Gov. Michael F. Easley has reappointed Wanda J. Proffitt to the Real Estate Commission for a three-year term expiring July 31, 2006.
First appointed to the Commission in 1994, Mrs. Proffitt is president of Carolina Mountain Realty in Burnsville.
This article came from the October 2003-Vol34-2 edition of the bulletin.
by Miriam J. Baer, Assistant Director, Legal Services
At its recently concluded session, the General Assembly enacted and Governor Easley signed legislation making certain changes to the Real Estate License Law affecting commercial brokerage, licensing examinations, and out-of-state corporate applicants.
Out-of-State Commercial Brokers
Perhaps the most significant change in the law allows the Commission to issue limited broker or salesperson licenses to commercial real estate practitioners licensed in other states. There are limitations on this license:
• The commercial broker or salesperson must affiliate with a North Carolina broker while practicing in this state; and
• The commercial broker or salesperson cannot engage in residential transactions in North Carolina.
The effect of the change is to permit a commercial broker or salesperson who is licensed in good standing in another state to apply for a limited license in North Carolina. Upon licensure and affiliation with a North Carolina broker, the out-of-state commercial broker or salesperson may enter this state to participate in commercial transactions.
This change was initiated by commercial brokers who believe that a stream-lined mechanism for licensing non-resident commercial brokers and salespersons will result in economic benefit to the state by encouraging commercial enterprises to look to North Carolina as a place to locate their businesses. It was supported by the North Carolina Association of REALTORS®.
The Commission will next undertake rule-making to set out the mechanics for how such licenses will be issued and regulated.
Licensing Examination
The law changes also allow the Commission to retire the existing option to take a paper and pencil licensing examination in favor of the computerized examination. Demand for the paper and pencil exam is low, and dropping steadily. Of the approximately 700 people tested each month, only about 20 request the paper and pencil option. Paper and pencil examinations would still be available to persons with special needs and disabilities.
Out-of-State Corporate Applicants
Finally, a new provision in the law eliminates certain archaic requirements relating to a corporation’s Consent to Service of Process. It replaces them with the simple requirement that the Consent to Service be signed by a corporate officer and provides that such signature shall be sufficient to bind the corporation.
The Commission believes these changes will benefit licensees, applicants and consumers.
Limited Commercial Licenses
The Commission hopes to begin accepting limited commercial license applications from qualified brokers and salespersons in other states by July, 2004.
To implement the program, the Commission must first adopt rules and establish administrative procedures requiring months to complete.
This article came from the October 2003-Vol34-2 edition of the bulletin.
Allan R. Dameron of Holden Beach has been reelected Chairman and Marsha H. Jordan of Lincolnton and Matthew J. (Rick) Watts of Fayetteville were elected Vice Chairpersons of the North Carolina Real Estate Commission for the 2003-2004 term beginning August 1, it was announced by Phillip T. Fisher, Executive Director.
This is the first time since 1977 that the Commission has reelected its Chairman to a second consecutive term, Fisher said.
Dameron, appointed to the Commission in 1999, is Broker Associate with Alan Holden Realty/RE/Max at Holden Beach where he has been affiliated since 1984.
A former Dean of the REALTORS® Institute, he is Past President of the North Carolina Real Estate Education Foundation and of the Brunswick County Board of REALTORS®, which named him REALTOR® of the Year in both 1991 and 2001. He is a past member with 15 years of service and five-time Chairperson of the Holden Beach Board of Adjustment. The North Carolina Association of REALTORS® has honored Dameron with election to its Hall of Fame.
A native of Elkin, he is a graduate of Guilford College in Greensboro with a degree in Administrative Science. He and his wife, Lydia, reside in Holden Beach.
Marsha H. Jordan
A graduate of the University of Virginia, Jordan entered the real estate business in 1986. She is owner of Apple Realty in Lincolnton, a Graduate of the REALTORS® Institute and a Certified Residential Specialist.
Jordan is a director of the North Carolina Real Estate Education Foundation and a former president of the Lincolnton Board of REALTORS® and Dean of the REALTORS® Institute. Active in community affairs, she has served on the board of directors of the Lincolnton Chamber of Commerce and as president for Downtown Development, and is a member of the Lincolnton Rotary Club.
Jordan has been a member of the Commission since 1999.
Matthew J. (Rick) Watts
Watts is Broker Associate and Senior Sales Executive with Coldwell Banker United Realty in Fayetteville. He was appointed to the Commission in 2002.
Watts entered the real estate business in 1992 after retiring from a 30-year career with the U. S. Army where he achieved the rank of Command Retention Sergeant Major for the XVIII Airborne Corps.
In ten years with Coldwell Banker, Watts has been a member of the President’s Elite and the President’s Circle each for five years.
