MENU North Carolina
Real Estate Commission

Bulletin Search

North Carolina Real Estate Commission Works to Implement New Law Modernizing State’s Timeshare Laws

Passing with Unanimous & Bipartisan Support, Commission Hails New Law as Important for State’s Consumers, Businesses & Industry

With the signing of House Bill 531 into law on October 6, 2021, which updates North Carolina’s laws on timeshare regulation, the North Carolina Real Estate Commission is now working on its implementation. The Commission also hailed the new law, which passed the North Carolina General Assembly with unanimous and bipartisan support before being signed into law, as a needed and an important modernization to the state’s timeshare laws that will have positive impacts for consumers, businesses and the industry.

The new lawsubstantially revises the North Carolina Time Share Act by:

“North Carolina’s timeshare laws haven’t been updated for nearly 40 years, and because of that, they were no longer reflective of the industry and how it’s changed,” said Janet Thoren, Legal Counsel for the Commission. “By updating North Carolina’s timeshare laws, we’ve now brought them into the 21st century and they’re in line with the direction in which the industry is headed. It puts consumer protections in place, like regulating timeshare resale and exit company activity and codifying conduct that violates the law – all things that were needed and welcomed for a stronger, more robust consumer protection program.”

“As the body that regulates timeshare in the state, we’re proud to have gained the support of the North Carolina General Assembly to ultimately pass a law that sets our state ahead with the most up-to-date and current regulations in the nation,” said Thoren.

The Commission also thanked all those that came to the table to lend their outside knowledge and expertise on issues that they’re seeing and needed to be addressed to protect consumers.

“We’re also grateful to have had the help of the American Resort Development Association, the trade association for the timeshare industry, who graciously lent us their knowledge and expertise as we crafted and worked on this legislation,” said Thoren.

Here’s what third parties are saying about the update to the state’s timeshare laws:

“This new law includes language that addresses how the timeshare industry has evolved over the years,” said Robert Clements, Vice President of Regulatory Affairs and General Counsel for the American Resort Development Association (ARDA). “We commend the Commission for putting together a law that can serve as a model for other states looking to update what they have in statute, and we thank the General Assembly and the Governor for their support. We take pride in having been able to help the Commission, and we’re happy to continue to be a resource to them as they implement the law, as well as for any other states looking to modernize their timeshare laws.”

“This is a win for consumers, as this law regulates timeshare exit issues that harm timeshare owners and the industry as a whole,” said Elizabeth Baker, Vice President, State Legislative/Regulatory Official Outreach for the American Resort Development Association-Resort Owners’ Coalition (ARDA-ROC), an organization that represents over 1.6 million timeshare owners. “As we’ve seen time and again, unscrupulous exit companies take advantage of owners looking for exit options, and this is a first-of-its-kind legislation that works to combat that.”

Staff Appearances

Sheryl Graham, Consumer Protection Officer, spoke at the Albemarle Area Association of REALTORS meeting on October 12.

Steve Fussell, Chief Consumer Protection Officer, spoke the ReMax Master Key meeting on October 27.

Disciplinary Actions

FRANK FRANCIN (HIGH POINT) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Francin, effective October 13, 2021. The Commission dismissed without prejudice allegations that Mr. Francin violated provisions of the Real Estate License Law and Commission rules. Mr. Francin neither admitted nor denied misconduct.

FRANKLIN HOME STORE INC (FRANKLIN) – By Consent, the Commission reprimanded Franklin Home Store Inc., effective October 15, 2021. The Commission found that Franklin Home Store Inc. was required under the management agreement to maintain a $250 expense fund on behalf of the property owner and failed to do so. When one tenant vacated a property without leaving a forwarding address, Franklin Home Store Inc. sent the security deposit to that tenant’s relative, instead of holding it for six months as required by N.C. Gen. Stat. 42-52. After a property owner gave notice of termination, Franklin Home Store Inc. failed to timely transfer the tenant’s security deposit to the owner or his new management company. Franklin Home Store Inc. failed to disburse earned management fees from the rental trust account each month, which caused commingling.

MARK HENDEL (WAXHAW) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Hendel, effective October 13, 2021. The Commission dismissed without prejudice allegations that Mr. Hendel violated provisions of the Real Estate License Law and Commission rules. Mr. Hendel neither admitted nor denied misconduct.

APRIL J MOORE (FRANKLIN) – By Consent, the Commission reprimanded Ms. Moore, effective October 15, 2021. The Commission found that Ms. Moore as the qualifying broker and broker-in-charge was required under the management agreement to maintain a $250 expense fund on behalf of the property owner and failed to do so. When one tenant vacated a property without leaving a forwarding address, Ms. Moore sent the security deposit to that tenant’s relative, instead of holding it for six months as required by N.C. Gen. Stat. 42-52. After a property owner gave notice of termination, Ms. Moore failed to timely transfer the tenant’s security deposit to the owner or his new management company. Ms. Moore failed to disburse earned management fees from the rental trust account each month, which caused commingling.

