NCREC attends DREI Summit in Stone Mountain, GA
2025 is off to a busy start, with our Director and Assistant Director of Education & Licensing, Len Elder and Kizzy Crawford Heath, and Deborah Carpenter, Education and Examination Officer attending the DREI Summit last week in Georgia. Deb Carpenter planned and facilitated the conference, while Kizzy Crawford Heath presented on the Challenges of Mastering the GAPE Principles.
Square Footage Disclosures
Last month, the Commission addressed several cases during its meeting that involved material fact disclosure issues, especially misrepresentations on square footage. NCREC rules do not require square footage to be disclosed by brokers, however, if square footage is disclosed, brokers are responsible for making sure the disclosure is accurate. View this Square Footage Reminder video, and see the Residential Square Footage Guidelines for more information regarding square footage.
Public Comment Period Opens January 15th, 2025, for Proposed Rule Changes
This year’s proposed rule changes have been reviewed by the Commission and are opening for public comment beginning Wednesday, January 15th. The Commission Members would like to encourage licensees and other members of the public to submit comments online via our website, ncrec.gov, and/or to attend the public hearing on Wednesday, February 19th, 2025, in the Anne Kerr Walker Ballroom, Congdon School of Health Sciences Building, High Point University, One N University Pkwy, High Point, NC 27260. Please be aware that oral comments at the public hearing will be limited to three minutes.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting tomorrow is here at the Commission building, 1313 Navaho Drive, Raleigh, NC. A Zoom link will be available at ncrec.gov on the day of the meeting.
Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meeting:
Commission Meeting of December 11, 2024
Pending Cases: The Commission entered into consent agreements to suspend 12 licenses, accepted the permanent voluntary surrender of 1 licensee, accepted the voluntary surrender of 2 licensees, ordered hearings in cases involving 7 licensees, reprimanded 1 licensee, approved the issuance of 1 real estate broker license, approved payment from the Real Estate Education and Recovery Fund in the amount of $45,000, revoked 1 license, and permanently revoked 2 licenses.
License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary actions by another licensing board are separately considered by the Commission. Decisions are based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 15; total approved: 5; total approved with conditions: 3; continued: 4; total deferred 3.
License Examination Results: If you are interested in reviewing the most recent statistics and pass rates regarding the North Carolina broker license examination, click here License Examination Results.
Larry A. Outlaw Excellence in Education Award Rubric: The Director of Education and Licensing presented the Larry A. Outlaw Excellence in Education Award rubric. He noted that the guidelines and nomination instructions go out to educators, are posted on the website, and are distributed to brokers. The nominations will be open on January 6. Upon the motion of Ms. Mallette, the Commission added a “respect for the award criterion,” namely, “that the nominee should demonstrate an understanding of the award’s purpose, values, and prestige, acting in a way that aligns with the award’s intended meaning and not taking the nomination lightly; essentially, showing appreciation for the recognition and behaving in a manner that upholds the award’s reputation.”
Spring Educator’s Conference: The Director of Education and Licensing reported that the Spring Educator’s Conference will be held on March 27, 2025, at the McKimmon Center in Raleigh. The theme is “Raleighwood – How to be an Education Star.” He noted that the Commission Chair typically welcomes attendees and sometimes makes additional remarks. The Executive Director traditionally provides a presentation including statistical information, and an overview of ongoing policy discussions at the Commission. The Director of Regulatory Affairs and the Assistant Director of Regulatory Affairs will also present on regulatory affairs issues. Mr. Lindsey said he would be happy to participate and will discuss with the Director of Education and Licensing presentation ideas.
Community College Education Programs: The Director of Education and Licensing provided a report on the Community College Prelicensing Education Program. The Director of Education and Licensing noted that he and staff worked closely with Dr. Andrew Gardner, Associate Vice President of Workforce Strategies, to work on increasing awareness of careers in real estate and the online prelicensing course available to community colleges to offer to their students. He reported that in 2024, the number of community colleges offering the online prelicensing course increased from ten to thirteen. The Education staff have also participated in Community College career fairs to build the knowledge of real estate careers. The Director of Education and Licensing commended the Assistant Director of Education and Licensing, the Education Officer, and the Consumer Resource Officer on their work on the Community College education programs, and former Commission Chair Jeff Malarney for spearheading the online prelicensing course initiative.
REEA Conference/DREI Summit: The Director of Education and Licensing reported that the national Real Estate Educators Association (REEA) Conference/Distinguished Real Estate Instructor (DREI) Summit will be in Atlanta, Georgia from January 9-11, 2025. The Assistant Director of Education and Licensing, the Education and Examination Officer, and the Director of Education and Licensing will be attending this event.
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending November 30, 2024.
Probable Cause Recommendations: The Assistant Director of Regulatory Affairs and the Commission attorneys presented the probable cause recommendations, followed by proposed settlements. Following a discussion of public and private use of property, the Commission suggested staff to write a Bulletin article about this aspect of disclosure of material facts and present the article to the Commission before it is published. Mr. Black commended deputy legal counsel on his presentation of Case D24-2994. The Assistant Director of Regulatory Affairs introduced the new receptionist for Regulatory Affairs.
