Real estate licensing in North Carolina |
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For an overview of this system and the various license categories, see pages 3-4. License Application Process and Qualifi cation Requirements Th e North Carolina Real Estate Commission licenses individuals and business entities as real estate brokers. Th is booklet is designed to guide all prospective applicants for individual real estate broker licensees through the license application process. If you are interested in applying for an individual real estate license, you should read this booklet carefully, especially pages 3-9, and follow all instructions precisely. Use the detailed Contents page to locate specifi c information you need. If you are interested in obtaining a fi rm broker license for a business entity, see the Commission’s web site, www.ncrec.state.nc.us, for an application and instructions. The License Examination Pages 9-20 of this booklet contain essential information for all persons required to take the license examination. Th e booklet provides general information about the examination, examination fee, scheduling an examination, taking the examination and examination rules and procedures. New Licensee Information Information about license issuance and activation, postlicensing education, continuing education and license re-newal begins on page 20. Licensing by Reciprocity and License Reinstatement Information about licensure by reciprocity (exempting examination based on reciprocal licensing arrangements with certain states) and license reinstatement begins on page 22. North Carolina Real Estate License Law and Commission Rules Th e North Carolina Real Estate License Law, Real Estate Commission Rules, Trust Account Guidelines and Li-cense Law and Rule Comments may be found at the Commission’s website, www.ncrec.state.nc.us, as well as in the booklet North Carolina Real Estate License Law and Commission Rules, which can be ordered online at the Commis-sion’s website. Contents Page Use the Contents page to fi nd information on specifi c topics. 5,000 copies of this public document were printed at a cost of $.XXX per copy. ©2008, 2007, 2006, 2005, 2004, 2003, 2002, 2001, 2000, 1998, 1997, 1996, 1995, 1994, 1993, 1992, 1991, 1990, 1989, 1988, 1987, 1986, 1985, 1984, 1983 North Carolina Real Estate Commission 1313 Navaho Drive, P.O. Box 17100 Raleigh, North Carolina 27619 Phone 919/875-3700 Real Estate Licensing in North Carolina 1 Contents INTRODUCTION .........................................................................................................................3 Who Is Required to Have a Real Estate License in North Carolina ....................................................................3 License Categories ............................................................................................................................................3 LICENSE QUALIFICATION REQUIREMENTS ..........................................................................4 License Qualifi cation Options .............................................................................................................................4 Licensing Nonresidents by Examination .............................................................................................................5 Consideration of Applicant’s Character ...............................................................................................................6 APPLICATION PROCESS ..........................................................................................................7 Obtaining a License by Examination ...................................................................................................................7 Timeframe for Obtaining a License by Examination ...........................................................................................7 Completing the Application Form ........................................................................................................................7 Application Enclosures .......................................................................................................................................8 Criminal Record Report Requirement .................................................................................................................9 Application Filing ..............................................................................................................................................9 Updating Application Information .......................................................................................................................9 LICENSE EXAMINATION – GENERAL INFORMATION .............................................................9 How Examination is Administered .......................................................................................................................9 Preparing for the Examination ..........................................................................................................................10 Examination Question Formats .........................................................................................................................10 Examination Topics ..........................................................................................................................................10 Examination Forms ..........................................................................................................................................12 Number and Value of Questions .......................................................................................................................13 Helpful Hints .....................................................................................................................................................13 SCHEDULING AN EXAMINATION ............................................................................................13 Applying for Examination .................................................................................................................................13 Notice of Examination Eligibility Valid for 180 Days ..........................................................................................13 Examination Fee ..............................................................................................................................................14 Examination Center Locations ..........................................................................................................................14 Making an Examination Appointment ...............................................................................................................14 Special Examination Accommodations .............................................................................................................15 TAKING THE LICENSE EXAMINATION ..................................................................................15 Reporting to Examination Center ......................................................................................................................15 Exam Center Addresses and Directions ...........................................................................................................16 Required Identifi cation and Signature ...............................................................................................................17 Items to Bring and Prohibited Items ..................................................................................................................17 Examination Rules ...........................................................................................................................................18 Check-in Procedures and Examination Tutorial ................................................................................................18 Examination Time ...........................................................................................................................................18 Immediate Examination Results .......................................................................................................................18 Examination Review by Failing Applicants ........................................................................................................18 License Issuance for Passing Applicants .........................................................................................................19 OTHER EXAMINATION INFORMATION ..................................................................................19 Postponing an Examination Appointment .........................................................................................................19 Excused Absences ...........................................................................................................................................19 Forfeiture of Fees .............................................................................................................................................19 Expedited Reapplication and Exam Rescheduling for Previously Scheduled Applicants for Examination .......20 Applicants Who Must Refi le an Application with the Commission ....................................................................20 2 Real Estate Licensing in North Carolina Emergency Exam Center Closing .....................................................................................................................20 NEW LICENSEE INFORMATION .............................................................................................20 Issuance of Licenses .......................................................................................................................................20 Initial Licenses Are Inactive Provisional Broker Licenses .................................................................................21 Activation of Initial Inactive Provisional Broker License ...................................................................................21 Requirement for Active Status and Notifi cation of Changes in Employment or Address ..................................21 License Renewal ..............................................................................................................................................21 Postlicensing Education for Provisional Brokers ...............................................................................................21 Postlicensing Course Waiver Based on “Equivalent Education/Experience” ....................................................22 Continuing Education .......................................................................................................................................22 LICENSING BY RECIPROCITY ...............................................................................................22 Basic Qualifi cation Requirements for Licensure by Reciprocity ........................................................................22 Reciprocal Jurisdictions ...................................................................................................................................23 License Equivalency ........................................................................................................................................23 Application Requirements for Reciprocal License ............................................................................................23 Procedures and License Issuance – Reciprocal Licensing ...............................................................................24 Postlicensing Education and Continuing Education Requirements .................................................................24 Conversion of Reciprocal Nonresident License to Resident License ...............................................................24 North Carolina Licensees Wanting a Reciprocal License in Another Jurisdiction .............................................24 LICENSE REINSTATEMENT ....................................................................................................24 License Expired Six Months Or Less ................................................................................................................24 License Expired More Than Six Months ...........................................................................................................25 Demonstrating Current Knowledge of Real Estate Brokerage .........................................................................25 License Expired, Revoked or Surrendered For More Than Six Months But Not More Than Two Years ...........25 License Expired, Revoked or Surrendered For More Than Two Years But Not More Than Five Years ............25 License Expired, Revoked or Surrendered For More Than Five Years ............................................................25 Applicant with Extraordinary Education and/or Experience Qualifi cations ........................................................25 Other Factors Not Considered ..........................................................................................................................26 Possible Disciplinary Action for Unlawful Activity ..............................................................................................26 Status of Reinstated License ............................................................................................................................26 Real Estate Licensing in North Carolina 3 INTRODUCTION This booklet has been prepared and published by the North Carolina Real Estate Commission for the purpose of providing information to interested persons regarding the requirements and procedures for obtaining North Carolina real estate licenses. Although every eff ort has been made to consolidate into this single publication basic information concerning the major areas of interest to prospective real estate licensees, many questions may have been left unanswered. Th erefore, persons who desire more detailed information regarding specifi c points of concern are advised to contact the Licensing Section at the Real Estate Commission Offi ce. This publication is required reading for anyone interested in obtaining a North Carolina real estate license. READ IT CAREFULLY! Additional copies of this booklet are available without charge from the North Carolina Real Estate Commission. Who Is Required to Have a Real Estate License in North Carolina In general, any person or business entity who transacts real estate business (including time share transactions) for compensation as an agent for another must fi rst obtain a real estate license issued by the North Carolina Real Estate Commission. Th e Real Estate Commission, an indepen-dent government agency of the State of North Carolina, is responsible for licensing and regulating all real estate agents in this state. Operating as a real estate agent in North Caro-lina without the proper license is a criminal off ense. For information concerning North Carolina real estate licenses and the laws and rules governing real estate brokerage prac-tice in North Carolina, go to the Commission’s website at www.ncrec.state.nc.us. License Categories Eff ective April 1, 2006, North Carolina began issuing only broker licenses and eliminated the separate salesper-son license. Existing salesperson licenses were converted to broker licenses. Although there is only one “type” of license, a broker license, there are several license categories as de-scribed below: PROVISIONAL BROKER – Th is is the entry-level li-cense category. Upon satisfying all the license qualifi cation requirements (including, for most applicants, passing the li-cense examination) most license applicants are initially issued a “provisional broker” license, which is technically a broker license on “provisional” status. A provisional broker may generally perform the same acts as a broker so long as he or she is supervised by a broker who is a designated broker-in-charge, but provisional brokers cannot operate independent-ly. Once licensed, a provisional broker must complete, within prescribed time periods, a postlicensing education program in order to terminate the “provisional” status of his or her license and to avoid license inactivation and possible eventual cancel-lation. [NOTE: Some applicants are eligible to directly ob-tain a broker license that is NOT on “provisional” status – see the section on “License Qualifi cation Requirements.”] BROKER – A provisional broker who satisfi es the postlicensing education requirements to terminate the “pro-visional” status of his or her license becomes a “broker” who is authorized to engage in brokerage in one of the two following capacities: (1) Work for another broker who is a broker-in-charge or work for a licensed brokerage fi rm. (A broker requires less supervision by a broker-in-charge than a provisional broker.) (2) Operate independently as a “sole proprietor;” how-ever, if the broker-sole proprietor will engage in activities requiring him or her to also be designated as a broker-in-charge (described below under “BROKER-IN-CHARGE), then he or she must also qualify as a broker-in-charge. (IMPORTANT NOTE: Th is means that an independent broker-sole proprietor must also be a broker-in-charge to law-fully engage in most brokerage activities.) BROKER-IN-CHARGE – Each real estate offi ce must have a broker-in-charge designated with the Real Estate Commission for the offi ce and each broker-sole proprietor who will handle trust funds requiring deposit in a trust ac-count, have other licensees affi liated with him or her, or advertise or promote his or her services in any manner (in-cluding distribution of business cards or listing property for sale or lease) must also fi rst designate himself or herself as a broker-in-charge. To qualify to be a broker-in-charge, a broker must have two (2) years full-time or part-time equiva-lent brokerage experience in any state within the previous fi ve (5) years, or be found by the Commission to possess equiva-lent qualifi cations. [See the Commission’s website at www. ncrec.state.nc.us for more information on broker-in-charge requirements and responsibilities.] FIRM – A business entity (corporation, limited liability company, partnership, etc.) must hold a real estate “fi rm” license in order to engage in real estate brokerage activities. A fi rm license is a broker license issued to a business entity. Sole proprietorships are exempt from the fi rm licensing re-quirement. A fi rm license application and instructions may be obtained by accessing the Commission’s website at www. ncrec.state.nc.us. LIMITED NONRESIDENT COMMERCIAL BRO-KER – A limited nonresidential commercial broker license may be issued to a broker or salesperson residing in a state other than North Carolina who holds an active real estate broker or salesperson license in the state where his/her prima-ry place of real estate business is located. A person holding a limited nonresident commercial broker license may engage in transactions for compensation involving “commercial real 4 Real Estate Licensing in North Carolina LICENSE QUALIFICATION REQUIREMENTS To qualify for a real estate broker license, an applicant must: (1) Be at least 18 years of age; (2) Be a United States citizen, a non-citizen national or a qualifi ed alien under federal law; (3) Have a social security number; (4) Satisfy one of the License Qualifi cation Options listed below; (5) Pass the real estate license examination (Ex-ceptions: Persons eligible for licensure by reciprocity and some license reinstatement applicants); and (6) Satisfy the Commission that they possess the requisite character to be entitled to licensure. License Qualifi cation Options Applicants applying under license qualifi cation options 1-4 below must also pass the North Carolina real estate license examination. Applicants qualifying under license qualifi cation option 5 for a license by “reciprocity” are not required to take North Carolina’s real estate license examination. All applicants must submit a properly completed “Application for Real Estate License” form and required enclosures in addition to the required documentation listed below, and all applicants must demonstrate to the satisfaction of the Real Estate Commission that they possess satisfactory moral character (see “Application Process” in this booklet). An applicant (resident or nonresident) may qualify for the North Carolina real estate license examination by completing (passing), within three years pri-or to license application, a Commission-approved 75-classroom hour Broker Prelicense Course in North Carolina. [Th is course is not available online, on computer disk, by correspondence or by any other distance education meth-od.] Required Documentation: Certifi cate of Course Completion (original) issued by the school for submission to the Commission. DO NOT submit a transcript, a grade report or a certifi cate provided by the school for display purposes. An applicant (resident or nonresident) may qualify for the North Carolina real estate license examination based on holding a current real estate license in another state that has been on active status within one year prior to application. [See exceptions for Florida and Texas residents on page 6.] Upon passing the examination and demonstrating satisfactory moral character, a person licensed as a salesperson in another state will be issued a North Carolina provisional broker license and a person licensed as a broker in another state will be issued a North Carolina broker license that is NOT on provisional status. Required Documentation: Certifi cation of License History (original with raised or attached agency seal) from the licensing agency in the state in which the applicant is licensed. Th e certifi cation must have been issued within the previous six months and must indicate the license history and any disciplinary action taken or complaints pending against the applicant. A copy of the applicant’s real estate license certifi cate or pocket identifi cation card or a license history downloaded from a licensing agency website is not acceptable. Proof of education is not required. An applicant (resident or nonresident) seeking waiver of the 75-hour North Carolina broker prelicense course based on completion of salesperson prelicense education in another state may qualify to take the North Carolina real estate license examination if the completed prelicense education in the other state: (1) consisted of at least 75 classroom (or legitimately equivalent) hours of instruc-tion [no partial credit granted]; (2) was completed within three years prior to estate” in North Carolina, but must enter into a declaration of affi liation and a brokerage cooperation agreement with a resident North Carolina broker and must be supervised by the North Carolina broker while performing commercial real estate brokerage services in North Carolina. An appli-cation form and instructions may be obtained by accessing the Commission’s website at www.ncrec.state.nc.us. r o Pc o Option #1 Completion of the Prescribed 75-Classroom Hour North Carolina Broker Prelicense Course r a[ e Option #2 Licensure as a Real Estate Salesperson or Broker in Another State Cel i ct Option #3 Completion in Another State of a Real Estate Salesperson Prelicense Course of at Least 75 Classroom Hours Real Estate Licensing in North Carolina 5 Licensing Nonresidents by Examination Resident licensees of other jurisdictions with which North Carolina does NOT have a reciprocal licensing ar-rangement and residents of other jurisdictions who do not hold a real estate license may generally apply for a nonresi-dent North Carolina real estate license by satisfying one of the above-described qualifi cation options and passing the North Carolina real estate license examination. North Car-olina law (G.S. 93A-9) provides that applications for licen-sure may be accepted from residents of other jurisdictions that off er similar licensing privileges to residents of North application; and (3) constituted the entire state-approved prelicense education program in that state. Required Documentation: Original course completion certifi cate or transcript showing course titles, dates and number of classroom hours, and evidence that the course was an approved salesperson course in the other state. An applicant (resident or nonresident) for licensure by examination with substantial real estate education other than prelicensing courses and/or extensive real estate experience may, in rare instances, be found by the Commission to pos-sess real estate education and/or experience equivalent to the broker prelicense course. Applicants bear the burden of satisfying the Commission that their edu-cation and/or experience justifi es a course waiver. A substantial portion of the qualifying education and/or experience must have been during the previous three years. Examples: Provided below are a few examples of qualifi cations the Commission has found suffi cient to justify waiver of the broker prelicense course: (1) Experience as a licensed attorney that focused primarily on handling real estate closings and related real estate matters in North Carolina for the three years immediately preceding application. (Licensure as an attorney without substantial real estate practice is not suffi cient.) (2) Full-time, lawful experience selling new homes owned by a corporate homebuilder as a bonafi de employee of the corporate homebuilder for three years immediately preceding application. (3) In rare instances, very substantial experience in personally buying, developing and selling real estate (for example, 10-15 transactions per year over an eight-year period immediately preceding application). Note: Lawful, unlicensed experience in property management or experience in specialized real estate related fi elds such as appraisal, mortgage lending, investment, development or consulting will NOT, standing alone, be acceptable under this option. Required Documentation: For equivalent real estate education, course descriptions and copies of transcripts or certifi cates if available. Otherwise, list each course taken and provide dates and course descriptions. (Education documentation not required for attorneys.) For equivalent real estate experience, provide a detailed description of all such experience including, for personal transac-tions, a list or summary of all sales, purchase and rental transactions showing for each transaction (or category of transaction) the type of property, transaction date, a description of the applicant’s role in the transaction and an indication of whether or not a real estate agent was involved in the transaction. An applicant who holds an active license in another state with which North Carolina has a reciprocal licensing arrangement may qualify for licensure by reciprocity (i.e., without examination) if they are a resident of the qualifying reciprocal state or have moved to North Carolina from the qualifying recipro-cal state within 90 days prior to application. Upon demonstrating satisfactory moral character, an applicant licensed as a salesperson in the reciprocal state will be issued a North Carolina provisional broker license, and an applicant li-censed as a broker in the reciprocal state will be issued a North Carolina broker license that is NOT on provisional status. A PERSON WHO HAS BEEN A NORTH CAROLINA RESIDENT FOR MORE THAN 90 DAYS CANNOT OBTAIN A NORTH CAROLINA LICENSE BY RECIPROCITY. Note: See the section on “Licensing by Reciprocity” in this booklet for more information. s rs cc Option #4 Education and/or Unlicensed Experience in Real Estate Equiv-alent to the Broker Prelicense Course Crr c mw d b k i h i l ill Option #5 Licensure in Another State With Which North Carolina has Reciprocity [Examination not required for this option only.] 6 Real Estate Licensing in North Carolina Carolina. Th e North Carolina Real Estate Commission will accept applications for licensure by examination from resi-dents of most other jurisdictions without any special restric-tions. However, special requirements or restrictions may be imposed on applying residents of a jurisdiction that imposes special requirements or restrictions on North Carolina resi-dents applying in that jurisdiction. As of the printing of this booklet, special restrictions apply to residents of the juris-dictions listed below. Restrictions on Licensing Nonresidents by Examination FLORIDA Residents — Due to restrictions applied by Florida to North Carolina residents applying for licensure in Florida, North Carolina will not recognize Florida real estate licensure, education or brokerage experience when a Florida resident applies for a North Carolina real estate license by examination. To be found eligible to take the North Carolina single license examination, the Florida resident (whether a FL salesperson or broker or unlicensed) must either complete North Carolina’s 75-hour real estate prelicensing course (only available in NC) or qualify based on qualifi cations other than licensure, education or brokerage experience in Florida (such as active li-censure in a state other than Florida). Upon passing the North Carolina license examination, the Florida resident would be is-sued a North Carolina “provisional broker” license and would have to satisfy the postlicensing education requirements to remove the “provisional” status of the provisional broker li-cense within the prescribed time period by choosing one of the options available to nonresident licensees for this purpose (see “Postlicensing Education for Provisional Brokers”). TEXAS Residents – Texas does not issue salesperson li-censes to residents of North Carolina or other jurisdictions. Consequently, North Carolina will not issue a provisional broker license to a resident of Texas. A Texas resident who holds a broker license in Texas or another jurisdiction may, however, qualify for a North Carolina broker license (NOT on provisional status) by examination. Consideration of Applicant’s Character Requirement to Demonstrate Good Character. Every applicant for a real estate license has the burden of prov-ing that he or she is of good character and entitled to the high regard and confi dence of the public. To enable the Commission to render its decision regarding an applicant’s character at the earliest possible time, the applicant should submit with his or her application form all the information required in questions 16-18 on the application form relating to criminal off enses (including serious traffi c off enses), pro-fessional licensure disciplinary actions and liens/unpaid judgments. Full disclosure and explanation of every problem relating to these matters is expected and highly recommended! Nondisclosure of such information will only increase an ap-plicant’s burden