It is reported that the real estate industry is the fastest growing industry in this country today. This growth is reflected in the great numbers of persons seeking license from the appropriate regulatory agencies to enter the field

The impact of this growth has been felt by the North Carolina Real Estate Licensing Board. Applications for license increase each month. The number of licensees, brokers and salesmen, has more than doubled in the lost several years, and the percentage of increase is rising annually.

The increased number of licensees subject to the jurisdiction of the Licensing Board has added greatly to the work load of the Board. An example of this is manifested in the number of hearings the Board must conduct each year involving alleged violations of the licensing low. The number today for exceeds the number of hearings only a few years ago.

A disturbing number of the violations coming before the Board involve breach of the fiduciary relationship that exists between the broker and his salesman on the one hand and the client on the other hand. Too often, it is made to appear upon hearing that a breach of this trust relationship occurred primarily because the licensee had no real comprehension of the relationship that existed between him and his client. In many instances there is a total lack of understanding that a licensee cannot treat money received in a transaction as his own, regardless of good intentions to replace it at some later time.

The lack of appreciation of the importance of the trust relationship between the licensee and his client is of great concern to the Board. It suggests that those persons who are now licensed, as well as those who are contemplating applying for license, ought to give more time and thought to their responsibilities to the client and the others involved in a real estate transaction, particularly with respect to the handling and accounting for all moneys that pass in the transaction. Every licensee should be aware that once he converts escrow funds to his own use, a violation of the low occurs, a violation of such serious import that a revocation of the offender's license may result. No licensee should jeopardize his opportunity to earn a livelihood as a broker or salesman by the negligent or intentional failure to comprehend the nature of his role in a real estate transaction. He should always know and be aware of his responsibilities and obligations in each transaction.

The Licensing Board takes no pleasure in revoking or suspending licenses.

Best Wishes.