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Allan R. Dameron Legal Internship Award 2020
The recipient of the Allan R. Dameron Legal Internship Award 2020 is Lawrence Graham. This annual award is given in honor and memory of Allan Dameron, who served on the Commission for nearly eight years beginning in 1999. During that time, he served two terms as Chairman of the Commission. He was dedicated to serving and protecting the interests of the public in North Carolina real estate transactions. He believed strongly in broker and consumer education as a means of improving the real estate industry.
Each year, this award is given to a North Carolina law student who has demonstrated an interest in public service and in real estate. Graham was selected from a group of very qualified law students.
He is a rising third year law student at Campbell University Law School where he is on Law Review and is a member of the Moot Court Team. He is also a graduate of the University of North Carolina-Chapel Hill, where he received his Bachelor of Arts degree in Political Science with a minor in History in May 2018. He previously interned for Judge Philip Berger on the North Carolina Court of Appeals, and for Representative Lee Zachary in the North Carolina General Assembly.
Graham will work in Regulatory Affairs for about ten weeks before returning to school. In addition to the award, Lawrence’s name will also appear on a plaque which will be permanently displayed in the Commission office as a record of his accomplishment.
Staff Updates
Johnathan Robertson has been named Communications Officer in the Administrative Division.
Nolen Williams has been named Auditor in the Regulatory Affairs Division.
Len Elder has been named Education & Development Officer in the Education & Licensing Division.
Real Estate Commission Scholarship Winners
Two North Carolina brokers were recently awarded the Phillip T. Fisher Scholarship Award by the Commission. The recipients, each of whom will receive a check for $1000 and a commemorative plaque, are Kathryn W. Diamond, of Clarksville, Virginia, and Quanta Monique Edwards, of Raleigh, North Carolina.
The Commission annually awards the Phillip T. Fisher Scholarship to licensees for educational endeavors. Fisher was the Executive Director of the Real Estate Commission from 1981 to 2010.
To qualify for the award, brokers had to show evidence of attaining various certifications or designations, or an advanced degree in real estate brokerage or a closely related field, during the previous 3 year period. Also, the certifications, designations, and/or degree(s) must have been obtained while the brokers were licensed in North Carolina.
The Commission congratulates both recipients and thanks them for their commitment to education and professional growth.
I didn’t complete CE by June 10, 2020. What classes do I need to take – and when?
Temporary rule 58G .0104, which has been effective since March 26, 2020, provides for an automatic 90-day extension of time for brokers to complete CE for the 2019-2020 license period.
Because no classes could be offered from June 11 to June 30, 2020, the extension period began on July 1, 2020, and will end on September 30, 2020.
When is the CE extension deadline?
Answer: September 30, 2020.
Which classes must brokers take to make up missed CE hours?
Answer: Any broker who did not complete all 8 hours of CE by June 10, 2020, must take CE elective courses between July 1-September 30, 2020, to make up the missed hours, even if the missed hours included the Update course. Following are three scenarios.
Scenario#1: Broker completed an Update course between July 1, 2019, and June 10, 2020, but did not complete an elective course.
Broker must take ONE Commission-approved elective between July 1 – September 30, 2020, to makeup the missed hours. If an elective course is not completed by September 30, the license will be inactive as of October 1.
Scenario #2: Broker completed an elective course between July 1, 2019, and June 10, 2020, but did not complete an Update course.
Broker must take ONE Commission-approved elective course between July 1 – September 30, 2020, to makeup the missed hours. If an elective course is not completed by September 30, the license will be inactive as of October 1.
Scenario #3: Broker did not complete any CE between July 1, 2019, and June 10, 2020.
Broker must take TWO Commission-approved elective courses between July 1 – September 30, 2020, to makeup the missed hours. If two elective courses are not completed by September 30, the license will be inactive as of October 1.
If you have further questions, please contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700.
Sandra O’Connor elected Chair and Wendell Bullard elected Vice Chair
Executive Director Miriam Baer announced that Sandra O’Connor of Greensboro has been elected as Chair and Wendell Bullard of Durham as Vice Chair of the North Carolina Real Estate Commission. Their terms will begin on August 1, 2020.
Sandra O’Connor was appointed to the Commission by Governor Roy Cooper in 2017. O’Connor has been a licensed North Carolina real estate broker since 1983, and from 1985 to 2005 she was the owner and sole proprietor of Sandra O’Connor & Associates. She is a broker with the Greensboro Allen Tate office, for which she served as Sales Manager from 2005-2010 and Broker-in-Charge from 2010-2018.
O’Connor has been active with the national, state, and local REALTOR® organizations and in community affairs. She is Director of the National Association of REALTORS® and a past Region IV Vice President. A past President of the North Carolina Association of REALTORS®, as well as a Region V Vice President and Treasurer, O’Connor received its REALTOR® of the Year award in 2014. She is also a past President and REALTOR® of the Year of the Greensboro Regional REALTORS® Association and has been admitted to its Hall of Fame.
O’Connor is a member of the Greensboro Zoning Commission, a past chair and member of the Greensboro Planning Board, and a past member of the Board of Directors of the Guilford Green Foundation. Additionally, she is a Commission-approved NC real estate instructor. She also holds a B.A. from Carlow University in Pittsburgh and a Masters of Librarianship from the University of Washington in Seattle.
Bullard was appointed to the Commission by Governor Cooper in 2018. Licensed in 1994, he is Managing Broker at Bullard Properties, LLC, in Durham. Bullard is past President of the Durham Regional Association of REALTORS® and the North Carolina Association of REALTORS® and past REALTOR® of the Year in both organizations.
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.
My license expired! How do I reinstate it?