of proving his or her truthfulness, honesty and integrity. Criminal Record Report Requirement. Every appli-cant, including those seeking to reinstate an expired, re-voked or surrendered license, must obtain and submit with his or her application a criminal record report as described in the subsequent section on “Criminal Record Report Re-quirement” under “Application Process.” What Is a “Character Issue?” Any person who has a criminal record report showing a criminal conviction (includ-ing any serious traffi c off ense, especially DWI) or who answers (or should have answered) “Yes” to any one of questions 16-18 on the license application relating to criminal off enses, profes-sional licensure disciplinary actions and liens/unpaid judg-ments is considered to have a “character issue,” although it should be noted that the Commission may also consider any other information that refl ects on an applicant’s character and reputation. Procedures for Applicants with Character Issues. Consideration of an application involving any “character issue” takes place only after the applicant has passed the license exami-nation or otherwise satisfi ed all license qualifi cation require-ments other than that of demonstrating good character. At that point, an application involving a character issue is evalu-ated by the Commission’s Executive Director and License Application Analyst and, if necessary, the Commission itself at the next monthly Commission meeting following the ap-plicant’s passing the examination, and the applicant is then notifi ed in writing of the Commission’s decision. Applicants who have a “character issue” (see above defi nition) in connection with their application should allow the Commission 45 days after passing the license examination to complete its evaluation before inquiring about the status of their application. In evaluating an ap-plicant who has a “character issue,” the Commission consid-ers all information that may come to its attention regarding the applicant’s character and reputation. An inquiry may be made by the Commission to obtain additional information about matters relating to an applicant’s character. Th is may include further search of criminal and civil records and/or a credit report. Th e Commission also may request additional information from the applicant. At any point during the process of considering character issues related to an applicant that the Commission deter-mines the applicant possesses the requisite good character, the applicant’s license will be promptly issued. If the Commission determines that an applicant has NOT affi rmatively demonstrated that he or she possesses the requi-site truthfulness, honesty and integrity for licensure, then ac-tion will be deferred on the application. Th e applicant will be advised of his or her right to request a formal hearing before the Commission on this matter and that failure to request such a hearing within 60 days will constitute a waiver of the right to a hearing and will result in the application being denied. In some instances, the applicant may be off ered the opportunity for an informal conference with a delegation of Commission members and staff to discuss the character issues in question Real Estate Licensing in North Carolina 7 before a determination is made by the Commission. Also, in instances where an applicant has a pending criminal charge or other pending matter that relates to his or her character, the Commission may postpone further consideration of the application until the pending matter is resolved. Applicant Check through National Real Estate Li-cense Disciplinary Data Base. Information on all appli-cants, including those seeking licensure by reciprocity or reinstatement, will be submitted to a national real estate license disciplinary action data bank operated by the Asso-ciation of Real Estate License Law Offi cials to determine if the applicant has (1) had a real estate license revoked or sus-pended in another state or has been otherwise disciplined in another state; (2) had a criminal conviction or civil injunc-tion imposed for engaging in real estate activity without the required license; or (3) had a real estate license denied due to matters relating to character. APPLICATION PROCESS Obtaining a License by Examination Following is an overview of the process for obtaining a real estate license by examination: (1) Prospective applicant completes required real estate prelicense course or otherwise satisfi es license qualifi cation requirements. (2) License application, fee and required documentation fi led with Commission. (3) Application reviewed to determine applicant’s eligibility for the license examination. (a) If the application is complete and the applicant is qualifi ed, the Commission sends a notice of examination eligibility within 4-5 working days of application receipt and the applicant then contacts the testing service to pay the examination fee and to schedule taking the examination by computer. (b) If the applicant is not qualifi ed or if the application is incomplete, the application is canceled and is returned to the applicant along with the application fee. (4) Applicant takes the license examination. (5) If applicant fails the license examination, he or she may reschedule and retake the examination. (6) If applicant passes the license examination: (a) If there are no issues relating to the applicant’s character, his or her license is promptly issued and should be received in the mail within seven days of the examination date. (b) If there is some issue relating to the applicant’s character, the application is reviewed by Commission staff and may be referred to the Commission for further consideration as to whether the applicant has the good character necessary for licensure. Th is process may become quite lengthy. See the preceding discussion of “Consideration of Applicant’s Character” under “License Qualifi cation Requirements.” Timeframe for Obtaining a License by Examination To complete the entire application-examination-licens-ing process usually requires approximately three (3) weeks after application fi ling for qualifi ed applicants who fi le com-plete applications, who schedule the examination promptly after receiving notice of application acceptance, who pass the examination on their fi rst attempt and who have no character issues. Completing the Application Form Any person wishing to obtain an individual real estate license, whether by examination or on another basis, must complete and fi le with the Real Estate Commission the Application for Real Estate License form contained in this booklet. Th e same application form is used to apply for a broker license by examination, for a license based on reci-procity, or for reinstatement of an expired, revoked or sur-rendered license. Only an original application form from this booklet or the Commission offi ce may be used to fi le an application. You may NOT use a COPY of this application form to fi le an application and the application may NOT be fi led by FAX. Applicants are cautioned to carefully read and follow the instructions on the application form and in this booklet. Failure to properly complete this form and submit all re-quired attachments will result in cancellation and return of the application and delay in taking the license examination and/or obtaining a license. Several points to especially re-member are noted below: Print clearly using BLACK ink. Your application must be legible, so print clearly in black ink. Page 2 of the appli-cation must be scanned using an electronic scanner — thus it is very important that you place one letter or number in each box and skip a box between words, names, etc. Legal Name. Enter in Item #2 your true legal name, including your full fi rst and middle names. Include on the line with your last name any applicable suffi x (Jr, III, etc.). Do not enter a nickname or an initial. Your legal name is the name you were given at birth or subsequently acquired through marriage, court order or adoption, and, should be the name that appears on your driver license (driver license may show middle initial rather than full middle name). If your current legal fi rst and last names do not appear on your 8 Real Estate Licensing in North Carolina driver license, you should have your driver license reissued in your current legal name to avoid identifi cation problems when you appear for your real estate license examination. Social Security Number. Providing your social security number is MANDATORY, not optional. Th e Commission is required by law to collect your social security number but also to protect the number from public access and improper disclo-sure. Your social security number is not “public information” and may only be disclosed as authorized by law. School, Instructor and Course Information. If you are applying to take the examination, enter the school code number, instructor code number and course completion date of your Broker Prelicense Course in Item #10. Th is information is on your course completion certifi cate. If you did not complete a Broker Prelicense Course in North Caro-lina, leave this item blank. First-time Exam Takers. If you have never previously taken the North Carolina real estate license examination and this will be your fi rst time taking the examination, blacken the “Yes” circle in Item #11. Otherwise, blacken the “No” circle. If you are an applicant for a reciprocal license, or if you are applying for license reinstatement and you are not required to pass the examination, leave this item blank. Places of Residence. In Item #14, list all places you have resided during the past seven (7) years, beginning with your current address and working backwards in time. If you fail to account for your residency for any period of time within the past seven years, your application will be considered incomplete and will be returned to you. Enclose an additional sheet if needed. Employment History. In Item #15, describe all employ-ment for the past three (3) years, including self-employment or work as an independent contractor. List present employ-ment fi rst and indicate “None” for any period you were not employed. Enclose an additional sheet if needed. Criminal Off enses, Professional License Disciplinary Actions and Liens or Unpaid Judgments. Th e three ques-tions asked by Items #16-18 relate to matters that may aff ect the Commission’s determination as to whether you possess the requisite “Character” for licensure. It is extremely impor-tant that you honestly answer these questions and provide all the required explanations and documentation as described on the application form. Failure to disclose a matter relating to your character is a separate character issue that may be considered in addition to the underlying off ense or issue. Failure to answer or provide all required information will result in your application being returned or in an application processing delay. Signature. Don’t forget to sign and date the application. When signing an application, the applicant certifi es that all information provided in connection with the application is accurate and complete. Any omission, inaccuracy, or failure to make full disclosure in the application may be deemed suf-fi cient reason to deny permission to take an examination, to deny license issuance, or to revoke a license after issuance. Application Enclosures In addition to properly completing the application form, the applicant must enclose: 1. Course Completion Certificate(s) or other documentation of qualifi cations (See “License Qualifi cation Options” under “License Qualifi cation Requirements”); 2. Application Fee. Th e application fee for an original broker license is $30.00 ($55 for reinstatement of a license expired for more than six months) and must be paid by either cashiers check, certifi ed check, or money order. If two or more applications are submitted in the same envelope, separate checks or money orders must be submitted with each application. THE COMMISSION DOES NOT ACCEPT CASH, PERSONAL CHECKS OR COMPANY CHECKS FOR THE APPLICATION FEE. Commission rules provide that once an application has been fi led and processed by the Commission, the applica-tion fee may not be refunded. 3. Criminal Record Report as described in the instruc-tions on the license application form and under “Criminal Record Report Requirement” below; 4. Character Information. All the required informa-tion described in a. - c. below when an applicant answers “Yes” (or should answer “Yes”) to the items on the application form relating to criminal off ens-es, professional license disciplinary actions or liens/ judgments; a. Criminal Off enses: Submit a detailed written explanation in your own words describing the circumstances surrounding each off ense/pend-ing charge and addressing why you think you should be licensed in spite of the off ense(s). Also, submit a copy of the court judgment for any conviction (or arrest warrant or bill of in-dictment for any pending charge) not shown on your criminal record report. b. Professional License Disciplinary Action: Submit a detailed written explanation in your own words describing the circumstances sur-rounding each action (or pending complaint) and addressing why you think you should be licensed in spite of the action. Also, submit a copy of the licensing agency’s order or pend-ing complaint. c. Liens or Judgments: Submit a detailed written explanation in your own words describing the cir-cumstances surrounding each outstanding lien or unpaid judgment resulting from your failure to pay a debt, your eff orts to pay the debt, the name Real Estate Licensing in North Carolina 9 of the judgment creditor or lien holder (i.e., the party you owe), the amount and date of the judg-ment and lien, and the current balance. Also, ad-dress why you think you should be licensed in spite of the outstanding lien(s) or judgment(s). 5. If applicable, a certifi cation of license history (origi-nal) issued within the last six (6) months by the ap-propriate state licensing agency for each state where you have held a real estate license within the past fi ve (5) years; and 6. All additional information required for nonresident applicants (See the “Nonresident Supplement to the Application for Real Estate License” in the back of this booklet). Criminal Record Report Requirement You must obtain a criminal record report from the agency listed below and submit such report with your application. A report prepared by this agency within the previous six months is the only report acceptable to the Commission. Carolina Investigative Research, Inc. (CIR) Telephone: (919) 460-7799 Website: www.cir-ncrec.com Th e criminal record report must include the results from a search of criminal records in the state and/or county of each diff erent place where you have resided during the past sev-en years and the search will be conducted for each diff erent name you have used during that period. CIR’s report will show all felony and misdemeanor convictions (including most traffi c convictions) on record for an applicant, not just those that occurred in the past seven years. CIR is authorized by the Commission to collect from you all personal informa-tion necessary to conduct records searches and to charge a separate fee for (1) collecting and verifying personal data, (2) each state or county record searched and (3) each addi-tional name for which a search is conducted. Th us, the cost of obtaining the criminal record report will vary depending on the number of diff erent places you have resided and/or diff erent names you have used during the past seven years. NOTE: Th e cost of a criminal records search in some other states (notably New York) may be substantial. A criminal record report involving only a search of North Carolina records will typically be provided within 2-4 business days of placing the order. Most reports involving a search of out-of- state records will be provided in 5-7 business days. Searches of records in a few states will require more time. Application Filing • Use the return envelope provided in this booklet. • Do not fold the application form. • Include all required enclosures. • Note that EXTRA POSTAGE is required for all mailed applications, regardless of weight. Updating Application Information An applicant is required to notify the Commission if any information provided in connection with an application for a North Carolina real estate license changes. LICENSE EXAMINATION – GENERAL INFORMATION To qualify for a North Carolina real estate license, most applicants must pass the real estate license examination. Th e license examination tests the applicant’s knowledge and understanding of subject matter that has been determined by an advisory committee of real estate practitioners and the Commission to be essential to practicing real estate broker-age in North Carolina in a manner that protects real estate consumers. Th e examination is an entry-level examination designed to determine if an applicant is minimally compe-tent to practice real estate brokerage. Th e only persons who are not required to pass the license examination are (1) residents of other states who are apply-ing for nonresident North Carolina licenses by reciprocity (see the LICENSING BY RECIPROCITY section of this booklet) and (2) some applicants for license reinstatement (see LICENSE REINSTATEMENT) How Examination is Administered Th e real estate license examination is administered for the Commission by PSI Services, a professional testing service, under a contract with the Commission to schedule and ad-minister the license examination for qualifi ed license appli-cants. Applicants take the license examination by computer at specially equipped testing centers. Each applicant is seated at a semi-private workstation in a room dedicated to testing. Th e testing room accommodates a maximum of 12 test takers and is monitored by one or more examination proctors. Th e testing room may also be under video surveillance for purposes of examination security. Th e testing equipment is easy to use and does not require previous computer experience or typing skill. Th e applicant responds to the test questions that appear on the computer monitor by pressing a key on the computer keyboard to indicate his or her answer choice or by selecting an answer choice using a computer mouse. During the untimed tutorial that immediately precedes the license examination, applicants will have the opportunity to become comfortable using the computer. 10 Real Estate Licensing in North Carolina Preparing for the Examination Th e best preparation for the real estate license examina-tion is to complete a Commission-approved real estate Bro-ker Prelicense Course. A vast majority of applicants will have done this in order to qualify for the licensing exami-nation. For applicants who are qualifying on a basis other than completing a North Carolina broker prelicense course, or who want to undertake additional study prior to taking the license examination, you may contact an approved pre-licensing school to request information concerning current prelicense course textbooks or study materials. A list of ap-proved prelicensing schools is provided on the Commission’s website at www.ncrec.state.nc.us. Examination Question Formats All questions on the licensing examination are multiple-choice questions that require the applicant to choose the correct or best answer from the alternate answer choices provided. Two types of multiple-choice question formats are used on the licensing examination: (1) the “basic four-choice” format and (2) the “Roman numeral” format. Th ese two formats are discussed and illustrated below. Th e Basic Four-Choice Format: Th is basic or standard multiple-choice question format involves a question or incom-plete statement that is followed by four possible numbered al-ternatives. Examples 1-3 below illustrate this format. Example 1 Th e primary body of law governing the relationship be-tween a seller of real estate and the broker with whom the seller lists his/her property is known as the (1) Statute of Frauds (2) Law of Conveyancing (3) Statute of Limitations (4) Law of Agency Answer: 4 Example 2 A broker with ABC Realty listed an owner’s property at $150,000 and the property was subsequently sold by a salesperson with XYZ Realty for $140,000. If the brokerage commission was 5% of the sale price and was to be divid-ed equally between the two fi rms, and if the selling agent’s share was 60% of his/her fi rm’s share, how much did the salesperson earn on the sale? (1) $1,400 (2) $2,100 (3) $3,500 (4) $4,200 Answer: 2 Example 3 All of the following are associated with the cost approach to estimating the value of an improved property EXCEPT (1) Replacement Cost (2) Depreciation (3) Net Operating Cost (4) Lot Value Answer: 3 Th e Roman Numeral Format: Th e Roman numeral format is merely a variation of the basic four-choice format. Th is format involves a question or incomplete statement fol-lowed by two possible responses labeled with Roman nu-merals. Th ese are followed by the four numbered alternative answer choices. Examples 1-2 below illustrate this format. Example 1 A valid real estate sales contract must contain I. an adequate property description. II. the sale price of the property. (1) I only (2) II only (3) Both I and II (4) Neither I nor II Answer 3 Example 2 Which of the following statements regarding condomin-iums is true? I. Unit ownership is transferred by deed. II. Unit owners are stockholders in the corporation that owns the condominium complex. (1) I only (2) II only (3) Both I and II (4) Neither I nor II Answer 1 Examination Topics Based on a comprehensive real estate licensee job anal-ysis, an advisory committee of North Carolina real estate experts and the North Carolina Real Estate Commission de-termined the topics covered on the North Carolina real es-tate license examination. All these topics are covered in the Commission-approved real estate Broker Prelicense Course. Th e topics listed below are subject to testing: Real Estate Licensing in North Carolina 11 1. REAL ESTATE LAW AND BROKERAGE PRACTICE A. Property Ownership and Interests Property Defi nitions and Classifi cations; Fixtures; Manufactured Homes (requirements for becom-ing real property); Freehold Estates; Severalty and Concurrent Property Ownership; Encumbrances (Liens, Easements, etc.); Riparian, Air and Subsur-face Rights; Real Property Taxation and Special As-sessments. B. Transfer of Title to Real Property Methods of Transferring Title; Deeds (Essential Elements, Types and Characteristics); Excise Tax; Title Examination; Title Insurance; Recordation of Property Interests; Property Description. C. Closing Real Estate Transactions Preliminaries to Closing; Items Required at Clos-ing; Closing Procedures; Closing Statements (espe-cially HUD-1 Form); Real Estate Settlement Proce-dures Act (RESPA). D. Land Use Controls Public Land Use Controls (all types), especially Zoning (Concepts, Terminology, Authority, Pur-poses, and Procedures); Subdivision Statutes/Regu-lations; Protective Covenants; Interstate Land Sales Disclosure Act; Flood Hazard Area Regulations and Insurance. E. Brokerage Relationships - Law and Practice Basic Agency Concepts (Terminology, Classifi ca-tions, Creation of Agency and Scope of Agent’s Au-thority); Real Estate Agency Relationships; Duties and Liabilities of Principals and Real Estate Agents. F. Basic Contract Law Basic Concepts, Terminology, and Classifi ca-tions; Legal Requirements for a Contract; Statute of Frauds; Discharge & Assignment of Contracts; Contract Remedies. G. Agency Contracts and Related Practices Earning a Real Estate Commission; Agency Con-tract Requirements and Types; Common Provi-sions and Completion of Standard Forms; Listing Practices; Residential Square Footage Guidelines, Procedures for Buyer’s Agent; Cooperation among Brokers. H. Sales Contracts and Related Practices Use, Provisions and Completion of N.C. Standard Off er to Purchase and Contract Form, including Standard Addenda; Rights and Obligations of Par-ties; Off er, Acceptance and Counteroff er; Earnest Money; Installment Land Contracts; Options to Purchase. I. Landlord and Tenant Law Basic Concepts and Terminology; Nonfreehold Es-tates; Laws Protecting Residential Tenants. J. Leases and Property Management Types and Characteristics of Leases; Essential and Common Lease Provisions; Rights of Parties; Prop-erty Management Contracts; Functions of Property Managers. 2. MISCELLANEOUS TOPICS RELATED TO REAL ESTATE A. Laws Prohibiting Discrimination Fair Housing (State and Federal Laws); Americans with Disabilities Act. B. Environmental Hazards, Laws and Regulations Hazardous Substances and Wastes (Lead-Based Paint, Asbestos, Radon, Oil and Chemicals) and Related Federal/State Laws; State Laws Protecting/ Conserving Natural Resources, including N.C. Coastal Area Management Act. C. Residential Property Disclosure Statement N.C. Residential Property Disclosure Act D. Federal Income Tax Implications of Homeowner-ship and Real Estate Investments Basic Terminology; Homeowner Deductions; Sale of Personal Residence; Operating Real Property for Business or Income-Producing Purposes; Sale of Business or Investment Real Estate; Installment Sales; Like-Kind Exchanges; Special Rules on Vaca-tion Homes and Offi ce in Home. E. Property Insurance Basic Concepts and Terminology; Homeowners’ Policies. F. Residential Building Construction Basic Wood-Frame Construction Methods and Ter-minology; Architectural Styles; Heating/Air Condi-tioning Systems; Government Regulation. 3. N.C. REAL ESTATE LICENSE LAW, COMMISSION RULES AND TRUST ACCOUNT GUIDELINES License Law Provisions Tested: Article 1 (All sections) Article 4 (Sections 93A-39 thru 93A-42, 93A-44, 93A-45, 93A-51, 93A-54, 93A-56, and 93A-58.) All other provisions of the License Law will NOT be tested on the examination. Commission Rule Provisions Tested: Subchapter 58A (Sections .0100, .0500, .1600, .1700, and 1900) Subchapter 58B (Sections .0400 thru .0600) 12 Real Estate Licensing in North Carolina All other provisions of the Commission Rules will NOT be tested on the examinations. A. Requirement for Licensure Defi nitions; Activities Requiring a License; Exemp-tions. B. Th e Real Estate Commission Composition; Purpose and Powers. C. General Licensing and Brokerage Provisions Business Entities (Firms); License Renewal; Postli-censing Education, Continuing Education; Active and Inactive License Status; Expired License; Su-pervision of Provisional Brokers by Brokers; Pay-ment of License Fees; Proof of Licensure; Change of Name or Address; Advertising; Delivery of Instru-ments; Retention of Records; Broker-in-Charge; Brokerage Fees and Compensation; Drafting Le-gal Instruments; Sales Contract Forms; Reporting Criminal Convictions; Agency Disclosure. (Agency Agreements covered under 1.G; Designated Agency covered under 1.E.) D. Prohibited Acts Disciplinary Actions (by Commission); Making False Promises; Improper Brokerage Commissions; Unworthiness and Incompetence; Improper, Fraud-ulent or Dishonest Dealing; Practice of Law; Other Prohibited Acts. (Misrepresentation and Omission and Confl ict of Interest covered under 1.E.) E. Handling and Accounting for Trust Funds Defi nition of Trust Funds; Trust Accounts; Depos-iting Trust Funds; Use and Disbursement of Trust Funds; Recordkeeping and Accounting. F. North Carolina Time Share Act Project Registration; License Required (for time share brokers); Defi nitions; Public Off ering State-ment; Purchaser’s Right to Cancel; Escrow Require-ments; Handling and Accounting of Funds and Other Law/Rule provisions listed above. 4. REAL ESTATE FINANCE A. Mortgages and Deeds of Trust Basic Finance Concepts and Terminology; Th e Mortgage Note and the Mortgage (Deed of Trust) Instrument (Essential and Common Provisions); Loan Payment Plans; Rights of Parties; Mortgage Priorities; Sales of Properties with Existing Mort-gages. B. Financing Methods Conventional and “Government” Mortgage Loans, including FHA, VA, Rural Development, Farm Service Agency, and N.C. Housing Finance Agen-cy (Characteristics, Major Programs and Payment Plans, Qualifi cation Requirements); Other Types of Mortgage Loans and Financing Methods. C. Financing Practices and Legislation Government Monetary Policy; Direct Sources of Financing; Th e Secondary Mortgage Market; Loan Qualifi cation Practices/Procedures; Federal Legisla-tion (Truth-in-Lending Act and Others). 5. REAL ESTATE VALUATION (APPRAISAL) A. Basic Valuation Concepts and Real Estate Economics Terminology; Concepts of Value; Forces and Fac-tors Aff ecting Value; Economic Principles of Value; Regulation of Appraisals. B. Methodology (Appraisal Methods) Th e Valuation Process (in General); Uniform Resi-dential Appraisal Report (URAR); Terminology, General Use, and Procedures associated with the Sales Comparison, Cost and Income Approaches; Comparative Market Analysis (CMA). 