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Nomination deadline for 2022 Outlaw Award is January 14
The Commission is soliciting nominations for the 2022 Larry A. Outlaw Excellence in Education Award until Friday, January 14, 2022.
Click here to download the nomination form, which includes detailed information about selection criteria and the nomination process.
Questions and nominations should be directed to outlawaward@ncrec.gov.
Did You Know? Education providers must publish a Policies and Procedures Disclosure (PPD)
Did you know that private education providers are required to publish a Policies and Procedures Disclosure, or PPD? Are you familiar with your provider’s PPD?
NCGS § 93A-34 and Commission Rule 58H .0204 require certified education providers to publish a PPD that includes:
– identifying data and publication date;
– name(s) of education provider(s) and its full-time officials and faculty;
– education provider’s policies and procedures relating to entrance requirements, registration, grades, student progress, attendance, student conduct and refund of tuition and fees;
– detailed schedule of tuition and fees;
– detailed course outline of all courses offered;
– the name and address of the Commission, along with a statement that any complaints concerning the education provider or its instructors should be directed to the Commission;
– a statement that the education provider shall not discriminate in its admissions policy or practice against any person on the basis of age, sex, race, color, national origin, familial status, handicap status, or religion;
– the education provider’s most recent annual License Examination Performance Record and the Annual Summary Report data as published by the Commission;
– the all-inclusive tuition and fees for each particular course;
– a written course cancellation and refund policy;
– a list of all course and reference materials required;
– the course completion requirements pursuant to Rule .0207 of this Section and 21 NCAC 58A .1705; and
– a signed certification acknowledging the student’s receipt of the Policies and Procedures Disclosure prior to payment of any portion of tuition or registration fee without the right to a full refund.
So why is it important to review a provider’s PPD before taking a class? To be sure you’re aware of all course policies and requirements.
Education providers must adhere to all Commission rules regarding course administration and delivery, but they are permitted to establish policies that are more restrictive than what the Commission requires. For example, the Commission regularly receives calls from brokers inquiring whether an education provider has the authority to require them to remain on camera while taking a course. The answer is yes. Commission rules dictate that education providers are responsible for verifying and recording student attendance in their courses, but the rules do not dictate the method by which education providers address this requirement. Many providers require students to remain on camera during synchronous distance courses as a means of addressing the requirement.
If you have specific questions about your education provider’s policies, contact your education provider.
For more information regarding the Commission’s education programs or rules, contact the Education & Licensing Division at 919.875.3700 or educ@ncrec.gov.
WWREA Disclosure Revised Effective January 1, 2022
The Commission’s Working with Real Estate Agents (WWREA) disclosure form and accompanying Q&A brochure have been revised effective January 1, 2022.
The July 2021 Disclosure Form and Brochure stated that a broker must enter into a written buyer agency agreement “before preparing a written offer or communicating an oral offer.” Both the disclosure and brochure have been revised to match the language of Commission Rule A .0104(a) which requires that a broker representing a buyer enter into a written buyer agency agreement no later than the time one of the parties to the transaction makes an offer to purchase.
A broker may continue to use any remaining copies of the July 2021 versions of the disclosure and brochure without penalty.
While the disclosure form and brochure were revised to more accurately reflect the language in the rule, Commission staff advises that the best practice is for a broker to have a signed buyer agency agreement before preparing a written offer. Commission staff have seen cases in which a broker sent both a buyer agency agreement and a written offer to purchase to a buyer at the same time, but only received back the offer signed by the buyer. In a number of these cases, the broker then failed to comply with the rule by submitting the signed offer to the seller without having the signed buyer agency agreement. A broker who does not have a written agency agreement at the time their buyer makes an offer has violated the rule and risks both disciplinary action and not receiving compensation for their services.
Questions about the disclosure form should be directed to Regulatory Affairs at regulatoryaffairs@ncrec.gov or 919-719-9180.
Emergency Video Notarization Law Expires on December 31, 2021
At the onset of the pandemic, the North Carolina General Assembly passed a law allowing remote notarization and oaths by live video (e.g., Facetime, WebEx, Zoom). After several extensions, the law is set to expire at 12:01 a.m. on December 31, 2021.
The General Assembly has been considering House Bill 776, which would permanently allow remote electronic notarization. However, as of this writing, House Bill 776 has not passed. Therefore, the statutory authorization for remote notarization will expire on December 31, 2021.
