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Disciplinary Actions

STEVEN OLOUGHLIN MORGAN (HUNTERSVILLE) – The Commission accepted the voluntary surrender of the real estate license of Morgan, effective June 19, 2024. The Commission dismissed without prejudice allegations that Morgan violated provisions of the Real Estate License Law and Commission Rules. Morgan neither admitted nor denied misconduct.

STEVEN ERIC BEAM (CHARLOTTE) – By Consent, the Commission suspended the broker license of Beam for a period of 3 years, effective May 1, 2024. The Commission then stayed the suspension following a 1.5-month active period upon certain conditions. The Commission found that Beam, acting as qualifying broker/broker-in-charge, failed to personally retain a copy of the trust account and transaction records after ceasing property management services for his firm, resulting in an inability to conduct a timely Commission audit.

JEFFREY DUSTIN BENNETT (BENSON) – By Consent, the Commission suspended the broker license of Bennett for a period of 12 months, effective June 19, 2024.  The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Bennett represented a seller in the subject transaction and negligently misrepresented the acreage of the subject property. 

DIANA CABRERA BLANCO (CHARLOTTE) – By Consent, the Commission suspended the broker license of Blanco for a period of 6 months, effective June 17, 2024.  The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Blanco, acting as the listing agent, advertised a property as “remodeled top to bottom” but, prior to listing, failed to discover and disclose, with particularity, beyond what she personally observed, what renovations were completed, whether permits should have been obtained, or whether licensed contractors were required or, if they were required, used.

RE III INC (JACKSONVILLE) – By Consent, the Commission reprimanded the firm effective June 17, 2024. The Commission found that a broker affiliated with the firm and acting as buyer agent failed to notice that the subject property was listed on MLS as being on city sewer but was marked as being on septic on the Residential Property and Owner Association Disclosure Statement. The broker also failed to notice that the appraisal also showed the property as being on septic. At closing, a different broker affiliated with the firm discovered the discrepancy and advised the buyer to have a septic inspection before recording, after which, the buyer closed the transaction. The buyer agent paid for the buyer’s septic inspection.

AMY ELIZABETH DEMARS (JACKSONVILLE) – By Consent, the Commission reprimanded Demars effective June 17, 2024. The Commission found that Demars acted as broker-in-charge of a provisional broker who represented a buyer. The broker failed to notice that the subject property was listed on MLS as being on city sewer but was marked as being on septic on the Residential Property and Owner Association Disclosure Statement. The broker also failed to notice that the appraisal also showed the property as being on septic. At closing, a different broker affiliated with the firm discovered the discrepancy and advised the buyer to have a septic inspection before recording, after which, the buyer closed the transaction. The provisional broker paid for the buyer’s septic inspection.

CHRISTI HILL INC (JACKSONVILLE) – By Consent, the Commission reprimanded the firm effective June 17, 2024. The Commission found that a broker affiliated with the firm represented a seller. The broker, as listing agent, received a home inspection report and additional information from a buyer under contract regarding a leaking bathroom drainpipe, wobbly toilet, and damaged subfloor. The contract terminated after the parties could not come to an agreement on repairs and the listing agent failed to update the listing or otherwise disclose the material facts to subsequent buyers.

CHRISTI LYN HILL (JACKSONVILLE) – By Consent, the Commission reprimanded Hill effective June 17, 2024. The Commission found that Hill acted as broker-in-charge of a broker who represented a seller. The broker, as listing agent, received a home inspection report and additional information from the buyer under contract regarding a leaking bathroom drainpipe, wobbly toilet, and damaged subfloor. The contract terminated after the parties could not come to an agreement on repairs and the listing agent failed to update the listing or otherwise disclose the material facts to subsequent buyers.

RALEIGH REALTY INC (RALEIGH) – By Consent, the Commission reprimanded the firm effective June 17, 2024. The Commission found that an affiliated broker acted as buyer agent on behalf of a client for whom he was also acting as listing agent for the sale of the client’s property. The buyer agent failed to advise his client that the contract did not include a contingency for the sale of his current home, failed to advise or request an extension of the due diligence period when repairs has not been agreed on, and failed to ensure that a second extension had been signed by the seller. The client was reimbursed the $20,000 due diligence fee and the firm instituted new training and written policies regarding contingent sales.

