR® Safety Program webinar, “Prospect or Predator?” “I had this feeling that I just knew I was in trouble.”

The man was hesitant to move throughout the house once inside and not touring the home as freely as other buyers usually did. Morrisette tried to not get trapped in a room by making him lead. But after about 10 minutes into the tour, he grabbed her arm, admitted he had lied about his name and what he does, and proceeded to ask her uncomfortable, inappropriate questions.

“I knew this was fight or flight—it was one or the other,” Morrisette recalled. She was able to escape through a sliding glass door and run to a neighbor’s house to call the police. The man was arrested the next day. But that day still haunts her. Morrisette has been in the real estate business for 17 years. “I’ve always been such a trusting person and always love what I do and meeting new people,” she said. “I couldn’t fathom that anyone would want to harm another human being … and to come up with all these lies and take so much time to cook up a situation to intimidate someone else.”

Two years later, she still won’t do a showing by herself.

Nearly a quarter of REALTORS® say they’ve experienced a situation that made them fear for their personal safety or the safety of their personal information, according to the National Association of REALTORS®’ 2020 Member Safety Report, conducted by the National Association of REALTORS®. The top agent fears centered around conducting open houses and showings as well as meeting new clients at a secluded property.

“These are not opportunistic crimes—although many people assume that they are,” said Lee Goldstein, CEO at Real Safe Agent, who also spoke during the REALTOR® safety webinar. Most of the crimes committed against real estate professionals are predatory in nature, said Goldstein. The perpetrator tends to have a motive of wanting power or control over their victim, not burglary or theft. In these crimes, predators search for some perceived weakness or vulnerability in their victims and have the intent of committing crimes like assault, rape, and murder. These criminals are drawn to real estate professionals because they know they tend to work alone and they believe they have a better chance of isolating you, he said.

The Timeline of Predatory Crimes

Goldstein walked webinar attendees through the timeline of predatory crimes, which revealed a lengthy cycle of “victim shopping” and investing time in preparatory actions that lead to meeting the victim and the actual crime. At first, the predators will focus on photographs, websites, and social media channels to compile personal information about their potential victim. Once they’ve researched their victim, they’ll insert that victim’s actual life into what Goldstein called a “fantasy stage” as they visualize their crime.

“The more information and subservient you are, and the more you provide them on social media, the more likely they are to stay focused on you and not to move on to someone else,” Goldstein said. For example, David Legaz, a real estate broker and 2021 president of the New York State Association of REALTORS®, advised attendees to watch the photos they use and always ensure they’re professional. Avoid full body photos, use headshots at or above the shoulders, and avoid showing any flashy jewelry. Have a professional smile with eyes fully open and look directly into the camera–no head tilts, which can show vulnerability, Legaz said.

As part of the predatory crime timeline, predators will try to arrange for a meeting to get you isolated from others. This meeting is your first opportunity to show your strength, as they’ll be looking for weakness or vulnerability. Have an empowered greeting. Arrive at the property early and from the front porch step, for example, reach down to greet them—a nonverbal gesture to show empowerment. Set expectations (e.g., “We will be spending no more than 15 minutes at the showing as the sellers will be returning at 5:45 p.m.”), Legaz added.

Predators tend to pay careful attention to “stage setting” for their crimes, Goldstein said. They will try to isolate you in places away from people and exits, like in bathrooms, basements, or attics. Always walk behind prospect: “Direct them—don’t lead them,” Legaz said.

Watch for these common attack scenarios, Goldstein said:

The Best Ways to Prevent an Attack

To prevent an attack, Goldstein urged real estate professionals to use active listening during the initial meetings. Focus on the prospect and ask open-ended questions to help pinpoint any potential red flags. For example, look for inconsistencies in their story (for Morrisette, the man she met with said he earned $25 million last year from his company, yet his car didn’t match up to that wealth). Ask questions follow-up questions, and be skeptical of any stumbles or discrepancies in their story.

Trust your instinct. Many victims say they had “a feeling that something just wasn’t right,” when asked to recall the situation afterward, Legaz said. “Don’t discount that feeling, whether it’s a strange feeling after the initial call, while at the front door, or as you approach a home. … Your body is trying to warn you. If you have that feeling—exit. Stop the appointment. Tell them your family just called and there’s an emergency.”

Bring a coworker, family member, or friend with you to showings as much as possible, particularly in these situations, Legaz said:

Always keep personal safety at the forefront of your day-to-day activities, said Carl Carter Jr., a real estate professional and founder of the Beverly Carter Foundation, who also spoke during the webinar. Carter’s mother Beverly Carter, a real estate pro in Little Rock, Ark., was kidnapped while showing a property to a man and woman who were posing as home buyers in September 2014. After a nationwide search, she was found dead days later. “In reliving the horror, I tell my mother’s story because I hope you will listen,” Carter said. “We’re all working so hard that it can be easy to lose sight that there is bad that walks among us.”

