(More available on the Commission’s website, www.ncrec.state.nc.us)
| Q | How much real estate experience do I need to have the “provisional” status removed from my broker license? |
| A | For at least four of the last six years, you must have been engaged on a full-time (or equivalent part-time) basis in activities for which a real estate license is required. |
| Q | I have a real estate salesperson license and work full-time as an assistant for a very busy broker. Can I claim my experience as a “licensed assistant” as qualifying experience? |
| A | Yes, so long as your work included activities for which a real estate license is required. |
| Q | I work as a leasing agent for an apartment complex. I have a real estate salesperson license even though a license is not required for what I do. Can I claim this experience as qualifying experience? |
| A | No, because the work you perform does not require a real estate license. |
| Q | I have a real estate salesperson license and work as an office manager/bookkeeper for a real estate firm. Does this count as qualifying experience? |
| A | No. Working for a real estate firm as an office manager, bookkeeper, secretary or in any other ministerial capacity does not qualify because a real estate license is not required to perform the tasks and duties associated with these positions. |
| Q | If called upon by the Real Estate Commission to verify my experience, what documentation should I have? |
| A | In order of preference, written statements from your current and/or former brokers-in-charge or other firm officials giving the dates of your affiliation with the firm(s) and your activities there; and/or transaction documents from the period for which you are requesting credits; and/or a list of transactions you participated in during this period including dates, types of transactions, the parties and any other agents in the transactions, and your role in them. |
| Q | I have been a broker-in-charge for several years and took the Broker-In-Charge Course within the past five years. Do I have to retake it after April 1, 2006? |
| A | No, unless you have a “break in service” as broker-in-charge. However, you must take the Broker-In-Charge Annual Review Course each year beginning with the July 2006 – June 2007 license period. |
| Q | What is meant by a “break in service”? |
| A | If, at any time, you are NOT designated a broker-in-charge, you have experienced a “break in service”. This would occur if you were replaced as broker-in-charge of a firm or office. Or if you ceased being broker-in-charge of an office and then later began serving as broker-in-charge at another firm or office (i.e., the changes were notsimultaneous). You would also experience a break in service if you fail to renew your license, or your license is made inactive because you did not take the annual Broker-In-Charge Annual Review Course or your continuing education Update Course. These are some examples of when a break in service will occur. If you then wish to be re-designated as a broker-in-charge, you must satisfy the new broker-in-charge education and experience requirements. |
This article came from the March 2006-Vol36-3 edition of the bulletin.
Interactive online forms are being added to the Commission’s website, www.ncrec.state.nc.us by April 1. The first form to be available is the Commission’s Form 2.08 – Notification of Salesperson (Provisional Broker) Supervision/Notification of Broker Affiliation.
This form is used by brokers-in-charge to notify the Commission of salesperson (provisional broker) supervision and of broker affiliation.
At the website, click on Brokers-in-Charge from the choices on the left side of the home page. Then, click on the icon to open the online Notification of Salesperson Supervision(Provisional Broker)/Notification of Broker Affiliation (Form 2.08) form. Complete the form and then click on “Submit”.
The Broker-in-Charge and the salesperson/provisional broker will both receive email confirmations that the form has been sent to the Commission. Once the form has been received and processed by the Commission, a Notice of Record Change will be generated and mailed to the broker-in-charge and licensee.
The paper version of the form will remain available under Licensee Forms on the forms page, and then clicking on “Notification of Salesperson/Provisional Broker supervision” or “Notification of Broker Affiliation” to open the file and print the document.
As noted in the page one article on changes to the license law (continued on pages 6, 7 and 8) an interactive form to certify experience to qualify for a change from “provisional broker” to “broker” will be available for your use on April 1.
More interactive forms will be added in the future.
This article came from the March 2006-Vol36-3 edition of the bulletin.
By Emmet R. Wood
Director, Audits and Investigations
Does your real estate company manage a number of rental units or property owner associations? If so, do you maintain a list of vendors approved to provide products and services to them?
Special problems are posed when a real estate company pays various vendors to perform repairs on rental properties or to maintain the common elements of property owner associations. Consider, for example, the following scenario:
A real estate company that manages a number of property owner associations employs a bookkeeper who is authorized to write checks to pay the various vendors. Unknown to the company the bookkeeper obtains a post office box in the name of a fictitious maintenance company and then proceeds to embezzle money from the property owner associations by paying the fictitious company for work that was never performed.