Appeals: The Assistant Director of Regulatory Affairs reported that Ms. Joellen Shipman’s case is still pending. She reminded the Commission that Ms. Shipman failed to perfect her appeal in Superior Court. The NC Office of the Attorney General is handling that appeal and is filing a motion to dismiss.
Closed Session: Upon the motion of Ms. O’Connor, the Commission voted to meet in closed session pursuant to N.C.G.S § 143-318.11(a)(5) with the Executive Director, Chief Administrative Officer, and the Assistant Director of Regulatory Affairs to discuss a legal matter. Upon a motion from Mr. Ramseur, the Commission came out of closed session.
Draft Rule Text: The Compliance Manager presented draft rule text on the rule topics presented during its October 2024 meeting with a proposed rulemaking schedule for an effective date of July 1, 2025, noting that this would require a vote from the Commission at its December 11, 2024, meeting. She noted that publication and comment period will begin on January 15, 2025, with a public hearing in High Point, NC on February 19, 2025. Public comments will be received until March 16, 2025, with potential rule adoption at the March 19, 2025, meeting. The Commission made the following decisions regarding the rule text:
| 21 NCAC 58A .0106 – Delivery of Instruments | Upon the motion of Ms. O’Connor, the Commission voted to proceed with rulemaking with paragraph (a) being two sentences: “(a) Except as provided in Paragraph (b) of this Rule, every broker shall deliver a copy of any written agency agreement, contract, offer, lease, rental agreement, option, or other related transaction document to their customer or client within three days of the broker’s receipt of the executed document. A broker shall also deliver a copy of said documents within three days of receipt of a request by the customer or client. |
| 21 NCAC 58A .0302 – License Application and Fee | Mr. Black moved to proceed with rulemaking but with the maximum time in the rule a broker is prohibited from reapplying as described in sections (d) and (e) being reduced from two years to six months. The motion failed with Mr. Aceto, Mr. Alston, Ms. Mallette, Ms. O’Connor, and Mr. Ramseur voting against the motion. Ms. Sebti abstained from the vote. Upon a motion from Mr. Ramsuer, the Commission approved the rule as written. Mr. Lindsey and Mr. Black voted against the motion. Ms. Sebti abstained from the vote. Mr. Bell was not present for either vote. |
| 21 NCAC 58A .0502 – Firm Licensing | Upon the motion of Ms. O’Connor, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58A Section 1800 – .1810 | Upon a motion from Mr. Alston, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58H .0204 – Policies and Procedures Disclosure | Upon a motion from Mr. Black, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58H .0206 – Advertising and Recruitment Activities | Upon a motion from Mr. Alston, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58H .0209 – Expiration and Renewal of Education Provider Certification | Upon the motion of Ms. O’Connor, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58H .0302 – Application and Criteria for Instructor Approval | Upon a motion from Mr. Alston, the Commission voted to proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
| 21 NCAC 58H .0416 – Renewal and Expiration of Course Approval | Upon a motion from Mr. Aceto, the Commission voted to approve the rule text proceed with rulemaking with the text presented. Mr. Bell was not present for the vote. |
Evaluation of Statement of Economic Interest: The Executive Director gave a brief overview of the Statement of Economic Interest for Commission Members. The Executive Director then read into the record of the Commission’s meeting the results of the Evaluation of the Statement of Economic Interest of Commission member Sebti by the North Carolina State Ethics Commission; namely, that the Ethics Commission did not find an actual conflict of interest but did find the potential for a conflict of interest, and that the potential conflict does not prohibit her service on the Commission. The Executive Director concluded that these Statements will be kept on file as required by law.
Report on License Numbers: As of December 1, 2024, there are 124,379 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 78,158
Active Provisional Brokers – 4,799
Brokers-in-Charge – 17,533
BIC Eligible Brokers – 6,588
Inactive Full Brokers – 17,326
Inactive Provisional Brokers – 6,545
Firms– 17,284
Limited Nonresident Commercial Brokers – 267
Next Commission Meeting: The next Commission meeting will be held at 9:00am, January 15, 2025, at the North Carolina Real Estate Commission in Raleigh, NC and is open to the public. It can be viewed via Zoom online video.
NCREC welcomes our 3 newest Commission Members in November and December
Melvin “Skip” Alston of Greensboro, and Patrick H. Bell of Raleigh were ceremonially sworn-in at the Commission’s Business Meeting on November 13, 2024. Melvin ‘Skip” Alston was sworn-in by Judge Lora Cubbage and Patrick H. Bell was sworn-in by Secretary of State Elaine Marshall. Farah Lisa Sebti of Charlotte was sworn-in at the Commission’s Business Meeting on December 11, 2024, by Judge Allegra Collins.
Fraudulent Sellers continue to increase
NCREC continues to receive calls from brokers and consumers about fraudulent sellers attempting to list homes for sale, and in some cases succeeding with the listing and even consummating the sale of the property. Many County Register of Deeds offices now offer a fraud alert or notification service that property owners can sign up for, so that they will be notified if documents are recorded against their property.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting next month is January 15th at the Commission building, 1313 Navaho Drive, Raleigh, NC. A Zoom link will be available at ncrec.gov on the day of the meeting.
Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meeting:
Commission Meeting of November 13, 2024
Pending Cases: The Commission entered into consent agreements to suspend 6 licenses, accepted the permanent voluntary surrender of 3 licensees, accepted the voluntary surrender of 3 licensees, ordered hearings in cases involving 6 licensees, reprimanded 4 licensees, closed cases without action against 1 licensee, approved the issuance of 2 real estate broker license, approved payment from the Real Estate Education and Recovery Fund in the amount of $4,150, and left 12 cases pending.
License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary actions by another licensing board are separately considered by the Commission. Decisions are based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 10; total approved: 2; total approved with conditions: 3; continued: 5.
License Examination Results: If you are interested in reviewing the most recent statistics and pass rates regarding the North Carolina broker license examination, click here License Examination Results.
2025-2026 General and BIC Update Course Topics: The Commission further discussed the possible topics for the 2025-26 General and BIC Update courses first presented bythe Director of Education and Licensing and the Assistant Director of Education and Licensing at the October Commission meeting. Mr. Lindsey asked that the Course materials include a reminder to BICs about the benefits of a Policies and Procedures manual and that BICs and firms can make rules stronger than Commission rules. Mr. Black commended the Education Staff on their work on the course topics. Upon a motion from Mr. Black, the Commission approved the 2025-26 General and BIC Update Course topics with the reminders suggested by Mr. Lindsey.
South Carolina Licensing Agreement: The Director of Education and Licensing reported that following the October Commission meeting, Chair Lindsey and the Chair of the South Carolina Real Estate Commission both signed the revised Licensing Agreement between North Carolina and South Carolina with the removal of all references to the words “reciprocity” and “reciprocal” in the title and throughout the Agreement.
Larry A. Outlaw Excellence in Education Award: The Director of Education and Licensing reported that he will open nominations for the Larry A. Outlaw Excellence in Education Award at the beginning of January and bring the nominations to the Education Committee in February. Mr. Lindsey asked Ms. Mallette to assist Mr. Black and Ms. O’Connor with the selection process. Ms. Mallette requested that the selection criteria be presented to the Commission at the December meeting.
NCREEA: The Director of Education and Licensing reported that NCREEA held their annual meeting virtually on November 12. He introduced Ms. Tracy Frazier and noted that she was named NCREEA’s Educator of the Year during the conference. The Commission congratulated Ms. Frazier.
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending October 31, 2024.
Appeals: The Director of Regulatory Affairs reported that Ms. Joellen Shipman’s case is still pending. She reminded the Commission that Ms. Shipman failed to perfect her appeal in Superior Court. The NC Office of the Attorney General is handling that appeal and is filing a motion to dismiss.
BIC Span of Control Workgroup Recommendations: The Executive Director presented the BIC Span of Control report outlining the recommendations of the Workgroup. The Commission made the following decisions:
| Responsibility for Policies and Procedures [Task Force Recommendation #10] | Upon a motion from Mr. Black, the Commission agreed to move forward with considering amendments to Commission Rule A .0110 to require that firms have a written policies and procedures manual and that brokers-in-charge (BICs) be responsible for training, maintenance, and compliance with the manual, and in addition, to add a requirement for periodic review of the manual and to investigate the feasibility of requiring a BIC to certify their review of the manual in connection with the license renewal process. If this rule is to be adopted, the Commission would provide a framework for the manual that includes topics addressing matters that the Commission has the authority to enforce and cross-references to specific rules and statutes. Mr. Ramseur was not present for the vote. |
| Responsibility for Advertising [Task Force Recommendation #9] | Upon a motion from Ms. O’Connor, the Commission agreed to move forward with considering amendments to Commission Rule A .0110(g) to require an advertising policy in the firm’s policies and procedures manual, with each broker not on provisional status being responsible for their own advertising, the supervising BIC being responsible for training, education, and monitoring. BICs would still be responsible for provisional broker’s advertisements. Mr. Ramseur was not present for the vote. |
| Requirements for a Sole Proprietorship to have a BIC [Task Force Recommendation #1] | Upon a motion from Ms. Mallette, the Commission agreed to move forward with considering amendments to Rule A .0110 to exclude advertising as a trigger for becoming a BIC by deleting subsection (b)(2). The Commission noted that a sole proprietor could still choose to designate themselves as a BIC even if not required to do so by the Rule. Mr. Bell voted against the motion. Mr. Ramseur was not present for the vote. |
| Transaction Experience Requirement [Task Force Recommendation #5] | Upon a motion from Mr. Aceto, the Commission agreed to move forward with considering amendments to the law and/or rules to eliminate a transaction experience requirement. Mr. Bell voted against the motion. Ms. Mallette abstained. Mr. Ramseur was not present for the vote. |
Draft Rule Text: The Compliance Manager presented a memo outlining proposed text for possible rule changes as discussed by the Commission at its October 2024 meeting. She also presented a proposed schedule for the rulemaking process to provide for an effective date of July 1, 2024, noting that this would require a vote from the Commission at its December 2024 meeting. The Compliance Manager reviewed proposed text changes with the understanding that further discussion and deliberation will take place at the December meeting.
