Licensees as of May 1, 2019

The New Interactive NC Real Estate Manual

The new web-based version of the North Carolina Real Estate Manual is now available!

The Commission publishes the Real Estate Manual for brokers and the public to use as a practical guide for real estate concepts and brokerage practice. Also, it is the required textbook for Postlicensing courses. Individuals who take Postlicensing courses are required to have a current edition of the Real Estate Manual with them during all class sessions, either in print or electronic form.

The new version of the Real Estate Manual is web-based, making it more accessible and user-friendly. Features of the new version include: comic strips that display brokerage activities and examples of agency relationships between brokers and clients, self-check assessments, informative graphics, keyword searches, quick access to Postlicensing course content, and a database of sample contract forms.

The new web-based Real Estate Manual will be updated on a real-time basis. When laws, rules, and/or forms change, the Real Estate Manual will be updated immediately to reflect the changes. As a result, users will always have an up-to-date resource.

During the month of June, the web-based Real Estate Manual may be accessed for free using this link: https://remtest.ncrec.gov.  When prompted, enter the following login credentials:

• Username: Noreply@ncrec.gov
• Password: Test@1234

Beginning July 1, 2019, subscription fees will apply. Access to the web-based version of the Real Estate Manual will be $25.00 per license year. All subscriptions will expire each year on June 30.

Brokers will still be able to order and use the printed version of the Real Estate Manual if they prefer to do so. Please note that the print version of the Real Estate Manual is only updated every two to three years. The current edition of the print version is dated 2017.

If you have questions about the North Carolina Real Estate Manual, contact the Commission’s Education and Licensing Division at (919) 875-3700.

How to Request Continuing Education Credit

Would you like to request Continuing Education Credit from the Commission for a course that is not approved by the Commission or for a real estate education activity that is equivalent to a Commission-approved continuing education course? Click here for information and application OR call the Commission at 919.875.3700.

Cases Opened by Month

Intentional Ignorance

Stephen L. Fussell, Chief Consumer Protection Officer

           Ignorance is a lack of knowledge.  Intentional ignorance is when you choose to avoid learning information or skills. Why would a broker choose to avoid learning information or skills? One reason is that some brokers mistakenly believe that if they don’t know a material fact then they can’t be required to disclose it.

            Here are almost a dozen examples of intentional ignorance which could lead to damage to a client and disciplinary action being taken against a broker: i

1. A commercial listing broker lists a large tract of land and subsequently hears a rumor regarding a former unregulated dump site on the property, but fails to make any inquiry into the possible former dump site.
2. A residential property manager has been leasing a property to the same tenant for five years, but has not inspected the property since the tenant moved in and therefore doesn’t know about the condition of the property or whether the tenant is complying with the terms of the lease, such as unauthorized occupants or pets.
3. A vacation rental manager learns of a beach renourishment project but doesn’t inquire about planned dates or potential impact on guests.
4. A residential buyer agent shows a house to a buyer-client and silently doubts the accuracy of the square footage advertised in the MLS, but says nothing to anyone, because the buyer instantly fell in love with the property.
5. A commercial broker representing a tenant, who wants to lease a space for a daycare center, fails to ascertain whether the space meets the requirements for operating a daycare center or to advise their client to do so.
6. A property manager notices rust-colored stains in sinks, toilets and tubs, but fails to inquire about water quality or water filtration systems or suggest that the owner test the water quality.
7. A residential listing agent, whose market area includes a town bordering a river that floods during periods of heavy rain, does not inquire about flooding on the listed property or in the surrounding neighborhood.
8. A group of brokers buy an investment property to renovate and resell, but do not order any inspections or discuss conditions with contractors thinking that, if they do not discover material facts about the property, then they will not have to disclose them on resale.
9. A residential listing agent lists a house with a septic system, but does not pull and review the septic permit or inquire about the pool of foul-smelling water standing in the yard.
10. A residential buyer agent knows their buyer-client wants to construct a barn and raise chickens, goats and other farm animals, but fails to obtain and review the restrictive covenants, zoning restrictions and other regulations that may affect the buyer’s intended use or to advise their client to do so.
11. A buyer agent has a client they know to have respiratory issues and notices standing water in the crawl space of a property, but does not inquire about mold or suggest that the buyer hire a mold inspector.

