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Tech Corner: Using Chatbots & Automated Responses in Real Estate:

Using Chatbots & Automated Responses in Real Estate: Clients are expecting quick responses from a broker nowadays, sometimes within minutes. While no tool can replace the personal expertise of a licensed broker, chatbots and automated messaging systems can assist with simple tasks, ensuring that your clients or customers feel acknowledged and supported.

What is a Chatbot? A chatbot is a computer program powered by artificial intelligence (AI) that can simulate conversation with users. Chatbots are built into websites, social media platforms, and customer relationship management (CRM) tools.

Chatbots can:

If a chatbot seems too advanced or you are unsure of the technology, you could start with automatic email or text responses.

These other automated tools can:

Benefits of Automated Response Systems:

Keep In Mind:

NOTE: Do not over-rely on or overuse these tools. These tools are best for FAQ’s and scheduling, not for constant communications.

If you haven’t seen it yet, the North Carolina Real Estate Commission has its own Chatbot, Alfred. Alfred is available to answer any of your NCREC questions. Alfred was fed a variety of NCREC literature, like the License Law and Rules book, the North Carolina Real Estate Manual, and NCREC eBulletin articles. You can find Alfred at the bottom right-hand corner of our website, ncrec.gov.

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Video Link: https://youtu.be/PWDGL9NrgkQ

Did you know you can opt in to receive notifications about proposed or final rule changes? It’s a quick and easy process to subscribe to “rulemaking.”

Fair Housing

The Commission will host its third and final Fair Housing Symposium on October 30, 2025, at Cape Fear Community College in Wilmington, NC. Don’t miss this opportunity to deepen your understanding and stay informed. Register now on the Commission’s website to reserve your spot.

Fair Housing

Explore the Commission’s New Fair Housing Webpage — A Must-Have Resource for Brokers and Consumers

The Commission has launched a newly updated fair housing webpage designed to support both real estate brokers and the public. This comprehensive resource reinforces the Commission’s commitment to cultivating a real estate environment free of discrimination, ensuring fair and equal access and opportunity in housing.

Whether you’re a broker seeking guidance on fair housing compliance and best practices or a consumer looking to understand your rights, the fair housing page offers information to fit your needs. It includes:

Visit the new fair housing page here.

Request a Program Presenter

Are you interested in having a Commission representative present at your next training meeting or brokerage event?

The N.C. Real Estate Commission may be available to provide a presenter to give an informative presentation tailored for real estate professionals and consumers.

These sessions run at least 30 minutes (including time for Q&A) and focus on topics of special interest to licensees and the public, with no fee or expenses charged.

To request a presenter, submit the online form available on the Commission’s website. Requests should be made at least 30 days before your event and include an alternate date when possible. The Commission will make every effort to accommodate your request, depending on staff availability.

Keep in mind that Commission staff cannot speak at prelicensing or continuing education courses, nor can they revisit the same organization within a 12-month period. Also, continuing education credit is not awarded for attending these presentations.

This is a great opportunity to bring timely updates and insights directly to your office—so plan ahead and invite the Commission to join your next meeting!

Save the Date: NCREC Educators Conference

Join the North Carolina Real Estate Commission at its Educators Conference on Thursday, April 2, 2026.

From Application to Licensure:  The Role of Character and Fitness Review

A critical step in the licensure of all real estate brokers is the assessment of an applicant’s character and fitness. The Commission must ensure that applicants possess the character and fitness necessary to protect the public interest and promote public confidence in the real estate brokerage business.

All broker, firm, and real estate instructor applications with an identified character and fitness issue will be referred to the Commission’s Regulatory Affairs Division for a comprehensive character and fitness review as the last step in the license application process. In its review, the Commission regularly focuses on three areas: criminal conduct, occupational license discipline, and financial responsibility.

Criminal Conduct

Criminal convictions are the most common reason that an application is flagged for character and fitness review. The Commission may deny an application based on criminal history only if the Commission finds that the applicant’s criminal history  is directly related to the duties and responsibilities of a licensed broker or the conviction is for a crime that is violent or sexual in nature. N.C.G.S. § 93B-8.1(b).

Occupational License Discipline

Applicants must disclose if they are licnesed as a real estate broker in another state, or hold any other occupational licnese. It is also the applicant’s duty to disclose any previous occupational license discipline and any pending investigation by an occupational licensing body. The applicant should also disclose any previous discipline by the North Carolina Real Estate Commission. Disciplinary action taken against their licnese may be considered as part of the character and fitness review.

