EDUCATION & LICENSING  NEWS

Scholarships Awarded

The North Carolina Real Estate Educational Foundation recently named this year's recipients of two scholarships sponsored by the Commission recognizing outstanding achievement at the North Carolina REALTORS Institute. Rebecca Hedgecock of High Point was awarded the "Joe Schweidler Memorial Scholarship" for attaining the highest scholastic average in Course B. and Lomes W. Creech of Wendell received the "Blanton Little Memorial Scholastic Achievement Award" for outstanding academic achievement at the Institute.

Reciprocity

South Carolina has repealed its residency requirement for real estate licensing effective November 30, 1988. Consequently North Carolina residents may now obtain nonresident South Carolina real estate licenses by satisfying South Carolina's prelicensing requirements and passing their licensing examination (and vice versa). As a result of this change, the South Carolina Real Estate Commission has notified the North Carolina Real Estate Commission that it will no longer license North Carolina resident licensees by reciprocity, and reciprocity between the two states was terminated also effective November 30, 1988.

However, the South Carolina Real Estate Commission will continue to honor nonresident reciprocal licenses issued to North Carolina resident licensees on and before November 30, so long as they remain current and in good standing. The North Carolina Real Estate Commission will treat South Carolina resident licensees holding North Carolina nonresident recriprocal licenses in the same manner. [Note: For additional information concerning the qualification requirements for South Carolina real estate If ceases, contact the South Carolina Real Estate Commission, Capitol Center - AT&T Building, 1201 N. Main Street, Suite 1500, Columbia, South Carolina, 29201, Phone (803) 737-0700.1

In other reciprocity news, the North Carolina Real Estate Commission entered into a reciprocal licensing agreement with the Indiana Real Estate Commission on October 5, 1988 whereby qualified Indiana real estate brokers and salesmen may obtain nonresident North Carolina real estate licenses without passing North Carolina's real estate licensing examination, and vice versa. Applicants for broker licenses, however, must have held a broker license in their resident state for at least two years. [Note: For additional information concerning the qualification requirements for Indiana real estate Incenses, contact the Indiana Real Estate Commission, 100North Senate Avenue, 1021 State Office Building, Indianapolis, Indiana, 46206, Phone (317) 232-2980 1

North Carolina currently has reciprocal licensing agreements with the following states providing for waiver of the licensing examination: Arkansas, Connecticut, Delaware, Indiana, New Jersey, Oklahoma, Tennessee and West Virginia.

Coastal Property Workshops

The Real Estate Commission, in conjunction with UNC Sea Grant, the NC Division of Coastal Management and NC State's Department of Civil Engineering recently sponsored four one-day workshops entitled, "Coastal Property Workshop; Planning Constructing and Selling Barrier Island Real Estate."

More than 350 people attended the workshop in Raleigh, Kill Devil Hills, Morehead City or Wrightsville Beach. Topics covered included the Coastal Area Management Act, the North Carolina Building Code, the Real Estate License Law and Rules, consumer protection statutes, and the Time Share Act, with an emphasis on how those laws affect site selection, building and selling coastal property.

License Application Trends

Do applications for real estate licenses reflect activity in the real estate market? An analysis of applications received by the Real Estate Commission during the ten-year period 1978-1988 tend to indicate that this relationship does, in fact, exist.

Note especially the decrease in license applications during the early part of the 1980's at a time when the economy and real estate activity was sluggish, and the peak periods of 1986 and 1987 when interest rates were low and home sales brisk. If the volume of license applications is indeed a sign of market strength, then perhaps the Commission's best wish for its licensees is that license applications continue to escalate in the years ahead.

