Education Requirements
Prelicensing Education: 75 Classroom Hour Broker Prelicensing Course
Upon completing the course, filing a license application, passing the licensing examination, and satisfying the Commission as to his or her character to serve as a broker, a person is issued a broker license on provisional status (i.e., becomes a "Provisional Broker"). A licensed salesperson in another state with which North Carolina has reciprocity may obtain a provisional broker license without passing the North Carolina license examination, but must meet all other requirements.
Postlisencing Education: 90 Classroom Hours within Three Years after Initial Licensure
A new provisional broker is required to complete 90 hours of postlicensing education (divided into three 30-hour courses) emphasizing practical knowledge and skills within three years of obtaining his or her provisional broker license to remove the "provisional" status and retain eligibility to be on active status. Each of the 30 hour courses includes a written examination which the licensee must successfully pass. These courses are listed below:
Postlicensing Courses (30 Classroom Hours Each)
- Broker Relationships and Responsibilities
- Contracts and Closings
- Selected Topics
KEY POINTS TO REMEMBER
The new provisional broker must complete one of the three 30-hour postlicensing courses during each of the first three years after initial licensure. All three courses must be completed during the three year period. The same cause may not be taken twice for credit.
A provisional broker may complete all three courses during the first (or second) year after initial licensure if he or she so chooses. Upon completion of all three courses, the broker's provisional status will be automatically terminated by the Commission.
The postlicensing requirement is in addition the continuing education requirement of eight (8) hours per year, and post licensing courses DO NOT count toward the c continuing education requirement.
THE TIME PERIODS FOR COURSE COMPLETION
If licensed on or after April 1, 2006.
For provisional brokers whose initial North Carolina real estate licenses were issued on or after April 1, 2006.
The time periods for completion of postlicensing courses begin to run on their license issuance date. Thus, the deadline for course completion is determined by the date of license issuance. For example: a provisional broker whose initial license was issued on May 15, 2006, must complete at least one of three postlicensing courses by May 15, 2007, two of the courses by May 15, 2008 and all three courses by May 15, 2009. May 15 will be his or her "anniversary date" for completing postlicensing courses. It is very important to note that these time periods DO NOT coincide with the license year as is the case with CE. A licensee only has to look at his/her license certificate (NOT POCKET CARD) to ascertain his/her anniversary date.
If licensed as salesperson between October 1, 2005 and March 31, 2006 and converted to provisional broker on April 1, 2006.
The time periods for postlicensing course completion for provisional brokers whose were issued a salesperson license between October 1, 2005 and March 31, 2006 and whose salesperson licenses were converted to a "provisional broker" licenses on April 1, 2006 begin to run on April 1, 2006. Therefore, all these provisional brokers have an anniversary date of April 1.
Do not delay taking a required postlicensing course until the last minute! When a course is available in a location convenient to you, you are advised to go ahead and take the course event if you have several months left to take it. It is very important that provisional brokers take personal responsibility for completing these courses in a timely manner. This is NOT CE. A postlicensing course may not be completed in one day - even the most accelerated permissible course schedule will require a minimum of at least 10 days for course completion. Also, unlike CE, where many courses are scheduled and available in many locations in the late spring when most licensees take CE, scheduled postlicensing courses will be spread more evenly throughout the year because the demand will be spread throughout the year. When this fact is considered along with the fact that the demand for postlicensing courses is far less than the demand for CE, availability in a location convenient to the licensee will be much more of an issue.
The criteria for extensions of time to complete these courses is very restrictive - same criteria as for continuing education. Confusion by a licensee about his/her deadline for taking the courses, procrastination by the licensee, unavailability of course in a convenient location, business or personal conflicts, or even an illness or family emergency that occurs in the last month of the time period for taking a course will NOT be grounds for obtaining an extension of time.