Financial Responsibility

The duties and responsibilities of a licensed real estate broker include finding an appropriately priced property for a buyer-client, providing a buyer with information about financing, assisting a seller in pricing property for competitive sale, and receiving, holding and accounting for client funds. An applicant’s past and current financial responsibility helps the Commission determine whether an applicant will be able to fulfill their responsibilities with competence.  Applicants are required to disclose all judgments and liens filed against the applicant. Their own financial responsibility or lack thereof reflects on whether or not they will deal honestly and responsibly with their customers’ and clients’ financial matters related to real estate.

In each of the cases described above, the Commission considers all of the evidence presented by the applicant, including evidence of rehabilitation, restitution, and character letters in support of the applicant’s licensure. The Commission will weigh the level and seriousness of the character issue, the time that has passed, and the applicant’s age at the time to decide whether licensure is appropriate.

Fair Housing

Final Fair Housing Symposium in Wilmington — Don’t Miss Your Chance to Attend

Last month, the North Carolina Real Estate Commission held its second Collaborative Fair Housing Symposium in Charlotte at the Canopy REALTOR® Association. The sold-out event brought together expert presenters from Charlotte-Mecklenburg Community Relations, the United States Attorney’s Office, Legal Aid of North Carolina’s Fair Housing Project, and the Commission itself.

Participants explored the more complex components of fair housing law, including protections for survivors of domestic violence, source of income discrimination, reasonable accommodations, legal ramifications—both civil and criminal—of noncompliance, and best practices to ensure compliance. Firsthand accounts from investigators and prosecutors offered a compelling look into the real-world impact of fair housing enforcement.

Missed the August Symposium? There’s one final chance to attend. The Commission will host its third and final Fair Housing Symposium on October 30, 2025, at Cape Fear Community College in Wilmington, NC. Don’t miss this opportunity to deepen your understanding and stay informed. Register now on the Commission’s website to reserve your spot.

https://www.ncrec.gov/FairHousing/Registration

Polybutylene Pipes: Is the mere presence material?

In the 2008-2009 General Update class on Material Facts, the NC Real Estate Commission made the following statement:

“Is the mere presence of polybutylene piping in a structure a material fact? Polybutylene piping is made from a plastic resin and was commonly used for a couple of decades in lieu of copper piping for water supply. The plastic tubing connected at various junctures into joints or “fittings.” These fittings were of two types, either “insert” or “non-insert.” Complaints arose from consumers about leaky pipes, especially where pipes met an “insert” type fitting.  Notwithstanding a Tennessee class action lawsuit which resulted in a fairly substantial settlement

between the manufacturer and claimants, the Commission’s study of this issue more than a decade ago revealed that:

● not all, or even most, polybutylene piping with insert fittings commonly fail;

● if a defect exists in the piping or fittings, it typically is not readily discernible; and

● no neighboring State has determined that the mere presence of polybutylene piping is a

material fact.

Thus, the Commission concluded that the mere presence of polybutylene piping in a structure is NOT a material fact. However, it becomes a material fact that must be disclosed when the licensee knows or should have known that there was a probable defect in the polybutylene piping. A licensee might know of a defect because s/he inquires and the owner honestly reports any water issues, or because the licensee sees evidence of water damage on walls, ceilings or floors. A licensee may have reason to know or suspect a problem where s/he is aware that there is a history of pipe failure in the subject property or is aware that polybutylene piping in some of the adjacent condos or town homes in the community have failed.

The Commission recommends that listing agents affirmatively inquire as to the type of piping in a property and whether there have been any problems with it in the past. If in a town home or condominium community, the agent should ask his/her owner whether s/he is aware of any problems with other units. If the answer to either is “yes,” then the agent should disclose this information to any prospective buyer and recommend that they have an inspection.”

This advice has not changed, and the mere presence of polybutylene pipes is not a material fact.  A broker representing a buyer might consider, as a best practice, advising their buyer client to discuss the matter with their insurer prior to making an offer.  If the insurer has restrictions, then that would be material to that buyer so the broker should ask about the presence of polybutylene pipes on behalf of their client.

Preventing Seller Impersonation Fraud in Residential and Commercial Transactions

Republished with permission from NC REALTORS®

QUESTION: I was contacted by someone wanting to list a parcel of vacant land. They say they live out of state and cannot meet in person. Given the growing number of scam listings and fake sellers, especially involving vacant land and commercial parcels, what steps should I take to confirm that this person is the rightful owner?

ANSWER: Seller impersonation fraud continues to be a serious and growing concern in both residential and commercial real estate, particularly with vacant land, abandoned properties, and trust or estate-owned assets. Scammers often use forged identification, fake notary stamps, real names from public records, and communicate exclusively via text or email.

