North Carolina Real Estate Commission rules : chapter 93A

              North Carolina Real Estate License Law and Commission Rules 1
NORTH CAROLINA REAL ES­TATE
COM­MISSION
RULES
CHAPTER 93A
Statutory Authority: Se­ctions
93A‑3(c), 93A­‑4(
d), 93A‑33, and 93A­‑51
of the
North Carolina Real Estate License Law; and the North Carolina Ad­ministrative
Procedures Act.
NORTH CAROLINA ADMINIS­TRATIVE
CODE
TITLE 21
OCCUPATIONAL LICENSING BOARDS
CHAPTER 58
REAL ESTATE COMMISSION
Subchapter 58A
Real Estate Brokers
Section A.0100 General Brokerage
Rule
A.0101 Proof of Licensure
A.0102 Branch Office (Repealed)
A.0103 Licensee Name and Address
A.0104 Agency Agreements and Disclosure
A.0105 Advertising
A.0106 Delivery of Instruments
A.0107 Handling and Accounting of Funds
A.0108 Retention of Records
A.0109 Brokerage Fees and Compensation
A.0110 Broker-in-Charge
A.0111 Drafting Legal Instruments
A.0112 Offers and Sales Contracts
A.0113 Reporting Criminal Convictions and
Disciplinary Actions
A.0114 Residential Property Disclosure Statement
A.0115 Disclosure of Offers Prohibited
Section A.0200 General Provisions (Repealed)
Section A.0300 Application for License
Rule
A.0301 Form
A.0302 Filing and Fees
A.0303 Payment of Application Fees
A.0304 Experience Qualifications for Applicants
Section A.0400 Examinations
Rule
A.0401 Time and Place for Examinations
A.0402 Subject Matter and Passing Scores
A.0403 Re-applying for Examination
A.0404 Cheating and Related Misconduct
A.0405 Confidentiality of Examinations
A.0406 Examination Review
Section A.0500 Licensing
Rule
A.0501 Character (Repealed)
A.0502 Business Entities
A.0503 License Renewal; Penalty for Operating While
License Expired
A.0504 Active and Inactive License Status
A.0505 Reinstatement of Expired License, Revoked,
Surrendered or Suspended License
A.0506 Provisional Broker to be Supervised by Broker
A.0507 Payment of License Fees
A.0508 Duplicate License Fee (Repealed)
A.0509 Duplicate License Fee
Section A.0600 Real Estate Commission
Hearings
Rule
A.0601 Complaints/Inquiries/Motions/Other
Pleadings
A.0616 Procedures for Requesting Hearings When
Applicant’s Character Is In Question
Section A.0700 Petitions for Rules
Section A.0800 Rule Making
Section A.0900 Declaratory Rulings
Section A.1000 Schools
(Transferred to 21 NCAC 58C .0100)­Section
A.1100 Real Estate Pre‑Licensing
Courses (Transferred/Repealed. Transfers are
at 21 NCAC 58C .­0300)
Section A.1200 Certification of Real Estate
Instructors (Repealed)
Section A.1300 Private Real Estate Schools
(Transferred/Repealed. Transfers are at
21 NCAC 58C .0200)
Section A.1400 Real Estate Recovery Fund
2 North Carolina Real Estate License Law and Commission Rules
Section A.1500 Forms (Re­pealed)
Section A.1600 Discriminatory Practices
Prohibit­ed
A.1601 Fair Housing
Section A.1700 Mandatory Continuing
Education
Rule
A.1701 Purpose and Applicability
A.1702 Continuing Education Requirement
A.1703 Continuing Education for License Activation
A.1704 No Credit for Pre-Licensing Courses
A.1705 Attendance and Participation Requirements
A.1706 Repetition of Courses
A.1707 Elective Course Carry-Over Credit
A.1708 Equivalent Credit
A.1709 Extensions of Time to Complete
A.1710 Denial or Withdrawal of Continuing Educa-tion
Credit
A.1711 Continuing Education Required of Nonresi-dent
Licensees
Section A .1800 Limited Nonresident
Commercial Licensing
Rule
A.1801 General Provisions
A.1802 Definitions
A.1803 Requirements for Licensure; Application and
Fee
A.1804 Active Status
A.1805 Renewal
A.1806 Limitations
A.1807 Affiliation with Resident Broker
A.1808 Trust Monies
A.1809 Advertising
A.1810 Payment of Fees
Section A .1900 Postlicensing Education
Rule
A.1901 Purpose and Applicability
A.1902 Postlicensing Education Requirement
A.1903 Extensions of Time to Complete Postlicensing
Education
A.1904 Denial or Withdrawal of Postlicensing
Education Credit
Subchapter 58B
Time Shares
Section B.0100 Time Share Registration
Rule
B.0101 Application for Registration
B.0102 Registration Fee
B.0103 Renewal of Time Share Project Registration
B.0104 Amendments to Time Share Project Registration
B.0105 Notice of Termination
Section B.0200 Public Offering Statement
Rule
B.0201 General Provisions
B.0202 Public Offering Statement Summary
B.0203 Receipt for Public Offering Statement
Section B.0300 Cancellation
Rule
B.0301 Proof of Cancellation
Section B.0400 Time Share Sales Operations
Rule
B.0401 Retention of Time Share Records
B.0402 Time Share Agency Agreements and Disclo-sure
Section B.0500 Handling and Accounting of
Funds
Rule
B.0501 Time Share Trust Funds
Section B.0600 Project Broker
Rule
B.0601 Designation of Project Broker
B.0602 Duties of the Project Broker
Section B.0700 Time Share Forms
Rule
B.0701 Forms for Time Share Projects
Subchapter 58C
Real Estate Prelicensing Education
Subchapter 58D
Real Estate Appraisers (Repealed)
Subchapter 58E
Real Estate Continuing Education
Subchapter 58F
Brokerage Transition Course
North Carolina Real Estate License Law and Commission Rules 3
CHAPTER 58
REAL ESTATE COMMISSION
Subchapter 58A
Real Estate Brokers
SECTION A.0100
GENERAL BROKERAGE
A.0101 Proof of Licensure
(a) The annual license renewal pocket card issued by the
Commission to each licensee shall be retained by the licens-ee
as evidence of licensure. Each licensee shall carry his or her
pocket card on his or her person at all times while engaging in
real estate brokerage and shall produce the card as proof of li-censure
whenever requested.
(b) The qualifying broker of a firm shall retain the firm’s
renewal pocket card at the firm and shall produce it upon re-quest
as proof of firm licensure as required by Rule .0502.
(c) Every licensed real estate business entity or firm shall
prominently display its license certificate or facsimile thereof
in each office maintained by the entity or firm. A broker-in-charge
shall also prominently display his or her license certifi-cate
in the office where he or she is broker-in-charge.
(d) Every licensee shall include his or her license number
in agency contracts and disclosures as provided in Rule .0104
of this subchapter.
A.0102 Branch Office (Repealed)
A.0103 Licensee Name and Address
Upon initial licensure and at all times thereafter, every li-censee
shall assure that the Commission has on record the li-censee’s
current personal name, firm name, trade name, res-idence
address and firm address. Every licensee shall notify
the Commission in writing of each change of personal name,
firm name, trade name, residence address and firm address
within ten days of said change. All addresses shall be suffi-ciently
descriptive to enable the Commission to correspond
with and locate the licensee.
A .0104 Agency Agreements and Disclosure
(a) Every agreement for brokerage services in a real es-tate
transaction and every agreement for services connected
with the management of a property owners association shall
be in writing and signed by the parties thereto. Every agree-ment
for brokerage services between a broker and an own-er
of the property to be the subject of a transaction must be
in writing and signed by the parties from the time of its for-mation.
Every agreement for brokerage services between a
broker and a buyer or tenant shall be express and shall be re-duced
to writing and signed by the parties thereto not later
than the time one of the parties makes an offer to purchase,
sell, rent, lease, or exchange real estate to another. Howev-er,
every agreement between a broker and a buyer or tenant
which seeks to bind the buyer or tenant for a period of time
or to restrict the buyer’s or tenant’s right to work with other
agents or without an agent shall be in writing and signed by
the parties thereto from its formation. A broker shall not con-tinue
to represent a buyer or tenant without a written, signed
agreement when such agreement is required by this Rule. Ev-ery
written agreement for brokerage services of any kind in a
real estate transaction shall provide for its existence for a def-inite
period of time, shall include the licensee’s license num-ber,
and shall provide for its termination without prior notice
at the expiration of that period, except that an agency agree-ment
between a landlord and broker to procure tenants or re-ceive
rents for the landlord’s property may allow for automat-ic
renewal so long as the landlord may terminate with notice
at the end of any contract period and any subsequent renew-als.
For the purposes of this rule, an agreement between li-censees
to cooperate or share compensation shall not be con-sidered
an agreement for brokerage services and, except as re-quired
by Rule .1807 of this Subchapter, need not be memo-rialized
in writing.
(b) Every listing agreement, written buyer agency agree-ment
or other written agreement for brokerage services in a
real estate transaction shall contain the following provision:
The broker shall conduct all brokerage activities in regard to
this agreement without respect to the race, color, religion, sex,
national origin, handicap or familial status of any party or
prospective party. The provision shall be set forth in a clear
and conspicuous manner which shall distinguish it from oth-er
provisions of the agreement. For the purposes of this Rule,
the term, familial status, shall be defined as it is in G.S. 41A-
3(1b).
(c) In every real estate sales transaction, a broker shall, at
first substantial contact directly with a prospective buyer or
seller, provide the prospective buyer or seller with a copy of
the publication “Working with Real Estate Agents,” set forth
the broker’s name and license number thereon, review the
publication with the buyer or seller, and determine wheth-er
the agent will act as the agent of the buyer or seller in the
transaction. If the first substantial contact with a prospec-tive
buyer or seller occurs by telephone or other electronic
means of communication where it is not practical to provide
the “Working with Real Estate Agents” publication, the bro-ker
shall at the earliest opportunity thereafter, but in no event
later than three days from the date of first substantial contact,
mail or otherwise transmit a copy of the publication to the
prospective buyer or seller and review it with him or her at the
earliest practicable opportunity thereafter. For the purposes
4 North Carolina Real Estate License Law and Commission Rules
of this Rule, “first substantial contact” shall include contacts
between a broker and a consumer where the consumer or bro-ker
begins to act as though an agency relationship exists and
the consumer begins to disclose to the broker personal or con-fidential
information.
(d) A real estate broker representing one party in a trans-action
shall not undertake to represent another party in the
transaction without the written authority of each party. The
written authority must be obtained upon the formation of the
relationship except when a buyer or tenant is represented by
a broker without a written agreement in conformity with the
requirements of Paragraph (a) of this Rule. Under such cir-cumstances,
the written authority for dual agency must be re-duced
to writing not later than the time that one of the par-ties
represented by the broker makes an offer to purchase, sell,
rent, lease, or exchange real estate to another party.
(e) In every real estate sales transaction, a broker work-ing
directly with a prospective buyer as a seller’s agent or sub-agent
shall disclose in writing to the prospective buyer at the
first substantial contact with the prospective buyer that the
broker represents the interests of the seller. The written dis-closure
shall include the broker’s license number. If the first
substantial contact occurs by telephone or by means of other
electronic communication where it is not practical to provide
written disclosure, the broker shall immediately disclose by
similar means whom he represents and shall immediately mail
or otherwise transmit a copy of the written disclosure to the
buyer. In no event shall the broker mail or transmit a copy of
the written disclosure to the buyer later than three days from
the date of first substantial contact with the buyer.
(f) In every real estate sales transaction, a broker repre-senting
a buyer shall, at the initial contact with the seller or
seller’s agent, disclose to the seller or seller’s agent that the bro-ker
represents the buyer’s interests. In addition, in every real
estate sales transaction other than auctions, the broker shall,
no later than the time of delivery of an offer to the seller or
seller’s agent, provide the seller or seller’s agent with a written
confirmation disclosing that he represents the interests of the
buyer. The written confirmation may be made in the buyer’s
offer to purchase and shall include the broker’s license num-ber.
(g) The provisions of Paragraphs (c), (d) and (e) of this
Rule do not apply to real estate licensees representing sellers
in auction sales transactions.
(h) A broker representing a buyer in an auction sale trans-action
shall, no later than the time of execution of a written
agreement memorializing the buyer’s contract to purchase,
provide the seller or seller’s agent with a written confirmation
disclosing that he represents the interests of the buyer. The
written confirmation may be made in the written agreement.
(i) A firm which represents more than one party in the
same real estate transaction is a dual agent and, through the
brokers associated with the firm, shall disclose its dual agen-cy
to the parties.
(j) When a firm represents both the buyer and seller in the
same real estate transaction, the firm may, with the prior ex-press
approval of its buyer and seller clients, designate one or
more individual brokers associated with the firm to represent
only the interests of the seller and one or more other individ-ual
brokers associated with the firm to represent only the in-terests
of the buyer in the transaction. The authority for des-ignated
agency must be reduced to writing not later than the
time that the parties are required to reduce their dual agen-cy
agreement to writing in accordance with Paragraph (d) of
this Rule. An individual broker shall not be so designated and
shall not undertake to represent only the interests of one par-ty
if the broker has actually received confidential information
concerning the other party in connection with the transac-tion.
