TO MODERNIZE THE NORTH CAROLINA REAL ESTATE LICENSE LAW.
Identical to H 386, filed 3/16/11.
Amends GS 93A-2 to clarify that the term broker-in-charge under the Real Estate License law means a real estate broker with responsibility for the supervision of brokers on provisional status (rather than real estate salespersons) engaged in real estate brokerage, as specified. Further clarifies that the provisions of the real estate license law do not apply to legal acts or services performed by an attorney who is a member of the NC State Bar, except when finding and introducing parties to a real estate transaction. In the trustee exemption from the real estate license provisions, also requires a written trust agreement, deed of trust, or will to specifically identify the trustee, beneficiary, corpus, and the trustee's authority. Exempts specified activities related to vacation rental transactions from the license requirement. Makes additional clarifying changes. Makes conforming changes to GS 93A-11(a).
Makes a clarifying change to GS 93A-3(e), which allows the NC Real Estate Commission (Commission) to receive assistance from the Attorney General.
Amends GS 93A-4(a1) to provide that a provisional broker's license will be placed on inactive status (rather than cancelled) if the broker fails to complete all required education in the time period allowed. Deletes provision for reinstatement and instead provides that the license will not be declared active until all Commission requirements are met. Includes additional details for reinstatement. Makes clarifying changes to GS 93A-4(b), concerning applicant's possession of good moral character and general fitness, and adds that specified reports on the applicant will not be public record. Makes other clarifying changes. Authorizes the Commission to adopt rules, as necessary.
Makes a clarifying change to GS 93A-4.1(c). Deletes the provisions of GS 93A-5(c) and instead directs the Commission to file reports annually as required under GS 93B-2. Makes a conforming change to the section heading.
Amends GS 93A-6(a) to allow the Commission to discipline a licensee if the person failed, at the time the sales transaction is consummated, to deliver to the broker's client a detailed and accurate closing statement showing the receipt and disbursement of all monies relating to the transaction about which the broker knows or reasonably should know. Allows a broker to rely on a closing statement prepared by an attorney or lawful settlement agent, after the broker reviews for accuracy. Makes other clarifying and conforming changes.
Amends GS 93A-6(b) to allow the Commission to discipline a licensee without a hearing for reasons listed in that subsection. Allows discipline if the licensee, who is also a member of another licensed profession or occupation, has been disciplined for committing fraud, theft, misrepresentation, breach of trust, or willful or negligent malpractice. Expands the list of applicable misdemeanors and felonies that would reasonably affect the licensee's performance in the real estate business. Enacts new GS 93A-6(g) to require a broker's trust or escrow account to be a demand deposit account in a federal insured depository institution; makes a conforming change to GS 93A-54(a)(9), effective when the act becomes law. Makes other clarifying and technical changes.
Amends GS 93A-6.1(b), directing the Commission to send a copy of any issued subpoena to the licensee's address of record by regular mail (deletes requirement for subpoena and notice provided by service of process or certified mail).
Deletes provisions of GS 93A-9(a) and instead authorizes the Commission to issue a broker license to an applicant licensed in a foreign jurisdiction who satisfies licensure requirements. Authorizes the Commission to adopt rules, as necessary.
Rewrites the title of Article 2 of GS Chapter 93A to read Real Estate Education and Recovery Fund, and makes a conforming change to the phrase throughout the Article. Authorizes the Commission to expend money from the fund to educate licensees and the public, provided such expenditures do not result in a fund balance below $200,000. Increases the monetary limitations placed on liability payments from the fund. Makes other conforming and clarifying changes.
Makes clarifying changes to GS 93A-35(b) and 93A-41(9). Amends GS 93A-42, adding that an instrument concerning a time share which burdens or pertains to no real property located in North Carolina will not be recorded in the register of deeds office. Makes conforming changes. Deletes provisions of GS 93A-53(c) and instead directs the Commission to include a copy of the roster of time share projects current on the preceding June 30 and a statement of the income received by the Commission for time share project registration during the fiscal year ending June 30 with the report required under GS 93B-2.
Effective January 1, 2012, unless otherwise indicated.