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Postlicensing Education Deadline

This article from the April eBulletin is republished here to remind brokers of the new Postlicensing Education requirement effective July 1, 2020.

Beginning July 1, 2020, Rule 58A .1902 will require a Provisional Broker to complete all three 30-hour Postlicensing courses within 18 months of initial licensure in order to maintain active license status. 

If you were licensed anytime during 2018, you must complete all your Postlicensing courses by June 30, 2020. If you have been licensed in 2019, you will have at least 18 months from your date of licensure to complete the courses.

Example #1: Licensed on February 1, 2018

Example #2: Licensed on March 17, 2019

Additional information about this important change is provided in the General Update (GENUP) and Broker-in-Charge (BICUP) courses throughout the year. Also, if you are a provisional broker, be on the lookout for email communications from the Commission about the changing education deadlines.

If you have further questions regarding this rule change, please contact the Education and Licensing Division at 919.875.3700.

NOTE: Please visit the COVID-19 page on the Commission’s website for information about emergency rules in place during March 26-June 30, 2020.

Current Stats: Monthly Licensee Count as of April 1, 2020

How to Find Information about Rule Changes

“When did that rule change?”

Have you ever been surprised to discover that a Commission rule had changed? If so, it’s time to subscribe to the Commission’s mailing list to receive notices about rule-making.

By law, before an agency like the Real Estate Commission creates a rule, it must provide public notice and comment opportunities.  Since all licensees and the public have the right to know the conduct required by a rule, an agency’s rules must be available to the public and to people regulated by the rule. 

Each year, usually in the fall, the Commission considers whether rules related to brokerage practice need to be created, amended, or repealed. If the Commission wishes to make changes, the proposed rules are published and the public is given a chance to comment before rules are adopted. The rule-making process typically takes a minimum of 6-9 months. When the Commission adopts new rules, they are typically effective at the beginning of a license year (July 1).

In extreme situations, such as the current COVID-19 health crisis, the rule-making process may be shortened, to give an agency the ability to quickly adopt “emergency” rules to protect the health and safety of the public.

The Commission provides information to licensees and the public about proposed and adopted rules in a variety of ways, including notices on the Commission’s homepage and articles in the monthly eBulletin. Additionally, licensees and the public may subscribe the Commission’s rule-making mailing list, to receive email alerts of rule-making events.

To subscribe to the mailing list:

  1. go to www.ncrec.gov;
  2. scroll down to License Law & Rules Changes;
  3. click on Subscribe to the Commission’s mailing list to receive notice of rulemaking;
  4. type your name and email address; and
  5. click on Submit.

This mailing list is used solely for rule-making updates.

For more information, contact the Regulatory Affairs Division at RA@ncrec.gov or 919-719-9180.

How to Search for Online CE and Postlicensing Courses (April-June 2020)

On March 26, 2020, the Commission approved emergency rule, 21 NCAC 58G .0104, to allow CE courses to be offered through synchronous online learning until June 10, and Postlicensing courses to be offered through synchronous online learning until June 30.

Synchronous online learning means that the students and instructor are in separate places, but that everyone is participating in the course online at the same time.

To find CE courses being offered through synchronous online learning until June 10, 2020:

  1. Go to www.ncrec.gov;
  2. Click Education;
  3. Click Search CE Course Schedule; and
  4. Type ONLINE in the city field.
  5. Click on Submit.

To find Postlicensing courses being offered through synchronous online learning until June 30, 2020:

  1. Go to ncrec.gov;
  2. Click Education;
  3. Click Postlicensing Course Schedule; and
  4. Scroll to city name ONLINE.

Course schedules are updated daily upon notification by course providers. You may also contact providers directly to inquire about available courses.

For more information about the Commission’s response to the COVID-19 crisis, visit the COVID-19 page on the Commission’s website.