Appearances and Speeches: The Executive Director provided a report on recent speeches and reviewed the upcoming speeches and appearances. Mr. Lindsey noted that he and Mr. Aceto had a warm response from the NC REALTORS® and that their listening session was well received. He would have liked to have had a little more time, and he would like to determine whether there is an opportunity to present at the January Leadership meeting in Greensboro. Ms. O’Connor commended the Executive Director and the Director of Regulatory Affairs on their “You be the Judge” presentation. Mr. Alston asked that the city where presentations occur be added to the exhibit on upcoming meetings. Ms. Mallette asked that the Diversity, Equity, and Inclusion Officer’s presentations be added to the exhibit as well. Mr. Alston noted that care should be taken not to have too many members at an event in such a way that it could be construed as a meeting. Ms. Mallette would like more specificity about each event type on the exhibit.
Sewer Easement Request of Beazer Homes: The Executive Director presented a request from Beazer Homes for a temporary sewer easement through the Commission’s entrance down to the lower parking lot, and a permanent expansion of the existing sewer easement to accommodate a larger pipe. She noted that Beazer Homes is putting in a townhome project on St. Albans Driveand the City of Raleigh has told Beazer Homes that they must expand the sewer line in order to put the townhomes in. The Director of Regulatory Affairs stated that staff would like to have an appraiser come in and determine the value of granting the requested access. The Executive Director noted that Beazer Homes said that the project should take about thirty days, but that she believes it could take much longer depending upon weather and other factors. Mr. Bell stated that this easement is likely to happen whether it is with Beazer or later down the line by the City of Raleigh. Mr. Bell recommended that prior to the appraiser coming in, an engineer look at the easement. He recommended that the Commission work with Beazer. The Director of Regulatory Affairs stated that after the appraiser and engineer return their reports, the Commission can meet in closed session to discuss the project. The Chief Administrative Officer noted that Beazer was open to conducting the project when the Commission building was not in high use. Mr. Alston reminded the members that the Commission has the right to say no to the project. Mr. Lindsey asked to give staff general direction on ascertaining an engineer’s report and an appraisal and provide a timeline to the Commission. He would also like staff to consult with Mr. Bell and Mr. Ramseur on what the reports should say. Various members would like to know if Beazer Hones has any other options.
Report on License Numbers: As of November 1, 2024, there are 123,443 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 82,647
Active Provisional Brokers – 4,910
Brokers-in-Charge – 17,451
BIC Eligible Brokers – 6,608
Inactive Full Brokers – 23,360
Inactive Provisional Brokers – 6,262
Firms – 17,175
Limited Nonresident Commercial Brokers – 261
Next Commission Meeting: The next Commission meeting will be held at 9:00am, December 11, 2024, at the North Carolina Real Estate Commission in Raleigh, NC and is open to the public. It can be viewed via Zoom online video.
High School and Community College Outreach
Last month, NCREC attended the Community College System Conference at the Convention Center in Raleigh, NC, and shared resources about careers in real estate. NCREC also attended Southeast Raleigh High School’s Career Expo, to talk to students about careers in real estate. View some of the resources here:
Opportunities with (and without) a Real Estate License
Are you interested in a career in real estate?
Careers in Real Estate: An Inside Look (video)
Do you know what being a fiduciary means?
It refers to being in a relationship of trust. Licensed brokers are in a relationship of trust when handling the property of others, and are required by the law of agency to put their clients’ interests above all others, including the broker’s own interests. Brokers must:
Read more about the duties of licensed brokers and other important information in the Consumer Guide to the North Carolina Real Estate Commission.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The next meeting is tomorrow, November 13th at the Commission building, 1313 Navaho Drive, Raleigh, NC. A Zoom link will be available at ncrec.gov on the day of the meeting.
Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meeting:
Commission Meeting of October 16, 2024
Pending Cases: The Commission entered into consent agreements to suspend 11 licenses, accepted the permanent voluntary surrender of 1 licensee, accepted the voluntary surrender of 1 licensee, authorized injunctive relief involving 1 licensee, ordered hearings in cases involving 11 licensees, closed cases without action against 3 licensees, approved the issuance of 1 real estate broker license, and left 4 cases pending.
License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary actions by another licensing board are separately considered by the Commission. Decisions are based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 16; total approved: 6; total approved with conditions: 7; continued: 2; deferred: 1.
License Examination Results: If you are interested in reviewing the most recent statistics and pass rates regarding the North Carolina broker license examination, click here License Examination Results.
Preliminary Discussion of 2025-2026 General and BIC Update Course Topics: The Director of Education and Licensing and the Assistant Director of Education and Licensing presented possible topics for the 2025-2026 General and BIC Update Courses and suggested that topics be selected at the November or December meeting so that drafting can begin early in 2025 for rollout of a final course on July 1, 2025. The Director of Education and Licensing and the Assistant Director of Education and Licensing reviewed previous topics and sections that the Commission has previously directed be included in every course. Mr. Ramseur asked that the amount of content not exceed the time reasonably necessary to teach it well. Ms. O’Connor concurred with the staff recommendation that basic agency law principles be addressed; Mr. Black noted that it would be helpful also to reiterate the common law of agency and the importance of protecting the consumer. Mr. Lindsey stressed the importance of Fair Housing, particularly in residential sales. The Director of Education and Licensing and the Assistant Director of Education and Licensing asked that the members suggest any other topics they might want to consider.
