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Schools and Instructors Outstanding Examination Performance Records July 1, 2015 – June 30, 2016

The North Carolina Real Estate Commission monitors applicant performance on the license examination and regularly reports this information  to schools and instructors. In particular, the Commission uses information about the performance of applicants who are taking the license examination for the first time in order to assure that quality instruction is being provided in prelicensing courses by schools and instructors. The most recent performance record for each school can be found on the Commission’s website at https://www.ncrec.gov/Pdfs/Schools/LicExamPerfRep.pdf.

The overall examination performance for all first-time candidates taking the comprehensive real estate examination for the license year July 1, 2015 – June 30, 2016 was 54%. The Commission congratulates each of the following schools and instructors for achieving an outstanding examination performance record of 80% or higher during the most recent annual reporting period. The Commission recognizes that to have students perform at such a level on the license examination requires a combination of high quality instruction and high course completion standards.

School

Alamance Community College, Graham; Lenoir Community College, Kinston; Pitt Community College, Greenville; Carteret Community College, Morehead City; Gaston College, Dallas; Weichert, Realtors-Mark Thomas Properties Real Estate School, Durham; Terry Farr Real Estate School, Fayetteville;  Cape Fear Community College, Castle Hayne;  Sandhills Community College, Pinehurst.

Instructors

Kandyce Ellis,  Michelle Fordham,  Larry Lee, Elizabeth O’Neal, James Weese, Christine Darden, Violet Harrington,  Jo Ann LaVecchia,  Ben Wirtz, Leslie Hughes, Laurel Pettys, Christopher Bartlett, Allan Nanney, Jr.

This article came from the October 2016-Vol47-2 edition of the bulletin.

Disciplinary Action

ALL AMERICAN ASSOCIATES REALTY LLC (Hubert) – By Consent, the Commission permanently revoked the firm license of All American Associates Realty effective July 20, 2016. The Commission found that All American Associates Realty failed to provide monthly statements and receipts justifying expenses to property owners; that All American Associates Realty failed to deposit and maintain security deposits and rental proceeds in a trust account; that All American Associates Realty failed to maintain trust account records in compliance with Commission Rules; that All American Associates Realty failed to respond to letters of inquiry sent by Commission staff; and that All American Associates Realty failed to provide transaction records to Commission staff for inspection.

TRACY LEE ANDERSON (North Wilkesboro) – By Consent, the Commission suspended the broker license of Mr. Anderson for a period of 24 months effective June 22, 2016. Three months of the suspension will be active with the remainder stayed for 21 months. The Commission found that Mr. Anderson timely reported his January 2015 North Carolina felony conviction of Possession of Marijuana; that Mr. Anderson received thirty-six (36) months of supervised probation, was ordered to complete 40 hours of community service and was required to undergo a substance abuse assessment; that Mr. Anderson timely reported his February 2016 Texas felony convictions of Possession of Marijuana and Possession of a Controlled Substance, which stemmed from the same incident above; that Mr. Anderson received a forty-eight (48) month term of community supervision on a deferred judgment and was ordered to pay $5,000 in fines and costs; and that Mr. Anderson currently does not have any pending criminal charges.

RANDY A. BARNES (Wilson) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Barnes effective June 22, 2016. The Commission dismissed without prejudice allegations that Mr. Barnes violated provisions of the Real Estate License Law and Commission rules. Mr. Barnes neither admitted nor denied misconduct.

VICTOR ALAIN BARREIRO (Durham) – By Consent, the Commission suspended the broker license of Mr. Barreiro for a period of 12 months effective July 1, 2016. The Commission then stayed the suspension for a probationary period ending July 1, 2017. The Commission found that Mr. Barreiro on July 30, 2013, was convicted of Reckless Driving to Endanger; that on March 5, 2015, Mr. Barreiro pleaded guilty to Misdemeanor Domestic Violence Protective Order Violation; and that Mr. Barreiro failed to disclose both the conviction and the guilty plea to the Commission within 60 days.

