New Commission Members Appointed

Two new members have been appointed to the Commission: Melvin “Skip” Alston and Patrick Bell.

Melvin “Skip” Alston was recently appointed to the Commission by Governor Roy Cooper. Mr. Alston is the owner and founder of The Alston Realty Group, Inc. in Greensboro, NC, which has been in continuous operation serving the greater Greensboro area for over 42 years. A recipient of the Order of the Long Leaf Pine, Mr. Alston has served as a leader in his community, across North Carolina and the nation since 1987. He has served in numerous capacities and on several Boards, including serving on the Guilford County Board of Commissioners for over two decades, as President of the North Carolina Association of Black County Officials and for the Board of Directors of the National Association of Black County Officials serving in the capacity of Treasurer. He is also a Diamond-Life Member of the NAACP and has served on their local, state and national levels for over 25 years.

He is the Co-Founder and Co-Chairman of the Board of Directors for Sit In Movement, Inc. a nonprofit corporation formed for the purpose of purchasing and renovating the Historical Woolworth Building in downtown Greensboro into an International Civil Rights Center and Museum, which opened February 1, 2010.

Mr. Alston previously served on the North Carolina Real Estate Commission, appointed in 2003 by the NC House of Representatives and elected Chairman of the Commission in 2007 and again in 2008.

A Durham native, Mr. Alston attended North Carolina Central University, with a major in Business Administration. He has been licensed as a broker since 1982. Mr. Alston, his wife Gwendolyn and their adult sons, DeSean and Ryan, are based in Greensboro.

Patrick Bell was also appointed to the Commission by Governor Cooper. Bell serves as Vice President of Land Acquisitions for the Carolinas at the Kolter Group. He has practiced real estate brokerage and investment in the Carolinas for over 18 years.

Mr. Bell has served in several capacities for his communities, including as a Co-Chair and Executive Director for the North Carolina Commission on State Property, as well as Chairing the Sponsorship Committee for the Charleston, SC Heart Ball. He also has served as a board member for Operation R&R, a nonprofit charity that offers opportunities to “reconnect and reintegrate” to military families.

Mr. Bell has a particular fondness for aviation and received a degree in Aviation Management from the Florida Institute of Technology. In addition, he holds a Commercial Real Estate Designation from the CCIM Institute. Mr. Bell resides in Raleigh.

Case Study: Fair Housing

Information obtained from Fair Housing Project, A Project of Legal Aid of North Carolina

FACTS:  A tenant rents an apartment for a year. Three months after entering the lease, the tenant is involved in a car accident. As a result of the car accident, the tenant uses a wheelchair due to their mobility impairment. Additionally, the tenant’s disability prevents them from safely using the stairs inside their loft apartment.

The tenant asks the landlord to break the lease 6-months early without paying an early termination fee. The landlord informs the tenant they may terminate the lease early; however, they must pay the remaining rent due under the terms of the lease.

ISSUE: Does the Fair Housing Act allow early termination of a lease without having to pay a fee?

ANALYSIS:  Yes. The Fair Housing Act, as amended by Congress in 1988 makes it unlawful to discriminate in the rental of housing, or in the terms, conditions or privileges of housing, because of a disability. A disability is a physical or mental impairment that substantially limits a major life activity, such as walking, seeing, hearing, speaking, learning, working, or caring for oneself.

Discrimination under the Fair Housing Act includes refusing to make reasonable accommodations in rules, polices, practices, or services, when such accommodations may be necessary to afford such a person equal opportunity to use and enjoy housing. In this case, the tenant has a mobility impairment which will affect their usage of the stairs in their apartment. Therefore, the tenant requests a termination of the lease without incurring a penalty or paying the remainder of the rent as their reasonable accommodation. 