6. REAL ESTATE MATHEMATICS A. Finance Calculations Principal and Simple Interest; Monthly Loan Pay-ment; Total Interest over Life of Loan; Debt Re-duction; Loan Fees; Points; Discount; Yield; Loan Value; Loan-to-Value Ratio; Qualifying a Buyer. B. Appraisal Calculations Calculations related to Sales Comparison Approach and Income Capitalization Approach. C. Miscellaneous Calculations Brokerage Commissions; Sale Price/Rental Amount Needed to Provide Specifi ed Net to Seller/Landlord; Profi t/Loss on Sale of Real Estate; Equity; Area; Real Estate Taxes; Special Assessments; Calculation of Excise Tax; Federal Income Taxation of Home Ownership and Sale of Home. D. Closing Statement Prorations/Calculations Miscellaneous Prorations and Other Calculations; Separate Sellers’ and Buyers��� Closing Statement Problems. E. Complete Closing Statement Problem Th is requires applicants to perform multiple cal-culations and answer several questions based on the information provided to the applicant. Th is problem may be presented in various formats and may require applicants to utilize a provided blank HUD-1 Settlement Statement form in order to an-swer the questions. Examination Forms Th e Real Estate Commission utilizes several diff erent forms of the examination simultaneously and also changes these forms regularly. Th us, when more than one candidate is being tested at an exam center, it is likely that the can-didates will be taking diff erent forms of the examination. In addition, a candidate who fails the examination is given a diff erent examination form when he/she retakes the ex- Real Estate Licensing in North Carolina 13 amination. While each form of the examination contains mostly diff erent individual questions, the topics tested are the same on each form and each examination form is of equal diffi culty. Number and Value of Questions Th e examination consists of 115 questions. Only 110 of the questions will be scored. Five of the 115 questions are pretest questions (new unscored questions) that are placed randomly within the examination. All scored questions have equal value. Pretest questions are included to gather performance data on new questions in order that the Commission can determine if the new questions are appropriate to be used as scored questions on future examinations. Results of pretest questions will be reported only to the Commission and will be excluded from scoring of the 110 questions that deter-mine whether the candidate passes the examination. Pretest questions may appear in various sections of the exam, and candidates will not be able to distinguish pretest items from the questions that will be scored. Th e examination is divided into six sections as shown below. Th e number of questions in each of the six examina-tion sections may vary within the ranges shown below for any particular examination, but the total number of scored questions will always be 110. Section Number of Scored Questions Real Estate Law and Bro-kerage Practice 40 - 48 Miscellaneous Topics Re-lated to Real Estate 9 - 13 N.C. Real Estate License Law, Commission Rules and Trust Account Guide-lines 9 - 13 Real Estate Finance 12 - 16 Real Estate Valuation (Ap-praisal) 8 - 12 Real Estate Mathematics 17 - 23 TOTAL 110 Passing Requirement: In order to pass the real estate licensing examination applicants must at-tain a score of at least 75%, which means that 82 of the 110 scored questions must be answered cor-rectly. Helpful Hints Pace yourself. Read each question very carefully, but do not spend too much time on any one question. Th e ques-tions involving “Real Estate Mathematics” (last section of examination) will require more of an applicant’s time than other questions, so allow plenty of time for that section of the examination. If you are stumped by a particular ques-tion, mark it for later review and go on with your examina-tion; then return to your marked “problem questions” after you have answered the other questions. If uncertain as to the correct answer, make an educated guess; a question left blank will be automatically scored as incorrect. SCHEDULING AN EXAMINATION Applying for Examination As described in the earlier APPLICATION PROCESS section, a license applicant must fi rst fi le an application to the North Carolina Real Estate Commission and be found qualifi ed to take the examination. IMPORTANT NOTE: See the APPLICATION PROCESS section at the beginning of this book-let. Notice of Examination Eligibility Valid for 180 Days If the Commission determines that you meet the quali-fi cation requirements, you will be issued a “Notice of Ex-amination Eligibility” valid for 180 calendar days from the date it is issued. Your examination eligibility expiration date will be prominently indicated on the notice. Your notice of examination eligibility is valid for taking the exami-nation ONE time only (See the Expedited Reapplication and Exam Rescheduling subsection of this booklet for information about re-applying for a subsequent exami-nation). If your application is complete, every eff ort will be made to mail your notice of examination eligibility to you within 5-7 business days after receipt of your application by the Commission. Remember that it may take 2-3 business days for your application to reach the Commission and 2-3 busi-ness days for the notice of examination eligibility to reach you. Th e amount of time required to process applications varies with the volume of applications, so please allow at least 10 business days after mailing your application to the Commission before you call to check on the status of your application. To be scheduled for examination, you must contact PSI after receiving your notice of examination eligibility. (See the Making an Examination Appointment subsection of this booklet.) Walk-in testing is not available. 14 Real Estate Licensing in North Carolina You should schedule your examination promptly after receiving your notice of examination eligibility. You must take the examination on or before a business day prior to the expiration of your 180-day period of examination eligibility. Th e 180-day period of examination eligibility will NOT be extended for any reason. DO NOT DELAY SCHEDUL-ING YOUR EXAMINATION UNTIL YOUR 180-DAY PERIOD IS NEARLY OVER. Th e 180-day period is intended to accommodate appli-cant preferences in scheduling examinations and emergen-cies that may arise soon after being scheduled for an exami-nation. If you wait until the 180-day period is nearly over to schedule your examination, PSI may not be able to schedule you for examination on a date and at a location that is con-venient for you, and you may even risk forfeiture of applica-tion and examination fees. Examination Fee A separate $66 examination fee is required in addi-tion to the $30 license application fee. Th e $66 exami-nation fee is payable directly to PSI when the applicant contacts PSI to schedule his/her examination. Do NOT submit the $66 fee to the Real Estate Commission. Pay-ment may be made by credit card at the time you contact PSI by telephone or online to schedule your examination, or payment may be made to PSI in advance by mail. Once paid, this examination fee is nonrefundable. (See important payment instructions in the Making an Examination Ap-pointment subsection of this booklet.) Examination Center Locations You may select an exam center subject to availability when you contact PSI to schedule an examination. PSI op-erates exam centers for administering the North Carolina real estate license examination in the following cities: Asheville Charlotte Fayetteville Greenville Raleigh Virginia Beach, VA Wilmington Winston- Salem Tests are given only at these locations. Out-of-state testing is not permitted except at Virginia Beach, VA. Days of Operation: PSI exam centers will operate on most weekdays and Saturdays (other than on holiday weekends) depending on demand. Examinations are ad-ministered in the mornings at all sites and in the after-noons at some sites depending on demand. Making an Examination Appointment Applicants have the option of scheduling an examina-tion with PSI, using a VISA or MasterCard, either online or by telephone. Th e examination fee must be paid at the time of reservation. Examination fees are non-refundable and non-transferable, except as detailed in the Postponing an Examination Appointment subsection of this booklet. Ap-plicants who cannot or do not wish to use a credit card to pay the examination fee may pay the fee by mail and then use the telephone or online systems to actually schedule the examination. Paying by mail will, however, require an addi-tional one to two weeks for processing before the applicant can actually schedule an examination. When scheduling by telephone or online, you may schedule your examination as early as two working days af-ter you call if space is available at the exam center of your choice and you have not previously taken the examination. In almost all cases you will be able to take an examination at the exam center of your choice within 7 calendar days of calling PSI unless you request a later appointment or have previously taken the examination. (For scheduling a second or subsequent examination, see the Expedited Reapplication and Exam Rescheduling subsection of this booklet.) Preparing to Contact PSI When scheduling by telephone or online, you will need to do the following before you contact PSI: 1. Have your social security number available. 2. Have your VISA or MasterCard available. 3. Have your ‘Notice of Examination Eligibility” available. 4. Have a calendar available and plan alternative exam appointment dates. PSI will make every eff ort to schedule the exam center location and date that is most convenient for you, but you may need a couple of alternative dates selected in advance. 5. Be sure you are ready to schedule your examina-tion date when you contact PSI. Once paid (i.e., once your credit card is charged for the examination fee by PSI’s online or telephone registration system), an examination fee is NOT REFUNDABLE and credit for the fee may not be transferred to an-other person. Scheduling Online www.psiexams.com Contact the PSI website at www.psiexams.com and fol-low the instructions to pay the examination fee and sched-ule your examination. Real Estate Licensing in North Carolina 15 Scheduling By Telephone Call 1-800-733-9267 [1-800-RE-EXAMS] You may schedule an examination by calling PSI at the above number 24 hours a day, 7 days a week and using PSI’s automated voice response system. You should be able to fol-low the instructions to pay the nonrefundable examination fee and schedule your examination using the automated sys-tem. If you need assistance of any kind from a customer ser-vices representative, call Monday through Friday, between 7:30 a.m. and 8:00 p.m. and Saturday, between 11:00 am and 5:00 pm, Eastern time. A PSI registrar will ask you for information on your “Notice of Examination Eligibility” form and will schedule your appointment. After you have made your appointment, you may call PSI’s automated response system again at any time to verify your examination appointment or to receive directions to the examination center. Sending Examination Fee by Mail (Scheduling by Telephone or Online) If you would prefer to register and make your examina-tion fee payment to PSI by cashier’s check, money order or company check, you may do so by mail after you receive your Notice of Examination Eligibility from the Real Estate Commission. Be sure to include all of the following with your written registration request to PSI, taking care to write clearly and legibly: • Your name and social security number (applicant identifi cation number) exactly as they appear on your Notice of Examination Eligibility; • Your mailing address; • Your daytime and evening phone numbers (with area code); • A money order, company check or cashier’s check payable to PSI in the amount of $66 with your social security number (applicant identifi cation number) from your “Notice of Examination Eligibility” print-ed clearly on your check or money order to assure that your payment is properly assigned. Mail the required information and your examination fee payment to: PSI Services 3210 East Tropicana Avenue Las Vegas, Nevada 89121 CASH, PERSONAL CHECKS, MASTERCARD, OR VISA ARE NOT ACCEPTED BY MAIL. Upon receipt of the required information and examina-tion fee payment, PSI will send you a confi rmation notice and you will be able to schedule your examination via PSI’s automated telephone system (or online when that system is available). Be sure to allow at least two weeks for process-ing of your registration and fee. If you do not receive your confi rmation notice from PSI within two weeks, call (800) 733-9267 to verify your status. Special Examination Accommodations Persons with a disability (physical or mental impair-ment) that substantially limits their ability to take the ex-amination in the normal manner (by computer) or under normal testing conditions may request appropriate special accommodations in testing method or procedure. “Physi-cal impairment” warranting special accommodation may be any of a broad range of physiological disorders or condi-tions. “Mental impairment” may be any of a broad range of mental or psychological disorders or conditions. Docu-mentation of the disability in the form of a signed statement from an appropriate professional will be required in order to obtain the special accommodation. Also, the accommoda-tion requested must be reasonable and appropriate for the particular disability. A few examples of special accommoda-tions are: extended time (for a person with a learning dis-ability); a large print paper and pencil examination for a vi-sually impaired person; and additional breaks (for a person with low blood sugar levels). Persons wanting to request a special examina-tion accommodation based on a disability must do so on a “Request for Special Examination Ac-commodation” form available from the Commis-sion Offi ce. The completed request form should be fi led, if possible, with the license application and must be received in the Commission Offi ce at least 30 days prior to expiration of the applicant’s examination eligibility period and before the ap-plicant schedules a testing date with PSI. Upon receipt of the completed request form, the request will be promptly reviewed and the applicant will be contacted to discuss whether the requested ac-commodation can be provided. TAKING THE LICENSE EXAMINATION Reporting to Examination Center Applicants will be advised by PSI of the time to report for their examination when they schedule a date with PSI to take their examination. PSI holds most examinations in the morning, but may schedule afternoon examinations at some 16 Real Estate Licensing in North Carolina centers if demand makes this necessary. It is very important that applicants allow plenty of extra time to deal with traffi c delays and still arrive at the center on time. Make a note of the reporting time and DO NOT BE LATE! Late arrival will result in forfeiture of both your application and exami-nation fees. (See Forfeiture of Fees in the OTHER EXAMI-NATION INFORMATION section of this booklet.) Exam Center Addresses and Directions Note: Th e following directions are intended to sup-plement but not substitute for current street/road maps. Retail establishments cited as landmarks may be subject to change. If you are unfamiliar with the specifi c area and location of your test center, be sure to consult a reli-able map. ASHEVILLE 1306 C Patton Avenue Asheville, NC 28806 From I-40 take exit 44, Smokey Park Highway (US 19/23), and turn left. Proceed north/east approx 3 miles. (Th e test center is in a multi-building complex between Haywood Rd and Druid). Turn right onto Haywood Rd at intersection of Patton (19/23) and Haywood Rd. (Swan-nanoa Cleaners on right.) Proceed approximately 0.2 miles and turn left onto Parkwood. Follow building numbers to 1306 –approximately the fi fth building complex on right, past the BB&T bank. From I-240 exit 3A to 19/23 (Patton Ave) and proceed south approx 2 miles. (Th e test center is in a multi-building complex between Druid and Haywood Rd.) Take a left onto Druid (Burger King is on the left), then fi rst right. Continue past post offi ce, proceed after the stop sign and take fi rst left into parking lot of building #1306. CHARLOTTE Tyvola Executive Park I 5701 Westpark Dr. #202 Charlotte, NC 28217 From I-77S towards Columbia, exit Tyvola Road (Exit #5). Turn left at Tyvola Road. Make a right at Westpark Dr. From I-77N, exit Tyvola Road (Exit #5). Bear right at Tyvola Road. Turn right at Westpark Dr. FAYETTEVILLE 3724 Sycamore Dairy Road, Suite 128 Arbor Alley Building Fayetteville, NC 28303 From the north, take I-95 South. Merge onto US 301/I- 95 Business Route South towards Fayetteville/Fort Bragg/ Pope AFB. Turn right onto NC-210/NC 24 Grove St. which becomes Rowan St. From Rowan St., turn right onto Bragg Blvd. Turn left onto Sycamore Dairy Road. Th e test center is on the right of the Arbor Alley strip mall on the north side (between Pricilia’s and the ABC store). From the south, take I-95 North to NC 24 West. NC 24 West becomes Bragg Blvd. (See above directions to test center from Bragg Blvd.) From the northwest, take NC-87 South to NC-24 E/ Bragg Blvd. Continue on NC-24 E/Bragg Blvd beyond the intersection with Hwy 401 Bypass. Turn right onto Bargain Street and proceed to Sycamore Dairy Road. From the southwest, take US 401 North and turn left onto 401 Bypass (Skibo Road). Continue on 401 Bypass/ Skibo Road. Turn right onto Legend Ave; turn left onto Sycamore Dairy Road. Th e test center is on the left of the Arbor Alley strip mall on the north side (Between Pricilia’s and the ABC store). GREENVILLE, NC Charles Center 2404 South Charles Blvd., Suite B Greenville, NC 27858 From the south, proceed north on State Highway 11, and merge to the right onto Greenville Blvd SE (US264/ State 43). Turn right on Charles Blvd. From the east, proceed west on US 264 and turn left onto Greenville Blvd SE. Turn left on Charles Blvd. From the west, proceed east on US 264. Turn right on Memorial Drive. Turn left on Greenville Blvd. Turn right on Charles Blvd. RALEIGH 5711 Six Forks Road, Suite 208 Raleigh, NC 27609 From I-440, exit Six Forks Road ( Exit #8) and proceed north. Turn left on Loft Lane, then right into the fi rst drive-way. Real Estate Licensing in North Carolina 17 VIRGINA BEACH, VA Pembroke IV Building 291 Independence Blvd, Suite 140 Virginia Beach, VA 23462 From I-264, merge onto S. Independence Blvd/VA-225 N via Exit 17B toward Pembroke Area. Make a u-turn at Broad St. onto Independence Blvd/VA-225 S. Th e site is near the Pembroke Mall. WILMINGTON Judge’s Road Business Park 311 Judge’s Road, Suite 8D Wilmington, NC 28405 When Interstate 40 ends, it merges with State Highway 132 (College Road). Exit Market Street (Highway 17) and proceed northeast toward Jacksonville, approximately 1 mile. Turn left at Judge’s Road. As you approach Judge’s Road Business Park, you will see a dozen brick buildings housing industrial units. Turn left into the Business Park and proceed to the third aisle. Turn right down the aisle for Building 8. Suite 8D is on the left. Overfl ow parking is available on the street. WINSTON-SALEM 1540 Westbrook Plaza Drive, Suite 103 Winston-Salem, NC 27103 From Interstate 40, exit 189, Stratford Road and proceed north (left) approximately 100 yards. Turn left on West-brook Plaza Drive. Turn left at the four-way stop, continu-ing on to Westbrook Plaza Drive. Continue straight after the next traffi c light. Th e test center is approximately 1/4 mile past the light and on your left. Required Identifi cation and Signature You must provide two (2) forms of identifi cation at the exam center when you arrive to take your examination. Both must bear your signature. Th e primary form of identifi ca-tion must be valid (current), government issued, (i.e. driver’s license, state identifi cation card issued by North Carolina Department of Motor Vehicles, passport, or military ID) and must bear your legal name and photograph. You must also provide a sample of your signature on the sign-in list when you check in to take your examination. Failure to provide required identifi cation and signature at check-in will disqualify you from taking the examination. NOTE: Your name as it appears on your two required forms of identifi cation must be the same as the name under which you applied for your real estate license. No exceptions. If you recently changed your name, or if your last name includes a generation indicator (e.g., Jr., III), or is hyphenat-ed or is a double last name, you should make sure well in advance that you are prepared to comply with this requirement. Proctors are not allowed to admit for testing any candidate whose required forms of identifi cation are not consistent with the name on the license application. If your primary photo ID (e.g., driver’s license) shows a residence address in a state other than the one you provided on your license application, the proctor will report this to the Real Estate Commission for further inquiry in the event the state of residence was an issue in connection with your license qualifi cations. Items to Bring and Prohibited Items Applicants should wear soft-sole (quiet) shoes. In addition to required identifi cation, applicants should also bring the following items to the exam center: • A calculator (See important restrictions below). • A coat, sweater, or wrap of some kind (even during summer months). Note: PSI will provide scratch paper and pen-cils to license applicants taking the examination. In the testing area you may have with you only your wallet, eye glasses (if needed), medications, personal hygiene items, a calculator, and the materials provided by the exam proctor. Any other items in your possession, including purses or pocketbooks, must be left in (or returned to) your car. PSI’s examination proctor will not hold personal items for you while you take the examination and neither PSI nor the proctor will be responsible for items you leave in the waiting room at the exam center. Do not bring to the testing center any study materials or notes of any kind, briefcases, bookbags, backpacks, totebags, large purses or pocketbooks, scratch paper, tape recorders or players (includ-ing MP3 players), pagers, PDAs, cellular telephones, cameras or any other electronic communication, recording or photograph-ing device. Calculators: Calculators may be used in taking the exam-ination if they are silent, hand-held, and either battery- or solar-powered. Calculators that would permit an applicant to enter and retrieve words by use of a keypad or an al-phabet keyboard (that sometimes doubles as a numeric and function keyboard) are NOT permitted. No computer of any type is permitted. Applicants may not share calculators. Persons using battery-powered calculators should make cer- 18 Real Estate Licensing in North Carolina tain that their calculators contain fresh batteries or should bring an extra set of batteries. No additional testing time will be allowed for calculator malfunction. Your calculator must be checked and approved by the examination proctor before you take it into the testing area. Examination Rules • You may not enter the testing area until you have completed check-in and been directed to your as-signed seat by the examination proctor. • You may not smoke, eat, or drink beverages in the testing center. After testing begins, you may take breaks, not to exceed 10 minutes per break, in the designated break area or to use the restroom. How-ever, ONLY ONE MALE AND ONE FEMALE CANDIDATE will be allowed to take a restroom break at the same time. Smoking is prohibited in all buildings where PSI operates testing centers, and you may NOT leave the building to take a smoke break. While on break you must stay in the des-ignated break area (or restroom) and you may not leave the testing area until the end of testing. • You may not use telephones or communicate in any manner for any purpose with any person other than the exam proctor during the entire period of testing or while on break. • You must be as quiet as possible throughout the examination. You must not disrupt the quiet and orderly administration of an examination in any manner. • Cheating or attempting to cheat on the examination by any means, including both giving and receiving assistance, is prohibited. • Th e examination questions are the confi dential and exclusive property of the Real Estate Commission. Th erefore, you may not remove from the exam cen-ter any notes about examination questions and you may not communicate examination questions to other persons, including instructors. • All materials provided by the proctor for your use in taking the examination (for example, HUD-1 Form, scratch paper and pencils) must be returned to the proctor immediately upon completion of the examination. Th e same is true for any examination materials provided for use by a candidate receiving a special accommodation. Possession of any prohibited items or violation of any of the above examination rules or procedures shall be grounds for dismissal from the examination, invalidation of exami-nation scores, and/or denial of a real estate license. Check-in Procedures and Examination Tutorial Applicants should report to the Test Center thirty (30) minutes before the scheduled examination and check in with the test center proctor. Th e proctor will confi rm each applicant’s appointment, review the applicant’s identifi ca-tion and any other required documents and will photograph him/her for security purposes. Th e proctor will also check to make sure the applicant has not brought any prohibited items to the test center. After check-in, applicants will have an opportunity to take a tutorial on the PC on which the examination will be administered. Th e examination proctor will answer ques-tions at this time, but applicants should be aware that the proctors are not familiar with the content of the examina-tion or with the state’s licensing requirements. Th e applicant is responsible for knowing that he/she is supposed to take the North Carolina Real Estate Licensing Examination rather than any other test that may be off ered at the test center. Th e time spent on the tutorial will not reduce the examination time. Once applicants are familiar with the PC, they may begin the examination. Examination Time Check-in and the introductory tutorial may take as much as 30 minutes. Th e time allowed to take the examination is four (4) hours, including any breaks. Applicants who fail the examination will be allowed an additional hour to review their examination on the computer immediately after they receive their examination results. Th us, to be sure you have enough time for the examination review in the event you fail your examination, you should plan on spending up to six (6) hours at the exam center. Immediate Examination Results When you complete the examination, your pass/fail re-sults will be reported to you immediately on the computer terminal. If you do not pass the examination, you will also be advised of your results for each section of the exam and will be given the opportunity to immediately review your examination as described below. When you leave the exam center, you will be provided with a written score report. Examination Review by Failing Applicants An applicant who fails an examination may review his/ her examination at the testing center immediately following completion of the examination and receipt of the examina-tion results. Applicants who pass an examination may not review their examination. Th is will be the only opportunity for a failing applicant to review his/her examination. An ap- Real Estate Licensing in North Carolina 19 plicant eligible for examination review who does not review the examination at the testing center immediately following com-pletion of the examination will be deemed to have waived the right to review the examination. One hour will be allowed for the review. Applicants will fi rst be given an opportunity to review the questions they answered incorrectly by com-paring their responses to the correct responses, and then, if time remains, they may review questions they answered correctly. By analyzing their performance and identifying their weaknesses, it is hoped that applicants will be better prepared to pass any future examination. License Issuance for Passing Applicants Licenses are not issued at the exam centers or by PSI. Your examination results will be reported to the Real Es-tate Commission, and licenses will be issued by the Com-mission to persons who passed the examination and possess the requisite “Character” for licensure (see the discussion of “Character” under LICENSE QUALIFICATION RE-QUIREMENTS. Applicants passing the examination should expect to receive their license certifi cates within approximately 10 days following their examination date IF THERE ARE NO CHARACTER ISSUES AS-SOCIATED WITH THE APPLICATION. Please do not call the Commission Offi ce concerning license issuance until at least 10 calendar days after the examination date (45 days if there are character issues to be considered). OTHER EXAMINATION INFORMATION Postponing an Examination Appointment To cancel or postpone your examination appointment, your cancellation notice must be received two full working days before the scheduled testing date. To cancel an ap-pointment you may contact PSI by telephone (800-733- 9267), fax (818-247-3853) or email (NCRE@psionline. com). You may cancel and reschedule (postpone) an examination appointment only once without forfeiting both the license application fee and the examination fee. Applicants who change or cancel their reservations without proper notice will forfeit the examination fee. You should be aware of the remainder of your 180-day period of exami-nation eligibility period and you must reschedule and take the examination during that time. Excused Absences Under certain limited circumstances you may be excused from a scheduled examination for which you did not give PSI the required two-days advance notice of cancellation. You may be excused for missing a scheduled examination and rescheduled for a future date without having to fi le an-other license application and pay all required fees only if your absence was the direct result of an emergency situa-tion or condition that was beyond your control and that you could not have reasonably foreseen. You must send your re-quest for excused absence in writing to PSI promptly follow-ing your absence from your scheduled exam. Your request must set forth the reason for your absence and must include documentation verifying such reason (e.g. statement from physician). Your request for an excused absence will be de-nied if you cannot be rescheduled and examined prior to expiration of your 180-day period of examination eligibility. Written requests for an excused absence from an examina-tion must be mailed to: PSI Services 3210 East Tropicana Avenue Las Vegas, Nevada 89121 Forfeiture of Fees Your scheduled appointment to take the examination will be canceled, you will not be able to take the examina-tion, your license application will be canceled, and you will forfeit both the license application fee paid to the Commis-sion and the examination fee paid to PSI if you do any of the following: • Cancel your scheduled examination appointment with less than two working days’ notice to PSI; • Cancel your rescheduled examination appointment in an attempt to postpone an examination more than once; • Fail to schedule and take the examination on or be-fore the last business day prior to the expiration of your 180-day period of examination eligibility; • Arrive at the PSI exam center more than 30 minutes after the offi cial reporting time provided by PSI when you schedule your examination; • Fail to appear at the exam center for your scheduled examination appointment; or • Fail to present proper identifi cation and required signature upon arrival for a scheduled examination. (See the Required Identifi cation and Signature sub-section of this booklet.) 