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How to check your CE record
Did you know that you can check your CE record at any time on the Commission’s website?
Your CE record is part of your license record. To access it:
- go to www.ncrec.gov;
- click on Licensing;
- click on Licensee Login;
- enter your License Number and your Password (your Password is the last four digits of your SSN if you have not changed it); and
- click on Login.
After you log in, you will see the Licensees menu. Click on CE License Information.
At the top of the CE page, you will see “Current Update Hours” followed by a 0 (zero) or a 4 (four). A 4 (four) means you have completed an Update course for the current period. A 0 (zero) means you have NOT yet completed a course, and you need to do so by June 10.
Next, you will see “Current Elective Hours” followed by a 0 (zero) or a 4 (four). A 4 (four) means you have completed an elective course for the current period. A 0 (zero) means you have NOT yet completed a course, and you need to do so by June 10.
Also provided in your CE record is a full listing of the courses you have completed and the dates on which you completed them.
DO YOU HAVE BIC ELIGIBLE STATUS? If so, you need to take the BICUP (rather than the GENUP) course if you wish to maintain BIC Eligible status. To determine whether you have BIC Eligible status, go back to the Licensees menu in your license record. If you see a link for “Print BIC Eligible Document,” then you have BIC Eligible status. If that option does not appear, you do not have BIC Eligible status and must take the GENUP course.
For more information about your license record, contact the Commission’s Education and Licensing Division at 919.875.3700 or ls@ncrec.gov.
Updated Investment Policy – Investment in MDIs
As part of its commitment to racial equity, the Commission has updated its internal Investment Policy to provide that a significant portion of its own funds are deposited in minority-owned depository institutions (MDIs).
MDIs are defined by the FDIC as institutions where (1) 51% or more of the voting stock is owned by minority individuals, or (2) a majority of the board of directors is minority and the community that the institution serves is predominantly minority. Ownership must be by U.S. citizens or permanent legal U.S. residents to be counted in determining minority ownership. The term “minority” is defined as any “Black American, Asian American, Hispanic American or Native American.”
Under the new policy, Commission funds are deposited in U.S. financial institutions where they are either FDIC insured, regulated by the Office of the Controller of Currency or the Federal Reserve, or collateralized in accordance with guidance issued by the NC Department of State Treasurer. This ensures that the funds are protected at all times. The policy sets out target goals for the Commission’s funds, including certain North Carolina institutions and MDIs. The target range for MDIs is 20 – 40 %. In other words, the Commission seeks to keep between 20 and 40% of its funds in minority-owned institutions at all times, with a preference for institutions in North Carolina or the Southeast region.
Appearances
Steve Fussell, Chief Consumer Protection Officer, spoke at Weaver Street Realty’s Sales Meeting on April 7.
Sheryl Graham, Consumer Protection Officer, spoke at Realty Executives of Hickory’s Agent Training on April 8.
Sheryl Graham, Consumer Protection Officer, spoke at Salisbury Rowan Association of REALTORS’s Are You Prepared Panel on April 22.
Disciplinary Actions
CHARLOTTE BAUGHER (Raleigh) – The Commission accepted the voluntary surrender of the broker license of Ms. Baugher effective March 17, 2021. The Commission dismissed without prejudice allegations that Ms. Baugher violated provisions of the Real Estate License Law and Commission rules. Ms. Baugher neither admitted nor denied misconduct.
YU PEI CHOOI (Cary) – The Commission accepted the voluntary surrender of the broker license of Ms. Chooi effective April 21, 2021. The Commission dismissed without prejudice allegations that Ms. Chooi violated provisions of the Real Estate License Law and Commission rules. Ms. Chooi neither admitted nor denied misconduct.
C MILLER PROPERTIES INC. (Hickory) – The Commission accepted the voluntary surrender of the firm license of C. Miller Properties effective March 17, 2021. The Commission dismissed without prejudice allegations that C. Miller Properties violated provisions of the Real Estate License Law and Commission rules. C. Miller Properties neither admitted nor denied misconduct.
GATEWAY REALTY SERVICES (Cary) – The Commission accepted the voluntary surrender of the firm license of Gateway Realty Services effective April 21, 2021. The Commission dismissed without prejudice allegations that Gateway Realty Services violated provisions of the Real Estate License Law and Commission rules. Gateway Realty Services neither admitted nor denied misconduct.