Update on NCREEA Fall Conference: The Director of Education and Licensing reported that the NCREEA Fall Conference was cancelled due to Hurricane Helene. It has been rescheduled for November 12 in a virtual format. The Director of Education and Licensing noted that registration will be free.
Report on October 8 Educators Townhall: The Assistant Director of Education and Licensing reported on the Educators Townhall that took place on October 8. The Assistant Director of Education and Licensing noted that topics included rulemaking, assisting Hurricane Helene victims, and tips for how instructors can get hired (upon completion of training). The Assistant Director of Education and Licensing stated that the Townhall was very productive and about 68 instructors attended including Commission members O’Connor and Black.
ARELLO Education Video: The Director of Education and Licensing shared the ARELLO Education Award Video recognizing the Commission’s groundbreaking Item Writing Workshops, where Commission staff and approved real estate instructors participated in creating test items for the licensing exam.
Report on NCREC Item Writing Workshop: The Director of Education and Licensing reported that planning for another Item Writing Workshop is underway.
SCREC Request for Revisions to Reciprocal Licensing Agreement: The Commission reviewed the South Carolina Real Estate Commission’s request for revisions to the Reciprocal Licensing Agreement currently in place between the two states. Upon the motion of Ms. O’Connor, the Commission approved the request for revisions, with the condition of removing the word “Reciprocal” from the title of the Licensing Agreement and any mentions of the word “reciprocity” throughout the Agreement. Mr. Lindsey will sign the Agreement with these changes reflected and return to the SCREC for signature and execution.
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending September 30, 2024.
Independent Auditor’s Report: The Commission received and reviewed the FY2023-2024 Independent Auditor’s Report presented by Ms. Newell. Ms. Newell noted that the audit was clean and BRC has issued the highest opinion an auditor can give. Upon the motion of Mr. Lindsey, the Commission approved the audit. The Commission discussed the process of selecting the auditors, including the desirability of having different auditors within or across firms reviewing the Commission’s financial statements.
Appeals: The Director of Regulatory Affairs reported that MV Realty withdrew its appeal and that case has been dismissed with prejudice. The Shipman appeal remains pending; the Attorney General’s office is seeking a dismissal.
BIC Span of Control Workgroup Recommendations: The Executive Director reviewed the BIC Span of Control spreadsheet outlining the recommendations of the Workgroup. She indicated that she would include a full report with the spreadsheet at the November meeting for further discussion and possible decision-making.
Annual Report to the State: The Executive Director provided the Commission the Annual Report to the State, a report required by law that contains NCREC data and is supplied to various agencies in State government. It is available on the Commission’s website.
FY2024-2025 Project Summaries: The Executive Director gave a brief overview of the NCREC Project Summaries. The Executive Director noted that the deliverables marked with a green check have been completed.
DEI Update: The Diversity, Equity, and Inclusion Officer reviewed the DEI work that has been done this calendar year thus far. She noted that three additional schools were added to the HBCU outreach project, resulting in ten schools in total. The Diversity, Equity, and Inclusion Officer noted DEI highlights, including on-campus presence, hosted programming, participation in career fairs, and exposure to students. The Diversity, Equity, and Inclusion Officer discussed additional successes for students in Lunch & Learns and networking events. The Diversity, Equity, and Inclusion Officer concluded her presentation with coverage on how outreach, networking, training, and the DEI website will be expanded in the future. She reported that she is working with Education and Licensing and Regulatory Affairs Divisions to put together a Fair Housing Symposium.
Evaluation of Statements of Economic Interest for Commission Members Alston and Bell: The Executive Director gave a brief overview of the Statement of Economic Interest for Commission Members. The Executive Director then read into the record of the Commission’s meeting the results of the Evaluations of the Statements of Economic Interest of Commission members Alston and Bell by the North Carolina State Ethics Commission; namely, that the Ethics Commission did not find an actual conflict of interest but did find the potential for a conflict of interest, and that the potential conflict does not prohibit their service on the Commission. The Executive Director concluded that these Statements will be kept on file as required by law.
Report on License Numbers: As of October 1, 2024, there are 122,643 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 77,186
Active Provisional Brokers – 4,884
Brokers-in-Charge – 17,350
BIC Eligible Brokers –6,589
Inactive Full Brokers – 17,129
Inactive Provisional Brokers – 6,126
Firms – 17,062
Limited Nonresident Commercial Brokers -256
Next Commission Meeting: The next Commission meeting will be held at 9:00am, November 13, 2024, at the North Carolina Real Estate Commission in Raleigh, NC and is open to the public. It can be viewed via Zoom online video.
Director of Regulatory Affairs Sworn in as ARELLO® President
We congratulate Janet Thoren, the Director of Regulatory Affairs, for being sworn in as President of ARELLO® during their national conference last month in Chicago.