20 Real Estate Licensing in North Carolina Expedited Reapplication and Exam Rescheduling for Previously Scheduled Applicants for Examination Applicants who fail the licensing examination will not be allowed to retake the examination for at least 10 calendar days. When using the expedited reapplication and resched-uling system described below, the applicant will be limited to selecting an examination date that falls at least 10 days after the applicant’s most recent testing date. Most applicants who either fail the examination or fail to take their scheduled examination within their 180-day pe-riod of eligibility may utilize an expedited (“one-stop”) reap-plication and examination rescheduling procedure that con-veniently allows them to reapply for licensure and to sched-ule another examination by contacting PSI by telephone or online through PSI’s website. Eligible applicants may simply contact PSI, verify their eligibility for the “one-stop” procedure, pay by credit card a comprehensive reapplication/rescheduling fee of $96 ($30 application fee plus $66 examination fee), and immediately schedule another examination for a date that falls at least 10 days after the applicant’s most recent testing date. (PSI will remit $30 of the $96 fee to the Commission.) Th is procedure will save eligible applicants the trouble of fi ling another paper application and will expedite their ability to schedule a subsequent examination. [Note: For eligible ap-plicants seeking to reinstate a previously held license, the comprehensive “one-stop” reapplication/rescheduling fee is $121 ($55 application fee plus $66 examination fee)]. To know if you are eligible for this “one-stop” proce-dure, look at the date your examination eligibility expires as shown on your “Notice of Examination Eligibility.” Th is date will be 180 days from the date your last paper appli-cation was processed by the Commission. You may use the “one-stop” reapplication and examination rescheduling procedure at any time prior to the expiration date shown on your “Notice of Examination Eligibility”. Each time you use the “one stop” reapplication procedure and pay the re-quired fees you will receive an additional 180 days from the day you use the “one stop” system to schedule and take the licensing examination. You must wait until the day after you fail the examination (or fail to appear for a scheduled examination) to contact PSI and utilize the “one-stop” procedure. Should you contact PSI to use the “one-stop” procedure after the eligibility expira-tion date shown on your “Notice of Examination Eligibil-ity” has passed, PSI will not allow you to use that procedure and will instruct you to fi le another application with the Commission. If you use the “one-stop” procedure, you must still con-tact the Commission to update all information submitted with your last paper application to refl ect recent changes, especially changes related to: • Criminal charges or convic-tions • Professional license charges, disciplinary actions or denials • Liens or judgments. Applicants Who Must Refi le an Application with the Commission If the eligibility expiration date shown on your “Notice of Examination Eligibility”” (180 days from the date your application was processed by the Commission) has already passed and you do not pass or do not take the examination prior to expiration of your 180-day examination eligibility period, then you must fi le another paper application with the Commission and receive a new “Notice of Examination Eligibility” before you can contact PSI and schedule another examination. Th is is required in order that the Commis-sion may have reasonably current information regarding the applicant. Th e applicant’s qualifi cations will be reassessed when the subsequent application is fi led. Emergency Exam Center Closing If severe weather or another emergency forces the clos-ing of a PSI Exam center on your scheduled testing date, your examination will be rescheduled. PSI personnel will attempt to contact you in this situation; however, you may check the status of your testing schedule by calling (800) 733-9267 or by checking PSI’s website at www.psiexams. com. Every eff ort will be made to reschedule your examina-tion at a convenient time as soon as possible. NEW LICENSEE INFORMATION Issuance of Licenses After an applicant has satisfi ed the qualifi cation require-ments, passed the license examination (if required), and satis-fi ed the Commission that he or she is of good character (See “Consideration of Applicant’s Character” under “License Qualifi cation Requirements”), the applicant will be deemed qualifi ed for licensure. Persons who have satisfi ed the require-ments for licensure will be sent a license certifi cate and license pocket card to the address shown on the application form. Applicants passing the license examination should expect to receive their license certifi cates and pocket cards within ap-proximately seven (7) days after their license examination, if there are no character issues. Note: If any application raises character issues requiring special consideration, fi nal action on the license application will be delayed. (See section on “Consideration of Applicant’s Character” un-der “License Qualifi cation Requirements.”) It is unlawful for any person to engage in the business of a real estate broker until the date his or her license is issued by the Commission. Th e issuance date is displayed on the license certifi cate issued to each broker. Real Estate Licensing in North Carolina 21 Initial Licenses Are Inactive Provisional Broker Licenses All applicants who qualifi ed for licensure by examination are issued a “provisional broker” license (technically a broker license on “provisional” status) as defi ned in the “Introduc-tion�� section of this booklet. [EXCEPTION: An applicant licensed by examination who qualifi ed based on broker licen-sure in another jurisdiction is issued a broker license that is NOT on provisional status.] A “provisional broker” must be supervised by a “Broker-in-Charge” at all times when engaging in real estate brokerage activities. A provisional broker must satisfy the postlicensing education requirement described be-low in order to terminate the provisional status of his or her broker license. Activation of Initial Inactive Provisional Broker License A provisional broker license is initially placed on inactive status. Before the provisional broker can begin work in the real estate business, the provisional broker and his or her bro-ker- in-charge must fi le a “Notifi cation of Provisional Broker Supervision” form with the Commission Offi ce to have the provisional broker license placed on active status. Th is may be accomplished by accessing the Commission’s website at www. ncrec.state.nc.us and utilizing the interactive online form. Requirement for Active Status and Notifi cation of Changes in Employment or Address Any broker license, whether on “provisional” status or not, must be on “active” status at all times when the broker is performing real estate brokerage activities. To remain on “active” status, a licensee must satisfy in a timely manner both the postlicensing and continuing education requirements de-scribed below. Also, a licensee must notify the Commission within 10 days of any change in employment status (including a change in broker-in-charge) or in business or residence ad-dress. License Renewal All real estate licenses expire on the next June 30 following the date of issuance unless they are renewed by that date. Th is is true even if the license was issued in May or June. License renewal notices (post cards) are sent to licensees each year in May (in-cluded with new licenses issued in late May or June). Licensees should then renew their licenses either (1) online through the Commission’s website at www.ncrec.state.nc.us using a credit card or (2) by returning the renewal notice and renewal fee to the Commission so that the Commission receives the returned renewal notice and fee not later than June 30. Th e annual license renewal fee is $40. Licensees are strongly encouraged to renew ONLINE through the Commission’s website! Licensees are responsible for renewing their licenses in a timely manner even if they did not receive a renewal notice due to a business and/ or residence address change or other reason. Renewal notices for active brokers are sent to their business address (the address of the broker-in-charge of the offi ce with which they are affi liated). Renewal notices for inactive brokers are sent to their residence address on fi le with the Commission. No person may engage in real estate brokerage activities after his/her license has expired. A new license pocket card is sent to brokers each year upon the renewal of their licenses. Th is card verifi es renewal, but does not show whether the license is on active or inactive status. Whenever there is a change in active or inactive status, a separate notice is sent to the licensee. Postlicensing Education for Provisional Brokers All new provisional brokers must satisfy the postlicensing education requirement of 90 classroom hours of postlicens-ing education within three (3) years of the date of initial licensure. Th e postlicensing education is divided into three 30-hour postlicensing courses titled as follows: Broker Rela-tionships and Responsibilities, Contracts and Closing, and Se-lected Topics. Provisional brokers must complete at least one of the three courses during each of the fi rst three one-year peri-ods following the date of initial licensure and all three courses within three years of initial licensure. A provisional broker may elect to complete all three courses during the fi rst or sec-ond year after initial licensure. Upon completing all three postlicensing courses, the pro-visional status of the broker license will be terminated by the Commission. [Approved schools will report course comple-tion to the Commission, so licensees do not need to report course completion or request termination of provisional sta-tus.] If a provisional broker fails to complete a postlicensing course by the end of either the fi rst or second year after initial licensure, his or her license will be placed on inactive status until he or she remedies the education defi ciency and requests reactivation of his or her license. If a provisional broker fails to complete all three postlicensing courses by the end of the third year after initial licensure, his or her license will be CANCELED! To reinstate a canceled license, the former licensee will then have to comply with Commission requirements for reinstatement of such license. Th e postlicensing courses are only available as in-class courses through Commission-approved North Carolina schools. Because of the “hands-on” nature of the instruction required in these courses, they are not available online, by cor-respondence or by any other distance education method. As noted below, however, some resident and most nonresident provisional brokers may have additional options for satisfying some or all of the postlicensing education requirement. 22 Real Estate Licensing in North Carolina Postlicensing Course Waiver Based on “Equivalent Education/Experience” A vast majority of provisional brokers, especially resi-dent provisional brokers, must take the postlicensing courses. However, it is possible for some provisional brokers, especially those with substantial (i.e., several years) brokerage experience in another jurisdiction or substantial experience as a real estate attorney, to obtain a waiver of one or more of the postlicensing courses based on their “equivalent” experience. Th e specifi c course(s) waived would depend on the type of experience (e.g., residential sales, commercial brokerage, etc.). Provisional bro-kers, especially those who are nonresidents and do NOT have a North Carolina business or delivery address, may also be able to obtain “equivalent” credit for some postlicensing and continuing education courses taken in another jurisdiction. Nonresident provisional brokers may also have their “provi-sional” status removed (i.e., have all postlicensing education waived) if they obtain a broker license in another jurisdiction. Provisional brokers who think they may possess qualifi cations justifying a waiver may request from the Commission offi ce a copy of the Commission’s “Instructions for Requesting a Waiver of Postlicensing Education” which contains examples of possible grounds for a waiver and directions for making a request. Distinguishing Postlicensing Education and Continuing Education Postlicensing education should not be confused with continuing education. Postlicensing education is a one-time requirement that must be completed within the prescribed pe-riod of time after initial licensure. Continuing education must be completed on an ongoing basis each annual license period beginning with the fi rst full annual license period after initial licensure. Continuing Education Th e continuing education requirement is eight (8) hours per license period, including the mandatory Real Estate Up-date Course (4 hours) plus one 4-hour elective course. Licens-ees are generally required to satisfy the continuing education requirement each annual license period (July - June) in order to renew their licenses on active status. Th ere is however, a limited exception for new licensees. A newly licensed broker licensed by examination, reciprocity or reinstatement does not have to obtain CE during the license period he/she is originally licensed and only has to satisfy the 8-hour annual CE requirement prior to his/her second license renewal in order to renew his/her license on active status. A nonresident licensee who does NOT have a North Carolina business or delivery address and who also holds a li-cense in his/her resident jurisdiction may satisfy the continu-ing education requirement by maintaining the license in the other jurisdiction on active status and certifying such license status at the time of renewing his/her North Carolina license. On the other hand, a nonresident who has a North Caro-lina business or delivery address does NOT have this option and must take the Real Estate Update mandatory CE course in North Carolina and either take a North Carolina elective course or obtain equivalent elective course credit for a CE course(s) taken in another jurisdiction. LICENSING BY RECIPROCITY Under the authority granted the Real Estate Commission by Section 93A-9 of the Real Estate License Law, the Commis-sion has agreed to “Reciprocal Licensing Arrangements” with the licensing authorities in several other jurisdictions whereby resident real estate licensees in such jurisdictions (and some licensees of such jurisdictions who recently moved to North Carolina) may qualify for North Carolina real estate licenses without being required to pass the North Carolina real estate license examination. Similarly, resident North Carolina real estate licensees can qualify for licensure in these other states without taking a license examination in those states. Licensing by reciprocity (i.e., license examination waiver) is only available for resident licensees of a jurisdiction with which North Carolina has a reciprocal licensing arrangement, regardless of the amount of brokerage experience such a licensee may possess. Basic Qualifi cation Requirements for Licensure by Reciprocity Th e basic general qualifi cation requirements under North Carolina’s reciprocal licensing arrangements typically require that an applicant for licensure by reciprocity must either: (1) Be a resident licensee of a jurisdiction with which North Carolina has a reciprocal licensing arrangement (a “qualifying” jurisdiction), or (2) hold a license in a qualifying reciprocal jurisdiction and have moved from such a jurisdiction to North Carolina within not more than 90 days prior to submitting an application for a North Carolina license. A NORTH CARO-LINA RESIDENT CANNOT OBTAIN A NORTH CAR-OLINA LICENSE BY RECIPROCITY IF HE/SHE HAS LIVED IN NORTH CAROLINA FOR MORE THAN 90 DAYS. A reciprocal license applicant must also have obtained his/ her license in the “qualifying” jurisdiction by passing the ap-propriate real estate license examination in that jurisdiction or another jurisdiction with which North Carolina has reciproc-ity. All applicants must be found to possess the requisite char-acter for licensing. Note that in addition to these basic general requirements, there may be other unique specifi c requirements applicable under the various reciprocal agreements. Th e most signifi cant of these deal with NC resident licensees applying for a license in certain reciprocal jurisdictions and are noted under the list of reciprocal jurisdictions shown below. Real Estate Licensing in North Carolina 23 Reciprocal Jurisdictions Listed below are those jurisdictions (as of the printing of this booklet) with which the North Carolina Real Estate Com-mission has reciprocal licensing arrangements providing for waiver of the license examination: Alabama Kentucky South Carolina Arkansas Louisiana Tennessee Connecticut Mississippi West Virginia Georgia Nebraska Iowa Oklahoma Special Requirements/Provisions Alabama: License in “qualifying” jurisdiction may be ac-tive or inactive at time of application. (Applies to licensees applying to either NC or AL for a reciprocal license.) Also, an applicant for an AL reciprocal license may be a resident of either NC or AL and must provide proof of errors and omissions insur-ance coverage. Further, a reciprocal license issued by AL to a NC licensee may not be converted to a “resident” AL license unless the licensee satisfi es AL’s examination requirements. Louisiana, South Carolina, Tennessee and West Vir-ginia: NC resident brokers (not provisional) applying for a broker license by reciprocity in any of these states must satisfy that state’s requirement with regard to brokerage experience prior to licensure. Typically, the requirement is for either two or three years of brokerage experience. Tennessee also requires that NC resident brokers applying for a TN broker license provide proof of errors and omissions insurance coverage. Nebraska: NC resident licensees applying for a NE license by reciprocity must complete a three-hour course on NE law, rules and agency prior to licensure. (Course is available by correspondence.) License Equivalency A “salesperson” (or comparable level of licensee) in a qualifying reciprocal jurisdiction may obtain a North Carolina “provisional broker” license by reciprocity, and vice-versa. Similarly, a broker in a qualifying reciprocal jurisdiction may obtain a North Carolina broker license that is NOT on pro-visional status by reciprocity, and vice-versa. Application Requirements for Reciprocal License In general, licensees with currently active, resident licens-es in qualifying reciprocal jurisdictions (or who have moved to North Carolina from such a jurisdiction within 90 days) who wish to obtain North Carolina real estate licenses by reciprocity must complete and submit the following forms and information: 1. Application for Real Estate License (Form is in center of this booklet). Th is form and all required attachments must be submitted by all applicants. See the “APPLICATION PRO-CESS” section of this booklet. 2. Application Fee. A cashier’s check, certifi ed check or money order for the thirty dollar ($30) application fee must accompany the application. 3. Nonresident Supplement to Real Estate License Ap-plication (Form is in back of this booklet – not required if ap-plicant is a North Carolina resident). NOTE: Th e nonresident supplement form must be fi led in addition to the license applica-tion form in the center of this booklet. Th e nonresident supple-ment has three purposes: (1) It appoints the North Carolina Real Estate Commission to receive service on the applicant in any proceeding against the applicant arising under any laws of this state. (2) It provides the Commission information as to the manner in which a BROKER applicant intends to operate as a real estate licensee in North Carolina - as an independent broker, as a broker affi liated with a fi rm, as the sole proprietor of a fi rm, or as some other business entity. (Th is information is important because of the requirement that fi rms which are engaged in real estate brokerage in North Carolina must ob-tain separate real estate licenses.) (3) Finally, the form requires information to support the applicant’s claim of residency in a qualifying jurisdiction. 4. Notifi cation of Provisional Broker Supervision Form [provisional broker applicants only]. (Form is in back of this booklet). Reciprocal licenses issued to nonresidents are only issued on “active” status. Th is means that a nonresident provisional broker license applicant by reciprocity must have a North Carolina supervising broker (broker-in-charge) before the provisional broker can be issued a license by reciprocity. [North Carolina residents for less than 90 days applying for provisional broker licensure by reciprocity may also submit the supervision form with their application and be issued a license on active status, or they may omit the supervision form and they will be issued a license on inactive status and then have to activate that license before engaging in real estate practice.] 5. Certifi cation of License History. Th is must be an original offi cial certifi cation of license history issued by the real estate licensing agency in the applicant’s qualifying reciprocal jurisdiction using the standard form that agency uses for this purpose. A certifi cation of license history must be submitted for each jurisdiction in which the applicant has held a license within the past fi ve years. Th e certifi cation must set forth the current status of the applicant’s license (active, inactive, ex-pired, etc.), the date the applicant was licensed, a record of any disciplinary actions taken or pending against the applicant, and any other information relevant to the applicant’s license history. Th is certifi cation must have been issued by the applicant’s qualifying reciprocal jurisdiction within six months prior to the date of license application. [NOTE: Only an original offi cial certifi cation of license history is acceptable. A copy of a certi-fi cation of license history or the applicant’s real estate license or pocket identifi cation card is NOT acceptable.] 24 Real Estate Licensing in North Carolina ATTENTION: Some jurisdictions require sever-al weeks to fi ll orders for a certifi cation of license history. You must obtain and provide all required certifi cations of license history before your license application will be accepted. NO EXCEPTIONS. 6. Criminal Record Report. See the instructions on the license application form and in the “Criminal Record Re-port Requirement” paragraph under the “APPLICATION PROCESS” section elsewhere in this booklet. 7. Character Information. All explanatory information required of persons who answer “Yes” to the items on the license application relating to criminal off enses, professional license disciplinary action or liens/judgments. See the “AP-PLICATION PROCESS” section of this booklet. NOTE: Most reciprocal license applications are returned be-cause they are incomplete. Read carefully the application form completion and enclosure requirements in the “APPLICATION PROCESS” section of this booklet. Procedures and License Issuance – Reciprocal Licensing Properly completed applications for licensure by reciprocity will normally be processed within approximately 7-10 days of receipt by the Commission, if there are no character issues that require extra time for review by the Commission. Note, however, that broker applications often take longer if the broker will be operating in North Carolina as a fi rm and must also obtain a separate real estate fi rm license. Also, where an applying bro-ker must be designated as a broker-in-charge who will serve as the supervising broker of a provisional broker who is con-currently applying for licensure by reciprocity, the applications of both may require longer for processing. Finally, if there is a character issue that must be considered in connection with an application, action on that application will usually require more time, up to 45 days if consideration by the Commission at its next regular meeting is needed. Upon fi nding that a reciprocal license applicant is fully qualifi ed, including a determination that he or she possesses the requisite character for a North Carolina real estate license, a nonresident applicant will be issued a nonresident North Carolina real estate license and a North Carolina resident ap-plicant (who moved to North Carolina within 90 days prior to making application) will be issued a resident North Carolina real estate license. A nonresident licensee by reciprocity will receive all licensing privileges granted to resident real estate li-censees subject to any restrictions imposed by the reciprocal licensing arrangement with the licensee’s qualifying jurisdic-tion. Postlicensing Education and Continuing Education Requirements Very Important Notice: See the sections on “Postlicensing Education for Provisional Brokers” and “Continuing Educa-tion” under “NEW LICENSEE INFORMATION” that ap-pear immediately preceding the section on “LICENSING BY RECIPROCITY.” While there are some special policies regard-ing postlicensing education and continuing education for non-resident licensees with no North Carolina business or delivery address, there are no special exceptions to postlicensing and con-tinuing education requirements for reciprocal licensees. Licensees are treated the same for postlicensing and continuing education purposes regardless of whether their license was issued by reciprocity or by examination. Conversion of Reciprocal Nonresident License to Resident License All of North Carolina’s current reciprocal licensing ar-rangements except the arrangement with Alabama provide for the conversion of a nonresident license issued by reciprocity to a resident license without any additional education or ex-amination should the licensee move to the state that issued the nonresident reciprocal license. A NC licensee who obtains an AL reciprocal license may not convert the AL license to a “resident” license without fi rst satisfying AL’s examination requirements. North Carolina Licensees Wanting a Reciprocal License in Another Jurisdiction North Carolina licensees interested in obtaining a license by reciprocity in a jurisdiction with which North Carolina has a reciprocal licensing arrangement are advised to contact the real estate licensing agency in the jurisdiction to which they will be applying for complete details regarding that jurisdic-tion’s qualifi cation requirements. Th e addresses and telephone numbers for all real estate licensing agencies anywhere in the world may be found by accessing the website of the Associa-tion of Real Estate License Law Offi cials (ARELLO) at www. arello.org. LICENSE REINSTATEMENT License Expired Six Months Or Less Persons whose licenses have been expired for six months or LESS may reinstate their licenses by simply paying the $55 license reinstatement fee. Th ese persons are not required to fi le a license application or to meet any education or examination requirements to reinstate; however, they must have taken all required continuing education in order for their license to be placed on active status. Real Estate Licensing in North Carolina 25 License Expired More Than Six Months A person whose license has been expired for more than six months or whose license has been revoked or surrendered for any period of time must: (1) Application. Complete and fi le the Application for Real Estate License form contained in this booklet (including the required criminal record report, documentation of quali-fying education/experience and/or licensure in another state, and the “Nonresident Supplement” to the license application if applicable); (2) Fee. Pay the $55 fee for reinstatement of an expired license by certifi ed check, cashier’s check or money order ($30 for reinstatement of a revoked or surrendered license); (3) Education and/or Examination. Demonstrate to the satisfaction of the Commission that he/she possesses the cur-rent knowledge of real estate brokerage necessary to act in a manner that safeguards the public interest (see “Demonstrat-ing Current Knowledge of Real Estate Brokerage” in this sec-tion), and (4) Character. Satisfy the Commission that he/she pos-sesses the requisite character for licensing. (See the section in this booklet on “Consideration of Applicant’s Character” un-der “License Qualifi cation Requirements.”) NOTE: A former “salesperson” may request li-cense reinstatement as a “provisional broker.” Demonstrating Current Knowledge of Real Estate Brokerage Th e Commission has approved the guidelines described below regarding demonstration of current knowledge of real estate brokerage when a former licensee requests reinstatement of a license expired, revoked or surrendered for more than six months, regardless of whether the license was originally issued by examination or reciprocity. IMPORTANT NOTICE At the time of printing this booklet, the Commis-sion is developing revised license reinstatement guidelines regarding demonstration of current knowledge. Therefore, the guidelines presented below are subject to change at any time. License Expired, Revoked or Surrendered For More Than Six Months But Not More Than Two Years Provisional broker or broker applicants may demonstrate the current knowledge required for reinstatement by satisfying one of the following options: (1) Provisional Broker: Attending a minimum of 30 hours of a 75-hour broker prelicensing course (no course exam required) within six months prior to application -- Broker: Completing a 30-hour postlicensing course (including passing the course exam) within six months prior to application; OR (2) Passing the current license examination; OR (3) Possessing an active salesperson or broker license, as appropriate, in another state. License Expired, Revoked or Surrendered For More Than Two Years But Not More Than Five Years Provisional broker or broker applicants may demonstrate the current knowledge required for reinstatement by satisfying one of the following options: (1) Provisional Broker: Completing a 75-hour broker prelicensing course (including passing the course exam) within two years prior to application – Broker: Completing all three 30-hour postlicensing courses (including passing the course exams) within two years prior to application; OR (2) Passing the current license examination; OR (3) Possessing an active salesperson or broker license, as appropriate, in another state. License Expired, Revoked or Surrendered For More Than Five Years Applicants will be treated for qual
Object Description
Description
Title | Real estate licensing in North Carolina |
Date | 2008-09 |
Description | Sept. 2008 |
Digital Characteristics-A | 344 KB; 28 p. |
Digital Format | application/pdf |
