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How to access the digital and print versions of the NC Real Estate Manual
Did you know that the NC Real Estate Manual is available in web-based and print versions?
The web-based version of the Manual was first introduced in 2019, featuring easy navigation and searching, as well as new visual elements such as comic strips and assessments. Since then, functionality has expanded to include highlighting and note-taking features. The web-based version is updated when there are changes in License Law and Commission rules, so it is always current.
Licensees who wish to access the digital version of the Manual must register for a subscription. A one-time $25.00 fee provides two full years of access.
To access the digital version of the Manual:
- go to www.ncrec.gov;
- click on Publications;
- click on NC Real Estate Manual; and
- click Register for Digital Subscription.
Revised in 2020, the print edition of the Manual now includes content that has been added into the digital version during recent years, including comic strips and assessments.
To order a print copy of the 2020 edition of the Manual:
- go to www.ncrec.gov;
- click on Publications;
- click on NC Real Estate Manual; and
- click Order Here; and
- click NC Real Estate Manual 2020 edition.
For more information about the NC Real Estate Manual, contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700.
Temporary Rules 58G .0104 and .0105 will expire on April 11
The Commission initiated temporary rules 58G .0104 and .0105 during 2020. The two rules provided various education-related waivers and extensions, in response to the COVID-19 pandemic. Both rules will expire on April 11, 2021.
As of April 12, 2021, education providers, Prelicensing students, and licensees will be subject to the standard education and licensing requirements set forth in the law and Commission rules, as follows:
Continuing Education (CE) Deadline: The deadline to complete CE courses for the 2020-21 license year* is June 10, 2021. See Commission rules 58A .1702 and 58H. 0404.
*Not sure which CE courses you need to take? Log into your license record on the Commission’s website to check your CE record.
Prelicensing and Postlicensing End-of-Course Examinations: Closed-book, proctored end-of-course examinations are required in all Prelicensing and Postlicensing courses. See Commission rule 58H .0207.
180-day Examination Eligibility Period: An applicant who is subject to the license examination requirement is granted a 180-day Examination Eligibility period, during which the applicant may schedule and take the license examination with Commission’s examination provider, PSI. An applicant who does not pass the examination during the allotted 180-day period must file another complete license application with the Commission and receive a new Notice of Exam Eligibility before being permitted to schedule another examination attempt with PSI. Note that applicants who are subject to the comprehensive examination are required to pass both sections of the exam during the same 180-day period to be eligible for licensure. See Commission rules 58A .0401 and .0403. Also, a detailed explanation of the examination process is provided on pages 13-25 of Real Estate Licensing in North Carolina.
Postlicensing Education deadline: In order to maintain eligibility for active license status, a provisional broker must complete the 90-hour Postlicensing education program within 18 months of the date of initial licensure. See Commission rule 58A .1902.
For more information regarding education and licensing requirements, contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700.
HUD Announcement on Fair Housing Act Enforcement
On February 11, 2021, The Department of Housing and Urban Development (HUD) announced that it will begin enforcement of the Fair Housing Act to prohibit housing discrimination based on sexual orientation and gender identity in addition to enforcement of discrimination based on previously identified protected classes including familial status, race, ethnicity, sex, handicap, color, religion, and national origin.
The memo notes that State and local jurisdictions which enforce the Federal Fair Housing Act also will be required to administer those laws to prohibit discrimination because of sexual orientation and gender identity. Additionally, regional offices and jurisdictions have been advised to review allegations of discrimination because of gender identity or sexual orientation that had been received since January 20, 2020, and notify persons who alleged such discrimination that their claims may be timely for filing.
In addition, the recent sunset of “House Bill 2” effectively means that local governments may now choose to adopt non-discrimination ordinances. Licensees should be aware of any local ordinances in their market areas that address housing discrimination.
The HUD memo is available at: https://www.hud.gov/press/press_releases_media_advisories/hud_no_21_021
Homeowner Protection Extensions
On February 16, 2021, the White House announced the following extensions of COVID-19 protections for homeowners:
- the foreclosure moratorium for homeowners is extended through June 30, 2021
- the enrollment window for borrowers who wish to request mortgage forbearance is extended through June 30, 2021; and
- borrowers who entered forbearance on or before June 30, 2020 may have up to six months of additional mortgage payment forbearance in three-month increments.
Homeowners and renters can visit consumerfinance.gov/housing for more information on relief options.
The announcement is available at:
Appearances
Sheryl Graham, Consumer Protection Officer, spoke at HomeTown Realty’s Brokers Office Meeting on February 25.
Disciplinary Actions
MICHAEL ANTHONY BOWMAN (CHARLOTTE) – The Commission accepted the voluntary surrender of the broker license of Mr. Bowman effective February 1, 2021. The Commission dismissed without prejudice allegations that Mr. Bowman violated provisions of the Real Estate License Law and Commission rules. Mr. Bowman neither admitted nor denied misconduct.
BOWMAN REAL ESTATE LLC (CHARLOTTE) – The Commission accepted the voluntary surrender of the broker license of Bowman Real Estate LLC effective February 1, 2021. The Commission dismissed without prejudice allegations that Bowman Real Estate LLC violated provisions of the Real Estate License Law and Commission rules. Bowman Real Estate LLC neither admitted nor denied misconduct.