JERRY DANIEL ROBTOY (CARY) – By Consent, the Commission suspended the broker license of Robtoy for a period of 2 years, effective June 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Robtoy, acting as both listing agent and buyer agent for a client, failed to ensure that a written contingency for the sale of the client’s home. Robtoy failed to advise or request an extension to the due diligence period when repairs had not yet been agreed upon and failed to ensure a second amendment to the contract was signed by all parties. The client lost a $20,000 non-refundable due diligence fee when the purchase transaction did not close. The client was reimbursed the $20,000 due diligence fee.

HEATHER DANIELLE STONE (HICKORY) – By Consent, the Commission reprimanded Stone effective June 20, 2024. The Commission found that Stone represented the seller of the subject property that was encumbered by a 99-year lease to a neighbor of the property.  The seller provided Stone with a lease termination that was purportedly signed by the lessee.  In addition, in order to convey clear title to the property, Stone witnessed the seller’s ex-wife and current husband sign a general warranty deed.  Stone then caused her husband, who was then a notary public, to falsely notarize these two documents.

JONATHAN W WASHBURN (WILMINGTON) – The Commission accepted the voluntary surrender of the real estate license of Washburn, effective June 20, 2024. The Commission dismissed without prejudice allegations that Washburn violated provisions of the Real Estate License Law and Commission Rules. Washburn neither admitted nor denied misconduct.

WILLIAM HOWARD WEST V (WINSTON SALEM) – By Consent, the Commission suspended the broker license of West for a period of 12 months, effective June 15, 2024. The Commission found that West, acting as a listing agent, relied on their seller-client’s representation that the subject property was partially on city sewer and partially on septic following a 1970s addition. The elderly seller had not lived in the property for several years. West contacted the county and asked about utilities but failed to discover and accurately disclose that the property was fully on septic and instead had a city water/well split. The buyer of the subject property discovered that discrepancy only after closing.

DAVID A ZELINSKI (JACKSONVILLE) – By Consent, the Commission suspended the broker license of Zelinski for a period of 30 months, effective June 17, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Zelinski acted as listing agent for a property for which he had previously acted as property manager. The seller represented on the Residential Property and Owner Association Disclosure Statement that the property was on septic and was permitted for four bedrooms. Zelinski’s assistant entered the property as being on city sewer on MLS and Zelinski, while reviewing, failed to notice the misrepresentation. Zelinski also failed to obtain the septic permit that showed the property was permitted for three bedrooms. At closing, the buyer discovered the property was on septic and that the permit was for three bedrooms. The parties agreed to delay the settlement until the buyer had the opportunity to inspect and consider their options. The buyer’s agent paid for a septic inspection and Zelinski paid for the septic system to be pumped and distribution box and filter to be cleaned and the buyer, thereafter, approved recording the deed.

Current Stats: Monthly Licensee Count as of June 1, 2024

Reporting Criminal Convictions and Occupational Licensing Discipline

Have you been disciplined by an occupational licensing board in North Carolina or another state?  Have you been convicted of a felony or misdemeanor offense?  Do you know of a broker who has?

Commission Rule A.0113 requires that a broker, including an inactive broker, report criminal convictions and disciplinary actions by governmental and occupational licensing agencies by filing Form REC 2.09 with the Commission within 60 days of final judgment, order, or disposition of:

The Criminal Conviction / Disciplinary Action Reporting Form is available on the Commission’s website at www.ncrec.gov under Forms or upon request to the Commission. Make sure to fully complete the form.  Rule A .0113 requires a broker to provide a description of any criminal convictions or disciplinary actions.  You will also note that Form 2.09 prompts a broker to upload certified copies of any judgment or order in the case.  Providing a copy of any such order or disciplinary action with the notification form will only help to expedite the Commission’s review and investigation of the matter, if warranted.

BICs, did you know?

The monthly eBulletin is intended to be a valuable and timely resource for all NC real estate licensees.

As a BIC, you can use some of the articles/videos during your office trainings to ensure brokers adhere to law and rule changes, competently practice brokerage to prevent disciplinary issues, and participate in educational opportunities. The eBulletin is considered by Regulatory Affairs as a valuable resource and an educational tool.

Help! How do I reinstate my Instructor Approval?

Did you forget to renew your instructor approval before June 30, 2024?  Do you plan to teach Prelicensing, Postlicensing, or the Update course for a certified Education Provider?

If so, you must have an “active” instructor approval. Therefore, in order for the Commission to reinstate your instructor approval that has been expired for less than six months, you must submit the renewal application per Rule 58H .0306(b).