CONSEQUENCES OF NOT COMPLETING POSTLICENSING EDUCATION
After the First or Second Year - A provisional broker who fails to complete a 30 hour postlicensing course as required in either the first or second year following licensure will have his/her license placed on inactive status at the end of the year. To reactivate the provisional broker license, the individual must complete the 30 hour course he/she failed to take, in addition to any required continuing education, and submit a "Request to Activate License" form.
After Third Year - If a provisional broker fails to complete all 90 hours of the postlicensing education program within three years of initial licensure, his/her provisional broker license will be cancelled. A cancelled license may not simply be "activated". It must be reinstated, which may require a former licensee to file an application as though applying for original licensure. The requirements to reinstate the cancelled license will be within the Commission's discretion. Policies for reinstatement of such cancelled licensee have not yet been adopted by the Commission, but it is certain that the greater the period of time since license cancellation, the greater the amount of education that will be required, and at some point a former licensee may be required to satisfy all requirements for original licensure (i.e., the 75 hour broker pre-license course and the state license examination) in addition to completing the 90 hour post-licensing program.
SCHOOLS WILL REPORT COURSE COMPLETION TO THE COMMISSION
Schools will report postlicensing course completion to the commission electronically within seven (7) days of course completion. Please do not send course completion certificates to the Commission.
Once a provisional broker's record reflects that all three 30-hour courses have been completed (i.e., upon a school reporting to the Commission that a provisional broker has completed all three courses), the provisional status of the provisional broker's license will be removed and the licensee will immediately be sent a "Notice of Records Change" advising of the status change, and within the next 15 days, the broker will be sent a new pocket card that reflects full broker status.
"EQUIVALENT" CREDIT FOR OLD 60- HOUR BROKER COURSE AND GRI PROGRAM
60-Hour Broker Course
Any provisional broker who completed the old 60-hour Broker Course within the previous three years may receive equivalent credit for 60 hours toward the postlicensing requirement by submitting an original Broker Course certificate and a request for provisional broker may then take any one of the three postlicensing courses within three years of initial licensure to complete the postlicensing education requirement.
GRI Program. A provisional broker who completes the entire GRI education program conducted by the North Carolina Real Estate Educational Foundation (NCREEF) and is awarded the GRI designation will receive credit for the Selected Topics postlicensing course. NCREEF will report GRI program completion to the Commission. A GRI designee does NOT have to request equivalent credit.
NONRESIDENT LICENSEES AND POSTLICENSING EDUCATION
Nonresident provisional brokers are subject to the postlicensing education requirement; however, the postlicensing courses are not available by "distance education" because that methodology is not conducive to the courses being taught in the manner desired by the Commission and its Education Advisory Committee. Consequently, the Commission has made accommodations for nonresident licensees, many of whom would incur great difficulty and expense if required to take in-class courses in North Carolina. Nonresident licensees may satisfy the postlicensing education requirement by taking courses in another state or by obtaining a broker license in another state. Specific instructions for nonresident licensees are available on the Commission's website under "Postlicensing Education".
REVIEW OF THE REQUIREMENTS FOR "CONVERTED" PROVISIONAL BROKERS
The 2005 Real Estate License Law amendments eliminated the "salesperson" license category effective April 1, 2006 and converted all salesperson licenses to "provisional broker" licenses on that date. This legislation further divided such "converted" provisional brokers into two distinct groups subject to different requirements to retain their eligibility to actively engage in real estate brokerage. These two groups of "converted" provisional brokers are:
- Those licensed as a salesperson prior to October 1, 2005.
- Those licensed as a salesperson between October 1, 2005 through March 31, 2006.
Converted Provisional Brokers Licenses as a Salesperson Prior to October 1, 2005.
The licensees in this first group have two options for terminating the provisional status of their broker licenses.
Option 1: Complete the 24 hour Broker Transition Course on or before April 1, 2008.