WILBUR L. BECK, JR. (Fayetteville) – By Consent, the Commission suspended the broker license of Mr. Beck for a period of 18 months effective March 1, 2016.  Three months and 13 days were active with the remainder stayed for a probationary period ending September 1, 2017. The Commission found that Mr. Beck conducted property management and real estate brokerage services through a sole proprietorship; that Mr. Beck was previously reprimanded by the Commission in other cases for failure to maintain records of all receipts and disbursements of others in such a manner as to create a clear audit trail; that in and around 2015, a trust account audit showed a shortage of at least $29,000 in Mr. Beck’s trust account; and that Mr. Beck failed to timely remit rental proceeds to his landlord-client and failed to maintain accurate records in accordance with Commission trust account rules. The Commission noted that Mr. Beck has since fully funded the shortage in the trust account to the satisfaction of the Commission and has agreed not to act as broker-in-charge or have signature authority of a trust account in the future.

SPENCER T. BENSCH (Matthews) – By Consent, the Commission suspended the broker license of Mr. Bensch for a period of 18 months effective September 1, 2016. Six months of the suspension are active with the remainder stayed. The Commission found that Mr. Bensch, in and around July 2015, and acting as an on-site real estate broker for a licensed builder, forged the builder’s initials on a page in the offer to purchase; then substituted the original page, which contained a range of construction completion dates with the forged page; and that Mr. Bensch stated that his purpose in substituting the forged page was to assist the buyer in school registration. The Commission noted that Mr. Bensch volunteered his commission to compensate the buyer for relocation costs due to the extended completion date and the buyer has been fully reimbursed.

BURCH PROPERTY MANAGEMENT LLC (Fayetteville) – By Consent, the Commission permanently revoked the firm license of Burch Property Management effective July 1, 2016. The Commission found that Burch Property Management, through its qualifying broker and broker-in-charge, failed to maintain trust account records in accordance with the Real Estate License Law and Commission rules, failed to safeguard trust money belonging to others, engaged in deficit spending from the trust account, failed to provide trust account documentation to Commission staff despite numerous requests, and failed to remit tenant security deposits in a timely manner.

CAROLINAS METRO REALTY LLC (Charlotte) – By Consent, the Commission reprimanded Carolinas Metro Realty effective July 1, 2016. The Commission found that in October 2014, a broker licensed in South Carolina, but not in North Carolina, affiliated with the firm and represented that she would obtain a North Carolina license by the end of 2014; that the broker was never licensed in North Carolina, yet, between October 2014 and May 2015, the unlicensed broker showed and leased rental properties in North Carolina; and that the firm received and held $27,932.50 in rental commissions for the broker in anticipation of licensure. The Commission noted once the firm was informed that the broker could not be paid the commissions even after licensure in North Carolina, it reimbursed the full amount.

PASQUALE CARUSO (Hubert) – By Consent, the Commission permanently revoked the broker license of Mr. Caruso effective July 20, 2016. The Commission found that Mr. Caruso failed to provide monthly statements and receipts justifying expenses to property owners; that Mr. Caruso failed to deposit and maintain security deposits and rental proceeds in a trust account; that Mr. Caruso failed to maintain trust account records in compliance with Commission Rules; that Mr. Caruso failed to respond to Letters of Inquiry sent by Commission staff; and that Mr. Caruso failed to provide transaction records to Commission staff for inspection.

COMPASS BUILDING & REALTY LLC (Mooresville) – The Commission accepted the permanent voluntary surrender of the firm license of Compass Building & Realty effective August 17, 2016. The Commission dismissed without prejudice allegations that Compass Building & Realty violated provisions of the Real Estate License Law and Commission rules. Compass Building and Realty neither admitted nor denied misconduct.

