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General FAQs |
Question |
Answer |
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1 |
Where do I find email and phone information for the Commission’s divisions? | You can contact us via a form on the Commission's website , or by calling us at 919-875-3700. |
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2 |
What is the difference between the North Carolina Real Estate Commission (NCREC) and the North Carolina Association of Realtors (NCR)? |
The NC Real Estate Commission is a state government agency located in Raleigh. It issues broker licenses to qualified individuals who
complete prelicensing education, pass the licensing exam, and meet the Commission’s other licensing requirements. Once licensed, all
brokers are governed by the Commission and must comply with the License Law and Commission rules. Real estate licensees must also renew
their license with the Commission and complete continuing education in order to practice brokerage. The Commission’s mission focuses
on consumer protection, specifically, protecting the public interest in real estate brokerage transactions.
NC REALTORS® is a non-profit trade association headquartered in Greensboro, and includes local associations statewide. Membership is voluntary. NC REALTORS® provides member services including legislative, political and regulatory advocacy, standardized agency forms and transaction documents, ethical guidance, education, and other products and services. |
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General FAQs |
Question |
Answer |
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1 |
Can the Commission settle compensation-related disputes between real estate brokers? | No. Brokers should consult their local Boards of REALTORS® (if the brokers are members) or their private attorneys. |
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2 |
I am a licensed real estate broker and recently represented a Buyer in a transaction. Though the listing indicated that the listing firm would pay a cooperating firm a percentage of the sales price, the firm refused to pay me (my firm) at closing. Can I file a complaint about this with the Real Estate Commission? | No. Brokers should consult their local Boards of REALTORS® (if the brokers are members) or an attorney regarding broker compensation disputes. |
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General FAQs |
Question |
Answer |
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1 |
How do I file a complaint against a real estate broker? | (1) Persons who wish to file complaints against real estate brokers (including those associated with time share projects) should file a "Complaint Form" online. The Commission has the authority to discipline licensed brokers for violation of the Real Estate License Law and Commission rules. The Commission does not have the authority to award monetary compensation (see, "Complaints: Legal Advice" below.) |
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2 |
What happens when a complaint is filed with the Real Estate Commission? |
(1) Complaints are reviewed by the Commission’s Regulatory Affairs staff and, if appropriate, an investigation or other inquiry is conducted.
(2) If, following an investigation or other inquiry, it is determined that there appears to be sufficient proof ("probable cause") that the broker has violated the Real Estate License Law or Commission’s rules, a hearing is ordered. [Note: The Commission’s hearings are conducted in accordance with the Administrative Procedures Act, NCGS Chapter 150B.] During the hearing, the Commission receives the sworn testimony of witnesses and gives the broker the opportunity to answer the charges and present evidence in their defense. The broker may be represented by an attorney. (3) If, based upon the evidence, the Commission finds that the broker has violated the Real Estate License Law or Commission rules, it can either (a) reprimand the broker; (b) suspend the broker’s real estate license for a definite period of time; (c) revoke the broker’s license; or (d) in the case of time share transactions, fine the time share project’s developer. [Note: Decisions of the Commission may be appealed by brokers through the court system.] |
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3 |
Who does the Commission represent when a complaint is filed? | The Commission does not represent any party to the complaint. Brokers who have a complaint filed against them are encouraged to retain their own attorneys should they so desire. The Commission’s attorneys represent the Commission in the cases where the Commission orders a hearing. A complaining witness is not a party to the complaint but is encouraged to retain their own attorneys if they wish to pursue monetary compensation from a broker through the civil court. |
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4 |
How long will an investigation into my complaint take? | It depends on the complaint and the type of investigation required. An investigation can take just a few weeks up to several months to complete. For cases that go to a hearing, the average total time from opening to hearing is approximately 12-15 months. Again, these times may vary depending on the case specifics and the type of investigation required. |
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5 |
Will my complaint and the documentation provided remain confidential? | Most of the Commission’s investigative records are available for public inspection, subject to certain limitations. You should assume that all documents and information included with your complaint are subject to public inspection and inspection by the broker against whom the complaint is filed. |
