North Carolina Real Estate License Law

Activities requiring a license
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Terms in this set (87)
Activities requiring a license
Listing
Leasing
Buying
Exchanging
Auctioning
Negotiating
Selling

Referring (if done for compensation)
Exempt activity 1
Business entity selling or leasing real estate owned BY THE BUSINESS ENTITY
Exempt activity 2
Person acting is attorney-in-fact under power of attorney from the owner
Exempt activity 3
Person acting is attorney-at-law who is an active member of the NC State Bar and is acting in a manner of service that constitutes the PRACTICE OF LAW. Strictly limited.
Exempt activity 4
Person acting is a receiver, trustee, guardian, administrator or executor, or is acting under a court order.
Exempt activity 5
A trustee acting under a written trust agreement, deed of trust or will, or the trustee's regular salaried employees.
Exempt activity 6
Certain salaried employees of broker-property managers
Exempt activity 7
Individual owner selling or leasing the owner's own property
Exempt activity 8
A housing authority organized under Chapter 157 of the General Statutes or salaried employee of the housing authority
Activities of Unlicensed Assistants
1. Receive and forward phone calls
2. Submit listings and changes to MLS as completed by licensee
3. Secure copies of public records
4. Place "for sale" signs (also "for rent")
5. Order and supervise minor repairs
6. Courier
7. Provide basic facts (as might appear in MLS or ads)
8. Schedule appointments
9. Communicate with licensees, property owners, prospects, inspectors, etc. to coordinate or confirm appointments
10. Show rental properties managed by the employing broker to prospective tenants
11. Type offers, contracts, and leases from drafts or preprinted forms as completed by licensee
12. Record and deposit earnest money deposits, tenant security deposits, and other trust monies
13. Assist a licensee in assembling documents for closing
14. Compute commission checks for licensees affiliated with a firm or broker; bookkeeping for firm's bank operating accounts
License Category: Broker1. Has satisfied the post-licensing requirements 2. Not required to be supervised by a BIC 3. May elect to operate independently as sole proprietor, in which case such broker must qualify for and designate him/herself as a BICLicense Category: Provisional Broker1. "Entry-level" (salesperson) license status category. 2. Has completed 75-hour pre-licensing course and passed the Commission's license exam. 3. Must be supervised by a BIC 4. Must complete one 30-hour course each year for three years OR a total of 90 hours post-licensing to remove provisional statusLicense Category: Broker-in-ChargeA real estate broker who has been designated as the broker having responsibility for the supervision of real estate provisional brokers engaged in real estate brokerage at a particular real estate office and for other administrative and supervisory duties as the Commission shall prescribe by rule. NOT A SEPARATE LICENSELicense: Limited Nonresident Commercial Commercial BrokerA salesperson residing in a state other than NC who holds an active broker or salesperson license in the state where his or her primary place of real estate business is located who has applied for and obtained this license Must enter into a "notification of broker affiliation" and a "broker cooperation agreement" with a resident NC broker not on provisional status Must be supervised by the NC broker while performing commercial real estate brokerage in NC IS A SEPARATE LICENSELicense: FirmAny corporation, partnership, LLC, association or other business entity (other than sole proprietorship) must obtain this license IS A SEPARATE LICENSELicense Category: Active StatusProvisional broker must be supervised by a BIC to be on active status. A broker who has met all post-licensing criteria to lose provisional status and gain "full" broker status. Maintains annual continuing education requirements and renews license annually.License Category: Inactive StatusA license will become inactive if the licensee fails to complete continuing education. (EXPIRED license occurs with failure to renew by June 30.)NC Real Estate Commission: PurposeTo protect the interests of members of the general public in their dealings with real estate brokersNC Real Estate Commission: Composition9 members Serve 3 year terms 7 members appointed by the governor 2 appointed by the General Assembly (Senate and House leaders) 3 must be licensed brokers 2 must be "public members" not involved in the real estate or appraisal businessesNC Real Estate Commission: Powers1. Licensing real estate brokers and brokerage firms and registering time share projects 2. Establishing and administering pre-licensing education programs for prospective licensees and post-licensing and continuing education programs for licensees 3. Providing education and information relating to the real estate brokerage business for licensees and the general pubic 4. Regulating the business activities of brokers and firms including disciplining licensees who violate license law or commission rules. CANNOT: regulate commissions, salaries, and fees charged by licensees or arbitrate disputesBIC Requirements-Must be on "active" status -Cannot be provisional -Must have two years full-time actual brokerage experience within the previous five years -Must complete a 12-hour BIC course within 120 days after designation.BIC Responsibilities(1) the retention of current license renewal pocket cards by all brokers employed at the office for which he or she is broker-in-charge; the display of licenses at such office in accordance with Rule .0101 of this Section; and assuring that each broker employed at the office has complied with Rules .0503, .0504, and .0506 of this Subchapter; (2) the notification to the Commission of any change of business