The Real Estate Commission, pursuant to authority vested in it by N.C. General Statutes, proposes to adopt, amend and repeal certain rules contained in Title 21, Chapter 58 of the N.C. Administrative Code, to:

1.     Require only real estate firms and brokers-in-charge to display their license certificates, but require all licensees to produce their license pocket cards upon request as proof of licensure.

2.     Clarify that licensees must report personal and business name changes to the Commission.

3.    Require that cash be deposited into trust accounts within three banking days following receipt.

4.    Clarify that brokers and salesmen must safeguard trust monies, and not convert or allow others to convert them to their personal use.

5.    Set forth a procedure for disposing of disputed and abandoned trust monies.

6.     Explain that real estate licensees may not compensate unlicensed persons or entities engaging in real estate brokerage activity in this state.

7.    Provide that, in addition to the salesman's broker-in-charge, the salesman is responsible for notifying the Commission when the broker-in-charge terminates his/her supervision of the salesman.

8.    Require licensees to respond in writing within fourteen days to written inquiries from the Commission.

9. Clarify that the broker-in-charge of the office where a transaction is conducted must retain all records of the transaction, including agency contracts, disclosure documents and records of incomplete transactions.

10. Eliminate the requirement that licensees furnish the Commission a copy of their assumed name registration certificate(s) when advertising a firm or assumed name that does not set forth the surname of the licensee.

11. Clarify that a broker can be broker-in-charge of more than one firm if the firms have the same physical location, and that an office can have only one broker-in-charge.

12. Eliminate the requirement that a "Verification of Salesman Experience" form be furnished to all salesmen when they terminate their association with their broker-in-charge, and instead require that the form be provided upon request from the salesman if the request is made within five years after termination.

Agency

13. Include a discussion of designated agency in the "Description of Agent Duties and Relationships" statement.

14. Clarify that real estate agents in timeshare transactions must disclose their agency relationships to the parties.

Property Disclosure Form

15. Adopt a "Residential Property Disclosure Statement" Form. (Effective October 1, 1998.)

16. Provide that reinstatement of a revoked license, a surrendered license or a license expired for more than one year will be treated as "initial licensure" for continuing education purposes.

17. Clarify the requirements for reinstatement of a license that has been suspended.

18. Clarify that if a licensed business entity is the principal broker of another licensed business entity, the individual principal broker of the "principal broker entity" will be responsible for assuring performance of the principal broker's duties with regard to both entities.

19. Eliminate the requirement that continuing education sponsors must submit a separate check for each separate class session when paying student fees to the Commission.

20. Set forth procedures for the summary suspension of real estate licenses.

21. Reinsert a provision requiring license applicants to submit within 60 days following request any information needed to make their applications current.

22. Eliminate an obsolete rule regarding the Appraisal Board.

Unless otherwise indicated, the rule changes would become effective August 1, 1998. Anyone interested in the Commission's proposals may present comments at a public rulemaking hearing to be held at 3:00 p.m., February 10, 1998, at the North Raleigh Hilton, 3415 Wake Forest Road, Raleigh, N.C. Written comments not presented at the hearing should be delivered by the hearing date to:

N.C. Real Estate Commission
P.O. Box 17100
Raleigh, NC 27619-7100