Disciplinary Actions – May 2014-V45-1

NANCY B. BRADY (Pinnacle) – The Commission accepted the voluntary surrender of the broker license of Ms. Brady for a period of five years effective March 19, 2014. The Commission dismissed without prejudice allegations that Ms. Brady violated provisions of the Real Estate Law and Commission rules. Ms. Brady neither admitted nor denied misconduct.

MICHAEL KENNETH BROOKS (Charlotte) – By Consent, the Commission revoked the broker license of Mr. Brooks effective March 19, 2014. The Commission found that Mr. Brooks, acting as property manager for clients of his own sole proprietorship, failed to designate himself as broker-in-charge; that Mr. Brooks managed several properties without the knowledge or consent of the broker-in-charge of the firm with which he was affiliated; that Mr. Brooks failed to maintain trust accounts for security deposits and rents he collected while managing properties through his sole proprietorship; and that Mr. Books failed to respond to multiple letters of inquiries from the Commission.

LYNETTE MARIE GAVALIER (Chapel Hill) – By Consent, the Commission reprimanded Ms. Gavalier effective February 1, 2014. The Commission found that Ms. Gavalier listed a property and mistakenly advertised it on her Web site with photos of a neighboring subdivison’s amenities, which included an indoor lap pool and a fitness area; that a buyer who was out of the country during negotiations, but was present for the closing, closed on the property; that the amenties for the property subdivision did not include an indoor pool and the exercise area was different than the one represented on her Web site.

RONALD CLIFFORD HALSTEAD (Murphy) – By Consent, the Commission suspended the broker license of Mr. Halstead for a period of six months effective February 1, 2014. One month of the suspension was active with the remainder stayed for a probationary period of five months. The Commission found that Mr. Halstead, acting as a dual agent in a real estate transaction, failed to inform the closing attorney or lender that the buyers had signed a separate promissory note to pay the seller a sum of money in addition to the property sales price; and that the separate promissory note was not reflected on the HUD-1 settlement statement.

FREDERICK P. HILTZ (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Hiltz for a period of two years effective April 1, 2014. The Commission then stayed the suspension for a probationary period of three years. The Commission found that Mr. Hiltz, acting as broker-in-charge of a property management firm, managed a homeowners’ association and was authorized by the association to initiate foreclosure proceedings against an owner for non-payment of dues; that Mr. Hiltz discovered recording issues which could prevent the mortgage deed of trust from attaching to the subject property and that Mr. Hiltz failed to disclose this fact to his client, leading the association to approve Mr. Hiltz’s request to bid on the property on his own behalf; and that Mr. Hiltz directed the foreclosure attorney to issue revenue stamps indicating that the property had been purchased at full market value of $50,000 when it had actually been purchased for $10,000. The Commission also found that Mr. Hiltz reimbursed the association’s foreclosure attorney fees in 2010 following the sale but did not pay the $8,663 dues owed by the foreclosed owner until January 2012.

HILTZ MANAGEMENT CO. INC. (Charlotte) – By Consent, the Commission suspended the firm license of Hiltz Management Co. for a period of two years effective April 1, 2014. The Commission then stayed the suspension for a probationary period of three years. The Commission found that the broker-in-charge of Hiltz Management Co., a property management firm, managed a homeowners’ association and was authorized by the association to initiate foreclosure proceedings against an owner for non-payment of dues; that the firm’s broker-in-charge discovered recording issues which could prevent the mortgage deed of trust from attaching to the subject property and that the firm’s broker-in-charge failed to disclose this fact to his client, leading the association to approve the firm’s broker-in-charge’s request to bid on the property on his own behalf; and that the firm’s broker-in-charge directed the foreclosure attorney to issue revenue stamps indicating that the property had been purchased at full market value of $50,000 when it had actually been purchased for $10,000. The Commission also found that the firm’s broker-in-charge reimbursed the association’s foreclosure attorney fees in 2010 following the sale but did not pay the $8,663 dues owed by the foreclosed owner until January 2012.

STANLEY BERNARD JONES (Raleigh) – Following a hearing, the Commission suspended the broker license of Mr. Jones for a period of two years effective September 24, 2013. Three months of the suspension were active with the remainder stayed through the end of the suspension period on certain conditions to be satisfied by June 1, 2014. The Commission found that Mr. Jones failed to retain adequate trust account records and failed to safeguard trust monies in his possession; that Mr. Jones performed activities constituting the unauthorized practice of law, including the creation and amendment of a real estate contract; that Mr. Jones commingled his principal’s money with his own and failed to deposit money he received in a fiduciary capacity into a trust account; that Mr. Jones failed to obtain a written property management agreement with his landlord client; that Mr. Jones advertised properties for lease as a provisional broker without the consent of his BIC; that Mr. Jones failed to retain records of rental transactions; and that Mr. Jones operated a sole proprietorship without designating a BIC.

