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

How to determine if you have BIC Eligible status

Have you ever wondered what Broker-in-Charge (BIC) Eligible status means? Do you know if you hold BIC Eligible status or if you meet the requirements to attain it?

To determine whether you hold BIC Eligible status, log into your license record on the Commission’s website:

  1. go to www.ncrec.gov;
  2. click on Licensing;
  3. click on Licensee Login; and
  4. click on View/Update License Record.

The View/Update Information page shows whether you currently hold BIC Eligible status. If you do, Yes will appear beside BIC Eligible status. If you do not currently hold the status, No will appear beside BIC Eligible status.

In order to qualify for BIC Eligible status, a broker must:

  1. hold an active license;
  2. have obtained at least two years of real estate brokerage experience equivalent to 40 hours per week within the previous five years;
  3. submit the Request for BIC Eligible Status and/or BIC Designation form (REC 2.25); and
  4. complete the 12-hour BIC Course within one year before submission of Form 2.25 or within 120 days after submission of Form 2.25.

A broker must first have BIC Eligible status to be designated as a BIC. A broker who has BIC Eligible status may step in and out of active BIC designation by submitting the Request for BIC Eligible Status and/or BIC Designation form (REC 2.25).  

BIC Eligible status may be maintained indefinitely by a broker who:

  1. renews their broker license between May 15 and June 30 every year; and
  2. completes the Broker-in-Charge Update (BICUP) course and a four-hour Commission- approved continuing education elective course by June 10 each year.

See Commission Rule 58A .0110 for a full explanation of BIC Eligible status and BIC designation. For more information or to ask a question, contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700.

Regulatory Affairs Case Study: Get Answers First

By Sheryl B. Graham, Consumer Protection Officer

An unsuccessful buyer who submitted an offer to purchase a beach-front property through his buyer agent filed a complaint with the Commission against the listing agent. 

Before showing the property, the buyer agent texted the listing agent asking questions about the property.  She asked if there was any storm damage from a prior hurricane, the location of the set-back lines, and if a structure could be rebuilt on the lot if the current structure was extensively damaged.  The listing agent answered some of the questions via text and stated she was waiting for answers to the remaining questions.  There was no response from the listing agent regarding whether or not the lot would be buildable if the structure were to be heavily damaged.  The listing agent and the buyer agent also spoke by telephone.  The buyer agent recalled the listing agent stating the damage from a prior storm was mostly cosmetic and was being repaired.  The listing agent recalled telling the buyer agent to contact the local Division of Coastal Management, which carries out the state’s Coastal Area Management Act (aka CAMA) requirements, regarding the property setback lines. 

The buyer submitted an offer to purchase without receiving additional answers or verifying information.  After the inspections and survey were completed, the buyer contacted a CAMA representative regarding the setback lines. The buyer learned the lot was “non-conforming”, meaning the structure could not be rebuilt in the existing footprint if it was damaged beyond 50%.  According to the CAMA office, a lot classification can change with the location of the first stable vegetation line in relationship with the ocean.  Changes can occur due to storms, hurricanes, and acts of nature. Therefore setback lines and lot classifications of beach-front properties should be verified with current information.  The standard setback from the oceanfront is a minimum of 60’ from the first stable line of vegetation.  If the house or structure is within 60’, the house is “non-conforming,” meaning that repairs and maintenance can be made to the property of up to 50% of the structure (whether caused by storm, hurricane, flood, etc.).  If the repairs / maintenance are for more than 50% of the structure, that is deemed “development” and must be approved through new construction guidelines and meet the current requirements. A standard survey does not indicate the location of setback lines and should not be relied upon to determine if a lot is non-conforming or not.

The buyer was not interested in continuing with the purchase and although it was past the due diligence (DD) date, the seller released the earnest money deposit, but not the DD fee.  The seller updated the Residential Property Owners Association Disclosure and the listing agent revised the MLS to reflect the information about the non-conforming lot.  The buyer filed a complaint against the listing agent for failure to disclose a material fact.

The North Carolina Real Estate Commission (NCREC) publication Purchasing Coastal Real Estate in North Carolina advises consumers: “…If you are working with a licensed real estate broker, the broker has the duty to disclose material facts that the broker knows or reasonably should know.  Although real estate brokers may not always know erosion rates or setback location for particular oceanfront properties, they should advise you of the possibility of erosion and direct you to available sources of information…”.  It further states:  “…Purchasers should determine if the lot and building presently meet the setback for new construction and [if the lot is] eligible for a replacement building, keeping in mind the risk that erosion may make the lot unbuildable in the future.”

            During investigation of the case, both the buyer agent (a provisional broker) and her broker-in-charge were added as Respondents.  The Commission cautioned the listing agent to discover and disclose material facts and features about properties prior to listing.  The Commission cautioned the buyer agent to discover and disclose material facts about a property prior to assisting a buyer with submitting an offer.  The Commission cautioned the buyer agent’s broker-in-charge regarding supervision of provisional brokers and training to discover and disclose material facts.  In this case, confirming answers to the buyer’s questions prior to submitting an offer would have saved the parties time, money and headaches.  Properties in particular markets, such as oceanfront areas, have features and nuances unique to their location.  Brokers representing clients in these areas should know, disclose and communicate those characteristics.     

