Commission Rule 58A .0103 states that brokers must update their home address and firm address within 10 days of any change. Brokers can easily update their home addresses in the Licensee portal. To update your home address:
To update your firm address:
No documentation is required to change your address. No fee is required.
Here’s the situation: You just hit the submit button on the Commission’s website to request activation of your real estate license and/or to affiliate with a broker-in-charge. Once the License Activation and Broker Affiliation Form(Form REC 2.08) is successfully submitted, you will receive an automatically generated email stating that the form has been received by NCREC with a copy of the submitted form attached.
And now, you wait for confirmation that you hold an active license with your desired brokerage company. And you wait an hour… and you wait a day… and then you feel compelled to call or email the Commission to see why your request has not been processed yet. You don’t’ need to do that – at least, not yet!
As soon as the form was successfully submitted, you received an automatic but temporary 30-day license approval/activation. This temporary approval means you can consider yourself actively affiliated with the BIC identified in the form and begin practicing brokerage; however, this affiliation will not show up in your license record until the form is fully processed. Commission staff will process the form no later than the end of that 30-day period.
The Commission receives and processes between 500-1000 activation forms every month, plus other forms and inquiries. So, if you have not received written approval or denial of your request within 25 days, it would now be advisable for you to contact the Commission to see why you have not received any notice. If you receive notice that your request has been denied, you should immediately discontinue brokerage activity and contact the Commission to fully understand the reason for denial.
There is a lot of confusion regarding the management of property owners’ associations. Property owners’ associations are also known as homeowners’, community, condominium or commercial associations; we use the term property owners’ association (POA) here.
Many brokers are aware POA management does not require a license in North Carolina. However, they are less aware of the fact that BROKERS who are managing property owners’ associations must do so in compliance with the North Carolina Real Estate Commission license law and rules.
NC Real Estate Commission Rule A .0118 is specific to the management of property owners’ association trust money and requires the following:
(a) The funds of a property owners’ association, when collected, maintained, disbursed or otherwise controlled by a broker, are trust money and shall be treated as such in the manner required by Rules .0116 and .0117 of this Section. Such trust money shall be deposited into and maintained in a trust or escrow account dedicated exclusively for trust money belonging to a single property owners’ association and shall not be commingled with funds belonging to other property owners’ associations or other persons or parties. A broker who undertakes to act as manager of a property owners’ association or as the custodian of trust money belonging to a property owners’ association shall provide the association with periodic statements that report the balance of association trust money in the broker’s possession or control and account for the trust money the broker has received and disbursed on behalf of the association. Such statements must be made in accordance with the broker’s agreement with the association, but not less frequently than every 90 days.
(b) A broker who receives trust money belonging to a property owners’ association in his or her capacity as an officer of the association in a residential development in which the broker is a property owner and for which the broker receives no compensation is exempt from the requirements of Rules .0116 and .0117 of this Section. However, the broker shall not convert trust money belonging to the association to his or her own use, apply such money or property to a purpose other than that for which it was intended or permit or assist any other person in the conversion or misapplication of such money or property.
Periodic Statements
Brokers must account for all trust money they receive and disburse. In property owner association management, a periodic statement is used. Although no specific form or format is required, the periodic statement must set forth in a clear and concise fashion a complete accounting of all funds received and paid out by the broker along with a balance of the trust money in the broker’s control. The periodic statements must be provided by the broker to the property owners’ association in accordance with the property management agreement, but in no event less frequently than every ninety (90) days. The property owners’ association balance sheet and income statement of the funds in the broker’s control is sufficient to account to the association as periodic statements.
Exception
The only exception as found under Rule A.0118 (b) is limited to a broker who is:
Other rules to be aware of in relation to managing POAs are Rules A .0117 and A .0104. Rule A .0117 requires that brokers retain certain records. In addition to bank statements, cancelled checks, and a journal or check register, brokers must maintain the following records specific to property owner associations:
• For deposits of funds belonging to or collected on behalf of a property owner association, the deposit ticket or other evidence or memoranda of deposits or payments into the account whether by transfer between accounts, wire payments, or payments by electronic means. The documentation must identify the property or property interest for which the payment is made, the property or interest owner, the remitter, and the purpose of the deposit.
• A payment record for each property or interest for which funds are collected and deposited into a property owner association trust account. Payment records shall identify the amount, date, remitter and purpose of payments received, the amount and nature of the obligation for which payments are made, and the amount of any balance due or delinquency.
• Covenants, bylaws, meeting minutes, management agreements and periodic statements relating to the management of property owner associations, as well as copies of invoices, bills and contracts paid from the trust account and any other documents not otherwise described that are necessary to verify and explain recorded entries.
Licensees who undertake to manage a property owners’ association must enter into an agency agreement in accordance with Commission Rule A.0104 which reads in part, “…every agreement for services connected with the management of a property owners association shall be in writing and signed by the parties thereto.” All the other requirements for agency agreements under rule A.0104 also apply to property owners’ association agreements, such as the requirement to have a definite ending period and including anti-discrimination language within the agreement.
Common questions we receive:
Can the association’s board of directors have access to the account? No, the trust account must be in the name of the firm with the POA identified. It must be custodial; board members or people with an interest in the funds may not be signatories on the account. You can set up the bank account in way that they can see the funds but not actually have the ability to make changes to the account.