For clarity, the Court held in Hughes v. Banfield, 84 Va. Cir. 214 (Cir. Ct. 2012), that allowing a tenant to terminate their lease early without charging fees due to a disability is a common reasonable accommodation. Further, the U.S. Department of Housing and Urban Development has issued numerous guidance documents regarding reasonable accommodations under the Fair Housing Act, including setting out a process for housing providers when considering a reasonable accommodation request. 

These documents also provide housing providers guidance on suggesting alternative accommodations, participation in the interactive process, and the ability of an individual with a disability to refuse to accept any offered alternative(s) due to the alternative(s) not meeting their specific disability need.

In addition, the Joint Statement from HUD and the United States Department of Justice (“DOJ”) on Reasonable Accommodations (“Joint Statement on Reasonable Accommodations”) also makes clear that a reasonable accommodation may be denied if providing the accommodation is not reasonable, such as imposing an undue financial and administrative burden, or it would fundamentally alter the nature of the provider’s operations.

Reasonable accommodations are determined on a case-by-case basis. However, courts and HUD have recognized circumstances where a person with a disability has a right under the Fair Housing Act to terminate a lease early without fee or penalty. Further, housing providers may not require persons with disabilities to pay extra fees or deposits as a condition of receiving a reasonable accommodation.

In conclusion, if the landlord requires the tenant to pay the remainder of the lease, the landlord may be committing housing discrimination and therefore may open themselves up to liability under the Fair Housing Act.

Resources:

N.C.G.S. § 93A-6(a)(8), and 93A-6(a)(10)

License Law and Commission Rules: Rule 58A .1601

Articles: Information for Housing Providers, Landlords, and Property Managers, What Happens Once You Receive a Request for a Reasonable Accommodation or Reasonable Modification

Does the Fair Housing Act Allow Early Termination of a Lease without having to pay a fee?

Did You Know? Brokers must disclose material facts on their own properties

Brokers who buy, sell, or lease properties they own or will own are held to a higher standard than other buyers and property owners. Brokers are required to disclose all material facts to all parties, whether they own the property being sold or are buying a property.

Most sellers of residential properties of one to four units are required to provide the Residential Property and Owners’ Association Disclosure Statement (RPOADS) to all buyers before an offer is made. That includes brokers selling their own properties.  Brokers may choose to select “No Representation” on the RPOADS, but this does not relieve them of the obligation to disclose all material facts.

General Statute 93A-6(1) states “The Commission has power to suspend or revoke at any time a license… or to reprimand or censure any licensee, if, following a hearing, the Commission adjudges the licensee to be guilty of: (1) Making any willful or negligent misrepresentation or any willful or negligent omission of material fact.” General Statute 93A-6(b)(3) adds that, “The Commission may suspend or revoke any license … or reprimand or censure any licensee when… (3) The licensee has violated any of the provisions of G.S. 93A‑6(a) when selling, leasing, or buying the licensee’s own property.

In addition to disclosure of material facts, a broker selling their own residential property may not represent the buyer in the transaction, according to Commission Rule 58A .0104(o). This Rule allows a broker selling their own commercial property to represent the buyer, but only if the broker’s ownership interest is less than 25%, and the buyer consents to the representation after full written disclosure of the broker’s ownership interest.

In any transaction where a broker is the buyer, seller, tenant, or landlord, the broker is encouraged to disclose to the other party in the transaction that the broker is a licensed real estate broker. The Commission recommends this disclosure because having a license may give the broker an advantage during negotiations. The disclosure can be made orally or in writing.

North Carolina Real Estate Commission wins Education Award at ARELLO®!

The Commission won an award for its Pre-Licensing Item Writing Workshops designed by the Education and Licensing Division.

The Commission sought to improve test item creation by developing tools, training, and processes to ensure quality license exam questions.

Members of the Education and Licensing Division started by outlining the subject matter defining minimal competence and, with educational experts, created a detailed content guide.

They then launched a 3-hour Instructor Development Workshop on item writing, accessible through the Commission’s learning management system, (LMS), in partnership with over 150 instructors.