Among numerous military honors, Watts holds the U. S. Army’s Legion of Merit, the highest peacetime award for military achievement and honorable service.
He is a member of the Veterans of Foreign Wars, American Legion, the Airborne and Special Operations Museum Foundation Board and past member of the Executive Committee of the National Association for the Advancement of Colored People, among other organizations.
This article came from the October 2003-Vol34-2 edition of the bulletin.
MAX D. BALLINGER, JR. (Greensboro) — By Consent, the Commission revoked the broker license of Max D. Ballinger, Jr. effective July 31, 2003. The Commission found that Mr. Ballinger, acting as the broker-in-charge of a real estate firm, failed to present for Commission inspection records required by Commission rule.
BALLINGER PROPERTIES, INC. (Greensboro) — By Consent, the Commission revoked the firm license of Ballinger Properties, Inc. effective July 31, 2003. The Commission found that the firm failed to present for Commission inspection records required by Commission rule.
KIMBERLY L. BARLOW (Wake Forest) – By Consent, the Commission suspended the broker license of Ms. Barlow for a period of one year effective July 1, 2003. The Commission then stayed the suspension for a probationary period of 22 months upon certain conditions. The Commission found that Ms. Barlow failed to disclose to at least one consumer a referral fee arrangement with a listing agent for investment properties to whom she referred the consumer. The Commission also found that Ms. Barlow entered into a purchase contract that recited that it involved secondary financing when she had been told that the financing would be canceled without payment at or after closing. The Commission noted that none of these transactions closed.
WILLIAM M. BARNES (Corolla) – By Consent, the Commission suspended the broker license of Mr. Barnes for a period of one year effective October 1, 2003. The Commission then stayed the suspension for a probationary period of three years upon certain conditions. The Commission found that Mr. Barnes was convicted of entering an airport area while in possession of firearms in violation of federal security requirements, a misdemeanor. The Commission noted that Mr. Barnes disclosed the conviction within 60 days of judgment as required by Commission rules.
BODIE ISLAND BEACH CLUB, INC. (Nags Head) – The Commission accepted the permanent voluntary surrender of the time share registration certificate of Bodie Island Beach Club effective July 1, 2003. The Commission dismissed without prejudice allegations that Bodie Island Beach Club violated provisions of the Real Estate License Law and Commission rules. Bodie Island Beach Club neither admitted nor denied misconduct.
BODIE ISLAND REALTY, INC. (Nags Head) – By Consent, the Commission suspended the firm license of Bodie Island Realty for five years effective July 1, 2003. The Commission then stayed the suspension for a probationary period of five years upon certain conditions. The Commission found that Bodie Island Realty, while acting to sell and rent time shares for others and manage homeowner association funds, failed to maintain its records and trust accounts as required by the Real Estate License Law and Commission rules. Bodie Island Realty neither admitted nor denied but did not contest the findings.
C.F. LITTLE CONSTRUCTION, INC. (Concord) – By Consent, the Commission reprimanded CF Little Construction, Inc., effective July 1, 2003. The Commission found that the firm, as a listing agent of a subdivision, contracted to sell lots in one section prior to its final approval by the county. The Commission also found that the firm failed to provide agency disclosure to buyers as required by Commission rules.
LINDA M. CLARK (Fayetteville) – By Consent, the Commission reprimanded Ms. Clark effective May 1, 2003. The Commission found that Ms. Clark, as a salesperson and the selling agent for an in-house listing, was aware of the omission on the closing statement of a repair payment from sellers to buyers. The Commission found that Ms. Clark failed to deliver to the seller and buyer a complete closing statement of receipts and disbursements as required by the Real Estate License Law. The Commission noted that Ms. Clark did not intentionally cause or permit its omission from the accounting of all receipts and disbursements related to the closing.
BRAINARD L. CUMMINS (Dillsboro) – By Consent, the Commission revoked the broker license of Mr. Cummins effective July 1, 2003. The Commission found that Mr. Cummins, as a broker-in-charge, failed to properly document deposit tickets, canceled checks, or ledgers and failed to produce monthly reconciliations, and adequate property or owner ledgers for Commission inspection. The Commission further ordered that Mr. Cummins may apply for reinstatement of his salesperson license which will be granted on certain conditions.
CHARLES F. DAWKINS (Fayetteville) – By Consent, the Commission reprimanded Mr. Dawkins effective July 1, 2003. The Commission found that Mr. Dawkins, a broker, listed and sold a property and failed to disclose to the lender and closing attorney the receipt of a check from the sellers as a repair credit for the buyers and that he failed to provide the parties with an accurate accounting of all receipts and disbursements in connection with the closing.