NCREC ARELLO® award
ARELLO® awards are national honors given to states across the country for cutting edge initiatives in the real estate regulatory industry. This year we received the ARELLO® EDUCATION AWARD – Prelicensing Education, for our groundbreaking Item Writing Workshops, where Commission staff and approved real estate instructors participated in creating test items for the licensing exam.
You are invited!
The monthly Real Estate Commission meetings are always open to the public. You are invited to attend in person or online via Zoom. The meeting tomorrow, October 16th is in Duck at The Sanderling, Partridge Room, 1461 Duck Road, Duck, NC 27949. A Zoom link will be available at ncrec.gov on the day of the meeting.
Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meeting:
Commission Meeting of September 18, 2024
Pending Cases: The Commission entered into consent agreements to reprimand 1 licensee, suspend 12 licenses, accepted the permanent voluntary surrender of 5 licenses, ordered hearings in cases involving 5 licensees, and closed cases without action against 7 licensees.
License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary actions by another licensing board are separately considered by the Commission. Decisions are based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 19; total approved: 6; total approved with conditions: 4; continued: 7; withdrawn: 1; deferred: 1.
License Examination Results: If you are interested in reviewing the most recent statistics and pass rates regarding the North Carolina broker license examination, click here License Examination Results.
Spring Educator’s Conference: The Director of Education and Licensing reported that the 2025 Spring Educators Conference will be held at the McKimmon Center in Raleigh on Thursday, March 27. The theme is, “Raleighwood – How to be an Education Star!” and the fee will be $49. The Director of Education and Licensing noted that staff will work to increase the size of the event.
Update Instructor Seminars: The Assistant Director of Education and Licensing noted that the Education staff has conducted six of the 2024-25 Update Instructor Seminars. There are now 254 instructors who have an active update instructor status. There are two more scheduled Update Instructor Seminars, the first on December 3, 2024, and another on April 3, 2025. The Assistant Director of Education and Licensing and Director of Education and Licensing noted that most staff have also taken an in-house version of the Update Course, as have some Commission members.
NCREEA Fall Conference: The Director of Education and Licensing reported that the Fall NCREEA Conference will be in Cherokee, NC. Many of the Education staff will attend NCREEA. Also, certain members of Commission staff have been invited to conduct an Item Writing Workshop and several will also participate in a panel discussion about License Law and Commission rules. [NOTE: This event was subsequently cancelled due to severe weather impacts in Western North Carolina.]
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending August 31, 2024.
Appeals: The Director of Regulatory Affairs reported that Ms. Joellen Shipman’s appeal case is being handled by an attorney from the NC Office of the Attorney General who is filing for a dismissal in light of Ms. Shipman’s failure to perfect their appeal. The appeal of the MV Realty case is also ongoing and is being handled by outside counsel in accordance with an agreement with the Attorney General’s Office.
Rulemaking: The Compliance Manager presented a memo outlining proposed rulemaking with a proposed schedule for those rules. The Director of Regulatory Affairs noted that there may be additional rulemaking tracks this year, including rule changes recommended by the BIC Span of Control Workgroup. The Compliance Manager stated that rulemaking takes 6-9 months to complete; they reviewed the schedule noting that it includes additional time to accommodate changes requested by the Commission, the Rules Review Commission, and the like. Staff compiled 17 recommendations received from Commission members, staff, and members of the public. The Compliance Manager reviewed the following proposed rulemaking topics, and the Commission took the actions indicated below:
| 21 NCAC 58A .0104 – Agency Agreements and Disclosure | Upon the motion of Ms. O’Connor, the Commission directed staff to draft proposed text in accordance with Recommendations 1-3. |
| 21 NCAC 58A .0106 – Delivery of Instruments | Upon the motion of Mr. Ramseur, the Commission directed staff to draft proposed text in accordance with Recommendation 4. |
| 21 NCAC 58A .0112 – Offers and Sales Contracts | Mr. Ramseur moved that the Commission make no change to the existing rule; he later withdrew the motion. Upon the motion of Ms. Mallette, the Commission voted to table discussion on Recommendation 5. |
| 21 NCAC 58A .0302 – License Application and Fee | Upon the motion of Ms. O’Connor, the Commission directed staff to draft bifurcated proposed text in accordance with Recommendation 6, one draft to prohibit an applicant from reapplying for licensure after a set period of time if their application is withdrawn after a Notice of Hearing has been issued, and a separate draft that would place a time limitation on the applicant’s ability to reapply if their application is denied following a hearing. Mr. Black, Mr. Fox, and Mr. Malarney voted against the motion. |
| 21 NCAC 58A .0502 – Firm Licensing | Upon the motion of Mr. Ramseur, the Commission directed staff to draft proposed text in accordance with Recommendation 7. Mr. Aceto voted against the motion. Upon the motion of Mr. Ramseur, the Commission directed staff to draft proposed text in accordance with Recommendation 8, the draft to provide that the rule would apply if a finding of probable cause has been made as to the pending disciplinary matter(s) in question. |
