Update on Education Requirements – Public Health Emergency

On March 18, 2020, the Commission voted to approve two emergency rules addressing education issues during the public health emergency.  The rules are posted on the Commission’s website https://www.ncrec.gov/Pdfs/Rules/EmergencyRulemaking.pdf

Rule G .0104 provides relief to licensees with respect to the Commission’s education requirements. It requires schools and sponsors to cancel or suspend live, in-person classes beginning March 26 (the effective date of the rule) and allows for certain online alternatives as well as extensions of time.

Q: May schools and sponsors offer in-person courses in April?
A: No. All in-person classes must be cancelled or suspended through April 30, 2020. 

Q: Can I take the Update (General Update or BICUP) course online? What about my Postlicensing course(s)?
A: YES! Under the emergency rule, Update and Postlicensing courses can be offered via synchronous distance learning from March 26-April 30. Synchronous learning means that the students and instructor are in separate places, but that everyone is participating in the course online at the same time.

Q: How can I find an Update or Postlicensing course being offered via synchronous distance learning?
A: Update courses: Go to the Commission’s website (ncrec.gov), click on Education, and click on Search CE Course Schedule. In the search screen, type ONLINE in the city name field, then click on Search.

Postlicensing courses: Go to the Commission’s website (ncrec.gov), click on Education, and click on Postlicensing Course Schedule. Courses are grouped by city name. Scroll down to city name “ONLINE.”

Q: What if I start a Postlicensing course after the rule goes into effect, but for whatever reason, I cannot finish?
A: While the rule is in effect, the school must allow you to make up missed course hours by attending another offering of that course, and the content has to be the same as the part you missed.

Q: I am a broker and need more time to take the 12-hour BIC Course. What should I do?
A: Email a request for an extension of time to bicext@ncrec.gov .  You will not have to submit supporting documentation while the rule is in effect.  You will be granted an automatic 90-day extension. 

Q: What if I can’t find an Update or Postlicensing course by my deadline. What should I do?
A: CE Update and Elective courses:  The Commission will grant an automatic 90-day extension to brokers who have not completed CE by June 10.  No request form is needed. 
Postlicensing courses: The Commission will grant an automatic extension through September 30, 2020, to brokers who have not completed Postlicensing.  No request form is needed.

Please send an email to our office for further information (ls@ncrec.gov). Because of the current health crisis, we have more questions and fewer staff than usual. We appreciate your patience as we work to address your questions and concerns.

Commission Building Closed; Staff are Available by Phone, Email, and Webform

NC REAL ESTATE COMMISSION BUILDING CURRENTLY CLOSED TO ALL VISITORS; STAFF ARE AVAILABLE BY PHONE, EMAIL, WEB FORMS

The members and staff of the North Carolina Real Estate Commission are concerned about the health and safety of our licensees and the public. For the protection of everyone, effective Monday, March 23, 2020, our building is closed to all visitors. The Commission remains open for business via telephone, email, and at ncrec.gov, including applications, web forms, and more.

Contact us at 919-875-3700, via this website, or by email to the addresses listed below. We’re here to help. If you call and get a voice mail, please leave a message and we will return your call

Main Number – 919-875-3700

Education & Licensing – 919-875-3700; LS@ncrec.gov

Regulatory Affairs – 919-719-9180; RA@ncrec.gov

Administration – admin@ncrec.gov

Executive – exec@ncrec.gov

Commission Spotlight: Charlie Moody

Charlie Moody serves as Legal Counsel and Assistant Director of the Regulatory Affairs Division.  A native of New York, New York, Charlie graduated from Duke University with a degree in Public Policy.  She then attended the UNC-Chapel Hill School of Law, receiving her J.D. degree in 1998.

Following graduation from law school, Charlie entered private practice in Atlanta where she specialized in general business litigation.  Charlie then returned to North Carolina in 2003, and in February 2006, joined the Commission’s legal staff.  Charlie’s duties at the Commission include the prosecution and settlement of disciplinary cases, participation in NC Association of REALTORS® and NC Bar Association Forms Committees, and oversight of the time share registration program.

Charlie has three human children: a college senior, a college freshman, and a high school freshman. She also has three non-human children who include an elderly sheltie, a teen standard poodle and a cranky black cat.

Postlicensing Education Deadline

This article from the March eBulletin is republished here to remind brokers of the new Postlicensing Education requirement effective July 1, 2020.

Beginning July 1, 2020, Rule 58A .1902 will require a Provisional Broker to complete all three 30-hour Postlicensing courses within 18 months of initial licensure in order to maintain active license status. 

