North Carolina Administrative Code

21 NCAC 57D .0403 CRIMINAL BACKGROUND CHECKS (a) A criminal background check for the purpose of this Rule shall meet the requirements of 21 NCAC 57A .0202(e). (b) If an appraisal management company requests a background check from an appraiser and that appraiser has had a crimina…

subchapter 58a – real estate brokers SECTION .0100 - GENERAL BROKERAGE 21 NCAC 58A .0101 PROOF OF LICENSURE (a) The pocket card issued by the Commission annually to each broker shall be retained by the broker as evidence of licensure. Each broker shall produce a legible form of t…

21 NCAC 58A .0102 BRANCH OFFICE History Note: Authority G.S. 93A-3(c); Eff. February 1, 1976; Readopted Eff. September 30, 1977; Amended Eff. September 1, 1983; Repealed Eff. May 1, 1984.

21 NCAC 58A .0103 broker NAME AND ADDRESS (a) Upon initial licensure, every broker shall notify the Commission of the broker's current personal name, firm name, trade name, residence address, firm address, telephone number, and email address. All addresses provided to the Commiss…

21 NCAC 58A .0104 AGENCY AGREEMENTS AND DISCLOSURE (a) Every agreement for brokerage services in a real estate transaction and every agreement for services connected with the management of a property owners association shall be in writing and signed by the parties thereto. Every …

21 NCAC 58A .0105 ADVERTISING (a) Authority to Advertise. (1) A broker shall not advertise any brokerage service or the sale, purchase, exchange, rent, or lease of real estate for another or others without the consent of his or her broker-in-charge and without including in the ad…

21 NCAC 58A .0106 DELIVERY OF INSTRUMENTS (a) Except as provided in Paragraph (b) of this Rule, every broker shall deliver a copy of any written agency agreement, contract, offer, lease, rental agreement, option, or other related transaction document to their customer or client w…

21 NCAC 58A .0107 HANDLING AND ACCOUNTING OF FUNDS History Note: Authority G.S. 93A-3(c); 93A-9; Eff. February 1, 1976; Readopted Eff. September 30, 1977; Amended Eff. January 1, 2012; April 1, 2006; July 1, 2005; July 1, 2004; July 1, 2003; September 1, 2002; August 1, 2000; Aug…

21 NCAC 58A .0108 RETENTION OF RECORDS (a) Brokers shall retain records of all sales, rental, and other transactions conducted in such capacity, whether the transaction is pending, completed, or terminated. The broker shall retain records for three years after all funds held by t…

21 NCAC 58A .0109 BROKERAGE FEES AND COMPENSATION (a) A licensee shall not receive, either directly or indirectly, any commission, rebate or other valuable consideration of more than nominal value from a vendor or a supplier of goods and services for an expenditure made on behalf…

21 NCAC 58A .0110 BROKER-IN-CHARGE (a) Every real estate firm shall designate one BIC for its principal office and one BIC for each of its branch offices. No office of a firm shall have more than one designated BIC. A BIC shall not serve as BIC for more than one office unless eac…

21 NCAC 58A .0111 DRAFTING LEGAL INSTRUMENTS (a) A broker acting as an agent in a real estate transaction shall not draft offers, sales contracts, options, leases, promissory notes, deeds, deeds of trust or other legal instruments by which the rights of others are secured; howeve…

21 NCAC 58A .0112 OFFERS AND SALES CONTRACTS (a) A broker acting as an agent in a real estate transaction shall not use a preprinted offer or sales contract form unless the form describes or specifically requires the entry of the following information: (1) the names of the buyer …

21 ncac 58a .0113 REPORTING CRIMINAL CONVICTIONS AND DISCIPLINARY ACTIONS (a) A broker shall file with the Commission a Criminal Conviction Disciplinary Action Reporting Form within 60 days of: (1) a final judgment, order, or disposition of any felony or misdemeanor conviction; (…

21 NCAC 58A .0114 RESIDENTIAL PROPERTY AND OWNERS' ASSOCIATION DISCLOSURE STATEMENT (a) Every owner of real property subject to a transfer of the type governed by Chapter 47E of the General Statutes shall complete a Residential Property and Owners' Association Disclosure Statemen…

21 NCAC 58A .0115 DISCLOSURE OF OFFERS PROHIBITED A broker shall not disclose the price or other material terms contained in a party's offer to purchase, sell, lease, rent, or to option real property to a competing party without the express authority of the offering party. Histor…

21 NCAC 58A .0116 HANDLING OF TRUST MONEY (a) Except as provided in Paragraph (b) of this Rule, all monies received by a broker acting in his or her fiduciary capacity (hereinafter "trust money") shall be deposited in a trust or escrow account as defined in Rule .0117(b) of this …