address or trade name of the firm and the registration of any assumed business name adopted by the firm for its use; (3) the conduct of advertising by or in the name of the firm at such office; (4) the maintenance at such office of the trust or escrow account of the firm and the records pertaining thereto; (5) the retention and maintenance of records relating to transactions conducted by or on behalf of the firm at such office, including those required to be retained pursuant to Rule .0108 of this Section; (6) the supervision of provisional brokers associated with or engaged on behalf of the firm at such office in accordance with the requirements of Rule .0506 of this Subchapter; (7) the supervision of all brokers employed at the office for which he or she is broker-in-charge with respect to adherence to agency agreement and disclosure requirements.Proof of LicensureFirm: retaining the firm's current pocket card at the firm and producing it as proof of firm licensure upon request and maintaining a photocopy of the firm license certificate and pocket card at each branch office thereofChange of Name/AddressA broker must notify the Commission in writing (may include online) within 10 days of each change in personal name, firm name, trade name, residence address and firm address.Reporting Criminal ConvictionsLicensees are required to report to the Commission any criminal convictions for a felony or misdemeanor, any disciplinary action taken against them by any other occupational licensing board, or any restriction, suspension or revocation of a notarial commission within sixty (60) days of the final judgment or order in the case. This reporting requirement is ongoing in nature. Note that Driving While Impaired (DWI) is a misdemeanor and must be reported.License Expiration/Renewal/ReinstatementAll North Carolina real estate licenses expire on June 30 of each year. To maintain a "Current" license, a licensee must pay the license renewal fee between May 15 and June 30. Expired 6 months or less: -No education or exam required. -No application required -$90.00 reinstatement fee may be paid online at www.ncrec.gov ON OR BEFORE December 31st. -INACTIVE "FULL" BROKER -To be active, "Full" Broker must correct all CE deficiencies and submit form REC 2.08. Expired more than 6 months AND up to 2 years: -Successfully complete one (1) Postlicensing course. Course must be completed within 6 months prior to submitting reinstatement application. -OR- Pass National and State sections of license exam. An applicant who holds an active broker license in another state need only to pass the "State" section of the license examination. -Application required. Must be filed with reinstatement fee and criminal background check ON OR BEFORE June 30 of 2nd year. If an applicant chooses to take a Postlicensing course, it must be completed prior to submitting the application. INACTIVE "FULL" BROKER To be active, "Full" Broker must submit form REC 2.08.Continuing EducationBasic Requirements In order to renew your license on active status, you must complete eight (8) hours of continuing education (CE) during each July 1 to June 10 license period. For brokers who DO NOT HAVE BIC Eligible Status, four (4) of the required CE credit hours must be obtained by completing the General Update course prescribed by the Commission. The subject matter of this course will be changed by the Commission each license year. For brokers who HAVE BIC Eligible Status, four (4) of the required CE credit hours must be obtained by completing the Broker-in-Charge Update (BICUP) course each license period. The remaining four (4) CE credit hours may be obtained by taking a Commission approved elective course. Elective courses may address a wide variety of real estate topics. The maximum amount of CE credit awarded for any single course is four (4) hours. Licensees must attend 90% of a CE course and comply with student participating standards in order to receive credit for the course. A person who is issued a broker license (either by examination or reinstatement) does NOT have to take continuing education courses during the license period in which the license is issued. However, they must satisfy the CE requirement prior to the second renewal of the license.Post-licensing EducationYou must complete, within three years following initial licensure "...a postlicensing education program consisting of ninety (90) hours of classroom instruction in subjects determined by the Commission..." [G.S.93A-4(a)1]. The program consists of three thirty-hour courses, at least one of which must be completed in each of the first three years following initial licensure in order to retain eligibility to actively engage in real estate brokerage [Rule 58A.1902].Anniversary DatesYour annual anniversary (deadline) date for postlicensing education differs from other important dates that affect your license. License Renewal: June 30 Annually CE Deadline: June 10 Annually Postlicensing Education Deadline: *1st Deadline, 1 Year After Initial Licensure *2nd Deadline, 2 Years After Initial Licensure *3rd Deadline, 3 Years After Initial Licensure (Refer to wall license certificate for "Initial Licensure Date")Requirements for Agency ContractsAll agency agreements for brokerage services must be in writing and signed by the parties thereto. Agency agreements with property owners (both sellers and lessors) of any type of property to be in writing prior to the broker providing any servicesOral Buyer/Tenant Agency ContractsExpress oral agreements are allowed from the outset of the relationship, but must be reduced to writing no later than the time any party to the transaction wants to extend an offer. Oral agreement needs to address all key aspects of the relationship including agent compensation, authorization for dual agency, etc. Must be in writing from the beginning if it seeks to limit the buyer/tenant's right to