Part One of an in-depth Five-Part series on the Complaint and Disciplinary Process in Regulatory Affairs.
Navigating Complaints: A How-To Guide
The Real Estate Commission investigates complaints against real estate licensees accused of misconduct. If the Commission finds that licensees have violated the Real Estate License Law (N.C.G.S. Chapter 93A) or Commission rules, it can reprimand, suspend or revoke their licenses.
The majority of complaints received by the Commission are submitted by consumers, and sometimes brokers, but they may also be initiated by the Commission or referred from other agencies. Complaints may be submitted on the Commission’s website or by mailing the Complaint Form and any supporting documents to:
North Carolina Real Estate Commission
PO Box 17100
Raleigh NC 27619-7100
All complaints and any supporting documentation will become a public record, and a copy will be given to the real estate licensee complained against. Complaints cannot be withdrawn or deleted. Persons who file complaints must be willing to appear as a witness, be sworn, testify and be cross-examined concerning the allegations made in their complaints.
Complaints should include a narrative of events or plain statement of the allegations against the real estate licensee(s) complained against.
The Real Estate Commission cannot
If these types of issues are involved, the complaining witness should consult a private attorney.
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 the facts as alleged constitute a violation of License law and/or Commission rules?”
If the answer is yes, then a case file is opened and the complaining witness is notified.
If the answer is no, then the Commission staff attorney sends a letter to the complaining witness with information regarding the reason for declining to open a case. The Commission may decline to investigate complaints where no violation of License law and/or Commission rules is alleged, or where it has no jurisdiction. The Commission may also request additional information from the complaining witness before determining whether to open a case.
If a case file is opened and most of the necessary information in an investigation can be gathered by mail, email, or phone, then the case is referred to a Consumer Protection Officer (CPO), who writes to the responding broker and any witnesses to obtain statements and documents.
In addition to investigating complaints against licensees, CPOs investigate complaints against unlicensed persons conducting real estate brokerage activity. As part of their investigations, CPOs
They also deliver presentations on License Law and Commission rules to brokers and the public.
Cases which cannot be investigated by a Letter of Inquiry or where the broker fails to respond are assigned to a field investigator who routinely performs face-to-face interviews, audits trust accounts and gathers information and documentation that may be needed to evaluate a complaint.
The Commission does not automatically assume that the allegation(s) in a complaint are true. However, to fulfill its mission to protect the public interest in real estate brokerage transactions, the Commission investigates each complaint to determine whether there is sufficient evidence to suggest that there has been wrongdoing or improper conduct by a licensee.
A copy of the complaint and any documents the Commission received is included with the initial Letter of Inquiry. Pursuant to Rule 58A .0601(e), any broker who receives a Letter of Inquiry shall submit a written response within 14 days of receipt. If additional time is needed to prepare a thorough response, the broker should contact the CPO who wrote the letter of inquiry and request an extension of time to respond, which typically is granted.
When responding to a Letter of Inquiry, a licensee should provide a factual description of the transaction or incident described in the complaint and provide copies of relevant documents to support those statements. The Commission has the authority to expand investigations beyond the allegations described in complaints and may ask for information and/or documentation regarding other aspects of a transaction or matter. Licensees should fully answer the Letter of Inquiry before the deadline or any extension.
Real estate licensees may hire an attorney to assist with responding to a Letter of Inquiry or when meeting with an Auditor/Investigator; however, it is not a requirement. If you are unsure about whether to obtain legal representation, you may want to discuss your situation with an attorney before deciding.
All responses to Letters of Inquiry or interviews are evaluated to determine any need for additional information and/or further investigation. Once the file provides a clear understanding of the facts, or in the case of a field investigation, after the report is completed, a decision is made to either close the file with or without a warning or to forward the case to the members of the Commission to review and determine whether or not a hearing should be ordered in the matter. Only Commission members can order a hearing against a licensee. If the file is closed, the licensee and the complaining witness will receive notification in writing of the decision.
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.