By Thomas R. Miller, Legal Counsel

In July, the North Carolina General Assembly passed House Bill 558 enabling the Real Estate Commission to adopt rules authorizing brokers to pay fees to travel agents who book short-term vacation rentals. Governor Easley signed the bill into law on July 21, 2001. Under the current Real Estate License Law, such payments have been forbidden as unlawful because travel agents are not themselves licensed as real estate brokers and salespersons. Request by Licensees

The Commission supported the new legislation in response to a request by licensees engaged in vacation rental management who were concerned that their inability to work with travel agents put North Carolina at a competitive disadvantage as a national vacation venue. The vacation rental managers impressed the Commission with how important it is for North Carolina tourism that the state's privately owned vacation rental properties have full access to both traditional and emerging travel markets.

Since the passage of the new law, the Commission has begun its consideration of new rules which, if adopted, will expressly permit brokers to pay fees to travel agents for vacation bookings. The new rules will also regulate the conduct and scope of those transactions to ensure that consumers who choose North Carolina as a vacation destination are properly protected.

Under the Commission's current schedule, the text for the new rules will be available in September. The Commission will hold a rule-making hearing on the rules in November, but will welcome comment from licensees and the public at any time prior to the hearing.