work with other agents or binds the client to the agent for any definite time period. ORAL AGREEMENT MUST BE "NON-EXCLUSIVE" AND MUST BE FOR AN INDEFINITE PERIOD AND TERMINABLE BY THE CLIENT AT ANY TIME.Related Practices of Listing Agents and Agents Working with BuyersIf a buyer chooses to work directly with the listing agent or firm, then the listing agent/firm can only work with the buyer as either a seller's agent, and must disclose their seller agency status in writing to the buyer at first substantial contact, or as a dual agent, if authorized by their seller-client and the buyer. A listing company has no other choice when showing its own listings. If the seller has not authorized dual agency in any form, then the listing company may only work with the buyer as a seller's agent.Providing Agency BrochureLicensees must provide prospective buyers and sellers, at "first substantial contact," with a copy of the Working with Real Estate Agents brochure, must review the brochure with them and then reach an agreement regarding their agency relationship. The licensee providing the brochure should also include his/her name and license number on the brochure.Disclosure of Agency Status by Seller's Agent and Buyer's AgentParagraph (f) of Rule A.0104 requires a buyer's agent to disclose his/her agency status to a seller or seller's agent at the "initial contact" with the seller or seller's agent. "Initial contact" will typically occur when a buyer's agent telephones or otherwise contacts the listing firm to schedule a showing. The initial disclosure may be oral, but a written confirmation of the previous oral disclosure must be made (except in auction sale transactions) no later than the time of delivery of an offer to purchase. The written confirmation may be (and usually is) included in the offer to purchase. Paragraph (e) of Rule A.0104, like paragraph (c), requires a seller's agent or subagent in sales transactions to disclose his/her agency status in writing to a prospective buyer at the "first substantial contact" with the buyer. It is recommended that sellers' agents make this required written disclosure using the form provided for this purpose in the Working with Real Estate Agents brochure that must be provided to buyers (as well as to sellers) at first substantial contactFirst Substantial ContactMost frequently, "first substantial contact" will occur at the first "face-to-face" meeting with a prospective buyer. However, the point in time that "first substantial contact" with a prospective buyer occurs will vary depending on the particular situation and may or may not be at the time of the first or initial contact with the prospective buyer. Many first contacts are by telephone and do not involve discussions which reach the level that would require disclosure, although some initial phone contacts, especially those with out-of-town buyers, could reach this level. "First substantial contact" occurs at the point in time when a discussion with a prospective buyer begins to focus on the buyer's specific property needs and desires or on the buyer's financial situation.Disclosure ExceptionsAuction Sales Exemption. Paragraph (g) of Rule A.0104 provides that the provisions of Paragraphs (c), (d) and (e) of the Rule shall not apply to real estate licensees representing sellers in auction sales transactions. Note that in auction sales, the real estate agents involved almost invariably work only as seller's agents and this fact is considered to be self-evident. Thus, there is no need for agents to distribute and review the Working with Real Estate Agents brochure, no need for disclosure of agency status by the seller's agents, and no dual agency. For the unusual situation where a buyer may be represented by an agent in an auction sale transaction, Paragraph (h) of Rule A.0104 provides that such a buyer's agent shall, no later than the time of execution of a written agreement memorializing the buyer's contract to purchase, provide the seller or seller's agent with a written confirmation that he/she represents the buyer.Dual and Designated Agency: DisclosureConsent to Dual Agency: Paragraph (d) of Rule A.0104 requires generally that an agent must obtain the written authority of all parties prior to undertaking to represent those parties as a dual agent. Paragraph (d) of Rule A.0104 currently requires written authority for dual agency from the formation of the relationship except situations where a buyer/tenant is represented by an agent working under an oral agency agreement as permitted by A.0104(a), in which case written authority for dual agency must be obtained no later than the time one of the parties represented by the agent working as a dual agent makes an offer to purchase, sell, rent, lease, or exchange real estate to the other party. Undisclosed Dual Agency: G.S. 93A-6(a)(4) prohibits a real estate agent from "acting for more than one party in a transaction without the knowledge of all parties for whom he or she acts."Dual and Designated Agency: AuthorityA broker or brokerage firm representing one party in a transaction shall not undertake to represent another party in the transaction without the express written authority (i.e., authorization of dual agency) of each party. It is important to note that this requirement applies to all real estate transactions (sales and lease/rentals), not just sales transactions. [In sales transactions, this written authority to act as a dual agent is usually limited to "in-house" sales transactions and is usually included in the listing and buyer agency contracts. If those contracts do not grant such authority, then the agent must have both the seller and buyer consent to the dual agency prior to beginning to act as a dual agent for both parties.]Dual and Designated Agency: Limitations on Agency DutiesIf dual agency is authorized, the language in (a) and (b) defines the broker's role