Eight 1-day workshops were held across the state, where participants applied psychometric tools to develop over 400 test items, all of which were validated by professional psychometricians. Watch the acceptance video.

ARELLO® 2024 Fair Housing Awards

The following individuals/jurisdictions won ARELLO® awards for their contributions to Fair Housing.

Prelicensing Category: The CE Shop for their course teaching implicit bias and fair housing.

-The course was created in response to a California law on teaching implicit bias and fair housing. It covers the impact of biases, fair housing laws, and includes interactive role-play as both a consumer and real estate professional. Students learn U.S. fair housing history and tools to identify and address their own biases through role-play scenarios with instant feedback.

Continuing Education Category: Neil Garfinkel and Real Estate Center 4 Success for their class ensuring compliance with fair housing laws.

-The continuing education Fair Housing class, created by real estate attorney Neil Garfinkel, is offered by Real Estate Center 4 Success, REBNY, and the Long Island Board of REALTORS®. Based on Garfinkel’s 15 years of teaching and daily experience counseling licensees, the class raises awareness of Fair Housing laws and compliance strategies. Offered for free, it provides a unique, practical perspective on fair housing.

Consumer Education Category:  Nea Maloo for her course shifting the status quo in affordable housing.

-Nea Maloo, Assistant Professor at Howard University and member of the Maryland Real Estate Commission, developed a course where students designed affordable, decarbonized housing by retrofitting a historic African American church in Ledroit Park, D.C. The course covers high-performance buildings, energy reduction, equity, health, and policy challenges, aiming to shift affordable housing towards sustainability and efficiency.

Miscellaneous Category: Texas Real Estate Commission – Texas Appraiser Licensing and Certification Board for their partnership addressing bias in property valuations.

-The Texas Real Estate Commission and the Texas Appraiser Licensing & Certification Board (TALCB) partnered to address bias in property valuations. Complaints are investigated by the Texas Workforce Commission Civil Rights Division and TALCB, ensuring compliance with appraisal standards. Joint investigations take about six months and aim to prevent housing discrimination through monitoring, education, and outreach. TALCB Director Melissa Tran emphasized the importance of proactively handling these complaints fairly for both consumers and appraisers.

Reminder: NAR® Ethics Requirement is Not an NCREC Requirement

The Commission is aware that National Association of REALTORS® (NAR®) members are required to complete at least 2 hours and 30 minutes of ethics training every three years. The current cycle ends on December 31, 2024.

As the deadline approaches, please keep the following in mind:

• Do not send your Ethics course certificates to the NC Real Estate Commission. If your Ethics course was an approved elective in North Carolina, the Education Provider will submit your completion to us. Once reported, it will appear on your Continuing Education record.
• Not all ethics courses qualify for elective credit in NC. If the course you completed was not an approved elective, it will not appear on your Continuing Education record.
• For questions regarding your NAR® ethics requirements, please contact your local REALTOR® association. The Commission cannot assist with inquiries about your NAR® ethics training.

Reminder: Are you licensed in multiple jurisdictions?

Are you licensed in multiple jurisdictions or have questions about your licensing requirements outside of North Carolina? While it’s commendable that many licensees hold licenses in different areas, the North Carolina Real Estate Commission cannot offer guidance on the following:

1. maintaining active licensure in another jurisdiction,
2. completing another jurisdiction’s continuing education requirements, and/or
3. reporting disciplinary actions from other jurisdictions.

For questions regarding your real estate license in another jurisdiction, please contact the regulatory agency in that jurisdiction for accurate information.

Reminder: You know you should, so go ahead and take your CE!

Don’t wait until the last minute to complete your 8-hour continuing education requirement!