Commission Spotlight: Information Officers

Do you have questions about your responsibilities as a broker? Do you need clarification on one of the Commission’s rules? If so, you may contact the Commission’s Regulatory Affairs Division. When you contact that division, your call will be directed to an Information Officer.

Information Officers field questions about:

The Commission’s Information Officers are knowledgeable about many aspects of brokerage practice and are experts regarding the Commission’s rules. However, there are some types of questions that they cannot answer, such as questions about compensation disputes between brokers. Also, the Information Officers cannot provide legal advice. When Information Officers are asked questions that are outside of the Commission’s purview, they will provide suggestions as to how / where to find answers.

For more information or to ask a question, contact Regulatory Affairs at RA@ncrec.gov or 919-719-9180.

License Renewal Period is May 15-June 30

Be sure to renew your license, even if you haven’t completed CE. If you do not renew by June 30, your license will expire.

Following are the most frequently-asked questions regarding license renewal. Also, a video that answers these questions and provides step-by-step renewal instructions is posted in the Commission’s Video Library.

When do I renew?

The annual period for renewal of your real estate license begins at midnight on May 15 and continues until 11:59pm on June 30.

How do I renew?

  1. Go the Commission’s homepage, ncrec.gov.
  2. Click on Renew My Broker License.
  3. Enter your license number and PIN (password). Your PIN will be the last four digits of your Social Security number unless you have changed it.
  4. Verify your contact information, and update information if needed.
  5. Provide the “Employee Misclassification” disclosure and certification.
  6. If you are a Broker-in-Charge, you will be required to disclose information regarding your trust account(s) and any criminal convictions or disciplinary actions that have occurred within the previous year, if applicable.
  7. Pay the $45 renewal fee by Visa, MasterCard, Discover, American Express, or PayPal.

How much is the renewal fee?

The renewal fee is $45.00. You may pay by Visa, MasterCard, Discover, American Express, or PayPal.

Will I get a receipt?

Yes. A printable confirmation of renewal will appear on your screen when the process is complete.

Will the Commission mail me a new pocket card?

No. A link to download your new digital pocket card will appear on your screen when the process is complete. You may print a copy of the pocket card if you prefer to have a paper copy.

I haven’t completed CE, yet. Can I still renew?

Yes. Be sure to renew your license by June 30, even if you do not complete your continuing education by June 10. If you don’t renew, your license will expire.

Can I pay my renewal fee by check?

No. Per Commission Rule 58A .0503, you must renew online.

Can I call the Commission office and pay by phone?

No. Per Commission Rule 58A .0503, you must renew online.

Can I come into the Commission office and pay in person?

As of May 1, the Commission office is closed to the public due to the COVID-19 crisis. If the health emergency does not improve, we will remain closed to the public. If you have questions about the renewal process, please feel free to email us at ls@ncrec.gov or call us at 919.875.3700.

What will happen if I don’t renew by June 30?

If you do not renew your license online by 11:59pm on June 30, your license will expire. To reinstate an expired license, you must pay a $90 fee between July 1 and December 31. Failure to reinstate the former license by December 31 will result in your having to submit a new application, including application fee and criminal background report. You will also be required to take additional education and/or pass the state license examination. Refer to the “Reinstate your License” page on the Commission’s website (www.ncrec.gov) for detailed information regarding the reinstatement process.

NOTE: If you hold BIC Eligible status and your license expires or changes to inactive status on July 1, you will automatically lose BIC Eligible status and, in turn, BIC designation (if applicable). If that happens, and you wish to regain BIC Eligible status, you must (1) return the license to active status; (2) meet the experience requirements for BIC designation; (3) take the 12-hour Broker-in-Charge Course before re-designation; and (4) complete and submit the Request for BIC Eligible Status and/or Designation form (REC 2.25). Do NOT take the 12- hour BIC Course before your license is on active status! Refer to Rule 58A. 0110 for detailed instructions regarding regaining BIC Eligible status and BIC designation.

“Stop Upsetting My Bid!”