If the authorization is not extended beyond 12:01 a.m. on December 31, 2021, then ALL notarial acts, traditional and electronic, will revert to the original law requiring in-person, physical presence by the principal or principals. There remains a chance that the emergency provision or permanent authorization will be revived once the legislature returns in January but we are unable to predict the outcome.
Brokers should be aware of this change when discussing and planning for transactions with customers and clients.
Staff Appearances
Miriam Baer, Executive Director of NC Real Estate Commission, spoke at the Coldwell Banker HPW Midtown Office meeting on December 14.
Disciplinary Actions
ADVANTAGE REALTY GROUP INC (MEBANE) – By Consent, the Commission suspended the broker license of Advantage Realty Group Inc. for a period of 24 months, effective December 15, 2021. The Commission then stayed the suspension in its entirety. Commission staff performed a spot audit on Advantage Realty Group Inc.’s trust accounts, which revealed that monthly reconciliations were not being performed, not all of the accounts were designated “trust” or “escrow”, an overage existed in the security deposit account, and property ledgers and trial balances were not being maintained. A field audit was then performed and the auditor also discovered deficit spending, a shortage, and a failure to prepare a trial balance. Furthermore, the Commission found that Advantage Realty Group Inc.’s owner, who is also a licensed broker, was primarily engaged in trust account dealings while the broker-in-charge had little to no involvement with maintaining the accounts. Advantage Realty Group Inc. has since engaged a consultant who has assisted in bringing its trust accounts into compliance with Commission rules
LINWOOD W BOLLES (CHARLOTTE) – By Consent, the Commission reprimanded Mr. Linwood, effective December 20, 2021. The Commission found that Mr. Linwood, acting as a buyer agent, submitted a written offer on a commercial property on behalf of his buyer-client with a November 30, 2020 closing date. The sellers signed the offer but changed the closing date. Mr. Linwood failed to have his buyer-client initial or otherwise accept the counter-offer, although the parties continued as if the contract were in effect. The buyer began the loan process and, after learning a loan could not be obtained in time for a November 30 close date, notified Mr. Linwood and asked for advice on what he should do. Mr. Linwood failed to advise his client on his right to terminate the contract until after the end of the Examination Period, The seller retained the $3000 earnest money deposit (EMD) after the buyer terminated. Mr. Linwood has personally refunded his client’s EMD.
NATASHA N EYADA AVOMBA (FAYETTVILLE) – By Consent, the Commission reprimanded Ms. Eyada Avomba, effective December 15, 2021. The Commission found that Ms. Eyada Avomba acted as a buyer agent during a showing. She viewed the subject property while her buyer-client was present on video. At the property owner’s request, the MLS listing stated in agent remarks: “Due to Covid & the safe welfare of all parties: please insure gloves, shoe covers and mask must be worn at all times while showing. Gloves and Shoe Covers will be provided at entrance and must be worn along with your personal mask.” The listing agent displayed a sign outside of the subject property as a reminder along with gloves and shoe covers. Video cameras were equipped in the subject property, which showed the Ms. Eyada Avomba in the property with a minor child and without shoe covers or gloves. Ms. Eyada Avomba admitted to initially having her mask in her hand. The listing agent called the Ms. Eyada Avomba and requested that she put on her mask and the owner spoke with the Ms. Eyada Avomba over the intercom system to request compliance. Ms. Eyada Avomba left the subject property with her mask on.
LINDA F HAGOOD (MEBANE) – By Consent, the Commission suspended the broker license of Ms. Hagood for a period of 24 months, effective December 15, 2021. The Commission then stayed the suspension in its entirety. The Commission staff performed a spot audit on Ms. Hagood Firm’s trust accounts, which revealed that monthly reconciliations were not being performed, not all of the accounts were designated “trust” or “escrow”, an overage existed in the security deposit account, and that property ledgers and trial balances were not being maintained. A field audit was then performed and the auditor also discovered deficit spending, a shortage, and a failure to prepare a trial balance. Furthermore, the Commission found that Ms. Hagood was primarily engaged in trust account dealings while the Firm’s broker-in-charge had little to no involvement with maintaining the accounts. Ms. Hagood has since engaged a consultant who has assisted in bringing the Firm’s trust accounts into compliance with Commission rules.
LIVIN’ FREE LLC (FAYETTEVILLE) – Following a hearing, the Commission permanently revoked the firm license of Livin Free LLC (dba Strother Property Management), effective September 1, 2021. The Commission had previously summarily suspended Livin’ Free LLC’s licensee effective May 19, 2021. The Commission found that Livin’ Free LLC failed to maintain its trust accounts and the records pertaining thereto in compliance with Commission rules, and that Livin’ Free LLC’s Chief Financial Officer converted trust monies to his own use, leading to a shortage in both the rent and security deposit trust accounts of at least $435,000. The Commission further found that Livin’ Free LLC charged a number of landlord-clients an unexplained $250 fee and failed to timely refund the fee after promising to do so.
