Changes to Rules Effective January 1

Following is a summary of Real Estate Commission rule changes which became effective January 1, 2012.

General Brokerage

Trust Accounting

  • Clarifies that a broker may hold and transmit a check for a due-diligence fee in the same manner as an option fee.
  • Clarifies that properly documented electronic deposits into and disbursements from a broker’s trust account are permissible.

Residential Property Disclosure Form

  • Provides for a revised residential property disclosure form containing new disclosures required for properties governed by owners’ associations and more specific instructions concerning the type of residential properties for which the form is required. (See related story page 4-5.)

Examination and Licensing

  • Requires license applicants to pass an examination consisting of a national section and a North Carolina section and provides modified procedures for scheduling and taking the two-part examination.
  • Eliminates examination review by failing applicants.
  • Provides new procedures for licensing persons licensed in another jurisdiction after licensing by reciprocity is discontinued effective February 29, 2012.

Postlicensing Education

  • Provides that when a provisional broker fails to complete required post-licensing education within three years of initial licensure, the broker’s license will be placed on inactive status rather than canceled.
  • Provides educational requirements that a provisional broker whose license is on inactive status for failing to timely complete required post-licensing education must meet to reactivate his or her license.
  • Clarifies the Commission’s authority to extend the time for completing post-licensing courses by reason of hardship.

Schools and Instructors

  • Prohibits real estate schools and sponsors from using a van or other motor vehicle as a classroom and requires that classroom facilities comply with health, safety, and welfare requirements and are equipped for electronic visual presentations.
  • Provides that an individual applying for approval as a prelicensing and postlicensing instructor may be granted only one six-month grace period to attend the Commission’s New Instructor Seminar and satisfactorily demonstrate his or her teaching skills on a video recording.
  • Prescribes requirements for reinstatement of an expired instructor approval to teach the Real Estate Update continuing education course.

Please see the Commission’s Web site for the actual language of each rule.

This article came from the Feburary 2012-Vol42-3 edition of the bulletin.