and limits the broker's duty to disclose certain "confidential information" about either principal. ■ The principal acknowledges that the broker must disclose material facts required by law, but waives company liability for not disclosing other fact information of which a broker is aware, so long as the information does not constitute a "material fact."Practicing Dual and Designated Agency"Designated agency" is an optional method of practicing dual agency that may be adopted by a real estate firm if the firm establishes a policy consistent with the Commission's designated agency rules. Designated agency involves appointing or "designating" an individual agent(s) in a firm to represent only the interests of the seller and another individual agent(s) to represent only the interests of the buyer when a firm has an in-house dual agency situation. The principal advantage of the designated agency approach over the "standard" dual agency approach is that each of a firm's clients (seller and buyer) receive fuller representation by their designated agent. In the typical dual agency situation, client advocacy is essentially lost because the dual agent may not seek an advantage for (i.e., "advocate" for) one client to the detriment of the other client. The dual agent must remain completely neutral and impartial at all times. Designated agency returns "advocacy" to the services provided by the respective designated agents and allows them to more fully represent their respective clients.Regulated Practices: AdvertisingA licensee must have the proper authority to advertise. A broker may not advertise or display a "for sale" or "for rent" sign on a property without the written consent of the owner or the owner's authorized agent. A broker may not advertise any brokerage service for another without the consent of his or her broker-in-charge and without including in any advertisement the name of the broker or firm with whom the provisional broker is associated. The rule also prohibits any advertisement by a licensee that indicates an offer to sell, buy, exchange, rent or lease real property is being made by the licensee's principal without the involvement of a broker - i.e., a "blind ad." All advertising by a licensee must indicate that it is the advertisement of a broker or brokerage firm.Regulated Practices: Delivery of Instruments[G.S. 93A‑6(a)(13); Rule A.0106] Among other things, this rule, which implements G.S. 93A-6(a)(13), requires agents to "immediately, but in no event later than five days from the date of execution, deliver to the parties thereto copies of any required written agency agreement, contract, offer, lease, or option affecting real property."Regulated Practices: Retention of RecordsBrokers are required to retain records pertaining to their brokerage transactions for three years from the successful or unsuccessful conclusion of the transaction or the disbursement of all trust monies pertaining to that transaction, whichever occurs later. However, if the broker's agency agreement is terminated prior to the conclusion of the transaction, the broker shall retain transaction records for three years after the agency agreement is terminated or the disbursement of all funds held by or paid to the broker in connection with the transaction, whichever occurs later. Documents that must be retained include sale contracts, leases, offers (even those not accepted), agency contracts, earnest money receipts, trust account records, disclosure documents, closing statements, broker cooperation agreements, broker price opinions and comparative market analyses (including notes and supporting documentation), and any other records relating to a transaction.Regulated Practices: Drafting Legal InstrumentsDrafting legal documents such as deeds, deeds of trust, leases and real estate sales contracts for others is prohibited. Although licensees may "fill in" or "complete" preprinted real estate contract forms which have been drafted by an attorney, they may NOT under any circumstances complete or fill in deed or deed of trust formsRegulated Practices: Disclosure of OffersAn offer must be immediately presented to a seller even if there is a contract pending on the propertyRegulated Practices: Broker Price OpinionsBPO and CMA have the same meanings. A non-provisional broker with a current license on active status may prepare a BPO or CMA for a fee for a variety of persons and entities for a variety of reasons, not just for prospective brokerage clients. A PB CANNOT prepare a BPO or CMA for an existing or potential lienholder or other third party where the BPO is to serve as the basis to determine the value of a property for the purpose of originating a mortgage loan A BPO or CMA may only estimate the probably selling price or probably leasing price of a property, not the value MUST BE IN WRITING Any broker (even provisional) can perform BPO or CMA for no fee.Basic Requirements for Trust Accounts and Handling Trust MoniesDetailed record-keeping, accounting, disbursements requirements are NOT TESTEDDisclosure of CompensationParagraph (a) prohibits a licensee from receiving any form of valuable consideration from a vendor or supplier of goods or services in connection with an expenditure made on behalf of the licensee's principal in a real estate transaction without first obtaining the written consent of the principal. Paragraph (b) prohibits a licensee from receiving any form of valuable consideration for recommending, procuring, or arranging services for a party to a real estate transaction without full and timely disclosure to such party. The party for whom the services are recommended, procured, or arranged does not have to be the agent's principal. "Full" disclosure includes a description of the compensation, incentive, etc. including its value and the identity of the person or party by whom it will or may be paid. The disclosure is "timely" when it is made in sufficient time to aid a reasonable person's decision-making. In a sales transaction, the disclosure may be made orally, but must be confirmed in writing before the principal makes or accepts an offer to buy or sell.Restrictions on compensation disclosure requirement.Paragraph (e) clarifies that a broker does NOT have to disclose to a person who is not his or her principal the compensation the broker expects to receive from his or her principal, and further clarifies that a broker does NOT have to disclose to his principal the compensation the broker expects to receive from the broker's employing broker/firm (i.e., the individual broker's share of the compensation paid to the broker's employing broker/firm).Compensation of Unlicensed Persons for Brokerage ActivitiesG.S. 93A-6(a)(9) authorizes the Commission to take disciplinary action against a licensee for paying any person for acts performed in violation of the License Law. Paragraph (g) of Rule A.0109 simply augments this statutory provision by providing an affirmative statement that a licensee shall not in any manner compensate or share compensation with unlicensed persons or entities for acts performed in North Carolina for which a license is required. [Note that NC brokers may split commissions or pay referral fees to licensees of another state so long as the out-of-state licensee does not provide any brokerage services while physically in North Carolina.] One narrow, limited exception to this restriction is provided in Paragraph (h) - licensees may pay referral fees to travel agents who contact them to book vacation rentals only, so long as well-defined procedures are followed.Commission's Limited Role Regarding Brokerage CompensationG.S 93A-3(c) provides that the Commission shall not make rules or regulations regulating commission, salaries, or fees to be charged by licensees. Paragraph (f) of Rule A.0109 augments that statutory provision by providing that the Commission will not act as a board of arbitration regarding such matters as the rate of commissions, the division of commissions, pay of brokers and similar matters.Nominal compensationCompensation is considered to be "nominal" if it is of insignificant, token or merely symbolic worth. The Commission has cited gifts of a $25 bottle of wine or a $50 dinner gift certificate as being examples of "nominal" compensation paid to a broker that do not require the consent of the broker's principalMisrepresentationCommunicating false informationWillful misrepresentationThis occurs when a licensee who has "actual knowledge" of a material fact deliberately misinformsa buyer, seller, tenant or landlord concerning such factNegligent misrepresentationThis occurs when a licensee unintentionally misinforms a buyer, seller, tenant or landlord concerning a material fact either because the licensee does not have actual knowledge of the fact, because the licensee has incorrect information, or because of a mistake by the licensee.OmissionFailing to provide or disclose information where there is a duty to provide or disclose such information.Willful omissionThis occurs when a licensee has "actual knowledge" of a material fact and a duty to disclose such fact to a buyer, seller, tenant, or landlord, but deliberately fails to disclose such fact.Negligent omissionThis occurs when a licensee does NOT have actual knowledge of a material fact and consequently does not disclose the fact, but a reasonably prudent licensee "should reasonably have known" of such fact.Making False PromisesReal estate brokers are prohibited from "making any false promises of a character likely to influence, persuade or induce." The promise may relate to any matter which might influence, persuade or induce a person to perform some act he/she might not otherwise performPursuing Course of Misrepresentation or False PromisesReal estate brokers are prohibited from pursuing a course of misrepresentation (or making of false promises) through other agents or salespersons or through advertising or other means. Example: In marketing subdivision lots for a developer, a broker regularly advertises that the lots for sale are suitable for residential use when in fact the lots will not pass a soil suitability test for on-site sewage systems. Example:A broker is marketing a new condominium complex which is under construction. Acting with the full knowledge and consent of the broker, the broker's agents regularly inform prospective buyers that units will be available for occupancy on June 1, when in fact the units won't be available until at least September 1.Conflict of InterestUndisclosed Dual Agency Self dealing Representing Another Broker without ConsentProvisional Broker CompensationA provisional broker may NOT accept any compensation for brokerage services from anyone other than his employing broker or brokerage firm. Consequently, a broker may not pay a commission or fee directly to a provisional broker of another broker or firm. Any such payment must be made through the provisional broker's employing broker or firm. [G.S. 93A-6(a)(5)] A broker may NOT pay a commission or valuable consideration to any person for acts or services performed in violation of the License Law. [G.S. 93A-6(a)(9)] This provision flatly prohibits a broker from paying an unlicensed person for acts which require a real estate license.Representing More than One Broker without ConsentG.S. 93A-6(a)(6) prohibits a licensee from "representing or attempting to represent a real estate broker other than the broker by whom he or she is engaged or associated, without the express knowledge and consent of the broker with whom he or she is associated." While brokers may work for or be associated with more than one real estate company at the same time, so long as they have the express consent of all brokers-in-charge, provisional brokers may never engage in brokerage activities for more than one company at a time.Unworthiness and IncompetenceA wide range of conduct may serve as the basis for a finding of unworthiness or incompetence, including conduct which violates other specific provisions of the License Law or Commission rules. Here are a few examples of improper conduct which do not specifically violate another License Law provision but which might support a finding of unworthiness or incompetence. 