SHIRLEY D. DELONG (High Point) – By Consent, the Commission suspended the broker license of Ms. DeLong for a period of six months effective October 1, 2003. The Commission then stayed the suspension effective October 1, 2003 under certain conditions. The Commission found that Ms. DeLong, acting as a listing and buyer agent, failed to provide written agency disclosures and failed to obtain a written buyer agency agreement. The Commission also found that Ms. DeLong represented the buyers’ home as being under contract when the offer had not been reduced to writing and failed to remove their home from the Multiple Listing Service when they attempted to cancel their listing agreement after discovering the property they intended to purchase was already under contract.
DELONG & ASSOCIATES, LTD. (High Point) – By Consent, the Commission suspended the firm license of DeLong & Associates for a period of six months effective October 1, 2003. The Commission then stayed the suspension effective October 1, 2003 under certain conditions. The Commission found that DeLong & Associates, acting as a listing and buyer agent, failed to provide written agency disclosures and failed to obtain a written buyer agency agreement. The Commission also found that DeLong & Associates represented the buyers’ home as being under contract when the offer had not been reduced to writing and failed to remove their home from the Multiple Listing Service when they attempted to cancel their listing agreement after discovering the property they intended to purchase was already under contract.
BARBARA A. DENNING (Goldsboro) – By Consent, the Commission suspended the salesperson license of Ms. Denning for a period of one year effective July 1, 2003. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Denning, as a bookkeeper, failed to keep complete and accurate records of trust monies as required by Commission rules.
SUSAN K. FARFOUR (Goldsboro) – By Consent, the Commission suspended the broker license of Ms. Farfour for a period of one year effective June 1, 2003. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Farfour failed to keep complete and accurate records of trust account funds as required by Commission rules.
LESLIE FERRELL (Lancaster, SC) – By Consent, the Commission suspended the broker license of Ms. Ferrell for a period of one year effective July 1, 2003. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Ferrell failed to disclose on her applications for both a real estate salesperson and broker license that she had three criminal convictions for issuing worthless checks and a fourth charge pending. The Commission noted that Ms. Ferrell was unaware of the pending charge, which had not been served, and paid all funds due.
MICHAEL G. GARRETT (Henderson) – By Consent, the Commission reprimanded Mr. Garrett effective May 14, 2003. The Commission found that Mr. Garrett, a broker and a notary public for the State of North Carolina, negligently performed a notarization in Virginia that appeared to have taken place in North Carolina and that his North Carolina notary public commission was revoked by the Secretary of State.
GARLAND B. GARRETT, JR. (Wilmington) – By Consent, the Commission suspended the salesperson license of Mr. Garrett for a period of two years effective October 1, 2003. The suspension shall be active until July 1, 2004, or until such time after March 1, 2004 as Mr. Garrett has been released from his placement in a community correction center. The remaining suspension will then be stayed for a probationary period of two years. The Commission found that Mr. Garrett was convicted in U.S. District Court of offenses relating to unlawful gaming.
GARLAND B. GARRETT, III (Wilmington) – By Consent, the Commission suspended the salesperson license of Mr. Garrett for a period of two years effective September 1, 2003. The Commission then stayed the suspension for a probationary period of two years. The Commission found that Mr. Garrett was convicted in U.S. District Court of an offense relating to unlawful gaming.
ANGELA B. HALL (Burlington) – By Consent, the Commission suspended for a period of 60 days the broker license of Ms. Hall effective July 1, 2003. The Commission then stayed the suspension under certain conditions for a probationary period of 12 months effective May 1, 2003. The Commission found that Ms. Hall learned that the developer of a lot had placed fill material on the property, that a house built on the lot would require a special foundation and that the lot owner would let the buyer exchange it for another. The Commission found that Ms. Hall did not disclose this information to the buyer in a timely fashion.
DANNY S. HOOD (Goldsboro) – By Consent, the Commission suspended the broker license of Mr. Hood for a period of two years effective July 1, 2003. The Commission then stayed the suspension for a probationary period of two years. The Commission found that Mr. Hood as a rental agent failed to keep complete and accurate records of trust monies as required by Commission rules. The Commission noted that no clients suffered loss and that the trust account records are now in compliance.
LINDA M. JACKSON (Morrisville) – By Consent, the Commission revoked the broker license of Ms. Jackson effective September 16, 2003. The Commission found that Ms. Jackson conducted brokerage services through a corporation that was not licensed by the Commission, paid various sums of money to buyers and others and received fees outside closing that were not disclosed on either the closing statements or to lenders in the transactions, failed to deposit funds collected on behalf of others into a trust account, listed properties for sale without a written listing agreement with the owners and falsely indicated that she or one of her business entities was the owner of the properties.