A broker-in-charge shall not act as a designated broker
for a party in a real estate sales transaction when a provision-al
broker under his or her supervision will act as a designated
broker for another party with a competing interest.
(k) When a firm acting as a dual agent designates an in-dividual
broker to represent the seller, the broker so designat-ed
shall represent only the interest of the seller and shall not,
without the seller’s permission, disclose to the buyer or a bro-ker
designated to represent the buyer:
(1) that the seller may agree to a price, terms, or any
conditions of sale other than those established by the
seller;
(2) the seller’s motivation for engaging in the trans-action
unless disclosure is otherwise required by stat-ute
or rule; and
(3) any information about the seller which the seller
has identified as confidential unless disclosure of the
information is otherwise required by statute or rule.
(l) When a firm acting as a dual agent designates an indi-vidual
broker to represent the buyer, the broker so designat-ed
shall represent only the interest of the buyer and shall not,
without the buyer’s permission, disclose to the seller or a bro-ker
designated to represent the seller:
(1) that the buyer may agree to a price, terms, or any
conditions of sale other than those established by the
seller;
(2) the buyer’s motivation for engaging in the trans-action
unless disclosure is otherwise required by stat-ute
or rule; and
(3) any information about the buyer which the buyer
has identified as confidential unless disclosure of the
information is otherwise required by statute or rule.
(m) A broker designated to represent a buyer or seller in
accordance with Paragraph (j) of this Rule shall disclose the
identity of all of the brokers so designated to both the buyer
and the seller. The disclosure shall take place no later than the
presentation of the first offer to purchase or sell.
(n) When an individual broker represents both the buyer
and seller in the same real estate sales transaction pursuant to
a written agreement authorizing dual agency, the parties may
provide in the written agreement that the broker shall not dis-close
the following information about one party to the other
North Carolina Real Estate License Law and Commission Rules 5
without permission from the party about whom the informa-tion
pertains:
(1) that a party may agree to a price, terms or any
conditions of sale other than those offered;
(2) the motivation of a party for engaging in the
transaction, unless disclosure is otherwise required by
statute or rule; and
(3) any information about a party which that party
has identified as confidential, unless disclosure is oth-erwise
required by statute or rule.
A.0105 Advertising
(a) Blind Ads. A licensee shall not advertise the sale, pur-chase,
exchange, rent or lease of real estate, for another or
others, in a manner indicating the offer to sell, purchase, ex-change,
rent, or lease is being made by the licensee’s principal
only. Every such advertisement shall conspicuously indicate
that it is the advertisement of a broker or brokerage firm and
shall not be confined to publication of only a post office box
number, telephone number, street address, internet web ad-dress
or e-mail address.
(b) Registration of Assumed Name. In the event that any
licensee shall advertise in any manner using a firm name or
an assumed name which does not set forth the surname of
the licensee, the licensee shall first file the appropriate certifi-cate
with the office of the county register of deeds in compli-ance
with G.S. 66-68 and notify the Commission in writing
of the use of such a firm name or assumed name.
(c) Authority to Advertise.
(1) A provisional broker shall not advertise any bro-kerage
service or the sale, purchase, exchange, rent or
lease of real estate for another or others without the
consent of his or her broker-in-charge and without in-cluding
in the advertisement the name of the broker
or firm with whom the provisional broker is associ-ated.
(2) A licensee shall not advertise or display a “for sale”
or “for rent” sign on any real estate without the con-sent
of the owner or his or her authorized agent.
(d) Business names. A licensee shall not include the
name of a provisional broker or an unlicensed person in the
name of a sole proprietorship, partnership or non-corporate
business formed for the purpose of real estate brokerage.
(e) A person licensed as a limited nonresident commercial
broker shall comply with the provisions of Rule .1809 of this
Subchapter in connection with all advertising concerning or
relating to his or her status as a North Carolina licensee.
A.0106 Delivery of Instruments
(a) Except as provided in Paragraph (b) of this Rule, ev-ery
broker shall immediately, but in no event later than five
days from the date of execution, deliver to the parties there-to
copies of any required written agency agreement, contract,
offer, lease, or option affecting real property.
(b) A broker may be relieved of his or her duty under
Paragraph (a) of this Rule to deliver copies of leases or rental
agreements to the property owner, if the broker:
(1) obtains the express written authority of the prop-erty
owner to enter into and retain copies of leases or
rental agreements on behalf of the property owner;
(2) executes the lease or rental agreement on a
pre‑printed form, the material terms of which may
not be changed by the broker without prior approv-al
by the property owner except as may be required
by law;
(3) promptly provides a copy of the lease or rent-al
agreement to the property owner upon reasonable
request; and
(4) delivers to the property owner within 45 days
following the date of execution of the lease or rental
agreement, an accounting which identifies the leased
property and which sets forth the names of the ten-ants,
the rental rates and rents collected.
A.0107 Handling and Accounting of Funds
(a) Except as provided herein, all monies received by a li-censee
acting in his or her fiduciary capacity shall be deposited
in a trust or escrow account maintained by a broker not later
than three banking days following receipt of such monies ex-cept
that earnest money deposits paid by means other than
currency which are received on offers to purchase real estate
and tenant security deposits paid by means other than curren-cy
which are received in connection with real estate leases shall
be deposited in a trust or escrow account not later than three
banking days following acceptance of such offer to purchase or
lease; the date of acceptance of such offer to purchase or lease
shall be set forth in the purchase or lease agreement. All mon-ies
received by a provisional broker shall be delivered immedi-ately
to the broker by whom he or she is employed, except that
all monies received by nonresident commercial licensees shall
be delivered as required by Rule .1808 of this Subchapter. A
licensee may accept custody of a check or other negotiable in-strument
made payable to the seller of real property as option
money only for the purpose of delivering the instrument to the
optionor-seller. While the instrument is in the custody of the
licensee, the licensee shall, according to the instructions of the
buyer-optionee, either deliver it to the seller-optionor or return
it to the buyer-optionee. The licensee shall safeguard the instru-ment
and shall be responsible to the parties on the instrument
for its prompt and safe delivery. In no event shall a licensee re-tain
such an instrument for more than three business days after
the acceptance of the option contract.
(b) In the event monies received by a licensee while act-ing
in a fiduciary capacity are deposited in a trust or escrow ac-count
which bears interest, the licensee having custody over
such monies shall first secure from all parties having an in-terest
in the monies written authorization for the deposit of
the monies in an interest-bearing account. Such authorization
shall specify how and to whom the interest will be disbursed,
and, if contained in an offer, contract, lease, or other transac-
6 North Carolina Real Estate License Law and Commission Rules
tion instrument, such authorization shall be set forth in a con-spicuous
manner which shall distinguish it from other provi-sions
of the instrument.
(c) Closing statements shall be furnished to the buyer and
the seller in the transaction not more than five days after
closing.
(d) Trust or escrow accounts shall be so designated by the
bank or savings and loan association in which the account is
located, and all deposit tickets and checks drawn on said ac-count
as well as the monthly bank statement for the account
shall bear the words “Trust Account” or “Escrow Account.”
(e) A licensee shall maintain and retain records sufficient to
identify the ownership of all funds belonging to others. Such re-cords
shall be sufficient to show proper deposit of such funds in
a trust or escrow account and to verify the accuracy and prop-er
use of the trust or escrow account. The required records shall
include: (1) bank statements.
(2) canceled checks which shall be referenced to the cor-responding
journal entry or check stub entries and to the
corresponding sales transaction ledger sheets or for rent-al
transactions, the corresponding property or owner led-ger
sheets. Checks shall conspicuously identify the pay-ee
and shall bear a notation identifying the purpose of
the disbursement.When a check is used to disburse funds
for more than one sales transaction, owner, or proper-ty,
the check shall bear a notation identifying each sales
transaction, owner, or property for which disbursement
is made, including the amount disbursed for each, and
the corresponding sales transaction, property, or owner
ledger entries. When necessary, the check notation may
refer to the required information recorded on a supple-mental
disbursement worksheet which shall be cross-ref-erenced
to the corresponding check. In lieu of retaining
canceled checks, a licensee may retain digitally imaged
copies of the canceled checks or substitute checks provid-ed
that such images are legible reproductions of the front
and back of such instruments with no smaller images
than 1.1875 x 3.0 inches and provided that the licens-ee’s
bank retains for a period of at least six years the origi-nal
checks, “substitute checks” as described in 12 C.F.R.
229.51 or the capacity to provide substitute checks as de-scribed
in 12 C.F.R. 229.51 and makes the original or
substitute checks available to the licensee and the Com-mission
upon request.
(3) deposit tickets. For a sales transaction, the deposit
ticket shall identify the purpose and remitter of the funds
deposited, the property, the parties involved, and a refer-ence
to the corresponding sales transaction ledger entry.
For a rental transaction, the deposit ticket shall identify
the purpose and remitter of the funds deposited, the ten-ant,
and the corresponding property or owner ledger en-try.
For deposits of funds belonging to or collected on
behalf of a property owner association, the deposit ticket
shall identify the property or property interest for which
the payment is made, the property or interest owner, the
remitter, and the purpose of the payment. When a single
deposit ticket is used to deposit funds collected for more
than one sales transaction, property owner, or property,
the required information shall be recorded on the ticket
for each sales transaction, owner, or property, or the tick-et
may refer to the same information recorded on a sup-plemental
deposit worksheet which shall be cross-refer-enced
to the corresponding deposit ticket.
(4) a payment record sheet for each property or inter-est
for which funds are collected and deposited into a
property owner association trust account as required by
Subsection (i) of this Rule. Payment record sheets shall
identify the amount, date, remitter, and purpose of pay-ments
received, the amount and nature of the obligation
for which payments are made, and the amount of any
balance due or delinquency.
(5) a separate ledger sheet for each sales transaction and
for each property or owner of property managed by the
licensee identifying the property, the parties to the trans-action,
the amount, date, and purpose of the deposits
and from whom received, the amount, date, check num-ber,
and purpose of disbursements and to whom paid,
and the running balance of funds on deposit for the par-ticular
sales transaction or, in a rental transaction, the
particular property or owner of property. Monies held as
tenant security deposits in connection with rental trans-actions
may be accounted for on a separate tenant secu-rity
deposit ledger for each property or owner of proper-ty
managed by the licensee. For each security deposit the
tenant security deposit ledger shall identify the remitter,
the date the deposit was paid, the amount, the tenant,
landlord, and subject property. For each disbursement
of tenant security deposit monies, the ledger shall identi-fy
the check number, amount, payee, date, and purpose
of the disbursement. The ledger shall also show a run-ning
balance. When tenant security deposit monies are
accounted for on a separate ledger as provided herein,
deposit tickets, canceled checks and supplemental work-sheets
shall reference the corresponding tenant security
deposit ledger entries when appropriate.
(6) a journal or check stubs identifying in chronological
sequence each bank deposit and disbursement of mon-ies
to and from the trust or escrow account, including the
amount and date of each deposit and a reference to the
corresponding deposit ticket and any supplemental de-posit
worksheet, and the amount, date, check number,
and purpose of disbursements and to whom paid. The
journal or check stubs shall also show a running balance
for all funds in the account.
(7) copies of contracts, leases and management agree-ments.
(8) closing statements and property management state-ments.
(9)  covenants, bylaws, minutes, management agree-
North Carolina Real Estate License Law and Commission Rules 7
ments and periodic statements relating to the man-agement
of a property owner association.
(10) invoices, bills, and contracts paid from the trust
account, and any documents not otherwise described
herein necessary and sufficient to verify and explain
record entries.
Records of all receipts and disburse­ments
of trust or escrow
monies shall be maintained in such a manner as to create an
audit trail from deposit tickets and canceled checks to check
stubs or jour­nals
and to the ledger sheets. Ledger sheets and
journals or check stubs must be reconciled to the trust or es-crow
account bank state­ments
on a monthly basis. To be suf-ficient,
records of trust or escrow monies must include a work-sheet
for each such monthly recon­ciliation
showing the ledger
sheets, journals or check stubs, and bank statements to be in
agreement and balance.
(f) All trust or escrow account records shall be made avail-able
for inspection by the Commis­sion
or its authorized repre-sentatives
in accor­dance
with Rule 58A .0108.
(g) In the event of a dispute be­tween
the seller and buyer
or land­lord
and tenant over the return or forfei­ture
of any de-posit
other than a residen­tial
tenant security deposit held by a
licensee, the licensee shall retain said deposit in a trust or es-crow
account until the licensee has ob­tained
a written release
from the par­ties
consenting to its disposi­tion
or until disburse­ment
is ordered by a court of competent jurisdiction. Alterna-tively,
the licensee may deposit the disputed monies with the
appropriate clerk of court in accordance with the provision of
G.S. 93A-12. If it appears to a licensee holding a disputed de-posit
that a party has abandoned his or her claim, the licensee
may disburse the money to the other claiming parties accord-ing
to their written agreement provided that the licensee first
makes a reasonable effort to notify the party who has apparent-ly
abandoned his or her claim and provides that party with an
opportunity to renew his or her claim to the disputed funds.