The aforementioned examples illustrate brokers who chose to avoid acquiring information to improve their knowledge and/or skills and thereby failed to position themselves to better represent their clients and protect consumers.

The flaw in using intentional ignorance as a strategy is that a broker is required to discover and disclose material facts. This duty to discover eliminates a broker’s option to avoid learning about a material fact. Moreover, a broker is held responsible for what he/she knows or reasonably should know. This responsibility also applies when a broker is selling or leasing his/her own property (see N.C.G.S. § 93A-6(b)(3)). So, even if a broker doesn’t know a material fact, if the Commission determines that a prudent agent would know it, then the ignorant agent can be disciplined for failing to disclose the fact.

N.C.G.S. § 93A-6(a)(1), (8) and (10) authorize the Commission to pursue disciplinary action against a broker who omits a material fact, is incompetent or unworthy to act in a manner which protects the public or who engages in improper or dishonest dealing, respectively.  Therefore, intentional ignorance is not an option for a broker. Every broker must exercise reasonable care and diligence in discovering and disclosing all material facts to all interested persons in a timely manner.

Staff Update

75 Years of Service

Seven Commission staff members received awards for a combined total of 75 years of service: (from left to right) Frederick A. Moreno, Chief Deputy Legal Counsel; Corean E. Hamlin, Director, Education and Licensing Division; and Melissa A. Vuotto, Rulemaking Coordinator, all five years; Tiffany D. Bryant, Executive Assistant/Paralegal, 10 years; Brenda K. Hollings, License Services Officer, 30 years; Bradford A. Cox, Licensing Team Lead, 10 years; and Peter B. Myers (not present), Information Officer, 10 years.

Appearances

Stephen L. Fussell, Senior Protection Officer, spoke to Redfin Corporation in Durham.

Nicholas T. Smith, Consumer Protection Officer, spoke to Acorn + Oak Property Management and to Fathom Realty NC, both in Durham.

Disciplinary Actions

WILLIAM NEWTON DEVORE III (Asheville) – By Consent, the Commission reprimanded Mr. Devore effective May 1, 2019, on certain conditions. The Commission found that Mr. Devore, in or around December 15, 2015, was convicted of a Level 5 DWI, which he disclosed on his broker license application. In or around January 10, 2019, Mr. Devore self-reported his second DWI conviction involving an accident in which he damaged another vehicle. He received a sentence of 34 days in jail, which was suspended. Mr. Devore spent 28 days in an in-patient treatment center, and received 18 months of supervised probation and 240 hours of community service. Mr. Devore is prohibited from driving for one year.

OSCAR H. PACE, JR. (Broadway) – By Consent, the Commission reprimanded Mr. Pace effective April 1, 2019. The Commission found that Mr. Pace acted as broker-in-charge from April 11, 2016 to November 8, 2017. From November 2016 through March 2017, Mr. Pace’s employees falsely communicated to their landlord-client that the firm was continuing to accrue charges against a tenant who had vacated the property before lease end and the firm would eventually send the accrued charges to collections. Instead, Mr. Pace’s employees had already refunded the tenant security deposit to the tenant and informed him that he did not have to continue to pay rent.

TRIPP TOWER JR. (Denver) – The Commission accepted the voluntary surrender of Mr. Tower’s license effective April 17, 2019. Mr. Tower cannot reapply for licensure for one year. The Commission dismissed without prejudice allegations that Mr. Tower violated provisions of the Real Estate License Law and Commission rules. Mr. Tower neither admitted nor denied misconduct.

Spotlight: Wendell Bullard, Commissioner

Wendell Bullard of Durham was appointed to the North Carolina Real Estate Commission by Governor Roy Cooper effective August 1, 2018.

Mr. Bullard is Managing Broker at Bullard Properties, LLC, in Durham and has over 22 years of experience in the real estate industry including affiliations with Prudential Carolinas Realty, and Realty Executives Triangle Southpointe (Co-Owner).

He is past president of the Durham Regional Association of REALTORS® and the North Carolina Association of REALTORS® and past REALTOR® of the Year in both organizations.

One of several founding members for charter high schools in Charlotte and Raleigh, Bullard is past treasurer for Commonwealth and Stewart Creek High Schools and past board president of Central Wake Charter High School in Raleigh.

He is a graduate of North Carolina Central University with a B.S. in Marketing and a United States Air Force Security Specialists veteran.

Licensees as of April 1, 2019

Brokers Licensed per Month