Rule Amendments Effective April 1, 2004

 

The highlights of Real Estate Commission rule amendments becoming effective April 1 are summarized below. For a complete text, please contact the Commission.

 

Property Management

  • Property owner association management agreements must be in writing.

·        The rule providing that a property management agreement may be automatically renewable so long as it contains provision for termination with notice is clarified to apply even if the property manager did not procure the tenant.

 

Broker-in-Charge

·        The exemption from designating a broker-in-charge is clarified to apply only to a subchapter S firm which is organized for the sole purpose of receiving compensation for brokerage services furnished by its principal broker through another firm.

·        An out-of-state broker-in-charge of a principal or branch office not located in North Carolina shall not be required to complete the broker-in-charge course.

 

License Renewal

·        The license renewal fee will change to $45 effective January 1, 2006.

 

License Reinstatement

·        The rules for reinstatement of an expired or suspended license have been revised to conform to the Real Estate Law including a $55 reinstatement fee and payment of accrued renewal fees following suspension. (Further information is available on the Commission’s website).

 

Business Entities

·        Rule revisions streamline the firm license application process.

 

License Exams

·        The paper and pencil exam is eliminated. The rules allow license applicants 180 days to take the test, clarify procedures for failing candidates to re-file through the computer testing service and stipulate a waiting period of 10 days to retake the test.

 

Pre-Licensing and Continuing Education

·        Applicants for a broker license after the first salesperson license renewal must have completed the current continuing education update course and one approved elective course during the license period in which the application is filed.

·        Digital video recordings (DVDs) and other media may be used in place of VHS videotape for instructor applicants.

·        The Commission may deny or withdraw approval of a course or sponsor upon finding that the sponsor made false statements or presented incomplete or incorrect information in its application for approval.

·        A minimum of one instructor or sponsor staff person must be present for each 50 students in a continuing education class.