Tenant security deposit monies shall be disposed of in accor-dance
with the requirements of N.C.G.S. 42-50 through 56
and N.C.G.S. 42A-18.
(h) A licensee may transfer earnest money deposits in his or
her possession collected in connec­tion
with a sales trans­action
from his or her trust account to the closing attorney or other
settle­ment
agent not more than ten days prior to the antic­ipat­ed
settle­ment
date. A licensee shall not dis­burse
prior to settle-ment
any earnest money in his or her possession for any other
pur­pose
without the written consent of the parties.
(i) The funds of a property owner association, when collect-ed,
maintained, disbursed or otherwise controlled by a licens-ee,
are trust monies and shall be treated as such in the manner
required by this Rule. Such funds must be deposited into and
maintained in a trust or escrow account dedicated exclusively
for funds belonging to a single property owners association and
may not be commingled with funds belonging to other prop-erty
owner associations or other persons or parties. A licensee
who undertakes to act as manager of a property owner associa-tion
or as the custodian of funds belonging to a property own-er
association shall provide the association with periodic state-ments
which report the balance of association funds in the li-censee’s
possession or control and which account for the funds
the licensee has received and disbursed on behalf of the associ-ation.
Such statements must be made in accordance with the
licensee’s agreement with the association, but in no event shall
the statements be made less frequently than every 90 days.
(j) Every licensee shall safeguard the money or property of
others coming into his or her possession in a manner consistent
with the requirements of the Real Estate License Law and the
rules adopted by the Commission. A licensee shall not convert
the money or property of others to his or her own use, apply
such money or property to a purpose other than that for which
it was paid or entrusted to him or her, or permit or assist any
other person in the conversion or misapplication of such mon-ey
or property.
(k) In addition to the records required by paragraph (e) of
this rule, a licensee acting as agent for the landlord of a residen-tial
property used for vacation rentals shall create and main-tain
a subsidiary ledger sheet for each property or owner of
such properties onto which all funds collected and disbursed
are identified in categories by purpose. On a monthly basis, the
licensee shall reconcile the subsidiary ledger sheets to the corre-sponding
property or property owner ledger sheet.
(l) In lieu of maintaining a subsidiary ledger sheet, the li-censee
may maintain an accounts payable ledger sheet for each
owner or property and each vendor to whom trust monies are
due for monies collected on behalf of the owner or property
identifying the date of receipt of the trust monies, from whom
the monies were received, rental dates, and the corresponding
property or owner ledger sheet entry including the amount to
be disbursed for each and the purpose of the disbursement.
The licensee may also maintain an accounts payable ledger
sheet in the format described in paragraph (k) above for vaca-tion
rental tenant security deposit monies and vacation rental
advance payments.
A.0108 Retention of Records
Licensees shall retain records of all sales, rental, and oth-er
transactions conducted in such capacity, whether the trans-action
is pending, completed or terminated prior to its suc-cessful
conclusion. The licensee shall retain such records for
three years after all funds held by the licensee in connection
with the transaction have been disbursed to the proper par-ty
or parties or until the successful or unsuccessful conclusion
of the transaction, whichever occurs later. Such records shall
include contracts of sale, written leases, agency contracts, op-tions,
offers to purchase, trust or escrow records, earnest mon-ey
receipts, disclosure documents, closing statements, broker-age
cooperation agreements, declarations of affiliation, and
any other records pertaining to real estate transactions. All
such records shall be made available for inspection and repro-duction
by the Commission or its authorized representatives
without prior notice.
8 North Carolina Real Estate License Law and Commission Rules
A.0109 Brokerage Fees and Compensation
(a) A licensee shall not receive, either directly or indirect-ly,
any commission, rebate or other valuable consideration of
more than nominal value from a vendor or a supplier of goods
and services for an expenditure made on behalf of the licens-ee’s
principal in a real estate transaction without the written
consent of the licensee’s principal.
(b) A licensee shall not receive, either directly or indirect-ly,
any commission, rebate, or other valuable consideration of
more than nominal value for services which the licensee rec-ommends,
procures, or arranges relating to a real estate trans-action
for a party, without full and timely disclosure to such
party.
(c) In a real estate sales transaction, a broker shall not
receive any compensation, incentive, bonus, rebate, or other
consideration of more than nominal value:
(1) from his principal unless the compensation, in-centive,
bonus, rebate, or other consideration is pro-vided
for in a written agency contract prepared in
conformity with the requirements of 21 NCAC 58A
.0104.
(2) from any other party or person unless the broker
provides full and timely disclosure of the incentive,
bonus, rebate, or other consideration, or the prom-ise
or expectation thereof to the broker’s principal.
The disclosure may be made orally, but must be con-firmed
in writing before the principal makes or ac-cepts
an offer to buy or sell.
(d) Full disclosure shall include a description of the com-pensation,
incentive, bonus, rebate, or other consideration in-cluding
its value and the identity of the person or party by
whom it will or may be paid. A disclosure is timely when it
is made in sufficient time to aid a reasonable person’s deci-sion-
making.
(e) Nothing in this rule shall be construed to require a
broker to disclose to a person not his principal the compensa-tion
the broker expects to receive from his principal or to dis-close
to his principal the compensation the broker expects to
receive from the broker’s employing broker. For the purpose
of this Rule, nominal value means of insignificant, token, or
merely symbolic worth.
(f) The Commission shall not act as a board of arbitra-tion
and shall not compel parties to settle disputes concerning
such matters as the rate of commissions, the division of com-missions,
pay of brokers, and similar matters.
(g) Except as provided in (h) of this rule, a licensee shall
not undertake in any manner, any arrangement, contract,
plan or other course of conduct, to compensate or share com-pensation
with unlicensed persons or entities for any acts per-formed
in North Carolina for which licensure by the Com-mission
is required.
(h) A broker may pay or promise to pay consideration to
a travel agent in return for procuring a tenant for a vacation
rental as defined by the Vacation Rental Act if:
(1) the travel agent only introduces the tenant to the
broker, but does not otherwise engage in any activity
which would require a real estate license;
(2) the introduction by the travel agent is made in the
regular course of the travel agent’s business; and
(3) the travel agent has not solicited, handled or re-ceived
any monies in connection with the vacation
rental.
For the purpose of this Rule, a travel agent is any person
or entity who is primarily engaged in the business of acting
as an intermediary between persons who purchase air, land,
and ocean travel services and the providers of such services. A
travel agent is also any other person or entity who is permit-ted
to handle and sell tickets for air travel by the Airlines Re-porting
Corporation (ARC). Payments authorized hereunder
shall be made only after the conclusion of the vacation rent-al
tenancy. Prior to the creation of a binding vacation rent-al
agreement, the broker shall provide a tenant introduced
by a travel agent a written statement advising him or her to
rely only upon the agreement and the broker’s representations
about the transaction. The broker shall keep for a period of
three years records of a payment made to a travel agent in-cluding
records identifying the tenant, the travel agent and
their addresses, the property and dates of the tenancy, and the
amount paid.
(i) Nothing in this Rule shall be construed to permit a li-censee
to accept any fee, kickback or other valuable consid-eration
that is prohibited by the Real Estate Settlement Pro-cedures
Act (12 USC 2601 et. seq.) or any rules and regula-tions
promulgated by the United States Department of Hous-ing
and Urban Development pursuant to said Act or to fail to
make any disclosure required by said Act or rules.
A.0110 Broker-in-Charge
(a) Every real estate firm shall designate a broker to serve
as the broker-in-charge at its principal office and a broker to
serve as broker-in-charge at any branch office. No broker shall
be broker-in-charge of more than one office at a time. If a
firm shares office space with one or more other firms, one bro-ker
may serve as broker-in-charge of each firm at that loca-tion.
No office or branch office of a firm shall have more than
one designated broker-in-charge. A broker who is a sole pro-prietor
shall designate himself or herself as a broker-in-charge
if the broker engages in any transaction where the broker is re-quired
to deposit and maintain monies belonging to others in
a trust account, engages in advertising or promoting his or her
services as a broker in any manner, or has one or more other
brokers affiliated with him or her in the real estate business.
Maintenance of a trust or escrow account by a broker solely
for holding residential tenant security deposits received by
the broker on properties owned by the broker in compliance
with N.C.G.S. 42-50 shall not, standing alone, subject the
broker to the requirement to designate himself or herself as a
broker-in-charge. A broker desiring to be a broker-in-charge
shall declare in writing his or her designation as broker-in-charge
of an office to the Commission on a form prescribed by
North Carolina Real Estate License Law and Commission Rules 9
the Commission within 10 days following the broker’s desig-nation
as broker-in-charge of any office. The broker-in-charge
shall, in accordance with the requirements of G.S. 93A and
the rules adopted by the Commission, assume the responsibil-ity
at his or her office for:
(1) the retention of current license renewal pocket
cards by all brokers employed at the office for which
he or she is broker-in-charge; the proper display of li-censes
at such office in accordance with Rule .0101 of
this Section; and assuring that each licensee em­ployed
at the office has com­plied
with Rules .0503, .0504 and
.0506 of this Sub­chap­ter;
(2) the proper notification to the Com­mission
of any
change of business address or trade name of the firm
and the registration of any assumed busi­ness
name ad-opted
by the firm for its use;
(3) the proper conduct of advertising by or in the name
of the firm at such office;
(4) the proper maintenance at such office of the trust
or escrow account of the firm and the records pertain-ing
thereto;
(5) the proper retention and mainte­nance
of re­cords
relating to transac­tions
conducted by or on behalf of
the firm at such office, including those required to be
retained pursuant to Rule .0108 of this Section;
(6) the proper supervision of provisional brokers asso-ciated
with or engaged on behalf of the firm at such of-fice
in accor­dance
with the requirements of Rule .0506
of this Subchapter;
(7) the proper supervision of all licensees employed at
the office for which he or she is broker-in-charge with
respect to adherence to agency agreement and disclo-sure
requirements.
(b) When used in this Rule, the term:
(1) “Branch Office” means any office in addition to
the principal office of a broker which is oper­ated
in
connec­tion
with the broker’s real estate busi­ness;
and
(2) “Office” means any place of busi­ness
where acts
are performed for which a real estate li­cense
is required
or where monies received by a licensee acting in a fi-duciary
capacity are handled or records for such trust
monies are maintained.
(c) To qualify to become a broker-in-charge, a broker
shall:
(1) have a license on active status, but not on provi-sional
status;
(2) possess at least two years of full-time real estate
brokerage experience or equivalent part-time real es-tate
brokerage experience within the previous five
years or real estate education or experience in real es-tate
transactions that the Commission finds equiva-lent
to such experience; and
(3) complete the Commission’s 12 classroom hour
broker-in-charge course either within three years pri-or
to designation as a broker-in-charge or within 120
days following designation as a broker-in-charge.
By submission of a broker-in-charge declaration to the
Commission, a broker certifies that he or she possesses the
experience required to become a broker-in-charge and upon
acknowledgement by the Commission of a completed dec-laration,
the broker shall receive his or her broker-in-charge
designation and be authorized to act as a broker-in-charge.
Upon his or her designation as broker-in-charge and com-pletion
of the broker-in-charge course within the time peri-od
prescribed in Subparagraph (c)(3) of this Rule, the desig-nated
broker-in-charge acquires the eligibility to be re-des-ignated
as a broker-in-charge at any time in the future after
a period of not actively serving as a broker-in-charge with-out
having to again satisfy the qualification requirements
for initial designation stated in this Paragraph so long as the
broker continuously satisfies the requirements to retain such
eligibility described in Paragraph (e) of this Rule. A bro-ker-
in-charge designation shall be immediately terminated
if a broker-in-charge fails to complete the broker-in-charge
course during the required time period or if the Commis-sion
finds the broker-in-charge does not possess the required
experience. Upon the request of the Commission, a broker
shall provide to the Commission evidence that he or she
possesses the required experience. A broker who is removed
as broker-in-charge for failure to timely complete the Com-mission’s
12 hour broker-in-charge course must first com-plete
the 12 hour broker-in-charge course before he or she
may again be designated as broker-in-charge. A broker-in-charge,
upon written request of the Commission or a broker
who has been affiliated with the broker-in-charge within the
previous five years, shall provide the Commission or broker
an accurate written statement regarding the broker’s work at
the office of the broker-in-charge, including the dates of af-filiation,
average number of hours worked per week, and the
number and type of properties listed, sold, bought, leased,
or rented for others by the licensee during his or her affilia-tion
with the broker-in-charge.
(d) A broker who was the broker-in-charge of a real es-tate
office on April 1, 2006, whose broker-in-charge decla-ration
was received by the Commission prior to that date,
and who completed the Commission’s broker-in-charge
course prior to April 1, 2006 or within 120 days follow-ing
designation as a broker-in-charge, may continue to serve
as a broker-in-charge thereafter until his or her eligibility
to serve as a broker-in-charge is terminated as provided in
paragraph (f ) of this Rule.