21 NCAC 58A .0117 ACCOUNTING FOR TRUST MONEY (a) A broker shall create, maintain and retain records sufficient to identify the ownership of all funds belonging to others. Such records shall be sufficient to show proper deposit and disbursement of such funds into and from a trust …

21 NCAC 58A .0118 TRUST MONEY BELONGING TO PROPERTY OWNERS' ASSOCIATIONS (a) The funds of a property owners' association, when collected, maintained, disbursed or otherwise controlled by a broker, are trust money and shall be treated as such in the manner required by Rules .0116 …

21 NCAC 58A .0119 MINERAL AND OIL AND GAS RIGHTS MANDATORY DISCLOSURE STATEMENT (a) Every owner of real property subject to a transfer of the type governed by G.S. 47E-1 and 47E-2(b) shall complete a disclosure statement form prescribed by the Commission and designated "Mineral a…

21 NCAC 58a .0120 prohibited acts (a) A broker shall not require or demand of any escrow agent or attorney that a broker's commission be split with or paid to another person or entity. (b) An affiliated broker shall not be paid a commission or referral fee directly by anyone othe…

section .0300 – application for license 21 NCAC 58A .0301 license application (a) An individual seeking licensure as a real estate broker shall submit a license application that is available on the Commission's website and shall include the applicant's: (1) legal name; (2) mailin…

21 NCAC 58A .0302 license application and fee (a) The fee for an original application of a broker or firm license shall be one hundred five dollars ($105.00). (b) An applicant shall update information provided in connection with a license application in writing to the Commission …

21 NCAC 58A .0303 PAYMENT OF APPLICATION FEES History Note: Authority G.S. 93A-3(c); 93A-4(a),(d); Eff. February 1, 1976; Readopted Eff. September 30, 1977; Amended Eff. April 1, 2004; July 1, 2000; December 1, 1985; Expired Eff. June 1, 2018 pursuant to G.S. 150B-21.3A.

21 NCAC 58A .0304 WAIVER OF 75-HOUR PRELICENSING EDUCATION REQUIREMENT The Commission shall grant a waiver of the 75-hour education program pursuant to G.S. 93A-4(a) if an applicant submits: (1) an application pursuant to Rule .0301 of this Section; (2) a written request for a wa…

21 NCAC 58A .0305 PETITION FOR PREDETERMINATION (a) An individual who wishes to file a petition for a predetermination of whether the individual's criminal history will likely disqualify the individual from obtaining a real estate license shall submit a petition on the Commission…

section .0400 - EXAMINATIONS 21 NCAC 58A .0401 SCHEDULING EXAMINATIONS (a) An applicant who is required and qualified to take the licensing examination shall be provided a notice of examination eligibility that shall be valid for a period of 180 days and for a single administrati…

21 NCAC 58A .0402 Examination SUBJECT MATTER, format, AND PASSING SCORES (a) The real estate licensing examination shall test applicants on the following general subject areas: (1) real estate law; (2) real estate brokerage law and practices; (3) the Real Estate License Law, rule…

21 NCAC 58A .0403 RE-APPLYING FOR EXAMINATION (a) An individual whose license application has been canceled pursuant to Rule .0302(c) of this Subchapter and whose 180 day examination eligibility period has expired who wishes to be rescheduled for the real estate license examinati…

21 NCAC 58A .0404 EXAMINATION RELATED CONDUCT (a) When taking a license examination, an applicant shall not: (1) cheat or attempt to cheat on the examination by any means, including giving or receiving assistance or using notes of any type; (2) communicate with any person other t…

21 NCAC 58A .0405 Confidentiality of Examinations Licensing examinations are confidential. No applicant or licensee shall obtain, attempt to obtain, receive, or communicate to other persons examination questions or answers. Violation of this Rule is grounds for denial of a real e…

21 NCAC 58A .0406 EXAMINATION REVIEW History Note: Authority G.S. 93A-4(d); Eff. December 1, 1985; Amended Eff. April 1, 2006; October 1, 2000; July 1, 1989; February 1, 1989; Repealed Eff. January 1, 2012.

SECTION .0500 - LICENSING 21 ncac 58a .0501 CHARACTER History Note: Authority G.S. 93A-4(b),(d); Eff. February 1, 1976; Readopted Eff. September 30, 1977; Amended Eff. October 1, 2000; July 1, 1989; February 1, 1989; May 1, 1984; September 1, 1979; Repealed Eff. July 1, 2003.