WILLIAM R. KENNEDY (Salisbury) – By Consent, the Commission suspended the broker license of Mr. Kennedy for a period of two years effective December 15, 2002. The Commission then stayed the suspension for a probationary period of three years on certain conditions. The Commission found that Mr. Kennedy failed to maintain his trust account records in the form and manner required by Commission rules.
JAMES B. LAND (New Bern) – The Commission accepted the voluntary surrender of the broker license of Mr. Land for a period of one year effective July 1, 2003. The Commission dismissed without prejudice allegations that Mr. Land violated provisions of the Real Estate License Law and Commission rules. Mr. Land neither admitted nor denied misconduct.
PATSY H. LITTLE (Concord) – By Consent, the Commission reprimanded Ms. Little effective July 1, 2003. The Commission found that Ms. Little, as a listing agent and developer of a subdivision, contracted to sell some lots in one section prior to its final approval by the county and failed to provide agency disclosure to buyers as required by the Commission. The Commission also found that Ms. Little failed to adequately supervise a salesperson by not requiring the salesperson to provide agency disclosure and failing to instruct the salesperson to wait until final county approval had been granted before selling lots.
ROBERT B. LOGAN (Goldsboro) – By Consent, the Commission suspended the broker license of Mr. Logan for a period of two years effective June 1, 2003. The Commission then stayed the suspension for a probationary period extending through June 30, 2005 upon certain conditions. The Commission found that Mr. Logan, as principal broker and broker-in-charge of a real estate firm, did not maintain the books and records for the trust account in full compliance with Commission requirements. The Commission noted that the firm has since brought its bookkeeping system into full compliance and that no harm had come to consumers.
GLENN E. MAGILL, JR. (Nags Head) – By Consent, the Commission revoked the broker license of Mr. Magill effective July 1, 2003. The Commission further ordered that Mr. Magill may apply for reinstatement of his salesperson license which may be granted under certain conditions. The Commission found that Mr. Magill, while serving as a time share registrar and project broker for a registered time share project, failed to implement adequate record systems as required by Commission rules, failed to properly record lien-free time share instruments as required by law, and did not properly maintain records of the funds received from others. Mr. Magill neither admitted nor denied, but does not contest, the Commission’s findings.
SANDRA A. MAGILL (Kitty Hawk) – By Consent, the Commission suspended the salesperson license of Ms. Magill for a period of two years effective July 30, 2003. The Commission then stayed the suspension for a probationary period of two years effective July 30, 2003. The Commission found that while Ms. Magill was in charge of trust accounts relating to time share sales for a real estate brokerage firm, she failed to document the purpose of several checks written to disburse funds from escrow accounts. Ms. Magill neither admitted nor denied, but does not contest, the Commission’s findings.
DENNIS D. MCGRAW (Durham) – By Consent, the Commission suspended the broker license of Mr. McGraw for a period of one year effective July 1, 2003. The Commission then reduced the suspension to an active period of 60 days effective July 1, 2003 and a probationary period of 12 months. The Commission found that Mr. McGraw, while engaged in rental property management, failed to properly maintain accurate and complete trust account records and was unable to identify the ownership of all the monies in his trust accounts at a time when the accounts did not contain sufficient funds to cover expenditures.
MCGRAW PROPERTY SERVICES, INC. (Durham) – By Consent, the Commission suspended the firm license of McGraw Property Services for a period of one year effective September 1, 2002. The Commission found that McGraw Property Services, while engaged in rental property management, failed to properly maintain accurate and complete records of deposits to trust accounts, did not maintain ledgers in the manner required by Commission rules and were unable to identify the ownership of all of the monies in their trust accounts at a time when the accounts did not contain sufficient funds belonging to clients to cover expenditures.
BONNIE H. MEELER (Roxboro) – By Consent, the Commission reprimanded Ms. Meeler effective July 1, 2003. The Commission found that Ms. Meeler operated a real estate firm without a broker-in-charge, failed to maintain a proper journal for the firm’s rent receipts trust account and complete ledgers for her earnest money and security deposit accounts. The Commission noted that the accounts were in balance and no client and customer funds were at risk.
AMADA V. MORRIS (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Morris for a period of 30 days effective July 1, 2003. The Commission then stayed the suspension for a probationary period of 12 months effective August 1, 2003. The Commission found that Mr. Morris, as a broker-in-charge, failed to properly maintain adequate trust account records of properties he managed for others as required by Commission rules.
NEAL & RANDLE REAL ESTATE, LLC (Raleigh) – By Consent, the Commission revoked the firm license of Neal & Randle Real Estate effective May 1, 2003. The Commission found that Neal & Randle failed at its branch office to properly designate and reconcile a trust account and to maintain ledgers.