(e) Once a broker has been designated as a broker-in-charge
and completed the 12 hour broker-in-charge course
as prescribed by Paragraph (c) of this Rule, the broker
may maintain broker-in-charge eligibility by timely annu-al
renewal of his or her broker license, completion each li-cense
year of the four hour mandatory continuing educa-tion
update course prescribed for all licensees and known
as the “Real Estate Update Course,” and completion each
license year of the four hour special continuing education
10 North Carolina Real Estate License Law and Commission Rules
course prescribed by the Commission only for brokers-in-charge
and known as the “Broker-In-Charge Annual Review
Course.” The Broker-In-Charge Annual Review Course
must be taken initially by a broker-in-charge during the first
full license year following the license year in which the bro-ker
was designated as a broker-in-charge and must be taken
each license year thereafter in order for the broker to main-tain
broker-in-charge eligibility. The Broker-In-Charge An-nual
Review Course shall satisfy the broker’s general con-tinuing
education elective course requirement, but the bro-ker
must also take the mandatory continuing education
Real Estate Update Course each license year. The Broker-
In-Charge Annual Review Course is reserved exclusively for
current brokers-in-charge, and brokers who are not current-ly
acting as a broker-in-charge but who desire to retain their
broker-in-charge eligibility. Only these brokers shall receive
continuing education elective credit for taking the course.
(f ) A broker’s broker-in-charge eligibility and, if cur-rently
designated as a broker-in-charge, his or her broker-in-charge
designation shall be terminated upon the occurrence
of any of the following events:
(1) The broker’s license expires or the broker’s license
is suspended, revoked or surrendered;
(2) the broker’s license is made inactive for any rea-son,
including failure to satisfy the continuing edu-cation
requirements described in Rule .1702 of this
Subchapter;
(3) the broker fails to complete the Broker-In-Charge
Annual Review Course described in Paragraph (e) of
this Rule; or
(4) the broker is found by the Commission to have
not possessed the experience required in Paragraph
(c) of this Rule at the time of either initial designa-tion
as a broker-in-charge or re-designation as a bro-ker-
in-charge.
When a broker who is a former broker-in-charge desires
to be re-designated as a broker-in-charge following termina-tion
of his or her broker-in-charge designation or eligibility,
he or she must first have a license on active status. The bro-ker
then must satisfy the experience requirements for initial
designation set forth in Paragraph (c) of this Rule, and the
broker must complete the 12 hour broker-in-charge course
within 120 days following re-designation, except that if the
broker has taken the 12 hour broker-in-charge course with-in
the preceding three years, he or she has the option to
complete the Broker-In-Charge Annual Review Course for
the current license year within 120 days following re-desig-nation
as a broker-in-charge in lieu of repeating the 12 hour
broker-in-charge course. If a broker who has been re-desig-nated
as a broker-in-charge and then removed as broker-in-charge
due to failure to satisfy his education requirement
within 120 days following re-designation subsequently seeks
another re-designation as broker-in-charge, the broker must
first complete the 12 hour broker-in-charge course before he
or she may again be designated as a broker-in-charge, even
if the broker has completed the 12 hour broker-in-charge
course within the preceding three years.
(g) A broker‑in‑charge shall notify the Commis­sion
in writing that he or she no longer is serving as brok­er‑in-charge
of a particular office within 10 days following any
such change.
(h) A licensed real estate firm is not required to designate
a broker-in-charge if it:
(1) has been organized for the sole purpose of receiv-ing
compensation for brokerage services furnished by
its qualifying broker through another firm or broker;
(2) is treated for tax purposes as a Subchapter S corpo-ration
by the United States Internal Revenue Service;
(3) has no principal or branch office; and
(4) has no person associated with it other than its
qualifying broker.
(i) A broker-in-charge residing outside of North Carolina
who is the broker-in-charge of a principal or branch office not
located in North Carolina is not required to complete the bro-ker-
in-charge course or the special continuing education course
prescribed for brokers-in-charge under paragraph (e) of this
Rule. However, if such broker-in-charge either becomes a resi-dent
of North Carolina or becomes broker-in-charge of an of-fice
located within North Carolina, then he or she must take
the 12 hour broker-in-charge course within 120 days of such
change, unless he or she has taken the 12 hour course with-in
the preceding three years. Such broker-in-charge shall take
the special broker-in-charge continuing education course pre-scribed
in paragraph (e) of this Rule during the first full license
year following the change and each license year thereafter so
long as the broker-in-charge remains a resident of North Car-olina
or continues to manage an office located in North Car-olina.
(j) A nonresident commercial real estate broker licensed
under the provisions of Section .1800 of this Subchapter shall
not act as or serve in the capacity of a broker-in-charge of a
firm or office in North Carolina.
A.0111 Drafting Legal Instruments
(a) A broker acting as an agent in a real estate transaction
shall not draft offers, sales contracts, options, leases, promis-sory
notes, deeds, deeds of trust or other legal instruments by
which the rights of others are secured; however, a broker may
complete preprinted offer, option contract, sales contract and
lease forms in real estate transactions when authorized or di-rected
to do so by the parties.
(b) A broker may use electronic, computer, or word pro-cessing
equipment to store preprinted offer and sales contract
forms which comply with Rule .0112, as well as preprinted op-tion
and lease forms, and may use such equipment to complete
and print offer, contract and lease documents. Provided, how-ever,
a broker may not alter the form before it is presented to
the parties. If the parties propose to delete or change any word
or provision in the form, the form must be marked to indicate
the change or deletion made. The language of the form shall
North Carolina Real Estate License Law and Commission Rules 11
REC 4.22
REV 7/10
STATE OF NORTH CAROLINA
RESIDENTIAL PROPERTY DISCLOSURE STATEMENT
Instructions to Property Owners
1. G.S. 47E requires owners of residential real estate (single-family homes and buildings with up to four dwelling units) to furnish
purchasers a property disclosure statement. This form is the only one approved for this purpose. A disclosure statement must be
furnished in connection with the sale, exchange, option and sale under a lease with option to purchase (unless the tenant is already
occupying or intends to occupy the dwelling). A disclosure statement is not required for some transactions, including the first sale of
a dwelling which has never been inhabited and transactions of residential property made pursuant to a lease with option to purchase
where the lessee occupies or intends to occupy the dwelling. For a complete list of exemptions, see G.S. 47E-2.
2. You must check √ one of the boxes for each of the questions on the reverse side of this form.
a. If you check “Yes” for any question, you must explain your answer and either describe any problem or attach a report from an
engineer, contractor, pest control operator or other expert or public agency describing it. If you attach a report, you will not
be liable for any inaccurate or incomplete information contained in it so long as you were not grossly negligent in obtaining
or transmitting the information.
b. If you check “No”, you are stating that you have no actual knowledge of any problem. If you check “No” and you know there
is a problem, you may be liable for making an intentional misstatement.
c. If you check “No Representation”, you have no duty to disclose the conditions or characteristics of the property, even if you
should have known of them.
* If you check “Yes” or “No” and something happens to the property to make your Statement incorrect or inaccurate (for
example, the roof begins to leak), you must promptly give the purchaser a corrected Statement or correct the problem.
3. If you are assisted in the sale of your property by a licensed real estate broker, you are still responsible for completing and delivering
the Statement to the purchasers; and the broker must disclose any material facts about your property which they know or reasonably
should know, regardless of your responses on the Statement.
4. You must give the completed Statement to the purchaser no later than the time the purchaser makes an offer to purchase your
property. If you do not, the purchaser can, under certain conditions, cancel any resulting contract (See “Note to Purchasers”
below). You should give the purchaser a copy of the Statement containing your signature and keep a copy signed by the purchaser
for your records.
Note to Purchasers: If the owner does not give you a Residential Property Disclosure Statement by the time you
make your offer to purchase the property, you may under certain conditions cancel any resulting contract and be en‑titled
to a refund of any deposit monies you may have paid. To cancel the contract, you must personally deliver or mail
written notice of your decision to cancel to the owner or the owner’s agent within three calendar days following your
receipt of the Statement, or three calendar days following the date of the contract, whichever occurs first. However, in
no event does the Disclosure Act permit you to cancel a contract after settlement of the transaction or (in the case of a
sale or exchange) after you have occupied the property, whichever occurs first.
5. In the space below, type or print in ink the address of the property (sufficient to identify it) and your name. Then sign and date.
Property Address:
Owner’s Name(s):
Owner(s) acknowledge having examined this Statement before signing and that all information is true and correct as of the date signed.
Owner Signature: Date
Owner Signature: Date
Purchaser(s) acknowledge receipt of a copy of this disclosure statement; that they have examined it before signing; that they understand
that this is not a warranty by owner or owner’s agent; that it is not a substitute for any inspections they may wish to obtain; and that
the representations are made by the owner and not the owner’s agent(s) or subagent(s). Purchaser(s) are encouraged to obtain their own
inspection from a licensed home inspector or other professional.
Purchaser Signature: Date
Purchaser Signature: Date
(OVER) Page 1 of 2
12 Page 2 of 2
Owner Initials and Date Owner Initials and Date
Purchaser Initials and Date Purchaser Initials and Date
Property Address/Description:
[Note: In this form, “property” refers only to dwelling unit(s) and not sheds, detached garages or other buildings.]
Regarding the property identified above, do you know of any problem (malfunction or defect) with any of the following:
	 	 	 	 	 	 	 	 	 	 	 No
Yes* No Representation
1. FOUNDATION, SLAB, FIREPLACES/CHIMNEYS, FLOORS, WINDOWS (INCLUDING STORM WIN-DOWS
AND SCREENS), DOORS, CEILINGS, INTERIOR AND EXTERIOR WALLS, ATTACHED GA-RAGE,
PATIO, DECK OR OTHER STRUCTURAL COMPONENTS including any modifications to them?
a. Siding is □ Masonry □ Wood □ Composition/Hardboard □ Vinyl □ Synthetic Stucco □ Other ________
b. Approximate age of structure? _______________
□ □ □□□
2. ROOF (leakage or other problem)?
a. Approximate age of roof covering? ____________
□ □ □□
3. WATER SEEPAGE, LEAKAGE, DAMPNESS OR STANDING WATER in the basement, crawl space or slab? □ □ □
4. ELECTRICAL SYSTEM (outlets, wiring, panel, switches, fixtures etc.)? □ □ □
5. PLUMBING SYSTEM (pipes, fixtures, water heater, etc.)? □ □ □
6. HEATING AND/OR AIR CONDITIONING?
a. Heat Source is: □ Furnace □ Heat Pump □ Baseboard □ Other__________
b. Cooling Source is: □ Central Forced Air □ Wall/Window Unit(s) □ Other__________
c. Fuel Source is: □ Electricity □ Natural Gas □ Propane □ Oil □ Other ________
□ □ □□□□
7. WATER SUPPLY (including water quality, quantity and water pressure)?
a. Water supply is: □ City/County □ Community System □ Private Well □ Other _______________
b. Water pipes are: □ Copper □ Galvanized □ Plastic □ Other ________ □ Unknown
	
□ □ □□□
8. SEWER AND/OR SEPTIC SYSTEM?
a. Sewage disposal system is: □ Septic Tank □ Septic Tank with Pump □ Community System □ Connected to
City/County System □ City/County System available □ Straight pipe (wastewater does not go into a septic or oth-er
sewer system [note: use of this type of system violates state law]) □ Other ___________
□ □ □
□
9. BUILT-IN APPLIANCES (RANGE/OVEN, ATTACHED MICROWAVE, HOOD/FAN, DISHWASHER,
DISPOSAL, etc.)? □ □ □
10. PRESENT INFESTATION, OR DAMAGE FROM PAST INFESTATION OF WOOD DESTROYING IN-SECTS
OR ORGANISMS which has not been repaired? □ □ □
11. DRAINAGE, GRADING OR SOIL STABILITY OF LOT? □ □ □
12. OTHER SYSTEMS AND FIXTURES: CENTRAL VACUUM, POOL, HOT TUB, SPA, ATTIC FAN, EX-HAUST
FAN, CEILING FAN, SUMP PUMP, IRRIGATION SYSTEM, TV CABLE WIRING OR SATELLITE
DISH, OR OTHER SYSTEMS? □ □ □
Also regarding the property identified above, including the lot, other improvements, and fixtures located thereon, do you know of any:
13. ROOM ADDITIONS OR OTHER STRUCTURAL CHANGES ? □ □ □
14. ENVIRONMENTAL HAZARDS (substances, materials or products) including asbestos, formaldehyde, radon gas,
methane gas, lead-based paint, underground storage tank, or other hazardous or toxic material (whether buried or cov-ered),
contaminated soil or water, or other environmental contamination? □ □ □
15. COMMERCIAL, INDUSTRIAL, OR MILITARY NOISE, ODOR, SMOKE, ETC. AFFECTING THE PROPERTY? □ □ □
16. VIOLATIONS OF ZONING ORDINANCES, RESTRICTIVE COVENANTS OR OTHER LAND-USE
RESTRICTIONS OR BUILDING CODES INCLUDING THE FAILURE TO OBTAIN PROPER PERMITS
FOR ROOM ADDITIONS OR OTHER STRUCTURAL CHANGES? □ □ □
17. UTILITY OR OTHER EASEMENTS, SHARED DRIVEWAYS, PARTY WALLS OR ENCROACHMENTS
FROM OR ON ADJACENT PROPERTY? □ □ □
18. LAWSUITS, FORECLOSURES, BANKRUPTCY, TENANCIES, JUDGMENTS, TAX LIENS, PROPOSED AS-SESSMENTS,
MECHANICS’ LIENS, MATERIALMENS’ LIENS, OR NOTICE FROM ANY GOVERNMEN-TAL
AGENCY that could affect title to the property? □ □ □
19. OWNERS’ ASSOCIATION OR “COMMON AREA” EXPENSES OR ASSESSMENTS? □ □ □
20. FLOOD HAZARD or that the property is in a FEDERALLY-DESIGNATED FLOOD PLAIN? □ □ □
21. PRIVATE ROAD(S) OR STREETS adjoining the property?
a. If yes, do you know of an existing owners association or maintenance agreement to maintain the road or street?