ASHLEY PARKER LANCE (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Lance for a period of two years effective April 1, 2014. The Commission then stayed the suspension on certain conditions. The Commission found that Ms. Lance, acting as an associate broker of her real estate brokerage firm and under the direct supervision and orders of her broker-in-charge, met with clients without providing or reviewing the Working With Real Estate Agents brochure. The Commission also found that Ms. Lance utilized form lease with option to purchase contracts that violate North Carolina law and Commission rules.

PETER C. MACE (Pinehurst) – By Consent, the Commission suspended the broker license of Mr. Mace for a period of six months effective April 1, 2014. The Commission then stayed the suspension on certain conditions. The Commission found that Mr. Mace, acting as a real estate developer and real estate broker, failed to disclose material facts related to the sale of residential property in which he had an ownership interest.

NANCY BRADY REALTY, INC. (Pinnacle) – The Commission accepted the voluntary surrender of the broker license of Nancy Brady Realty for a period of five years effective March 14, 2014. The Commission dismissed without prejudice allegations that Nancy Brady Realty violated provisions of the Real Estate Law and Commission rules. Nancy Brady Realty neither admitted nor denied misconduct.

PEARTREE PROPERTY MANAGEMENT (Elizabeth City) – The Commission accepted the permanent surrender of the firm license of Peartree Property Management effective April 16, 2014. The Commission dismissed without prejudice allegations that Peartree Property Management violated provisions of the Real Estate Law and Commission rules. Peartree Property Management neither admitted nor denied misconduct.

RENTAL PROPERY MANAGEMENT, INC. (Wilson) – By Consent, the Commission suspended the firm license of Rental Property Management for a period of three years effective March 1, 2014. The Commission then stayed the suspension for a probationary period of three years on certain conditions. The Commission found that the broker license of Rental Property Management went on inactive status in July 2011 and the firm continued operating without a designated broker-in-charge and qualifying broker until March 2012; that the Commission conducted an audit of the firm’s trust accounts and found a shortage of $21,300 in the tenant security deposit account and $11,800 in the rental accounts; that the firm failed to maintain rents and tenant security deposits in a trust account; that the firm failed to maintain trust account records in compliance with the Real Estate License Law and Commission rules; that the firm engaged in deficit spending; and that in March 2013, the firm again engaged in brokerage services without a designated broker-in-charge or qualifying broker after its qualifying broker and broker-in-charge left the company.

MARIO ROBERTO RUIZ-CEA (Kernersville) – By Consent, the Commission reprimanded Mr. Ruiz-Cea effective Mach 1, 2014. The Commission found that Mr. Ruiz-Cea represented a buyer client in a real estate transaction, but failed to enter into a written buyer agency agreement with his buyer client; that Mr. Ruiz-Cea failed to provide his client with the Working With Real Estate Agents brochure; that in April 2013, Mr. Ruiz-Cea submitted an offer to purchase on behalf of his buyer client for a property, the seller responded with a counter offer, and Mr. Ruiz-Cea affirmed his buyer client’s acceptance without first obtaining his client’s signature on the contract.

DEBRA C. SWAIN (Elizabeth City) – The Commission accepted the permanent surrender of the broker license of Ms. Swain effective April 16, 2014. The Commission dismissed without prejudice allegations that Ms. Swain violated provisions of the Real Estate Law and Commission rules. Ms. Swain neither admitted nor denied misconduct.

CRAIG STEVEN STURDIVANT (Sanford) – By Consent, the Commission suspended the broker license of Mr. Sturdivant for a period of six months effective March 1, 2014. The Commission then stayed the suspension on certain conditions. The Commission found that Mr. Sturdivant acted as the president of a real estate brokerage and property management firm; that a buyer entered into a 20-year contract for deed in July 2008 to purchase a property from the firm; that the buyer paid the firm a $10,000 down payment and $1,000 monthly payments; that the lender foreclosed on the property in July 2011; and that another agent in the firm continued to collect the monthly payments from the buyer until January 2012.

This article came from the May 2014-Vol45-1 edition of the bulletin.