Employment Opportunities Available

Are you interested in joining the staff of the North Carolina Real Estate Commission? From time to time, employment opportunities become available. They are posted on the Commission’s website under the “About Us” tab.

We currently have available the following position:

Information Officer – Responds to telephone and written inquiries from real estate licensees and consumers.  Please apply on or before October 7, 2022.

Auditor –  Audits and inspects real estate brokerage trust account records state-wide.  Please apply on or before October 7, 2022.

Click here for more information.

The Future of Real Estate Technology

Presentation Wednesday October 12 @ 11:00 am

The North Carolina Real Estate Commission is exploring coming developments in real estate technology that affect the real estate profession. In order to understand some of the new technology trends and developments, the Commission has asked national speaker and real estate technology trainer Craig Grant to do a presentation at the regular October Commission meeting.

Craig Grant is the CEO of the Real Estate Technology Institute – RETI.us. A graduate of the University of Florida, Grant speaks regularly on real estate technology topics at conferences and events throughout the country and often conducts education for the National Association of REALTORS® (NAR), state REALTOR® associations, and national franchises.

On Wednesday, October 12^th at approximately 11:00 am Grant will be sharing a presentation with the members of the North Carolina Real Estate Commission on, “The Future of Real Estate Technology,” addressing such topics as:

• Developments and trends in smart houses and residential construction
• The use of crypto currency and NFTs in real estate transactions
• Augmented and virtual reality as a means of showing homes and delivering brokerage services
• Big Data, PII,Cybersecurity concerns vital to the real estate industry

You can watch the Commission meeting on Wednesday, October 12^th beginning at 9:00, or log on any time before 11:00 for this presentation. Simply use the link on the home page of the Commission’s website at NCREC.gov. We hope to see you there!

The Commission Names Minerva Mims as Its First DEI Officer

The North Carolina Real Estate Commission is excited to welcome Minerva Mims as its first new Diversity, Equity, and Inclusion (DEI) Officer.

Mims holds a Juris Doctor from North Carolina Central University School of Law (2011).  She brings to the Commission a wealth of experience in legal education, legal research and writing, and compliance. In addition to her legal and compliance background, she has been a real estate licensee for over 5 years.

In her new role, Mims will focus on evaluating the Commission’s current diversity and inclusion initiatives and recommending strategies that align with the Commission’s DEI goals. She will also be responsible for raising awareness among licensees and the public, as well as supporting and implementing policies, programs, processes and initiatives to meet the Commission’s diversity-related objectives across the real estate brokerage profession.

ATTENTION: Communications from the Real Estate Commission are Important!

We send important notifications, reminders, and Letters of Inquiry to licensees via email as well as US mail. We do not send junk mail. Some examples of important items the Commissions sends via email include Letters of Inquiry pertaining to complaints, Postlicensing Course due dates and reminders, renewal reminders, CE completion reminders, and changes in license status and firm affiliation.

If you have not been receiving emails from the Commission, check your “Spam” Folder. If you find an email from the Commission there, add the Commission’s email (NCREC.gov) to your “Trusted/Safe Senders” list.

Also, check your license record on NCREC.gov to make sure the Commission has your current email address on record and your current physical addresses(es). Remember to review and update both your email and other address information whenever you change firms or move. Rule A .0103(b) requires you to notify the Commission within 10 days of any change in your contact information.

Additionally, if you receive a Letter of Inquiry from the Commission, Rule A .0601(e) requires you to provide a written response within 14 days of receipt. If you’re unable to respond within 14 days, contact the staff member who sent you the Letter of Inquiry and ask for an extension.

If you don’t keep your addresses up to date, you may not learn about any changes in your license status. Remember, any change in the status of your license or the license of your BIC or firm can affect your ability to work as a broker and may require your immediate action or action by your BIC. If you are a BIC, please make sure your firm’s broker associates see this article.

BIC STUDY – SUPERVISION AND RESPONSIBILITIES

If you are a BIC or are BIC-Eligible, you should have recently received an email from the Commission asking for your interest in participating in a focus group or survey about BIC responsibilities. The email reads as follows:

“The Real Estate Commission is studying BIC supervision and responsibilities. We are looking at current requirements for BICs and whether or not those requirements are adequate in this day and time. The study may or may not lead to rule changes in the future related to BIC education, experience, and/or duties.  We are inviting those brokers holding the status of BIC or BIC-eligible to join in this study with us, give us your thoughts and ideas on the subject, and be a part of any potential changes moving forward.  We will hold several 1-hour zoom conferences with various panels of BICs, BIC-eligible brokers, and staff to discuss the issues and whether or not changes are needed. The results will be reported back to the Commission members. If you are interested in participating in a panel, please respond to this email with a simple “yes”. Those of you who respond “yes” will receive an invitation to participate in either a Zoom conference or a brief survey, or both. If you do not wish to participate, there is no need to respond. Thank you for considering this – your input is important.”

If you:

• are a BIC or are BIC-Eligible,
• haven’t responded already, and
• are interested in participating,

find your email, click reply, and respond “Yes.” If you are not interested, no action is necessary and you should not reply.

