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In Memoriam

Anthony “Tony” Rand, of Fayetteville, State Senator from 1981-1988 and 1995-2009. On February 22, 2005, the Real Estate Commission’s Raleigh office building was dedicated in his honor. https://www.legacy.com/obituaries/charlotte/obituary.aspx?n=anthony-rand&pid=196133096&fhid=10103

Fred Adams Sr., of Willow Spring, a member of the Commission from 1981 to 1983. https://www.everhere.com/us/obituaries/nc/willow-spring/fred-adams-sr-10734437

Disciplinary Actions

KIMBERLY RENE CLARK (Charlotte) – By Consent, the Commission reprimanded Ms. Clark effective May 1, 2020. The Commission found that in July 2018, Ms. Clark acting as the broker-in-charge of a firm, failed to discover a broker of her firm inaccurately advertised a property as having a total of 2,619 square feet when the property actually had 1,980 square feet. The broker affiliated with Ms. Clark’s firm also failed to disclose underground storage tanks in August of 2018.

MOUNTAIN ISLAND LAKE REALTY, LLC (Charlotte) – By Consent, the Commission reprimanded Mountain Island Lake Realty, LLC effective May 1, 2020. The Commission found that in July 2018, a broker affiliated with the firm inaccurately advertised a property as having a total of 2,619 square feet when the property actually had 1,980 square feet. The broker affiliated with the firm also failed to disclose underground storage tanks in August of 2018.

Call for Nominations: Educational Excellence Awards

The Commission annually gives three awards to licensees for educational endeavors: the Joe Schweidler Memorial Scholarship Award, the Blanton Little Memorial Scholarship Award, and the Phillip T. Fisher Scholarship Award.  Schweidler and Little were former Secretary/Treasurers of the NC Real Estate Licensing Board; Fisher is a former Executive Director of the Commission.  In the past, these scholarships have been given in the spring, based on performance in specific educational programs during the previous license year. 

Beginning this year, the Commission will accept nominations for these awards.  Criteria for each of the three awards are provided at the end of this article. 

To be considered for one of the awards, an individual must hold a current NC broker license on Active status and submit an application provided on the Commission’s website, including:

  1. a written explanation of the individual’s qualifications for the award (500 words or less);
  2. documentation to demonstrate the individual’s completion of activities and/or education that are required by award criteria; and
  3. two letters of reference/recommendation.

Nominations for all awards will be accepted from May 1–June 30, 2020.  Self-nominations are welcome.  Go to the Commission’s homepage (www.ncrec.gov) to download the Educational Scholarship Nomination Form. 

Commission Staff will evaluate submissions against the written criteria and make recommendations for award recipients to Commission members.  Commission members will make final selections during their meeting on July 15, 2020, and award recipients will be announced at that time.   Each award recipient will receive a check for $1000 and a commemorative plaque. 

If you have questions about the awards, send an email to scholarship@ncrec.gov.

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SCHOLARSHIP AWARD CRITERIA

Scholarship #1 – Joe Schweidler Memorial Scholarship Award:  Community-focused Educational Programs

The recipient of this award has invested in the community (in North Carolina) by developing, organizing, and presenting educational opportunities to those people in the community who are not real estate brokers, but who are or may become real estate consumers.  This must be an ongoing commitment as evidenced by regularly scheduled educational events (quarterly, for example, over the past 2-3 years) focusing on topics such as:

Scholarship #2 – Blanton Little Memorial Scholarship Award: Peer-focused Educational Programs

The recipient of this award has invested time and energy in elevating the knowledge and skills of other North Carolina brokers.  This must be an on-going commitment in which this individual conducts regular training sessions for other brokers in North Carolina through any number of available sites or organizations.  Examples include:

Scholarship #3 – Phillip T. Fisher Scholarship Award: Personal Growth-focused Educational Programs

The recipient of this award has invested time and energy in personal growth through advanced real estate education as evidenced by degree(s) or certifications/designations in various areas of real estate.  Over the previous 2 to 3 years, this individual will have attained various different certifications/designations, or an advanced degree in real estate brokerage or a closely related field.  Certifications, designations, and/or degree(s) must have been obtained while licensed in North Carolina.   Examples include:

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.

“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.