□□
□□
□□
* If you answered “Yes” to any of the above 21 questions, please explain (Attach additional sheets, if necessary):
In lieu of providing a written explanation, you may attach a written report to this Disclosure Statement by a public agency, engineer, land surveyor, geologist, pest
control operator, contractor, home inspector or other expert, dealing with matters within the scope of that public agency’s functions or the expert’s license or expertise.
North Carolina Real Estate License Law and Commission Rules 13
not be modified, rewritten, or changed by the broker or their
clerical employees unless directed to do so by the parties.
(c) Nothing contained in this rule shall be construed to
prohibit a broker from making written notes, memoranda or
correspondence recording the negotiations of the parties to a
real estate transaction when such notes, memoranda or corre-spondence
do not themselves constitute binding agreements
or other legal instruments.
A.0112 Offers and Sales Contracts
(a) A broker acting as an agent in a real estate transaction
shall not use a preprinted offer or sales contract form unless
the form describes or expressly requires the entry of the fol-lowing
information:
(1) the names of the buyer and seller;
(2) a legal description of the real property sufficient to
identify and distinguish it from all other property;
(3) an itemization of any personal property to be in-cluded
in the transaction;
(4) the purchase price and manner of payment;
(5) any portion of the purchase price that is to be paid
by a promissory note, including the amount, interest
rate, payment terms, whether or not the note is to be
secured, and other material terms;
(6) any portion of the purchase price that is to be paid
by the assumption of an existing loan, including the
amount of such loan, costs to be paid by the buyer or
seller, the interest rate and number of discount points
and a condition that the buyer must be able to qualify
for the assumption of the loan and must make every rea-sonable
effort to quality for the assumption of the loan;
(7) the amount of earnest money, if any, the meth-od
of payment, the name of the broker or firm that
will serve as escrow agent, an acknowledgment of ear-nest
money receipt by the escrow agent, and the cri-teria
for determining disposition of the earnest mon-ey,
including disputed earnest money, consistent with
Rule .0107 of this Subchapter;
(8) any loan that must be obtained by the buyer as
a condition of the contract, including the amount
and type of loan, interest rate and number of discount
points, loan term, and who shall pay loan closing costs,
and a condition that the buyer shall make every reason-able
effort to obtain the loan;
(9) a general statement of the buyer’s intended use of
the property and a condition that such use must not
be prohibited by private restriction or governmental
regulation;
(10) the amount and purpose of any special assess-ment
to which the property is subject and the respon-sibility
of the parties for any unpaid charges;
(11) the date for closing and transfer of possession;
(12) the signatures of the buyer and seller;
(13) the date of offer and acceptance;
(14) a provision that title to the property must be de-livered
at closing by general warranty deed and must
be fee simple marketable title, free of all encumbranc-es
except ad valorem taxes for the current year, utility
easements, and any other encumbrances approved by
the buyer or a provision otherwise describing the es-tate
to be conveyed with encumbrances, and the form
of conveyance;
(15) the items to be prorated or adjusted at closing;
(16) who shall pay closing expenses;
(17) the buyer’s right to inspect the property prior to
closing and who shall pay for repairs and improvements,
if any;
(18) a provision that the property shall at closing be in
substantially the same condition as on the date of the
offer (reasonable wear and tear excepted), or a descdrip-tion
of the required property condition at closing: and
(19) a provision setting forth the identity of each real
estate agent and firm involved in the transaction and
disclosing the party each agent and firm represents.
(b) A broker acting as an agent in a real estate transac-tion
shall not use a preprinted offer or sales contract form
containing:
(1) any provision concerning the payment of a com-mission
or compensation, including the forfeiture of
earnest money, to any broker or firm; or
(2) any provision that attempts to disclaim the liabil-ity
of a broker for his or her representations in connec-tion
with the transaction.
A broker or anyone acting for or at the direction of the bro-ker
shall not insert or cause such provisions or terms to be
inserted into any such preprinted form, even at the direction
of the parties or their attorneys.
(c) The provisions of this rule shall apply only to pre-printed
offer and sales contract forms which a broker act-ing
as an agent in a real estate transaction proposes for use
by the buyer and seller. Nothing contained in this Rule shall
be construed to prohibit the buyer and seller in a real estate
transaction from altering, amending or deleting any provi-sion
in a form offer to purchase or contract nor shall this
Rule be construed to limit the rights of the buyer and sell-er
to draft their own offers or contracts or to have the same
drafted by an attorney at law.
A.0113 Reporting Criminal Convictions and
Disciplinary Actions
Any broker who is convicted of any felony or misdemean-or
or who is disciplined by any governmental agency in con-nection
with any other occupational license, or whose notar-ial
commission is restricted, suspended, or revoked, shall file
with the Commission a written report of such conviction or
action within 60 days of the final judgment, order, or dispo-sition
in the case. A form for this report is available from the
Commission.
14 North Carolina Real Estate License Law and Commission Rules
A.0114 Residential Property Disclosure Statement
(a) Every owner of real property subject to a transfer of the
type contemplated by Chapter 47E of the General Statutes,
shall complete the ... residential property disclosure statement
and furnish a copy of the complete statement to a purchas-er
in accordance with the requirements of G.S. 47E-4. The
form shall bear the seal of the North Carolina Real Estate
Commission and shall read as [approved and published by
the Commission].
(b) The form described in Paragraph (a) of this Rule may
be reproduced, but the form shall not be altered or amend-ed
in any way.
A.0115 Disclosure of Offers Prohibited
A broker shall not disclose the price or other materi-al
terms contained in a party’s offer to purchase, sell, lease,
rent, or to option real property to a competing party with-out
the express authority of the offering party.
SECTION A.0200
GENERAL PROVISIONS
(Repealed)
SECTION A.0300
APPLICATION FOR LICENSE
A.0301 Form
An individual or business entity who wishes to file an ap-plication
for a broker license shall make application on a form
prescribed by the Commission and can obtain the required
form upon request to the Commission. In general, the ap-plication
form for an individual calls for information such as
the applicant’s name and address, the applicant’s social securi-ty
number, satisfactory proof of the applicant’s identity, plac-es
of residence, education, prior real estate licenses, and such
other information necessary to identify the applicant and de-termine
the applicant’s qualifications and fitness for licensure.
The application form for a business entity is described in Rule
.0502 of this Section.
A.0302 Filing and Fees
(a) Applications for a real estate license shall be com-plete
and, except as provided by Rule .0403 of this Subchap-ter,
shall be submitted to the Commission’s office accompa-nied
by the application fee. Examination scheduling of ap-plicants
who are required to pass the real estate licensing ex-amination
shall be accomplished in accordance with Rule
.0401 of this Subchapter.
(b) Except for persons applying for licensure under the
provisions of Section .1800 of this Subchapter, the license
application fee shall be $30.00. In addition to the license ap-plication
fee, applicants for licensure who are required to
take the license examination must pay the examination fee
charged by the Commission’s authorized testing service in the
form and manner acceptable to the testing service. Persons
applying for licensure under Section .1800 of this Subchap-ter
shall pay the application fee set forth in Rule .1803 of
this Subchapter.
(c) An applicant shall update information provided in
connection with an application or submit a newly completed
application form without request by the Commission to as-sure
that the information provided in the application is cur-rent
and accurate. Failure to submit updated information
prior to the issuance of a license may result in disciplinary ac-tion
against a licensee in accordance with G.S. §93A-6(b)(1).
In the event that the Commission requests an applicant to
submit updated information or to provide additional infor-mation
necessary to complete the application and the appli-cant
fails to submit such information within 90 days follow-ing
the Commission’s request, the Commission shall cancel
the applicant’s application. The license application of an in-dividual
found by the Commission to be qualified for the
licensing examination shall be immediately canceled if the
applicant fails to pass a scheduled licensing examination,
fails to appear for and take any examination for which the
applicant has been scheduled without having the applicant’s
examination postponed or absence excused in accordance
with Rule .0401(b) and (c) of this Section, or fails to take
and pass the examination within 180 days of filing a com-plete
application as described in Rule .0301 of this Section
and having the application entered into the Commission’s
examination applicant file. Except as permitted otherwise
in Rule .0403 of this Subchapter, an applicant whose license
application has been canceled and who wishes to obtain a real
estate license must start the licensing process over by filing a
complete application to the Commission and paying all re-quired
fees.
A.0303 Payment of Application Fees
Payment of application fees shall be made to the Com-mission
by bank check, certified check, money order, debit
card, or credit card. Once an application has been filed and
processed, the application fee may not be refunded.
A.0304 Equivalent Experience Qualifications for
Applicants
Experience obtained by a broker applicant in violation
of law or rule may not be recognized by the Commission
as fulfilling the requirements for licensure when the appli-cant
is requesting the Commission to waive the prescribed
education requirement based wholly or in part on equiva-lent
experience obtained by the applicant.
SECTION A.0400
EXAMINATIONS
A.0401 Scheduling Examinations
(a) An applicant who is required and qualified to take
the licensing examination shall be provided a notice of ex-amination
eligibility that shall be valid for a period of 180
North Carolina Real Estate License Law and Commission Rules 15
days and for a single administration of the licensing exami-nation.
Upon receipt of the notice of examination eligibil-ity,
the applicant shall contact the Commission’s authorized
testing service to pay for and schedule the examinations in
accordance with procedures established by the testing ser-vice.
The testing service will schedule applicants for exami-nation
by computer at their choice of one of the testing lo-cations
and will notify applicants of the time and place of
their examinations.
(b) An applicant may postpone a scheduled examina-tion
provided the applicant makes the request for postpone-ment
directly to the Commission’s authorized testing service
in accordance with procedures established by the testing ser-vice.
An applicant’s examination shall not be postponed be-yond
the 180 day period allowed for taking the examination
without first refiling another complete application with the
Commission.
A request to postpone a scheduled licensing examina-tion
without complying with the procedures for re-applying
for examination described in Rule .0403 of this Subchap-ter
shall be granted only once unless the applicant satisfies
the requirements for obtaining an excused absence stated in
Paragraph (c) of this Rule.
(c) An applicant may be granted an excused absence
from a scheduled examination if the applicant provides evi-dence
that the absence was the direct result of an emergen-cy
situation or condition which was beyond the applicant’s
control and which could not have been reasonably foreseen
by the applicant. A request for an excused absence must be
promptly made in writing and must be supported by docu-mentation
verifying the reason for the absence.
The request must be submitted directly to the testing ser-vice
in accordance with procedures established by the test-ing
service. A request for an excused absence from an exam-ination
shall be denied if the applicant cannot be resched-uled
and examined prior to expiration of the 180 day period
allowed for taking the examination without first refiling an-other
complete application with the Commission.
A.0402 Subject Matter and Passing Scores
(a) The real estate licensing examination shall test appli-cants
on the following general subject areas:
(1) real estate law;
(2) real estate brokerage law and practices;
(3) the Real Estate License Law, rules of the Com-mission,
and the Commission’s trust account guide-lines;
(4) real estate finance;
(5) real estate valuation (appraisal);
(6) real estate mathematics; and
(7) related subject areas.
(b) In order to pass the real estate licensing examination,
an applicant must attain a score at least equal to the passing
score established by the Commission in compliance with psy-chometric
standards for establishing passing scores for occu-pational
licensing examinations as set forth in the “Standards
for Educational and Psychological Testing” jointly promul-gated
by the American Educational Research Association, the
American Psychological Association, and the National Coun-cil
on Measurement in Education. Passing applicants will re-ceive
only a score of “pass”; however, failing applicants will be
informed of their actual score. A passing examination score
obtained by a license applicant shall be recognized as valid
for a period of one year from the date of examination, during
which time the applicant must fully satisfy any remaining re-quirements
for licensure that were pending at the time of ex-amination;
provided that the running of the one-year peri-od
shall be tolled upon mailing the applicant the letter con-templated
in 21 NCAC 58A .0616(b) informing the appli-cant
that his or her moral character is in question, and shall
resume running when the applicant’s application is either ap-proved
for license issuance, denied or withdrawn. The appli-cation
of an applicant with a passing examination score who
fails to satisfy all remaining requirements for licensure within
one year shall be canceled and the applicant shall be required
to reapply and satisfy all requirements for licensure, including
retaking and passing the license examination, in order to be
eligible for licensure.
