As the Bulletin went to press, the last remaining step in the process governing rule changes was scheduled for May 9 with Commission final review and decision. Brokers should visit the Commission’s Web site, www.ncrec.gov (Home/License Law and Rule Changes), for any updates and the full text of each revised rule.
Proposed rule changes to be effective July 1, 2014 are summarized below:
Real Estate Brokers – General Brokerage
Agency Agreements and Disclosure (A. 0104) – prohibits a broker who is selling property in which the broker has an interest from representing a buyer of the property, and further prohibits a broker who is listing property from purchasing the listed property unless the broker first discloses the conflict of interest to his principal and, if requested to do so by his principal prior to closing, terminates the listing agreement.
Broker-in-Charge (A. 0110) – deletes the requirements that brokers-in-charge complete the four-hour Broker-in-Charge Annual Review Course and the mandatory four-hour Update Course and, instead, requires completion of a new four-hour mandatory course, known as the “Broker-in-Charge Update Course”, and a four-hour CE elective course in order to retain broker-in-charge eligibility. The rule change will combine the old BICAR course and the Update Course into a single four-hour course, allowing brokers-in-charge to take an elective CE course to fulfill the mandatory eight-hour CE requirement.
Residential Property and Owners’ Association Disclosure Statement (A. 0114) – clarifies question #24 on the form to inquire whether, based upon the seller’s knowledge, the property is in violation of any local zoning ordinances, restrictive covenants, building code requirements, or other land-use restrictions, and eliminates the reference to notice from a government agency about those restrictions.
Real Estate Brokers – Examinations
Cheating and Related Misconduct (A. 0404) – clarifies the rule prohibiting cheating and certain other misconduct in connection with the licensing examination to prohibit applicants from engaging in specified activities when taking a license examination and to add forfeiture of examination and application fees as possible consequences for a violation of the Rule in addition to dismissal from an examination, invalidation of examination score, and denial of a real estate license and disciplinary action if an applicant has been issued a license.
Real Estate Brokers – Licensing
License Renewal; Penalty for Operating While License Expires (A .0503) – requires that brokers apply for renewal using an electronic application on the Commission’s Web site or by calling the Commission’s office and that brokers provide the Commission with their e-mail address if they have one. Further, brokers are permitted to designate their e-mail address as private, thereby exempting the addresses from disclosure as a public record.
Real Estate Brokers – Mandatory Continuing Education
Continuing Education Requirement (A .1702) – revision provides that four of the eight hours of continuing education required of brokers each year shall consist of the Update Course, except that brokers-in-charge shall complete the “Broker-in-Charge Update Course” prescribed in the proposed amendment to A .0110.
Extensions of Time to Complete Continuing Education (A .1709) –a request for extension of time to complete CE must be made by a broker on active status and submitted not later than June 10 of the license year for which the extension is sought.
Real Estate Prelicensing Education – Schools
Withdrawal or Denial of Approval (C .0105) –lowers the threshold below which the Commission may take formal disciplinary action in response to the substandard performance of a school’s or instructor’s students taking the license examination for the first time from 70% to 50% for any two of the previous five annual reporting periods; lowers the substandard performance threshold for a school’s first-time examination candidates from 70% to 50% for that portion of the rule authorizing the Commission to discipline a school for failing to provide a requested plan for corrective action.
Real Estate Prelicensing Education – Prelicensing and Postlicensing Instructors:
Denial or Withdrawal of Approval (C .0608) –lowers the threshold below which the Commission may take formal disciplinary action against the prelicensing and postlicensing instructor in response to the substandard performance of the instructor’s first-time examination candidates from 70% to 50% for any two of the previous five annual reporting periods; lowers the substandard performance threshold for an instructor’s first-time examination candidates from 70% to 50% for that portion of the rule authorizing the Commission to discipline an instructor for failing to provide a requested plan for corrective action.
Real Estate Continuing Education – Update Course Instructors:
Application and Criteria for Original Approval (E .0203) –requires Update Course instructor applicants to take the Commission’s Update Instructor Seminar for the license year in which the applicant’s approval would be effective prior to approval being issued. If the applicant fails to take the seminar within six months after filing the application for approval, the application will be cancelled.
This article came from the May 2014-Vol45-1 edition of the bulletin.