A Regulatory Affairs Case Study

By Shanna Hardy, Consumer Protection Officer

The Complaining Witness in this case was a buyer who was bidding on a judicial sale property (i.e. auction sale).  The Respondent was a broker-in-charge who was bidding on the same property.  The Complaining Witness was represented by a buyer agent.

Before an online auction bid is declared successful or is confirmed, the court places the property in a 10-day “upset bid period,” during which the court waits to see if a higher or better bid is submitted, resulting in an “upset” to the original bid.  In these types of transactions, the bidding continues until all but one party discontinues the submission of bids. A bidder is not permitted to interfere with or intimidate another bidder or to offer to pay another bidder not to bid as this would be considered to be illegal “bid-rigging.” 

In early 2019, the Complaining Witness and the Respondent began bidding on the same property. The bidding went back and forth for weeks.  The Respondent then called the Complaining Witness’ buyer agent and stated, “Tell your client if he is willing to pay me $2000, I’ll make my offer go away.”  The buyer agent informed the Complaining Witness about the Respondent’s offer and recommended against paying the $2000 to the Respondent.

The Complaining Witness called the Respondent directly and recorded the conversation between the two.  The Respondent first claimed that it was his unidentified client who directed him to request the payment but, when the Complaining Witness pressed further, stated that the $2000 was for himself and his business partner.  The Complaining Witness then filed a complaint against the Respondent.

The evidence in this case showed that the Respondent was, in fact, bidding on the property for himself and the business partner was his wife. The Commission found probable cause to have a hearing. but, Prior to the hearing, the Respondent voluntarily surrendered his license.  Had the case proceeded to a hearing, the Commission could have found that the Respondent’s statements to the Complaining Witness constituted a willful misrepresentation of material facts, that his actions were evidence that he was unworthy or incompetent to act as a real estate broker in a manner as to endanger the interest of the public, and/or that he had engaged in conduct that constituted improper, fraudulent, or dishonest dealings in violation of N.C.G.S § 93A-6(a)(1), (8) and/or (10).  While the Respondent was not acting as a broker in this matter, he was still subject to discipline for violating License Law while selling, leasing, or buying his own property under N.C.G.S § 93A-6(b)(3).

Emergency Rulemaking

By Melissa Vuotto, Paralegal Supervisor

On April 15, 2020, the Commission voted to approve another emergency rule, 21 NCAC 58G .0106, to further address the ongoing public health emergency. On March 26, 2020, two prior emergency rules went into effect: NCAC 58G .0104 and .0105. These two rules required schools and course sponsors to cancel or suspend all in-person courses and provided options for online delivery of courses. The new emergency rule, G .0106, extends restrictions on in-person courses until June 30, 2020, and allows schools, course sponsors, and education providers to offer the Update Course as a synchronous distance-learning course.

Disciplinary Actions

MOLLY REBEKAH WIGHT (Fayetteville) – By consent, the Commission suspended the broker license of Ms. Wight for a period of 4 months, effective April 1, 2020. The Commission then stayed the suspension period, effective April 1, 2020. The Commission found that in April 2019, Ms. Wight’s buyer-clients informed her that they needed a property that allowed chickens and had no limit on the number of dogs as they had three. The buyers also told Ms. Wight that they wanted to review any HOA restrictions before making an offer. Ms. Wight showed the buyers a property and informed them there were no restrictive covenants and no HOA for the subject property. Ms. Wight never asked the listing agent whether there were any restrictions. In May 2019, the buyers closed on the subject property and signed a document at the closing attorney’s law firm indicating that there was no HOA. As they were moving in, the buyers were informed by a neighbor that chickens were not allowed. The buyers contacted Ms. Wight who said she could not find any restrictions for the property at that time. Later that evening, Ms. Wight called the buyers and found the covenants which prohibited poultry and limited dogs to two.