Full Text | Alamance Alexander Alleghany Anson Ashe Beaufort Bertie Bladen Burke Cabarrus Caldwel Caswell Catawba Chatham Clay Cleveland Columbus Craven Cumberland Davidson Dare Davie Duplin Durham Edgecombe Franklin Gaston Gates Graham Granville Greene Halifax Harnett Henderson Hoke Hyde Iredell Jackson Johnston Jones Lenoir Lincoln McDowell Macon Madison Martin Mitchell Moore Nash Northampton Onslow Orange Pamlico Pender Person Pitt Polk Robeson Rowan Rutherford Sampson Scotland Stanly Stokes Surry Swain Transylvania Tyrrell Union Vance Wake Warren Washington Watauga Wayne Wilkes Wilson Yadkin Yancey PKY 40 40 40 85 95 77 85 26 Asheville Asheboro Greensboro Durham Charlotte Raleigh Washington Jacksonville Wilmington Fayetteville New Benr Rocky M ount Winston-Salem Haywood Buncombe Avery Pasquotank Perquimans Currituck Camden Chowan Randolph Montgomery Mecklenburg Rockingham Lee Richmond Forsyth Guilford Carteret Hertford Brunswick Cherokee Real Estate Licensing in North Carolina Published by the North Carolina Real Estate Commission September 2008 This booklet contains: • Information on the Licensing Process and License Qualifi cations • License Examination Information • Application Form and Instructions USING THIS BOOKLET North Carolina’s Real Estate License Structure North Carolina operates a “broker only” real estate licensing system. For an overview of this system and the various license categories, see pages 3-4. License Application Process and Qualifi cation Requirements Th e North Carolina Real Estate Commission licenses individuals and business entities as real estate brokers. Th is booklet is designed to guide all prospective applicants for individual real estate broker licensees through the license application process. If you are interested in applying for an individual real estate license, you should read this booklet carefully, especially pages 3-9, and follow all instructions precisely. Use the detailed Contents page to locate specifi c information you need. If you are interested in obtaining a fi rm broker license for a business entity, see the Commission’s web site, www.ncrec.state.nc.us, for an application and instructions. The License Examination Pages 9-20 of this booklet contain essential information for all persons required to take the license examination. Th e booklet provides general information about the examination, examination fee, scheduling an examination, taking the examination and examination rules and procedures. New Licensee Information Information about license issuance and activation, postlicensing education, continuing education and license re-newal begins on page 20. Licensing by Reciprocity and License Reinstatement Information about licensure by reciprocity (exempting examination based on reciprocal licensing arrangements with certain states) and license reinstatement begins on page 22. North Carolina Real Estate License Law and Commission Rules Th e North Carolina Real Estate License Law, Real Estate Commission Rules, Trust Account Guidelines and Li-cense Law and Rule Comments may be found at the Commission’s website, www.ncrec.state.nc.us, as well as in the booklet North Carolina Real Estate License Law and Commission Rules, which can be ordered online at the Commis-sion’s website. Contents Page Use the Contents page to fi nd information on specifi c topics. 5,000 copies of this public document were printed at a cost of $.XXX per copy. ©2008, 2007, 2006, 2005, 2004, 2003, 2002, 2001, 2000, 1998, 1997, 1996, 1995, 1994, 1993, 1992, 1991, 1990, 1989, 1988, 1987, 1986, 1985, 1984, 1983 North Carolina Real Estate Commission 1313 Navaho Drive, P.O. Box 17100 Raleigh, North Carolina 27619 Phone 919/875-3700 Real Estate Licensing in North Carolina 1 Contents INTRODUCTION .........................................................................................................................3 Who Is Required to Have a Real Estate License in North Carolina ....................................................................3 License Categories ............................................................................................................................................3 LICENSE QUALIFICATION REQUIREMENTS ..........................................................................4 License Qualifi cation Options .............................................................................................................................4 Licensing Nonresidents by Examination .............................................................................................................5 Consideration of Applicant’s Character ...............................................................................................................6 APPLICATION PROCESS ..........................................................................................................7 Obtaining a License by Examination ...................................................................................................................7 Timeframe for Obtaining a License by Examination ...........................................................................................7 Completing the Application Form ........................................................................................................................7 Application Enclosures .......................................................................................................................................8 Criminal Record Report Requirement .................................................................................................................9 Application Filing ..............................................................................................................................................9 Updating Application Information .......................................................................................................................9 LICENSE EXAMINATION – GENERAL INFORMATION .............................................................9 How Examination is Administered .......................................................................................................................9 Preparing for the Examination ..........................................................................................................................10 Examination Question Formats .........................................................................................................................10 Examination Topics ..........................................................................................................................................10 Examination Forms ..........................................................................................................................................12 Number and Value of Questions .......................................................................................................................13 Helpful Hints .....................................................................................................................................................13 SCHEDULING AN EXAMINATION ............................................................................................13 Applying for Examination .................................................................................................................................13 Notice of Examination Eligibility Valid for 180 Days ..........................................................................................13 Examination Fee ..............................................................................................................................................14 Examination Center Locations ..........................................................................................................................14 Making an Examination Appointment ...............................................................................................................14 Special Examination Accommodations .............................................................................................................15 TAKING THE LICENSE EXAMINATION ..................................................................................15 Reporting to Examination Center ......................................................................................................................15 Exam Center Addresses and Directions ...........................................................................................................16 Required Identifi cation and Signature ...............................................................................................................17 Items to Bring and Prohibited Items ..................................................................................................................17 Examination Rules ...........................................................................................................................................18 Check-in Procedures and Examination Tutorial ................................................................................................18 Examination Time ...........................................................................................................................................18 Immediate Examination Results .......................................................................................................................18 Examination Review by Failing Applicants ........................................................................................................18 License Issuance for Passing Applicants .........................................................................................................19 OTHER EXAMINATION INFORMATION ..................................................................................19 Postponing an Examination Appointment .........................................................................................................19 Excused Absences ...........................................................................................................................................19 Forfeiture of Fees .............................................................................................................................................19 Expedited Reapplication and Exam Rescheduling for Previously Scheduled Applicants for Examination .......20 Applicants Who Must Refi le an Application with the Commission ....................................................................20 2 Real Estate Licensing in North Carolina Emergency Exam Center Closing .....................................................................................................................20 NEW LICENSEE INFORMATION .............................................................................................20 Issuance of Licenses .......................................................................................................................................20 Initial Licenses Are Inactive Provisional Broker Licenses .................................................................................21 Activation of Initial Inactive Provisional Broker License ...................................................................................21 Requirement for Active Status and Notifi cation of Changes in Employment or Address ..................................21 License Renewal ..............................................................................................................................................21 Postlicensing Education for Provisional Brokers ...............................................................................................21 Postlicensing Course Waiver Based on “Equivalent Education/Experience” ....................................................22 Continuing Education .......................................................................................................................................22 LICENSING BY RECIPROCITY ...............................................................................................22 Basic Qualifi cation Requirements for Licensure by Reciprocity ........................................................................22 Reciprocal Jurisdictions ...................................................................................................................................23 License Equivalency ........................................................................................................................................23 Application Requirements for Reciprocal License ............................................................................................23 Procedures and License Issuance – Reciprocal Licensing ...............................................................................24 Postlicensing Education and Continuing Education Requirements .................................................................24 Conversion of Reciprocal Nonresident License to Resident License ...............................................................24 North Carolina Licensees Wanting a Reciprocal License in Another Jurisdiction .............................................24 LICENSE REINSTATEMENT ....................................................................................................24 License Expired Six Months Or Less ................................................................................................................24 License Expired More Than Six Months ...........................................................................................................25 Demonstrating Current Knowledge of Real Estate Brokerage .........................................................................25 License Expired, Revoked or Surrendered For More Than Six Months But Not More Than Two Years ...........25 License Expired, Revoked or Surrendered For More Than Two Years But Not More Than Five Years ............25 License Expired, Revoked or Surrendered For More Than Five Years ............................................................25 Applicant with Extraordinary Education and/or Experience Qualifi cations ........................................................25 Other Factors Not Considered ..........................................................................................................................26 Possible Disciplinary Action for Unlawful Activity ..............................................................................................26 Status of Reinstated License ............................................................................................................................26 Real Estate Licensing in North Carolina 3 INTRODUCTION This booklet has been prepared and published by the North Carolina Real Estate Commission for the purpose of providing information to interested persons regarding the requirements and procedures for obtaining North Carolina real estate licenses. Although every eff ort has been made to consolidate into this single publication basic information concerning the major areas of interest to prospective real estate licensees, many questions may have been left unanswered. Th erefore, persons who desire more detailed information regarding specifi c points of concern are advised to contact the Licensing Section at the Real Estate Commission Offi ce. This publication is required reading for anyone interested in obtaining a North Carolina real estate license. READ IT CAREFULLY! Additional copies of this booklet are available without charge from the North Carolina Real Estate Commission. Who Is Required to Have a Real Estate License in North Carolina In general, any person or business entity who transacts real estate business (including time share transactions) for compensation as an agent for another must fi rst obtain a real estate license issued by the North Carolina Real Estate Commission. Th e Real Estate Commission, an indepen-dent government agency of the State of North Carolina, is responsible for licensing and regulating all real estate agents in this state. Operating as a real estate agent in North Caro-lina without the proper license is a criminal off ense. For information concerning North Carolina real estate licenses and the laws and rules governing real estate brokerage prac-tice in North Carolina, go to the Commission’s website at www.ncrec.state.nc.us. License Categories Eff ective April 1, 2006, North Carolina began issuing only broker licenses and eliminated the separate salesper-son license. Existing salesperson licenses were converted to broker licenses. Although there is only one “type” of license, a broker license, there are several license categories as de-scribed below: PROVISIONAL BROKER – Th is is the entry-level li-cense category. Upon satisfying all the license qualifi cation requirements (including, for most applicants, passing the li-cense examination) most license applicants are initially issued a “provisional broker” license, which is technically a broker license on “provisional” status. A provisional broker may generally perform the same acts as a broker so long as he or she is supervised by a broker who is a designated broker-in-charge, but provisional brokers cannot operate independent-ly. Once licensed, a provisional broker must complete, within prescribed time periods, a postlicensing education program in order to terminate the “provisional” status of his or her license and to avoid license inactivation and possible eventual cancel-lation. [NOTE: Some applicants are eligible to directly ob-tain a broker license that is NOT on “provisional” status – see the section on “License Qualifi cation Requirements.”] BROKER – A provisional broker who satisfi es the postlicensing education requirements to terminate the “pro-visional” status of his or her license becomes a “broker” who is authorized to engage in brokerage in one of the two following capacities: (1) Work for another broker who is a broker-in-charge or work for a licensed brokerage fi rm. (A broker requires less supervision by a broker-in-charge than a provisional broker.) (2) Operate independently as a “sole proprietor;” how-ever, if the broker-sole proprietor will engage in activities requiring him or her to also be designated as a broker-in-charge (described below under “BROKER-IN-CHARGE), then he or she must also qualify as a broker-in-charge. (IMPORTANT NOTE: Th is means that an independent broker-sole proprietor must also be a broker-in-charge to law-fully engage in most brokerage activities.) BROKER-IN-CHARGE – Each real estate offi ce must have a broker-in-charge designated with the Real Estate Commission for the offi ce and each broker-sole proprietor who will handle trust funds requiring deposit in a trust ac-count, have other licensees affi liated with him or her, or advertise or promote his or her services in any manner (in-cluding distribution of business cards or listing property for sale or lease) must also fi rst designate himself or herself as a broker-in-charge. To qualify to be a broker-in-charge, a broker must have two (2) years full-time or part-time equiva-lent brokerage experience in any state within the previous fi ve (5) years, or be found by the Commission to possess equiva-lent qualifi cations. [See the Commission’s website at www. ncrec.state.nc.us for more information on broker-in-charge requirements and responsibilities.] FIRM – A business entity (corporation, limited liability company, partnership, etc.) must hold a real estate “fi rm” license in order to engage in real estate brokerage activities. A fi rm license is a broker license issued to a business entity. Sole proprietorships are exempt from the fi rm licensing re-quirement. A fi rm license application and instructions may be obtained by accessing the Commission’s website at www. ncrec.state.nc.us. LIMITED NONRESIDENT COMMERCIAL BRO-KER – A limited nonresidential commercial broker license may be issued to a broker or salesperson residing in a state other than North Carolina who holds an active real estate broker or salesperson license in the state where his/her prima-ry place of real estate business is located. A person holding a limited nonresident commercial broker license may engage in transactions for compensation involving “commercial real 4 Real Estate Licensing in North Carolina LICENSE QUALIFICATION REQUIREMENTS To qualify for a real estate broker license, an applicant must: (1) Be at least 18 years of age; (2) Be a United States citizen, a non-citizen national or a qualifi ed alien under federal law; (3) Have a social security number; (4) Satisfy one of the License Qualifi cation Options listed below; (5) Pass the real estate license examination (Ex-ceptions: Persons eligible for licensure by reciprocity and some license reinstatement applicants); and (6) Satisfy the Commission that they possess the requisite character to be entitled to licensure. License Qualifi cation Options Applicants applying under license qualifi cation options 1-4 below must also pass the North Carolina real estate license examination. Applicants qualifying under license qualifi cation option 5 for a license by “reciprocity” are not required to take North Carolina’s real estate license examination. All applicants must submit a properly completed “Application for Real Estate License” form and required enclosures in addition to the required documentation listed below, and all applicants must demonstrate to the satisfaction of the Real Estate Commission that they possess satisfactory moral character (see “Application Process” in this booklet). An applicant (resident or nonresident) may qualify for the North Carolina real estate license examination by completing (passing), within three years pri-or to license application, a Commission-approved 75-classroom hour Broker Prelicense Course in North Carolina. [Th is course is not available online, on computer disk, by correspondence or by any other distance education meth-od.] Required Documentation: Certifi cate of Course Completion (original) issued by the school for submission to the Commission. DO NOT submit a transcript, a grade report or a certifi cate provided by the school for display purposes. An applicant (resident or nonresident) may qualify for the North Carolina real estate license examination based on holding a current real estate license in another state that has been on active status within one year prior to application. [See exceptions for Florida and Texas residents on page 6.] Upon passing the examination and demonstrating satisfactory moral character, a person licensed as a salesperson in another state will be issued a North Carolina provisional broker license and a person licensed as a broker in another state will be issued a North Carolina broker license that is NOT on provisional status. Required Documentation: Certifi cation of License History (original with raised or attached agency seal) from the licensing agency in the state in which the applicant is licensed. Th e certifi cation must have been issued within the previous six months and must indicate the license history and any disciplinary action taken or complaints pending against the applicant. A copy of the applicant’s real estate license certifi cate or pocket identifi cation card or a license history downloaded from a licensing agency website is not acceptable. Proof of education is not required. An applicant (resident or nonresident) seeking waiver of the 75-hour North Carolina broker prelicense course based on completion of salesperson prelicense education in another state may qualify to take the North Carolina real estate license examination if the completed prelicense education in the other state: (1) consisted of at least 75 classroom (or legitimately equivalent) hours of instruc-tion [no partial credit granted]; (2) was completed within three years prior to estate” in North Carolina, but must enter into a declaration of affi liation and a brokerage cooperation agreement with a resident North Carolina broker and must be supervised by the North Carolina broker while performing commercial real estate brokerage services in North Carolina. An appli-cation form and instructions may be obtained by accessing the Commission’s website at www.ncrec.state.nc.us. r o Pc o Option #1 Completion of the Prescribed 75-Classroom Hour North Carolina Broker Prelicense Course r a[ e Option #2 Licensure as a Real Estate Salesperson or Broker in Another State Cel i ct Option #3 Completion in Another State of a Real Estate Salesperson Prelicense Course of at Least 75 Classroom Hours Real Estate Licensing in North Carolina 5 Licensing Nonresidents by Examination Resident licensees of other jurisdictions with which North Carolina does NOT have a reciprocal licensing ar-rangement and residents of other jurisdictions who do not hold a real estate license may generally apply for a nonresi-dent North Carolina real estate license by satisfying one of the above-described qualifi cation options and passing the North Carolina real estate license examination. North Car-olina law (G.S. 93A-9) provides that applications for licen-sure may be accepted from residents of other jurisdictions that off er similar licensing privileges to residents of North application; and (3) constituted the entire state-approved prelicense education program in that state. Required Documentation: Original course completion certifi cate or transcript showing course titles, dates and number of classroom hours, and evidence that the course was an approved salesperson course in the other state. An applicant (resident or nonresident) for licensure by examination with substantial real estate education other than prelicensing courses and/or extensive real estate experience may, in rare instances, be found by the Commission to pos-sess real estate education and/or experience equivalent to the broker prelicense course. Applicants bear the burden of satisfying the Commission that their edu-cation and/or experience justifi es a course waiver. A substantial portion of the qualifying education and/or experience must have been during the previous three years. Examples: Provided below are a few examples of qualifi cations the Commission has found suffi cient to justify waiver of the broker prelicense course: (1) Experience as a licensed attorney that focused primarily on handling real estate closings and related real estate matters in North Carolina for the three years immediately preceding application. (Licensure as an attorney without substantial real estate practice is not suffi cient.) (2) Full-time, lawful experience selling new homes owned by a corporate homebuilder as a bonafi de employee of the corporate homebuilder for three years immediately preceding application. (3) In rare instances, very substantial experience in personally buying, developing and selling real estate (for example, 10-15 transactions per year over an eight-year period immediately preceding application). Note: Lawful, unlicensed experience in property management or experience in specialized real estate related fi elds such as appraisal, mortgage lending, investment, development or consulting will NOT, standing alone, be acceptable under this option. Required Documentation: For equivalent real estate education, course descriptions and copies of transcripts or certifi cates if available. Otherwise, list each course taken and provide dates and course descriptions. (Education documentation not required for attorneys.) For equivalent real estate experience, provide a detailed description of all such experience including, for personal transac-tions, a list or summary of all sales, purchase and rental transactions showing for each transaction (or category of transaction) the type of property, transaction date, a description of the applicant’s role in the transaction and an indication of whether or not a real estate agent was involved in the transaction. An applicant who holds an active license in another state with which North Carolina has a reciprocal licensing arrangement may qualify for licensure by reciprocity (i.e., without examination) if they are a resident of the qualifying reciprocal state or have moved to North Carolina from the qualifying recipro-cal state within 90 days prior to application. Upon demonstrating satisfactory moral character, an applicant licensed as a salesperson in the reciprocal state will be issued a North Carolina provisional broker license, and an applicant li-censed as a broker in the reciprocal state will be issued a North Carolina broker license that is NOT on provisional status. A PERSON WHO HAS BEEN A NORTH CAROLINA RESIDENT FOR MORE THAN 90 DAYS CANNOT OBTAIN A NORTH CAROLINA LICENSE BY RECIPROCITY. Note: See the section on “Licensing by Reciprocity” in this booklet for more information. s rs cc Option #4 Education and/or Unlicensed Experience in Real Estate Equiv-alent to the Broker Prelicense Course Crr c mw d b k i h i l ill Option #5 Licensure in Another State With Which North Carolina has Reciprocity [Examination not required for this option only.] 6 Real Estate Licensing in North Carolina Carolina. Th e North Carolina Real Estate Commission will accept applications for licensure by examination from resi-dents of most other jurisdictions without any special restric-tions. However, special requirements or restrictions may be imposed on applying residents of a jurisdiction that imposes special requirements or restrictions on North Carolina resi-dents applying in that jurisdiction. As of the printing of this booklet, special restrictions apply to residents of the juris-dictions listed below. Restrictions on Licensing Nonresidents by Examination FLORIDA Residents — Due to restrictions applied by Florida to North Carolina residents applying for licensure in Florida, North Carolina will not recognize Florida real estate licensure, education or brokerage experience when a Florida resident applies for a North Carolina real estate license by examination. To be found eligible to take the North Carolina single license examination, the Florida resident (whether a FL salesperson or broker or unlicensed) must either complete North Carolina’s 75-hour real estate prelicensing course (only available in NC) or qualify based on qualifi cations other than licensure, education or brokerage experience in Florida (such as active li-censure in a state other than Florida). Upon passing the North Carolina license examination, the Florida resident would be is-sued a North Carolina “provisional broker” license and would have to satisfy the postlicensing education requirements to remove the “provisional” status of the provisional broker li-cense within the prescribed time period by choosing one of the options available to nonresident licensees for this purpose (see “Postlicensing Education for Provisional Brokers”). TEXAS Residents – Texas does not issue salesperson li-censes to residents of North Carolina or other jurisdictions. Consequently, North Carolina will not issue a provisional broker license to a resident of Texas. A Texas resident who holds a broker license in Texas or another jurisdiction may, however, qualify for a North Carolina broker license (NOT on provisional status) by examination. Consideration of Applicant’s Character Requirement to Demonstrate Good Character. Every applicant for a