Nonresident Licensees Can Apply July 1 for New Commercial Licenses

 

Beginning July 1, 2004, anyone who holds an active real estate broker or salesperson license from a state other than North Carolina (the individual’s “qualifying state”) and also resides in another state, may obtain a North Carolina limited nonresident commercial real estate broker or salesperson license.

They will not be required to take any prelicense education or license examination in North Carolina, nor is it necessary that their qualifying state offer a similar licensing option to North Carolina licensees.However, if the state where they are residing has a reciprocal licensing arrangement with North Carolina , they will find it more advantageous to acquire a regular license by reciprocity.

Legislation authorizing this special license was obtained last year at the urging of North Carolina ’s organized commercial brokerage community.It is hoped that by making it easier for nonresident commercial real estate agents representing out-of-state clients to do business in North Carolina, the businesses they represent will be encouraged to locate in North Carolina .The Commission recently adopted rules implementing the licensing program.

An eligible person must first apply to the Real Estate Commission and obtain a limited nonresident commercial real estate license before engaging in any real estate brokerage activity in North Carolina .The application fee for an original license will be $100.Applicants must provide proof of their licensure in their qualifying state and a criminal record report, as is required for any other applicant.The Commission must find that the applicant possesses the requisite moral character for licensure.

A limited nonresident commercial real estate licensee may perform real estate brokerage acts in North Carolina for compensation with the following two primary limitations:

1. Practice in North Carolina will be limited to transactions involving “commercial real estate” as defined in Commission rules; and

2. Before using the license, the nonresident commercial licensee must enter into a brokerage cooperation agreement and declaration of affiliation with a resident North Carolina broker and must be supervised by the North Carolina broker while performing brokerage services in North Carolina .

The resident North Carolina broker with whom the nonresident commercial licensee affiliates must:

(1) verify the nonresident licensee’s North Carolina licensure;

(2) actively and personally supervise the licensee;

(3) hold all trust monies received by the licensee in connection with North Carolina brokerage activities; and

(4) maintain transaction records and copies of cooperation and affiliation agreements as required by Commission rule.

Beginning July 1, 2004, persons interested in this licensing program may obtain program information and an application form by contacting the Commission office or accessing the Commission’s website at www.ncrec.state.nc.us.