DEBRA GREENSLADE MOONEY (TROUTMAN) – By Consent, the Commission suspended the broker license of Ms. Mooney for a period of 2 months, effective October 15, 2021. The Commission found that Ms. Mooney acted as a buyer agent for a client who was purchasing property long distance. Ms. Mooney failed to disclose to her buyer-client that the agent remarks on the property’s MLS listing noted that a minimum country club membership was required for any owner in the subdivision. Ms. Mooney sent covenants and rules to her client but falsely communicated that a membership was not required. Ms. Mooney further falsely communicated that the available boat slip would accommodate a 30 ft. boat when the Association rules limit boats to 26 ft.
LARRY EDWARD PAGE JR (FAYETTEVILLE) – Following a hearing, the Commission suspended the broker license of Mr. Page for three years, following the previously ordered summary suspension of Mr. Page’s license, effective May 19, 2021. The Commission then stayed the suspension effective October 18, 2021. The Commission found that Mr. Page, as broker-in-charge of a firm doing property management, failed to maintain the firm’s trust accounts and the records pertaining thereto in compliance with Commission rules, and that the firm’s Chief Financial Officer converted trust monies to his own use, leading to a shortage in both the rent and security deposit trust accounts of at least $435,000. The Commission further found that the firm charged a number of landlord-clients an unexplained $250 fee and failed to timely refund the fee after promising to do so.
BONNIE J PRIDE (MEBANE) – By Consent, the Commission suspended the broker license of Ms. Pride for a period of 24 months, effective December 15, 2021. The Commission then stayed the suspension in its entirety. While Ms. Pride was acting as the broker-in-charge and qualifying broker of a Firm, the Commission staff performed a spot audit on Firm’s trust accounts, which revealed that monthly reconciliations were not being performed, not all of the accounts were designated “trust” or “escrow”, an overage existed in the security deposit account, and that property ledgers and trial balances were not being maintained. A field audit was then performed and the auditor also discovered deficit spending, a shortage, and a failure to prepare a trial balance. Furthermore, the Commission found that the Firm’s owner, who is also a licensed broker, was primarily engaged in trust account dealings while Ms. Pride had little to no involvement with maintaining the accounts. Ms. Pride has since engaged a consultant who has assisted in bringing the Firm’s trust accounts into compliance with Commission rules.
LARRY E ROGERS (FRANKLIN) – By Consent, the Commission suspended the broker license of Mr. Rogers for a period of 12 months, effective December 15, 2021. The Commission then stayed the suspension in its entirety. The Commission found that while Mr. Rogers was the broker-in-charge of a Firm, two of the Firm’s brokers had their licenses on “inactive” status from October 19, 2020, through March 5, 2021, and September 30, 2020, through December 8, 2020, respectively. The Commission sent multiple notices to Mr. Rogers regarding the status of the licenses for these brokers. During this time, the two brokers continued to engage in brokerage activity such as signing agency agreements, having their names included in advertised listings, and representing clients in purchase transactions.
JUSTICE TRACE STAMEY (FRANKLIN) – By Consent, the Commission suspended the broker license of Mr. Stamey for a period of 12 months, effective December 15, 2021. The Commission then stayed the suspension in its entirety. The Commission found that Mr. Stamey’s broker license went on “inactive” status, due to his failure to take required Continuing Education, on October 19, 2020. Mr. Stamey’s broker license remained “inactive” until March 5, 2021. The Commission sent multiple notices to Mr. Stamey regarding his broker license status. During this time, Mr. Stamey continued to engage in brokerage activity such as signing agency agreements, having his name included in advertised listings, and representing clients in purchase transactions.
TT & L LLC (FRANKLIN) – By Consent, the Commission suspended the broker license of TT & L LLC for a period of 12 months, effective December 15, 2021. The Commission then stayed the suspension in its entirety. The Commission found that two of TT & L LLC’s brokers had their licenses on “inactive” status from October 19, 2020, through March 5, 2021, and September 30, 2020, through December 8, 2020, respectively. The Commission sent multiple notices to TT & L LLC regarding the status of the licenses for these brokers. During this time, the two brokers continued to engage in brokerage activity such as signing agency agreements, having their names included in advertised listings, and representing clients in purchase transactions.