NCVRMA Legislative & Regulatory Update – October 2021
The Timeshare Act successfully passed the legislature on Sept. 23 and was presented to Governor Cooper for his signature on September 28. This legislation modernizes the NC Timeshare Act.
Key changes are as follows:
- Recognizes multistate programs and reservations systems
- Adds provisions for timeshare transfer service providers and exit companies
- Eliminates bond requirement for education providers
Short Term Rental
- A technical correction that would restore to homeowners much needed legal protection from rental bans and restrictions is included in the House version of the budget.
- State law previously provided essential stability for home buyers by preventing local governments from regulating major sources of rental income out of existence. It also prevented local governments from enacting overly burdensome regulations on rental housing, including charging owners a fee to rent their own property.
- In 2019, the General Assembly reorganized North Carolina’s land use statutes with the explicit intent and promise not to make substantive changes in the law. Instead, an important substantive change was made. Due to the change, homeowners who financially planned on rental income are no longer protected from significant losses due to local ordinances.
- Our advocacy efforts have been focused on asking legislators to affirm the General Assembly’s original intent to safeguard homeowners and property rights by supporting the change in Section 5.15(a) of the House version of the budget by returning GS 160D-1207(c) to the General Assembly’s previous policy.
NC Real Estate Commission
- A diverse group with a range of experience was selected to look at update courses.
- The group includes private and public providers, BICs, education directors, etc. The topics will be presented during the October meeting.
Annual Rulemaking Proposals
The Commission briefly discussed potential rulemaking proposals. The proposals, shown below, will be fully discussed during their October meeting.
- BIC course change to make it a distance course
- Reduce or repeal the 40% rate of the licensee performance report for the last previous two years.
- Prohibit property owners from requiring a driver license (staff does not support this nor do they have right to tell property owners that they can’t do this)
- Rule concerning loves letter discussed at March meeting.
- Make general update and BIC-up into one course,
- Allow buyers a free look before submitting a due diligence fee.
North Carolina Appraisal Board
Appraisal Foundation Report
- The Appraisal Qualifications Board adopted changes to the real property criteria.
- Approving synchronous courses – live classes done remotely.
- Acceptance of these course is more in line with classroom courses.
- This will have an impact on Rules.
A working group was recently formed to address racial biases.
- Working group includes:
- NC Housing Finance Agency
- NC Credit Union League
- NC Human Relations Division
- NC Commissioner of Banks
- NC Real Estate Commission
- Office of Administrative Hearings Housing Division
- Staff recently hosted a training session, they are working on a virtual training session for Board members.
North Carolina Home Inspector Licensure Board
Pay to Play
- This issue continues to be a topic of discussion.
- One topic of concern is real estate companies putting fees on home inspectors to come into their business.
- The other issue is regarding an inspector paying for a realtor’s meal.
- Legal guidance has been requested for this issue
- A proposed statutory change was discussed and will be addressed during a future Board meeting.