ROBERT C. MILLER (Hickory) – The Commission accepted the voluntary surrender of the broker license of Mr. Miller effective March 17, 2021. The Commission dismissed without prejudice allegations that Mr. Miller violated provisions of the Real Estate License Law and Commission rules. Mr. Miller neither admitted nor denied misconduct.
SANDRA C. MOORE (Hickory) – The Commission accepted the voluntary surrender of the broker license of Ms. Moore effective March 17, 2021. The Commission dismissed without prejudice allegations that Ms. Moore violated provisions of the Real Estate License Law and Commission rules. Ms. Moore neither admitted nor denied misconduct.
ANNA M. PAPP (Cary) – The Commission accepted the voluntary surrender of the broker license of Ms. Papp effective March 17, 2021. The Commission dismissed without prejudice allegations that Ms. Papp violated provisions of the Real Estate License Law and Commission rules. Ms. Papp neither admitted nor denied misconduct.
BEVERLY D. OSBORNE (Rock Hill, SC) – Following a hearing, the Commission permanently revoked the broker license of Ms. Osborne effective March 16, 2021. The Commission found that Ms. Osborne failed to self-report her South Carolina real estate license revocation and to communicate with Commission staff.
GROVER F SHUGART JR (Winston Salem) – The Commission accepted the voluntary surrender of the broker license of Mr. Shugart Jr. effective March 17, 2021. The Commission dismissed without prejudice allegations that Mr. Shugart violated provisions of the Real Estate License Law and Commission rules. Mr. Shugart neither admitted nor denied misconduct.
SHUGART MANAGEMENT (Winston Salem) – The Commission accepted the voluntary surrender of the firm license of Shugart Management effective March 17, 2021. The Commission dismissed without prejudice allegations that Shugart Management violated provisions of the Real Estate License Law and Commission rules. Shugart Management neither admitted nor denied misconduct.
OLUREMILAKUR WILLIAMS (Raleigh) – The Commission accepted the voluntary surrender of the broker license of Mr. Williams effective April 21, 2021. The Commission dismissed without prejudice allegations that Mr. Williams violated provisions of the Real Estate License Law and Commission rules. Mr. Williams neither admitted nor denied misconduct.
How Do I Love Thee . . . Send the Love Letters to A Sweetheart, Not A Seller
Today’s market is HOT! Really HOT. Like a cheap romance novel HOT. Sellers are receiving an enormous amount of attention, with multiple buyers wooing them for their homes by offering prices well over list, large due diligence fees, and yes, love letters.
Who is encouraging these love letters designed to pull at the heartstrings of the seller and lull them into accepting a particular buyer’s offer over others? Usually the buyer agent. Maybe the buyer has heard the letter is needed from family or friends trying to help out. The bottom line is such letters can create a problem and are best avoided by all.
The purpose of a “love letter” is simple enough – a buyer wants to be the chosen one, and it seems reasonable enough to attempt to win their dream home by pouring out their hearts to the sellers. However, these letters can pose serious fair housing risks as they usually contain personal information about the buyers which may result in conscious or unconscious bias in selection by the sellers.
What does that mean? Let’s say the buyers include a photograph or two of themselves. Now the seller is looking at the buyers and can see their race, whether or not they have children (familial status), or whether or not they are heterosexual. The buyers may refer to how they can’t wait to put up a Christmas tree by the fireplace – an indication of their religious beliefs. All of these things about the buyers may form the basis of selection by the sellers. These factors go beyond the price and terms of an offer. The sellers may make their choice – consciously or unconsciously – based on facts about the buyers’ race, familial status or religion, all of which are protected categories under fair housing laws.
If you are the listing agent, you should educate your sellers about the pitfalls of love letters – this type of letter opens them up to criticism and possibly to civil liability and they should not look at such letters even if they are sent directly to the sellers from the buyers. Sellers should only be considering offers based on objective criteria – price and terms. Your firm may have a policy against the use of such letters – if so, let your clients know that if you receive such a letter with an offer you will not be passing it on to them. NAR recommends that no such letters be accepted as part of an MLS listing. Document the reasons your client chose or rejected each offer.
If you are a buyer agent, your firm may also have a policy against the use of such letters. Never recommend that a buyer prepare a love letter for the seller or tell the buyer to send such a letter directly to the sellers. Let your buyers know the market is hot, and they should make their highest and best offer if they want to be successful. Prepare them for the fact that, in an extremely competitive market, they will likely lose a number of properties before they find the home that was meant to be theirs.