To maintain a current license, brokers must renew their license annually between May 15 and June 30. The license of a broker who fails to renew during that period will expire on June 30, and that broker must cease all brokerage activities immediately.
What steps must a broker take to reinstate an expired license? That answer depends on how long the license has been expired.
To reinstate a license expired for less than 6 months:
- go to the Commission’s homepage (www.ncrec.gov);
- click on Reinstate your License;
- enter your license number and PIN (last 4 of your SSN unless you have changed it);
- answer required questions; and
- pay $90 reinstatement fee.
NOTE: To regain active status, a License Activation / Affiliation form (REC 2.08) also must be submitted.
To reinstate a license expired for 6 months but no more than 2 years:
- Successfully complete one 30-hour Postlicensing course (course must be completed within 6 months prior to submitting reinstatement application); and
- Submit a reinstatement application with $90 application fee and all required documentation, including criminal background report;
-OR-
- Submit a reinstatement application with $90 application fee and all required documentation, including criminal background report; and
- Pass National and State sections of license exam.
NOTE: To regain active status, a License Activation / Affiliation form (REC 2.08) also must be submitted.
To reinstate a license expired for more than 2 years:
- Successfully complete the 75-hour NC Broker Prelicensing course;
- Submit a license application with $100 original application fee and all required documentation, including criminal background report; and
- Pass National and State sections of license exam.
NOTE: You will be licensed as a provisional broker and be subject to the 90-hour Postlicensing education program. To gain active status, a License Activation / Affiliation form (REC 2.08) also must be submitted.
For more information, review Commission Rule 58A .0505 or visit the “Reinstate your License” page on the Commission’s website. You may also contact the Commission’s Education & Licensing Division at LS@ncrec.gov or 919-875-3700.
Appearances
Starting in August 2020, staff will resume presentations via Zoom. Interested in a program presenter from the Commission? Send your request no later than 30 days before a speech: go to the Commission’s website, click on Forms, and then click on “Program Presenter.”
Disciplinary Actions
MOUNTAIN PROPERTY GROUP LLC (Tryon) – By Consent, the Commission suspended the broker license of Mountain Property Group LLC for a period of 12 months effective July 15, 2020. The Commission then stayed the suspension for a probationary period through July 15, 2021. The Commission found that in 2019 the firm, through its BIC, acted as a dual agent in the transaction without first reviewing a “Working with Real Estate Agents” disclosure with the seller and without entering into a written listing agreement.
LINDA NOBLE TINKLER (Tryon) – By Consent, the Commission suspended the broker license of Ms. Tinkler for a period of 2 years effective April 15, 2020. The Commission then stayed the remaining 21 month suspension, effective July 15, 2020, for a probationary period through April 15, 2021. The Commission found that in 2019, Ms. Tinkler acted as a dual agent without first reviewing a “Working with Real Estate Agents” disclosure with the seller and without entering into a written listing agreement. Ms. Tinkler then gave the buyers $10,000 to use as a part of their down payment without disclosing this gift to the closing attorney or to the buyer’s lender by giving the money to the buyers’ relative for the relative to forward to the buyers.
“Lease-To-Own” versus “Lease Option”
A Regulatory Affairs Division Case Study
By Nicholas Smith, Consumer Protection Officer
The Commission received a complaint from a seller against her listing broker. The broker listed the residential property for sale at $45,000 and acted as dual agent. Due to the condition of the property, the broker believed that traditional financing was going to be unavailable. After procuring a buyer, the broker suggested a lease-to-own arrangement. Both parties were open to the idea and negotiated terms. The buyer would pay a deposit, make regular payments over a three-year period and, at the conclusion of the period, the seller would transfer the deed to the buyer and the buyer would then own the property. This type of lease-to-own transaction is also known as a “contract for deed” or “land installment contract.”
There is no standard contract form for a lease-to-own agreement, so all real estate brokers should advise buyers and sellers to obtain the services of an experienced real estate attorney when conducting these transactions. Rather than referring his clients to an attorney, the broker contacted an attorney himself and communicated that the parties wanted a “lease option” agreement with a three-year term, a $48,000 sales price, a $6,000 deposit and monthly payments of $1,250. A “lease option” is NOT the same as a lease-to-own.
In a “lease option” agreement, the occupant leases the property and has the option of buying the property at an agreed upon price at any point prior to the expiration of the lease. In a lease-to-own agreement, the tenant/buyer pays for the property in full during the payment period with either no balance due at the end of the payment period or a balloon payment due at the end of the payment period.
Based upon the broker’s instructions, the agreement drafted by the attorney in this transaction did not specify that any of the monthly payments would go towards the purchase price, but instead at the end of the three-year term, the buyer had the option to purchase the property at $48,000, less the $6,000 deposit already paid. A signed Offer to Purchase and Contract (Standard Form 2-T) was attached to the agreement reflecting the purchase price and deposit amount with a settlement date at the end of the three-year term.
The broker did not review the attorney-drafted agreement so he failed to realize that the terms were incorrect, to the detriment of his buyer client. The parties signed the agreement and the buyer moved into the property. Fortunately, the buyer learned of the true nature of the agreement after she made approximately five payments rather than her discovering it at the conclusion of the three-year term. The buyer in the transaction said she believed she would own the property at the end of the term, not have the option to buy the property. The broker, attorney and buyer contacted the seller in hopes of executing a new agreement; however, the seller indicated she would not execute a new one as she was satisfied with the deal.
Possible violations of the Real Estate License Law in this case include N.C.G.S. § 93A-6(a) (8) and (10) for being unworthy or incompetent to act in a manner which protects the public and engaging in improper conduct, respectively.