49 topics · Updated 2026-09-17
Any exchange company offering an exchange program to a purchaser is deemed to have made an irrevocable appointment of the Commission to receive service of lawful process in any proceeding arising under this Article.
Whether a fact is 'material' depends on facts/circumstances and statutory/case law. Material facts include: facts about the property itself (structural/mechanical defects), facts relating directly to the property (pending zoning, highway construction), facts affecting the principal's ability to complete (pending foreclosure), and facts of special importance to a party. These must be disclosed to both the principal and third parties.
Under G.S. 39-50 and 42-14.2, the fact that a property was occupied by someone who died or had a serious illness is NOT a material fact. The presence of a registered sex offender occupying/residing near a property is NOT a material fact. Agents need not volunteer these facts but may not make false statements. Questions about AIDS are prohibited from being answered under fair housing law.
Occurs when a licensee with actual knowledge of a material fact deliberately misinforms a buyer, seller, tenant, or landlord. Applies regardless of the licensee's agency status or role. Example: knowing of a water intrusion problem but telling a buyer there is no drainage problem.
Occurs when a licensee unintentionally misinforms a party about a material fact due to lack of knowledge, incorrect info, or mistake, when a reasonably prudent licensee should have known the truth. Occurs even in good faith. Listing agents are held to a higher standard than seller's subagents; buyer's agents may be held to higher standard too.
Occurs when a licensee has actual knowledge of a material fact and a duty to disclose, but deliberately fails to disclose. A selling agent (seller's subagent) who learns a buyer will pay more must disclose to the seller; a buyer's agent must not disclose that confidential buyer info to the seller.
G.S. 93A-6(a)(4) prohibits acting for more than one party without the knowledge of all parties. Rule A.0104 requires express written authority to represent a second party. Self-dealing (secret profits) is prohibited. G.S. 93A-6(a)(6) prohibits representing another broker without the employing broker's consent.
Any conduct violating the State Fair Housing Act is improper conduct and a License Law violation. Licensees may not conduct brokerage or promote their status in any manner that discriminates based on race, color, religion, national origin, sex, familial status, or disability.
Occurs when a licensee does not have actual knowledge but a reasonably prudent licensee should have known of the material fact and fails to disclose it, even in good faith. Creates a 'duty to discover and disclose.' Listing agents held to higher standard; buyer's agents may be too if aware of special buyer needs.
A broker may not pay a commission for acts performed in violation of the License Law and may not pay unlicensed persons for acts requiring a license. Provisional brokers may only accept compensation from their employing broker; brokers must pay other firms' provisional brokers through their employing broker.
G.S. 93A-6(a)(8) allows discipline for conduct showing unworthiness/incompetence (e.g., failing to properly complete contracts, failing to diligently perform services). G.S. 93A-6(a)(10) prohibits any improper, fraudulent, or dishonest dealing, including breaches of the duty of skill/care/diligence and Fair Housing Act violations. Dual contracting ('contract kiting') is prohibited.
Licensees may not perform legal services. They may fill in preprinted contract forms drafted by an attorney but may NEVER complete deeds or deeds of trust. They may not abstract title, render title opinions, or give legal advice. Explaining contract provisions is acceptable and recommended.
Brokers are prohibited from making false promises of a character likely to influence, persuade, or induce. Example: promising to repaint an apartment or steam-clean carpets and then failing to do so after the contract is signed.
Grounds for discipline include obtaining a license by fraud, conviction/plea to certain crimes or offenses involving moral turpitude, acts by exempt unlicensed property-management employees that would violate 93A-6(a), and discipline of the licensee's other professional license for fraud/theft/misrepresentation. Licensees may be disciplined for 93A-6(a) violations when dealing in their own property.
Whether a fact is material depends on the transaction. The Commission interprets material facts to include facts about the property itself, facts relating directly to the property, facts relating to the principal's ability to complete the transaction, and facts of special importance to a party. Material facts must be disclosed to both principals and third parties.
Under G.S. 39-50 and 42-14.2, the fact a property was occupied by someone who died or had a serious illness is NOT a material fact, nor is the fact a registered sex offender occupies or resides near the property. Agents need not volunteer this. An agent may decline to answer or answer truthfully. Fair housing law prohibits answering an inquiry about whether an occupant had AIDS.
