By Patricia Moylan Sullivan, Legal Education Officer
The Real Estate Commission recently adopted a rule requiring brokers-in-charge to complete a 4½-hour course of instruction prescribed by the Commission. After noting over the years that brokers-in-charge frequently do not understand their responsibilities, the Commission determined that every broker-in-charge should be required to complete a Broker-in-Charge Course that addresses the duties of a broker-in-charge and how to effectively perform those duties.
Brokers designated as brokers-in-charge on or after October 1, 2000 must complete the course within 90 days after designation and at least once every five years thereafter as long as they remain brokers-in-charge. All newly designated brokers-in-charge are sent a notice advising them of this requirement when the expiration date of the 90-day period expires, and how to register for the course.
Brokers who were designated broker-in-charge of their current real estate offices prior to October 1, 2000 have five (5) years (i.e., until September 30, 2005) to complete the Broker-in-Charge Course. Thereafter, they must take the course every five years if they continue to serve as a broker-in-charge. Note, however, that if a broker's status as broker-in-charge of a particular office is terminated for any reason (e.g., leaving a firm, allowing the broker license to expire or become inactive, changing offices, etc.), and the broker is subsequently redesignated broker-in-charge of the same office or a different office, the broker will be considered to be a newly designated broker-in-charge who must complete the course within 90 days of designation (unless the broker already has taken the course within the previous five years).
When a broker-in-charge fails to complete the course within the prescribed time period, the Commission will terminate the broker's status as broker-in-charge. The licenses of any salespersons under the broker's supervision will be placed on "inactive status" and the addresses of record of all brokers associated with the office will be changed to their residence addresses.
The 4½-hour Broker-in-Charge Course is intended to acquaint brokers-in-charge with their general administrative and supervisory duties, including their responsibilities for trust account oversight. As such, it is intended primarily for newly designated brokers-in-charge and current brokers-in-charge who need to have a better understanding of their duties; however, other licensees who anticipate becoming a broker-in-charge may also attend the course on a space-available basis.
The 4½-hour Broker-in-Charge Course is offered by the Commission several times monthly at various locations around the state. Tuition is $35. Brokers-in-charge who receive the 90-day notice are strongly urged to register promptly for the course because course sessions are filling up 5 - 6 weeks in advance!
You may register for the course on-line at www.ncrec.state.nc.us by using your credit card. The registration form is also available from the Commission's "Fax on Demand" system at 919/850-2757; request document #370. [Note: When using "Fax on Demand," use your touchtone phone to key-in only your area code and the fax number to which you want the form sent. Do not key-in the number "1" as a prefix to your area code.] If you mail in a registration form and check, please indicate a first, second and third choice of course dates/locations.
Brokers-in-charge will receive 4 hours of continuing education elective credit for completing the course. Licensees who have already met their elective requirement for the current license year (or new licensees who are exempt from the continuing education requirement for their first year of licensure) can "carry over" elective credit for the following license year (if they do not already have such credit).
The Commission is pleased at the favorable response from licensees who have completed the Broker-in-Charge Course. Designed, written and taught by Commission staff, the course will be updated periodically to ensure that brokers-in-charge are well-instructed in fulfilling the duties that come with the broker-in-charge designation.
Under Commission rules, every firm engaged in real estate brokerage in North Carolina must designate a broker-in-charge for each office, and a broker practicing alone must also designate himself or herself as broker-in-charge if he or she wants to maintain his or her license on active status. Please note, however, that there is one exception to the broker-in-charge designation requirement that may affect some brokers who are currently designated as broker-in-charge. A real estate firm (e.g., a "Subchapter S" corporation) with only a principal broker and no other person affiliated with it does not have to designate a broker-in-charge if the firm can demonstrate to the Commission that its sole purpose for licensure as a firm is to receive compensation earned by its principal broker through another real estate firm.
If you have a "Subchapter S" corporation or other firm which qualifies for exemption from the broker-in-charge designation re-quirement, and you are presently designated as broker-in-charge of that firm, you may notify the Commission of your firm's limited purpose and request to be removed as broker-in-charge by completing the following form and returning it to the Commission.