1. Failure to properly complete (fill in) real estate contracts or to use contract forms which are legally adequate. 2. Failure to diligently perform the services required under listing contracts or property management contracts. 3. Failure to provide accurate closing statements to sellers and buyers or accurate income/expense reports to property ownersImproper, Fraudulent, or Dishonest DealingThe decision as to whether particular conduct constitutes "improper, fraudulent or dishonest dealing" is made by the Real Estate Commission on a case-by-case basis. Therefore, a broad range of conduct might be found objectionable under this provision, depending on the facts in a case. One category of conduct which violates this provision is any breach of the duty to exercise skill, care, and diligence in behalf of a client under the Law of Agency. (Note that other breaches of Agency Law duties constituting either a "misrepresentation or omission," a "conflict of interest" or a "failure to properly account for trust funds" are covered by other specific statutory provisions.) Another category of conduct which violates this provision is any violation of the State Fair Housing Act. This is mentioned separately under the "Discriminatory Practices" headingPracticing LawReal estate licensees may not perform for others any legal service described in G.S. 84-2.1 or any other legal service. Following are several examples of real estate-related legal services which licensees may NOT provide. 1. Drafting legal documents such as deeds, deeds of trust, leases and real estate sales contracts for others. Although licensees may "fill in" or "complete" preprinted real estate contract forms which have been drafted by an attorney, they may NOT under any circumstances complete or fill in deed or deed of trust forms. 2. Abstracting or rendering an opinion on legal title to real property. 3. Providing "legal advice" of any nature to clients and customers, including advice concerning the nature of any interest in real estate or the means of holding title to real estate. (Note: Although providing advice concerning the legal ramifications of a real estate sales contract is prohibited, merely "explaining" the provisions of such a contract is not only acceptable, but highly recommended.)Violation of RulesThe law also has a "catch-all" provision that subjects a licensee to disciplinary action for violating any rule adopted by the Commission.Other Grounds for Disciplinary Action1. Where a licensee has obtained a license by false or fraudulent representation (e.g., falsifying documentation of prelicensing education, failing to disclose prior criminal convictions, etc.). 2. Where a licensee has been convicted of, or pled guilty or no contest to, a number of listed misdemeanors or felonies plus any other offense that shows professional unfitness or involves moral turpitude that would reasonably affect the licensee's performance in the real estate business. 3. Where a broker's unlicensed employee, who is exempt from licensing under G.S. 93A-2(c)(6) (property management exception), has committed an act which, if committed by the broker, would have constituted a violation of G.S. 93A-6(a) for which the broker could be disciplined. 4. Where a licensee who is also licensed as an appraiser, attorney, home inspector, mortgage broker, general contractor, or another licensed profession or occupation has been disciplined for an offense under any law involving fraud, theft, misrepresentation, breach of trust or fiduciary responsibility, or willful or negligent malpractice.. Lastly, be aware that under (b)(3), licensees may be disciplined for violating any of the 15 provisions under subsection (a) when selling, buying, or leasing their own propertyInjunctive ReliefThe Commission also has the power to seek in its own name injunctive relief in superior court to prevent any person (licensees and others) from violating the License Law or Commission rules. A typical example of when the Commission might pursue injunctive relief in the courts is where a person engages in real estate activity without a license or during a period when the person's license is suspended, revoked or expired. [G.S. 93A-6(c)]License SurrenderThe License Law also permits a licensee under certain circumstances to surrender his/her license with the consent of the Commission.Imposition of Restrictions on License or ApprovalIn any contested case in which the Commission takes disciplinary action authorized by any provision of this Chapter, the Commission may also impose reasonable conditions, restrictions, and limitations upon the license, registration, or approval issued to the disciplined person or entity. In any contested case concerning an application for licensure, time share project registration, or school, sponsor, instructor, or course approval, the Commission may impose reasonable conditions, restrictions, and limitations on any license, registration, or approval it may issue as a part of its final decision.Dishonored Payment of License FeesLicense will be immediately EXPIREDWood Frame Construction Methods and TerminologyArchitectural StylesFederal Income Taxation of Home OwnershipBasic Terminology: Homeowner Deductions: Sale of Personal ResidenceResidential Loan QualificationQualifying a buyer using given income/expense ratiosComparative Market AnalysisCIA- Comp is Inferior ADD CSS- Comp is Superior SUBTRACTRegistration of Time Share ProjectsIt shall be unlawful for any