PATRICK S. CRAWFORD (Raleigh) – By Consent, the Commission suspended the license of Mr. Crawford for a period of 24 months effective October 1, 2016. The Commission then stayed the suspension for a probationary period from October 1, 2016 through September 30, 2018. The Commission found that Mr. Crawford, acting as the qualifying broker and broker-in-charge of a real estate brokerage firm, managed an occupied residential building (“the property”) and also acted as co-listing agent during its sale; that in September 2014, during the due diligence period, a water test was performed on the well which tested positive for coliform bacteria and the buyer requested copies of current leases for the tenants of the property; that some of the tenant leases contained the phrase “do not drink” where it mentioned water as the utility; that this phrase was written into the leases by Mr. Crawford, unbeknownst to the property owner; that the buyer later terminated the purchase contract; that Mr. Crawford failed to notify the tenants and failed to notify the property owner of the September 2014 well water test; and that the property owner did not begin treatment of the well until January 2016.

LINDA CAROL EPLEY (Maysville) – By Consent, the Commission reprimanded Ms. Epley effective October 1, 2016. The Commission found that in January 2014, Ms. Epley listed property she and her husband owned for sale. Ms. Epley filled out the North Carolina Residential Property Owners’ Association Disclosure Statement by making “no representation.”

STEPHEN ALBERT EPLEY (Maysville) – By Consent, the Commission reprimanded Mr. Epley effective October 1, 2016. The Commission found that in January 2014, Mr. Epley listed property he and his wife owned for sale. Mr. Epley filled out the North Carolina Residential Property Owners’ Association Disclosure Statement by making “no representation.”

FOXFIRE REALTY SERVICES LLC (Foxfire Village) – By Consent, the Commission suspended the firm license of Foxfire Realty Services for a period of 18 months effective July 1, 2016. The Commission then stayed the suspension for a probationary period ending January 1, 2018. The Commission found that on August 29, 2014, one of firm’s property owner clients died and from September 2014 until March 2015 the firm collected rental proceeds from the deceased’s properties and deposited them into its operating account; that Foxfire Realty Services paid the balance of the deceased’s rental proceeds to the attorney for the estate in March 2015; and that Foxfire Realty Services failed to maintain its trust account and trust account records in compliance with the Real Estate License Law and Commission rules.

LOWELL RUSSELL GASAWAY (Whittier) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Gasaway effective June 22, 2016. The Commission dismissed without prejudice allegations that Mr. Gasaway violated provisions of the Real Estate License Law and Commission rules. Mr. Gasaway neither admitted nor denied misconduct.

MARY CATHERINE KELLY (Apex) – By Consent, the Commission reprimanded Ms. Kelly effective September 20, 2016. The Commission found that Ms. Kelly was the agent for the buyers of a residential property in August 2013, and some of the wells of the homes in the neighborhood had recently tested positive for TCE, a known carcinogen; that the well of the subject property was tested and did not show the presence of TCE; that, nevertheless, the North Carolina Department of Environment and Natural Resources allowed a company, Aqua, to construct a water main extension to all of the homes in the neighborhood and allowed owners to connect to those facilities at a discounted rate of $500 before November 2013; that the listing agent for the subject property attached the well test results and the letter from Aqua about the connection deadline to the MLS listing; that Ms. Kelly reviewed these documents, but failed to deliver them to her buyer clients; that Ms. Kelly maintains that she told her buyer clients that the well on the property was not contaminated and that water was available at the street, but the buyers do not recall this conversation; and that after closing, the buyers were informed by their neighbors about the contaminated wells in the neighborhood and now must pay $1,700 to connect to the Aqua utilities since they missed the deadline for the discounted rate.