Willful misrepresentation occurs when a licensee with actual knowledge deliberately misinforms a party of a material fact. Negligent misrepresentation occurs when a licensee unintentionally misinforms a party where a reasonably prudent licensee should have known the truth. Listing agents are held to a higher standard than seller's subagents; buyer's agents may be held to higher standards under agency law.
Willful omission occurs when a licensee with actual knowledge and a duty to disclose deliberately fails to disclose a material fact. Negligent omission occurs when a licensee lacks actual knowledge but a reasonably prudent licensee should have known, creating a 'duty to discover and disclose.' Agency status affects duties — e.g., a buyer's agent must not disclose confidential buyer information to the seller.
An agent may not act for more than one party without the knowledge of all parties (undisclosed dual agency prohibited). Self-dealing — such as making a secret profit while representing a principal — is prohibited. An agent must disclose relationships to buyers who are relatives/friends. Representing another broker without the engaging broker's consent is prohibited.
A broker may not pay compensation for acts requiring a license to an unlicensed person. Finder's fees, referral fees, and bird dog fees to unlicensed persons are prohibited, including owner-referral and tenant-referral programs. A provisional broker may only accept compensation from their employing broker/firm.
Any violation of the State Fair Housing Act constitutes improper conduct and a License Law violation. A licensee shall not conduct brokerage or promote their status in a manner that discriminates based on race, color, religion, national origin, sex, familial status, or disability.
Licensees may not perform legal services. They may fill in preprinted attorney-drafted contract forms but may NOT draft legal documents, complete deed/deed of trust forms, abstract or render title opinions, or provide legal advice. Explaining contract provisions is acceptable and recommended.
Making false promises likely to influence, persuade, or induce is prohibited (e.g., promising repairs or cleaning that are never done). Pursuing a course of misrepresentation through other agents or advertising is also prohibited.
The Commission may discipline any licensee found unworthy or incompetent, including failing to properly complete contracts, failing to diligently perform services, or providing inaccurate income/expense reports. Improper dealing prohibits any conduct constituting improper, fraudulent, or dishonest dealing, including breaches of agency duties and fair housing violations.
Grounds for discipline include obtaining a license by false/fraudulent representation, conviction of listed misdemeanors/felonies or offenses involving moral turpitude, acts by exempt property-management employees that would violate 93A-6(a), and discipline of a licensee in another licensed profession for fraud-related offenses.
The Commission consists of nine members: seven appointed by the Governor, one by the General Assembly on recommendation of the President Pro Tempore of the Senate, and one on recommendation of the Speaker of the House. At least three must be licensed brokers and at least two must not be involved in real estate. Members serve staggered three-year terms.
The Commission may make reasonable bylaws and rules not inconsistent with the Chapter, but may not regulate commissions, salaries, or fees charged by licensees. Total administrative expense may not exceed total income, and no expenses are paid from the State treasury. The Commission may employ an Executive Director and staff.
Certain persons/entities are exempt: business entities selling/leasing their own property; attorneys-in-fact for final consummation only; NC attorneys-at-law practicing law; receivers/trustees/guardians/administrators/executors acting under court order; trustees under written trust/deed of trust/will; certain salaried employees of broker-property managers; individual owners selling their own property; and housing authorities.
The North Carolina Securities Act (Chapter 78A) applies in addition to real estate laws to timeshares deemed investment contracts or other securities. However, timeshares registered under this Article are not subject to G.S. 78A-24, and real estate brokers registered under Article 1 are not subject to G.S. 78A-36.
The Commission has authority to adopt rules and regulations not inconsistent with this Article and the General Statutes, and may prescribe forms and procedures for submitting information.
Applicants must be at least 18 years old and, within three years preceding application, have completed at least 75 hours of prelicensing instruction through a certified education provider (or equivalent education/experience). Applicants pay a fee of $100 unless set higher by rule (not to exceed $120).
Brokers licensed on or after April 1, 2006 are initially provisional brokers and must complete a 90-hour postlicensing education program within 18 months of initial licensure. Failure to complete places the license on inactive status. Upon completion, provisional status is terminated.
Applicants must pass an examination unless otherwise provided. Applicants must satisfy the Commission of their competency, honesty, integrity, good moral character, and mental/emotional fitness. Applicants must obtain criminal record reports from designated services. Exam scores are not public records, though pass/fail is public.
