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Satisfying the NC Broker License Continuing Education Requirement
This year, there will be very few licensees who are exempt from the annual continuing education (“CE”) requirements. With over 7,000 licenses issued in the 2022-2023 license year, the elimination of equivalent credit, and the repeal of CE exemptions for brokers licensed in another state, there are quite a few brokers who must now complete North Carolina approved CE for the first time. In this article, we will review the CE requirement, how a broker can check their license record, and where to find CE courses for credit.
Pursuant to Rule 58A .1702, all North Carolina brokers must complete eight hours of CE each license year. These eight hours of CE are earned by successfully attending a four-hour elective course and a four-hour General Update (GENUP) or Broker-In-Charge Update (BICUP) course. Brokers who are BIC-Eligible, whether they are designated as a Broker-In-Charge or not, must attend the BICUP course to satisfy their continuing education requirement. All other brokers must complete the GENUP course. Every broker licensed prior to July 1, 2023, must complete eight hours of continuing education by 11:59 PM EST on June 10, 2024, to remain eligible for active licensure.
If you are unsure whether you have completed any continuing education that applies to this year’s requirements, you can go to the Commission’s website and access your Licensee Login. On the Commission’s homepage, select Licensing, and then select Licensee Login. Once you have logged in, select “CE License Information.”
Under your name are two lines of text, “Current Update Hours completed for the 23-24 License Year” and “Elective Hours completed for the 23-24 License Year.” A four beside either of these phrases means that you have satisfied that portion of your CE requirement. If there is a zero, then you have not completed that CE requirement. Therefore, you will need to complete this requirement prior to June 10, 2024, at 11:59 PM EST to maintain an active license status on July 1st.
If you need to find an Update course, click the Education tab on the Commission’s homepage. In the drop-down select “Search CE Course Schedules.” You can then search for the course you need to complete and even limit your search to a specific location, education provider, instructor, etc. The course number for the synchronous (live online) GENUP course is 5924; the in-person one is 9924. The course number for the synchronous BICUP course is 5824; the in-person one is 8824. While the Update course can only be taken live, whether online or in-person, electives can be taken in-person, synchronously or via distance format (self-paced online).
NOTE: You can either search for live electives on this page or go to the Distance Continuing Education Providers page to find a provider that offers self-paced online electives.
For each CE course you complete, the education provider of that course is required to provide you with a course completion certificate and report your course completion to the Commission within 7 days. It is your responsibility to keep that course completion certificate in your personal records and review your license record to ensure the course completion has been reported. If the course has not posted to your license record within 10 days, contact the education provider and request that they report your course completion as soon as possible. In addition to completing your CE requirement, do not forget to renew your license between May 15th and June 30th. While you do not need to complete CE prior to renewing your license, you will need to complete it prior to June 10, 2024, at 11:59PM EST.
When Does an Offer Become a Contract?
The Standard Form 2-T is called the “Offer To Purchase and Contract” for good reason. The form begins its life as an offer usually submitted by a prospective buyer to a seller through their respective agents. The offer may later become a contract if and only if all of the criteria set forth in the Statute of Frauds are satisfied.
In order to satisfy the Statute of Frauds for the creation of a binding real estate sales contract, there must be a written agreement signed by all parties and the fact that it has been signed by all parties must be communicated to any party against whom enforcement is sought. Until all of these criteria have been satisfied, there is no contract.
In our investigations of complaints filed against brokers, we sometimes find that brokers have informed buyers, sellers, and/or other brokers that the sellers have “orally accepted” an offer or that there is an “oral or verbal agreement” between the sellers and buyers. Use of such terms is misleading and therefore inappropriate, because these terms can lead others into falsely believing that a binding contract has been formed.
When a seller says, “I will accept that offer,” the seller is orally expressing a willingness to accept the offer. However, acceptance means that a seller has signed a buyer’s written offer without making any changes. Therefore, expressing a willingness to accept an offer is not equivalent to accepting (i.e. signing) a written offer and does not create a contract. Until a seller signs a buyer’s written offer without making any changes and communicates that fact to the buyer (or buyer agent), no contract has been formed and the seller is free to consider and accept an offer from another buyer. For these same reasons, an oral offer can never become a contract and a buyer agent should encourage their buyer-clients to reduce all offers to writing.