Broker-In-Charge
Verification of Salesman's Experience

Brokers-ln-Charge are frequently asked by one of their salesmen to verify that salesman's experience to the Real Estate Commission. This verification is usually requested by the salesman so that he or she can qualify to sit for the broker examination without taking additional prelicensing courses. The Real Estate License Law allows licensed salesmen to do so if the salesman has completed at least two years of active, full-time experience in real estate brokerage within five years immediately preceding the date of application. Both salesmen and Brokers-ln-Charge should, therefore, be aware of the Commission's requirements with regard to such verification and of the need to maintain accurate employment records and to strictly comply with the Commission's rules relating to supervision of salesmen.

The verification of a salesman's experience by a supervising Broker-ln-Charge must be in letter form and must:

(1) state the specific dates of supervised employment; and

(2) state the average number of hours per week devoted to real estate brokerage; and

(3) describe the specific duties performed by the salesman during the supervised employment period.

Qualifying experience must involve real estate brokerage activities as defined in the License Law, and the minimum required experience must have been obtained prior to the date of application. The Commission will recognize part-time experience which is equivalent to full-time (40 hours per week) experience as satisfying this requirement. The Commission also reserves the right to request additional verification or explanation of experience in any case.

It is especially important to note that generally a Broker-ln-Charge may only verify the experience obtained by a salesman Thus under his or her active supervision. Thus, a salesman may often need to obtain verification letters from both present and former Brokers-ln-Charge in order to properly verify at least two years' experience. If a problem is encountered in obtaining a verification letter From a former Broker-ln-Charge, then the salesman should contact the Commission's Licensing Department before filing his application.

A false claim by a salesman in a broker license application as to the salesman's qualifying experience is grounds for denial of the application and disciplinary action against the salesman. Similarly, a false verification by a broker of a salesman's qualifying experience is grounds for disciplinary action against the broker.

Salesmen and Brokers-ln-Charge should also be aware that the Commission may not recognize a salesman's experience for any period during which, accordion to the Commission's records, the salesman Ivan not properly being supervised. Therefore, it is extremely important that Brokers-In-Charge strictly comply with Commission rules by promptly filing a "Supervision of Salesman Notification" form with the Commission immediately upon becoming Broker-ln-Charge of an office and when each new salesman joins the firm. [Note: Refer to page 10 of this Bulletin for a Supervision of Salesman Notification form which may be duplicated for your use.] A salesman may not receive credit for experience which predates the supervision form filed by the Broker-ln-Charge.

A Broker-ln-Charge must also immediately notify the Commission in writing upon termination of his supervision of a salesman, giving date of termination and current home address of the salesman, so that the salesman's license can be placed on inactive status.

Salesman should be aware that they are also responsible for seeing that properly completed "Supervision of Salesmen Notification" forms are filed when they associate with a Broker-In-Charge, and that written notification is sent to the Commission upon their termination of supervision. A salesman is prohibited from performing brokerage activities without proper supervision.

Violations of the License Law and Commlsslon rules which are dlecovered in connection with a salesman's application for a broker license may result in dlsclplinary Fctlon against both the salesman and the current~and former Brokers-ln-Charge.

What Is A License Suspension?

Disciplinary action taken by the Real Estate Commission against a licensee sometimes involves the suspension of the salesman or broker's real estate license. What is the effect of a license suspension?

When a salesman or broker's license is suspended, the licensee is prohibited from engaging in real estate brokerage activities during the period of the suspension specified in the Real Estate Commission's Order. This means that the licensee CANNOT:

• receive payment from the Broker-ln-Charge for referring prospects during the period of the suspension;
• allow his or her name to appear on "For Sale" signs or other advertising;
• attend closings on sales under contract (but not closed) at the time the suspension goes into effect;
• solicit new listings;
• continue to service listings of prospects obtained prior to suspension;
• locate properties for new purchasers; or
• engage in any other traditional real estate brokerage services.

Licensees whose licenses have been suspended may resume real estate brokerage activity when the period of license suspension ends, provided that they have fulfilled any other conditions imposed upon them in the Order of Suspension. However, licensees who engage in real estate brokerage activities prior to the expiration of the suspension period are subject to further disciplinary action by the Commission.

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