The Broker Transition Course is a special 24-hour classroom course focusing on the practical aspects of brokerage practice and topics deemed to be of special importance to licensees. The course is essentially a condensed version of the three postlicensing courses. The course if offered through the Commission-approved Update sponsors and taught by Update course instructors, and licensees who complete this course will receive four hours of continuing education elective credit in the license period during which the course is taken. Sponsors will report completion of the Broker Transition Course to the Commission electronically within seven (7) days of completion. Do NOT submit course completion certificates to the Commission!! Once a provisional broker's record reflects that the course has been completed, the provisional status of his/her broker license will be removed and the licensee will immediately be sent a "Notice of Record Change" reflecting the status change and then will be sent within 15 days a new pocket card that reflects full broker status.
Option 2: Certify to the Commission on or before April 1, 2008 that you have four (4) years full-time (or equivalent part-time) real estate brokerage experience within the preceding six (6) years.
Provisional brokers who possess the experience cited above may certify such experience to the Commission in lieu of completing the 24-hour Broker Transition Course.
KEY POINTS TO REMEMBER
The qualifying brokerage experience may have been obtained as a salesperson or provisional broker in North Carolina or another state.
All qualifying experience must have been obtained while the licensee's license was on active status. Thus, the provisional broker's license must have been on active status for at least four of the previous six years. Licensees may access their licensee record through the Commission's website to check their license status history. Removal of provisional status based on a provisional broker's certification of experience when the certifying provisional broker's license had not been on active status for four of the previous six years will be subject to inquiry and possible reversal of the removal of provisional status.
"Full-Time" means 40 hours per week.
Qualifying experience may include experience obtained after April 1, 2006 and up to April 1, 2008 (the deadline for certification of experience).
The ONLY acceptable experience consists of brokerage experience - in other words, experience performing a brokerage activity for which a real estate license is required (e.g., listing, selling, purchasing, leasing or renting real estate for others for a fee), and includes experience as a licensed real estate assistant.
Unacceptable experience includes work performed as a secretary, bookkeeper or manager of a real estate office, or as a leasing agent performing acts exempt from licensure, even if you held a real estate license at the time.
Again, only real estate brokerage experience counts! There is no equivalent experience option! If you do not possess all the brokerage experience required, your only option is to take the 24-hour Broker Transition Course! NO EXCEPTIONS
The Commission will not evaluate or comment on the adequacy of your experience prior to your submitting a certification of experience. You must determine yourself if you can justify your claim of four years full-time or part-time equivalent brokerage experience within the previous six years if asked by the Commission to document such experience. The "Provisional Broker Certification of Experience" form on the Commission's website describes suggested documents you may want to have available to verify brokerage experience if requested by the Commission to do so.
The Commission will "spot check" experience certifications as well as check those that appear for any reason to be questionable.
If you are not certain you possess the necessary experience and can provide satisfactory documentation of such experience if requested to do so, you should complete the 24-hour Broker Transition Course.
HOW TO CERTIFY EXPERIENCE AND REMOVE PROVISIONAL STATUS
Provisional brokers eligible to choose this option may use the Commission's website to certify online their experience and remove their provisional status. At the home page there is a link to the "Provisional Broker Certification of Experience" form that may be completed online.
CONSEQUENCES OF FAILURE TO EXERCISE ONE OF THE ABOVE OPTIONS
VERY IMPORTANT POINT: Should a provisional broker who was licensed as a salesperson prior to October 1, 2005 fail to remove the provisional status of his or her license by exercising one of the two options described above prior to April 1, 2008, his/her license will be placed on inactive status (if not already on inactive status). In order for the inactive provisional broker to subsequently "activate" his/her license, he or she must first COMPLETE THE ENTIRE 90 HOUR POSTLICENSING EDUCATION PROGRAM.
Converted Provisional Brokers Licensed as a Salesperson between October 1, 2005 and March 31, 2006.
Provisional Brokers in this group must complete the 90 hour postlicensing education program by April 1, 2009 (one 30 hour course by April 1, 2007, a second 30 hour course by April 1, 2008 and all three courses by April 1, 2009.
See the previous discussion of the postlicensing education program.