21 NCAC 58A .0502 firm licensing (a) Every business entity other than a sole proprietorship shall apply for and obtain from the Commission a firm license prior to engaging in business as a real estate broker. A business entity shall not be permitted to apply for or obtain a firm …

21 NCAC 58A .0503 LICENSE renewal (a) All real estate licenses issued by the Commission under G.S. 93A, Article 1 shall expire on June 30 following issuance. Any broker desiring renewal of his or her license shall renew on the Commission's website within 45 days prior to license …

21 NCAC 58A .0504 ACTIVE AND INACTIVE LICENSE STATUS (a) Except for licenses that have expired or that have been revoked, suspended or surrendered, all licenses issued by the Commission shall be designated as being either on active status or inactive status. Subject to compliance…

21 NCAC 58A .0505 REINSTATEMENT OF a LICENSE (a) The fee for reinstatement of a license that has been expired, revoked, or surrendered for less than two years shall be an amount equal to two times the current renewal license fee pursuant to Rule .0503 of this Section. (b) The rei…

21 NCAC 58A .0506 PROVISIONAL BROKER TO BE SUPERVISED BY BROKER-IN-CHARGE (a) A provisional broker may engage in or hold himself or herself out as engaging in activities requiring a real estate license only while his or her license is on active status pursuant to Rule .0504 of th…

21 NCAC 58A .0507 PAYMENT OF FEES Checks, credit cards, and other forms of payment given the Commission for fees due which are returned unpaid shall be considered cause for license denial, suspension, or revocation. History Note: Authority G.S. 93A-3(c); 93A-4(c),(d); 150A-11; Ef…

21 NCAC 58A .0508 DUPLICATE LICENSE FEE History Note: Authority G.S. 93A-3(c); 93A-4(c),(d); 150A-11; Eff. February 1, 1976; Readopted Eff. September 30, 1977; Repealed Eff. May 1, 1984.

21 NCAC 58A .0509 DUPLICATE LICENSE FEE History Note: Authority G.S. 93A-4(c),(d); Eff. December 1, 1985; Amended Eff. February 1, 1989; Repealed Eff. July 1, 2017.

21 NCAC 58A .0510 CANCELLATION OF SALESPERSON LICENSE UPON BROKER LICENSURE History Note: Authority G.S. 93A-3(c); 93A-4(d); Eff. July 1, 1996; Amended Eff, October 1, 2000; Repealed Eff. April 1, 2006.

21 NCAC 58A .0511 LICENSING OF PERSONS LICENSED IN ANOTHER JURISDICTION (a) For purposes of this Rule, "Jurisdiction" shall mean a state, territory, or possession of the United States or Canada. (b) An individual seeking a real estate license who, at the time of application, hold…

21 NCAC 58A .0512 DEATH OR INCAPACITY OF SOLE PROPRIETOR (a) If a licensed real estate broker engaged in business as a sole proprietor pursuant to G.S. 93A-2(a) dies or becomes incapacitated, the Commission shall issue a temporary license to the executor or administrator of the e…

21 NCAC 58A .0513 LICENSE CANCELLATION (a) A broker seeking to voluntarily cancel their real estate license shall file a license cancellation notice by logging into the broker's online portal located on the Commission's website. (b) The license cancellation shall be granted if th…

section .0600 – real estate commission hearings 21 NCAC 58A .0601 COMPLAINTS/INQUIRIES/MOTIONS/OTHER PLEADINGS (a) Any individual may file a complaint against a broker at any time. A complaint shall: (1) be in writing; (2) identify the respondent broker or firm; and (3) apprise t…

21 NCAC 58A .0602 PRIMA FACIE CASE History Note: Authority G.S. 93A-3(c); 93A-6(a); 150A-11; Eff. February 1, 1976; Readopted Eff. September 30, 1977; Amended Eff. April 22, 1980; Repealed Eff. September 1, 1983.

21 NCAC 58A .0607 PETITION TO REOPEN PROCEEDING (a) After a final decision has been reached by the Commission in a contested case, a party may petition the Commission to reconsider a case. Petitions will not be granted except when the petitioner can show that the reasons for reco…

21 NCAC 58A .0608 ANSWER History Note: Authority G.S. 93A-3(c); 150A-11; 150A-25(b); Eff. February 1, 1976; Repealed Eff. May 1, 1984.

21 NCAC 58A .0609 INTERVENTION History Note: Authority G.S. 93A-3(c); 150A-11; 150A-23(d); Eff. February 1, 1976; Readopted Eff. September 30, 1977; Amended Eff. May 1, 1984; Repealed Eff. February 1, 1989.