LEATHERWOOD RENTALS INC (Ferguson) – By Consent, the Commission suspended the firm license of Leatherwood Rentals for a period of 12 months effective April 1, 2016. The Commission then stayed the suspension for a probationary period of 12 months. The Commission found that Leatherwood Rentals failed to maintain trust account records, in compliance with Commission Law and rules; that Leatherwood Rentals earned a commission for selling security deposit insurance but failed to disclose the commission to either renters or the firm’s property owner clients; that Leatherwood Rentals deposited trust monies into an interest bearing account but failed to first obtain written authorization from its property owner clients; that the vacation rental agreements used by Leatherwood Rentals did not contain a recitation of the rights and obligations of tenants and firm as required by the Real Estate License Law and improperly identified the bank at which rental payments were deposited; and that the management agreements utilized by Leatherwood Rentals did not contain required anti-discrimination language and did not include a broker’s license number.

PAMELA J. MCCLURE (Pelham, Alabama) – By Consent, the Commission suspended the broker license of Ms. McClure for a period of six months effective July 1, 2016. One month of the suspension was active with the remainder stayed. The Commission found that Ms. McClure, a licensed North Carolina real estate broker, in and around June 2015, acting as a broker-in-charge failed to actively and directly supervise two provisional brokers affiliated with her firm; that Provisional Broker A lives approximately 395 miles from Ms. McClure’s North Carolina firm and Provisional Broker B lives approximately 100 miles from Respondent’s North Carolina firm; that Ms. McClure herself resides in Georgia, 100 miles from the North Carolina firm; that Ms. McClure failed to respond to multiple Letters of Inquiry and mostly communicates with brokers and staff via telephone and drop box; and that Ms. McClure failed to maintain her firm’s transaction files in full compliance with Commission rules.

MARIO ANTONIO MITCHELL (Charlotte) – By Consent, the Commission reprimanded Mr. Mitchell effective July 1, 2016. The Commission found that on January 22, 2015, the Virginia Department of Professional and Occupational Regulation (DPOR) revoked Mr. Mitchell’s Virginia real estate license and imposed a fine of $2,250. The Commission noted that the basis of the DPOR’s action was a business deal in which Mr. Mitchell was a principal and Mr. Mitchell’s failure to update his personal information not for his actions as a real estate broker.

  1. MITCHELL VACATION PROPERTIES LLC (Burnsville) By Consent, the Commission suspended the firm license of Mt. Mitchell Vacation Properties for a period of 18 months. The Commission found that its qualifying broker, from July 1, 2014 until September 11, 2015, and the firm, maintained money belonging to others in trust accounts, and advertised its services without a broker-in-charge; that its qualifying broker failed to maintain trust account records compliant with Commission rules; and that the qualifying broker’s rental agreements did not comply with the North Carolina Vacation Rental Act.

ALMETTA WANETTA MOORE (Fayetteville) – By Consent, the Commission permanently revoked the broker license of Ms. Moore effective July 1, 2016. The Commission found that Ms. Moore, acting as the qualifying broker and broker-in-charge of Burch Property Management failed to maintain trust account records in accordance with the Real Estate License  Law and Commission rules, failed to safeguard trust money belonging to others, engaged in deficit spending from her firm’s trust account, failed to provide trust account documentation to Commission staff despite numerous requests, and failed to remit tenant security deposits in a timely manner.

GARY RICHARD NUNES (Burnsville) By Consent, the Commission suspended the broker license of Mr. Nunes for a period of 18 months effective January 13, 2016. The Commission found that Mr. Nunes conducted property management services and was qualifying broker of a licensed real estate brokerage firm; that from July 1, 2014, until September 11, 2015, Mr. Nunes operated the firm, maintained money belonging to others in trust accounts, and advertised services without a broker-in-charge; that Mr. Nunes failed to maintain trust account records compliant with Commission rules; and that Mr. Nunes’ vacation rental agreements did not comply with the North Carolina Vacation Rental Act.

BECKIE LEE PAHNER (Foxfire Village) – By Consent, the Commission suspended the broker license of Ms. Pahner for a period of 18 months effective July 1, 2016. The Commission then stayed the suspension for a probationary period ending January 1, 2018. The Commission found that Ms. Pahner acted as the qualifying broker and broker-in-charge of a licensed real estate brokerage firm; that, on August 29, 2014, one of Ms. Pahner’s property owner clients died and from September 2014 until March 2015, Ms. Pahner collected rental proceeds from the deceased’s properties and deposited them into her operating account; that Ms. Pahner paid the balance of the deceased’s rental proceeds to the attorney for the estate in March 2015; and that Ms. Pahner failed to maintain her firm’s trust account and trust account records in compliance with the Real Estate License Law and Commission rules.