The key here is to protect your clients from possible harm by removing the temptation to go with a contract simply because photographs or letters tug at their hearts and instead have them choose the best offer on the table. Love may be blind, but unconscious bias is real and sees clearly. Keep your clients and yourself safe from any potential fair housing issues.
NEW Working With Real Estate Agents Disclosure Is Available
In January 2020, the Consumer Federation of America (“CFA”) published a report entitled, “Why Required Real Estate Agent Disclosures about Representation Fail and How They Can Be Improved.” The report contains a list of recommendations for improving agency disclosure forms.
The Commission’s Working With Real Estate Agents brochure has been used for approximately 25 years. Although it contains good information, changes in technology, communication methods, and the faster pace of real estate transactions have made its format less user friendly.
The Commission has created a new disclosure form (“Working With Real Estate Agents Disclosure”) which will make agency disclosure quicker and easier for brokers and more understandable for buyers and sellers. The form is just two pages in length, with one page dedicated to sellers and one page dedicated to buyers. A broker explaining agency to a seller need only review the seller side of the form; likewise, a broker disclosing agency relationships to a buyer need only review the buyer side.
The new form replaces the old Working With Real Estate Agents brochure as the form that brokers must review with prospective buyers and sellers at first substantial contact. The new disclosure form is now available on the Commission’s website (ncrec.gov) under the “PUBLICATIONS” tab.
The Commission encourages brokers to begin using the form immediately. Effective 7/1/21, brokers will be required to use this form in all commercial and residential sales transactions.
On 4/26/21, the Commission hosted a 60-minute webinar introducing this new form. A recording of the webinar is available for viewing on the Commission’s website.
This form will be translated into Spanish and will be discussed in the 2021-2022 GENUP and BICUP courses. Aside from the introduction of this new form, there has been no change to the rule which requires agency disclosure (A .0104(c)) and no change in the types of agency relationships that brokers may offer. The only change is in the form that brokers use to explain agency relationships.
Disciplinary Actions
KRISTINE YATES BOURGEOIS (RALEIGH) – By Consent, the Commission reprimanded Ms. Bourgeois effective March 10, 2021. The Commission found that Respondent acted as the buyer’s agent in the purchase of residential real property. After going under contract, the listing agent sent Ms. Bourgeois a text stating “new main water line will be installed due to slow leak somewhere in the main line.” Ms. Bourgeois failed to confirm that the water line was replaced prior to closing. The subject property closed without the water line being replaced.
JOHN CARL CARMENATE (BURLINGTON) – By Consent, the Commission reprimanded Mr. Carmenate effective March 10, 2021. The Commission found that Mr. Carmenate, acting as the qualifying broker and broker-in-charge of a firm, failed to renew the Firm’s license with the Commission and failed to keep its Certificate of Authority active with the Secretary of State. Following expiration of the Firm’s license, Mr. Carmenate continued to manage properties in North Carolina and failed to respond to Letters of Inquiry and other communications from Commission staff.
STEPHANNIE ANNETH CHESLEY (MOORESVILLE) – By Consent, the Commission reprimanded Ms. Chesley effective March 10, 2021. The Commission found that Ms. Chesley acted as a co-listing agent for residential real property. The first buyer (“Buyer 1”) terminated the contract after having a home inspection performed. This inspection report was given to Ms. Chesley and noted certain material issues throughout the home. She took the home off the market while the sellers had their insurance company fix the leak in the kitchen and make extensive repairs to that area of the home as well as the crawlspace then placed the property back on the market and it went under contract with another buyer (“Buyer 2”). Buyer 2’s home inspection revealed some of the same material issues noted in Buyer 1’s inspection report. Buyer 2 terminated the contract and gave a copy of their inspection report to Ms. Chesley. The sellers addressed some, but not all, of the material issues noted in Buyer 2’s inspection report. Ms. Chesley placed the property back on the market and a few days later, it was under contract with another buyer (“Buyer 3”). Buyer 3 terminated before the end of the due diligence period and did not provide a copy of their inspection report to Ms. Chesley. She then placed the property back on the market and a few weeks later, it was under contract with another buyer (“Buyer 4”) who ultimately purchased it. Ms. Chesley failed to disclose the material issues noted on previous home inspection reports or other inspections performed, not corrected by the sellers, to Buyer 2, Buyer 3, and Buyer 4 or their agents at the time the offers were made. Ms. Chesley failed to advise her seller-clients to update their original answers on the property disclosure form.