REVIEW OF THE NEW BROKER-IN-CHARGE REQUIREMENTS
As a result of concerns on the part of the Commission and many licensees regarding the competency of brokers with little or no brokerage experience designating themselves as brokers-in-charge and engaging in practice as sole proprietors, the Real Estate License Law was amended effective April 1, 2006 to require brokers-in-charge to have additional specialized training and to possess substantial real estate brokerage experience.
Qualification Requirements to Serve as Broker-In-Charge (BIC)
Not a provisional broker. Broker license must NOT be on "provisional" status. A provisional broker is ineligible to serve as a broker-in-charge.
Qualifying experience. Broker must have at least two (2) years full-time (or part-time equivalent) real estate brokerage experience within the preceding five (5) years.
Qualifying education. A broker who designates himself or herself as a broker-in-charge complete the Commission's 12 hour Broker-In-Charge Course within 120 days of designation. This course is only offered through the North Carolina Real Estate Commission.
Special continuing education. A broker-in-charge must complete a four hour Broker-In-Charge Annual Review Course each license period in lieu of a continuing education elective course. ATS, Inc does teach this course. Only a BIC will receive continuing education credit for the course. Agents who are not designated Broker-in-charge should not sign up for this class. Check the ATS, Inc schedule for the next class..
Certifying Qualifying Experience
When submitting a "Broker-In-Charge Declaration" form to designate himself or herself as a broker-in-charge (may be done online through the Commission's website), a broker must certify to the Commission that he or she possesses the required brokerage experience, that it was acquired while his or her license was on active status, and that it consisted of activities for which a real estate license is required (listing, selling, purchasing, leasing or renting real estate for others for a fee). [Note that experience in another state or as a licensed real estate assistant is acceptable. Experience as a secretary, bookkeeper or manager of a real estate office, or as a leasing agent performing acts exempt from licensure is not acceptable, even if performed while holding a real estate license.]
The Commission will "spot check" certifications of qualifying experience by BIC designees as well as check those that appear for any reason to be questionable. A BIC should be prepared to provide documentation of his/her claimed brokerage experience upon request.
Broker-In-Charge Course
A newly designated broker-in-charge must complete the 12-hour Broker-In-Charge Course within 120 days of designation, unless the broker has had the 12-hour course within the preceding three years, in which case he or she will not be required to repeat the course. Once a broker-in-charge has taken the 12-hour course, he/she will not be required to repeat the course in the future so long as he/she is continuously designated as a broker-in-charge and does not suffer any lapse in that status for any reason.
Broker-In-Charge Annual Review Course (BIC Mandatory CE)
During the first full license period following designation as a broker-in-charge, and each license period thereafter, every broker-in-charge must complete a special four-hour continuing education course developed specifically for BICs in lieu of taking a regular continuing education elective course. This special course, the Broker-in-Charge Annual Review Course, is written by the Commission, but taught by Commission-approved Real Estate Update course instructors. Like the update course, the specific content of the BIC Annual Review Course will differ each year. Course sponsors are required to restrict enrollment in this course to brokers already designated as a BIC.
Example: A BIC designated in January 2007 must take, during the July 2007-June 2008 license period, and each license period thereafter, the Real Estate Update Course and the BIC Annual Review Course. (For the July 2006-June 2007 license period, the BIC has to take the Update Course and one elective course.)
This requirement means that a BIC does not have a CE elective option after the first renewal of his or her license following BIC designation. ATS, Inc. is teaching the BICAR course. Check the schedule for our next Broker-in-Charge Annual Review Course. This course will be offered beginning October 2006.
MISCELLANEOUS LICENSE STATUS AND EDUCATION ISSUES
In response to the many calls Commission staff receives from licenses who are confused and frustrated with the lack of knowledge pertaining the maintenance of their real estate licenses, the Commission attempts to remind licensees about specific education and licensing matters in each years Update Course.
"Current" versus "Expired" license
A current license is one for which the licensee has paid the proper renewal fee for the current license period.
An expired license is one for which the licensee has NOT paid the proper renewal fee for the current license period.
This page was last reviewed July 24, 2006