Can the money be in a money market account or certificate of deposit (CD)? Possibly. It must be a demand account. If you have a reserve account that meets the balance requirements for a money market, then it is likely permissible. A CD may be allowed if it meets these criteria:
DARREN C BATES (WAXHAW) – By Consent, the Commission suspended the broker license of Bates for a period of 9 months, effective February 14, 2025. The Commission found that Bates failed to report three criminal convictions to the Commission: Driving While Impaired in 2011; Hit and Run in 2018; and Violation of a 50B Domestic Violence Restraining Order on January 16, 2024. Bates also failed to fully respond to a Letter of Inquiry from the Commission within 14 days of receipt.
TIMOTHY M BEACH (CHARLOTTE) – By Consent, the Commission suspended the broker license of Beach for a period of 24 months, effective January 16, 2025. The Commission found that Beach brokered several residential transactions without properly executed listing agreements and without properly providing and reviewing the Working With Real Estate Agents Disclosure form. As a result, on at least one occasion, Beach was paid directly at closing, instead of through the firm.
BEYCOME BROKERAGE REALTY LLC (NORTH CAROLINA) – By Consent, the Commission suspended the firm license of Beycome Brokerage Realty LLC for a period of 12 months, effective February 28, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Beycome Brokerage Realty LLC advertised the square footage of a property for sale, and its affiliated brokers failed to either use reasonable skill, care, or diligence to ensure that the square footage of the structure was accurately measured, failed to confirm that the method used in measuring was reliable and up to date, and failed to hire a professional with greater expertise in measuring square footage to calculate the square footage measurements. Beycome did not respond to a Letter of Inquiry from the Commission within 14 days of receipt.
PAULA A DODGE (LENOIR) – By Consent, the Commission suspended the broker license of Dodge for a period of 12 months, effective February 15, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Dodge, on behalf of her landlord who was also her former client, collected $2,100 in rent from another tenant. Dodge did not expect a fee and deposited the cash payment in her personal bank account and sent a check to the landlord for the rent funds. The check was returned for insufficient funds and Dodge failed to repay the funds owed.
ANTHONY J GIGLIO (NORTH CAROLINA) – By Consent, the Commission suspended the broker license of Giglio for a period of 9 months, effective February 15, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Giglio submitted a firm application and reported a pending disciplinary action by the Colorado Division of Real Estate. The NC firm application was placed on hold pending resolution of that action. Giglio failed to timely report that he had entered into a Consent Order in Colorado in October 2023, which included seven complaints and resulted in a $15,000 fine and a three-month active suspension as well as additional required coursework. Giglio also failed to timely report a February 2024, Wisconsin disciplinary action which resulted in a 30-day suspension among other requirements.
KRISTOFF K JONES (RALEIGH) – By Consent, the Commission suspended the broker license of Jones for a period of 12 months, effective February 2, 2025. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Jones, acting as buyer agent for their buyer-client, negotiated a $750 credit in lieu of repairs. Jones failed to prepare a revised DDRA to reduce the agreement to writing resulting in the seller refusing to pay. Jones expressed to the listing agent and to the buyer-client that he would pay the $750 to the buyer due to his failure to get a written agreement. Jones failed to make the payment despite promising to do so. During the inquiry into the complaint, Jones failed to timely respond to multiple Letters of Inquiry from Commission staff.
SABRINA R MCMILLAN (RALEIGH) – Following a hearing, the Commission permanently revoked the broker license of McMillan effective January 2, 2025. The Commission found that McMillan performed property management services through an unlicensed entity and without being a designated Broker-in-Charge, failed to remit rental proceeds and a tenant security deposit to her landlord-client, failed to respond to multiple Letters of Inquiry, failed to provide requested documents to Commission representatives, and failed to maintain a current address on file with the Commission.
LORI A PRUSSOCK (JACKSONVILLE) – By Consent, the Commission permanently revoked the real estate license of Prussock, effective February 19, 2025. The Commission found that Prussock failed to properly manage her client’s property management trust accounts, resulting in shortages of over $300,000.00.
JENNIFER H SCOTT (NEW BERN) – By Consent, the Commission suspended the broker license of Scott for a period of 12 months, effective January 1, 2025. The Commission then stayed the suspension following a one-month active period upon certain conditions. The Commission found that Scott gave her buyer clients the access code to the lock box on a property and allowed her clients to enter and tour that property without her present. In addition, Scott failed to provide and review the Working with Real Estate Agents Disclosure at first substantial contact.
LORY W WELLS (LEXINGTON) – By Consent, the Commission reprimanded Wells effective March 3, 2025. The Commission found that Wells was the designated broker-in-charge when the qualifying broker conducted an auction for the sale of the subject property. The highest bidders of the auction paid a $45,000 earnest money deposit to the QB when the contract was executed. The sellers gave notice that the contract was unenforceable and refused to sell, and after the closing date passed, the buyers requested the return of their earnest money deposit. The sellers acknowledged the termination was proper and instructed QB to return the earnest money deposit to the buyers, but she failed to do so. The QB did not give the earnest money deposit to Wells to be held in trust and instead, converted the money to her own personal use. Wells failed to properly maintain the trust account of the firm by not accounting for the earnest money deposit collected by the QB. Wells failed to provide trust account and transaction documents.
CLARENCE E WILLIAMS (CLEMMONS) – Following a hearing, the Commission permanently revoked the broker license of Williams effective January 2, 2025. The Commission found that Williams made false promises to broker clients to induce them into investing in investment opportunities, performed brokerage services through an unlicensed entity and without being a designated Broker-in-Charge, performed brokerage services while on inactive status, failed to respond to multiple Letters of Inquiry, failed to provide requested documents to Commission representatives, and failed to maintain a current address on file with the Commission.