real estate license has the burden of prov-ing that he or she is of good character and entitled to the high regard and confi dence of the public. To enable the Commission to render its decision regarding an applicant’s character at the earliest possible time, the applicant should submit with his or her application form all the information required in questions 16-18 on the application form relating to criminal off enses (including serious traffi c off enses), pro-fessional licensure disciplinary actions and liens/unpaid judgments. Full disclosure and explanation of every problem relating to these matters is expected and highly recommended! Nondisclosure of such information will only increase an ap-plicant’s burden of proving his or her truthfulness, honesty and integrity. Criminal Record Report Requirement. Every appli-cant, including those seeking to reinstate an expired, re-voked or surrendered license, must obtain and submit with his or her application a criminal record report as described in the subsequent section on “Criminal Record Report Re-quirement” under “Application Process.” What Is a “Character Issue?” Any person who has a criminal record report showing a criminal conviction (includ-ing any serious traffi c off ense, especially DWI) or who answers (or should have answered) “Yes” to any one of questions 16-18 on the license application relating to criminal off enses, profes-sional licensure disciplinary actions and liens/unpaid judg-ments is considered to have a “character issue,” although it should be noted that the Commission may also consider any other information that refl ects on an applicant’s character and reputation. Procedures for Applicants with Character Issues. Consideration of an application involving any “character issue” takes place only after the applicant has passed the license exami-nation or otherwise satisfi ed all license qualifi cation require-ments other than that of demonstrating good character. At that point, an application involving a character issue is evalu-ated by the Commission’s Executive Director and License Application Analyst and, if necessary, the Commission itself at the next monthly Commission meeting following the ap-plicant’s passing the examination, and the applicant is then notifi ed in writing of the Commission’s decision. Applicants who have a “character issue” (see above defi nition) in connection with their application should allow the Commission 45 days after passing the license examination to complete its evaluation before inquiring about the status of their application. In evaluating an ap-plicant who has a “character issue,” the Commission consid-ers all information that may come to its attention regarding the applicant’s character and reputation. An inquiry may be made by the Commission to obtain additional information about matters relating to an applicant’s character. Th is may include further search of criminal and civil records and/or a credit report. Th e Commission also may request additional information from the applicant. At any point during the process of considering character issues related to an applicant that the Commission deter-mines the applicant possesses the requisite good character, the applicant’s license will be promptly issued. If the Commission determines that an applicant has NOT affi rmatively demonstrated that he or she possesses the requi-site truthfulness, honesty and integrity for licensure, then ac-tion will be deferred on the application. Th e applicant will be advised of his or her right to request a formal hearing before the Commission on this matter and that failure to request such a hearing within 60 days will constitute a waiver of the right to a hearing and will result in the application being denied. In some instances, the applicant may be off ered the opportunity for an informal conference with a delegation of Commission members and staff to discuss the character issues in question Real Estate Licensing in North Carolina 7 before a determination is made by the Commission. Also, in instances where an applicant has a pending criminal charge or other pending matter that relates to his or her character, the Commission may postpone further consideration of the application until the pending matter is resolved. Applicant Check through National Real Estate Li-cense Disciplinary Data Base. Information on all appli-cants, including those seeking licensure by reciprocity or reinstatement, will be submitted to a national real estate license disciplinary action data bank operated by the Asso-ciation of Real Estate License Law Offi cials to determine if the applicant has (1) had a real estate license revoked or sus-pended in another state or has been otherwise disciplined in another state; (2) had a criminal conviction or civil injunc-tion imposed for engaging in real estate activity without the required license; or (3) had a real estate license denied due to matters relating to character. APPLICATION PROCESS Obtaining a License by Examination Following is an overview of the process for obtaining a real estate license by examination: (1) Prospective applicant completes required real estate prelicense course or otherwise satisfi es license qualifi cation requirements. (2) License application, fee and required documentation fi led with Commission. (3) Application reviewed to determine applicant’s eligibility for the license examination. (a) If the application is complete and the applicant is qualifi ed, the Commission sends a notice of examination eligibility within 4-5 working days of application receipt and the applicant then contacts the testing service to pay the examination fee and to schedule taking the examination by computer. (b) If the applicant is not qualifi ed or if the application is incomplete, the application is canceled and is returned to the applicant along with the application fee. (4) Applicant takes the license examination. (5) If applicant fails the license examination, he or she may reschedule and retake the examination. (6) If applicant passes the license examination: (a) If there are no issues relating to the applicant’s character, his or her license is promptly issued and should be received in the mail within seven days of the examination date. (b) If there is some issue relating to the applicant’s character, the application is reviewed by Commission staff and may be referred to the Commission for further consideration as to whether the applicant has the good character necessary for licensure. Th is process may become quite lengthy. See the preceding discussion of “Consideration of Applicant’s Character” under “License Qualifi cation Requirements.” Timeframe for Obtaining a License by Examination To complete the entire application-examination-licens-ing process usually requires approximately three (3) weeks after application fi ling for qualifi ed applicants who fi le com-plete applications, who schedule the examination promptly after receiving notice of application acceptance, who pass the examination on their fi rst attempt and who have no character issues. Completing the Application Form Any person wishing to obtain an individual real estate license, whether by examination or on another basis, must complete and fi le with the Real Estate Commission the Application for Real Estate License form contained in this booklet. Th e same application form is used to apply for a broker license by examination, for a license based on reci-procity, or for reinstatement of an expired, revoked or sur-rendered license. Only an original application form from this booklet or the Commission offi ce may be used to fi le an application. You may NOT use a COPY of this application form to fi le an application and the application may NOT be fi led by FAX. Applicants are cautioned to carefully read and follow the instructions on the application form and in this booklet. Failure to properly complete this form and submit all re-quired attachments will result in cancellation and return of the application and delay in taking the license examination and/or obtaining a license. Several points to especially re-member are noted below: Print clearly using BLACK ink. Your application must be legible, so print clearly in black ink. Page 2 of the appli-cation must be scanned using an electronic scanner — thus it is very important that you place one letter or number in each box and skip a box between words, names, etc. Legal Name. Enter in Item #2 your true legal name, including your full fi rst and middle names. Include on the line with your last name any applicable suffi x (Jr, III, etc.). Do not enter a nickname or an initial. Your legal name is the name you were given at birth or subsequently acquired through marriage, court order or adoption, and, should be the name that appears on your driver license (driver license may show middle initial rather than full middle name). If your current legal fi rst and last names do not appear on your 8 Real Estate Licensing in North Carolina driver license, you should have your driver license reissued in your current legal name to avoid identifi cation problems when you appear for your real estate license examination. Social Security Number. Providing your social security number is MANDATORY, not optional. Th e Commission is required by law to collect your social security number but also to protect the number from public access and improper disclo-sure. Your social security number is not “public information” and may only be disclosed as authorized by law. School, Instructor and Course Information. If you are applying to take the examination, enter the school code number, instructor code number and course completion date of your Broker Prelicense Course in Item #10. Th is information is on your course completion certifi cate. If you did not complete a Broker Prelicense Course in North Caro-lina, leave this item blank. First-time Exam Takers. If you have never previously taken the North Carolina real estate license examination and this will be your fi rst time taking the examination, blacken the “Yes” circle in Item #11. Otherwise, blacken the “No” circle. If you are an applicant for a reciprocal license, or if you are applying for license reinstatement and you are not required to pass the examination, leave this item blank. Places of Residence. In Item #14, list all places you have resided during the past seven (7) years, beginning with your current address and working backwards in time. If you fail to account for your residency for any period of time within the past seven years, your application will be considered incomplete and will be returned to you. Enclose an additional sheet if needed. Employment History. In Item #15, describe all employ-ment for the past three (3) years, including self-employment or work as an independent contractor. List present employ-ment fi rst and indicate “None” for any period you were not employed. Enclose an additional sheet if needed. Criminal Off enses, Professional License Disciplinary Actions and Liens or Unpaid Judgments. Th e three ques-tions asked by Items #16-18 relate to matters that may aff ect the Commission’s determination as to whether you possess the requisite “Character” for licensure. It is extremely impor-tant that you honestly answer these questions and provide all the required explanations and documentation as described on the application form. Failure to disclose a matter relating to your character is a separate character issue that may be considered in addition to the underlying off ense or issue. Failure to answer or provide all required information will result in your application being returned or in an application processing delay. Signature. Don’t forget to sign and date the application. When signing an application, the applicant certifi es that all information provided in connection with the application is accurate and complete. Any omission, inaccuracy, or failure to make full disclosure in the application may be deemed suf-fi cient reason to deny permission to take an examination, to deny license issuance, or to revoke a license after issuance. Application Enclosures In addition to properly completing the application form, the applicant must enclose: 1. Course Completion Certificate(s) or other documentation of qualifi cations (See “License Qualifi cation Options” under “License Qualifi cation Requirements”); 2. Application Fee. Th e application fee for an original broker license is $30.00 ($55 for reinstatement of a license expired for more than six months) and must be paid by either cashiers check, certifi ed check, or money order. If two or more applications are submitted in the same envelope, separate checks or money orders must be submitted with each application. THE COMMISSION DOES NOT ACCEPT CASH, PERSONAL CHECKS OR COMPANY CHECKS FOR THE APPLICATION FEE. Commission rules provide that once an application has been fi led and processed by the Commission, the applica-tion fee may not be refunded. 3. Criminal Record Report as described in the instruc-tions on the license application form and under “Criminal Record Report Requirement” below; 4. Character Information. All the required informa-tion described in a. - c. below when an applicant answers “Yes” (or should answer “Yes”) to the items on the application form relating to criminal off ens-es, professional license disciplinary actions or liens/ judgments; a. Criminal Off enses: Submit a detailed written explanation in your own words describing the circumstances surrounding each off ense/pend-ing charge and addressing why you think you should be licensed in spite of the off ense(s). Also, submit a copy of the court judgment for any conviction (or arrest warrant or bill of in-dictment for any pending charge) not shown on your criminal record report. b. Professional License Disciplinary Action: Submit a detailed written explanation in your own words describing the circumstances sur-rounding each action (or pending complaint) and addressing why you think you should be licensed in spite of the action. Also, submit a copy of the licensing agency’s order or pend-ing complaint. c. Liens or Judgments: Submit a detailed written explanation in your own words describing the cir-cumstances surrounding each outstanding lien or unpaid judgment resulting from your failure to pay a debt, your eff orts to pay the debt, the name Real Estate Licensing in North Carolina 9 of the judgment creditor or lien holder (i.e., the party you owe), the amount and date of the judg-ment and lien, and the current balance. Also, ad-dress why you think you should be licensed in spite of the outstanding lien(s) or judgment(s). 5. If applicable, a certifi cation of license history (origi-nal) issued within the last six (6) months by the ap-propriate state licensing agency for each state where you have held a real estate license within the past fi ve (5) years; and 6. All additional information required for nonresident applicants (See the “Nonresident Supplement to the Application for Real Estate License” in the back of this booklet). Criminal Record Report Requirement You must obtain a criminal record report from the agency listed below and submit such report with your application. A report prepared by this agency within the previous six months is the only report acceptable to the Commission. Carolina Investigative Research, Inc. (CIR) Telephone: (919) 460-7799 Website: www.cir-ncrec.com Th e criminal record report must include the results from a search of criminal records in the state and/or county of each diff erent place where you have resided during the past sev-en years and the search will be conducted for each diff erent name you have used during that period. CIR’s report will show all felony and misdemeanor convictions (including most traffi c convictions) on record for an applicant, not just those that occurred in the past seven years. CIR is authorized by the Commission to collect from you all personal informa-tion necessary to conduct records searches and to charge a separate fee for (1) collecting and verifying personal data, (2) each state or county record searched and (3) each addi-tional name for which a search is conducted. Th us, the cost of obtaining the criminal record report will vary depending on the number of diff erent places you have resided and/or diff erent names you have used during the past seven years. NOTE: Th e cost of a criminal records search in some other states (notably New York) may be substantial. A criminal record report involving only a search of North Carolina records will typically be provided within 2-4 business days of placing the order. Most reports involving a search of out-of- state records will be provided in 5-7 business days. Searches of records in a few states will require more time. Application Filing • Use the return envelope provided in this booklet. • Do not fold the application form. • Include all required enclosures. • Note that EXTRA POSTAGE is required for all mailed applications, regardless of weight. Updating Application Information An applicant is required to notify the Commission if any information provided in connection with an application for a North Carolina real estate license changes. LICENSE EXAMINATION – GENERAL INFORMATION To qualify for a North Carolina real estate license, most applicants must pass the real estate license examination. Th e license examination tests the applicant’s knowledge and understanding of subject matter that has been determined by an advisory committee of real estate practitioners and the Commission to be essential to practicing real estate broker-age in North Carolina in a manner that protects real estate consumers. Th e examination is an entry-level examination designed to determine if an applicant is minimally compe-tent to practice real estate brokerage. Th e only persons who are not required to pass the license examination are (1) residents of other states who are apply-ing for nonresident North Carolina licenses by reciprocity (see the LICENSING BY RECIPROCITY section of this booklet) and (2) some applicants for license reinstatement (see LICENSE REINSTATEMENT) How Examination is Administered Th e real estate license examination is administered for the Commission by PSI Services, a professional testing service, under a contract with the Commission to schedule and ad-minister the license examination for qualifi ed license appli-cants. Applicants take the license examination by computer at specially equipped testing centers. Each applicant is seated at a semi-private workstation in a room dedicated to testing. Th e testing room accommodates a maximum of 12 test takers and is monitored by one or more examination proctors. Th e testing room may also be under video surveillance for purposes of examination security. Th e testing equipment is easy to use and does not require previous computer experience or typing skill. Th e applicant responds to the test questions that appear on the computer monitor by pressing a key on the computer keyboard to indicate his or her answer choice or by selecting an answer choice using a computer mouse. During the untimed tutorial that immediately precedes the license examination, applicants will have the opportunity to become comfortable using the computer. 10 Real Estate Licensing in North Carolina Preparing for the Examination Th e best preparation for the real estate license examina-tion is to complete a Commission-approved real estate Bro-ker Prelicense Course. A vast majority of applicants will have done this in order to qualify for the licensing exami-nation. For applicants who are qualifying on a basis other than completing a North Carolina broker prelicense course, or who want to undertake additional study prior to taking the license examination, you may contact an approved pre-licensing school to request information concerning current prelicense course textbooks or study materials. A list of ap-proved prelicensing schools is provided on the Commission’s website at www.ncrec.state.nc.us. Examination Question Formats All questions on the licensing examination are multiple-choice questions that require the applicant to choose the correct or best answer from the alternate answer choices provided. Two types of multiple-choice question formats are used on the licensing examination: (1) the “basic four-choice” format and (2) the “Roman numeral” format. Th ese two formats are discussed and illustrated below. Th e Basic Four-Choice Format: Th is basic or standard multiple-choice question format involves a question or incom-plete statement that is followed by four possible numbered al-ternatives. Examples 1-3 below illustrate this format. Example 1 Th e primary body of law governing the relationship be-tween a seller of real estate and the broker with whom the seller lists his/her property is known as the (1) Statute of Frauds (2) Law of Conveyancing (3) Statute of Limitations (4) Law of Agency Answer: 4 Example 2 A broker with ABC Realty listed an owner’s property at $150,000 and the property was subsequently sold by a salesperson with XYZ Realty for $140,000. If the brokerage commission was 5% of the sale price and was to be divid-ed equally between the two fi rms, and if the selling agent’s share was 60% of his/her fi rm’s share, how much did the salesperson earn on the sale? (1) $1,400 (2) $2,100 (3) $3,500 (4) $4,200 Answer: 2 Example 3 All of the following are associated with the cost approach to estimating the value of an improved property EXCEPT (1) Replacement Cost (2) Depreciation (3) Net Operating Cost (4) Lot Value Answer: 3 Th e Roman Numeral Format: Th e Roman numeral format is merely a variation of the basic four-choice format. Th is format involves a question or incomplete statement fol-lowed by two possible responses labeled with Roman nu-merals. Th ese are followed by the four numbered alternative answer choices. Examples 1-2 below illustrate this format. Example 1 A valid real estate sales contract must contain I. an adequate property description. II. the sale price of the property. (1) I only (2) II only (3) Both I and II (4) Neither I nor II Answer 3 Example 2 Which of the following statements regarding condomin-iums is true? I. Unit ownership is transferred by deed. II. Unit owners are stockholders in the corporation that owns the condominium complex. (1) I only (2) II only (3) Both I and II (4) Neither I nor II Answer 1 Examination Topics Based on a comprehensive real estate licensee job anal-ysis, an advisory committee of North Carolina real estate experts and the North Carolina Real Estate Commission de-termined the topics covered on the North Carolina real es-tate license examination. All these topics are covered in the Commission-approved real estate Broker Prelicense Course. Th e topics listed below are subject to testing: Real Estate Licensing in North Carolina 11 1. REAL ESTATE LAW AND BROKERAGE PRACTICE A. Property Ownership and Interests Property Defi nitions and Classifi cations; Fixtures; Manufactured Homes (requirements for becom-ing real property); Freehold Estates; Severalty and Concurrent Property Ownership; Encumbrances (Liens, Easements, etc.); Riparian, Air and Subsur-face Rights; Real Property Taxation and Special As-sessments. B. Transfer of Title to Real Property Methods of Transferring Title; Deeds (Essential Elements, Types and Characteristics); Excise Tax; Title Examination; Title Insurance; Recordation of Property Interests; Property Description. C. Closing Real Estate Transactions Preliminaries to Closing; Items Required at Clos-ing; Closing Procedures; Closing Statements (espe-cially HUD-1 Form); Real Estate Settlement Proce-dures Act (RESPA). D. Land Use Controls Public Land Use Controls (all types), especially Zoning (Concepts, Terminology, Authority, Pur-poses, and Procedures); Subdivision Statutes/Regu-lations; Protective Covenants; Interstate Land Sales Disclosure Act; Flood Hazard Area Regulations and Insurance. E. Brokerage Relationships - Law and Practice Basic Agency Concepts (Terminology, Classifi ca-tions, Creation of Agency and Scope of Agent’s Au-thority); Real Estate Agency Relationships; Duties and Liabilities of Principals and Real Estate Agents. F. Basic Contract Law Basic Concepts, Terminology, and Classifi ca-tions; Legal Requirements for a Contract; Statute of Frauds; Discharge & Assignment of Contracts; Contract Remedies. G. Agency Contracts and Related Practices Earning a Real Estate Commission; Agency Con-tract Requirements and Types; Common Provi-sions and Completion of Standard Forms; Listing Practices; Residential Square Footage Guidelines, Procedures for Buyer’s Agent; Cooperation among Brokers. H. Sales Contracts and Related Practices Use, Provisions and Completion of N.C. Standard Off er to Purchase and Contract Form, including Standard Addenda; Rights and Obligations of Par-ties; Off er, Acceptance and Counteroff er; Earnest Money; Installment Land Contracts; Options to Purchase. I. Landlord and Tenant Law Basic Concepts and Terminology; Nonfreehold Es-tates; Laws Protecting Residential Tenants. J. Leases and Property Management Types and Characteristics of Leases; Essential and Common Lease Provisions; Rights of Parties; Prop-erty Management Contracts; Functions of Property Managers. 2. MISCELLANEOUS TOPICS RELATED TO REAL ESTATE A. Laws Prohibiting Discrimination Fair Housing (State and Federal Laws); Americans with Disabilities Act. B. Environmental Hazards, Laws and Regulations Hazardous Substances and Wastes (Lead-Based Paint, Asbestos, Radon, Oil and Chemicals) and Related Federal/State Laws; State Laws Protecting/ Conserving Natural Resources, including N.C. Coastal Area Management Act. C. Residential Property Disclosure Statement N.C. Residential Property Disclosure Act D. Federal Income Tax Implications of Homeowner-ship and Real Estate Investments Basic Terminology; Homeowner Deductions; Sale of Personal Residence; Operating Real Property for Business or Income-Producing Purposes; Sale of Business or Investment Real Estate; Installment Sales; Like-Kind Exchanges; Special Rules on Vaca-tion Homes and Offi ce in Home. E. Property Insurance Basic Concepts and Terminology; Homeowners’ Policies. F. Residential Building Construction Basic Wood-Frame Construction Methods and Ter-minology; Architectural Styles; Heating/Air Condi-tioning Systems; Government Regulation. 3. N.C. REAL ESTATE LICENSE LAW, COMMISSION RULES AND TRUST ACCOUNT GUIDELINES License Law Provisions Tested: Article 1 (All sections) Article 4 (Sections 93A-39 thru 93A-42, 93A-44, 93A-45, 93A-51, 93A-54, 93A-56, and 93A-58.) All other provisions of the License Law will NOT be tested on the examination. Commission Rule Provisions Tested: Subchapter 58A (Sections .0100, .0500, .1600, .1700, and 1900) Subchapter 58B (Sections .0400 thru .0600) 12 Real Estate Licensing in North Carolina All other provisions of the Commission Rules will NOT be tested on the examinations. A. Requirement for Licensure Defi nitions; Activities Requiring a License; Exemp-tions. B. Th e Real Estate Commission Composition; Purpose and Powers. C. General Licensing and Brokerage Provisions Business Entities (Firms); License Renewal; Postli-censing Education, Continuing Education; Active and Inactive License Status; Expired License; Su-pervision of Provisional Brokers by Brokers; Pay-ment of License Fees; Proof of Licensure; Change of Name or Address; Advertising; Delivery of Instru-ments; Retention of Records; Broker-in-Charge; Brokerage Fees and Compensation; Drafting Le-gal Instruments; Sales Contract Forms; Reporting Criminal Convictions; Agency Disclosure. (Agency Agreements covered under 1.G; Designated Agency covered under 1.E.) D. Prohibited Acts Disciplinary Actions (by Commission); Making False Promises; Improper Brokerage Commissions; Unworthiness and Incompetence; Improper, Fraud-ulent or Dishonest Dealing; Practice of Law; Other Prohibited Acts. (Misrepresentation and Omission and Confl ict of Interest covered under 1.E.) E. Handling and Accounting for Trust Funds Defi nition of Trust Funds; Trust Accounts; Depos-iting Trust Funds; Use and Disbursement of Trust Funds; Recordkeeping and Accounting. F. North Carolina Time Share Act Project Registration; License Required (for time share brokers); Defi nitions; Public Off ering State-ment; Purchaser’s Right to Cancel; Escrow Require-ments; Handling and Accounting of Funds and Other Law/Rule provisions listed above. 4. REAL ESTATE FINANCE A. Mortgages and Deeds of Trust Basic Finance Concepts and Terminology; Th e Mortgage Note and the Mortgage (Deed of Trust) Instrument (Essential and Common Provisions); Loan Payment Plans; Rights of Parties; Mortgage Priorities; Sales of Properties with Existing Mort-gages. B. Financing Methods Conventional and “Government” Mortgage Loans, including FHA, VA, Rural Development, Farm Service Agency, and N.C. Housing Finance Agen-cy (Characteristics, Major Programs and Payment Plans, Qualifi cation Requirements); Other Types of Mortgage Loans and Financing Methods. C. Financing Practices and Legislation Government Monetary Policy; Direct Sources of Financing; Th e Secondary Mortgage Market; Loan Qualifi cation Practices/Procedures; Federal Legisla-tion (Truth-in-Lending Act and Others). 5. REAL ESTATE VALUATION (APPRAISAL) A. Basic Valuation Concepts and Real Estate Economics Terminology; Concepts of Value; Forces and Fac-tors Aff ecting Value; Economic Principles of Value; Regulation of Appraisals. B. Methodology (Appraisal Methods) Th e Valuation Process (in General); Uniform Resi-dential Appraisal Report (URAR); Terminology, General Use, and Procedures associated with the Sales Comparison, Cost and Income Approaches; Comparative Market Analysis (CMA). 