RHONDA TIBBETTS COPP (Charlotte) – By Consent, the Commission reprimanded Ms. Copp effective May 1, 2020. The Commission found that in June 2017, Ms. Copp listed a commercial property and asked the seller if the property was on a septic or sewer. The seller responded “I never had anything pumped”. Ms. Copp assumed that meant that the property was attached to a city sewer and did not ask the seller any further questions or verify if the property was connected to city sewer. Ms. Copp advertised the subject property on the MLS as being connected to sewer. In April 2018, a buyer entered a contract to buy the subject property for use as a trade school. In July 2019, the buyer began experiencing plumbing issues and was told to check with the city regarding the city sewer system. The buyer called the city and learned the property was not connected to city sewer, but was on a septic system. Ms. Copp has settled with the buyer to the buyer’s satisfaction.

RPMS REALTY GROUP (Charlotte) – By Consent, the Commission reprimanded RPMS Realty Group effective May 1, 2020. The Commission found that in June 2017, RPMS Realty Group listed a commercial property and asked the seller if the property was on a septic or sewer. The seller responded “I never had anything pumped”. RPMS Realty Group assumed that meant that the property was attached to a city sewer and did not ask the seller any further questions or verify if the property was connected to city sewer. RPMS Realty Group advertised the subject property on the MLS as being connected to sewer. In April 2018, a buyer entered a contract to buy the subject property for use as a trade school. In July 2019, the buyer began experiencing plumbing issues and was told to check with the city regarding the city sewer system. The buyer called the city and learned the property was not connected to city sewer, but was on a septic system. RPMS Realty Group has settled with the buyer to the buyer’s satisfaction.

Update on Education Requirements – Public Health Emergency

On March 18, 2020, the Commission voted to approve two emergency rules addressing education issues during the public health emergency.  The rules are posted on the Commission’s website https://www.ncrec.gov/Pdfs/Rules/EmergencyRulemaking.pdf

Rule G .0104 provides relief to licensees with respect to the Commission’s education requirements. It requires schools and sponsors to cancel or suspend live, in-person classes beginning March 26 (the effective date of the rule) and allows for certain online alternatives as well as extensions of time.

Q: May schools and sponsors offer in-person courses in April?
A: No. All in-person classes must be cancelled or suspended through April 30, 2020. 

Q: Can I take the Update (General Update or BICUP) course online? What about my Postlicensing course(s)?
A: YES! Under the emergency rule, Update and Postlicensing courses can be offered via synchronous distance learning from March 26-April 30. Synchronous learning means that the students and instructor are in separate places, but that everyone is participating in the course online at the same time.

Q: How can I find an Update or Postlicensing course being offered via synchronous distance learning?
A: Update courses: Go to the Commission’s website (ncrec.gov), click on Education, and click on Search CE Course Schedule. In the search screen, type ONLINE in the city name field, then click on Search.

Postlicensing courses: Go to the Commission’s website (ncrec.gov), click on Education, and click on Postlicensing Course Schedule. Courses are grouped by city name. Scroll down to city name “ONLINE.”

Q: What if I start a Postlicensing course after the rule goes into effect, but for whatever reason, I cannot finish?
A: While the rule is in effect, the school must allow you to make up missed course hours by attending another offering of that course, and the content has to be the same as the part you missed.

Q: I am a broker and need more time to take the 12-hour BIC Course. What should I do?
A: Email a request for an extension of time to bicext@ncrec.gov .  You will not have to submit supporting documentation while the rule is in effect.  You will be granted an automatic 90-day extension. 

Q: What if I can’t find an Update or Postlicensing course by my deadline. What should I do?
A: CE Update and Elective courses:  The Commission will grant an automatic 90-day extension to brokers who have not completed CE by June 10.  No request form is needed. 
Postlicensing courses: The Commission will grant an automatic extension through September 30, 2020, to brokers who have not completed Postlicensing.  No request form is needed.

Please send an email to our office for further information (ls@ncrec.gov). Because of the current health crisis, we have more questions and fewer staff than usual. We appreciate your patience as we work to address your questions and concerns.