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NCREC Proposes Repeal of Limited Nonresident Commercial Broker License

Writer's picture: SkylineSkyline

The North Carolina Real Estate Commission (“NCREC”) has recently announced a proposal to repeal the Limited Nonresident Commercial Broker license classification.

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If adopted, these rule changes would eliminate the current option that allows out-of-state commercial brokers to practice in North Carolina under a special limited status. Going forward, any broker wishing to engage in commercial real estate transactions in North Carolina would need to hold a full, active North Carolina broker’s license.


Below is an overview of the proposed rulemaking and what it may mean for real estate professionals, specifically those operating in the commercial sector:


Background and Summary

  1. Existing Limited Nonresident Commercial License

    Currently, brokers who are licensed in another state but wish to handle commercial deals in North Carolina may apply for a Limited Nonresident Commercial Broker license. This arrangement often streamlines cross-border transactions, allowing commercial practitioners from other states to cooperate with a North Carolina–licensed broker without obtaining a full license.

  2. Proposed Repeal

    The Commission’s proposal seeks to repeal 21 NCAC 58A .1801 - .1810, effectively doing away with the limited license entirely. This move is likely intended to ensure that all brokers practicing within North Carolina’s borders—residential or commercial—meet the same licensing standards and regulatory requirements.

  3. Impact on Commercial Brokers

    • Out-of-State Brokers: If the rule is adopted, out-of-state brokers who previously relied on limited licensing must pursue and obtain a full North Carolina broker’s license to continue performing commercial transactions in the state. This will involve meeting North Carolina’s prelicensing education requirements, passing the state exam, and fulfilling any post-licensing or continuing education mandates.

    • In-State Brokers: North Carolina brokers may experience fewer competition concerns from out-of-state licensees, but also may need to navigate new cooperative agreements or referral relationships for cross-border deals.


Key Dates and Participation

  • Comment Period: January 15 to March 17, 2025. During this time, written comments regarding the proposed repeal can be submitted to the NCREC’s Rulemaking Coordinator, Melissa A. Vuotto, via email at public.comment@ncrec.gov.

  • Public Hearing: February 19, 2025, at 9:00 a.m.

    • Location: High Point University, Anne Kerr Walker Ballroom, Congdon School of Health Sciences Building, One N University Pkwy, High Point, NC 27260

    • Remote Participation: A Zoom option will be available. Registration details are provided on the Commission’s website. Speakers will have up to 3 minutes each to share their views on the proposed changes.


Why Is the Commission Making This Change?

While the NCREC has not provided an exhaustive list of reasons in the notice, we speculate that motivations for such a rule change could include:

  • Ensuring Consumer Protection: By requiring all commercial brokers to meet North Carolina’s full licensure requirements, the Commission aims to maintain a consistent standard of practice and knowledge among all active brokers.

  • Uniform Licensing Standards: Eliminating the limited nonresident status could reduce confusion and ensure that all practitioners are held to the same statutory and regulatory obligations in the state.


Next Steps for Commercial Brokers

  1. Stay Informed: Monitor updates from the NCREC regarding this rulemaking process. Any revisions or decisions following the public hearing will be published on the Commission’s website.

  2. Submit Comments: If you have questions or concerns, make your voice heard during the public comment period. Written statements often carry significant weight in rulemaking decisions.

  3. Plan Ahead: Out-of-state brokers currently practicing under the limited license should be prepared to initiate the North Carolina broker licensing process if the repeal is adopted. This involves completing prelicensing coursework, passing the state exam, and adhering to post-licensing and continuing education requirements.

  4. Attend the Public Hearing (In-Person or Online): If you want to present your perspective directly to the Commission, consider attending the hearing on February 19, 2025.

Conclusion

The proposed repeal of the Limited Nonresident Commercial Broker license option marks a significant potential change for the commercial real estate landscape in North Carolina. If this rule is approved, it will underscore the state’s commitment to uniform licensing standards for all brokers—residential and commercial alike.


Professionals who may be impacted by this rule are strongly encouraged to participate in the public hearing process and submit their feedback before the March 17, 2025 deadline. Whether you’re an in-state broker, an out-of-state licensee exploring commercial deals in North Carolina, or a stakeholder with a vested interest, staying informed and engaged will be crucial during this transition.


For more details, visit the Commission’s homepage and review the full text of the proposed rule changes under “License Law & Rule Changes” or reach out to the NCREC Rulemaking Coordinator, Melissa A. Vuotto, at public.comment@ncrec.gov.


What do you think about this proposed rule change? Let us know in the comments or share it with a colleague in an upcoming CE Class!


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