Prior to submitting an electronic application for renewal of approval, as an instructor, you must have completed six hours of an instructor educational program. If you have not yet completed this required education, please view our Guidelines for Instructional Educational Requirement (Form REC 3.78) for a list of options to satisfy this requirement. Once you have completed the required education, you will then need to log in to the Instructor Dashboard to access the renewal application.

Pursuant to subsection(c) of Rule 58A .0306, if an instructor approval has been expired for more than six months, the former instructor shall file an application for original approval pursuant to Rule 58H .0302.

If you have any questions regarding reinstating your instructor approval, please visit the Commission’s website.

Staff Appearances

Miriam Baer, Executive Director, spoke at NC REALTORS Risk Management Committee Meeting on June 3.

Minerva Mims, Diversity, Equity, and Inclusion (DEI) Officer, spoke at Raleigh Regional Association of REALTORS® on June 20.

Bruce Rinne, Information Officer, spoke at Carolina Smokies Association of REALTORS®, Inc. on June 20.

Leslie Schwartz, Information Officer, spoke at Goldsboro Association of REALTORS® on June 20.

Bruce Rinne, Information Officer, spoke at 220 Agents on June 27.

Diversity, Equity, and Inclusion

July is Disability Pride Month, a month dedicated to honoring and celebrating the history, experiences, achievements of disabled people. Disability Pride is recognized in the month of July to commemorate the passage of the Americans with Disabilities Act (ADA), a law that prohibits discrimination based on disability, in July 1990.

People with disabilities represent the largest and most diverse minority group, with individuals of various abilities, ages, races, ethnicities, religions, and social-economic backgrounds. According to 2021 data from the Centers for Disease Control and Prevention (CDC), 29% of adults in North Carolina have a disability, and according to the National Fair Housing Alliance’s (NFHA) 2023 Fair Housing Trends Report, over 53% of discrimination complaints are based on disability.

To properly serve consumers with disabilities it is important to understand their needs, recognizing that not all disabilities are created equally, ask questions, adjust your thinking, and do a bit of research.  As a real estate professional, you have a legal and ethical obligation to uphold fair housing laws; to do this you must be aware of the applicable laws (ADA and Fair Housing Act) that play a vital role in shaping an equitable and inclusive real estate environment.

By understanding the unique needs and challenges faced by consumers with disabilities and the guiding laws, real estate professionals can provide the necessary support to ensure a positive consumer experience and avoid any potential discrimination claims.

To learn more about Disability Pride Month or other disability related resources refer to the links below:

Americans with Disabilities Act Title III Regulations | ADA.gov

Better Service for Clients With Disabilities (nar.realtor)

Disability & Health U.S. State Profile Data: North Carolina | CDC

Fair Housing Project — A Project of Legal Aid of North Carolina (fairhousingnc.org)

Housing for People with Disabilities & Their Families | The Arc

Housing Rights – DRNC (disabilityrightsnc.org)

Why and How to Celebrate Disability Pride Month – The Arc

2023-Trends-Report-Final.pdf (nationalfairhousing.org)

Tech Corner: How do I translate the Commission’s website and Forms

Is English a second language for your clients or a consumer? Did you know that the Commission’s website can be translated into multiple languages?

Link: https://share.synthesia.io/25d69e92-4f29-4e59-91ed-c35377085508

Reactivating after CE Deficiency

Link: https://share.synthesia.io/b92c0c13-28f7-4684-8f75-c9db29e84bd1

Do you need to reactive your real estate license?

The 2024-2025 Update Course is here!

The Commission’s GENUP-General Update and BICUP-Broker-in-Charge Update courses for 2024-2025 are available beginning on July 1, 2024, for all licensees.

The 2024-2025 GENUP course topics are:

The 2024-2025 BICUP course topics are:

A statewide continuing education course schedule is provided on the Commission’s website (www.ncrec.gov) under the Education menu. Licensees may search for courses by:

Licensees may take the Update course anytime between July 1, 2024 – June 10, 2025. However, the Commission encourages licensees to take the course as early as possible during the license year, to stay up-to-date on law and rule changes.

Per Commission Rule 58A .1702, a licensee must take eight (8) hours of continuing education (CE) each year to maintain an active license, as follows:

NOTE: A broker with BIC-Eligible status who takes the General Update course, and an elective will maintain an active license but will lose their BIC/BIC-Eligible status.

If you have questions about the CE requirement, please visit the Commission’s website.