DENNIS L. PEELE (Goldsboro) – By Consent, the Commission suspended the broker license of Mr. Peele for a period of two years effective July 1, 2003. The Commission then stayed the suspension for a probationary period of three years. The Commission found that Mr. Peele, as broker-in-charge of a real estate firm, did not maintain trust account records in compliance with Commission rules. The Commission noted that Mr. Peele has since taken the Commission’s Basic Trust Account course and brought the trust account records into compliance.
MOTOKO K. PHILPOTT (Jacksonville) – The Commission ordered the suspension of the salesperson license of Ms. Philpott for a period of 60 months effective June 1, 2003. One year of the suspension is to be active, with the remainder stayed for a probationary period of 48 months effective June 1, 2004. The Commission found that Ms. Philpott possessed and delivered marijuana, and maintained a vehicle, dwelling and real estate office which were used for keeping or selling marijuana. The Commission further found that Ms. Philpott misrepresented material facts to the Commission in connection with the possession and delivery of marijuana.
CONNIE E. PINER (Durham) – By Consent, the Commission reprimanded Ms. Piner effective June 19, 2003. The Commission found that Ms. Piner, as a salesperson and acting as the owner of a real estate brokerage firm, failed to maintain under her possession and control the records of the firm for three years after the firm ceased to do business.
V. DAN PINER (Durham) – By Consent, the Commission reprimanded Mr. Piner effective June 19, 2003. The Commission found that Mr. Piner, as a salesperson and acting as the owner of a real estate brokerage firm, failed to maintain under his possession and control the records of the firm for three years after the firm ceased to do business.
JULIE M. RANDLE (Cary) – By Consent, the Commission revoked the broker license of Ms. Randle effective May 1, 2003. After November 1, 2003, Ms. Randle may apply for reinstatement of her salesperson license which will be granted under certain conditions. The Commission found that Ms. Randle, as a broker and rental agent for an individual, failed to deposit funds collected from tenants into a trust account and to properly account for the funds. The Commission also found that Ms. Randle, as broker-in-charge of a real estate firm, failed to properly designate and reconcile a trust account and to maintain ledgers.
ROGER W. RAY (Mebane) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Ray effective May 15, 2003. The Commission dismissed without prejudice allegations that Mr. Ray violated provisions of the Real Estate License Law and Commission rules. Mr. Ray neither admitted nor denied misconduct.
DANIEL L. SEAY (Franklin) – By Consent, the Commission reprimanded Mr. Seay effective June 18, 2003. The Commission found that Mr. Seay had been disciplined by the North Carolina General Contractors Licensing Board in a transaction unrelated to the real estate brokerage business.
DAVID A. SIMONINI (Charlotte) – By Consent, the Commission accepted the voluntary surrender of the broker license of Mr. Simonini for a period of two years effective October 1, 2003. The Commission dismissed without prejudice allegations that Mr. Simonini violated provisions of the Real Estate License Law and Commission rules. Mr. Simonini neither admitted nor denied misconduct.
RICHARD W. SNIPES (Greensboro) – By Consent, the Commission suspended the salesperson license of Mr. Snipes for a period of three years effective August 1, 2003. Six months of the suspension are to be active with the remainder stayed for a probationary term of three years. The Commission found that Mr. Snipes obtained a key to a home offered for rental by falsely representing that he would show the property to a prospective tenant and then moved into and unlawfully occupied the property until forced to vacate.
YUMA STORCH (Weddington) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Storch effective July 29, 2003. The Commission dismissed without prejudice allegations that Mr. Storch violated provisions of the Real Estate License Law and Commission rules. Mr. Storch neither admitted nor denied misconduct.
DAVID J. SZEMPRUCH (Arden) – The Commission ordered both the revocation of the broker license and the withdrawal of approval as a real estate pre-license instructor of Mr. Szempruch effective September 15, 2003. The Commission found that Mr. Szempruch failed to disclose on his pre-license instructor renewal application that he had been disciplined by the Florida Supreme Court in connection with his license to practice law and the Florida Department of Business and Professional Regulation in connection with his real estate broker license.
CRYSTAL A. THOMAS (Benson) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Thomas effective July 31, 2003. The Commission dismissed without prejudice allegations that Ms. Thomas violated provisions of the Real Estate License Law and Commission rules. Ms. Thomas neither admitted nor denied misconduct.
CONSTANCE A. VAN CUREN (Charlotte) – By Consent, the Commission reprimanded Ms. Van Curen effective July 30, 2003 and granted reinstatement of Ms. Van Curen’s salesperson license. The Commission found that Ms. Van Curen failed to disclose a DWI conviction within the required 60 days while previously licensed, but did make full disclosure in connection with her reinstatement application.