The email looks like this:

North Carolina Real Estate Commission <bicstudygroup@ncrec.gov>
Sent: Tuesday, September 20, 2022, 4:## PM We look forward to hearing from you.

Disciplinary Actions

JASON MICHAEL COLEMAN (GREENSBORO) – By Consent, the Commission suspended the broker license of Coleman for a period of 12 months, effective September 23, 2022. The Commission then stayed the suspension in its entirety. The Commission found that Coleman was affiliated with a licensed real estate firm. On October 17, 2019, Coleman formed Jason Coleman Real Estate LLC but did not obtain a firm license for this entity. Coleman also did not, at any time material hereto, designate himself as Broker-in-Charge of this entity. Coleman was paid for brokerage activities in the name of the unlicensed firm. From November 10, 2020, through July 26, 2021, Coleman employed an unlicensed administrative assistant. Coleman allowed the unlicensed assistant to show properties for sale on three separate occasions.

CHRISTOPHER JAMES GOODWIN (MATTHEWS) – By Consent, the Commission suspended the broker license of Goodwin for a period of 2 years, effective September 1, 2021. The Commission found that in June 2016, a buyer contracted to buy residential property for which Goodwin was the listing agent. In July 2016, the Sellers of the subject property informed Goodwin of a class action lawsuit and settlement with CertainTeed where they received compensation for defective siding for which the Sellers had not yet made repairs. Goodwin did not disclose this fact during the transaction and the transaction closed. The buyer discovered the class action lawsuit after closing on the subject property and was barred from payment or remedy from the class action lawsuit. Goodwin has entered into a civil settlement with the buyer.

MAREK KUCHARSKI (RALEIGH) – The Commission accepted the voluntary surrender of the broker license of Kucharski effective September 14, 2022. The Commission dismissed without prejudice allegations that Kucharski violated provisions of the Real Estate License Law and Commission rules. Kucharski neither admitted nor denied misconduct.

SAUL ERNESTO ROMERO LARA (DURHAM) – By Consent, the Commission suspended the broker license of Romero Lara for a period of 12 months, effective September 1, 2022. The Commission found that in July 2021, Romero Lara acted as listing agent for the subject property located in Durham. Romero Lara received several offers from buyers’ agents on behalf of their buyer-clients. While the seller was considering offers, Romero Lara disclosed the terms of one offer to the agent for a buyer who had submitted a competing offer. Romero Lara’s actions created an unfair advantage.

TIFFANY RUSSELL (DURHAM) – The Commission accepted the voluntary surrender of the broker license of Russell effective September 14, 2022. The Commission dismissed without prejudice allegations that Russell violated provisions of the Real Estate License Law and Commission rules. Russell neither admitted nor denied misconduct.

MARTY ANDREW PENNELL (TAYLORSVILLE) – By Consent, the Commission reprimanded Pennell, effective September 23, 2022. The Commission found that in May 2021, Pennell acted as listing agent for the subject property. Pennell had been working with buyer clients since March 2021 in their search for a home. Pennell showed the subject property to his buyer clients before the marketing date specified in the listing agreement and prior to entering the property in the MLS. Pennell’s buyer clients submitted an offer that was accepted by Pennell’s seller clients prior to entering the subject property in to the MLS.

TERENCE LEE THOMAS (KNIGHTDALE) – By Consent, the Commission suspended the broker license of Thomas for a period of 6 months, effective September 20, 2022. The Commission then stayed the suspension in its entirety and placed Thomas on probation for a period of eighteen months. Thomas is also prohibited from engaging in property management for others and from handling entrusted funds or otherwise maintaining a trust account for others. The Commission found that Thomas managed a residential rental property and sent the property owner a rental proceeds check, which was returned by their bank for insufficient funds. Thomas provided inaccurate tax information to his owner clients regarding rental payments received on their behalf and failed to maintain transaction documents in compliance with Commission rules. Thomas also failed to deposit entrusted funds into a trust or escrow account and comingled funds. The Commission notes that Thomas no longer manages properties for others, no longer handles entrusted funds, and has remitted all owed funds to his former property owner client.

Staff Appearances

Janet Thoren, Director of Regulatory Affairs, spoke at Central Carolina Association of REALTORS yearly membership meeting on September 13.

Fred Moreno, Chief Deputy Legal Counsel, spoke at the Cape Fear REALTOR meeting on September 16.

Christy Evans, Consumer Protection Officer, spoke at the Realty Executives of Hickory meeting on September 21.

Hurricanes and Vacation Rentals

With hurricane season well underway, a review of the laws governing hurricanes, evacuations, and vacation rentals is appropriate.

