NORTH
CAROLINA
REAL ESTATE COMMISSION
Q. What is the Real Estate Commission?
A. The North Carolina Real Estate Commission (“Commission”)
is an independent state governmental agency. It should not be
confused with the North Carolina Association of REALTORS®
(or its local boards and associations) which is a trade organization
whose members are known as “REALTORS.®”
Q. What is the Real Estate Commission’s function?
A. The Commission’s primary function is to license and regulate
North Carolina’s real estate brokers (persons and firms who sell,
lease, etc. real estate for others).
The Commission also registers and regulates sales activities at time
share projects, where ownership in a single living unit (usually a
resort condominium) is shared by many persons. Time share agents
must be licensed.
Q. Can the Real Estate Commission give consumers legal advice
or help them settle disputes with real estate brokers?
A. No. The Commission cannot enforce contracts or require real
estate brokers to fulfill promises, reimburse money, or perform other
acts. Persons who feel that money is owed to them in a real estate
transaction or that a sales contract, lease, etc. has been breached
should consult their private attorney for advice and assistance.
REAL ESTATE COMMISSION
EDUCATIONAL PROGRAMS/PUBLICATIONS
• North Carolina Real Estate Manual. Reference book for real estate
practitioners and broker course students. Available in print, CD-ROM or
as a Web site subscription.
• Residential Square Footage Guidelines. How to measure, calculate and
report the living area of residential buildings.
• Real Estate Licensing in North Carolina. Free booklet containing
information on real estate licensing and the License Application form.
• North Carolina Real Estate License Law and Commission Rules.
Contains the Real Estate License Law, Commission rules, Trust
	
Account Guidelines and Study Guide.
• Question and Answer brochures addressing topics affecting real estate
brokers and consumers: (English and Spanish versions) Tenant Security
Deposits, Fair Housing, Renting Residential Real Estate; (English
only) Condos and Townhouses, Home Inspections, Purchasing
Coastal Real Estate in North Carolina, Residential Subdivisions
and Planned Communities, Earnest Money Deposits, Real Estate
Closings, Offer and Acceptance and Owning Vacation Rental Property.
• Residential Property Disclosure Statement. A form required for use by
owners of residential real estate in disclosing the condition of their
	
property to prospective purchasers.
• Working with Real Estate Agents. Brochure required for use in all real
estate sales transactions describing the various roles of real estate agents
(English and Spanish).
• Real Estate Bulletin. Newsletter distributed three times each year to
North Carolina real estate brokers.
• North Carolina Real Estate Agent Safety Guide. This booklet contains
dozens of tips for real estate brokers to promote safety in business
	
practice and procedure.
• Basic Trust Account Procedures Course and Trust Account
Procedures for Resort Property Managers Course. Courses conducted
by Commission staff for North Carolina real estate brokers and trust
account bookkeepers; $45 per course; four (4) hours of continuing
education elective credit is awarded for completing either course.
• Broker-In-Charge Course. 12-hour course conducted for new brokers-in-
charge of real estate offices by Commission staff; $110 per course.
• Broker-In-Charge Guide. Reference publication for brokers-in-charge
of real estate offices and the text for the Broker-in-Charge Course.
Q. What types of consumer complaints should be reported to the
Real Estate Commission?
A. Buyers, sellers, landlords, tenants and other persons involved in
real estate transactions who believe that they have been defrauded or
victimized by the improper or incompetent acts of a real estate broker
should report their complaints to the Commission’s Legal Division.
Q. What happens when a complaint is filed with the Real Estate
Commission?
A. (1) Persons who wish to file complaints against real estate brokers
(including those associated with time share projects) should first
obtain a “Complaint Form” from the Commission Office or the
Commission’s Web site at www.ncrec.gov. (Use of this form enables
the Commission staff to more efficiently conduct its inquiry into the
more than 1,300 complaints received each year.)
(2) Complaints are reviewed by the Commission’s legal staff and,
if appropriate, an investigation or other inquiry is conducted.
(3) If, following an investigation or other inquiry, it is determined that
there appears to be sufficient proof (“probable cause”) that the broker
has violated the Real Estate License Law or one of the Real Estate
Commission’s rules, a hearing is ordered. [Note: The Commission’s
hearings are conducted in accordance with the Administrative
Procedures Act, NCGS Chapter 150B.] During the hearing, the
Commission receives the sworn testimony of witnesses and affords
the broker the opportunity to answer the charges and present evidence
in his or her defense. The broker may be represented by an attorney,
and a staff attorney represents the State.
(4) If, based upon the evidence, the Commission finds that the broker
has violated the Real Estate License Law or rules, it can either (a)
reprimand the broker; (b) suspend the broker’s real estate license for
a definite period of time; (c) revoke the broker’s license; or (d) in the
case of time share transactions, fine the time share project’s developer.
[Note: Decisions of the Commission may be appealed by licensees
through the court system.]
Q. Can the Real Estate Commission assist persons whose funds
have been fraudulently taken by a real estate broker?
A. Persons who give downpayments, earnest money deposits and
other trust monies to licensed real estate brokers to be held pend-ing
the completion of real estate transactions, and whose funds are
converted or embezzled by the broker, may, under certain specific
conditions, receive compensation from the Real Estate Recovery
Fund which is maintained by the Commission.
Divisions and Personnel
REAL ESTATE COMMISSION
AND EXECUTIVE DIRECTOR
• Commission: Consists of nine volunteer members appointed by the
Governor and General Assembly. At least three members must be
real estate brokers, and at least two “public members” must not be
involved in the real estate brokerage business.
• Function: Responsible for policy-making with regard to licensing
and regulatory matters governing North Carolina real estate brokers.
Also conducts hearings and takes disciplinary action against licensees
for violations of the Real Estate License Law and Commission rules.
• Executive Director: Responsible for overall administration of the
Commission’s staff, programs and operations in accordance with
the policies and directives of the Commission.
ADMINISTRATION
Staff: Director of Administration, Financial Officer, Technology
Administrator, Network Administrator, Administrative Officer,
Publications Officer, Information Services Officer, and Support Staff.
Function:
1. Personnel and financial management, purchasing, and general
and technical support services (computer operations, digital
	
imaging, etc.).
2. Maintain records on real estate brokers, brokerage firms,
brokers-in-charge, and time share projects.
3. Process applications for annual renewal of licenses.
4. Coordinate Commission publications.
EDUCATION AND LICENSING
Staff: Director of Education and Licensing, Education and
Examination Officer, Education and Licensing Officer, Continuing
Education Officer, Legal Education Officer, and Support Staff.
Function:
1. Administer and monitor prelicensing and postlicensing
	
education program.
2. Process applications for real estate licenses.
3. Administer real estate license examination program.
4. Administer and monitor continuing education program.
Continued