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Announcement: The Commission names new Assistant Directors of Regulatory Affairs and Education and Licensing
Kristen Fetter was named the Assistant Director of Regulatory Affairs for the North Carolina Real Estate Commission in October 2023. Ms. Fetter graduated from North Carolina State University with degrees in Political Science and Spanish Language and Literature. She received her law degree from the Norman Adrian Wiggins School of Law at Campbell University in 2006.
Since graduating from law school, Kristen has spent the majority of her career working in the court system. Kristen was the Trial Court Administrator in Wake County for 3 years. She served as a criminal prosecutor for nearly 12 years and is licensed to practice law in North Carolina, Arizona, and Virginia. Kristen joined the Commission’s Regulatory Affairs staff in November 2021.
As the Assistant Director of Regulatory Affairs, Kristen’s duties involve prosecuting complaints before the Commission, conducting settlement negotiations of contested cases, representing the Commission on appeal, and responding to inquiries relating to the License Law, Commission rules, and real estate transactions, generally.
Kizzy Crawford Heath was named the Assistant Director of Education and Licensing for the North Carolina Real Estate Commission in December 2023. Ms. Heath graduated from Elizabeth City State University with a degree in Criminal Justice and a minor in Pre-law. She received her Masters in Adult Education degree from the University of Phoenix in 2004, and her law degree from North Carolina Central University School of Law in 2010.
Since graduating from law school, Kizzy was on the faculty at North Carolina Wesleyan University and Wake Technical Community College where she taught Legal Environment, Criminal Law, Constitutional Law, Court Procedure and Evidence, and Ethics. Ms. Heath authored supplemental instructional resources for the education and publishing company, Pearson Education, prior to joining the Commission. As the former Legal Education Officer at the Commission, she wrote various educational material, the mandatory Update Course for real estate brokers each license year, and co-authored the North Carolina Real Estate Manual.
As the Assistant Director of Education and Licensing, Kizzy’s duties involve overseeing the development of educational materials for consumers and real estate brokers, licensure of brokers and business entities, responding to inquiries relating to License Law, Commission rules, and educational programs, generally.
Case Study: Material Facts
FACTS: A provisional broker located a property for their buyer client. The description of the property indicated that the driveway encroached on the adjacent lot.
The provisional broker did not disclose the encroachment to their buyer client, inquire with the listing agent about the encroachment, or ask to view the property survey. After the provisional broker informed the buyer client about the property, the buyer client expressed an interest in viewing it.
After viewing the property, the buyer client asked the provisional broker to submit an offer on their behalf. The seller accepted the buyer’s offer and the parties went under contract for the property.
The contract allowed for a due diligence period for the buyer to conduct inspections on the property. During the due diligence period, the buyer hired vendors to conduct a home inspection and a survey. At the conclusion of the survey, the buyer was notified by the surveyor that the driveway of the property encroached on the adjacent lot.
The buyer asked the provisional broker about the encroachment. The provisional broker indicated that it was the duty of the listing agent to disclose the encroachment to all parties in the transaction. Subsequently, the buyer terminated the contract during the due diligence period.
ISSUE: Did the provisional broker comply with N.C.G.S. §93A-6(a)(1)?
ANALYSIS: No. N.C.G.S. §93A-6(a)(1) indicates that the Commission has power to suspend or revoke at any time a license issued under the provisions of this Chapter, or to reprimand or censure any licensee, if following a hearing, the Commission adjudges the licensee to be guilty of making any willful or negligent misrepresentation or any willful or negligent omission of material fact.
A material fact is any fact that could affect a reasonable person’s decision to buy, sell, or lease. Therefore, a broker has an affirmative duty to discover and disclose material facts to all parties in a transaction. Additionally, brokers are expected to take reasonable steps to discover all pertinent facts that are necessary to serve their clients’ interest. In this scenario, the driveway encroaching on the adjacent lot is a fact about the property that the provisional broker should have timely disclosed to their buyer client.
Further, the Commission assesses whether or not a broker knew the existence of a material fact by analyzing documents and reviewing written correspondence. Essentially, the Commission uses the Reasonableness Standard to evaluate a broker’s duty to discover and disclose material facts. This standard dictates that a broker has a duty to discover and disclose any particular material fact if a reasonably knowledgeable and prudent broker would have discovered the fact during the course of the transaction and while acquiring information about the property.
In this scenario, the provisional broker was made aware via the property description that the driveway of the property encroached on the adjacent lot. Therefore, the provisional broker was aware of the existence of the encroachment prior to informing their client about the property’s availability and viewing it. Further, the provisional broker did not act like a reasonably prudent broker because theyfailed to ask additional questions about the encroachment or the property survey.
In this case, the provisional broker had a duty to investigate the encroachment and should have assisted the buyer-client in obtaining any information related to the encroachment and property. The provisional broker’s assertion that the discovery of the encroachment was the duty of the listing agent is incorrect. Every broker must exercise reasonable care and diligence in discovering and disclosing all material facts to all interested parties in a timely manner in adherence to N.C.G.S. §93A-6(a)(1). Lastly, Rule 58A .0506 indicates that a provisional broker must be supervised by a broker-in-charge in order to conduct brokerage activity. The provisional broker failed to adhere to N.C.G.S. §93A-6(a)(1) and as a result, the provisional broker and broker-in-charge may be subject to disciplinary sanction by the Commission.
RESOURCES:
N.C.G.S. § 93A-6(a)(1), 93A-6(a)(8), and 93A-6(a)(10)
License Law and Commission Rules: Rule 58A .0506
Articles: What is Common Knowledge?