person in this State to engage or assume to engage in the business of a time share salesperson without first obtaining a real estate broker license issued by the North Carolina Real Estate Commission under the provisions of Article 1 of this Chapter, and it shall be unlawful for a time share developer to sell or offer to sell a time share located in this State without first obtaining a certificate of registration for the time share project to be offered for sale issued by the North Carolina Real Estate Commission under the provisions of this Article. (b) A person responsible as general partner, corporate officer, joint venturer or sole proprietor who intentionally acts as a time share developer, allowing the offering of sale or the sale of time shares to a purchaser, without first obtaining registration of the time share project under this Article shall be guilty of a Class I felony. (1983, c. 814, s. 1; 1987, c. 516, s. 16.; 2000-140, s. 19(b); 2005-395, s. 19.)Licensure of Time Share SalespeopleMust be licensed It shall be unlawful for any person in this State to engage or assume to engage in the business of a time share salesperson without first obtaining a real estate broker license issued by the North Carolina Real Estate Commission under the provisions of Article 1 of this ChapterTime Share Definitions"Time share" means a right to occupy a unit or any of several units during five or more separated time periods over a period of at least five years, including renewal options, whether or not coupled with a freehold estate or an estate for years in a time share project or a specified portion of a time share project. "Time share" shall also include a vacation license, prepaid hotel reservation, club membership, limited partnership, vacation bond, or a plan or system where the right to use a time share unit or units for periods of time is awarded or apportioned on the basis of points, vouchers, split, divided, or floating use, even if on a competitive basis with other purchasers;Public Offering StatementEach developer shall fully and conspicuously disclose in a public offering statement: (1) The total financial obligation of the purchaser, which shall include the initial purchase price and any additional charges to which the purchaser may be subject; (2) Any person who has or may have the right to alter, amend or add to charges to which the purchaser may be subject and the terms and conditions under which such charges may be imposed; (3) The nature and duration of each agreement between the developer and the person managing the time share program or its facilities; (4) The date of availability of each amenity and facility of the time share program when they are not completed at the time of sale of a time share; (5) The specific term of the time share; (6) The purchaser's right to cancel within five days of execution of the contract and how that right may be exercised under G.S. 93A-45; (7) A statement that under North Carolina law an instrument conveying a time share must be recorded in the Register of Deeds Office to protect that interest; and (8) Any other information which the Commission may by rule require. The public offering statement shall also contain a one page cover containing a summary of the text of the statement. (1983, c. 814, s. 1.)Time Share: Purchaser's Right to Cancel(a) A developer shall, before transfer of a time share and no later than the date of any contract of sale, provide a prospective purchaser with a copy of a public offering statement containing the information required by G.S. 93A-44. The contract of sale is voidable by the purchaser for five days after the execution of the contract. The contract shall conspicuously disclose the purchaser's right to cancel under this subsection and how that right may be exercised. The purchaser may not waive this right of cancellation. Any oral or written declaration or instrument that purports to waive this right of cancellation is void. (b) A purchaser may elect to cancel within the time period set out in subsection (a) by hand delivering or by mailing notice to the developer or the time share salesperson. Cancellation under this section is without penalty and upon receipt of the notice all payments made prior to cancellation must be refunded immediately. (c) Any payments received by a time share developer or time share salesperson in connection with the sale of the time share shall be immediately deposited by the developer or salesperson in a trust or escrow account in a federally insured depository institution or a trust institution authorized to do business in this State and shall remain in such account for 10 days or cancellation by the purchaser, whichever occurs first. Payments held in such trust or escrow accounts shall be deemed to belong to the purchaser and not the developer. In lieu of such escrow requirements, the Commission shall have the authority to accept, in its discretion, alternative financial assurances adequate to protect the purchaser's interest during the contract cancellation period, including but not limited to a surety bond, corporate bond, cash deposit or irrevocable letter of credit in an amount equal to the escrow requirements. (d) If a developer fails to provide a purchaser to whom a time share is transferred with the statement as required by subsection (a), the purchaser, in addition to any rights to damages or other relief, is entitled to receive from the developer an amount equal to ten percent (10%) of the sales price of the time share not to exceed three thousand dollars ($3,000). A receipt signed by the purchaser stating that the purchaser has received the statement required by subsection (a) is prima facie evidence of delivery of the statement. (1983, c. 814, s. 1; 1985, c. 578, s. 4.; 2000-140, s. 19(b); 2001-487, s. 23(j); 2017-25, s. 1(l).)Time Share: Commission's Authority & Disciplinary Action(a) The Commission