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6 |
What types of consumer complaints should be reported to the Commission? | Buyers, sellers, landlords, tenants, and other persons involved in real estate transactions who believe that they have been defrauded or victimized by the improper or incompetent acts of a real estate broker should report their complaints to the Real Estate Commission. |
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General FAQs |
Question |
Answer |
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1 |
Can the Commission assist consumers with questions or issues involving attorneys, real estate appraisers, home inspectors, mortgage companies or other service providers? | No. Consumers should contact the North Carolina State Bar (for attorneys), the North Carolina Appraisal Board (for real estate appraisers), the North Carolina Home Inspector Licensure Board (for home inspectors), the North Carolina Office of Commissioner of Banks (for banks, mortgage companies or mortgage brokers), or other appropriate agencies. |
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General FAQs |
Question |
Answer |
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1 |
Can the Commission assist tenants regarding disputes with landlords who are managing their own properties? | Not unless the landlord is licensed as a real estate broker. A tenant who is renting a residential property directly from an unlicensed landlord (rather than from a real estate broker) may contact the Consumer Protection Section of the North Carolina Department of Justice . Click the following links for detailed information about Renting Residential Real Estate, Tenant Security Deposits, and NC Military Personnel Residential Lease Termination. |
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General FAQs |
Question |
Answer |
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1 |
Can the Real Estate Commission give consumers legal advice or help them settle disputes with real estate agents? | No. The Commission cannot enforce contracts or require real estate brokers to fulfill promises, reimburse money, or perform other acts. Persons who feel that money is owed to them in a real estate transaction or that a sales contract, lease, etc. has been breached should consult their private attorney for advice and assistance. |
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General FAQs |
Question |
Answer |
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1 |
What is the difference between earnest money and a due diligence fee? | Earnest money is given by the buyer to the seller to demonstrate the buyer’s good faith when making an offer to purchase the seller’s property. Read the Commission’s, Questions and Answers on: Earnest Money Deposits for more detailed information. A due diligence fee is a separate negotiated amount of money paid by the buyer to the seller in exchange for the buyer’s right to terminate the contract for any reason (or no reason) during the "due diligence period", as agreed between the buyer and seller in the purchase contract. Read the Commission’s, Questions and Answers on: Due Diligence for Residential Buyers for more detailed information on the due diligence process. |
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2 |
When a broker receives money on my behalf, where does it go? | When a broker has been entrusted to hold the funds of others as part of a real estate sales or rental transaction, the broker must deposit the money in a trust or escrow account in a federally insured depository institution. Some funds, like due diligence fees in residential sales transactions, are typically delivered to the seller immediately, in accordance with the terms of the contract, and are not held in a trust or escrow account. |
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3 |
Can earnest money deposits, rents, and security deposits all be in one trust account? | The funds of others can all be in one account as long as the account is designated trust or escrow. Because tenant security deposits must be held in trust until the end of the tenancy, most property managers find it easier and safer to keep tenant security deposits in a separate trust account so they are not accidentally spent on repairs or other items. |
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4 |
How does a broker account for the handling of real estate trust money such as rents, security deposits or earnest money deposits? | The broker must create and maintain trust account records including a Trust Account Journal, Sales Transaction Ledger, Rental Property Ledger and Trial Balance as required by the Commission’s Rules . A broker-in-charge is required to take the Commission’s Basic Trust Account Procedures course within 120 days of assuming responsibility for a new or existing trust account. This course is an online self-paced four hour course. |
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General FAQs |
Question |
Answer |
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1 |
Why won’t my Broker answer my questions about neighborhoods? | Fair Housing laws prohibit Brokers from answering certain neighborhood characteristic questions. See Questions & Answers on Fair Housing. |
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2 |
What is the Working with Real Estate Agents Disclosure? |
The disclosure explains the various types of working relationships that real estate brokers may have with clients and customers in real estate
transactions in NC. The Disclosure is published by the NC Real Estate Commission; North Carolina brokers are required by law to review it with
prospective clients and customers at "first substantial contact".