HARRY P. WADE (Burlington) – By Consent, the Commission reinstated Mr. Wade’s salesperson license effective July 30, 2003. The Commission then suspended it but stayed the suspension for a probationary period of two years. The Commission found that Mr. Wade had been convicted three times for driving while impaired.
WAYNE REALTY & INSURANCE CO. (Goldsboro) – By Consent, the Commission suspended the firm license of Wayne Realty for two years effective July 1, 2003. The Commission then stayed the suspension for a probationary period of two years. The Commission found that Wayne Realty did not maintain their trust account books and records in full compliance with Commission rules. The Commission noted that the firm has brought its bookkeeping system into full compliance and that no harm had come to consumers.
WILLIAM R. KENNEDY REALTY, INC. (Salisbury) – By Consent, the Commission suspended the firm license of William R. Kennedy Realty, Inc., for a period of two years effective December 15, 2002. The Commission then stayed the suspension for a probationary period of three years on certain conditions. The Commission found that the firm failed to maintain its trust account records in the form and manner required by Commission rules.
This article came from the October 2003-Vol34-2 edition of the bulletin.
It’s that season…time to renew your real estate license. Renewal forms will be mailed on May 16 to the delivery address we have on record for you.
If you are active, that address will be the address of your broker-in-charge. If you are inactive, the address will be that of your residence. You can verify your address online and make changes to your residence and email addresses and fax number, if needed.
Renewal Fee Now $40
Due to a recent change in the Real Estate License Law, the fee to renew a real estate license will be $40 effective with the 2003-04 license renewal. The Commission also eliminated the additional $2 cost associated with online renewal. Whether online or by check, the fee is the same: $40.
In addition, online renewal can be verified by a printed confirmation notice upon completing the payment process. You should keep this for your records in the event proof is needed prior to receiving your pocket renewal card. Plus, there is no more guessing if your renewal has been received by the Commission and whether it was received on time.
Renewing online will save you the cost of a stamp, envelope and any bank fees.
Reinstatement Law Changes
A change in the Real Estate License Law shortens the period within which you can reinstate the expired license by simply paying the $55 reinstatement fee. If your license is expired for more than six months (i.e., after December 31), you must complete a new application form, submit a criminal record report and may be required to take all prelicense education and/or pass the real estate examination.
Commission Eliminates Fee
The transaction fee to renew your license online has been eliminated. You can now renew your license completely free of any additional charge.
Renewing online only takes about two minutes. Compare that with the time it takes to renew by mail.
This article came from the May 2003-Vol34-1 edition of the bulletin.
Offers to time share owners to sell their time shares are generally too good to be true. For many years the most common form of consumer abuse was a solicitation to list a time share for a non-refundable fee. Variations on that theme were requests to send money for an appraisal, closing costs, title search, or guaranteed purchase at appraised value, because the caller had a buyer waiting. These abuses were so often repeated that most time share owners became immune to these pitches.
Since 1995, the Commission and the North Carolina Attorney General’s Consumer Protection Section have investigated numerous examples of a much more sophisticated scheme to prey upon time share owners desiring to dispose of their property. Here’s how it works.
Typically, a time share owner is contacted about selling his or her time share directly to a purchaser who claims to want a limited number of time shares. The time share owner is invited to meet to sell the time share. At the meeting, the time share owner gradually discovers that the only way the time share will be purchased is if the time share owner buys a residential building lot at the same time. If the time share owner does buy a lot, the lot seller will buy the time share, typically at a price far above market value and perhaps even in excess of the original purchase price.
And this deal gets better! There is enough money from the “sale” of the time share to make a down payment on the lot purchase price, pay the closing costs, and then make the loan payments on the residential building lot for many months, sometimes more than a year! Then the former time share owner, now the owner of a valuable residential building lot, can put the lot on the market and sell it for a profit! Usually this pitch is accompanied by claims of rising market value, the inherent value of building lots, maybe even a promise to re-purchase it at its sales price if the property does not sell.
The truth is something else. Typically the sales price of the residential lots offered is between $25,000 to $35,000. The lot seller has typically paid between $2,000 to $5,000 for the lot in a recent acquisition (in some cases the lot seller does not even take title to the lot until it is under contract to a time share owner). The lot has little or no market demand. In some cases it may simply be unbuildable, either completely or only with prohibitively expensive improvements.
The lot seller never “pays” anything for the time share. The time share seller/lot purchaser typically borrows 90 percent of the lot sales price from a lender, most of which is then paid to the lot seller, with a smaller portion paid back to the time share seller/lot purchaser. Even after giving part of the loan proceeds back to the lot purchaser, the lot seller typically has a profit of four to five times its initial investment in the lot sold.
The former time share owner, after making payments for awhile, then decides to cash out by selling the lot only to discover that he now owns a lot on which he owes much more money than anyone is willing to pay him.