EMSLEY A. LANEY, III (WILMINGTON) – Following a hearing, the Commission permanently revoked the broker license of Mr. Laney effective December 31, 2020. The Commission found that Mr. Laney failed to maintain and retain trust account records. Mr. Laney also failed to safeguard and account for trust monies resulting in trust account shortages.
LANEY REAL ESTATE CO. (WILMINGTON) – Following a hearing, the Commission permanently revoked the firm license of Laney Real Estate CO. effective December 31, 2020. The Commission found that Laney Real Estate CO failed to maintain and retain trust account records. Laney Real Estate CO also failed to safeguard and account for trust monies resulting in trust account shortages.
DAVID MOSELEY PROCTOR (KINSTON) – By Consent, the Commission permanently revoked the broker license of Mr. Proctor effective January 15, 2021. The Commission found that Mr. Proctor failed to enter into an agency agreement with a buyer-client prior to submitting an offer to the seller. Mr. Proctor also failed to enter into an agency agreement before representing a seller-client. Mr. Proctor misrepresented to his seller-clients that his buyer-client did not want to purchase a second lot from the sellers. Mr. Proctor’s misrepresentation induced his seller-clients to sell the lot to him for $1.
CARMEN WHITLEY SHAW (NORTH MYRTLE BEACH) – By Consent, the Commission reprimanded Ms. Shaw effective January 1, 2021. The Commission found that Ms. Shaw, whose license has been on inactive status since July 1, 2016, was employed as an administrative assistant at a firm. In July, 2020, Ms. Shaw’s broker-in-charge made an appointment to show a property in Carolina Shores, NC, which included in the MLS that “Sellers require everyone entering home to wear mask and gloves” due to COVID-19. Instead of the broker-in-charge, Ms. Shaw showed the property to potential buyers, who were members of her family, and, while at the subject property, did not follow the directive of the seller that that masks and gloves needed to be worn at all times.
TEAM ANDERSON REALTY (HOLLY SPRINGS) – By Consent, the Commission reprimanded Team Anderson Realty effective February 1, 2021. The Commission found that the firm falsely advertised the square footage of a home in the MLS when the affiliated listing agent included a basement area with no heat source in the living area, contrary to the professional measurer’s description.
Current Stats: Open Cases as of January 31, 2021
*Beginning March 2020, these case numbers also reflect all applications subject to character review.
Note: To enlarge this image, adjust the Zoom settings in your browser window.
Broker Misconduct
The Commission was dismayed by the violence that erupted at the United States Capitol building on January 6, 2021 and has received inquiries about the consequences of broker involvement.
While the Real Estate License Law and Commission rules are primarily focused on broker conduct connected to a real estate transaction, there are provisions in the law that address other conduct. The License Law provides that the Commission can discipline a broker who is found to be unworthy or incompetent to act as a real estate broker in a manner as to endanger the public interest. Likewise, disciplinary action can be taken against a broker who is convicted of certain crimes, including offenses showing professional unfitness. The Commission also considers character and criminal history when determining whether to license an applicant as a broker.
If you believe there has been a possible violation of the Real Estate License Law or Commission rules, please file a complaint with the Commission. If you are a broker and have been convicted of a criminal offense, you are required by law to report it on the Criminal Conviction Reporting form.
The Commission assesses each complaint and reported conviction on a case by case basis.
Regulatory Affairs Case Study: Verify Before You List
– By Fred Moreno, Chief Deputy Legal Counsel
The buyer of residential property filed a complaint against the listing agent, who was also the owner of the subject property.
The listing agent purchased the property through his LLC with thoughts of renovating it and reselling it later. Rather than renovating the property as he typically does, the listing agent decided to market the property “as is” and listed it for sale through his brokerage firm. The property was advertised as being connected to city water and sewer and the square footage was listed as the exact amount noted in tax records with the disclaimer “Sqft is from tax records”. The Listing agent did not measure the subject property to determine the actual square footage and assumed that the subject property was connected to city sewer because it was located in the center of the city and was connected to city water.
A buyer purchased the property from the listing agent, and began renovations. After adding a bathroom, his team attempted to connect that part of the home to the existing sewer line. However, after a week of digging all around the house, they discovered that the property was served by a septic system. In order to connect to the city sewer line, the buyer had to pay a connection fee of over $7k and wait one year for the city to run an extension line from the house to the street for an additional cost also of over $7k.
During the investigation, the firm and broker-in-charge were added as respondents due to the misrepresentation of the material fact regarding the septic system and the reliance upon tax records for the advertised square footage. The buyer agent was also added as a respondent for her failure to discover these issues during her representation of the buyer.
The Commission closed the case against the buyer agent and warned her that the statement on the listing of “Sqft is from tax records” should have been a red flag that the property was not measured. Therefore, the buyer agent should have counseled her client and suggested that he have the property measured. During the investigation, the listing agent, firm, and broker-in-charge have since come to a financial agreement with the buyer to address the issues. The Commission required the listing agent and broker-in-charge to also complete further education prior to closing the case against them. For further information, review the Commission’s “Residential Square Footage Guidelines” brochure. Moreover, it would be good practice to review a copy of the water and sewer utility bill prior to listing a property for sale to ensure your advertising is correct.