When a buyer agent submits a written offer and the listing agent replies that the seller has “accepted” the offer, the buyer agent should immediately ask the listing agent, “Have all the sellers signed the offer?” If the listing agent replies, “No,” then the seller has NOT legally accepted the offer, and the buyer agent should not inform the buyer that the seller has accepted the offer. If the listing agent replies, “I don’t know,” then the broker cannot be certain whether a contract has been formed, because although the so-called “acceptance” has been communicated, it is not clear whether the offer has been signed.
Example: You’re a listing agent and receive a written offer from a buyer or buyer agent. The seller and buyer negotiate orally through you and the buyer agent via phone or text until they come to mutually-agreeable terms. The seller has signed nothing. Then you receive a written offer from a second buyer or buyer agent. Until the seller signs a written offer from the 1st buyer without making any further changes and you communicate that fact to the first buyer (or buyer agent), the only thing you can tell the second buyer (or buyer agent) with your seller’s permission is, “There is an offer on the table.” Saying that there is a “verbal or oral contract” or a “verbal or oral agreement” is improper, because the use of the term “oral” contract or agreement falsely implies there is a binding agreement between the seller and the first buyer. Use of the term “verbal” agreement is ambiguous because “verbal” simply means “in words” – which might be oral or might be written, and again can imply that there is a binding agreement when in fact there is not. Such an implication can discourage the second buyer from looking at the property and making an offer.
A seller’s agent has a duty to get the best price and terms for the seller. One way to do this is by soliciting as many offers as possible. If the seller’s agent misleads a second prospective buyer into believing there is a binding agreement between the seller and the first buyer; thereby discouraging the second buyer from making what could be a better offer than submitted by the first buyer, then the seller’s agent is doing a disservice to the seller-client and giving an unfair advantage to the first buyer to the detriment of the second buyer.
Until all of the criteria set forth by the Statute of Frauds have been satisfied, the following statements are prohibited:
- The seller has orally accepted the offer.
- We have an oral agreement.
- We have a deal.
- We’re under contract.
- The property is sold.
- The property is under contract.
It is a misrepresentation of material fact, and therefore improper, for a broker to inform a buyer that their offer has been accepted when the seller has not signed an unchanged offer. North Carolina General Statutes § 93A-6(a)(1), (8), and (10) authorize the Real Estate Commission to pursue disciplinary action against a broker who misrepresents a material fact, is unworthy or incompetent to act in a manner which protects the public, or engages in improper conduct, respectively. We recommend that you educate yourself, your clients and your customers regarding the requirements for forming a contract.
The Commission publishes a variety of brochures to help brokers and consumers better understand various aspects of real estate transactions. One such brochure is entitled, “Questions & Answers on: Offer & Acceptance.” This brochure will help you and your clients better understand this part of the home-buying process. If, after reading this article and the aforementioned brochure, you are unclear regarding the criteria for forming a valid and binding contract and how to communicate this process to buyers and sellers, then you should immediately consult your Broker-In-Charge as this is an extremely important part of every real estate sales transaction.
Using Artificial Intelligence for Real Estate Brokerage
Victoria, NCREC’s first AI generated assistant, appeared in the January 2024 eBulletin on behalf of the Tech Study Group.
Once Victoria made her debut appearance in the eBulletin, the Commission consistently received the following question, “How did you create the video?”
In the following instructional video, Victoria explains how she was created. She also mentions how brokers/brokerages can use AI videos while practicing real estate to help educate and communicate with clients and consumers.
Simplified Continuing Education Hours to Increase Professional Competence
Pursuant to Rule 58A. 1702, North Carolina brokers must complete eight credit hours of real estate continuing education each license year. The eight hours consist of:
- four credit hours of elective courses; and
- four credit hours of either the General Update Course or the Broker-in-Charge Update Course.
All brokers without BIC-Eligible status and provisional brokers must attend the General Update Course and all Brokers-in Charge and BIC Eligible Brokers must attend the Broker-in-Charge Update Course. A broker is required to complete eight credit hours of continuing education by June 10th at 11:59 PM EST. This requirement begins upon the second renewal following initial licensure and upon each subsequent annual renewal.
