Commission Initiates Commercial Broker Education Proposals

The Real Estate Commission has accepted and begun to implement the recommendations of an advisory committee to work with interested education sponsors to improve educational opportunities in the field of commercial real estate brokerage and to enhance licensees’ awareness of the need for greater education in this and other specialty areas of practice.

The Commission’s Commercial Brokerage Education Advisory Committee (CBEAC) recently reviewed commercial brokerage educational opportunities and specifically proposed that the Commission:

• Make the materials comprising the chapter on “Commercial Real Estate Brokerage” in the Commission’s North Carolina Real Estate Manual available for education sponsors to use in providing a six-hour “Introduction to Commercial Real Estate Brokerage” continuing education elective course, provided that proposed instructors meet special qualification requirements established by the Commission.
• Provide education sponsors of CE elective courses on commercial brokerage with suggestions for possible subject matter for courses that licensees could take after completing the introductory course.
• Through the Real Estate Bulletin and mandatory CE update course, address the issue of licensee competence necessary to engage in commercial brokerage and property management, and make licensees aware of educational opportunities in these fields.

The CBEAC was formed in 2001 to assist the Commission in developing a plan for a commercial brokerage education certificate program designed to make available basic instruction to licensees, especially those with occasional commercial transactions.

The development and operation by the Commission of such a program had been recommended by the Commission’s Specialty Licensing Advisory Committee that studied the issue of possible separate licensure or certification of commercial brokerage and property management practitioners. The Commission agreed with the committee’s recommendation After considerable deliberation, the CBEAC recommended that the Commission reconsider its tentative plans to develop and administer a basic commercial brokerage education certificate program.

Several factors contributed to the CBEAC’s conclusion. A primary concern was that issuance of a program certificate by the Commission would imply to licensees and consumers that certificate holders are especially competent to practice commercial brokerage.

The fact is, however, that the amount of information that could be conveyed in even a high quality introductory-level program of some 30 classroom hours would be completely inadequate to achieve the necessary level of competence. The committee also had other concerns about the likelihood of program participation by the primary target audience, competition with an existing similar program in Charlotte and the high cost of development.

The CBEAC members were Peter T. Chenery, Raleigh, Richard D. Whitney, Asheville, and William C. Maus, Wilmington, Commercial Brokers; Ernest D. Wilkinson III, Atlantic Beach, Dewey L. Brantley, Jr., Wilson, and Roy H. Harvel, Southern Pines, General Practitioners; Cindy S. Chandler, Charlotte, Educator and Commercial Broker; William C. Lackey, Jr., Charlotte, General Practitioner and Commission Member; and Chris Rhodes, Director of Professional Development, NC Association of REALTORS®, Ex Officio Member. Commission staff advisors for the committee were Larry Outlaw, Director of Education and Licensing, and Pamela Rorie, Continuing Education Officer.

The Commission appreciates the contributions of the CBEAC members who willingly devoted their valuable time to assist the Commission in this matter.

This article came from the February 2002-Vol32-4 edition of the bulletin.