PATRICK PROPERTIES INC. (Raleigh) – By Consent, the Commission suspended the license of Patrick Properties for a period of 24 months effective October 1, 2016. The Commission then stayed the suspension for a probation period from October 1, 2016 through September 30, 2018. The Commission found that Patrick Properties managed an occupied residential building (“the property”) and also acted as co-listing agent during its sale; that in September 2014, during the due diligence period, a water test was performed on the well which tested positive for coliform bacteria and the buyer requested copies of current leases for the tenants of the property; that some of the tenant leases contained the phrase “do not drink” where it mentioned water as the utility; that this phrase was written into the leases by the agent, unbeknownst to the property owner; that the buyer later terminated the purchase contract; that Patrick Properties failed to notify the tenants and failed to notify the property owner of the September 2014 well water test; and that the property owner did not begin treatment of the well until January 2016.

PROPERTY MANAGEMENT EXPERTS, INC. (Charlotte) – By Consent, the Commission permanently revoked the firm license of Property Management Experts effective July 21, 2016. The Commission found that Property Management Experts managed a property and at the end of the tenant’s initial term placed the tenant on a month-to-month lease despite the client’s request for an 8-month lease; that in November 2013, the landlord gave notice of termination to Property Management Experts via email and requested that the tenant security deposit (“TSD”) be returned; that, despite multiple requests, Property Management Experts failed to return the TSD until February of 2014; that, furthermore, Property Management Experts deducted the agreed-upon early termination fee of $270 from the TSD; that an audit was performed on Property Management Experts’ trust accounts and the auditor found: that some accounts were not designated to be “trust” or “escrow”, despite containing rent deposits and property owner disbursements; evidence of previous shortages; that Property Management Experts failed to maintain ledgers, journals, a check register, and failed to make monthly reconciliations; and evidence of comingling. The Commission noted that, at the time of the audit, the balances in the trust accounts were adequate to cover the security deposits balance because a large deposit was made into the account three days before the auditor’s scheduled visit.

RAINA EUNICE PURVIS fka RAINA EUNICE PELZER (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Purvis for a period of 24 months effective July 21, 2016. The Commission then stayed the suspension on certain conditions for a probationary period from July 21, 2016 through July 20, 2018 and prohibited Ms. Purvis from acting as a broker-in-charge and engaging in property management for a period of three years. The Commission found that Ms. Purvis, acting as the qualifying broker and broker-in-charge of a licensed real estate firm, managed a property and, at the end of the tenant’s initial term, placed the tenant on a month-to-month lease despite the client’s request for an 8-month lease; that in November 2013, the landlord gave notice of termination to Ms. Purvis via email and requested that the tenant security deposit (“TSD”) be returned; that, despite multiple requests, Ms. Purvis failed to return the TSD until February of 2014; that, furthermore, Ms. Purvis deducted the agreed-upon early termination fee of $270 from the TSD; that an audit was performed on Ms. Purvis’ trust accounts and the auditor found: that some accounts were not designated to be “trust” or “escrow”, despite containing rent deposits and property owner disbursements; evidence of previous shortages; that Ms. Purvis failed to maintain ledgers, journals, a check register, and failed to make monthly reconciliations; and evidence of comingling. The Commission noted that, at the time of the audit, the balances in the trust accounts were adequate to cover the security deposits balance because Ms. Purvis made a large deposit into the account three days before the auditor’s scheduled visit.

