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Regulated Real Estate Practices in North Carolina

Instructor: Kyle Aken

Kyle is a journalist and marketer that has taught writing to a number of different children and adults after graduating from college with a degree in Journalism. He has a passion for not just the written word, but for finding the universal truths of the world.

This lesson will cover some of the real estate practices that are regulated by the North Carolina real estate law and the real estate commission rules. Specifically, it will look at everything from regulations on advertising to the delivery of instruments, even matters regarding compensation of unlicensed persons for brokerage activities.

NC Regulated Practices

The real estate industry uses occupational licensing to protect consumers from dishonest business practices. Even though the real estate industry is heavily regulated by the Real Estate Commission and License Laws, there are still opportunities for abuse. That is why it is important for those looking to purchase, sell, or lease real property to know what real estate practices are regulated in the state of North Carolina.

Disciplinary Action By Commission

According to North Carolina Real Estate Law 93A-6(a), the Commission has the power to take disciplinary action. If the Commission finds any licensee guilty of violating any of the Commission's rules it can hold a hearing on the allegations of misconduct. In fact, the Commission reserves the power to suspend a license at any time. The Commission may also discipline the licensee for misconduct if, through trial, the Commission finds a licensee guilty of:

  • Failing to account for or remit monies that don't belong to them
  • Paying a commission to anyone for a service that violates the rules
  • Undertaking or performing any legal service or practice of law
  • Taking money or other property from the principal without maintaining a deposit in a trust or escrow account in a bank
  • Failing to deliver a completed copy of any purchase agreement or offer to a buyer and seller
  • Failing to deliver an accurate closing statement when a sales transaction is consummated

Rules for Maintaining Records

Section 93A-6(d) states that all brokers will keep complete records showing deposit, maintenance, and withdrawal of any money or other property owned by principals that is held in trust or escrow. In fact, the Commission will periodically inspect the records, without giving prior notice. Furthermore, an inspection will take place whenever a complaint is issued against a licensee.

Real Estate Brokers Rules

The North Carolina Real Estate Commission rules regarding real estate brokers includes many subsections, like:

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