has power to take disciplinary action. Upon its own motion, or on the verified complaint of any person, the Commission may investigate the actions of any time share salesperson, developer, or project broker of a time share project registered under this Article, or any other person or entity who shall assume to act in such capacity. If the Commission finds probable cause that a time share salesperson, developer, or project broker has violated any of the provisions of this Article, the Commission may hold a hearing on the allegations of misconduct. The Commission has the power to suspend or revoke at any time a real estate license issued to a time share salesperson or project broker, or a certificate of registration of a time share project issued to a developer; or to reprimand or censure such salesperson, developer, or project broker; or to fine such developer in the amount of five hundred dollars ($500.00) for each violation of this Article, if, after a hearing, the Commission adjudges either the salesperson, developer, or project broker to be guilty of: (1) Making any willful or negligent misrepresentation or any willful or negligent omission of material fact about any time share or time share project; (2) Making any false promises of a character likely to influence, persuade, or induce; (3) Pursuing a course of misrepresentation or making of false promises through agents, salespersons, advertising or otherwise; (4) Failing, within a reasonable time, to account for all money received from others in a time share transaction, and failing to remit such monies as may be required in G.S. 93A-45 of this Article; (5) Acting as a time share salesperson or time share developer in a manner as to endanger the interest of the public; (6) Paying a commission, salary, or other valuable consideration to any person for acts or services performed in violation of this Article; (7) Any other conduct which constitutes improper, fraudulent, or dishonest dealing; (8) Performing or undertaking to perform any legal service as set forth in G.S. 84-2.1, or any other acts not specifically set forth in that section; (9) Failing to deposit and maintain in a broker's trust or escrow account as defined by G.S. 93A-6(g) all money received from others in a time share transaction as may be required in G.S. 93A-45 of this Article or failing to place with an independent escrow agent the funds of a time share purchaser when required by G.S. 93A-42(c); (10) Failing to deliver to a purchaser a public offering statement containing the information required by G.S. 93A-44 and any other disclosures that the Commission may by regulation require; (11) Failing to comply with the provisions of Chapter 75 of the General Statutes in the advertising or promotion of time shares for sale, or failing to assure such compliance by persons engaged on behalf of a developer; (12) Failing to comply with the provisions of G.S. 93A-48 in furnishing complete and accurate information to purchasers concerning any exchange program which may be offered to such purchaser; (13) Making any false or fraudulent representation on an application for registration; (14) Violating any rule or regulation promulgated by the Commission; (15) Failing to record or cause to be recorded a time share instrument as required by G.S. 93A-42(c), or failing to provide a purchaser the protection against liens required by G.S. 93A-57(a); or (16) Failing as a time share project broker to exercise reasonable and adequate supervision of the conduct of sales at a project or location by the brokers and salespersons under the time share project broker's control.Time Share: Criminal PenaltyA time share registrar is guilty of a Class I felony if he or she knowingly or recklessly fails to record or cause to be recorded a time share instrument as required by this Article. A person responsible as general partner, corporate officer, joint venturer or sole proprietor of the developer of a time share project is guilty of a Class I felony if the person intentionally allows the offering for sale or the sale of time share to purchasers without first designating a time share registrar.Time Share: Registrar and Project Broker"Time share registrar" means a natural person who is designated by the developer to record or cause time share instruments and lien releases to be recorded and to fulfill the other duties imposed by this Article; (12) "Time share salesperson" means a person who sells or offers to sell on behalf of a developer a time share to a purchaser; Every developer of a registered project shall, by affidavit filed with the Commission, designate a natural person to serve as time share registrar for its registered projects. The registrar shall be responsible for the recordation of time share instruments and the release of liens required by G.S. 93A-42(c) and G.S. 93A-57(a). A developer may, from time to time, change the designated time share registrar by proper filing with the Commission and by otherwise complying with this subsection. No sales or offers to sell shall be made until the registrar is designated for a time share project.Time Share RecordsEach developer shall maintain or cause to be maintained complete records of every time share transaction including records pertaining to the deposit, maintenance, and withdrawal of money required to be held in a trust or escrow account, or as otherwise required by the Commission, under G.S. 93A-45 of this Article. The Commission may inspect these records periodically without prior notice and may also inspect these records whenever the Commission determines that they are pertinent to an investigation of any specific complaint against a registrantReactivating Inactive LicenseThe minimum to reactivate will always be the current year's Update plus one elective (8 hours) and the maximum required to reactivate will be 16 hours (current year's Update course + 3 electives).