A.0403 Re-applying for Examination
(a) An individual whose license application has been
canceled and whose 180 day examination eligibility period
has expired who wishes to be rescheduled for the real es-tate
license examination must re-apply to the Commission
by filing a complete license application as described in Rule
.0301 of this Subchapter and paying the prescribed applica-tion
fee. Subsequent examinations shall be scheduled in ac-cordance
with Rule .0401 of this Section.
(b) An individual whose license application has been
canceled who wishes to be rescheduled for the license exam-ination
before the expiration of his or her 180 day examina-tion
eligibility period may utilize an abbreviated electronic
license application and examination rescheduling procedure
by directly contacting the Commission’s authorized testing
service, paying both the license application fee and the ex-amination
fee to the testing service, and following the test-ing
service’s established procedures.
(c) An applicant who fails the license examination shall
not be allowed to retake the examination for at least 10 cal-endar
days.
A.0404 Cheating and Related Misconduct
Applicants shall not cheat or attempt to cheat on an ex-amination
by any means, including both giving and receiving
assistance, and shall not communicate in any manner for any
purpose with any person other than an examination supervi-sor
during an examination. Applicants shall not disrupt the
quiet and orderly administration of an examination in any
manner. Violation of this Rule shall be grounds for dismissal
from an examination, invalidation of examination scores, and
16 North Carolina Real Estate License Law and Commission Rules
denial of a real estate license, as well as for disciplinary action
if the applicant has been issued a license.
A.0405 Confidentiality of Examinations
Licensing examinations are the exclu­sive
property of the
Commission and are confidential. No applicant or licensee
shall obtain, attempt to obtain, receive or communicate to oth-er
persons examination ques­tions
or answers. Violation of this
Rule is grounds for deni­al
of a real estate license if the violator
is an appli­cant
and disciplinary action if the violator is a licens­ee
or becomes a licensee prior to the discovery of the violation
by the Commission.
A.0406 Examination Review
An applicant who fails the license examination may re-view
the examination at the testing center immediately fol-lowing
completion of the examination and receipt of the
applicant’s examination results but prior to leaving the test-ing
center. An applicant who fails the examination and who
declines the opportunity to immediately review the exami-nation
prior to leaving the testing center will be deemed to
have waived the right to review the examination. An appli-cant
who is reviewing his or her failed examination may not
have any other person present during his or her review, nor
may any other person review an examination on behalf of an
applicant. An applicant who passes the license examination
may not review the examination.
SECTION A.0500
LICENSING
A.0501 Character (Repealed)
A.0502 Business Entities
(a) Every business entity other than a sole proprietor-ship
shall apply for and obtain from the Commission a firm
license prior to engaging in business as a real estate broker.
An entity that changes its business form other than by con-version
shall submit a new license application immediate-ly
upon making the change and obtain a new firm license.
An entity which converts to a different business entity in
conformity with and pursuant to applicable North Carolina
General Statutes is not required to apply for a new license.
However, such converted entity shall provide the informa-tion
required by this paragraph in writing to the Commis-sion
within ten (10) days of said conversion and shall in-clude
the applicable fee to have the firm license reissued in
the legal name of the converted entity. Incomplete applica-tions
shall not be acted upon by the Commission. Appli-cation
forms for partnerships, corporations, limited liabil-ity
companies, associations and other business entities re-quired
to be licensed as brokers shall be available upon re-quest
to the Commission and shall require the applicant to
set forth:
(1) the name of the entity;
(2) the name under which the entity will do busi-ness;
(3) the type of business entity;
(4) the address of its principal office;
(5) the entity’s North Carolina Secretary of
State Identification Number if required to be reg-istered
with the Office of the North Carolina Secre-tary
of State;
(6) the name, real estate license number and sig-nature
of the proposed qualifying broker for the pro-posed
firm;
(7) the address of and name of the proposed
broker-in-charge for each office as defined in Rule
.0110(b) of this subchapter, along with a completed
broker-in-charge declaration form for each proposed
broker-in-charge;
(8) any past criminal conviction of and any
pending criminal charge against any principal in the
company or any proposed broker-in-charge;
(9) any past revocation, suspension or denial of a
business or professional license of any principal in the
company or any proposed broker-in-charge;
(10) if a general partnership, a full description of
the applicant entity, including a copy of its written
partnership agreement or if no written agreement ex-ists,
a written description of the rights and duties of
the several partners;
(11) if a business entity other than a corporation, lim-ited
liability company or partnership, a full description
of the organization of the applicant entity, including
a copy of its organizational documents evidencing its
authority to engage in real estate brokerage;
(12) if a foreign business entity, a certificate of
authority to transact business in North Carolina and
an executed consent to service of process and plead-ings;
and
(13) any other information required by this rule.
When the authority of a business entity to engage in the
real estate business is unclear in the application or in law,
the Commission shall require the applicant to declare in the
license application that the applicant’s organizational docu-ments
authorize the firm to engage in the real estate business
and to submit organizational documents, addresses of affil-iated
persons and similar information. For purposes of this
Rule, the term principal, when it refers to a person or enti-ty,
means any person or entity owning ten percent or more
of the business entity, or who is an officer, director, manag-er,
member, partner or who holds any other comparable po-sition.
(b) After filing a written application with the Commis-sion
and upon a showing that at least one principal of the
business entity holds a broker license on active status and
in good standing and will serve as qualifying broker of the
entity, the entity shall be licensed provided it appears that
the applicant entity employs and is directed by personnel
North Carolina Real Estate License Law and Commission Rules 17
possessed of the requisite truthfulness, honesty, and integri-ty.
The qualifying broker of a partnership of any kind must
be a general partner of the partnership; the qualifying bro-ker
of a limited liability company must be a manager of the
company; and the qualifying broker of a corporation must
be an officer of the corporation. A licensed business entity
may serve as the qualifying broker of another licensed busi-ness
entity if the qualifying broker-entity has as its quali-fying
broker a natural person who is licensed as a broker.
The natural person who is qualifying broker shall assure the
performance of the qualifying broker’s duties with regard to
both entities. A provisional broker may not serve as a quali-fying
broker.
(c) The licensing of a business entity shall not be construed
to extend to the licensing of its partners, managers, members,
directors, officers, employees or other persons acting for the en-tity
in their individual capacities regardless of whether they are
engaged in furthering the business of the licensed entity.
(d) The qualifying broker of a business entity shall as-sume
responsibility for:
(1) designating and assuring that there is at all times
a broker-in-charge for each office and branch office
of the entity as office and branch office are defined in
Rule .0110(b) of this Subchapter;
(2) renewing the real estate broker license of the entity;
(3) retaining the firm’s renewal pocket card at the firm
and producing it as proof of firm licensure upon request
and maintaining a photocopy of the firm license certifi-cate
and pocket card at each branch office thereof;
(4) notifying the Commission of any change of busi-ness
address or trade name of the entity and the reg-istration
of any assumed business name adopted by
the entity for its use;
(5) notifying the Commission in writing of any
change of his or her status as qualifying broker with-in
ten days following the change;
(6) securing and preserving the transaction and
trust account records of the firm whenever there is a
change of broker-in-charge at the firm or any office
thereof and notifying the Commission if the trust ac-count
records are out of balance or have not been rec-onciled
as required by rule .0107 of this Subchapter;
(7) retaining and preserving the transaction and trust
account records of the firm upon termination of his
or her status as qualifying broker until a new quali-fying
broker has been designated with the Commis-sion
or, if no new qualifying broker is designated, for
the period of time for which said records are required
to be retained by Rule .0108 of this Subchapter; and
(8) notifying the Commission if, upon the termina-tion
of his or her status as qualifying broker, the firm’s
transaction and trust account records cannot be re-tained
or preserved or if the trust account records
are out of balance or have not been reconciled as re-quired
by Rule .0107(e) of this Subchapter.
(e) Every licensed business entity and every entity ap-plying
for licensure shall conform to all the requirements
imposed upon it by the North Carolina General Statutes
for its continued existence and authority to do business in
North Carolina. Failure to conform to such requirements is
grounds for disciplinary action or denial of the entity’s ap-plication
for licensure. Upon receipt of notice from an enti-ty
or agency of this state that a licensed entity has ceased to
exist or that its authority to engage in business in this state
has been terminated by operation of law, the Commission
shall cancel the license of the entity.
A.0503 License Renewal; Penalty for Operating
While License Expired
(a) All real estate licenses issued by the Commission un-der
G.S. 93A, Article 1 shall expire on the 30th day of June
following issuance. Any licensee desiring renewal of a license
shall apply for renewal within 45 days prior to license expira-tion
by submitting a renewal application on a form provided
by the Commission and submitting with the application the
required renewal fee of forty dollars ($40.00).
(b) Any person desiring to renew his or her license on ac-tive
status shall, upon the second renewal of such license fol-lowing
initial licensure, and upon each subsequent renewal,
have obtained all continuing education required by G.S. 93A-
4A and Rule .1702 of the Subchapter.
(c) A person renewing a license on inactive status shall not
be required to have obtained any continuing education in or-der
to renew such license; however, in order to subsequently
change his or her license from inactive status to active status,
the licensee must satisfy the continuing education requirement
prescribed in Rule .1703 or Rule .1711 of the Subchapter.
(d) Any person or firm which engages in the business of a
real estate broker while his, her, or its license is expired is sub-ject
to the penalties prescribed in G.S. 93A-6.
A.0504 Active and Inactive License Status
(a) Except for licenses that have expired or that have been
canceled, revoked, suspended or surrendered, all licenses is-sued
by the Commission shall be designated as being either
on active status or inactive status. The holder of a license on
active status may engage in any activity requiring a real es-tate
license and may be compensated for the provision of any
lawful real estate brokerage service. The holder of a license
on inactive status may not engage in any activity requiring a
real estate license, including the referral for compensation of
a prospective seller, buyer, landlord or tenant to another real
estate licensee or any other party. A licensee holding a license
on inactive status must renew the license and pay the pre-scribed
license renewal fee in order to continue to hold the li-cense.
The Commission may take disciplinary action against
a licensee holding a license on inactive status for any viola-tion
of G.S. 93A or any rule adopted by the Commission, in-cluding
the offense of engaging in an activity for which a li-cense
is required while a license is on inactive status.
18 North Carolina Real Estate License Law and Commission Rules
(b) A license issued to a provisional broker shall, upon
initial licensure, be assigned to inactive status, except that a
license issued to a provisional broker based on reciprocity
with another licensing jurisdiction shall be assigned to ac-tive
status. A license issued to a firm or a broker other than
a provisional broker shall be assigned to active status. Except
for persons licensed under the provisions of Section .1800
of this Subchapter, a broker may change the status of his
or her license from active to inactive status by submitting a
written request to the Commission. A provisional broker’s
license shall be assigned by the Commission to inactive sta-tus
when the provisional broker is not under the active, di-rect
supervision of a broker-in-charge. A firm’s license shall
be assigned by the Commission to inactive status when the
firm does not have a qualifying broker with an active license
in good standing. Except for persons licensed under the pro-visions
of Section .1800 of this Subchapter, a broker shall
also be assigned to inactive status if, upon the second renew-al
of his or her license following initial licensure, or upon
any subsequent renewal, he or she has not satisfied the con-tinuing
education requirement described in Rule .1702 of
this Subchapter.
(c) A provisional broker with an inactive license who de-sires
to have the license placed on active status must com-ply
with the procedures prescribed in Rule .0506 of this Sec-tion.
(d) A broker, other than a provisional broker, with an in-active
license who desires to have the license placed on active
status shall file with the Commission a request for license ac-tivation
on a form provided by the Commission containing
identifying information about the broker, a statement that
the broker has satisfied the continuing education require-ments
provided by Rule .1703 of this Subchapter, the date
of the request, and the signature of the broker. Upon the
mailing or delivery of this form, the broker may engage in
real estate brokerage activities requiring a license; however,
if the broker does not receive from the Commission a writ-ten
acknowledgment of the license activation within 30 days
of the date shown on the form, the broker shall immediate-ly
terminate his or her real estate brokerage activities pend-ing
receipt of the written acknowledgment from the Com-mission.
If the broker is notified that he or she is not eligible
for license activation due to a continuing education deficien-cy,
the broker must terminate all real estate brokerage activi-ties
until such time as the continuing education deficiency is
satisfied and a new request for license activation is submitted
to the Commission.
