Commission Spotlight: Auditor

Did you know the Commission audits brokers’ trust accounts? Have you ever wondered who performs those audits?

When the Commission receives a complaint against a broker, a staff attorney reviews the complaint to determine whether the allegations fall under the jurisdiction of the Real Estate Commission.  The staff attorney is not attempting to determine whether the allegations are true or false at this stage.  Rather, the attorney must consider: “If all allegations in this complaint are true as written, would there be a violation of License law and Commission rules?”  If the answer is yes, then a case file is opened.

If the allegations in the complaint involve mismanagement of consumer funds, then the case is referred to a Commission Auditor who will likely visit the brokerage office to obtain statements and documents.

In addition to performing complaint-based audits, Auditors:

• conduct “spot audits” of trust accounts;
• investigate financial fraud involving misrepresentations, loan fraud, the mishandling of client funds, and other improper acts in connection with real estate sales and leasing transactions;
• write reports for the Director of Regulatory Affairs regarding their investigations;
• testify as witnesses in disciplinary hearings; and
• assist in instructing courses and conducting workshops related to real estate brokerage.

To learn more about the complaint process or to file a complaint, go to the Commission’s website, or contact Regulatory Affairs at RA@ncrec.gov or 919-719-9180.