Rule Changes Proposed; Effective July 1, 2014

Following is a summary of proposed rule changes to be effective July 1, 2014:

A .0104: Amend paragraph (d) of the rule governing agency agreements and disclosures to prohibit a broker who is also a party to a transaction from representing an opposing party in the same transaction; clarify circumstances under which a listing broker may purchase his/her client’s property.

A .0109: Amend the rule governing brokerage fees and compensation to prohibit a broker from accepting compensation from a vendor in exchange for recommending the vendor’s services to a party

A .0112: Amend the rule governing offers and sales contracts to incorporate minor technical changes.

A .0114: Rephrase Question #24 on the Residential Property and Owners’ Association Disclosure Statement 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 eliminate the reference to notice from a government agency about those restrictions.

A. 0117: Amend Paragraph (f) of the rule governing accounting for trust money to incorporate minor technical changes.

A .0118: Amend the rule governing the handling of trust money belonging to owners’ associations to incorporate minor technical changes.

A .0404: Amend the rule prohibiting cheating and certain other misconduct in connection with the licensing examination to add violations of various examination instructions as rule violations and to add dismissal from an examination, invalidation of examination score and forfeiture of examination and application fees as possible consequences in addition to denial of a real estate license and disciplinary action if an applicant becomes licensed prior to the discovery of the violation.

A .0502: Amend Paragraphs (a) and (d) governing the licensing of business entities to incorporate minor technical changes.

A .1709: Amend the rule governing brokers’ requests for extensions of time within which to complete CE to clarify that a request for extension must be made by a licensee on active status and submitted not later than June 10.

A .1808: Amend the rule governing the handling of trust monies by a non-resident commercial broker to incorporate minor technical changes.

C .0209: Amend the rule governing private real estate school enrollment procedures to require that the mandatory student enrollment contract for post-licensing courses include a description of the provisions in Rules C .0302(c) and A .1904(a)(3) prohibiting schools from knowingly allowing postlicensing students to enroll in two courses simultaneously if the student would be in class for more than 21 hours in a seven-day period and authorizing the Commission to deny or withdraw postlicensing credit as to a student participating in simultaneous courses exceeding 21 hours in seven days.

C .0309(a): Amend the rule to allow school officials’ signatures on course completion certificates to be provided electronically rather than only by signature or signature stamp in a color other than black.

E .0304: Amend the rule governing the criteria for elective course approval to provide that where a proposed new course has been reviewed by the Commission twice and found unsatisfactory after both reviews, any subsequent submission will be treated as an initial application requiring the payment of a $100 course application fee.

E .0408: Amend rule on changes in CE sponsor ownership to be consistent with proposed new rule clarifying G.S. 93A-35(c) on changes in private real estate school ownership.

This article came from the October 2013-Vol44-2 edition of the bulletin.