Licenses expire June 30 following issuance unless renewed. A license may be renewed 45 days prior to expiration by paying a renewal fee of $45 (capped at $60 by rule). The reinstatement fee equals two times the renewal fee. If not reinstated within six months of expiration, the Commission may treat the person as never having been licensed, subject to original license requirements.
Nothing in the Chapter authorizes the Commission or any licensee to engage in the practice of law or render legal services as set out in G.S. 84-2.1.
Before offering any timeshare located in NC, the developer must make written application to the Commission for registration. The application requires a fee not to exceed $1,500 and must include a program description, copies of proposed declaration and offering documents, marketing/managing entity information, exchange program information, an irrevocable appointment of the Commission for service of process, and other required information.
Upon a properly completed application and a good moral character determination, the Commission issues a certificate of registration. The Commission must notify a developer within 30 days of an incomplete application of deficiencies, and within 60 days of a complete application must either issue the certificate or state specific objections.
Developers must promptly report all material changes in registration information and immediately furnish information on any change in their interest. If a developer terminates its interest, it must cease all marketing/sales, certify termination in writing, and return the certificate for cancellation.
Certificates expire on June 30 following issuance and become invalid unless reinstated. Renewal is available 45 days prior to expiration with a fee not to exceed $1,500. Reinstatement after expiration requires a $50 fee plus renewal fee. If not reinstated within 12 months, the program may be treated as never registered. Duplicate certificates cost $1. Fees are nonrefundable except as prescribed.
All agency agreements must eventually be in writing and signed. Seller/landlord agreements must be in writing before any services are provided. Buyer/tenant agreements may be oral initially but must be reduced to writing no later than when any party makes an offer. An oral buyer/tenant agreement must be non-exclusive, indefinite in period, and terminable at any time.
Every written agency agreement must provide a definite expiration date terminating without notice (exception: landlord tenant-procurement agreements may auto-renew with landlord's right to terminate), contain the Rule A.0104(b) non-discrimination provision in a clear and conspicuous manner, and include the license number of the signing licensee.
Rule A.0104(c) requires licensees in sales transactions to provide the 'Working with Real Estate Agents' disclosure at first substantial contact, review it, and reach agreement about the agency relationship. Simply handing over the form is insufficient; the agent must review and reach agreement.
A seller's agent/subagent must disclose agency status in writing to a prospective buyer at first substantial contact. This is the point when discussion focuses on the buyer's specific needs/desires or financial situation. Disclosure must be made before obtaining personal/confidential info and always before showing property. If by phone/electronic means, disclose immediately by similar means and transmit written disclosure within 3 days.
A buyer's agent must disclose agency status to the seller/seller's agent at initial contact (typically when scheduling a showing). Initial disclosure may be oral, but written confirmation must be made (except auctions) no later than delivery of an offer, usually included in the offer to purchase.
Rule A.0104(d) requires written authority of all parties before acting as a dual agent, applicable to all transactions (sales and lease). Written authority is required from formation except when a buyer/tenant is under an oral agency agreement, in which case written dual agency authority is due no later than when a party makes an offer. Oral consent must still be obtained before beginning dual agency.
Rule A.0104(i) codifies that a firm representing more than one party in the same sales transaction is a dual agent and must disclose it. If one firm agent represents the buyer and another represents the seller in the same transaction, the firm - and all its affiliated licensees - are dual agents.
Rule A.0104(j)-(m) permits firms to appoint one agent to represent only the seller and another to represent only the buyer in in-house dual agency sales situations. This restores client advocacy that is lost in standard dual agency. Authority must be in writing no later than when dual agency authority is required.
Rule A.0104(o) prohibits a broker with an ownership interest in a property from representing a buyer of it (exception: commercial property with under 25% interest and buyer consent after written disclosure). Rule A.0104(p) requires a listing broker/firm buying a listed property to disclose the conflict in writing and advise the seller of the right to terminate and seek counsel.
Rule A.0104(g) exempts licensees representing sellers in auction sales from paragraphs (c), (d), and (e) - no Working with Real Estate Agents brochure, no agency status disclosure, no dual agency. A buyer's agent in an auction must provide written confirmation of representation no later than execution of the purchase contract.
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