If you were licensed anytime during 2018, you must complete all your Postlicensing courses by July 1, 2020. If you have been licensed in 2019, you will have at least 18 months from your date of licensure to complete the courses.

Example #1: Licensed on February 1, 2018

• 1^st Postlicensing course deadline: February 1, 2019
• 2^nd Postlicensing course deadline: February 1, 2020
• 3^rd Postlicensing course deadline: June 30, 2020

Example #2: Licensed on March 17, 2019

• 1^st Postlicensing course deadline: March 17, 2020
• 2^nd & 3^rd Postlicensing course deadlines: September 17, 2020

Additional information about this important change is provided in the General Update (GENUP) and Broker-in-Charge (BICUP) courses throughout the year. Also, if you are a provisional broker, be on the lookout for email communications from the Commission about the changing education deadlines.

If you have further questions regarding this rule change, please contact the Education and Licensing Division at 919.875.3700.

How to check your CE record

This article from the February eBulletin is republished here to remind brokers to check their license record to ensure compliance with License Law and Commission rules regarding continuing education.

Did you know that you can check your CE record at any time on the Commission’s website?

Your CE record is part of your license record. To access it:

1. go to www.ncrec.gov;
2. click on Licensing;
3. click on Licensee Login;
4. enter your License Number and your Password (your Password is the last four digits of your SSN if you have not changed it); and
5. click on Login.

After you log in, you will see the Licensees Menu. Click on CE License Information.

At the top of the CE page, you will see “Current Update Hours” followed by a 0 (zero) or a 4 (four). A 4 (four) means you have completed an Update course for the current period. A 0 (zero) means you have NOT yet completed a course, and you need to do so by June 10.

Next, you will see “Current Elective Hours” followed by a 0 (zero) or a 4 (four). A 4 (four) means you have completed an elective course for the current period. A 0 (zero) means you have NOT yet completed a course, and you need to do so by June 10 .

Also provided in your CE record is a full listing of the courses you have completed and the dates on which you completed them.

DO YOU HAVE BIC ELIGIBLE STATUS? If so, you need to take the BICUP (rather than the GENUP) course if you wish to maintain BIC Eligible status. To determine whether you have BIC Eligible status, go back to the Licensees Menu in your license record. If you see a link for “Print BIC Eligible Document,” then you have BIC Eligible status. If that option does not appear, you do not have BIC Eligible status and must take the GENUP course.

For more information about your license record, contact the Commission’s Education and Licensing Division at 919.875.3700.

“Preventing Rental Scams”

By Nicholas Smith, Consumer Protection Officer

Wow! A 4 bed, 3 bath single family home for rent in “THE” place to be… for only $1,000 dollars a month? With no background or credit check? How soon can I move in?

If it sounds too good to be true, it probably is.

Rental scammers often use existing online images of properties for sale or rent to create fraudulent listings with deals that seem too good to pass up. The scammers, posing as an agent, landlord, or a friend of the owner, lure prospective tenants into paying a security deposit, application fees, or a few months’ rent before the tenant sees the property in person or receives the keys. Most often, these rental scams are perpetrated entirely online and over the phone. The scammers tend to create a sense of urgency with prospective tenants by offering to send the keys upon receipt of money from the tenants. The victims often don’t realize they have been tricked until they have already paid the scammer. In some cases, multiple people may fall victim to a single fraudulent listing.

Brokers who offer properties for sale or rent online can take steps to help prevent these scams.

• Signage at the property- Placing signs at the property that indicate that you and your firm are offering the property for sale or lease may alert potential victims who drive by the property that the rental advertisement they saw could be a scam. Always be sure to have the owners’ written consent prior to placing a “for sale” or “for rent” sign.

• Perform a reverse image search- Many free internet search engines can perform a search using an image only rather than keywords. By using a reverse image search, you may be able to identify a fraudulent listing using the pictures of the property you posted online.

• Watermark images used in listings- Watermarking involves transposing a faint image over another to prevent the theft or misuse of an image. A watermark indicating the property is “for sale only and not for rent” or “for rent only through ABC Realty” may deter a scammer from using the image. Before using watermarked images advertising a property, be sure to have approval from your principal and broker-in-charge. Additionally, your local MLS may have rules prohibiting watermarked images, so be sure to check with your MLS prior to using them.  

If your listing has been used in a rental scam or you believe you have identified a rental scam listing, consider filing a complaint with the Commission on our website (ncrec.gov) if the offender is licensed, and if the offender is not licensed, with the FBI (www.IC3.gov) and with the NC Department of Justice (ncdoj.gov/file-a-complaint/).