Here’s why it’s important to take your CE courses early:

1. Avoid Last-Minute Delays/Stress: Completing your education ahead of time helps you avoid the pressure and potential scheduling conflicts as the deadline approaches.
2. Ensure Active Licensure: Timely completion of your CE prior to June 10^th and renewing your license by June 30^th of each license year is critical to maintaining an active license. Brokers should understand that a failure to complete CE by June 10^th will make their license inactive. Further, if they fail to renew their license(s) by June 30^th, their license will be expired. Brokers who have an inactive or expired license are prohibited from providing brokerage services on July 1^st.
3. Stay Current: The sooner you complete your courses, the sooner you’ll be up to date on the License Law and Commission rule changes.

If you have not registered for any of your continuing education classes, please do so today.

Do You Wish to Serve as an Officer for Your HOA?

Good news! Serving as an officer of a residential property owners’ association (POA) where you are a property owner may have less restrictions than you think! Per Commission Rule 58A .0118(b), a broker who receives trust money belonging to a property owners’ association in their capacity as an officer in the association in a residential development in which the broker is a property owner and receives no compensation is exempt from Rules 58A .0116 and 58A .0117 regarding handling the funds of others.

While serving your own POA as an officer, you are not required to have a trust account as required under Subsection (a) of this rule; however, you are not permitted to receive any compensation for your service as an officer. If you are compensated, then the rules apply. Of course, a broker is always prohibited from converting trust monies belonging to the POA to their personal use or for purposes other than intended. Moreover, a broker cannot assist others in the conversion of the trust monies. And, all brokers handling HOA funds are advised to keep detailed records.

Reminder: If the broker professionally manages the funds of a property owner association for compensation, they will be subject to the requirements of Rules 58A .0116, .0117, and .0118.

Let’s Talk: Prelicensing Rosters

Every day our specialists in Broker Licensing receive emails and phone calls from broker license applicants who are receiving the following error message on their application, “Course completion confirmation from school not found.” There are essentially two reasons why this error appears on an application. The first reason is that a Course Completion Report (i.e. roster) has not yet been submitted by the education provider, and the second one is that the information submitted on the roster does not match what is on the application.

Every provider and instructor of prelicensing education knows to stress to their students the importance of not waiting to take the broker license examination after passing the prelicensing course. Commission Rule 58H .0207 requires education providers to submit a roster within seven days of the course completion date. Since most providers submit their rosters well within the seven-day requirement, the most common reason the above error appears is because the information on the application does not match what was submitted by the education provider.

A prelicensing roster must contain a student’s full legal first name, full legal last name (no nicknames, suffixes, middle names, middle initials, or punctuation), the last four digits of their Social Security Number (SSN), student contact information, the course completion date, the instructor number, and the number of the education provider. The most common conflict between the roster and the application is the name. The roster should only have the first and last name of the applicant even though the license application requires the full legal name and any suffixes.

If a student calls the education provider complaining of this error, the provider’s first step should be to verify the accuracy of the information they submitted on the roster. There is often a spelling error on the roster or the first and last names were accidentally switched, but the most common error is the student only gave the provider their preferred name and not their true legal name. If there is any error on the roster, the provider should be able to delete the student from it and submit a new one for just this student with their corrected information. If the student cannot be deleted from the roster, then the provider will need to contact the Education Department at educ@ncrec.gov.

If everything on the roster is correct and the student is still receiving this error, then there is a mistake somewhere on their application. They will need to proofread their application and make sure there are no typos and that they did not transpose any numbers. Sometimes there are leading or trailing spaces around the name in the name fields, and the application interprets that as an extra character. The best advice to give applicants is to clear out each name field, hit “backspace” and “delete” several times to eliminate any potential extra spaces, and then manually retype their name (do not let the browser auto-complete any fields). If the error still appears after following all of the above steps, the student should then be directed to call the Commission at 919-875-3700 and ask for “Broker Licensing.”

Finally, as it is required reading for the application and required to be reviewed per the prelicensing syllabus, educators should ensure they spend adequate time reviewing the application booklet, RELINC. Having a better understanding of the application process will also help clear confusion for prelicensing students so they know what to expect when it comes to finally submitting their application and getting ready to test.