• Today’s real estate consumers neither know nor care whether their agent has a broker license or salesperson license – they expect the same level of service;
• Persons choosing real estate brokerage as a career would benefit from additional real estate education focusing especially on practical aspects of real estate transactions; and
• Brokers who open and manage real estate offices need more training and experience.
These were some of the conclusions reached by the Real Estate Commission’s 2004 Broker-in-Charge Advisory Committee.In its report to the Commission 1, the committee made several recommendations to address these concerns.Generally, they would create a single (broker) license, require future licensees to complete post-licensing education, and increase the qualification requirements to become broker-in-charge of a real estate office.The Commission concurred with the committee’s recommendations and will seek enabling legislation during the 2005 Session of the North Carolina General Assembly.
Here is a brief description of how the proposed changes in license structure and requirements would affect you:
IF YOU HAVE A
(or obtain one before March 1, 2006),
|You would NOT be affected.|
IF YOU HAVE A
(or obtain one before October 1, 2005),
|Your license would, on March 1, 2006, be converted to a broker license on “provisional” status–active salesperson to active broker and inactive salesperson to inactive broker. While on provisional broker status, you must continue to be supervised by a broker-in-charge when performing brokerage activities and you could not yourself become broker-in-charge of a real estate office.Your license would remain on provisional status until you either (1) certify to the Commission that you have at least four years full-time (or equivalent part-time) experience as a real estate salesperson and/or broker within the past six years, or (2) complete a 24 classroom hour “broker transition course” for which you would receive some continuing education credit.If you do not complete the transition course or satisfy the experience alternative by March 1, 2008, your license would be placed on inactive status, and you would be required to complete a 90-hour course(s) to activate it 2.|
PERSONS WHO APPLY FOR
REAL ESTATE BROKER LICENSESAFTER MARCH 1, 2006
Would be required to complete a 90-hour pre-licensing course (currently 67 hours), pass the licensing examination and satisfy the character requirements to obtain a “provisional” broker license. Their licenses would remain on provisional status until they complete an additional 90-hour post-licensing course(s), and if they do not complete the course within two years, their licenses would be cancelled.
IF YOU WANT TO BE DESIGNATEDBROKER-IN-CHARGE
OF A REAL ESTATE OFFICE AFTERMARCH 1, 2006,
|You would be required to complete (within 120 days following designation) an eight-hour “Broker-in-Charge Course” and four-hour “Basic Trust Account Course”. Additionally, you must possess at least one year full-time (or equivalent part-time) experience as a broker and/or salesperson, or have real estate education/experience equivalent to such experience. Also, while designated as a broker-in-charge, you must each year complete a special continuing education course for brokers-in-charge which would satisfy your continuing education elective course requirement for the year.|
The Real Estate Commission believes that moving towards “all-broker offices”, strengthening the requirements for opening and managing real estate offices, and requiring practice-oriented post-licensing education for future licensees not only reflects marketplace realities but will promote professionalism in the real estate business. The Commission commended the advisory committee members for their vision and suggestions for bringing about this transition in a thoughtful and balanced manner.
The members of the 2004 Broker-in-Charge Advisory Committee were Benjamin K. Ball (Morehead City), W. Laynie Beck, Jr. (Fayetteville), John W. Carroll (Asheville), Paul G. Gilmer, Sr. (Greensboro), Philip M. Guy, Sr. (Fayetteville), Commission Member William C. Lackey, Jr. (Cornelius), Robert W. Lawing (Charlotte), Carol H. Lesley (Concord), William H. Lucas (Rich Square), NCAR General Counsel Will Martin, Assistant Attorney General Harriet Worley, and Vance B. Young (Wrightsville Beach).
1A copy of the report is available at the Commission’s website (www.ncrec.state.nc.us) Go to the site map and look under “Reports”.
2Persons who obtain salesperson licenses between October 1, 2005 and March 1, 2006 would also have their licenses converted to broker licenses on “provisional” status on March 1, 2006; however, their licenses would remain on provisional status until they have completed a 90-hour course(s), and if they do not complete the course(s) by March 1, 2008, their licenses would be placed on inactive status.
This article came from the February 2005-Vol35-3 edition of the bulletin.