(e) A firm with an inactive license which desires to have
its license placed on active status shall file with the Commis-sion
a request for license activation containing identifying in-formation
about the firm and its qualifying broker and satisfy
the requirements of Rule .0110 of this Subchapter. If the qual-ifying
broker has an inactive license, he or she must satisfy the
requirements of Paragraph (d) of this Rule. Upon the mail-ing
or delivery of the completed form by the qualifying broker,
the firm may engage in real estate brokerage activities requir-ing
a license; however, if the firm’s qualifying broker does not
receive from the Commission a written acknowledgment of
the license activation within 30 days of the date shown on the
form, the firm shall immediately terminate its real estate bro-kerage
activities pending receipt of the written acknowledg-ment
from the Commission. If the qualifying broker is noti-fied
that the firm is not eligible for license activation due to a
continuing education deficiency on the part of the qualifying
broker, the firm must terminate all real estate brokerage activi-ties
until` such time as the continuing education deficiency is
satisfied and a new request for license activation is submitted
to the Commission.
(f ) A person licensed as a broker under Section .1800
of this Subchapter shall maintain his or her license on ac-tive
status at all times as required by Rule .1804 of this Sub-chapter.
A.0505 Reinstatement of Expired License, Revoked,
Surrendered or Suspended License
(a) Licenses expired for not more than six (6) months
may be reinstated upon the submission of pay­ment
of a fif-ty-
five dollar ($55.00) reinstatement fee. In order to rein-state
the license on active status, the person requesting rein-statement
shall have obtained the continuing education as is
required by Rule .1703 of this Sub­chapter
to change an in-active
license to active sta­tus.
A person reinstating a license
on inactive status is not required to have obtained any con-tinuing
educa­tion
in order to reinstate the license; however,
in order to subse­quently
change his or her reinstated license
from inactive status to active status, the licensee must satis-fy
the continuing education requirement prescribed in Rule
.1703 of this Subchapter, and be supervised by a broker-in-charge
in compliance with the requirements of Rule .0506
of this Section.
(b) Reinstatement of licenses expired for more than six
months or provisional broker licenses cancelled pursuant to
G.S. 93A-4(a) shall be considered upon the submission of a
complete and accurate applica­tion
and payment of a fifty-five
dollar ($55.00) fee. Applicants must satisfy the Com-mission
that they possess the current knowledge, skills and
compe­tence,
as well as the truthfulness, honesty and integri-ty,
necessary to function in the real estate busi­ness
in a man-ner
that protects and serves the public interest. To demon-strate
knowledge, skills and competence, the Commission
may require the applicants to com­plete
real estate education
or pass the license examina­tion
or both.
(c) Reinstatement of a revoked license shall be consid-ered
upon the submission of a complete and accurate appli-cation
and payment of a thirty dollar ($30.00) fee. Appli-cants
must satisfy the same requirements as those prescribed
in Paragraph (b) of this Rule for reinstatement of licenses
expired for more than six (6) months.
(d) Reinstatement of a license surrendered under the
provisions of G.S. 93A-6(e) shall be considered upon termi-
North Carolina Real Estate License Law and Commission Rules 19
nation of the period of surrender specified in the order ap-proving
the surrender and upon the submission of a com-plete
and accurate application and payment of a thirty dollar
($30.00) fee. Applicants must satisfy the same requirements
as those prescribed in Paragraph (b) of this Rule for rein-statement
of licenses expired for more than six (6) months.
(e) When a license is suspended by the Commission, the
suspended license shall be restored at the end of the period
of active suspension provided that any applicable license re-newal
fees that accrued during the time of the suspension are
paid by the licensee within sixty days from the end of the pe-riod
of license suspension. In order for the license to be re-stored
on active status, the licensee shall be required to dem-onstrate
that the licensee has satisfied the continuing educa-tion
requirement for license activation prescribed by Rule
.1703 of this Subchapter and that the licensee is supervised
by a broker-in-charge in compliance with the requirements
of Rule .0506 of this Section, if applicable. Failure to pay the
accrued license renewal fees within the time set forth in this
paragraph shall result in expiration of the license effective the
last day of the suspension period. A former licensee whose
license expires under this paragraph and who thereafter seeks
reinstatement must satisfy the same requirements as those
prescribed in Paragraph (b) of this Rule for reinstatement of
licenses expired for more than six months.
(f ) Whenever a license is reinstated by the Commis-sion
following expiration for more than six months, cancel-lation,
revocation, or voluntary surrender, the date of licen-sure
for the licensee shall be the date of reinstatement and
not the date of original licensure.
A.0506 Provisional Broker to be Supervised by
Broker
(a) This Rule shall apply to all real estate provisional bro-kers.
(b) A provisional broker may engage in or hold himself
or herself out as engaging in activities requiring a real estate
license only while his or her license is on active status and
he or she is supervised by the broker-in-charge of the real es-tate
firm or office where the provisional broker is associated.
A provisional broker may be supervised by only one broker-in-
charge at a time.
(c) Upon a provisional broker’s association with a real
estate broker or brokerage firm, the provisional broker and
the broker-in-charge of the office where the provisional bro-ker
will be engaged in the real estate business shall immedi-ately
file with the Commission a provisional broker super-vision
notification on a form provided by the Commission
containing identifying information about the provision-al
broker and the broker-in-charge, a statement from the
broker-in-charge certifying that he or she will supervise the
provisional broker in the performance of all acts for which
a license is required, the date that the broker-in-charge as-sumes
responsibility for such supervision, and the signatures
of the provisional broker and broker-in-charge. If the pro-visional
broker is on inactive status at the time of associating
with a broker or brokerage firm, the provisional broker and
broker-in-charge shall also file, along with the provisional
broker supervision notification, the provisional broker’s re-quest
for license activation on a form provided by the Com-mission
containing identifying information about the pro-visional
broker, the provisional broker’s statement that he
or she has satisfied the continuing education requirements
prescribed by Rule .1703 of this Subchapter, the provision-al
broker’s statement that he or she has satisfied the postli-censing
education requirements, if applicable, prescribed by
Rule .1902 of this Subchapter, the date of the request, and
the signatures of the provisional broker and the provision-al
broker’s proposed broker-in-charge. Upon the mailing
or delivery of the required form(s), the provisional broker
may engage in real estate brokerage activities requiring a li-cense
under the supervision of the broker-in-charge; how-ever,
if the provisional broker and broker-in-charge do not
receive from the Commission a written acknowledgment of
the provisional broker supervision notification and, if ap-propriate,
the request for license activation, within 30 days
of the date shown on the form, the broker-in-charge shall
immediately terminate the provisional broker’s real estate
brokerage activities pending receipt of the written acknowl-edgment
from the Commission. If the provisional broker
and broker-in-charge are notified that the provisional broker
is not eligible for license activation due to a continuing ed-ucation
deficiency, the broker-in-charge shall cause the pro-visional
broker to immediately cease all activities requiring
a real estate license until such time as the continuing educa-tion
deficiency is satisfied and a new provisional broker su-pervision
notification and request for license activation is
submitted to the Commission.
(d) A broker-in-charge who certifies to the Commis-sion
that he or she will supervise a provisional broker shall
actively and directly supervise the provisional broker in a
manner which reasonably assures that the provisional broker
performs all acts for which a real estate license is required in
accordance with the Real Estate License Law and Commis-sion
rules. A supervising broker who fails to supervise a pro-visional
broker as prescribed in this Rule may be subject to
disciplinary action by the Commission.
(e) Upon the termination of the supervisory relation-ship
between a provisional broker and his or her broker-in-
charge, the provisional broker and the broker-in-charge
shall provide written notification of the date of termination
to the Commission not later than 10 days following said ter-mination.
A.0507 Payment of License Fees
Checks, credit cards, and other forms of payment giv-en
the Commission for fees due which are returned un-paid
shall be consid­ered
cause for license denial, suspen­sion,
or revoca­tion.
20 North Carolina Real Estate License Law and Commission Rules
A.0508 Duplicate License Fee (Repealed)
A.0509 Duplicate License Fee
A licensee may, by filing a prescribed form and paying a
five dollar ($5.00) fee to the Commission, obtain a duplicate
real estate license or pocket card to replace an original license
or pocket card which has been lost, damaged or destroyed or
if the name of the licensee has been lawfully changed.
SECTION A.0600
REAL ESTATE COMMISSION HEARINGS
A.0601 Complaints/Inquiries/Motions/Other Pleadings
(a) There shall be no specific form required for complaints.
To be sufficient, a complaint shall be in writing, identify the
respondent licensee and shall reasonably apprise the Commis-sion
of the facts which form the basis of the complaint.
(b) When investigating a complaint, the scope of the Com-mission’s
investigation shall not be limited only to matters al-leged
in the complaint. In addition, a person making a com-plaint
to the Commission may change his or her complaint by
submitting the changes to the Commission in writing.
(c) When a complaint has not been submitted in con-formity
with this rule, the Commission’s legal counsel may
initiate an investigation if the available information is suf-ficient
to create a reasonable suspicion that any licensee or
other person or entity may have committed a violation of
the provisions of the Real Estate License Law or the rules ad-opted
by the Commission.
(d) There shall be no specific forms required for answers,
motions, or other pleadings relating to contested cases be-fore
the Commission, except they shall be in writing. To be
sufficient, the document must reasonably apprise the Com-mission
of the matters it alleges or answers. To be consid-ered
by the Commission, every answer, motion, request or
other pleading must be submitted to the Commission in
writing or made during the hearing as a matter of record.
(e) During the course of an investigation of a licensee,
the Commission, through its legal counsel or other staff,
may send the licensee a Letter of Inquiry requesting the li-censee
to respond. The Letter of Inquiry, or attachments
thereto, shall set forth the subject matter being investigated.
Upon receipt of the Letter of Inquiry, the licensee shall re-spond
within 14 calendar days. Such response shall include
a full and fair disclosure of all information requested. Li-censees
shall include with their written response copies of all
documents requested in the Letter of Inquiry.
(f ) Hearings in contested cases before the Commission
shall be conducted according to the provisions of Article 3A
of Chapter 150B of the General Statutes of North Carolina.
(g) Persons who make complaints are not parties to con-tested
cases, but may be witnesses.
A.0616 Procedures For Requesting Hearings When
Applicant’s Character Is In Question
(a) When the moral character of an applicant for licen-sure
or approval is in question, the applicant shall not be
licensed or approved until the applicant has affirmative-ly
demonstrated that the applicant possesses the requisite
truthfulness, honesty and integrity. For the purposes of this
rule, applicant means any person or entity making applica-tion
for licensure as a real estate broker or for licensure or
approval as a prelicensing or continuing education instructor,
director, coordinator, school, or sponsor. When the applicant
is an entity, it shall be directed and controlled by persons who
are truthful and honest and who possess integrity.
(b) When the character of an applicant is in ques-tion,
the Commission shall defer action upon the applica-tion
until the applicant is notified by letter. The letter in-forming
the applicant that his or her moral character is in
question shall be sent by certified mail, return receipt re-quested,
to the address shown upon the application. The
applicant shall have 60 days from the date of receipt of this
letter to request a hearing before the Commission. If the
applicant fails to request a hearing within this time or if a
properly addressed letter is returned to the Commission un-delivered,
applicant’s right to a hearing shall be considered
waived and the application shall be deemed denied. If the
applicant makes a timely request for a hearing in accordance
with the provisions of this rule, the Commission shall pro-vide
the applicant with a Notice of Hearing and hearing as
required by Article 3A of Chapter 150B of the North Caro-lina
General Statutes.
(c) Nothing in this Rule shall be interpreted to prevent
an unsuccessful applicant from reapplying for licensure or
approval if such application is otherwise permitted by law.
SECTION A.0700
PETITIONS FOR RULES
SECTION A.0800
RULE MAKING
SECTION A.0900
DECLARATORY RULINGS
SECTION A.1000
SCHOOLS
(Transferred to C.0100)
SECTION A.1100
REAL ESTATE PRE‑LICENSING COURSES
(Transferred/Repealed.Transfers are at C.0300
Prelicensing and Pre-certification Courses)
North Carolina Real Estate License Law and Commission Rules 21
SECTION A.120­0
CERTIFICATION OF REAL ESTATE
INSTRUCTORS
(Repealed)
SECTION A.130­0
PRIVATE REAL ESTATE SCHOOLS
(Transferred/Repealed. Transfers are at
C.0200)
SECTION A.140­0
REAL ESTATE RECOVERY FUND
SECTION A.150­0
FORMS (Repealed)
Interested persons may obtain a copy of Sections
A.0600 through A.1500 by making written request to
the North Carolina Real Estate Commis­sion.
SECTION A.1600
DISCRIMINATORY PRACTICES PROHIBITED
A.1601 Fair Housing
Conduct by a licensee which violates the provisions of
the State Fair Housing Act consti­tutes
improper con­duct
in
violation of G.S. 93A‑6(a)(­10).
SECTION A.1700
MANDATORY CONTINUING EDUCATION
A.1701 Purpose and Applicability
This Section describes the continuing education require-ment
for real estate brokers authorized by G.S. 93A-4A, es-tablishes
the continuing education requirement to change a
license from inactive status to active status, establishes atten-dance
requirements for continuing education courses, estab-lishes
the criteria and procedures relating to obtaining an ex-tension
of time to complete the continuing education require-ment,
establishes the criteria for obtaining continuing educa-tion
credit for an unapproved course or related educational ac-tivity,
and addresses other similar matters.