| 21 NCAC 58A .0503 – License Renewal | Upon the motion of Mr. Black, the Commission voted not to pursue Recommendation 9 at this time. Mr. Lindsey and Mr. Bullard voted against the motion. |
| 21 NCAC 58A .0615 – Settlements | Upon the motion of Mr. Ramseur, the Commission voted not to pursue Recommendation 10. Mr. Lindsey and Mr. Fox voted against the motion. |
| 21 NCAC 58H .0401 – Approval of Real Estate Education Courses 21 NCAC 58H .0402 – Continuing Education Elective Course Requitements | Upon the motion of Mr. Bullard, the Commission directed staff to draft proposed text in accordance with Recommendations 11 and 12. |
| 21 NCAC 58H .0206 – Advertising and Recruitment Activities | Upon the motion of Ms. O’Connor, the Commission directed staff to draft proposed text in accordance with Recommendation 13, the duration to be determined. |
| 21 NCAC 58H .0302 – Application and Criteria for Instructor Approval | Upon the motion of Mr. Black, the Commission directed staff to draft proposed text in accordance with Recommendation 14, including existing as well as new instructors. Mr. Ramseur, Ms. Mallette, and Mr. Aceto voted against the motion. |
| 21 NCAC 58A Section 1800 – Limited Non-resident Commercial Licensing | Upon the motion of Mr. Bullard, the Commission directed staff to draft proposed text in accordance with Recommendation 15. |
| 21 NCAC 58A .0511; NC Gen. Stat. § 93B-15.1 – Licensing Persons Licensed in Another Jurisdiction | Upon the motion of Mr. Lindsey, the Commission tabled discussion of Recommendation 16. |
| 21 NCAC 58A .1601 – Fair Housing and 21 NCAC 58A .0120 – Prohibited Acts | Upon the motion of Mr. Lindsey, the Commission directed staff to look at additional ways to strengthen education on, and enforcement of, Fair Housing violations. |
NAR Settlement-Article and Talking Points: The Commission approved the draft article, “Has the World Exploded? The NAR Settlement, Commission Law and Rules” for publication in the next eBulletin.
Executive Director Performance Evaluation Template: The Executive Director presented a draft template of the revised Executive Director performance evaluation which reviewed the Personnel Committee recommended for approval by the full Commission. Ms. O’Connor noted that the Performance Evaluation matches with the Executive Director’s job description. Upon a motion from Mr. Aceto, the Commission adopted the current Executive Director Performance Evaluation to be in place this calendar year. Mr. Aceto asked that the date approved be added to the Performance Evaluation.
Report on Recent Appearances and Speeches: The Executive Director and Director of Regulatory Affairs presented to the Greensboro Regional REALTORS® Association on September 4, 2024. Mr. Aceto and the Director of Regulatory Affairs presented to the Land of the Sky Association of REALTORS® on September 6, 2024. Mr. Aceto commended the Director of Regulatory Affairs on the presentation. Mr. Ramseur commended the presentation of Ms. Moody, Deputy Legal Counsel, to the NC Bar Association the week prior to the Commission meeting.
Report on License Numbers: As of September 1, 2024, there are 121,752 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 76,522
Active Provisional Brokers – 4,792
Brokers-in-Charge – 17,219
BIC Eligible Brokers – 6,599
Inactive Full Brokers – 17,234
Inactive Provisional Brokers – 6,026
Firms – 16,930
Limited Nonresident Commercial Brokers – 248
Next Commission Meeting: The next Commission meeting will be held at 9:00am, October 16, 2024, at the Sanderling Resort in Duck, NC and is open to the public. It can be viewed via Zoom online video.
Key reports, issues, and decisions of interest to licensees and/or the public are reported here from the most recent Commission meeting:
Commission Meeting of August 14, 2024
Pending Cases: The Commission entered into consent agreements to suspend 6 licenses, accepted the permanent voluntary surrender of 2 licenses, ordered hearings in cases involving 30 licensees, closed cases without action against 6 licensees, authorized injunctive relief involving 1 licensee, reprimanded 2 licensees, and left 6 cases pending.
License Applications Involving Character Issues: License applicants who have character issues such as prior criminal convictions or disciplinary actions by another licensing board are separately considered by the Commission. Decisions are based upon criminal background checks, information supplied by the applicant, and in-person interviews.
Total candidates considered: 16; total approved: 6; total approved with conditions: 4; continued: 4; postponed; 2.
License Examination Results: If you are interested in reviewing the most recent statistics and pass rates regarding the North Carolina broker license examination, click here License Examination Results
ARELLO Award for Excellence in Education: The Director of Education and Licensing reported that the 2024 National ARELLO Award for Excellence in Education will be presented to the Commission at the ARELLO Annual meeting in Chicago for the Item-Writing Workshop staff produced.
Education Town Hall: The Assistant Director of Education and Licensing provided a report to the Commission on the Education Town Hall meeting that was held on July 23, 2024, via Zoom teleconferencing. The Assistant Director indicated that the town hall meeting’s purpose is to foster an environment of collaboration with the educational community in NC. Education staff discussed the license renewal numbers and CE deficiencies of brokers and informed the educators of the Item-Writing Workshops on September 6 and October 11 at the Commission’s office. The Assistant Director also indicated that NCREEA has asked Education staff to present at the NCREEA Fall Conference regarding the intersection of the License Law and Commission rules with the proposed NAR settlement. Additionally, Education staff will host an Item-Writing Workshop in conjunction with the NCREEA conference on Tuesday, October 1, 2024.