CHASITY RENEE ROBBINS (Lexington) – By Consent, the Commission suspended the broker license of Ms. Robbins for a period of three months effective May 1, 2016. The Commission found that Ms. Robbins entered into a listing agreement on April 16, 2015 to sell lakefront property and agreed to advertise the property on the MLS and on the Internet; that Ms. Robbins failed to deliver the listing agreement to her broker-in-charge and failed to enter the property on the MLS system until June 25,2016; that Ms. Robbins failed to respond to two Letters of Inquiry sent by Commission staff and failed to respond to attempts by Commission staff to communicate with her by telephone and mail.

CHRISTINA MARIE SERAFINO (Cary) – By Consent, the Commission reprimanded Ms. Serafino effective September 20, 2016. The Commission found that Ms. Serafino represented out-of-state buyers of a property; that an inspection was performed for the property which revealed that the home was clad in hardboard siding rather than fiber cement, as advertised on the MLS; that Ms. Serafino failed to notify the listing agent of the difference in siding as indicated on the MLS; that the home was actually clad in hardboard siding as well as some fiber cement siding; that Ms. Serafino agreed to verify that the repair requests were completed prior to closing; and that Ms. Serafino performed a walk-through on the day of closing, but failed to review all receipts for work performed and failed to retain all copies of receipts received for her files.

ANU SHARMA (Greensboro) – By Consent, the Commission reprimanded Mr. Sharma effective September 1, 2016. The Commission found that Mr. Sharma, in and around November 2015, acted as a property manager and collected rental proceeds and tenant security deposits through an unlicensed firm; that Mr. Sharma collected rents in cash, but failed to provide a receipt or deposit the funds within three days; that Mr. Sharma failed to provide monthly statements to landlord-clients; that Mr. Sharma failed to designate himself as a broker-in-charge; and that Mr. Sharma failed to maintain a personal ledger or trial balance in compliance with Commission rules. The Commission noted that Mr. Sharma has signed a Cease and Desist Agreement on behalf of his unlicensed firm and has stopped performing property management services.

KELLY R. SMITH (Raleigh) – The Commission accepted the voluntary surrender of the broker license of Ms. Smith for a period of two years effective April 20, 2016. The Commission dismissed without prejudice allegations that Ms. Smith violated provisions of the Real Estate License Law and Commission rules. Ms. Smith neither admitted nor denied misconduct.

JONATHAN LEE WASHINGTON (Greensboro) – By Consent, the Commission revoked the broker license of Mr. Washington effective June 1, 2016. The Commission found that Mr. Washington, acting as the broker-in-charge of his own sole proprietorship, converted earnest money deposits for personal expenses; that Mr. Washington admits that he often used the earnest money deposits to cover his personal expenses; that a records inspection completed by a Commission representative found negative account balances, a number of cash withdrawals, and checks made payable to cash from Mr. Washington’s escrow account; that Mr. Washington failed to maintain trust account records and client funds in compliance with Commission rules including failure to maintain and deposit funds in a designated trust account and failing to maintain transaction records; and that the records that Mr. Washington did maintain showed forms signed incorrectly with inaccurate dates.

WESLEY DENNIS WHITSON (Ferguson) – By Consent, the Commission suspended the broker license of Mr. Whitson for a period of 12 months effective April 1, 2016. The Commission then stayed the suspension for a probationary period of 12 months. The Commission found that Mr. Whitson, acting as broker-in-charge of a real estate brokerage firm, failed to: maintain trust account records in compliance with Commission Laws and rules; that Mr. Whitson earned a commission for selling security deposit insurance but failed to disclose the commission to either renters or the firm’s property owner clients; that Mr. Whitson deposited trust monies into an interest bearing account but failed to first obtain written authorization from its property owner clients; that the vacation rental agreements used by Mr. Whitson did not contain a recitation of the rights and obligations of tenants and firm as required by the Real Estate License Law and improperly identified the bank at which rental payments were deposited; and that the management agreements utilized by Mr. Whitson did not contain required anti-discrimination language and did not include a broker’s license number.

This article came from the October 2016-Vol47-2 edition of the bulletin.