THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, July 27, 1996 TAG: 9607250291
SECTION: REAL ESTATE WEEKLY PAGE: 24 EDITION: FINAL
COLUMN: ABOUT THE OUTER BANKS
SOURCE: Chris Kidder
LENGTH: 107 lines
It should come as no surprise that a large number of folks on the Outer Banks earn a living - or, at least, aspire to earn a living - from real estate. If real estate's three most important assets are location, location and location, a real estate agent on the Outer Banks has it made.
On our narrow barrier islands, water views, water access, protected open space and other key location attributes, as well as customers, are as plentiful as sand fleas.
In North Carolina, however, there's more to transacting real estate business on someone else's behalf than taking advantage of a natural market. In North Carolina, agents must be licensed: To operate as an agent in a real estate transaction without a license is a criminal offense.
While North Carolina's real estate license requirements rank low compared to most other states (for the salesman's license, the state requires just 30 hours of classroom hours - the national average is more than 60), the licensing process is still no piece of cake.
The license, by the way, is a salesman's license. Changing the designation to a less sexist term requires a vote by the General Assembly. A change to ``salesperson'' has the approval of most legislators and real estate professionals but it's not been a priority.
Licensed real estate salesmen can only work under the supervision of a licensed real estate broker. The first step toward getting a North Carolina salesman's or broker's license is satisfying the pre-license requirements which, in most cases, means taking state-approved classes. Exceptions can be made for persons with real estate experience and/or comparable education.
Approved real estate courses are taught at 90 schools - 52 community and technical colleges, 12 universities and four-year colleges and 26 private real estate schools - around the state, although not all courses are offered at all times. The real estate commission provides each course syllabus and approves instructors.
Course fees are set by the schools. Generally, community college courses are the least expensive. At most of North Carolina's colleges, real estate classes are now part of the curriculum, meaning that credits earned count toward a college degree. It also means that completing the course requires more classroom hours and more calendar time.
Taking the courses at a private school can cost hundreds of dollar but you'll spend less time. ``Fundamentals of Real Estate,'' the required class for the salesman's license, for example, will take less than a month of evening or weekend classes.
A salesman with two years of full-time experience can qualify to take the state broker's exam. Those who want a broker license without working as a salesman first must spend an additional 90 hours in the classroom studying real estate law, finance and brokerage operation.
Under the current system, brokers can open their own real estate agencies and supervise salesman licensees with no experience working as real estate agents themselves.
Applications for the state licensing exam are accepted after pre-licensing requirements are met and must be made one month prior to the exam date. The application fee for salesman or broker licenses is $30. If the commission decides an applicant is unqualified, the $30 will be refunded. If the applicant decides not to take the exam, the state keeps the fee.
Examinations are given once a month at eight locations in the state. Each test (salesman or broker) lasts 4 1/2 hours. Exam results are mailed out two to three weeks after the exam. Applicants must score 75 percent or better to pass.
Those who do not pass are allowed to review the questions they missed, by request and without taking notes. They may take the exam again in two months without filing a new application and paying another $30 fee.
According to statistics published by the commission, 796 of the 1,294 applicants - or 62 percent - who took the salesman exam in December 1995 and January and February 1996 passed. For years, the state's licensee pass-fail record for the salesman's test has been in the 60 percent range.
For the same months, 484 brokers took the test and 300 passed (about the same percentage as salesmen applicants). Generally speaking, brokers have a tougher time with just over 50 percent passing on their first try.
``The exam is very tightly controlled,'' says Anita Burt, an education officer for the N.C. Real Estate Commission in Raleigh. ``We want the difficulty of the exam to be consistent from month to month.
While the difficulty of the exam may not change from month to month, other factors evidently influence the results. Statistically, February is the worst month to take the broker test. In February 1995, 138 people took the brokers test and more than half (81) failed. In 1996, 78 would-be brokers passed while 73 failed.
In addition to education and experience requirements, North Carolina requires that all real estate licensees be at least 18 years old and ``possess good character.'' This character requirement is a subjective thing: convicted felons can be licensed, for example, as long as they're truthful and admit what they are.
Beginning in 1995, North Carolina joined the majority of states by adding a mandatory continuing education requirement for all real estate licenses. As with its pre-licensing class, the continuing education hour requirements are below the national average.
North Carolina real estate licensing is administered by the North Carolina Real Estate Commission under authority granted by the state General Assembly. The commission's seven members are appointed by the governor - at least three are licensed real estate agents, and at least two members have no involvement in the real estate or appraisal business.
Currently, North Carolina has reciprocal agreements with several states. These agreements change as state licensing requirements change. Check with the real estate commission for current agreements.
To get a free copy of ``Real Estate Licensing in North Carolina,'' (which includes a license application form, exam dates and filing deadlines, state license law, commission rules, trust account guidelines, a study guide and a copy of the state fair housing act), write the N.C. Real Estate Commission, P.O. Box 17100, Raleigh, N.C. 27619, or phone 919-733-9580. MEMO: Send comments and questions to Chris Kidder at P.O. Box 10, Nags
Head, N.C. 27959. Or e-mail her at realkidd(AT)aol.com by CNB