6. REAL ESTATE MATHEMATICS A. Finance Calculations Principal and Simple Interest; Monthly Loan Pay-ment; Total Interest over Life of Loan; Debt Re-duction; Loan Fees; Points; Discount; Yield; Loan Value; Loan-to-Value Ratio; Qualifying a Buyer. B. Appraisal Calculations Calculations related to Sales Comparison Approach and Income Capitalization Approach. C. Miscellaneous Calculations Brokerage Commissions; Sale Price/Rental Amount Needed to Provide Specifi ed Net to Seller/Landlord; Profi t/Loss on Sale of Real Estate; Equity; Area; Real Estate Taxes; Special Assessments; Calculation of Excise Tax; Federal Income Taxation of Home Ownership and Sale of Home. D. Closing Statement Prorations/Calculations Miscellaneous Prorations and Other Calculations; Separate Sellers’ and Buyers��� Closing Statement Problems. E. Complete Closing Statement Problem Th is requires applicants to perform multiple cal-culations and answer several questions based on the information provided to the applicant. Th is problem may be presented in various formats and may require applicants to utilize a provided blank HUD-1 Settlement Statement form in order to an-swer the questions. Examination Forms Th e Real Estate Commission utilizes several diff erent forms of the examination simultaneously and also changes these forms regularly. Th us, when more than one candidate is being tested at an exam center, it is likely that the can-didates will be taking diff erent forms of the examination. In addition, a candidate who fails the examination is given a diff erent examination form when he/she retakes the ex- Real Estate Licensing in North Carolina 13 amination. While each form of the examination contains mostly diff erent individual questions, the topics tested are the same on each form and each examination form is of equal diffi culty. Number and Value of Questions Th e examination consists of 115 questions. Only 110 of the questions will be scored. Five of the 115 questions are pretest questions (new unscored questions) that are placed randomly within the examination. All scored questions have equal value. Pretest questions are included to gather performance data on new questions in order that the Commission can determine if the new questions are appropriate to be used as scored questions on future examinations. Results of pretest questions will be reported only to the Commission and will be excluded from scoring of the 110 questions that deter-mine whether the candidate passes the examination. Pretest questions may appear in various sections of the exam, and candidates will not be able to distinguish pretest items from the questions that will be scored. Th e examination is divided into six sections as shown below. Th e number of questions in each of the six examina-tion sections may vary within the ranges shown below for any particular examination, but the total number of scored questions will always be 110. Section Number of Scored Questions Real Estate Law and Bro-kerage Practice 40 - 48 Miscellaneous Topics Re-lated to Real Estate 9 - 13 N.C. Real Estate License Law, Commission Rules and Trust Account Guide-lines 9 - 13 Real Estate Finance 12 - 16 Real Estate Valuation (Ap-praisal) 8 - 12 Real Estate Mathematics 17 - 23 TOTAL 110 Passing Requirement: In order to pass the real estate licensing examination applicants must at-tain a score of at least 75%, which means that 82 of the 110 scored questions must be answered cor-rectly. Helpful Hints Pace yourself. Read each question very carefully, but do not spend too much time on any one question. Th e ques-tions involving “Real Estate Mathematics” (last section of examination) will require more of an applicant’s time than other questions, so allow plenty of time for that section of the examination. If you are stumped by a particular ques-tion, mark it for later review and go on with your examina-tion; then return to your marked “problem questions” after you have answered the other questions. If uncertain as to the correct answer, make an educated guess; a question left blank will be automatically scored as incorrect. SCHEDULING AN EXAMINATION Applying for Examination As described in the earlier APPLICATION PROCESS section, a license applicant must fi rst fi le an application to the North Carolina Real Estate Commission and be found qualifi ed to take the examination. IMPORTANT NOTE: See the APPLICATION PROCESS section at the beginning of this book-let. Notice of Examination Eligibility Valid for 180 Days If the Commission determines that you meet the quali-fi cation requirements, you will be issued a “Notice of Ex-amination Eligibility” valid for 180 calendar days from the date it is issued. Your examination eligibility expiration date will be prominently indicated on the notice. Your notice of examination eligibility is valid for taking the exami-nation ONE time only (See the Expedited Reapplication and Exam Rescheduling subsection of this booklet for information about re-applying for a subsequent exami-nation). If your application is complete, every eff ort will be made to mail your notice of examination eligibility to you within 5-7 business days after receipt of your application by the Commission. Remember that it may take 2-3 business days for your application to reach the Commission and 2-3 busi-ness days for the notice of examination eligibility to reach you. Th e amount of time required to process applications varies with the volume of applications, so please allow at least 10 business days after mailing your application to the Commission before you call to check on the status of your application. To be scheduled for examination, you must contact PSI after receiving your notice of examination eligibility. (See the Making an Examination Appointment subsection of this booklet.) Walk-in testing is not available. 14 Real Estate Licensing in North Carolina You should schedule your examination promptly after receiving your notice of examination eligibility. You must take the examination on or before a business day prior to the expiration of your 180-day period of examination eligibility. Th e 180-day period of examination eligibility will NOT be extended for any reason. DO NOT DELAY SCHEDUL-ING YOUR EXAMINATION UNTIL YOUR 180-DAY PERIOD IS NEARLY OVER. Th e 180-day period is intended to accommodate appli-cant preferences in scheduling examinations and emergen-cies that may arise soon after being scheduled for an exami-nation. If you wait until the 180-day period is nearly over to schedule your examination, PSI may not be able to schedule you for examination on a date and at a location that is con-venient for you, and you may even risk forfeiture of applica-tion and examination fees. Examination Fee A separate $66 examination fee is required in addi-tion to the $30 license application fee. Th e $66 exami-nation fee is payable directly to PSI when the applicant contacts PSI to schedule his/her examination. Do NOT submit the $66 fee to the Real Estate Commission. Pay-ment may be made by credit card at the time you contact PSI by telephone or online to schedule your examination, or payment may be made to PSI in advance by mail. Once paid, this examination fee is nonrefundable. (See important payment instructions in the Making an Examination Ap-pointment subsection of this booklet.) Examination Center Locations You may select an exam center subject to availability when you contact PSI to schedule an examination. PSI op-erates exam centers for administering the North Carolina real estate license examination in the following cities: Asheville Charlotte Fayetteville Greenville Raleigh Virginia Beach, VA Wilmington Winston- Salem Tests are given only at these locations. Out-of-state testing is not permitted except at Virginia Beach, VA. Days of Operation: PSI exam centers will operate on most weekdays and Saturdays (other than on holiday weekends) depending on demand. Examinations are ad-ministered in the mornings at all sites and in the after-noons at some sites depending on demand. Making an Examination Appointment Applicants have the option of scheduling an examina-tion with PSI, using a VISA or MasterCard, either online or by telephone. Th e examination fee must be paid at the time of reservation. Examination fees are non-refundable and non-transferable, except as detailed in the Postponing an Examination Appointment subsection of this booklet. Ap-plicants who cannot or do not wish to use a credit card to pay the examination fee may pay the fee by mail and then use the telephone or online systems to actually schedule the examination. Paying by mail will, however, require an addi-tional one to two weeks for processing before the applicant can actually schedule an examination. When scheduling by telephone or online, you may schedule your examination as early as two working days af-ter you call if space is available at the exam center of your choice and you have not previously taken the examination. In almost all cases you will be able to take an examination at the exam center of your choice within 7 calendar days of calling PSI unless you request a later appointment or have previously taken the examination. (For scheduling a second or subsequent examination, see the Expedited Reapplication and Exam Rescheduling subsection of this booklet.) Preparing to Contact PSI When scheduling by telephone or online, you will need to do the following before you contact PSI: 1. Have your social security number available. 2. Have your VISA or MasterCard available. 3. Have your ‘Notice of Examination Eligibility” available. 4. Have a calendar available and plan alternative exam appointment dates. PSI will make every eff ort to schedule the exam center location and date that is most convenient for you, but you may need a couple of alternative dates selected in advance. 5. Be sure you are ready to schedule your examina-tion date when you contact PSI. Once paid (i.e., once your credit card is charged for the examination fee by PSI’s online or telephone registration system), an examination fee is NOT REFUNDABLE and credit for the fee may not be transferred to an-other person. Scheduling Online www.psiexams.com Contact the PSI website at www.psiexams.com and fol-low the instructions to pay the examination fee and sched-ule your examination. Real Estate Licensing in North Carolina 15 Scheduling By Telephone Call 1-800-733-9267 [1-800-RE-EXAMS] You may schedule an examination by calling PSI at the above number 24 hours a day, 7 days a week and using PSI’s automated voice response system. You should be able to fol-low the instructions to pay the nonrefundable examination fee and schedule your examination using the automated sys-tem. If you need assistance of any kind from a customer ser-vices representative, call Monday through Friday, between 7:30 a.m. and 8:00 p.m. and Saturday, between 11:00 am and 5:00 pm, Eastern time. A PSI registrar will ask you for information on your “Notice of Examination Eligibility” form and will schedule your appointment. After you have made your appointment, you may call PSI’s automated response system again at any time to verify your examination appointment or to receive directions to the examination center. Sending Examination Fee by Mail (Scheduling by Telephone or Online) If you would prefer to register and make your examina-tion fee payment to PSI by cashier’s check, money order or company check, you may do so by mail after you receive your Notice of Examination Eligibility from the Real Estate Commission. Be sure to include all of the following with your written registration request to PSI, taking care to write clearly and legibly: • Your name and social security number (applicant identifi cation number) exactly as they appear on your Notice of Examination Eligibility; • Your mailing address; • Your daytime and evening phone numbers (with area code); • A money order, company check or cashier’s check payable to PSI in the amount of $66 with your social security number (applicant identifi cation number) from your “Notice of Examination Eligibility” print-ed clearly on your check or money order to assure that your payment is properly assigned. Mail the required information and your examination fee payment to: PSI Services 3210 East Tropicana Avenue Las Vegas, Nevada 89121 CASH, PERSONAL CHECKS, MASTERCARD, OR VISA ARE NOT ACCEPTED BY MAIL. Upon receipt of the required information and examina-tion fee payment, PSI will send you a confi rmation notice and you will be able to schedule your examination via PSI’s automated telephone system (or online when that system is available). Be sure to allow at least two weeks for process-ing of your registration and fee. If you do not receive your confi rmation notice from PSI within two weeks, call (800) 733-9267 to verify your status. Special Examination Accommodations Persons with a disability (physical or mental impair-ment) that substantially limits their ability to take the ex-amination in the normal manner (by computer) or under normal testing conditions may request appropriate special accommodations in testing method or procedure. “Physi-cal impairment” warranting special accommodation may be any of a broad range of physiological disorders or condi-tions. “Mental impairment” may be any of a broad range of mental or psychological disorders or conditions. Docu-mentation of the disability in the form of a signed statement from an appropriate professional will be required in order to obtain the special accommodation. Also, the accommoda-tion requested must be reasonable and appropriate for the particular disability. A few examples of special accommoda-tions are: extended time (for a person with a learning dis-ability); a large print paper and pencil examination for a vi-sually impaired person; and additional breaks (for a person with low blood sugar levels). Persons wanting to request a special examina-tion accommodation based on a disability must do so on a “Request for Special Examination Ac-commodation” form available from the Commis-sion Offi ce. The completed request form should be fi led, if possible, with the license application and must be received in the Commission Offi ce at least 30 days prior to expiration of the applicant’s examination eligibility period and before the ap-plicant schedules a testing date with PSI. Upon receipt of the completed request form, the request will be promptly reviewed and the applicant will be contacted to discuss whether the requested ac-commodation can be provided. TAKING THE LICENSE EXAMINATION Reporting to Examination Center Applicants will be advised by PSI of the time to report for their examination when they schedule a date with PSI to take their examination. PSI holds most examinations in the morning, but may schedule afternoon examinations at some 16 Real Estate Licensing in North Carolina centers if demand makes this necessary. It is very important that applicants allow plenty of extra time to deal with traffi c delays and still arrive at the center on time. Make a note of the reporting time and DO NOT BE LATE! Late arrival will result in forfeiture of both your application and exami-nation fees. (See Forfeiture of Fees in the OTHER EXAMI-NATION INFORMATION section of this booklet.) Exam Center Addresses and Directions Note: Th e following directions are intended to sup-plement but not substitute for current street/road maps. Retail establishments cited as landmarks may be subject to change. If you are unfamiliar with the specifi c area and location of your test center, be sure to consult a reli-able map. ASHEVILLE 1306 C Patton Avenue Asheville, NC 28806 From I-40 take exit 44, Smokey Park Highway (US 19/23), and turn left. Proceed north/east approx 3 miles. (Th e test center is in a multi-building complex between Haywood Rd and Druid). Turn right onto Haywood Rd at intersection of Patton (19/23) and Haywood Rd. (Swan-nanoa Cleaners on right.) Proceed approximately 0.2 miles and turn left onto Parkwood. Follow building numbers to 1306 –approximately the fi fth building complex on right, past the BB&T bank. From I-240 exit 3A to 19/23 (Patton Ave) and proceed south approx 2 miles. (Th e test center is in a multi-building complex between Druid and Haywood Rd.) Take a left onto Druid (Burger King is on the left), then fi rst right. Continue past post offi ce, proceed after the stop sign and take fi rst left into parking lot of building #1306. CHARLOTTE Tyvola Executive Park I 5701 Westpark Dr. #202 Charlotte, NC 28217 From I-77S towards Columbia, exit Tyvola Road (Exit #5). Turn left at Tyvola Road. Make a right at Westpark Dr. From I-77N, exit Tyvola Road (Exit #5). Bear right at Tyvola Road. Turn right at Westpark Dr. FAYETTEVILLE 3724 Sycamore Dairy Road, Suite 128 Arbor Alley Building Fayetteville, NC 28303 From the north, take I-95 South. Merge onto US 301/I- 95 Business Route South towards Fayetteville/Fort Bragg/ Pope AFB. Turn right onto NC-210/NC 24 Grove St. which becomes Rowan St. From Rowan St., turn right onto Bragg Blvd. Turn left onto Sycamore Dairy Road. Th e test center is on the right of the Arbor Alley strip mall on the north side (between Pricilia’s and the ABC store). From the south, take I-95 North to NC 24 West. NC 24 West becomes Bragg Blvd. (See above directions to test center from Bragg Blvd.) From the northwest, take NC-87 South to NC-24 E/ Bragg Blvd. Continue on NC-24 E/Bragg Blvd beyond the intersection with Hwy 401 Bypass. Turn right onto Bargain Street and proceed to Sycamore Dairy Road. From the southwest, take US 401 North and turn left onto 401 Bypass (Skibo Road). Continue on 401 Bypass/ Skibo Road. Turn right onto Legend Ave; turn left onto Sycamore Dairy Road. Th e test center is on the left of the Arbor Alley strip mall on the north side (Between Pricilia’s and the ABC store). GREENVILLE, NC Charles Center 2404 South Charles Blvd., Suite B Greenville, NC 27858 From the south, proceed north on State Highway 11, and merge to the right onto Greenville Blvd SE (US264/ State 43). Turn right on Charles Blvd. From the east, proceed west on US 264 and turn left onto Greenville Blvd SE. Turn left on Charles Blvd. From the west, proceed east on US 264. Turn right on Memorial Drive. Turn left on Greenville Blvd. Turn right on Charles Blvd. RALEIGH 5711 Six Forks Road, Suite 208 Raleigh, NC 27609 From I-440, exit Six Forks Road ( Exit #8) and proceed north. Turn left on Loft Lane, then right into the fi rst drive-way. Real Estate Licensing in North Carolina 17 VIRGINA BEACH, VA Pembroke IV Building 291 Independence Blvd, Suite 140 Virginia Beach, VA 23462 From I-264, merge onto S. Independence Blvd/VA-225 N via Exit 17B toward Pembroke Area. Make a u-turn at Broad St. onto Independence Blvd/VA-225 S. Th e site is near the Pembroke Mall. WILMINGTON Judge’s Road Business Park 311 Judge’s Road, Suite 8D Wilmington, NC 28405 When Interstate 40 ends, it merges with State Highway 132 (College Road). Exit Market Street (Highway 17) and proceed northeast toward Jacksonville, approximately 1 mile. Turn left at Judge’s Road. As you approach Judge’s Road Business Park, you will see a dozen brick buildings housing industrial units. Turn left into the Business Park and proceed to the third aisle. Turn right down the aisle for Building 8. Suite 8D is on the left. Overfl ow parking is available on the street. WINSTON-SALEM 1540 Westbrook Plaza Drive, Suite 103 Winston-Salem, NC 27103 From Interstate 40, exit 189, Stratford Road and proceed north (left) approximately 100 yards. Turn left on West-brook Plaza Drive. Turn left at the four-way stop, continu-ing on to Westbrook Plaza Drive. Continue straight after the next traffi c light. Th e test center is approximately 1/4 mile past the light and on your left. Required Identifi cation and Signature You must provide two (2) forms of identifi cation at the exam center when you arrive to take your examination. Both must bear your signature. Th e primary form of identifi ca-tion must be valid (current), government issued, (i.e. driver’s license, state identifi cation card issued by North Carolina Department of Motor Vehicles, passport, or military ID) and must bear your legal name and photograph. You must also provide a sample of your signature on the sign-in list when you check in to take your examination. Failure to provide required identifi cation and signature at check-in will disqualify you from taking the examination. NOTE: Your name as it appears on your two required forms of identifi cation must be the same as the name under which you applied for your real estate license. No exceptions. If you recently changed your name, or if your last name includes a generation indicator (e.g., Jr., III), or is hyphenat-ed or is a double last name, you should make sure well in advance that you are prepared to comply with this requirement. Proctors are not allowed to admit for testing any candidate whose required forms of identifi cation are not consistent with the name on the license application. If your primary photo ID (e.g., driver’s license) shows a residence address in a state other than the one you provided on your license application, the proctor will report this to the Real Estate Commission for further inquiry in the event the state of residence was an issue in connection with your license qualifi cations. Items to Bring and Prohibited Items Applicants should wear soft-sole (quiet) shoes. In addition to required identifi cation, applicants should also bring the following items to the exam center: • A calculator (See important restrictions below). • A coat, sweater, or wrap of some kind (even during summer months). Note: PSI will provide scratch paper and pen-cils to license applicants taking the examination. In the testing area you may have with you only your wallet, eye glasses (if needed), medications, personal hygiene items, a calculator, and the materials provided by the exam proctor. Any other items in your possession, including purses or pocketbooks, must be left in (or returned to) your car. PSI’s examination proctor will not hold personal items for you while you take the examination and neither PSI nor the proctor will be responsible for items you leave in the waiting room at the exam center. Do not bring to the testing center any study materials or notes of any kind, briefcases, bookbags, backpacks, totebags, large purses or pocketbooks, scratch paper, tape recorders or players (includ-ing MP3 players), pagers, PDAs, cellular telephones, cameras or any other electronic communication, recording or photograph-ing device. Calculators: Calculators may be used in taking the exam-ination if they are silent, hand-held, and either battery- or solar-powered. Calculators that would permit an applicant to enter and retrieve words by use of a keypad or an al-phabet keyboard (that sometimes doubles as a numeric and function keyboard) are NOT permitted. No computer of any type is permitted. Applicants may not share calculators. Persons using battery-powered calculators should make cer- 18 Real Estate Licensing in North Carolina tain that their calculators contain fresh batteries or should bring an extra set of batteries. No additional testing time will be allowed for calculator malfunction. Your calculator must be checked and approved by the examination proctor before you take it into the testing area. Examination Rules • You may not enter the testing area until you have completed check-in and been directed to your as-signed seat by the examination proctor. • You may not smoke, eat, or drink beverages in the testing center. After testing begins, you may take breaks, not to exceed 10 minutes per break, in the designated break area or to use the restroom. How-ever, ONLY ONE MALE AND ONE FEMALE CANDIDATE will be allowed to take a restroom break at the same time. Smoking is prohibited in all buildings where PSI operates testing centers, and you may NOT leave the building to take a smoke break. While on break you must stay in the des-ignated break area (or restroom) and you may not leave the testing area until the end of testing. • You may not use telephones or communicate in any manner for any purpose with any person other than the exam proctor during the entire period of testing or while on break. • You must be as quiet as possible throughout the examination. You must not disrupt the quiet and orderly administration of an examination in any manner. • Cheating or attempting to cheat on the examination by any means, including both giving and receiving assistance, is prohibited. • Th e examination questions are the confi dential and exclusive property of the Real Estate Commission. Th erefore, you may not remove from the exam cen-ter any notes about examination questions and you may not communicate examination questions to other persons, including instructors. • All materials provided by the proctor for your use in taking the examination (for example, HUD-1 Form, scratch paper and pencils) must be returned to the proctor immediately upon completion of the examination. Th e same is true for any examination materials provided for use by a candidate receiving a special accommodation. Possession of any prohibited items or violation of any of the above examination rules or procedures shall be grounds for dismissal from the examination, invalidation of exami-nation scores, and/or denial of a real estate license. Check-in Procedures and Examination Tutorial Applicants should report to the Test Center thirty (30) minutes before the scheduled examination and check in with the test center proctor. Th e proctor will confi rm each applicant’s appointment, review the applicant’s identifi ca-tion and any other required documents and will photograph him/her for security purposes. Th e proctor will also check to make sure the applicant has not brought any prohibited items to the test center. After check-in, applicants will have an opportunity to take a tutorial on the PC on which the examination will be administered. Th e examination proctor will answer ques-tions at this time, but applicants should be aware that the proctors are not familiar with the content of the examina-tion or with the state’s licensing requirements. Th e applicant is responsible for knowing that he/she is supposed to take the North Carolina Real Estate Licensing Examination rather than any other test that may be off ered at the test center. Th e time spent on the tutorial will not reduce the examination time. Once applicants are familiar with the PC, they may begin the examination. Examination Time Check-in and the introductory tutorial may take as much as 30 minutes. Th e time allowed to take the examination is four (4) hours, including any breaks. Applicants who fail the examination will be allowed an additional hour to review their examination on the computer immediately after they receive their examination results. Th us, to be sure you have enough time for the examination review in the event you fail your examination, you should plan on spending up to six (6) hours at the exam center. Immediate Examination Results When you complete the examination, your pass/fail re-sults will be reported to you immediately on the computer terminal. If you do not pass the examination, you will also be advised of your results for each section of the exam and will be given the opportunity to immediately review your examination as described below. When you leave the exam center, you will be provided with a written score report. Examination Review by Failing Applicants An applicant who fails an examination may review his/ her examination at the testing center immediately following completion of the examination and receipt of the examina-tion results. Applicants who pass an examination may not review their examination. Th is will be the only opportunity for a failing applicant to review his/her examination. An ap- Real Estate Licensing in North Carolina 19 plicant eligible for examination review who does not review the examination at the testing center immediately following com-pletion of the examination will be deemed to have waived the right to review the examination. One hour will be allowed for the review. Applicants will fi rst be given an opportunity to review the questions they answered incorrectly by com-paring their responses to the correct responses, and then, if time remains, they may review questions they answered correctly. By analyzing their performance and identifying their weaknesses, it is hoped that applicants will be better prepared to pass any future examination. License Issuance for Passing Applicants Licenses are not issued at the exam centers or by PSI. Your examination results will be reported to the Real Es-tate Commission, and licenses will be issued by the Com-mission to persons who passed the examination and possess the requisite “Character” for licensure (see the discussion of “Character” under LICENSE QUALIFICATION RE-QUIREMENTS. Applicants passing the examination should expect to receive their license certifi cates within approximately 10 days following their examination date IF THERE ARE NO CHARACTER ISSUES AS-SOCIATED WITH THE APPLICATION. Please do not call the Commission Offi ce concerning license issuance until at least 10 calendar days after the examination date (45 days if there are character issues to be considered). OTHER EXAMINATION INFORMATION Postponing an Examination Appointment To cancel or postpone your examination appointment, your cancellation notice must be received two full working days before the scheduled testing date. To cancel an ap-pointment you may contact PSI by telephone (800-733- 9267), fax (818-247-3853) or email (NCRE@psionline. com). You may cancel and reschedule (postpone) an examination appointment only once without forfeiting both the license application fee and the examination fee. Applicants who change or cancel their reservations without proper notice will forfeit the examination fee. You should be aware of the remainder of your 180-day period of exami-nation eligibility period and you must reschedule and take the examination during that time. Excused Absences Under certain limited circumstances you may be excused from a scheduled examination for which you did not give PSI the required two-days advance notice of cancellation. You may be excused for missing a scheduled examination and rescheduled for a future date without having to fi le an-other license application and pay all required fees only if your absence was the direct result of an emergency situa-tion or condition that was beyond your control and that you could not have reasonably foreseen. You must send your re-quest for excused absence in writing to PSI promptly follow-ing your absence from your scheduled exam. Your request must set forth the reason for your absence and must include documentation verifying such reason (e.g. statement from physician). Your request for an excused absence will be de-nied if you cannot be rescheduled and examined prior to expiration of your 180-day period of examination eligibility. Written requests for an excused absence from an examina-tion must be mailed to: PSI Services 3210 East Tropicana Avenue Las Vegas, Nevada 89121 Forfeiture of Fees Your scheduled appointment to take the examination will be canceled, you will not be able to take the examina-tion, your license application will be canceled, and you will forfeit both the license application fee paid to the Commis-sion and the examination fee paid to PSI if you do any of the following: • Cancel your scheduled examination appointment with less than two working days’ notice to PSI; • Cancel your rescheduled examination appointment in an attempt to postpone an examination more than once; • Fail to schedule and take the examination on or be-fore the last business day prior to the expiration of your 180-day period of examination eligibility; • Arrive at the PSI exam center more than 30 minutes after the offi cial reporting time provided by PSI when you schedule your examination; • Fail to appear at the exam center for your scheduled examination appointment; or • Fail to present proper identifi cation and required signature upon arrival for a scheduled examination. (See the Required Identifi cation and Signature sub-section of this booklet.) 