BRADLEY JAMES O’CONNOR (CORNELIUS) – By Consent, the Commission suspended the broker license of Mr. O’Connor for a period of 12 months, effective October 1, 2021. The Commission then stayed the suspension in its entirety. The Commission found that Mr. O’Connor, was qualifying broker/broker-in-charge of a licensed firm which conducted one day lot liquidation sales in or about June, 2020 and October, 2020. The firm’s advertisements failed to disclose that certain lot types were extremely limited. The firm employed approximately 60 unlicensed sales representatives to conduct the lot sales including showing buyers lots, answering questions, writing offers, and receiving sales commissions. The sales reps did not review the “Working with Real Estate Agents” disclosure with any of the buyers who attended the sale. The firm has taken steps to remedy these issues including limiting unlicensed employee duties.

LAMODREZ POWE (SOUTHERN PINES) – The Commission accepted the voluntary surrender of the broker license of Mr. Powe, for a period of 1 year, effective October 13, 2021. The Commission dismissed without prejudice allegations that Mr. Powe violated provisions of the Real Estate License Law and Commission rules. Mr. Powe neither admitted nor denied misconduct.

ALLISON ELIZABETH SCHOEN (BANNER ELK) – By Consent, the Commission suspended the broker license of Ms. Schoen for a period of 12 months, effective October 1, 2021. The Commission then stayed the suspension in its entirety. The Commission found that Ms. Schoen on behalf of her Firm conducted conducted one day lot liquidation sales in or about June, 2020 and October, 2020. The firm’s advertisements failed to disclose that certain lot types were extremely limited. On or about October 4, 2020, Ms. Schoen scheduled an appointment with a prospective buyer to show lots but failed to review the “Working with Real Estate Agents” disclosure at any time. Ms. Schoen provided brokerage services on behalf of her Firm but failed to affiliate with the Firm until reminded twice by Commission staff.

SKYECROFT REALTY GROUP (WAXHAW) – The Commission accepted the permanent voluntary surrender of the broker license of Skyecroft Realty Group, effective October 13, 2021. The Commission dismissed without prejudice allegations that Skyecroft Realty Group violated provisions of the Real Estate License Law and Commission rules. Skyecroft Realty Group neither admitted nor denied misconduct.

WATERFRONT GROUP PLC LLC (CORNELIUS) – By Consent, the Commission suspended the broker license of Waterfront Group PLC LLC for a period of 12 months, effective October 1, 2021. The Commission then stayed the suspension in its entirety and placed Waterfront Group PLC LLC on probation until October 1, 2022. The Commission found that Waterfront Group PLC LLC conducted one day lot liquidation sales in or about June, 2020 and October, 2020. The firm’s advertisements failed to disclose that certain lot types were extremely limited. Waterfront Group PLC LLC employed approximately 60 unlicensed sales representatives to conduct the lot sales including showing buyers lots, answering questions, writing offers, and receiving sales commissions. The sales reps did not review the “Working with Real Estate Agents” disclosure with any of the buyers who attended the sale. Waterfront Group PLC LLC has taken steps to remedy these issues including limiting unlicensed employee duties.

Current Stats: Monthly Licensee Count as of September 1, 2021

Do you have ideas for Update course topics?

The Commission welcomes your ideas and suggestions.

The Commission will discuss topics to be included in the 2022-2023 General Update and BICUP courses during their October and November 2021 business meetings. If you have a suggestion, please send it via email to educ@ncrec.gov.

For more information about the Update Course, contact the Education and Licensing Division at educ@ncrec.gov or 919.875.3700.

Update Courses for Specialty Practice

Do you specialize in commercial brokerage or residential property management?  Did you know that there specialty versions of the Update course that focus on these practice areas?  

Each year, the Commission determines what topics will be addressed in the next license year’s General Update (GENUP) and Broker-in-Charge Update (BICUP) courses, and Commission staff develops course materials based on the Commission’s directives.  Once the course materials are finalized, Commission Rule 58H .0403(f) permits education providers (EPs) and approved instructors to create specialty versions of the content. 

Per the rule, the development of a specialty Update course is a joint effort between the EP/instructor and the Commission, and all content is jointly owned.  The EP or instructor must receive the prior written consent of the Commission to make modifications to the content, and all modifications must relate to the same subject matter and educational objectives as the prescribed Update course content.

When developing a specialty version of the Update course, an EP or instructor must evaluate the subject matter to determine if the prescribed Update course content meets the needs of their targeted group of brokers.  For example, if the prescribed course includes a topic like cybersecurity, the topic would be applicable to brokers in all specialty areas, so it would remain in the specialty versions.  However, the examples and/or discussion questions might be altered to make the topic discussion more relatable to a targeted group of brokers.  