Staff Appearances
Brian Heath, Consumer Protection Officer, spoke at Coldwell Banker Howard, Perry, and Walston on December 5.
Steve Fussell, Chief Consumer Protection Officer, spoke at Fonville Morisey Realty-Cary on December 5.
Bruce Rinne, Information Officer, spoke at Burlington-Alamance County Association of REALTORS® on December 14.
Diversity, Equity, and Inclusion
Dr. Martin Luther King Jr. was a tireless advocate for racial equality, the working class, and marginalized people around the world. In honor of Dr. King’s life and legacy the third Monday in January of each year is celebrated as Martin Luther King, Jr. Day (MLK Day), a federally recognized holiday. MLK Day is also designated as a National Day of Service, the only federal holiday with this designation. The National Day of Service was established as a way to honor Dr. King by serving the community, taking action to create a more just and equitable society for all.
The Commission encourages you to take this day to engage in your community through volunteer opportunities. To learn more about Dr. Martin Luther King, Jr or to find volunteer opportunities visit the links below:
Martin Luther King, Jr. | About Dr. Martin Luther King, Jr. (thekingcenter.org)
The Martin Luther King, Jr. Research and Education Institute (stanford.edu)
Martin Luther King, Jr. | NAACP
Volunteer Opportunities | nc.gov
MLK Day of Service | Youth Service America (ysa.org)
Martin Luther King, Jr., National Day of Service | AmeriCorps
Tech Corner: The Commission’s Tech Study Group Investigates New Technology Uses
The Commission’s Tech Study Group, led by Vice Chair T. Anthony Lindsey, is excited to share new technology that is being investigated by the Commission. You can hear more about the Tech Study Group by watching the video below.
If you have any additional questions about the Tech Study Group, please visit our website at www.ncrec.gov.
Happy New Year!
As we bid farewell to the old year, the North Carolina Real Estate Commission extends warm wishes to all of our dedicated real estate brokers. As you embark on the New Year, it is important to take a moment to celebrate your accomplishments in your real estate career; your dedication and professionalism contributed to the success of real estate brokerage in North Carolina.
During this New Year, the North Carolina Real Estate Commission wishes you a year of prosperity and opportunity. We will continue to support you on your real estate journey by providing educational resources and guidance on regulatory compliance. To that end, while navigating the real estate market, we encourage you to stay informed on License Law and Commission Rules. This will safeguard your professional reputation and demonstrate to the consumer that you possess the knowledge and competency to practice real estate brokerage.
If you have questions about License Law and Commission Rules and permissible brokerage activity, contact Regulatory Affairs at regulatoryaffairs@ncrec.gov or 919.719.9180.
May the coming year bring you joy and success with your real estate endeavors!
Diversity, Equity, and Inclusion Updates
Over the last several years the demographic makeup of the real estate consumer has become increasingly more diverse. The North Carolina Real Estate Commission recognizes the need to cultivate a diverse and inclusive real estate industry.
The Commission is developing programs as a part of our ongoing efforts to engage with and attract diverse, and often times underrepresented, groups of professionals to the real estate industry. One of those programs is a college outreach program in which the Commission is partnering with Historically Black Colleges and Universities (HBCUs) in North Carolina. The primary goal of these partnerships is to expose students to, and increase their awareness of, the many career opportunities available in real estate. With the support of other industry entities and organizations, we will accomplish this goal by hosting campus guest speaker series, campus career fairs and other networking opportunities, mentorships, and internships. As the Commission works to develop and implement additional programs, we are always open to your feedback and ideas. If you would like to provide feedback or if you would like to be a part of our programing, please contact us here and Commission staff will be in contact with you.
Tech Corner: Agent Safety
Working in the field of brokerage can be very rewarding; however, brokers must be diligent about maintaining their safety while practicing brokerage activities. This article will provide brokers with some examples of technology that can be instrumental in aiding broker safety.
Wearable Technology
- Brokers may find it beneficial to wear smartwatches with GPS tracking and emergency alert functionalities so their professional network can be informed of their location and respond immediately when distress is detected.
Communication Applications/Platforms
- Communication and collaboration platforms can assist brokers with sharing real-time information with other agents and their supervisors. Further, mobile applications with secure messaging, video conferencing, and location sharing capabilities can help ensure that brokers remain safe and receive support if they feel unsafe.
Drones
- Drones that are equipped with cameras and sensors may be useful tools to gather information about a property without exposing agents to potential hazards. Before using drones for properties that don’t belong to you or your client, first become familiar with federal, State and local requirements for, and restrictions on, drone use.
The Commission does not endorse the use of specific technology; however, brokers may conduct research or speak with other professionals to determine what technology, if any, may meet their safety needs. Further, when technology is used appropriately, it can allow brokers to remain connected with their professional networks, which can be vital to helping ensure their safety.
If you would like to read more about agent safety, review this resource entitled, “North Carolina Real Estate Agent Safety Guide.”
Staff Appearances
Len Elder, Director of Education and Licensing, and Kizzy Crawford Heath, Legal Education Officer, spoke at Canopy REALTOR® Association on November 3.
Dee Bigelow, Consumer Protection Officer, spoke at Greensboro Regional REALTORS® on November 7.
Janet Thoren, Legal Counsel, and Christy Evans, Consumer Protection Officer, spoke at Roanoke Valley Lake Gaston Board of REALTORS® on November 17.
Miriam Baer, Executive Director, spoke at Land of the Sky Association of REALTORS® on November 17.
Brian Heath, Consumer Protection Officer, spoke at Keller Williams Realty Fayetteville on November 28.