In the past, Rule 58A .1708 permitted brokers to request equivalent credit for a course that was not approved by the North Carolina Real Estate Commission by submitting a $50 fee, course outline and completion certificate. On July 1, 2023, the availability of equivalent credit was removed for all brokers, except an instructor who either authored or taught a course. Therefore, there is no equivalent credit offered for a course that is not approved by NCREC. A broker who previously submitted courses for equivalent continuing education credit should take the required Update course and an approved North Carolina elective prior to the June 10th deadline.
Rule 58A .1708 was changed to ensure that all North Carolina brokers are required to take North Carolina approved courses. The change also eliminates the need for brokers to pay additional fees, especially when courses were not approved for equivalent credit.
Rule 58A .1711 previously exempted brokers who were licensed in another state from the continuing education requirements in North Carolina. On July 1, 2023, the Commission repealed that rule. All brokers licensed in North Carolina must meet the same eight hour continuing education requirement. The prevalence of online courses means that this is no longer an unreasonable burden for licensees living outside North Carolina. These rule changes were intended to make things simpler for brokers and to assure that all brokers in North Carolina obtain the same education regarding North Carolina rules, statutes and information to ensure the competence of brokers practicing in the state. If you have questions about the status of your continuing education, you can login and check your continuing education record on the Commission’s website.
Staff Appearances
Bruce Rinne, Information Officer, spoke at Keller Williams Realty in Raleigh on February 7.
Shanna Hardy, Consumer Protection Officer, spoke at Keller Williams Realty Fayetteville on February 8.
Christy Evans, Consumer Protection Officer, spoke at Premier Sotheby’s International Realty on February 13.
Jean Hobbs, Auditor/Investigator, spoke at Bottom Line Property Management on February 27.
Jean Hobbs, Auditor/Investigator, spoke at the NC Property Management Conference on February 29.
Diversity, Equity, and Inclusion: March is Women’s History Month
In 1978, a California school district started a weeklong celebration of women’s contributions to history. This evolved into a month long celebration in 1987 and continues today. In honor of Women’s History Month, the Commission is taking a look at the history of women in real estate.
Although women have historically been involved in real estate since its inception, their roles were limited to administrative ones until the late 1800’s. As women slowly started to move into agent roles, they often found themselves on their own with no support. The National Association of Realtors® (NAR) was founded in 1908, as a resource to support agents. However, during its first few decades, membership was comprised primarily of men as many local boards barred women from membership. To circumvent the bans instituted by local boards, women formed their own real estate organizations, such as the Women’s Council of Realtors® in 1938. This Council assisted women in advancing as professionals and leaders in the field of real estate.
Many women have served on the Commission since its inception in 1957, with the first being Dee McCandlish who was appointed in 1978. Currently, two of the nine Commission members are women: Sandra O’Connor, who has served since 2017, and Jocelyn Mitnaul Mallette, who has served since 2023.
To learn more about Women’s History Month or women’s history in real estate refer to the links below:
Women’s Council History – Women’s Council of Realtors
Disciplinary Actions
BETTY CAROLINA ALVARADO (MONROE) – The Commission accepted the permanent voluntary surrender of the real estate license of Alvarado, effective January 17, 2024. The Commission dismissed without prejudice allegations that Alvarado violated provisions of the Real Estate License Law and Commission Rules. Alvarado neither admitted nor denied misconduct.
CAROLINA TRACE GATED PROPERTIES LLC (SANFORD) – By Consent, the Commission suspended the firm license for a period of 12 months, effective January 1, 2024. The Commission found that firm failed to adequately supervise an affiliated broker allowing him to conduct brokerage services during a period when his license was on active suspension.
JAMIE ELIZABETH CHRISTENSEN (FAIRVIEW) – By Consent, the Commission suspended the broker license of Christensen for a period of 12 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Christensen listed a property for sale in Buncombe County, N.C. As a part of that listing, Christensen hired a vendor to create drawings of the subject property, as well as to its square footage. The vendor noted on the renderings that all measurements are approximate, and that actual measurements may vary. Despite this notice on the face of the drawing regarding its accuracy, Christensen failed to verify the square footage of the subject property prior to listing it on the Multiple Listing Service (MLS).
ELLEN NORA DEESE (THOMASVILLE) – By Consent, the Commission suspended the broker license of Deese for a period of 12 months, effective November 1, 2023, but stayed the suspension after 3 months upon certain conditions. The Commission found that Deese, acting as a buyer’s agent, found an unclothed semiconscious person in a home during a showing and ran out of the home with her buyers but did not contact anyone else until the following morning, when Deese left feedback to the listing agent on the showing site referencing finding a person “drunk” at the residence. The individual was, in fact, the seller who had suffered a medical emergency and was later found by his family, transported to the hospital, and nine days later passed away. Deese neither admitted nor denied misconduct.
