By Blackwell M. Brogden, Jr., Chief Deputy Legal Counsel
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In order to fulfill its obligations to real estate consumers, the Real Estate Commission must seek to ensure that its applicants for licensure are worthy of the public's trust. As stated in the License Law and Commission rules, requisite character traits include "honesty, truthfulness, integrity." But how does the Commission determine whether applicants possess these traits? |
The Application
The license application form is designed, in part, to measure the applicant's worthiness for licensure. It requires each applicant to supply the names of two character references and information about any prior professional license problems, criminal charges or convictions, and unresolved civil claims.
This and other information is reviewed by the Executive Director of the Commission after the applicant has passed the license examination.
The Character Inquiry and Conference
As a part of the review process, the Commission staff may make further inquiries to other agencies, organizations, or potential witnesses and require applicants to explain any discrepancies between the information they reported and information obtained by these inquiries.
At its regular monthly meeting, the Commission considers applications for licensure. When a question remains concerning an applicant's character, the Commission continues its consideration of the application, and gives the applicant an opportunity for a conference to assess the applicant's character and review points of concern.
The Character Conference
The conference is an informal meeting among two members of the Commission, the Executive Director, a staff attorney, the applicant, and the applicant's attorney (if the applicant has one). At the conference, the participants have an opportunity to discuss concerns about the applicant's character.
If, following the conference, the two Commission members are persuaded that the applicant is qualified for licensure, they will recommend to the full Commission that the license be issued. But if a question still remains, the license will not be issued and the applicant will be notified of his/her right to a formal hearing before the entire Commission. Any applicant who desires a hearing must request one within 60 days following receiving the notification. The Commission will then serve the applicant with a "Notice of Hearing," which will describe the evidence alleging that he or she lacks the necessary character for licensure.
The Character Hearing
At the hearing, the applicant may be represented by counsel, and a Commission attorney represents the State to oppose the application. The applicant is given an opportunity to explain the events which raised character questions. Witnesses may be called by the applicant and the Commission's attorney to testify under oath subject to cross-examination, and facts concerning the applicant's character are entered into evidence. A court reporter transcribes the hearing into a permanent record.
Commission members hearing the case examine the evidence and assess the applicant's character before deciding whether to entrust the applicant with a license. Because each applicant and each situation is different, the determination of whether a person is worthy of licensure is made on an individual basis. Therefore, it is impossible to say whether a particular circumstance will cause the Commission to deny licensure to an applicant.
The grant or denial of an application for licensure by the Commission is set out in a formal order issued after the hearing. This final decision is subject to judicial review under North Carolina law.
An average of six or more conferences and hearings are conducted by the Commission each month, with most hearings taking between one and two hours.
Conclusion
Some applicants immediately satisfy the Commission as to their honesty, truthfulness, and integrity; receive a license; and enter a new career as real estate professionals. Others go through the character review process several times over a period of years before obtaining a license. Some are never licensed.
The Commission rarely has had to impose disciplinary action against licensees who went through the full character review process prior to licensure. Therefore, the benefits of the process are worth the Commission's investment of time and resources.