The Real Estate Commission, pursuant to authority vested in it by N.C. General Statutes, proposes to adopt and amend the following rules contained in Title 21, Chapter 58 of the N.C. Administrative Code. Anyone interested in the Commission's proposals may present comments at a public rulemaking hearing to be held at 2:00 p.m. on January 3, 1996, at the Commission's Raleigh off~ce at 1313 Navaho Drive. Written comments not presented at the hearing should be delivered by the hearing date to the N.C. Real Estate Commission, P.O. Box 17100, Raleigh, NC 27619-7100.
Although nearly all of the changes make either technical corrections to or relax existing rules, the Commission, sensitive to concerns expressed by Governor Hunt and the Legislature, reserves the right to withdraw submission of any or all of the proposed rule changes prior to the scheduled rule making hearing. Therefore, interested persons should call the Commission office (919)733-9580) by December 15 for information concerning the hearing.
Real Estate Brokers and Salesmen
1. Amend Rule A.0104 to permit.a seller's agent or subagent to orally disclose to prospective purchasers his agency relationship if his "first substantial contact" with the purchaser is by telephone, electronic or means other than an in-person meeting. The agent would then be required to immediately, but in no event later than three days thereafter, mail or transmit to the purchaser for his signature a copy of the "Disclosure to Buyer from Seller's Agent or Subagent" form.
2. Amend Rule A.0104 to address agency disclosure requirements when a real estate broker sells his client's property at auction.
3. Amend Rule A.0107 to require a broker to deposit in his trust account monies received in connection with his management of a property owners' association.
4. Adopt a new rule (A.0113) to require licensees to notify the Commission when they have been convicted of certain criminal offenses.
5. Amend Rule A.0302 to require a license applicant to provide updated information or file a new application form when necessary to assure that application information is current.
6. Amend Rule A.0401(b) to limit a license applicant to one request to reschedule an examination per application without having a legitimate reason to be excused and to limit applicants to three excused absences per application.
7. Amend Rule A.0402 to limit to one year the amount of time license examination results will remain valid for application purposes.
8. Amend Rule A.0502 to require the licensing of business entities (corporations, partnerships, limited liability companies, etc.) other than sole proprietorships in order to engage in the real estate brokerage business.
9. Amend Rule A.0503(b) to delete the now obsolete phrase "Beginning in 1995,..."
10. Amend Rule A.0504(d) and A.0506(b) to delete the requirement that the form for requesting license activation include a list of recently-completed continuing education courses.
11. Amend Rule A.0505(a) to delete the now obsolete reference to the beginning date of July 1, 1995.
12. Amend Rule A.0505(b) to clarify that applicants for reinstatement of a license expired for more than 12 months must also demonstrate that they possess the requisite moral character in addition to the current knowledge, skills and competence required by the current rule.
13. Amend Rule A.0505 by adding new paragraphs (c), (d) and (e) prescribing requirements and procedures for the reinstatement of licenses that have been revoked, surrendered or suspended
14. Amend Rule A.0506(a) to clarify that a salesman may have only one broker-in-charge at a time.
15. Amend Rule A.0506(b) to clarify that a broker-in-charge and salesman are equally responsible for notifying the Commission when the broker activates a salesman.
16. Adopt a new rule (A.0510) providing that when a person holding a salesman license is issued a broker license, the salesman license shall be automatically canceled.
17. Adopt a new rule (A.0610) concerning applications to quash subpoenas issued by the Commission.
18. Amend Rule A.1702(a) to delete the now obsolete reference to the beginning date of July 1, 1995.
19. Amend Rule A.1708(a) to provide that requests for equivalent continuing education credit must be received by June 10 rather than 60 days prior to the license expiration date.
20. Amend Rule A.1708(a), (c), (d) and (f) to permit licensees to use equivalent continuing education credit for an unapproved course or educational activity completed in a previous license period to make up a continuing education deficiency for such previous license period and to better explain how equivalent credits will be awarded when the licensee has a continuing education deficiency.
21. Amend Rule A.1711(a) regarding continuing education for nonresident licensees by changing the processing fee from $20 per course to $20 per request.
22. Amend Rule A.1711(a) and (c) to clarify the options for satisfying the continuing education requirement; to provide an additional option providing that, at the time of license renewal, a nonresident licensee may certify that he holds a real estate license on active status in a state other than North Carolina; and to clarify that nonresident licensees may earn a maximum of 8 hours of equivalent continuing education credit for an unapproved course or educational activity.