Current Stats: Monthly Licensee Count as of March 1, 2020

Disciplinary Actions

JORGE JOSE TIPIANA (Garner) – Following a hearing, The Commission permanently revoked the broker license of Jorge Jose Tipiana effective February 4, 2020. The Commission found that Mr. Tipiana, as the seller of a property he renovated, collected $4000 in due diligence fees from five failed transactions in which Mr. Tipiana repeatedly failed to disclose material facts, including an unpermitted deck, open permits for mechanical and electrical changes, and a sagging structural beam.

JOHNNY E PRATHER (Murphy) – By Consent, the Commission reprimanded Mr. Prather effective March 10, 2020. The Commission found that Mr. Prather served as the broker-in-charge for a firm where one of its brokers advertised a residential property as having 3,264 square feet. This included a garage area and a “safe room” which were not heated by permanently installed conventional heating systems. Mr. Prather also failed to retain records of sketches, calculations, or other documentation that was used in reliance upon the advertised square footage.

WESTERN CAROLINA REAL ESTATE COMPANY INC. (Murphy) – By Consent, the Commission reprimanded Western Carolina Real Estate Company Inc. effective March 10, 2020. The Commission found that one of the firm’s brokers advertised a residential property as having 3,264 square feet. This included a garage area and a “safe room” which were not heated by permanently installed conventional heating systems. The Firm also failed to retain records of sketches, calculations, or other documentation that was used in reliance upon the advertised square footage.

NICKY ARNOLD GUTHRIE (Murphy) – By consent, the Commission suspended the broker license of Mr. Guthrie for a period of 12 months, effective March 10, 2020. The Commission then stayed the suspension for a probationary period through March 10, 2021. The Commission found that Mr. Guthrie listed a residential property for sale and advertised it as having 3,264 square feet. This included a garage area and a “safe room” which were not heated by permanently installed conventional heating systems. He also failed to retain records of sketches, calculations, or other documentation that he relied upon in determining the square footage and relied on the property tax card.

CARINA SCHOENING WOOLRICH (Murphy) – By Consent, the Commission reprimanded Ms. Woolrich effective March 10, 2020. The Commission found that Ms. Woolrich acted as a buyer agent in a residential transaction where the subject property was advertised as having 3,264 square feet. Ms. Woolrich, while informing her buyer clients that she believed the square footage being advertised wrongfully included 576 square feet for a garage, failed to suggest to her clients that they have the property professionally measured to determine the actual square footage. Ms. Woolrich also failed to inform the listing agent of the misrepresentation, a best practice standard, as defined under the Commission’s Residential Square Footage Guidelines.

EDWIN LLOYD MATTHIS JR. (Clinton) – By Consent, the Commission suspended the broker license of Mr. Matthis Jr. for a period of 1 year effective December 1, 2019. In February 2019, Mr. Matthis Jr. self-reported a Misdemeanor Assault on a female conviction more than 60 days following his conviction. He also failed to report two additional convictions, a Misdemeanor Simple Assault from February 2017 and a misdemeanor DV Protective Order Violation from June 2017. Mr. Matthis Jr. also failed to respond to multiple Letters of Inquiry.  

STEPHANIE RAY ANSON (Raleigh) – By consent, the Commission suspended the broker license of Ms. Anson for a period of 12 months, effective March 10, 2020. The Commission then stayed the suspension in its entirety. The Commission found that Ms. Anson’s firm listed a residential property for sale and, after going under contract, she received the Home Inspection report, termite report, and repair request via email from the buyer’s agent. Ms. Anson failed to review the documents or go over them with her principal. The termite report noted the presence of subterranean termites with no control measures having been performed along with damaged wood in the crawlspace. The home inspection revealed electrical, plumbing, and structural issues. Soon after the buyer terminated the contract, the subject property went under contract with a subsequent buyer. Ms. Anson failed to disclose the material facts noted in the above reports to this buyer or their agent upon receiving the offer. This buyer terminated the contract after his termite inspection found “extensive termite activity and damage”. Ms. Anson then listed a different residential property for sale and advertised it as a 3-bedroom home as having natural gas heat and being connected to city sewer. After closing, the buyer discovered that the property was on a septic system, which was permitted for two bedrooms, and had propane heat. The seller assisted the buyer in connecting the home to city sewer and the buyer has also converted the heat system to gas.