And what happened to the time share traded for the lot? With luck, it was transferred to some one else. Unfortunately, in a number of cases, the lot seller doesn’t even bother and the purchaser eventually discovers that he or she is not a “former” time share owner after all!
CAVEAT
If you are asked to participate in a sales promotion that involves trading time shares for lot purchases, please contact the Commission legal staff. If a time share owner asks you about this type of proposition, please refer that owner to the Commission legal staff or the Consumer Protection Section of the North Carolina Attorney General’s Office.
This article came from the May 2003-Vol34-1 edition of the bulletin.
The North Carolina State Bar recently announced two related opinions affecting real estate closings in this state. The opinions:
• permit a lawyer’s properly supervised non-lawyer assistant to oversee execution of the closing documents and disburse proceeds even if the attorney is not physically present; and
• allow non-lawyers not acting under an attorney’s supervision to present and identify closing documents, collect signatures and disburse closing funds.
These opinions do not give real estate licensees (or other non-lawyers) free reign to conduct real estate closings themselves!
On the contrary, attorneys will still be required to handle the bulk of a real estate closing, including all functions identified as the “practice of law.” According to the Bar, these functions include:
• abstracting the title opinion;
• explaining the legal status of title to real estate, alternate forms of taking title, or the effect of anything found in the chain of title;
• advising the parties about their rights or responsibilities in connection with the promissory note including the rights and obligations it creates, the effect of a prepayment penalty, the parties’ right to recission and the rights of a lender;
• drafting legal documents for a party;
• explaining or recommending a course of action to a party that requires any legal judgment or that affects the party’s legal rights and responsibilities; and
• attempting to resolve disputes that will affect a party’s legal rights.
Licensees may continue to assist parties in filling in the blanks on preprinted contract forms, but must leave all legal services in the hands of an attorney. In light of the importance of a real estate purchase or sale to most consumers, licensees should strongly encourage their clients and customers to seek the assistance of an attorney for closing.
This article came from the May 2003-Vol34-1 edition of the bulletin.
For many years, wood was one of the preferred siding options for homes and buildings. But, as demand for wood increased and supply decreased, alternatives to real wood were developed. Today’s property owners can choose from an array of siding products for their homes and buildings, including many products that look, paint and nail like wood, and that can last for thirty years or more. One of the most prevalent is composite hardboard siding.
Hardboard is a generic term for panels manufactured from wood chips which have been converted to fibers that are bonded together under heat and pressure. It includes products manufactured by Masonite Corporation, Louisiana Pacific (“L-P”) and Georgia Pacific, among many others. Waferboard is a type of hardboard composed of layers of hardwood strands laid at right angles for strength, and bonded together under high pressure.
Hardboard siding comes in a variety of configurations and specifications, colors and textures. For instance, there are eighty different Masonite products alone. And, hardboard products come with a variety of warranties against design and manufacturing defects, including some that have no warranty at all!
In recent years, consumers have filed claims asserting that certain types of hardboard are unable to withstand normal weather conditions. They alleged that the material in the hardboard is poorly bonded, allowing moisture intrusion that leads to cracking, warping and delamination. In fact, there have been several class action lawsuits filed concerning certain types of hardboard, alleging that the siding led to structural damage. However, the results of these suits have been mixed.
It does appear that a factor influencing the durability of hardboard is the method of its installation. When carefully and correctly installed, most hardboard provides ample protection from the elements.
However, installation is not as simple as putting hammer to nail, and improperly installed hardboard can lead to water intrusion, rot and structural damage. Problems resulting from improper installation are typically not covered by the manufacturer’s standard warranty, which protects only against manufacturing defects.
Unfortunately, most consumers are ill-equipped to determine whether the exterior finish on their home or building was installed properly to prevent moisture intrusion: problems are often uncovered after the damage has been done.
So what’s a conscientious real estate professional to do to protect his or her client when faced with a home or building clad with a hardboard product? Act with care, and be careful what you say. The Real Estate Commission does not require its licensees to distinguish between the different types of hardboard products on the market or to know exactly which ones have been or now are the subject of a lawsuit. There are many similar hardboard products on the market, and the services of a professional may be necessary to determine exactly which one clads a particular house or building. (In fact, the National Organization of Exterior Finishing System Inspectors offers specialized training and certification in the identification and inspection of these products.)
However, if you, as a licensee, make a claim or assertion in your listing, advertisement or elsewhere that a property has a particular type of siding on it, you should be right. You are responsible for the accuracy of the representations you make about a property. If you’re not sure, don’t guess. Instead, if working with a buyer, encourage the buyer to get an inspection that covers the siding. If working with a seller, simply note that the siding is “hardboard” without going into any detail, unless you’re sure. And, be especially careful not to confuse hardboard siding with some other type of siding, such as a cement-based product. Cement-based products have a heavier feel than hardboard, and typically come with a longer warranty.
