NC Real Estate Commission Proposes New Rule Changes

The North Carolina Association of REALTORS® (NCAR) is seeking feedback from our members on the changes in advance of the public hearing and request your assistance in providing them with input.

A copy of all the proposed changes can be downloaded HERE and is also available on the NCREC website, and an article with additional details appears in the October edition of the NC Real Estate Bulletin.

While many of the changes simply re-organize or slightly amend existing rules, there are some substantive changes that REALTORS® should be aware of, including new rules allowing Broker Price Opinions for a fee and proposals to increase license fees charged by the NCREC. These are summarized below, but in order to view all proposed changes, please click the link above:

21 NCAC 58A .0103 – This rule is being amended: to clarify that licensees doing business under assumed names must register the name with the Register of Deeds in each county in which the licensee intends to do business; to clarify that a sole proprietorship, partnership, or other business entity other than a corporation or limited liability company may not include the name of a provisional broker or an unlicensed person in the name of the firm; to clarify that no licensee shall use in its name the name of any active, inactive, or cancelled broker without the permission of that broker.21 NCAC 58A .0107 – The full text of this rule is being repealed and reorganized into three new rules: 21 NCAC 58A .0116 Handling of Trust Money, 21 NCAC 58A .0117 Accounting for Trust Money, and 21 NCAC 58A .0118 Trust Money Belonging to Property Owners’ Associations.21 NCAC 58A .0108 – Changes made to this rule simply adds broker price opinions to the records a real estate broker is required to retain.21 NCAC 58A .0110 – This rule is being reorganized to clarify that sole proprietorships must designate a broker-in-charge unless otherwise exempt. It will also: clarify the delivery address requirements for a broker-in-charge of multiple firms; eliminate the 10 day period for the filing of a broker-in-charge declaration; clarify that the Commission designates a broker-in-charge after eligibility is determined; eliminate the requirement that a broker-in-charge provide statements to the Commission about work performed by a broker under his or her supervision; and require a broker-in-charge to take the 12 hour broker-in-charge course if his or her status is terminated for failure to complete education requirements.21 NCAC 58A .0116 – This is a new rule being created to govern the handling of funds belonging to others. It consists of paragraphs (a), (b), (c), (g), (h) and (j) of current Rule 21 NCAC 58A .0107.21 NCAC 58A .0117 – This is also a new rule being created to govern the accounting of funds belonging to others. It consists of paragraphs (d) and (e) of current Rule 21 NCAC 58A .0107 and adds a personal funds provision as well as a provision concerning bank reconciliation.21 NCAC 58A .0118 – Adoption of this rule will limit the responsibilities of broker/property owners who handle funds of their own homeowner’s association.21 NCAC 58A .2201 – This rule will define broker price opinions and comparative market analyses.21 NCAC 58A .2202 – This rule will provide minimum requirements for BPO and CMA assignments that may be accepted by licensees and would establish minimum standards for performing BPOs and CMAs.21 NCAC 58A .0503 – If passed, this rule will raise the annual license renewal fee from $40 to $45.21 NCAC 58A .0504 – The intent of this rule is to allow the submission of license activation forms over the internet.21 NCAC 58A .0506 – This rule will facilitate electronic filing of notifications of supervision and requests for license activation by requiring only the broker-in-charge’s signature. In addition, it will add satisfaction of post-licensing education deficiency as one of the requirements for license reactivation.21 NCAC 58B .0102 – The proposed change to this rule will: standardize the fee for the initial and all subsequent time share registrations for developers selling eleven or more time share to $1,000; increase the fee for the initial and all subsequent time share registrations for developers selling ten or fewer time shares from $600 to $700; and increase the fee for registration of time shares acquired by homeowners’ associations in satisfaction of unpaid assessments from $400 to $500.21 NCAC 58B .0103 – Amendments to this rule will increase the fee for renewing time share project registrations from $750 to $800.

REBIC will be reviewing the proposed rules and will submit comments ahead of December public hearing date. If you have any comments or concerns, please e-mail David McGowan, NCAR’s Director of Regulatory Affairs.

Source: NCAR