BRANDY NICOLE KALISCH (FAYETTEVILLE) – By Consent, the Commission reprimanded Kalisch, effective January 5, 2024. The Commission found that Kalisch failed to fully provide trust account records to a Commission auditor in a timely manner to sufficiently show the proper deposit and disbursement of funds into and from the trust accounts. Respondent provided records for February, March and September 2023 that showed substantial compliance with Commission rules.
DENISE II, INC (FAYETTEVILLE) – By Consent, the Commission reprimanded the firm effective January 5, 2024. The Commission found that the firm failed to fully provide trust account records to a Commission auditor in a timely manner to sufficiently show the proper deposit and disbursement of funds into and from the trust accounts.
VERRENDRA BABU GANNE (CARY) – By Consent, the Commission reprimanded Ganne, effective January 1, 2024. The Commission found that Ganne entered into a property management agreement with the owners of the subject property. The tenants failed to pay rent for a 6-month period. Ganne failed to comply with the terms of the property management agreement to institute eviction proceedings, failed to follow the lawful requests of the client, and failed to properly protect and promote the client’s property.
EASTSIDE REALTY LLC (CARY) – By Consent, the Commission reprimanded the firm, effective January 1, 2024. The Commission found that the firm entered into a property management agreement with the owners of the subject property. The tenants failed to pay rent for a six-month period. The firm failed to comply with the terms of the property management agreement to institute eviction proceedings, failed to follow the lawful requests of the client, and failed to properly protect and promote the client’s property.
BARRY FULTON (SOUTHPORT) – The Commission accepted the voluntary surrender of the real estate license of Fulton, effective December 14, 2023. The Commission dismissed without prejudice allegations that Fulton violated provisions of the Real Estate License Law and Commission Rules. Fulton neither admitted nor denied misconduct.
KENNETH SCOTT HAWKINS (DURHAM) – By Consent, the Commission reprimanded Hawkins, effective January 15, 2024. The Commission found that Hawkins served as the listing agent for a property located in Raleigh, NC. Hawkins failed to properly review the listing agreement for the Subject Property, specifically with respect to ascertaining whether the sellers were current on all outstanding loans and not in default. Due to Hawkin’s failure to properly review the listing agreement, the sellers were unable to convey clear title at the time of closing, leading to the termination of the transaction.
RICHARD ARTHUR HUBBELL LINDAU (ASHEVILLE) – By Consent, the Commission suspended the broker license of Lindau for a period of 6 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Lindau acted as a buyer agent for clients who had made an offer to purchase on a property in Buncombe County, N.C. While the buyers were under contract, and prior to closing, the buyers received an appraisal report which revealed a discrepancy in the property’s square footage compared to what was listed in the Multiple Listing Service (MLS). Lindau failed to verify the square footage of the subject property prior to closing.
COSTELLO REAL ESTATE & INVESTMENTS TRIANGLE LLC (RALEIGH) – By Consent, the Commission suspended the firm license for a period of 6 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that an affiliated broker of the firm routinely failed to adhere to agency requirements, specifically, providing and reviewing the working with Real Estate Agents and Disclose Form or to have a signed Buyer Agency Agreement in place prior to the broker submitting Offers to Purchas and Contract.
JAMES MATTHEW IVEY (RALEIGH) – By Consent, the Commission suspended the broker license of Ivey for a period of 6 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that an affiliated broker under the supervision of Ivey routinely failed to adhere to agency requirements, specifically, providing and reviewing the working with Real Estate Agents and Disclose Form or to have a signed Buyer Agency Agreement in place prior to the broker submitting Offers to Purchas and Contract.
NADIA MANSAR (RALEIGH) – By Consent, the Commission suspended the broker license of Mansar for a period of 12 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Mansar routinely failed to provide and review the Working with Real Estate Agents Disclosure Form or to have a signed Buyer Agency Agreement in place prior to submitting Offers to Purchase and Contract on behalf of clients.