Reprinted from REALTOR® Magazine by permission of the National Association of REALTORS®. Copyright April 30, 2021. All rights reserved.

https://magazine.realtor/well-being/safety/article/2021/04/everything-changed-the-minute-i-opened-the-door?AdobeAnalytics=ed_rid%3D6759234%26om_mid%3D4534%7CMembersEdgeNews_2021_05_06_Brokers%26om_ntype%3DMEMBER%27S%20EDGE%20%28news%29

Legal Talk: What in the World is FIRPTA?

BY RICHARD S. POE
PARTNER, LANCASTER, TROTTER AND POE, PLLC

From Insight Magazine, a publication of NC REALTORS®

The following is a fictional (but very plausible) conversation between Betty Broker and Larry Lawyer:

BETTY: Hello, Larry. This is Betty. I hope your New Year is going well, and you and your family are dodging COVID so far.

LARRY: Thanks, Betty! How can I help you today?

BETTY: Well, I have a closing coming up with you in a few weeks in which I am the listing agent for Manuel and Consuela Ramirez, a lovely couple from Ecuador. They plan to return to Ecuador after selling their home here, and a friend recently told them that part of the sales price might be withheld from them at the closing. Why would that be?

LARRY: Well, Betty, there is a law known as the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). In certain circumstances, a settlement agent is required to withhold a portion of the sales price from the seller at closing if the seller is not a U.S. citizen. There are many possible scenarios and many exceptions to the general rule, but it might be required.

BETTY: How do my folks find out if there will be withholding on their transaction?

LARRY: I am not a tax lawyer, so the Buyer and the Seller in this situation should be advised to seek tax advice from a qualified tax professional. However, here are several basic rules:

  1. If the seller is selling to a buyer who intends to occupy the property as his or her principal residence and the purchase price is $300,000 or less, no withholding is required.
  2. If the seller is a resident alien (holder of a green card), he or she is treated the same as a U.S. citizen and no withholding is required regardless of the purchase price.
  3. If the seller applies for and obtains a FIRPTA Withholding Certificate from the IRS prior to closing, no withholding is required. Eligibility for a Withholding Certificate would be determined by a tax professional.

BETTY: Well, my sellers do not have green cards, and the house is selling for $500,000, so does that mean they will not get part of their proceeds following closing?

LARRY: Probably so, unless they qualify for a Withholding Certificate for some reason. But even if they do qualify, it’s unlikely the IRS would issue a Certificate in time for a closing in a few weeks. So, in all likelihood, I am going to have to withhold 10% (or $50,000) of the purchase price from the sellers’ proceeds and send it to the IRS. Once the sellers file the last tax return they are required to fi le, my understanding is they can apply for a refund of any of the withheld amount that exceeds their final tax liability.

BETTY: Wow! So, what do I need to put on my checklist so I adequately warn my clients in the future?

LARRY: Here are the questions that you need to know the answers to every time:

  1. Is the seller a citizen of another country?
  2. If so, does the seller have a green card?
  3. Is the buyer going to use the property as his or her principal residence? If so, is the purchase price $300,000 or less?
  4. Is the buyer going to use the property as investment property? In this case, if the seller is a citizen of another country and doesn’t have a green card, withholding is required no matter the price.
  5. Does the seller qualify for a FIRPTA Withholding Certificate in the opinion of a tax professional?

BETTY: Thanks for the heads up. This is definitely going on my checklist. Is the anything else I should know?

LARRY: Just a couple of things to keep in mind:

  1. If the sales price exceeds one million dollars and withholding is required, the withholding increases to 15% of the sales price.
  2. The way the law is written, the buyer is responsible for making sure the withholding is done properly. So, if the withholding is not done properly or not delivered to the IRS within 20 days from closing, the buyer will be penalized and charged with late fees by the IRS. As a practical matter, since closing attorneys usually represent buyers, this liability would fall on the closing attorney.
  3. Buyers and sellers in this situation are both advised to seek professional tax advice and not simply depend on your real estate attorney unless he is also a qualified tax expert.

Have a great 2021, and stay safe and well!!!

Allan R. Dameron Legal Internship Award 2021

At its June 16, 2021 meeting, the Commission awarded the Allan R. Dameron Legal Internship Award to Amelia Poore. This annual award is given in honor and memory of Allan Dameron who served on the Commission for nearly eight years beginning in 1999, including two terms as Chairman. Mr. Dameron was also a former Dean of the REALTOR Institute, and past president of the North Carolina Real Estate Education Foundation. 

Each year, the award is given to a North Carolina law student who has demonstrated an interest in public service and in real estate. Amelia is a rising third year law student at Campbell University Law School where she works with the Stubbs Bankruptcy Clinic and in the law library. Prior to law school, Amelia was an elementary school teacher and, while teaching, also earned her Master’s degree in elementary education and teaching from Meredith College. She is also a graduate of Wofford College in Spartanburg, South Carolina, where she received her Bachelor of Arts degree in English.

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. Click here for more information.

Current Stats: Monthly Licensee Count as of June 1, 2021