1. The first and most important thing to remember is that when state or local authorities order a mandatory evacuation of a coastal area, tenants occupying vacation rental properties must comply with the order. Evacuations are ordered to protect human life and health and are not undertaken lightly. Brokers managing vacation rental properties should support state and local authorities by encouraging and facilitating tenant compliance with evacuation orders.
2. When a vacation tenant complies with an evacuation order, they are generally entitled to a refund of a share of the money they have paid for the rental (rent, security deposit, taxes, etc.) prorated for each night the evacuation order was in effect.
3. There is an exception to this rule, however. If the tenant was offered travel insurance that covered the risk of mandatory evacuation, then the landlord has no obligation to refund the tenant’s money. To trigger the exception, the cost of the insurance offered cannot exceed 8% of the cost of the vacation rental and the policy cannot exclude the particular storm. It is important to note that some vacation rental insurance companies exclude coverage for storms that have been named by the National Hurricane Center prior to date the insurance was purchased. If a storm is named prior to the purchase of travel insurance and, if the insurance will not cover the tenant for losses or damages resulting from a mandatory evacuation or from damages and losses caused by the named storm, then the tenant is entitled to a refund from the landlord of all monies paid.
4. If, following the storm and after any mandatory evacuation has been lifted, the landlord or their broker cannot provide a promised rental property to a vacation rental tenant – whether the reason is that the house was significantly damaged or that it is inaccessible due to damage to, or closure of, roads or ferries – the tenant is entitled to either a refund of his money or the substitution of a reasonably comparable property at the same cost. This refund may come in the form of a paid claim against travel insurance. Tenants and vacation rental managers are encouraged to read and understand the limits of coverage being offered.
5. Go to readync.org, which provides emergency management planning tips including information about current mandatory evacuations.
6. Go to ncdoj.gov/price-gouging-law-in-effect-in-north-carolina-2/ for information about price gouging laws following the declaration of a state of emergency in North Carolina.

Mel Black elected Chair and Jeff Malarney, Vice Chair of the Commission

Mel Black of Raleigh has been elected as Chair of the North Carolina Real Estate Commission and Jeff Malarney of the Outer Banks as Vice Chair. Their terms began on August 1, 2022.

Mel Black was appointed to the Commission by Governor Cooper in 2019. As a real estate and appraisal educator, Mr. Black develops and delivers real estate curriculum for the Colibri Group. As an attorney in private practice with Everett Gaskins Hancock, LLP, he focuses on administrative law and occupational licensing. Mr. Black is a third-generation broker and second-generation appraiser in North Carolina. He has been licensed as a broker since 1988 and certified as an appraiser since 1991.

Mr. Black is the former Executive Director of the North Carolina Appraisal Board and former Education and Examination Officer with the North Carolina Real Estate Commission.

He has been elected to multiple national positions, including president of the Association of Appraiser Regulatory Officials, member of The Appraisal Foundation Advisory Council and its State Regulator Advisory Group, and member of the Board of Directors of the Council on Licensure, Enforcement and Regulation. For his service to North Carolina, Mr. Black was inducted into the Order of the Long Leaf Pine.

Mr. Black was named Educator of the Year by the North Carolina Real Estate Educators Association and received the Larry A. Outlaw Excellence in Real Estate Education Award from the North Carolina Real Estate Commission.

He holds a Juris Doctorate from the North Carolina Central University School of Law, an Educational Specialist degree from Appalachian State University, a Masters of Education from Winthrop College, and a Bachelor’s degree from the University of the State of New York. Mr. Black and his children, Andrew and Mari, are based in Raleigh.

Jeff Malarney, a former member of the Real Estate Commission, was reappointed to the Commission in 2018 by Governor Roy Cooper. He has practiced law in the Outer Banks for over 27 years and is a principal of the Law Offices of Jeff Malarney, PLLC. He is also a licensed real estate broker and property insurance agent.

A Commander (ret.) of the United States Navy Judge Advocate Corps, he is a former Special Assistant United States Attorney, past president of the North Carolina Vacation Rental Manager’s Association, and past chairman of the Outer Banks Chamber of Commerce.

Malarney founded and operated a mortgage brokerage company, an insurance agency, and created H20BX Waterpark in Currituck, North Carolina. Malarney holds a JD from Wake Forest University School of Law and BA (cum laude) in Economics and Management from Albion College.

Commission Resources

Did you know the Commission’s website (ncrec.gov) offers a wide variety of resources for brokers and consumers?

Resources for brokers include:

• Licensee Login that enables brokers to review their own license records, including contact information, license status, company affiliations, and education history, and update information as needed;
• Broker-in-Charge Login that enables BICs to review the license records of their affiliated brokers, to determine whether they have renewed their licenses and/or completed educational requirements;
• Video Library that provides a variety of brief videos regarding rules and processes; and
• Publications Page that provides access to current and previous editions of the eBulletin, materials from previous years’ Update courses, disclosure forms, Q&A brochures, and the Real Estate Manual.

Resources for consumers include:

• Complaint Form that enables consumers to submit written complaints against licensees;
• Fair Housing links and publications that educate consumers on rules and laws related to discrimination in real estate transactions, including Commission rules and the Fair Housing Act;
• Q&A Brochuresthat inform consumers about common components of and issues during real estate transactions, such as Offer and Acceptance, Due Diligence Fees, and Tenant Security Deposits; and
• Related Links that provide access to a variety of organizations and websites that offer related resources and services.

Also, the Support page provides brokers and consumers with responses to frequently asked questions. For more information, contact the Education & Licensing Division at ls@ncrec.gov or 919.875.3700.