A.1702 Continuing Education Require­ment
(a) Except as provided in 21 NCAC 58A.1708 and
A.1711, in order to renew a broker license on active status,
the person requesting renewal of a license shall, upon the
second renewal of such license following initial licensure,
and upon each subsequent annual renewal, have complet-ed,
within one year preceding license expiration, eight class-room
hours of real estate continuing education in cours-es
approved by the Commission as provided in Subchap-ter
58E. Four of the required eight classroom hours must
be obtained each license period by completing a mandatory
update course developed annually by the Commission. The
remaining four hours must be obtained by completing one
or more Commission-approved elective courses described in
Rule .0305 of Subchapter 58E. The licensee bears the re-sponsibility
for providing, upon request of the Commission,
evidence of continuing education course completion satis-factory
to the Commission.
(b) No continuing education shall be required to renew
a broker license on inactive status; however, to change a li-cense
from inactive status to active status, the licensee must
satisfy the continuing education requirement described in
Rule .1703 of this Section.
(c) No continuing education shall be required for a li-censee
who is a member of the U. S. Congress or North Car-olina
General Assembly in order to renew his or her license
on active status.
(d) The terms “active status” and “inactive status” are de-fined
in Rule .0504 of this Subchapter. For continuing ed-ucation
purposes, the term “initial licensure” shall include
the first time that a license of a particular type is issued to
a person, the reinstatement of a canceled, revoked or sur-rendered
license and any license expired for more than six
months. The issuance, pursuant to G.S. 93A-4.3, of a bro-ker
license on provisional status on April 1, 2006 to licens-ees
who held a salesperson license as of that date shall not be
considered to constitute initial licensure for continuing ed-ucation
purposes.
A.1703 Continuing Education for Li­cense
Activation
(a) A broker requesting to change an inactive license
to active status on or after the licensee’s second license re-newal
following his or her initial licensure shall be required
to demonstrate completion of continuing education as de-scribed
in Paragraph (b) or (c) of this Rule, whichever is ap-propriate.
(b) If the inactive licensee’s license has properly been on
active status at any time since the preceding July 1, the li-censee
is considered to be current with regard to continu-ing
education and no additional continuing education is re-quired
to activate the license.
(c) If the inactive licensee’s license has not properly been
on active status since the preceding July 1 and the licensee
has a deficiency in his or her continuing education record for
the previous license period, the licensee must make up the
deficiency and fully satisfy the continuing education require-ment
for the current license period in order to activate the li-cense.
Any deficiency may be made up by completing, dur-ing
the current license period or previous license period, ap-proved
continuing education elective courses; however, such
courses will not be credited toward the continuing education
requirement for the current license period. When crediting
elective courses for purposes of making up a continuing edu-cation
deficiency, the maximum number of credit hours that
will be awarded for any course is four hours. When evaluat-
22 North Carolina Real Estate License Law and Commission Rules
ing the continuing education record of a licensee with a defi-ciency
for the previous license period to determine the licens-ee’s
eligibility for active status, the licensee shall be deemed
eligible for active status if the licensee has fully satisfied the
continuing education requirement for the current license pe-riod
and has taken any two additional continuing education
courses since the beginning of the previous license period,
even if the licensee had a continuing education deficiency
prior to the beginning of the previous license period.
A.1704 No Credit for Prelicensing or Postlicensing
Cou­rses
No credit toward the continuing edu­cation
require­ment
shall be awarded for completing a real estate prelicen­sing
or
postlicensing course.
A.1705 Attendance and Participation Requirements
In order to receive any credit for satisfactorily com­pleting
an approved continuing education course, a licensee must
attend at least 90 percent of the sche­duled
classroom hours
for the course, regardless of the length of the course, and
must comply with stu­dent
participation standards described
in Rule .0511 of Subchapter 58E. No credit shall be award-ed
for attending less than 90 percent of the scheduled class-room
hours. The 10 percent absence allowance is permit-ted
for any reason at any time during the course except that
it may not be used to skip the last 10 percent of the course
unless the absence is for circumstances beyond the licensee’s
control that could not have been reasonably foreseen by the
licensee and is approved by the instructor. With regard to
the Commission’s 12-hour Broker-In-Charge Course that is
taught over two days, a licensee must attend at least 90 per-cent
of the scheduled classroom hours on each day of the
course and the 10 percent absence allowance cited above
shall apply to each day of the course.
A.1706 Repetition of Courses
A continuing education course may be taken only once for
continuing education credit within a single license period.
A.1707 Elective Course Carry-Over Credit
A maximum of four hours of continuing education cred-it
for an approved elective course taken during the current
license period may be carried over to satisfy the continu-ing
education elective requirement for the next following
license period if the licensee receives no continuing educa-tion
elective credit for the course toward the elective require-ment
for the current license period or the previous license
period. However, if a contin­uing
education elective course
is used to wholly or partially satisfy the elective requirement
for the current or previous license period, then any excess
hours completed in such course which are not needed to sat-isfy
the four-hour elective requirement for that license peri-od
may not be carried forward and applied toward the elec-tive
requirement for the next following license period.
A.1708 Equivalent Credit
(a) A licensee may request that the Commission award
continuing education credit for a course taken by the licens-ee
that is not approved by the Commission, or for some oth-er
real estate education activity, by making such request on a
form prescribed by the Commission and submitting a non-refundable
evaluation fee of thirty dollars ($30.00) for each
request for evaluation of a course or real estate education
activity. In order for requests for equivalent credit to be
considered and credits to be entered into a licensee’s con-tinuing
education record prior to the June 30 license ex-piration
date, such requests and all supporting documents
must be received by the Commission on or before June
10 preceding expiration of the licensee’s current license,
with the exception that requests from instructors desiring
equivalent credit for teaching Commission-approved con-tinuing
education courses must be received by June 30.
Any equivalent continuing education credit awarded un-der
this Rule shall be applied first to make up any continu-ing
education deficiency for the previous license period
and then to satisfy the continuing education requirement
for the current license period; however, credit for an un-approved
course or educational activity, other than teach-ing
an approved elective course, that was completed dur-ing
a previous license period may not be applied to a sub-sequent
license period.
(b) The Commission may award continuing education
elective credit for completion of an unapproved course
which the Commission finds equivalent to the elective
course component of the continuing education require-ment
set forth in Section .0300 of Subchapter 58E. Com-pletion
of an unapproved course may serve only to satis-fy
the elective requirement and cannot be substituted for
completion of the mandatory update course.
(c) Real estate education activities, other than teaching
a Commission-approved course, which may be eligible for
credit include, but are not limited to: developing a Com-mission-
approved elective continuing education course,
authorship of a published real estate textbook; and author-ship
of a scholarly article, on a topic acceptable for con-tinuing
education purposes, which has been published in
a professional journal such as a law journal or professional
college or university journal or periodical. The Commis-sion
may award continuing education elective credit for
activities which the Commission finds equivalent to the
elective course component of the continuing education re-quirement
set forth in Section .0300 of Subchapter 58E.
No activity other than teaching a Commission-developed
mandatory update course shall be considered equivalent to
completing the mandatory update course.
(d) The Commission may award credit for teaching
the Commission-developed mandatory update course
and for teaching an approved elective course. Credit
for teaching an approved elective course shall be award-ed
only for teaching a course for the first time. Cred-
North Carolina Real Estate License Law and Commission Rules 23
it for teaching a Commission-developed mandatory up-date
course may be awarded for each licensing period in
which the instructor teaches the course. The amount of
credit awarded to the instructor of an approved continu-ing
education course shall be the same as the amount
of credit earned by a licensee who completes the course.
Licensees who are instructors of continuing education
courses approved by the Commission shall not be sub-ject
to the thirty dollar ($30.00) evaluation fee when ap-plying
for continuing education credit for teaching an
approved course. No credit toward the continuing edu-cation
requirement shall be awarded for teaching a real
estate prelicensing or postlicensing course.
(e) A licensee completing a real estate appraisal preli-censing,
precertification or continuing education course
approved by the North Carolina Appraisal Board may ob-tain
real estate continuing education elective credit for
such course by submitting to the Commission a written
request for equivalent continuing education elective credit
accompanied by a nonrefundable processing fee of twen-ty
dollars ($20.00) and a copy of the certificate of course
completion issued by the course sponsor for submission to
the North Carolina Appraisal Board.
A.1709 Extensions of Time to Complete Continuing
Education
A licensee on active status may request and be granted
an extension of time to satisfy the continuing education
requirement for a particular license period if the licensee
provides evidence satisfactory to the Commission that he
or she was unable to obtain the necessary education due to
an incapacitating illness or other circumstance which exist-ed
for a substantial portion of the license period and which
constituted a severe and verifiable hardship such that to
comply with the continuing education requirement would
have been impossible or unreasonably burdensome. The
Commission shall in no case grant an extension of time to
satisfy the continuing education requirement for reasons of
business or personal conflicts. The Commission also shall
not grant such an extension of time when, in the opinion
of the Commission, the principal reason for the licensee’s
inability to obtain the required education in a timely man-ner
was unreasonable delay on the part of the licensee in
obtaining such education. If an extension of time is grant-ed,
the licensee shall be permitted to renew his or her li-cense
on active status but the license shall be automatically
changed to inactive status at the end of the extension peri-od
unless the licensee satisfies the continuing education re-quirement
prior to that time. If an extension of time is not
granted, the licensee may either satisfy the continuing ed-ucation
requirement prior to expiration of the license peri-od
or renew his or her license on inactive status. The length
of any extension of time granted and the determination of
the specific courses which shall be accepted by the Com-mission
as equivalent to the continuing education the li-censee
would have been required to have completed had
the licensee not been granted the extension is wholly dis-cretionary
on the part of the Commission. The licensee’s
request for an extension of time must be submitted on a
form prescribed by the Commission.
A.1710 Denial or Withdrawal of Continuing
Education Credit
(a) The Commission may deny continuing educa­tion
credit
claimed by a licensee or reported by a course sponsor for a licens-ee,
and may withdraw continuing education credit previously
awarded by the Commission to a licensee upon finding that:
(1) The licensee or course sponsor provided incor­rect
or
incomplete information to the Commis­sion
concerning
continuing education complet­ed
by the licens­ee;
(2) The licensee failed to comply with either the atten-dance
requirement established by Rule .1705 of this
Section or the student participa­tion
standards set forth
in Rule .0511 of Sub­chapter
58E; or
(3) The licensee was mistakenly awarded con­tinuing
education credit due to an administra­tive
error.
(b) When continuing education credit is denied or with-drawn
by the Commission under Paragraph (a) of this Rule,
the licensee remains responsible for satisfy­ing
the continuing
education requirement. However, when an administrative er-ror
or an incorrect report by a course sponsor results in the de-nial
or withdrawal of continuing education credit for a licens-ee,
the Commis­sion
may, upon request of the licensee, grant
the licensee an extension of time to satisfy the con­tinuing
ed-ucation
requirement.
(c) A licensee who obtains or attempts to obtain continu-ing
education credit through misrepresenta­tion
of fact, dis-honesty
or other improper conduct shall be subject to disci-plinary
action pursuant to G.S. 93A-6.
A.1711 Continuing Education Required of Nonresi­dent
Licensees
(a) To be considered a nonresident for continuing education
purposes, a real estate broker licensed in North Carolina shall
not have a North Carolina business address, mailing address or
residence address at the time he or she applies for license renew-al
if he or she seeks to renew his or her license on active status. A
nonresident North Carolina broker who wishes to renew his or
her license on active status may fully satisfy the continuing edu-cation
requirement by any one of the following means:
(1) A nonresident licensee may, at the time of license
renewal, hold a real estate license on active status in
another state and certify on a form prescribed by the
Commission that the licensee holds such license.
(2) A nonresident licensee may, within one year pre-ceding
license expiration, complete the Commission-prescribed
Update course plus one Commission-ap-proved
continuing education elective course, or com-plete
two Commission-approved continuing educa-tion
elective courses.
24 North Carolina Real Estate License Law and Commission Rules
(3) A nonresident licensee may, within one year pre-ceding
license expiration, complete eight classroom
hours in courses approved for continuing education
credit by the real estate licensing agency in the licens-ee’s
state of residence or in the state where the course
was taken. To obtain credit for a continuing education
course completed in another state and not approved
by the Commission, the licensee must submit a writ-ten
request for continuing education credit accompa-nied
by a nonrefundable processing fee of twenty dol-lars
($20.00) per request and evidence satisfactory to
the Commission that the course was completed and
that the course was approved for continuing education
credit by the real estate licensing agency in the licens-ee’s
state of residence or in the state where the course
was taken.
(4) A nonresident licensee may obtain eight hours
equivalent credit for a course or courses not approved
by the Commission or for related educational activities
as provided in Rule .1708 of this Section. The maxi-mum
amount of continuing education credit the Com-mission
will award a nonresident licensee for an unap-proved
course or educational activity is eight hours.
(b) When requesting to change an inactive license to ac-tive
status, or when applying for reinstatement of a license
expired for n