MEREDITH ANN LUNDBERG (Raleigh) – By consent, the Commission suspended the broker license of Ms. Lundberg for a period of 6 months, effective March 10, 2020. The Commission then stayed the suspension in its entirety. The Commission found that Ms. Lundberg’s firm listed a residential property for sale and, after going under contract, she received the Home Inspection report, termite report, and repair request via email from the buyer’s agent. She forwarded the information to her seller client, but failed to review the documents or go over them with her principal. The termite report noted the presence of subterranean termites with no control measures having been performed along with damaged wood in the crawlspace. The home inspection revealed electrical, plumbing, and structural issues. Soon after the buyer terminated the contract, the subject property went under contract with a subsequent buyer. Ms. Lundberg failed to disclose the material facts noted in the above reports to this buyer or their agent upon receiving the offer. This buyer terminated the contract after his termite inspection found “extensive termite activity and damage”.

KEVIN DESHAWN MORGAN (Durham) – By consent, the Commission suspended the broker license of Mr. Morgan for a period of 2 years, effective August 1, 2019. The Commission then stayed the remaining 1 year after a 1 year active suspension period, effective August 1, 2020. The Commission found that in September 2018, Mr. Morgan, acting as a buyer agent, falsified the signatures and initials of the buyers he represented on an “Exclusive Buyer Agency Agreement”, “Working with Real Estate Agents” brochure, and an “Offer To Purchase and Contract” in a residential sales transaction. Mr. Morgan conducted this real estate transaction with an inactive license after receiving notice from the Commission and a warning from his broker-in-charge, and failed to provide the transaction documents to his firm.

JANE ELLEN GOEBEL (Murphy) – By Consent, the Commission reprimanded Ms. Goebel effective June 3, 2020. The Commission found that Ms. Goebel acted as a buyer agent in a residential purchase transaction.  She failed to forward the property disclosure form for the subject property to her buyer clients until after the due diligence period expired. The seller indicated on the disclosure form that the subject property was located on a private road/street and that no maintenance agreement existed. The buyers terminated the contract when they discovered that they would be responsible for the maintenance of the private road/street.

MAXWELL LOUIS GOEBEL (Murphy) – By Consent, the Commission reprimanded Mr. Goebel effective June 3, 2020. The Commission found that Mr. Goebel acted as a buyer agent in a residential purchase transaction.  He failed to forward the property disclosure form for the subject property to his buyer clients until after the due diligence period expired. The seller indicated on the disclosure form that the subject property was located on a private road/street and that no maintenance agreement existed. The buyers terminated the contract when they discovered that they would be responsible for the maintenance of the private road/street.

Appearances

Jean Hobbs, Auditor/Investigator, recently spoke at Allen Tate’s business meeting in Charlotte NC.

Nick Smith, Consumer Protection Officer, recently spoke at Keller Williams of Greensboro’s Time Out Tuesday Series in Greensboro NC.

Marcia Waldron, Auditor, recently spoke at Greensboro Landlord Association in Greensboro NC.

Mary Wills Bode has been appointed to the Commission

Mary Wills Bode of Raleigh has been appointed by Governor Roy Cooper to the North Carolina Real Estate Commission for a term ending July 21, 2022, announced Miriam J. Baer, Executive Director.

Mary Wills Bode of Raleigh has been appointed by Governor Roy Cooper to the North Carolina Real Estate Commission for the term ending July 21, 2022, announced Miriam J. Baer, Executive Director.

Bode is the Executive Director of North Carolinians for Redistricting Reform (NC4RR) in Raleigh, a bipartisan non-profit co-chaired by Tom Ross and Rep. Chuck McGrady that seeks to improve representative democracy through redistricting reform.

Prior to her role with NC4RR, Bode was a corporate attorney at Proskauer Rose LLP and Cahill Gordon & Reindel LLP in New York, where she specialized in capital markets, leveraged finance, as well as mergers and acquisitions.

While in law school, Bode worked for the Office of the Federal Public Defender for the Eastern District of North Carolina (EDNC), The Honorable U.S. Magistrate Judge William Webb, U.S. District Court, EDNC in Raleigh, North Carolina, as well as The Honorable Senior District Judge Malcolm Howard, U.S. District Court, EDNC in Greenville, North Carolina.

She was honored with The American Lawyer’s M&A Global Deal of the Year for her cross-border legal work in Europe in 2016.   Bode holds a Juris Doctorate from the University of North Carolina at Chapel Hill, where she was a member of the North Carolina Law Review, and Bachelor of Arts degree in Economics and Psychology from Wake Forest University.