Click here to view the Disclosure. For more detailed information about the various types of working relationships that may be available to you when working with a broker, Click here to view Questions and Answers on: Working with Real Estate Agents. This brochure may help you decide the legal relationship you want to have with a real estate broker. It will also give you useful information about the various services real estate brokers can provide buyers and sellers, and it will help explain how they are paid. Click here to read Commission Rule 58A.0104-Agency Agreements and Disclosure . |
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3 |
I do not have a real estate license. I own a home that I use as a rental property. If I rent the property myself (without the help of a real estate agent), can I deposit the tenant’s security deposit in my checking or savings account? | No. The Tenant Security Deposit Act, GS 42-50, which is a state law, requires the landlord or property manager to keep the money in a "trust account". The Act applies to "all persons and firms which rent residential properties (except single rooms) on a weekly, monthly, or annual basis". Read more in Questions & Answers on Tenant Security Deposits. |
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4 |
I do not have a real estate license. A family member wants to sell her house, and I am good friends with a Broker in town. Can I refer my family member to the Broker and be paid a referral fee? | No. Per GS 93A-1, no one may accept compensation for brokerage activities in North Carolina without a North Carolina real estate license on Active status. |
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General FAQs |
Question |
Answer |
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1 |
I am a broker and my real estate license is on Inactive status. A friend needs a recommendation for a Broker. Can I refer my friend to a Broker and be paid a referral fee? | No. Per Rule 58A.0504 , a North Carolina broker’s license must be "Active" to receive compensation for brokerage. "Compensation" including referral fees. |
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2 |
I am a Broker named Jane Smith. I want my commission checks to be paid directly to my LLC, which is named Smith Properties LLC. Is that okay? | To legally receive compensation for brokerage activities, Smith Properties LLC must obtain a firm license. See GS 93A-1. |
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General FAQs |
Question |
Answer |
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1 |
Who is required to have a real estate license in NC? | Any person or business entity who engages in brokerage must have a real estate license. See GS 93A-1 and GS 93A-2 for rules and exceptions. |
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2 |
Are real estate/real property attorneys required to have a real estate license to engage in real estate brokerage in NC? | Yes, per GS 93A-1 , no one may accept compensation for brokerage activities in North Carolina without a North Carolina real estate license on Active status. |
3 |
Does NC have a salesperson license? | No. North Carolina is a "Broker-only" state. North Carolina’s Provisional Broker category is the entry-level license status. See Rules 58A.0506 and 58A.1902. |
4 |
What is a "Provisional Broker" (PB)? | Provisional Broker (PB) is the entry-level license status. PBs must be supervised by a Broker-in-Charge (BIC) and complete Postlicensing education to maintain Active licenses. See Rules 58A.0506 and 58A.1902 |
5 |
What are the types of broker licenses in NC? | Broker, Firm, and Limited Nonresident Commercial. Definitions are provided in the Commission publication, Real Estate Licensing in North Carolina (RELINC). |
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General FAQs |
Question |
Answer |
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1 |
How do I obtain publications from the Commission? | Most of the Commission’s publications are available for free download on the Commission’s website on the "Publications" tab. Just click on the PDF links provided. Publications can also be purchased via the Publications Page of the Commission’s Website, using the online order form. |
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2 |
How often is the North Carolina Real Estate Manual updated? | The text is updated periodically. The current edition of the NC Real Estate Manual was published in January 2021. |
3 |
How often is the Real Estate e-Bulletin for licensees published? | The e-Bulletin is emailed to licensees monthly and can be accessed from the Commission’s website at https://bulletins.ncrec.gov/. |
4 |
How do I get lists of licensees or examination candidates? | Rosters/Lists of Examination Candidates, (All) Licensees, New Licensees, and Licensees still needing CE (CE Deficiency) may be purchased on the Commission’s website. To order these rosters/lists, go to the Forms page of the Commission’s website and select the Rosters/Lists Order Form subsection. |
5 |
Where can I get more information about my real estate transaction? | The Commission publishes a wide variety of Question and Answer brochures on issues that arise in real estate sales and rentals. Access all the Commission publications https://www.ncrec.gov/Publications/Pubs. Most are available for download as a free PDF. |
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General FAQs |
Question |
Answer |
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1 |
Can the Real Estate Commission assist persons whose funds have been fraudulently taken by a real estate agent? |
Persons who give down payments, earnest money deposits and other trust monies to licensed real estate brokers to be held pending the
completion of real estate transactions, and whose funds are converted or embezzled by the broker, may, under certain specific conditions,
receive compensation from a Real Estate Recovery Fund which is maintained by the Commission. (For information concerning the procedures
and requirements for receiving payment from the Recovery Fund, interested persons should contact the Real Estate Commission’s Regulatory
Affairs Division.)
Recovery Fund Application Form |