Financial Report: The Commission received and reviewed the monthly Financial Report presented by the Chief Financial Officer for the period ending July 31, 2024.
Appeals: The Director of Regulatory Affairs reported that nothing has changed with Ms. Joellen Shipman’s appeal since the last Commission meeting and that an attorney from the NC Office of the Attorney General is filing for a dismissal. The appeal of the MV Realty case is also ongoing.
Touring Agreements: The Executive Director reported that staff is seeing an interest in the development of “touring agreements” for buyer agents who are REALTORS®, so that they can remain in compliance with the NAR settlement on its effective date later this month. After an extended discussion on the topic of licensees advertising that their forms are in compliance with the License Law and/or Commission rules, the Commission determined not to pursue requirements related to advertising compliance at this time but rather to monitor whether issues arise that indicate the issue should be revisited.
WWREA Disclosure and Rule A .0104: The Executive Director reported that a Commission member had passed along concerns about broker confusion relating to the differences in the wording of the Working With Real Estate Agents (WWREA) Disclosure that allows oral buyer agency until an offer is signed, versus the requirements of the NAR settlement on most REALTOR® members to have a signed agreement at the time of the first showing. The Executive Director stated that the NAR settlement only affects a segment of the broker population. Changing the Disclosure is possible if the Commission sees fit. Meanwhile, staff is doing a lot of education on the topic. The Director of Education and Licensing stated that to change Commission rules and statutes because of a private settlement may be premature. The settlement has not yet been accepted and the Department of Justice may weigh in. The Executive Director stated that if the broker follows Commission rules, they will not be in compliance with the REALTORS® standards of practice relating to the timing of an agreement with the buyer, but that if they follow the REALTOR standards of practice in terms of timing, they will be in compliance with the Commission’s timing requirements . The Commission discussed broker confusion over the difference between Commission and REALTOR requirements and the need for brokers to follow the Commission rules and to learn how to also be in compliance with the REALTOR® requirements, as it is possible to comply with both.
ARELLO Update: The Executive Director noted that the Director of Regulatory Affairs will be inaugurated as the ARELLO President at the ARELLO Annual Meeting in Chicago. Mr. Ramseur reported that the Legal Exchange in Carmel was well done, and he thought it was interesting to learn how other states are handling the NAR Settlement. The Director of Education and Licensing noted that there is no unity on how each MLS is handling the settlement guidelines. Mr. Ramseur stated that many states are leaning on ARELLO for guidance. Mr. Malarney commended the Director of Education and Licensing on his participation in the event and in recommending the speaker, Lucine Petrosyn, to discuss implicit bias in AI at both the Legal Exchange and the Q3 ARELLO discussion. Ms. O’Connor noted that there was impactful information at the Q3. Mr. Bullard commended the Director of Education and Licensing and Mr. Malarney on their presentation. Mr. Lindsey requested the recordings of the presentation at the Q3 and the Legal Exchange be shared with the full Commission. The Executive Director said that she would ask ARELLO if they would be willing to make a recording available. Mr. Lindsey encouraged the full Commission to attend the ARELLO Annual meeting to take advantage of learning from others around the country.
Report on License Numbers: As of August 1, 2024, there are 120,653 brokers and firms licensed by the Commission, as follows:
Active Full Brokers – 80,035
Active Provisional Brokers – 4,482
Brokers-in-Charge – 17,054
BIC Eligible Brokers – 6,534
Inactive Full Brokers – 23,582
Inactive Provisional Brokers –6,109
Firms – 16,799
Limited Nonresident Commercial Brokers – 237
Next Commission Meeting: The next Commission meeting will be held at 9:00am, September 18, 2024, at the Doubletree Hotel By Hilton, ballroom in Rocky Mount, NC and is open to the public. It can be viewed via Zoom online video.
Commission Member Jeff Malarney and Director of Education & Licensing Len Elder Address Inaugural Legal Exchange
This month, Immediate Past Chair Jeff Malarney served as a panelist alongside other industry experts for a discussion about AI in real estate at both the inaugural ARELLO Legal Exchange, and ARELLO’s Q3 Webinar. The panel, moderated by Director of Education and Licensing Len Elder, addressed the pros and cons of artificial intelligence in the real estate industry.
Do you have questions about filing a complaint?
Consumers and brokers often have questions about the complaint process and what to expect. NCREC has created 3 new videos that explain how to file a complaint and the investigations process. View this video playlist Navigating Complaints on our YouTube channel.
You are invited!
The monthly Real Estate Commission meetings are always open to the public, and you are invited to attend in person or online via Zoom. The meeting next month is September 18th in Rocky Mount at the Doubletree Rocky Mount (Doubletree Ballroom), 651 N. Winstead Avenue, Rocky Mount, NC. A Zoom link will be available at ncrec.gov on the day of the meeting.