MENATALLA EFFAT (CHARLOTTE) – The Commission accepted the voluntary surrender of the broker license of Ms. Effat effective February 17, 2021. The Commission dismissed without prejudice allegations that Ms. Effat violated provisions of the Real Estate License Law and Commission rules. Ms. Effat neither admitted nor denied misconduct.
JENNIFER PEARL GALLAGHER (RALEIGH) – By Consent, the Commission suspended the broker license of Ms. Gallagher for a period of twelve (12) months effective January 31, 2021. The Commission required the first sixty (60) days to be active and stayed the remainder of the suspension effective April 1, 2021, and placed Ms. Gallagher on probation until January 30, 2022. The Commission found that Ms. Gallagher was showing a residential property to her buyer-client and entered the subject property prior to her buyer-client arriving. A camera inside the subject property captured Ms. Gallagher consuming alcohol from some of the property owner’s bottles. Ms. Gallagher later sent a letter of apology to the property owner and has replaced the bottles. The Commission notes that Ms. Gallagher is remorseful for her actions.
STANLEY B MARTIN (HIGH POINT) – By Consent, the Commission reprimanded Mr. Martin effective March 9, 2021. The Commission found that in May 2018, Mr. Martin acting as the qualifying broker and the broker-in-charge for a firm, misrepresented the square footage for a property he listed. Mr. Martin listed the property as having 2,150 square feet. In fact, the property was only 1,590 square feet, a difference of approximately 36%.
LANE FRANKLIN MCKINNEY (MOORESVILLE) – By Consent, the Commission reprimanded Mr. McKinney effective March 10, 2021. The Commission found that Mr. McKinney acted as a co-listing agent for residential real property. The first buyer (“Buyer 1”) terminated the contract after having a home inspection performed. This inspection report was given to the co-listing agent and noted certain material issues throughout the home. The home was taken off the market while the sellers had their insurance company fix the leak in the kitchen and make extensive repairs to that area of the home as well as the crawlspace then the property was placed back on the market and it went under contract with another buyer (“Buyer 2”). Buyer 2’s home inspection revealed some of the same material issues noted in Buyer 1’s inspection report. Buyer 2 terminated the contract and gave a copy of their inspection report to the co-listing agent. The sellers addressed some, but not all, of the material issues noted in Buyer 2’s inspection report. The property was placed back on the market and a few days later, it was under contract with another buyer (“Buyer 3”). Buyer 3 terminated before the end of the due diligence period and did not provide a copy of their inspection report to Mr. McKinney. The property was then placed back on the market and a few weeks later, it was under contract with another buyer (“Buyer 4”) who ultimately purchased it. Mr. McKinney failed to disclose the material issues noted on previous home inspection reports or other inspections performed, not corrected by the sellers, to Buyer 2, Buyer 3, and Buyer 4 or their agents at the time the offers were made. Mr. McKinney failed to advise his seller-clients to update their original answers on the property disclosure form.
TIFFANY ADAMS MYERS (FAYETTEVILLE) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Adams Myers effective February 17, 2021. The Commission dismissed without prejudice allegations that Ms. Adams Myers violated provisions of the Real Estate License Law and Commission rules. Ms. Adams Myers neither admitted nor denied misconduct.
NRT CAROLINAS LLC (CHARLOTTE) – By Consent, the Commission reprimanded NRT Carolinas LLC effective February 17, 2021. The Commission found that the acting broker-in-charge (“BIC”) failed to supervise two provisional brokers (“PB’s”) who acted as co-listing agents where they failed to ensure that their seller-clients had either repaired all material items identified on home inspection reports or updated their answers on the property disclosure form. The PB’s also failed to disclose any remaining material items to buyers at the time offers were made. The Commission notes that Respondent has updated their policy manual to include increased supervision and training of PB’s.
PIEDMONT REALTORS LLC (HIGH POINT) – By Consent, the Commission reprimanded Piedmont Realtors LLC effective March 9, 2021. The Commission found that in and May 2018, the firm misrepresented the square footage for a property it listed. Piedmont Realtors LLC listed the property as having 2,150 square feet. In fact, the property was only 1,590 square feet, a difference of approximately 36%.
RIVER WALK PROPERTIES (HAW RIVER) – The Commission accepted the permanent voluntary surrender of the broker license of River Walk Properties effective February 17, 2021. The Commission dismissed without prejudice allegations that River Walk Properties violated provisions of the Real Estate License Law and Commission rules. River Walk Properties neither admitted nor denied misconduct.