In contrast, if one of the topics in the prescribed Update course is not directly applicable to the targeted group of brokers, an entirely different topic may be substituted.  For instance, if a prescribed Update course focuses on home inspections, the subject matter may not be applicable to commercial brokers. Therefore, another “commercial-specific” topic would be substituted in the commercial specialty version.  

Commission Rule 58H .1702(a) requires brokers to complete eight credit hours of real estate continuing education (CE) courses each year, comprised of a 4-hour Update course, either GENUP or BICUP, and a 4-hour elective course.  

Whether a broker takes the standard version or a specialty version of the Update course, the broker must ensure they are taking the appropriate version based on their license status.  Provisional brokers and “full” brokers who do not have BIC Eligible Status must take a GENUP course.  A broker with BIC Eligible Status must take a BICUP course to retain BIC Eligible Status.

Currently, there are two specialty versions of the Update course, Commercial and Property Management, and there are GENUP and BICUP versions of both.  

Brokers may choose to complete multiple versions of the Update course in a license year, but they will receive credit for only one Update course. The completion of additional Update courses will not satisfy the elective course requirement or provide “rollover” credit.

Are you interested in registering for a specialty version of the Update Course?   Go to the CE Course Schedules page on the Commission’s website to search for upcoming courses.  Update courses are delivered in-person and via synchronous distance delivery (aka, “live-online”).

The current GENUP courses are titled:

The current BICUP courses are titled:

Commission rules do not limit the number of specialty versions that can be created. EPs and approved instructors who are interested in developing a specialty version of the Update course should contact the Education & Licensing Division at educ@ncrec.gov or 919.875.3700.

Why Test Your Well Water? – New Brochure

The Commission is pleased to make available the new “Why Test Your Well Water?” brochure.  The brochure was created by the UNC School of Law, Law Student Well Water Pro Bono Project in conversation with the UNC Superfund Research Program, the NC Department of Health & Human Services (NC DHHS) Division of Public Health – Private Well & Health Program, and the NC Real Estate Commission.  It describes relevant laws, possible well water contaminants, testing resources, and recommended testing schedules, and provides links to online resources where homeowners and home buyers can get detailed answers to their questions about private well water issues. The brochure is available on the Commission’s Publications page: here. Look for the Spanish language version coming soon!

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 opportunities available for the following positions:

Click here for more information.

Staff Appearances

Sheryl Graham, Consumer Protection Officer, spoke at The Real Estate Group’s meeting on September 8.

Jean Hobbs, Auditor/Investigator, spoke the Charlotte NARPM’s Chapter Meeting on September 15.

Disciplinary Actions

PATRICIA FRITZINGER (GOLDSBORO) – By Consent, the Commission reprimanded Ms. Fritzinger effective September 14, 2021. The Commission found that Ms. Fritzinger acted as the listing agent for residential property. After a buyer terminated their contract to purchase, they shared their home inspection report with Ms. Fritzinger. The owner of the property addressed some, but not all, of the material issues noted on the inspection report. Ms. Fritzinger failed to advise the owner to update the property disclosure form to include items that were not repaired and failed to otherwise disclose the non-repaired items to subsequent buyers prior to offers being made. Ms. Fritzinger did provide the home inspection reports to the subsequent buyers during their due diligence period.

JAMES GARLAND HARRIS III (ROXBORO) – By Consent, the Commission suspended the broker license of Mr. Harris III for a period of 30 Days effective September 10, 2021. The Commission found that Mr. Harris III used an Instagram account that was tied to his real estate business, to comment on an Instagram post unrelated to real estate. Mr. Harris III’s comment was inappropriate and not professional in nature. He has since deleted his comment to the post.

PHILLIP M PRICE (GREENSBORO) – The Commission accepted the voluntary surrender of the broker license of Mr. Price effective September 8, 2021. The Commission dismissed without prejudice allegations that Mr. Price violated provisions of the Real Estate License Law and Commission rules. Mr. Price neither admitted nor denied misconduct.

ODELL WILLIAMSON JR (DURHAM) – By Consent, the Commission suspended the broker license of Mr. Williamson Jr for a period of 36 months effective January 31, 2020. The Commission found that Mr. Williamson Jr acted as the listing agent in a residential purchase transaction. Mr. Williamson Jr failed to provide and review a Working with Real Estate Agents brochure with an unrepresented buyer at first substantial contact. Mr. Williamson Jr acknowledged on the purchase contract that he received the $6,000 due diligence fee from the buyer, however he failed to deliver this check to his seller client. Instead, the check was made out to an unlicensed person who cashed the check, keeping 1/3 of the fee for himself, remitting 1/3 to the seller, and disbursing the remainder to Mr. Williamson Jr. The buyer also entered into a lease, which listed Mr. Williamson Jr’s company as the agent, although rent payments were made to an unlicensed person who never remitted rent proceeds to the seller.