For further information, visit:

Appearances

Charlie Moody, Legal Counsel, spoke at the Greensboro Regional Realtors Association’s First Tuesday Membership Meeting on November, 3.

Pete Myers, Information Officer, spoke at eXp Realty LLC’s NC Broker Meeting on November 19

Disciplinary Actions

NOAH CHRISTOPHER GEORGE (HENDERSONVILLE) – By Consent, the Commission reprimanded Mr. George effective October 16, 2019. Mr. George timely reported his April 23, 2019, conviction of misdemeanor sexual battery. He received 60 days of confinement, which was suspended and instead placed on supervised probation for one year. The incident occurred during a personal New Year’s Eve outing, involved a woman he previously had known, and occurred while both were intoxicated.

PAULA MAE WHITTED (CLYDE) – By Consent, the Commission reprimanded Ms. Whitted effective October 16, 2019.The Commission found that on or about May 23, 2019, Ms. Whitted attended the General Update Course at JY Monk/Kaplan R.E. Education in Waynesville, North Carolina and an elective course at the same school. The instructor noted that Ms. Whitted’s behavior changed from inquisitive to “confrontational” during the fourth hour of the first class and that Ms. Whitted was drinking from a large takeout cup. During the second class, she became increasingly disruptive. A student in the second class called the Waynesville Police Department because the student was concerned that Ms. Whitted was going to drive herself home, she was approached by a police officer at the end of class for questioning. The officer administered a “breath” test and was told to have someone pick her up. A criminal background search revealed Ms. Whitted has a DWI (Level 5) conviction in 2001.

SAMUEL S ANDERSON (LUMBERTON) – By Consent, the Commission suspended the broker license of Mr. Anderson for a period of 24 months. The Commission then stayed the suspension after a 3 month active suspension period. Mr. Anderson executed a purchase contract to sell vacant land, which he personally owned and failed to transfer title after receiving the full purchase amount from the buyer or by the date specified in the contract. Mr. Anderson instead used the purchase money as earnest money for a later executed purchase contract with the original buyer’s daughters to construct a home on the property. Mr. Anderson failed to construct the new home and the buyers won a civil judgment against him. Mr. Anderson then signed his name on an offer to purchase as the selling agent without an agency agreement in place with the buyer and failed to maintain a copy of all records in accordance with Commission rules. He also failed to present all offers to his seller clients and instead, presented two offers to a closing attorney who believed them to be fully executed when they were not. Mr. Anderson’s trust account was not labeled “trust” or “escrow” and the records were not properly maintained.

RODNEY R. CREECH (WILSON) – By Consent, the Commission revoked the license of Mr. Creech effective January 1, 2020.The Commission found that on or about March 2019, Mr. Creech was bidding on a judicial sale property against another potential buyer with the bidding going back and forth for weeks. On or about March 28, 2019, Mr. Creech called the other buyer’s agent and started “Tell your client if he is willing to pay me $2,000, I’ll have my offer go away.” The buyer agent conveyed the message to his buyer and recommended not to do so. The competing buyer called Mr. Creech directly and he first stated that his client instructed him to ask for the money before admitting that Mr. Creech “and his business partner” were buyers and that he was not representing a client when asking for payment.

HANS PROPERTY MANAGEMENT & REALTY (CHARLOTTE) – The Commission accepted the voluntary surrender of the firm license of Hans Property Management & Realty effective March 18, 2020. The Commission dismissed without prejudice allegations that Hans Property Management & Realty violated provisions of the Real Estate License Law and Commission rules. Hans Property Management & Realty neither admitted nor denied misconduct.

AMY BENSON LOGAN (SWANSBORO) – By Consent, the Commission reprimanded Ms. Logan effective April 1, 2020. The Commission found that on or about April 2018, Ms. Logan, acting as listing agent, falsely represented in the MLS that the subject property had a square footage of 4,230. In her MLS listing, she noted in the agent remarks that there was an inconsistency in the listed and taxed square footage of 3,431. Ms. Logan stated that she did her own measurements and made those available to the potential buyer. Her measurements were a three page, hand drawn outline of the property for sale with incorrect math at the bottom of the drawing stating a square footage of 4,216. The buyers bought the home without an appraisal and discovered that the actual square footage of the home was 3,271, a difference of over 950 square feet or a 29% gross error in size.

TAMMI LORENE KNAPP (CARY) – By Consent, the Commission suspended the broker license of Ms. Knapp for a period of 2 years effective April 15, 2020. The Commission then stayed the suspension in its entirety and place Ms. Knapp on probation until March 31, 2022. The Commission found that Ms. Knapp, as qualifying broker/broker-in-charge of TLC Realty Group Inc., acting as listing agent for a property that was being “flipped,” failed to disclose known material facts. The house went under contract and was terminated five times after home inspections for each of the five buyers revealed an underground storage tank, an unpermitted deck addition that was deemed structurally unsound, a sagging main support beam, an HVAC system that was installed in 2003 instead of within the last 0-5 years as stated in the RPOADS, active termites, and that the electrical and mechanical permits for the property were pending. Ms. Knapp was apprised of the deficiencies with the house, but never updated the MLS to accurately reflect the known material facts or otherwise disclose the issues. She never advised her seller-client, who was also a licensee, to change the RPOADS from “No Representation” after any of the terminated contracts.