Prelicensing Education
1. Amend Rule C.0104(b) to provide for the approval of colleges, universities, community and technical colleges, and trade schools to expire on December 31 of each odd-numbered year.
2. Amend Rule C.0305(b) by adding a provision to require that, whenever a school proposes to conduct a course that will meet for a total of more than 6 hours on any 2 consecutive days, the school must first obtain approval from the Commission of a plan for conducting such course that will assure sufficient time is available for the required instruction to be provided by a combination of classroom instruction and out-of-class textbook reading and other assignments.
3. Amend Rule C.0306 to require that instructors make appropriate out-of-class reading assignments in the approved text and any other prescribed instructional materials.
4. Amend Rule C.0307(a)(1), (3) and (4) to require instructors who are required to have a North Carolina real estate license to have a current continuing education record rather than a license "in good standing".
5. Amend Rule C.0307 to define a standard of instructor conduct and performance and to require approved schools to submit videotapes of instructors upon request of the Commission.
6. Adopt a new rule (C.0311) to address the use or nonuse of a variety of instructional delivery methods in prelicensing courses.
7. Adopt a new rule (C.0312) permitting approved schools to deviate from certain Commission rules when necessary to accommodate persons with disabilities when attending prelicensing courses.
Continuing Education
1. Amend Rule E.0203(e) to reflect that DREI stands for Distinguished Real Estate Instructor.
2. Amend Rule E.0204 to delete the now obsolete reference to dates.
3. Amend Rule E.0302 to provide that no continuing education credit will be awarded to licensees taking an approved elective course that is conducted in North Carolina between June 11 and June 30 of any year. This would replace the current provision which prohibits sponsors of approved elective courses from conducting such courses between June 11 and June 30. Also, the rule would provide that any sponsor which conducts an approved elective course in North Carolina between June 11 and June 30 must advise students no later than the beginning of the course that the Real Estate Commission will not award continuing education credit for such course.
In addition, sponsors conducting any special advertising or promotion of a particular course to be held between June 11 and June 30 would be prohibited from stating that the course is approved for continuing education credit by the North Carolina Real Estate Commission.
4. Amend Rule E.0303 to delete the block-out period for submission of applications for original approval of elective courses.
5. Amend Rule E.0304 and adopt a new rule (E.0310) on instructional delivery methods to permit interactive computer-based programs to be used as a primary method of course delivery in continuing education elective courses.
6. Amend Rule E.0406(a) to refer to required course completion reports generally rather than by specific name.
7. Amend Rule E.0406(b) to state that sponsors must provide licensees an opportunity to complete evaluations of continuing education courses upon the request of the Commission. Currently sponsors are required to have licensees complete such evaluations for each class session.
8. Amend Rule E.0406(d) to provide that when a licensee fails to comply with student participation standards, the sponsor shall not provide the licensee with a course completion certificate nor report that the licensee has completed the course, and the sponsor shall report the licensee's noncompliance in writing to the Commission.
9. Amend Rule E.0406 by adding a new paragraph (e) to exempt "national professional trade organizations" conducting approved continuing education courses out of state from the obligation to submit course completion reports on forms prescribed by the Commission, provided such sponsors timely submit rosters of North Carolina licensees who have completed the course along with the $5 per student fee. Also, the rule amendment would allow such sponsors the option to provide licensees a sponsor-developed course completion certificate in place of a certificate on a form prescribed by the Commission.
10. Amend Rule E.0407 to refer to required course completion reports generally rather than by spec~fic name.
11. Amend Rule E.0411 to change the deadline for renewal of course and sponsor approval from March 31 to April 30 to provide that when an original course or sponsor approval is granted after April 1, the deadline for renewal of such approval shall be June 10.
12. Amend Rule E.0503 to provide that compliance with the minimum class size requirement, which is 5, shall be determined by the number of students preregistered for the course and that the minimum class size restriction shall not apply if the sponsor notifies the Commission of the class session in a timely manner and advertises the class session generally in the local real estate community. The rule would also require sponsors to provide proof of advertising to the Commission. Amend Rule E.0511(a) and (b) to provide that sponsors as well as instructors shall have the responsibility for enforcing the student participation standards, that sponsors shall not issue course completion reports or report successful completion for students violating the standards, and that sponsors shall provide a timely detailed report to the Commission of violations by a student.