One important caveat must be made regarding Exterior Insulation Finishing Systems (“EIFS”), also called synthetic stucco. These products are applied differently than hardboard, and have had a high failure rate in the Southeastern United States. Remember that a property is or has been clad with synthetic stucco is a material fact and must be disclosed to potential purchasers.
Other Hardboard Choices
Here’s an idea of some of the other products found on the market today which serve as an alternative to wood:
• Fiber cement siding is a combination of cement, ground sand, cellulose fiber, additives and water formed into panels. One commonly known brand is Hardiplank, named for its developer, James Hardie. Manufacturers of this product claim that it will not rot and will withstand termites.
• Vinyl siding is a plastic-based product which is colored and pressed into sheets.
• Aluminum siding is a pressed aluminum product.
This article came from the May 2003-Vol34-1 edition of the bulletin.
The Real Estate Commission has tabled further consideration of a proposal to seek legislation permitting the Commission to require real estate licensees to be covered by errors and omissions insurance (See October 2002 Real Estate Bulletin). The Commission thanks those licensees who contacted it concerning this proposal.
This article came from the May 2003-Vol34-1 edition of the bulletin.
By Larry Outlaw, Director of Education and Licensing
An enthusiastic crowd of 160 instructors, school officials, authors and publisher representatives attended the Real Estate Commission-sponsored 2003 Real Estate Educators Conference held in Raleigh on March 13-14. The number of participants equals the record established in 1994 when the continuing education program was implemented.
A conference highlight was a panel discussion on prelicense course standards and successful teaching methods. The panelists were: Jerry Thomas, Sea Coast Real Estate Academy, Wilmington; Saundra Martin, Central Piedmont Community College, Charlotte; Lois Branning, Rowan-Cabarrus Community College, Kannapolis; and Roy Faron, J.Y. Monk Real Estate Training Center, Charlotte. Participants were very excited about the excellent ideas shared by these outstanding instructors.
In keeping with the conference’s primary emphasis on prelicense course standards and instructor performance, attendees participated in an Examination Item Crafting Workshop conducted by John Morgan of Morgan Testing Services, New London, CT. Mr. Morgan discussed and illustrated standards for examinations and question writing principles to assist instructors in developing effective course examinations.
“Update” sessions on prelicense education, the license examination and continuing education were conducted by Commission Education and Examination Officer Anita Burt, Pamela Rorie, Continuing Education Officer Pamela Rorie, and Director of Education and Licensing Larry Outlaw. These sessions addressed matters of special interest to instructors, such as school and instructor license examination performance, the updated salesperson course syllabus, course examinations, problem topics on the license examinations, planned topics for the 2003-04 CE Update Course, and plans to reduce CE course completion reporting errors. In addition, Legal Education Officer Tricia Moylan conducted a forum on selected frequently misunderstood legal issues.
During the first day’s luncheon, the North Carolina Real Estate Educators Association (NCREEA) held its spring meeting and annual awards program under the capable direction of President Deborah Carpenter of the Fonville-Morisey Center for Real Estate Studies in Raleigh. The Association presented its “Program of the Year” award to Central Piedmont Community College in Charlotte and its “Educator of the Year” award to Anne Rasheed of Boone, who teaches for the J. Y. Monk Real Estate Training Center.
Also during the luncheon, Allan Dameron, Real Estate Commission Chairperson from Holden Beach, presented the first annual Billie J. Mercer Excellence in Education Award to NCREEA’s Educator of the Year, Anne Rasheed. This award was recently established by the Commission in memory of Mrs. Mercer who, as a member and former chairperson of the Commission, was especially dedicated to furthering the education of real estate practitioners and persons entering the real estate business. In a special presentation ceremony honoring Ms. Rasheed and the late Mrs. Mercer, Mr. Dameron and others paid tribute to Mrs. Mercer, who lived and operated her own real estate company in Wilson. Those participating in this special presentation included Connie Corey, President of the North Carolina Association of REALTORS®, who was a close personal friend, and David Cockrell, Immediate Past President of the Wilson Board of REALTORS®. Other special guests in attendance at the presentation included C. H. Mercer (Billie’s husband), Fran Cockrell (close friend and fellow REALTOR®), Commission members Wanda J. Proffitt of Burnsville, Sang Hamilton of Winton and Mona Hill of Pinehurst, and Commission Executive Director Phillip T. Fisher. Mrs. Mercer would have been extremely pleased to see the tremendous attendance at this year’s conference and the level of dedication demonstrated by North Carolina’s real estate educators.
This article came from the May 2003-Vol34-1 edition of the bulletin.