20 Real Estate Licensing in North Carolina Expedited Reapplication and Exam Rescheduling for Previously Scheduled Applicants for Examination Applicants who fail the licensing examination will not be allowed to retake the examination for at least 10 calendar days. When using the expedited reapplication and resched-uling system described below, the applicant will be limited to selecting an examination date that falls at least 10 days after the applicant’s most recent testing date. Most applicants who either fail the examination or fail to take their scheduled examination within their 180-day pe-riod of eligibility may utilize an expedited (“one-stop”) reap-plication and examination rescheduling procedure that con-veniently allows them to reapply for licensure and to sched-ule another examination by contacting PSI by telephone or online through PSI’s website. Eligible applicants may simply contact PSI, verify their eligibility for the “one-stop” procedure, pay by credit card a comprehensive reapplication/rescheduling fee of $96 ($30 application fee plus $66 examination fee), and immediately schedule another examination for a date that falls at least 10 days after the applicant’s most recent testing date. (PSI will remit $30 of the $96 fee to the Commission.) Th is procedure will save eligible applicants the trouble of fi ling another paper application and will expedite their ability to schedule a subsequent examination. [Note: For eligible ap-plicants seeking to reinstate a previously held license, the comprehensive “one-stop” reapplication/rescheduling fee is $121 ($55 application fee plus $66 examination fee)]. To know if you are eligible for this “one-stop” proce-dure, look at the date your examination eligibility expires as shown on your “Notice of Examination Eligibility.” Th is date will be 180 days from the date your last paper appli-cation was processed by the Commission. You may use the “one-stop” reapplication and examination rescheduling procedure at any time prior to the expiration date shown on your “Notice of Examination Eligibility”. Each time you use the “one stop” reapplication procedure and pay the re-quired fees you will receive an additional 180 days from the day you use the “one stop” system to schedule and take the licensing examination. You must wait until the day after you fail the examination (or fail to appear for a scheduled examination) to contact PSI and utilize the “one-stop” procedure. Should you contact PSI to use the “one-stop” procedure after the eligibility expira-tion date shown on your “Notice of Examination Eligibil-ity” has passed, PSI will not allow you to use that procedure and will instruct you to fi le another application with the Commission. If you use the “one-stop” procedure, you must still con-tact the Commission to update all information submitted with your last paper application to refl ect recent changes, especially changes related to: • Criminal charges or convic-tions • Professional license charges, disciplinary actions or denials • Liens or judgments. Applicants Who Must Refi le an Application with the Commission If the eligibility expiration date shown on your “Notice of Examination Eligibility”” (180 days from the date your application was processed by the Commission) has already passed and you do not pass or do not take the examination prior to expiration of your 180-day examination eligibility period, then you must fi le another paper application with the Commission and receive a new “Notice of Examination Eligibility” before you can contact PSI and schedule another examination. Th is is required in order that the Commis-sion may have reasonably current information regarding the applicant. Th e applicant’s qualifi cations will be reassessed when the subsequent application is fi led. Emergency Exam Center Closing If severe weather or another emergency forces the clos-ing of a PSI Exam center on your scheduled testing date, your examination will be rescheduled. PSI personnel will attempt to contact you in this situation; however, you may check the status of your testing schedule by calling (800) 733-9267 or by checking PSI’s website at www.psiexams. com. Every eff ort will be made to reschedule your examina-tion at a convenient time as soon as possible. NEW LICENSEE INFORMATION Issuance of Licenses After an applicant has satisfi ed the qualifi cation require-ments, passed the license examination (if required), and satis-fi ed the Commission that he or she is of good character (See “Consideration of Applicant’s Character” under “License Qualifi cation Requirements”), the applicant will be deemed qualifi ed for licensure. Persons who have satisfi ed the require-ments for licensure will be sent a license certifi cate and license pocket card to the address shown on the application form. Applicants passing the license examination should expect to receive their license certifi cates and pocket cards within ap-proximately seven (7) days after their license examination, if there are no character issues. Note: If any application raises character issues requiring special consideration, fi nal action on the license application will be delayed. (See section on “Consideration of Applicant’s Character” un-der “License Qualifi cation Requirements.”) It is unlawful for any person to engage in the business of a real estate broker until the date his or her license is issued by the Commission. Th e issuance date is displayed on the license certifi cate issued to each broker. Real Estate Licensing in North Carolina 21 Initial Licenses Are Inactive Provisional Broker Licenses All applicants who qualifi ed for licensure by examination are issued a “provisional broker” license (technically a broker license on “provisional” status) as defi ned in the “Introduc-tion�� section of this booklet. [EXCEPTION: An applicant licensed by examination who qualifi ed based on broker licen-sure in another jurisdiction is issued a broker license that is NOT on provisional status.] A “provisional broker” must be supervised by a “Broker-in-Charge” at all times when engaging in real estate brokerage activities. A provisional broker must satisfy the postlicensing education requirement described be-low in order to terminate the provisional status of his or her broker license. Activation of Initial Inactive Provisional Broker License A provisional broker license is initially placed on inactive status. Before the provisional broker can begin work in the real estate business, the provisional broker and his or her bro-ker- in-charge must fi le a “Notifi cation of Provisional Broker Supervision” form with the Commission Offi ce to have the provisional broker license placed on active status. Th is may be accomplished by accessing the Commission’s website at www. ncrec.state.nc.us and utilizing the interactive online form. Requirement for Active Status and Notifi cation of Changes in Employment or Address Any broker license, whether on “provisional” status or not, must be on “active” status at all times when the broker is performing real estate brokerage activities. To remain on “active” status, a licensee must satisfy in a timely manner both the postlicensing and continuing education requirements de-scribed below. Also, a licensee must notify the Commission within 10 days of any change in employment status (including a change in broker-in-charge) or in business or residence ad-dress. License Renewal All real estate licenses expire on the next June 30 following the date of issuance unless they are renewed by that date. Th is is true even if the license was issued in May or June. License renewal notices (post cards) are sent to licensees each year in May (in-cluded with new licenses issued in late May or June). Licensees should then renew their licenses either (1) online through the Commission’s website at www.ncrec.state.nc.us using a credit card or (2) by returning the renewal notice and renewal fee to the Commission so that the Commission receives the returned renewal notice and fee not later than June 30. Th e annual license renewal fee is $40. Licensees are strongly encouraged to renew ONLINE through the Commission’s website! Licensees are responsible for renewing their licenses in a timely manner even if they did not receive a renewal notice due to a business and/ or residence address change or other reason. Renewal notices for active brokers are sent to their business address (the address of the broker-in-charge of the offi ce with which they are affi liated). Renewal notices for inactive brokers are sent to their residence address on fi le with the Commission. No person may engage in real estate brokerage activities after his/her license has expired. A new license pocket card is sent to brokers each year upon the renewal of their licenses. Th is card verifi es renewal, but does not show whether the license is on active or inactive status. Whenever there is a change in active or inactive status, a separate notice is sent to the licensee. Postlicensing Education for Provisional Brokers All new provisional brokers must satisfy the postlicensing education requirement of 90 classroom hours of postlicens-ing education within three (3) years of the date of initial licensure. Th e postlicensing education is divided into three 30-hour postlicensing courses titled as follows: Broker Rela-tionships and Responsibilities, Contracts and Closing, and Se-lected Topics. Provisional brokers must complete at least one of the three courses during each of the fi rst three one-year peri-ods following the date of initial licensure and all three courses within three years of initial licensure. A provisional broker may elect to complete all three courses during the fi rst or sec-ond year after initial licensure. Upon completing all three postlicensing courses, the pro-visional status of the broker license will be terminated by the Commission. [Approved schools will report course comple-tion to the Commission, so licensees do not need to report course completion or request termination of provisional sta-tus.] If a provisional broker fails to complete a postlicensing course by the end of either the fi rst or second year after initial licensure, his or her license will be placed on inactive status until he or she remedies the education defi ciency and requests reactivation of his or her license. If a provisional broker fails to complete all three postlicensing courses by the end of the third year after initial licensure, his or her license will be CANCELED! To reinstate a canceled license, the former licensee will then have to comply with Commission requirements for reinstatement of such license. Th e postlicensing courses are only available as in-class courses through Commission-approved North Carolina schools. Because of the “hands-on” nature of the instruction required in these courses, they are not available online, by cor-respondence or by any other distance education method. As noted below, however, some resident and most nonresident provisional brokers may have additional options for satisfying some or all of the postlicensing education requirement. 22 Real Estate Licensing in North Carolina Postlicensing Course Waiver Based on “Equivalent Education/Experience” A vast majority of provisional brokers, especially resi-dent provisional brokers, must take the postlicensing courses. However, it is possible for some provisional brokers, especially those with substantial (i.e., several years) brokerage experience in another jurisdiction or substantial experience as a real estate attorney, to obtain a waiver of one or more of the postlicensing courses based on their “equivalent” experience. Th e specifi c course(s) waived would depend on the type of experience (e.g., residential sales, commercial brokerage, etc.). Provisional bro-kers, especially those who are nonresidents and do NOT have a North Carolina business or delivery address, may also be able to obtain “equivalent” credit for some postlicensing and continuing education courses taken in another jurisdiction. Nonresident provisional brokers may also have their “provi-sional” status removed (i.e., have all postlicensing education waived) if they obtain a broker license in another jurisdiction. Provisional brokers who think they may possess qualifi cations justifying a waiver may request from the Commission offi ce a copy of the Commission’s “Instructions for Requesting a Waiver of Postlicensing Education” which contains examples of possible grounds for a waiver and directions for making a request. Distinguishing Postlicensing Education and Continuing Education Postlicensing education should not be confused with continuing education. Postlicensing education is a one-time requirement that must be completed within the prescribed pe-riod of time after initial licensure. Continuing education must be completed on an ongoing basis each annual license period beginning with the fi rst full annual license period after initial licensure. Continuing Education Th e continuing education requirement is eight (8) hours per license period, including the mandatory Real Estate Up-date Course (4 hours) plus one 4-hour elective course. Licens-ees are generally required to satisfy the continuing education requirement each annual license period (July - June) in order to renew their licenses on active status. Th ere is however, a limited exception for new licensees. A newly licensed broker licensed by examination, reciprocity or reinstatement does not have to obtain CE during the license period he/she is originally licensed and only has to satisfy the 8-hour annual CE requirement prior to his/her second license renewal in order to renew his/her license on active status. A nonresident licensee who does NOT have a North Carolina business or delivery address and who also holds a li-cense in his/her resident jurisdiction may satisfy the continu-ing education requirement by maintaining the license in the other jurisdiction on active status and certifying such license status at the time of renewing his/her North Carolina license. On the other hand, a nonresident who has a North Caro-lina business or delivery address does NOT have this option and must take the Real Estate Update mandatory CE course in North Carolina and either take a North Carolina elective course or obtain equivalent elective course credit for a CE course(s) taken in another jurisdiction. LICENSING BY RECIPROCITY Under the authority granted the Real Estate Commission by Section 93A-9 of the Real Estate License Law, the Commis-sion has agreed to “Reciprocal Licensing Arrangements” with the licensing authorities in several other jurisdictions whereby resident real estate licensees in such jurisdictions (and some licensees of such jurisdictions who recently moved to North Carolina) may qualify for North Carolina real estate licenses without being required to pass the North Carolina real estate license examination. Similarly, resident North Carolina real estate licensees can qualify for licensure in these other states without taking a license examination in those states. Licensing by reciprocity (i.e., license examination waiver) is only available for resident licensees of a jurisdiction with which North Carolina has a reciprocal licensing arrangement, regardless of the amount of brokerage experience such a licensee may possess. Basic Qualifi cation Requirements for Licensure by Reciprocity Th e basic general qualifi cation requirements under North Carolina’s reciprocal licensing arrangements typically require that an applicant for licensure by reciprocity must either: (1) Be a resident licensee of a jurisdiction with which North Carolina has a reciprocal licensing arrangement (a “qualifying” jurisdiction), or (2) hold a license in a qualifying reciprocal jurisdiction and have moved from such a jurisdiction to North Carolina within not more than 90 days prior to submitting an application for a North Carolina license. A NORTH CARO-LINA RESIDENT CANNOT OBTAIN A NORTH CAR-OLINA LICENSE BY RECIPROCITY IF HE/SHE HAS LIVED IN NORTH CAROLINA FOR MORE THAN 90 DAYS. A reciprocal license applicant must also have obtained his/ her license in the “qualifying” jurisdiction by passing the ap-propriate real estate license examination in that jurisdiction or another jurisdiction with which North Carolina has reciproc-ity. All applicants must be found to possess the requisite char-acter for licensing. Note that in addition to these basic general requirements, there may be other unique specifi c requirements applicable under the various reciprocal agreements. Th e most signifi cant of these deal with NC resident licensees applying for a license in certain reciprocal jurisdictions and are noted under the list of reciprocal jurisdictions shown below. Real Estate Licensing in North Carolina 23 Reciprocal Jurisdictions Listed below are those jurisdictions (as of the printing of this booklet) with which the North Carolina Real Estate Com-mission has reciprocal licensing arrangements providing for waiver of the license examination: Alabama Kentucky South Carolina Arkansas Louisiana Tennessee Connecticut Mississippi West Virginia Georgia Nebraska Iowa Oklahoma Special Requirements/Provisions Alabama: License in “qualifying” jurisdiction may be ac-tive or inactive at time of application. (Applies to licensees applying to either NC or AL for a reciprocal license.) Also, an applicant for an AL reciprocal license may be a resident of either NC or AL and must provide proof of errors and omissions insur-ance coverage. Further, a reciprocal license issued by AL to a NC licensee may not be converted to a “resident” AL license unless the licensee satisfi es AL’s examination requirements. Louisiana, South Carolina, Tennessee and West Vir-ginia: NC resident brokers (not provisional) applying for a broker license by reciprocity in any of these states must satisfy that state’s requirement with regard to brokerage experience prior to licensure. Typically, the requirement is for either two or three years of brokerage experience. Tennessee also requires that NC resident brokers applying for a TN broker license provide proof of errors and omissions insurance coverage. Nebraska: NC resident licensees applying for a NE license by reciprocity must complete a three-hour course on NE law, rules and agency prior to licensure. (Course is available by correspondence.) License Equivalency A “salesperson” (or comparable level of licensee) in a qualifying reciprocal jurisdiction may obtain a North Carolina “provisional broker” license by reciprocity, and vice-versa. Similarly, a broker in a qualifying reciprocal jurisdiction may obtain a North Carolina broker license that is NOT on pro-visional status by reciprocity, and vice-versa. Application Requirements for Reciprocal License In general, licensees with currently active, resident licens-es in qualifying reciprocal jurisdictions (or who have moved to North Carolina from such a jurisdiction within 90 days) who wish to obtain North Carolina real estate licenses by reciprocity must complete and submit the following forms and information: 1. Application for Real Estate License (Form is in center of this booklet). Th is form and all required attachments must be submitted by all applicants. See the “APPLICATION PRO-CESS” section of this booklet. 2. Application Fee. A cashier’s check, certifi ed check or money order for the thirty dollar ($30) application fee must accompany the application. 3. Nonresident Supplement to Real Estate License Ap-plication (Form is in back of this booklet – not required if ap-plicant is a North Carolina resident). NOTE: Th e nonresident supplement form must be fi led in addition to the license applica-tion form in the center of this booklet. Th e nonresident supple-ment has three purposes: (1) It appoints the North Carolina Real Estate Commission to receive service on the applicant in any proceeding against the applicant arising under any laws of this state. (2) It provides the Commission information as to the manner in which a BROKER applicant intends to operate as a real estate licensee in North Carolina - as an independent broker, as a broker affi liated with a fi rm, as the sole proprietor of a fi rm, or as some other business entity. (Th is information is important because of the requirement that fi rms which are engaged in real estate brokerage in North Carolina must ob-tain separate real estate licenses.) (3) Finally, the form requires information to support the applicant’s claim of residency in a qualifying jurisdiction. 4. Notifi cation of Provisional Broker Supervision Form [provisional broker applicants only]. (Form is in back of this booklet). Reciprocal licenses issued to nonresidents are only issued on “active” status. Th is means that a nonresident provisional broker license applicant by reciprocity must have a North Carolina supervising broker (broker-in-charge) before the provisional broker can be issued a license by reciprocity. [North Carolina residents for less than 90 days applying for provisional broker licensure by reciprocity may also submit the supervision form with their application and be issued a license on active status, or they may omit the supervision form and they will be issued a license on inactive status and then have to activate that license before engaging in real estate practice.] 5. Certifi cation of License History. Th is must be an original offi cial certifi cation of license history issued by the real estate licensing agency in the applicant’s qualifying reciprocal jurisdiction using the standard form that agency uses for this purpose. A certifi cation of license history must be submitted for each jurisdiction in which the applicant has held a license within the past fi ve years. Th e certifi cation must set forth the current status of the applicant’s license (active, inactive, ex-pired, etc.), the date the applicant was licensed, a record of any disciplinary actions taken or pending against the applicant, and any other information relevant to the applicant’s license history. Th is certifi cation must have been issued by the applicant’s qualifying reciprocal jurisdiction within six months prior to the date of license application. [NOTE: Only an original offi cial certifi cation of license history is acceptable. A copy of a certi-fi cation of license history or the applicant’s real estate license or pocket identifi cation card is NOT acceptable.] 24 Real Estate Licensing in North Carolina ATTENTION: Some jurisdictions require sever-al weeks to fi ll orders for a certifi cation of license history. You must obtain and provide all required certifi cations of license history before your license application will be accepted. NO EXCEPTIONS. 6. Criminal Record Report. See the instructions on the license application form and in the “Criminal Record Re-port Requirement” paragraph under the “APPLICATION PROCESS” section elsewhere in this booklet. 7. Character Information. All explanatory information required of persons who answer “Yes” to the items on the license application relating to criminal off enses, professional license disciplinary action or liens/judgments. See the “AP-PLICATION PROCESS” section of this booklet. NOTE: Most reciprocal license applications are returned be-cause they are incomplete. Read carefully the application form completion and enclosure requirements in the “APPLICATION PROCESS” section of this booklet. Procedures and License Issuance – Reciprocal Licensing Properly completed applications for licensure by reciprocity will normally be processed within approximately 7-10 days of receipt by the Commission, if there are no character issues that require extra time for review by the Commission. Note, however, that broker applications often take longer if the broker will be operating in North Carolina as a fi rm and must also obtain a separate real estate fi rm license. Also, where an applying bro-ker must be designated as a broker-in-charge who will serve as the supervising broker of a provisional broker who is con-currently applying for licensure by reciprocity, the applications of both may require longer for processing. Finally, if there is a character issue that must be considered in connection with an application, action on that application will usually require more time, up to 45 days if consideration by the Commission at its next regular meeting is needed. Upon fi nding that a reciprocal license applicant is fully qualifi ed, including a determination that he or she possesses the requisite character for a North Carolina real estate license, a nonresident applicant will be issued a nonresident North Carolina real estate license and a North Carolina resident ap-plicant (who moved to North Carolina within 90 days prior to making application) will be issued a resident North Carolina real estate license. A nonresident licensee by reciprocity will receive all licensing privileges granted to resident real estate li-censees subject to any restrictions imposed by the reciprocal licensing arrangement with the licensee’s qualifying jurisdic-tion. Postlicensing Education and Continuing Education Requirements Very Important Notice: See the sections on “Postlicensing Education for Provisional Brokers” and “Continuing Educa-tion” under “NEW LICENSEE INFORMATION” that ap-pear immediately preceding the section on “LICENSING BY RECIPROCITY.” While there are some special policies regard-ing postlicensing education and continuing education for non-resident licensees with no North Carolina business or delivery address, there are no special exceptions to postlicensing and con-tinuing education requirements for reciprocal licensees. Licensees are treated the same for postlicensing and continuing education purposes regardless of whether their license was issued by reciprocity or by examination. Conversion of Reciprocal Nonresident License to Resident License All of North Carolina’s current reciprocal licensing ar-rangements except the arrangement with Alabama provide for the conversion of a nonresident license issued by reciprocity to a resident license without any additional education or ex-amination should the licensee move to the state that issued the nonresident reciprocal license. A NC licensee who obtains an AL reciprocal license may not convert the AL license to a “resident” license without fi rst satisfying AL’s examination requirements. North Carolina Licensees Wanting a Reciprocal License in Another Jurisdiction North Carolina licensees interested in obtaining a license by reciprocity in a jurisdiction with which North Carolina has a reciprocal licensing arrangement are advised to contact the real estate licensing agency in the jurisdiction to which they will be applying for complete details regarding that jurisdic-tion’s qualifi cation requirements. Th e addresses and telephone numbers for all real estate licensing agencies anywhere in the world may be found by accessing the website of the Associa-tion of Real Estate License Law Offi cials (ARELLO) at www. arello.org. LICENSE REINSTATEMENT License Expired Six Months Or Less Persons whose licenses have been expired for six months or LESS may reinstate their licenses by simply paying the $55 license reinstatement fee. Th ese persons are not required to fi le a license application or to meet any education or examination requirements to reinstate; however, they must have taken all required continuing education in order for their license to be placed on active status. Real Estate Licensing in North Carolina 25 License Expired More Than Six Months A person whose license has been expired for more than six months or whose license has been revoked or surrendered for any period of time must: (1) Application. Complete and fi le the Application for Real Estate License form contained in this booklet (including the required criminal record report, documentation of quali-fying education/experience and/or licensure in another state, and the “Nonresident Supplement” to the license application if applicable); (2) Fee. Pay the $55 fee for reinstatement of an expired license by certifi ed check, cashier’s check or money order ($30 for reinstatement of a revoked or surrendered license); (3) Education and/or Examination. Demonstrate to the satisfaction of the Commission that he/she possesses the cur-rent knowledge of real estate brokerage necessary to act in a manner that safeguards the public interest (see “Demonstrat-ing Current Knowledge of Real Estate Brokerage” in this sec-tion), and (4) Character. Satisfy the Commission that he/she pos-sesses the requisite character for licensing. (See the section in this booklet on “Consideration of Applicant’s Character” un-der “License Qualifi cation Requirements.”) NOTE: A former “salesperson” may request li-cense reinstatement as a “provisional broker.” Demonstrating Current Knowledge of Real Estate Brokerage Th e Commission has approved the guidelines described below regarding demonstration of current knowledge of real estate brokerage when a former licensee requests reinstatement of a license expired, revoked or surrendered for more than six months, regardless of whether the license was originally issued by examination or reciprocity. IMPORTANT NOTICE At the time of printing this booklet, the Commis-sion is developing revised license reinstatement guidelines regarding demonstration of current knowledge. Therefore, the guidelines presented below are subject to change at any time. License Expired, Revoked or Surrendered For More Than Six Months But Not More Than Two Years Provisional broker or broker applicants may demonstrate the current knowledge required for reinstatement by satisfying one of the following options: (1) Provisional Broker: Attending a minimum of 30 hours of a 75-hour broker prelicensing course (no course exam required) within six months prior to application -- Broker: Completing a 30-hour postlicensing course (including passing the course exam) within six months prior to application; OR (2) Passing the current license examination; OR (3) Possessing an active salesperson or broker license, as appropriate, in another state. License Expired, Revoked or Surrendered For More Than Two Years But Not More Than Five Years Provisional broker or broker applicants may demonstrate the current knowledge required for reinstatement by satisfying one of the following options: (1) Provisional Broker: Completing a 75-hour broker prelicensing course (including passing the course exam) within two years prior to application – Broker: Completing all three 30-hour postlicensing courses (including passing the course exams) within two years prior to application; OR (2) Passing the current license examination; OR (3) Possessing an active salesperson or broker license, as appropriate, in another state. License Expired, Revoked or Surrendered For More Than Five Years Applicants will be treated for qual |
OCLC number | 20975945 |