IF YOU ARE SELLING PROPERTY FOR SOMEONE YOU HAVE NOT MET IN PERSON, ASSUME IT IS A SCAM UNTIL PROVEN OTHERWISE.

Whether it’s a $30,000 lot in a rural county or a $3 million commercial tract, below are steps agents can take to verify a remote seller’s identity. Firms can use the following to enact policies to help make sure agents avoid scams.

  1. Require a Government-Issued Photo ID: Ensure the name and address match public records for the record property owner. Be cautious of IDs that are blurry, cropped, or barely legible.
  2. Require a Live, Face-to-Face, Video Chat with the Seller: Make sure the person in the video chat matches the ID, but beware that some sophisticated scammers may be able to use AI to make their face match an ID, even if the ID is real (but stolen). Other scammers may just use a fraudulent ID that has their face on it with the real owner’s information. A seller’s refusal to speak live on video is a major red flag.
  3. Visit the Property in Person and Confirm the Seller Knows Details: Visit the seller’s property in person, and then ask the seller about details of the property to see if they know them. For example, if you ask the seller what they would like to do about an old shed on the property, but there is no shed because you made up that fact to test them, then a seller who assumes the shed is there is very likely a scammer. If the seller is instead confused or corrects you that there is no shed, then you know they may not be a scammer. Feel free to ask about large rocks, streams, or other land features instead to test the seller’s knowledge.
  4. Cross-Check the Seller’s Identity Using Tools Like Forewarn: Forewarn can help identify whether the seller has any known association with the property, and whether the email address, phone number, and other contact information is consistent with the contact information of the legitimate owner.
  5. Independently Locate and Contact the Owner and Talk to Neighbors: Even if a Forewarn check comes back with no flags, and even if the seller has talked to you on a live video chat, use the information on the deed and tax records to contact the record owner, and be sure to contact neighbors. Do a Google and a social media search of the seller’s name, and see if the contact information you have been given matches the contact information from your independent searches. If the information does not match, you are likely speaking with a scammer and not the owner.
  6. Ask for Ownership Documents Only the True Owner Would Have: Ask for closing disclosures or settlement statements; a copy of a property tax bill (preferably one recently paid, showing ownership and billing address); title insurance policies; original property surveys; prior listing agreements; and other documents only the seller would have.
  7. Be Wary of “Quick Cash Sale” Requests and Below-Market Prices: Many fake sellers push for an all-cash deal, a reduced price, and a fast closing to avoid scrutiny.
  8. Research Recent Sales and Withdrawals of the Same Property: If the parcel was recently listed, withdrawn, or sold, speak to the prior listing broker to see if a fraud attempt was previously made.
  9. Educate and Protect All Parties: Communicate clearly with buyers, closing attorneys, and your BIC about any concerns. Where appropriate, alert authorities such as the North Carolina Attorney General or FBI Internet Crime Complaint Center if fraud is suspected. Keeping notes, copies of correspondence, and screenshots of ID verification or property records may protect you if a dispute later arises.
  10. Coordinate Early with the Closing Attorney: As soon as a contract is signed, notify the closing attorney of any red flags or concerns. Title professionals may uncover issues through identity verification protocols, trust or estate complications, and prior title history.
  11. Other Red Flags to Watch For:
  12. Seller claims they are traveling abroad or in a family emergency.
  13. Pressure to close quickly and accept a lower-than-market offer.
  14. Seller offers a bonus or incentive to ensure the transaction closes.
  15. Communication is limited to email or text, with evasiveness around calls or video.
  16. Seller wants a quick Due Diligence Fee or is unwilling to accept Earnest Money.
  17. Seller’s email address or phone number is from another country.

The fake seller scam is becoming more sophisticated and increasingly targets both residential and commercial transactions. Never rely solely on documents or information the “seller” or a lead service provides. If red flags persist and identity cannot be confirmed, do not proceed with the listing and escalate the issue to your Broker-In-Charge. Brokers are strongly encouraged to discuss these best practices at office meetings and include fraud prevention as part of onboarding and ongoing agent training programs.

Release Date: 07/31/2025

© Copyright 2025. North Carolina Association of REALTORS®, Inc.

This article is intended solely for the benefit of NC REALTORS® members, who may reproduce and distribute it to other NC REALTORS® members and their clients, provided it is reproduced in its entirety without any change to its format or content, including disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain. Any unauthorized reproduction, use or distribution is prohibited.