VICKI SMITH STOWE (WILMINGTON) – By Consent, the Commission reprimanded Ms. Stowe effective March 10, 2021. The Commission found that Ms. Stowe acted as the listing agent in a residential transaction where the seller had a home inspection performed prior to listing the property for sale, a copy of which was given to her. This inspection revealed material issues with the property. No repairs were made to the property and the RPOAD was completed by the seller with no issues noted. A few months later, Buyer #1 went under contract to purchase the subject property and had a home inspection performed. Ms. Stowe failed to disclose all material issues to Buyer #1. Similar material issues were noted on Buyer #1’s inspection report as were noted on the pre-listing inspection report and a copy of Buyer #1’s report was given to Ms. Stowe. Buyer #1 later terminated the contract. The seller addressed some, but not all, material issues noted in the previous inspection reports such as issues with the HVAC system and electrical. The next month, Buyer #2 went under contract to purchase the subject property and had a home inspection performed. Ms. Stowe failed to disclose all material issues to Buyer #2. Similar material issues were noted on Buyer #2’s inspection report as were noted on Buyer #1’s inspection report and the pre-listing inspection report. Buyer #2 terminated the contract and a copy of his inspection report was given to Ms. Stowe.
THE KEY GROUP ENTERPRISES INC. (FAYETTEVILLE) – The Commission accepted the permanent voluntary surrender of the broker license of The Key Group Enterprises Inc. effective February 17, 2021. The Commission dismissed without prejudice allegations that The Key Group Enterprises Inc. violated provisions of the Real Estate License Law and Commission rules. The Key Group Enterprises Inc. neither admitted nor denied misconduct.
Temporary Rules 58G .0104 and .0105 will expire on April 11
The Commission initiated temporary rules 58G .0104 and .0105 during 2020. The two rules provided various education-related waivers and extensions, in response to the COVID-19 pandemic. Both rules will expire on April 11, 2021.
As of April 12, 2021, education providers, Prelicensing students, and licensees will be subject to the standard education and licensing requirements set forth in the law and Commission rules, as follows:
Continuing Education (CE) Deadline: The deadline to complete CE courses for the 2020-21 license year* is June 10, 2021. See Commission rules 58A .1702 and 58H. 0404.
*Not sure which CE courses you need to take? Log into your license record on the Commission’s website to check your CE record.
Prelicensing and Postlicensing End-of-Course Examinations: Closed-book, proctored end-of-course examinations are required in all Prelicensing and Postlicensing courses. See Commission rule 58H .0207.
180-day Examination Eligibility Period: An applicant who is subject to the license examination requirement is granted a 180-day Examination Eligibility period, during which the applicant may schedule and take the license examination with Commission’s examination provider, PSI. An applicant who does not pass the examination during the allotted 180-day period must file another complete license application with the Commission and receive a new Notice of Exam Eligibility before being permitted to schedule another examination attempt with PSI. Note that applicants who are subject to the comprehensive examination are required to pass both sections of the exam during the same 180-day period to be eligible for licensure. See Commission rules 58A .0401 and .0403. Also, a detailed explanation of the examination process is provided on pages 13-25 of Real Estate Licensing in North Carolina.
Postlicensing Education deadline: In order to maintain eligibility for active license status, a provisional broker must complete the 90-hour Postlicensing education program within 18 months of the date of initial licensure. See Commission rule 58A .1902.
For more information regarding education and licensing requirements, contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700.
How to access the digital and print versions of the NC Real Estate Manual
Did you know that the NC Real Estate Manual is available in web-based and print versions?
The web-based version of the Manual was first introduced in 2019, featuring easy navigation and searching, as well as new visual elements such as comic strips and assessments. Since then, functionality has expanded to include highlighting and note-taking features. The web-based version is updated when there are changes in License Law and Commission rules, so it is always current.
Licensees who wish to access the digital version of the Manual must register for a subscription. A one-time $25.00 fee provides two full years of access.
To access the digital version of the Manual:
- go to www.ncrec.gov;
- click on Publications;
- click on NC Real Estate Manual; and
- click Register for Digital Subscription.
Revised in 2020, the print edition of the Manual now includes content that has been added into the digital version during recent years, including comic strips and assessments.
To order a print copy of the 2020 edition of the Manual:
- go to www.ncrec.gov;
- click on Publications;
- click on NC Real Estate Manual; and
- click Order Here; and
- click NC Real Estate Manual 2020 edition.
For more information about the NC Real Estate Manual, contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700.