KATHERINE ANNE JONES (JACKSONVILLE) – By Consent, the Commission suspended the broker license of Jones for a period of 9 months, effective December 15, 2023, but stayed the suspension after 1 month upon certain conditions. The Commission found that Jones acted as a co-listing agent for the sale of certain property and advertised said property for sale as having a square footage in excess of that shown by a subsequent listing broker and appraiser. Jones failed to retain calculation documents used to determine square footage.
STEPHANIE DANETTE KING (RALEIGH) – By Consent, the Commission suspended the broker license of King for a period of 12 months, effective January 1, 2024. The Commission found that King represented a buyer and submitted offers for two properties without informing the listing agents. After one offer was accepted, King continued to negotiate on the second property, which was also accepted. King lied to the listing agent for the first property and stated the buyer backed out due to a death in the family. The buyer closed on the second property and was sued by the first seller for the due diligence fee.
DAMION MARK PATTON (MORGANTON) – By Consent, the Commission suspended the broker license of Patton for a period of 12 months, effective January 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Patton represented the buyer of real property in the subject transaction. The fully executed offer to purchase and contract stated that the buyer could order a home warranty not to exceed $650 and the seller would pay for it at closing. Patton failed to order the home warranty and submit the invoice to the closing attorney in order to collect the payment from the sellers at closing.
Check Off Postlicensing Courses From Your To-Do List!
Are you a provisional broker? Do you have to complete Postlicensing (PL) education? Have you determined which delivery method will meet your educational needs?
The Commission encourages you to check your Postlicensing courses off of your to-do list this year!
- Pick a course delivery medium best suited for how you like to learn (e.g., in-person, synchronous such as Zoom, or self-paced distance).
NOTE: If you don’t complete all PL courses within 18 months of initial date of NC licensure, your license will be placed on inactive status until the educational deficiency is cured.
- Click this link to search all scheduled in-person, synchronous, or blended delivery PL courses by Course Name, Type of Delivery, Name of Education Provider or Instructor, City/County, or course dates. Click this link for a list of certified Education Providers who offer self-paced distance PL courses.
- A distance PL course must be completed (including successfully passing the end-of-course exam) within 180 days of course enrollment, Commission Rule 58H .0207(b).
NOTE: Be sure to allow adequate time to schedule and pass the proctored end-of-course exam prior to deadlines in the distance PL courses.
WARNING: Commission rules do not allow for ANY extension of time for ANY reason to complete PL education.
Simplified Continuing Education Hours to Increase Professional Competence
Pursuant to Rule 58A. 1702, North Carolina brokers must complete eight credit hours of real estate continuing education each license year. The eight hours consist of:
- four credit hours of elective courses; and
- four credit hours of either the General Update Course or the Broker-in-Charge Update Course.
All brokers without BIC-Eligible status and provisional brokers must attend the General Update Course and all Brokers-in Charge and BIC Eligible Brokers must attend the Broker-in-Charge Update Course. A broker is required to complete eight credit hours of continuing education by June 10th at 11:59 PM EST. This requirement begins upon the second renewal following initial licensure and upon each subsequent annual renewal.
In the past, Rule 58A .1708 permitted brokers to request equivalent credit for a course that was not approved by the North Carolina Real Estate Commission by submitting a $50 fee, course outline and completion certificate. On July 1, 2023, the availability of equivalent credit was removed for all brokers, except an instructor who either authored or taught a course. Therefore, there is no equivalent credit offered for a course that is not approved by NCREC. A broker who previously submitted courses for equivalent continuing education credit should take the required Update course and an approved North Carolina elective prior to the June 10th deadline.
Rule 58A .1708 was changed to ensure that all North Carolina brokers are required to take North Carolina approved courses. The change also eliminates the need for brokers to pay additional fees, especially when courses were not approved for equivalent credit.
Rule 58A .1711 previously exempted brokers who were licensed in another state from the continuing education requirements in North Carolina. On July 1, 2023, the Commission repealed that rule. All brokers licensed in North Carolina must meet the same eight hour continuing education requirement. The prevalence of online courses means that this is no longer an unreasonable burden for licensees living outside North Carolina.
These rule changes were intended to make things simpler for brokers and to assure that all brokers in North Carolina obtain the same education regarding North Carolina rules, statutes and information to ensure the competence of brokers practicing in the state. If you have questions about the status of your continuing education, you can login and check your continuing education record on the Commission’s website.