TLC REALTY GROUP INC (CARY) – By Consent, the Commission suspended the firm license of TLC Realty Group Inc. for a period of 2 years effective April 15, 2020. The Commission then stayed the suspension in its entirety and place TLC Realty Group Inc. on probation until March 31, 2022. The Commission found that TLC Realty Group Inc., as listing agent for a property that was being “flipped,” failed to disclose known material facts. The house went under contract and was terminated five times after home inspections for each of the five buyers revealed an underground storage tank, an unpermitted deck addition that was deemed structurally unsound, a sagging main support beam, an HVAC system that was installed in 2003 instead of within the last 0-5 years as stated in the RPOADS, active termites, and that the electrical and mechanical permits for the property were pending. The broker-in-charge was apprised of the deficiencies with the house, but never updated the MLS to accurately reflect the known material facts or otherwise disclose the issues. The broker-in-charge never advised her seller-client, who was also a licensee, to change the RPOADS from “No Representation” after any of the terminated contracts.

LIJUAN LISA HAN (CHARLOTTE) – By Consent, the Commission suspended the broker license of Ms. Knapp for a period of 2 years effective June 3, 2020. The Commission then stayed the suspension in its entirety. The Commission found that Ms. Han, acting as a qualifying broker of a firm, created the firm for compensation purposes only; therefore it had no designated broker-in-charge. Ms. Han then entered into Property Management Agreements on behalf of the firm, some even before it was licensed. A review of Ms. Han’s trust accounts found: that disbursements failed to identify their purpose; a failure to retain deposit tickets; a failure to maintain separate journals; lack of an audit trail; a failure to perform monthly reconciliations; and comingling. Ms. Han has since transferred all funds to a third party firm and no longer engages in property management.

JESSE THOMAS WILLIAMS III (GREENVILLE) – The Commission accepted the voluntary surrender of the broker license of Jesse Thomas Williams III effective June 17, 2020. The Commission dismissed without prejudice allegations that Jesse Thomas Williams III violated provisions of the Real Estate License Law and Commission rules. Jesse Thomas Williams III neither admitted nor denied misconduct.

CONWAY & WILLIAMS PROPERTIES INC (GREENVILLE) – The Commission accepted the voluntary surrender of the firm license of Conway & Williams Properties Inc., effective June 17, 2020. The Commission dismissed without prejudice allegations that Conway & Williams Properties Inc., violated provisions of the Real Estate License Law and Commission rules. Conway & Williams Properties Inc., neither admitted nor denied misconduct.

LARRY JAMES PARKER JR (ERWIN) – The Commission accepted the voluntary surrender of the broker license of Larry James Parker, Jr., effective June 17, 2020. The Commission dismissed without prejudice allegations that Larry James Parker, Jr., violated provisions of the Real Estate License Law and Commission rules. Larry James Parker, Jr., neither admitted nor denied misconduct.

RMG REALTY CO INC (ERWIN) – The Commission accepted the voluntary surrender of the firm license of RMG Realty Co., Inc., effective June 17, 2020. The Commission dismissed without prejudice allegations that RMG Realty Co., Inc., violated provisions of the Real Estate License Law and Commission rules. RMG Realty Co., Inc., neither admitted nor denied misconduct.

JONATHAN ALFORD MATTHEWS (RALEIGH) – Following a hearing, the Commission permanently revoked the broker license of Jonathan Alford Matthews effective October 1, 2020. The Commission found that after July 1, 2018, Mr. Matthews continued to provide brokerage and property management services while his license was on inactive status due to his failure to complete continuing education, that Mr. Matthews collected rents and tenant security deposits on behalf of his landlord-clients but failed to maintain those funds in a designated trust account, failed to remit those funds to clients, and converted those funds to his own use.  The Commission further found that Mr. Matthews failed to inform the Commission of his address and contact information and failed to provide records to Commission staff upon request.

RDU BROKERS, INC. (RALEIGH) – Following a hearing, the Commission permanently revoked the broker license of RDU Brokers, Inc. effective October 1, 2020. The Commission found that after July 1, 2018, RDU Brokers, Inc. continued to provide brokerage and property management services through its qualifying broker while on inactive status due to the qualifying broker/broker-in-charge’s failure to complete continuing education, that the Firm collected rents and tenant security deposits on behalf of its landlord-clients but failed to maintain those funds in a designated trust account, failed to remit those funds to clients, and converted those funds to its own use.  The Commission further found that the Firm’s qualifying broker failed to inform the Commission of the Firm’s address and contact information and failed to provide records to Commission staff upon request.