This article was written for our sponsor, North State Law Firm

Real estate is a lucrative and highly sought-after profession in North Carolina. To be part of the market, agents must obtain and maintain a valid professional license. For which, agents must complete over 70 hours of coursework, pass an exam, submit an application and criminal background check, pay a fee, obtain insurance, and be sponsored by a licensed broker.

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Matt Kerekes is a real estate broker at Bliss Real Estate Group and adds that training doesn't stop when you receive your license. "Every year by June 10, each broker needs to complete eight hours of continuing education, four hours of an elective course and four hours of the mandatory update course the commission [creates]," he said.

After that extensive work, it's imperative agents have the information they need to avoid losing their license. Nick Dowgul founded North State Law Firm with the focus of helping North Carolina professionals, from many professional fields, defend their licenses and certifications. Here, he highlights some important information Realtors need to know to avoid complications.

1. Know the rules

The first and best way real estate agents can protect their license is to ensure they know and understand all the rules set forth by the North Carolina Real Estate Commission (NCREC).

These rules are designed to ensure Realtors conduct themselves ethically as well as to protect the consumers. Dowgul said, "There is a great guide for Realtors the NCREC sells on their website. But also, don't be afraid to ask questions of your broker-in-charge or directly to the NC REC."

2. Know the threats

North State Law Firm provides informative content and videos on their website and YouTube channel to help ensure professionals can maintain their necessary licensing, including videos on ways agents could lose their license. These dangers include:

  • Failure to disclose interest with a third party
    • Failure to disclose personal interest
      • Failure to put property on MLS in a timely manner
        • Accepting client money without having a broker-in-charge license
          • Not properly reconciling a trust account
            • Diverting clients' funds for one's own use.

              In short, the most significant dangers arise when Realtors do not put the client first. Any personal gain a realtor may glean from a transaction should be scrutinized closely to ensure they do not deviate from the aforementioned rules. Dowgul expands on some of these dangers in this video which can be found on northstatelawfirm.com.

              3. Understand how the state of the market may up the stakes

              There is no doubt North Carolina is a hot market right now. Homes are sold within hours of being placed on the market. These volatile times can lead to several issues of which Realtors should be aware.

              First, any 'client-facing' profession is in greater danger of licensing complaints. Dowgul noted the professionals he most often assists are those who have direct contact with clients. In the real estate market, the stakes are incredibly high. Not only is there a great amount of money involved, but also there can be emotional strains as people strive to purchase their 'dream home' or try to get the greatest price out of their life's biggest investment.

              "I would add that the real estate market is very competitive. Not only for those trying to purchase a property but also competition between agents. Sometimes there can be bad blood between competing agents or bad blood between [BICs]," said Dowgul.

              Kerekes added, "Decisions are made on a shorter and faster time frame and it is extremely important that brokers have a system in place to explain the real estate process and real estate translation step by step. On the flip side, it is important the agent has trusted partners who they can turn to for advice and knowledge such as legal advice. Real estate brokers are assisting consumers with their most expensive purchase and it is crucial that the agent does not commit a violation or find themselves breaking the code of ethics."

              "When there is a need to work quickly, that's when mistakes can happen the most. That's when it also may be very attractive to take shortcuts or do something unethical to get a 'leg up' on another agent," said Dowgul.

              4. Recognize temptations and pitfalls

              When it comes to taking shortcuts, or doing something unethical, most people put themselves firmly in the category of, "I would never do that!" However, as pressure rises, it is increasingly enticing to find loopholes. Understanding some of the temptations Realtors face can help agents take a breath before making a choice they will regret. Some of the most complaints made against agents include:

              • Failing to provide thorough, accurate information to your client. (Another offer was made which wasn't disclosed, newer comparable sales prices came in, etc.)
                • Misrepresenting the condition of a property and failing to disclose known defects.
                  • Taking commission or appropriating funds without completing the transaction.

                    In addition to these common real estate-related transgressions, it's important to remember that bad actions in all parts of life can affect licensing. Agents convicted of a felony lose their license immediately and several other offenses may disqualify you from maintaining licensure.

                    5. Know your rights

                    "The NCREC takes each complaint seriously and they have investigators who will open a file and investigate the complaint by interviewing all parties involved," said Kerekes.

                    If a real estate agent, or Broker-in-Charge, receives a letter of inquiry from the real estate commission, they must respond within 14 days of when the letter was received. Dowgul explained, "If they request certain documentation, you have to provide it to them. If they request other specific information, you also have to provide that to them as well."

                    However, he added, "You have the right to an attorney the minute they contact you."

                    In fact, Dowgul advised if a Realtor suspects an issue may arise, the time to get counsel is, "immediately."

                    If the NCREC finds an agent has violated the rules or if an agent does not cooperate with an inquiry or investigation, the governing body can impose fines, a suspension, or revocation of a license.

                    Getting counsel who understands the fullness of the law can help to keep that from happening. In addition to the advice offered on the North State Law Firm page and the free library of videos on their YouTube page, North State Law Firm offers a free 15-minute phone call to any realtor with professional licensing questions.

                    Kerekes said, "If you are a broker who finds yourself in front of the NCREC or the complaint board, it is highly recommended that you have someone in your corner defending you. As brokers, we advocate that consumers should have a professional in their corner when it comes to buying and selling real estate. [Likewise], when you find yourself in front of the NCREC, you definitely want someone in your corner."

                    This article was written for our sponsor, North State Law Firm