In this real-life example of a case that came before the Real Estate Commission, the embezzlement may have continued to go undetected had the bookkeeper’s supervisor not noticed that checks written on the bank account of the property owners association were in whole dollar amounts ($500, $400, etc.) and that the vendor’s address was a post office box.
Some basic internal controls could likely have prevented the embezzlement. The first internal control might have been for the company to maintain a vendor list with the vendors being approved by someone other than the person authorizing repairs. Another internal control would be for the supervisor of the bookkeeper or accounting clerk to monitor the vendor list for additions and deletions.
And always be alert to general warning signs that someone may be embezzling from your company. Is an employee living beyond his or her means? Do you have an employee whose personal problems suddenly disappear? Do you have a vendor with the same address or telephone number as an employee? Do you have a vendor whose address is a post office box only or does not have a telephone number? Are there missing invoices or other documentation?
Be on the look out for anything that appears suspicious or that simply doesn’t make sense.
This article came from the March 2006-Vol36-3 edition of the bulletin.
JAMES T. ANDERSON (Fayetteville) – The Commission revoked the broker license of Mr. Anderson effective November 10, 2005. The Commission found that Mr. Anderson solicited the seller of a property to falsely induce a lender to make a loan secured by a first mortgage on the property by creating a false impression of equity or value in the secured property. The Commission also found that Mr. Anderson failed to deposit and maintain on deposit in a designated trust or escrow account, account for, or remit tenant security deposits collected on apartments for the owner. The Commission further found that Mr. Anderson unlawfully converted to his own use security deposits collected for the owner from apartment tenants.
BRENDA F. ARNOLD (Sunset Beach) – By Consent, the Commission suspended the broker license of Ms. Arnold for a period of one year effective July 1, 2005. The Commission found that Ms. Arnold, a licensed residential appraiser, was disciplined by the North Carolina Appraisal Board in 2003 as the result of a 2002 appraisal and waited more than 60 days to report this sanction to the Commission. The Commission also found in a separate transaction that Ms. Arnold, acting as a broker in a dual agency relationship, failed to complete the required agency agreements and deliver the Working With Real Estate Agents brochure to either buyer or seller.
DONAVON D. BARNES (Charlotte) – By Consent, the Commission suspended the salesperson license of Mr. Barnes for a period of 60 days effective December 15, 2005. The Commission then stayed the suspension for a probationary period of 60 days. The Commission found that Mr. Barnes failed to report three convictions for Driving While License Revoked on his 1994 salesperson license application and, after licensing as a salesperson, failed to report other convictions.
RICHARD W. BEALS (Wilmington) – By Consent, the Commission reprimanded Mr. Beals effective January 10, 2006. The Commission found that Mr. Beals, a licensed real estate broker acting as a buyer agent, knew that his principals desired to purchase a single family residence for occupancy by four unrelated college students. This violated the county zoning ordinance limiting occupancy to no more than three unrelated persons. Mr. Beals negligently failed to inform his principals that their proposed use was not permitted under the ordinance.
SANDRA A. BEALS – By Consent, the Commission reprimanded Ms. Beals effective January 10, 2006. The Commission found that Ms. Beals, a licensed real estate broker acting as a buyer agent, knew that her principals desired to purchase a single family residence for occupancy by four unrelated college students. This violated the county zoning ordinance limiting occupancy to no more than three unrelated persons. Ms. Beals negligently failed to inform her principals that their proposed use was not permitted under the ordinance.
CHRIS T. BELIN (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Belin for a period of one year effective February 1, 2006. One month of the suspension was active with the remainder stayed for a probationary period of 11 months. The Commission found that Mr. Belin became aware that his buyer clients intended to break into a property to place furniture and other items in the residence prior to closing and failed to stop them or to immediately inform the listing agent or his broker-in-charge of the buyers’ actions. The Commission also found that the buyers caused certain damage to the property and never closed the transaction.
RHONDA J. BENFIELD (Mountain City, TN) – By Consent, the Commission suspended the salesperson license of Ms. Benfield for a period of one year effective January 1, 2006. Three months of the suspension were active with the remainder stayed for a probationary period of one year. The Commission found that Ms. Benfield, whose license has been on inactive status since November 2004, was convicted in July 2004 of communicating threats and injury to real property in connection with an incident that occurred in a local attorney’s office. The Commission also found that Ms. Benfield was ordered to serve 45 days in jail, but the sentence was suspended and she was instead placed on unsupervised probation for 18 months, ordered to pay fines and costs, and ordered not to be on the second floor of the office building in which the incident occurred.
CAPPS & ASSOCIATES, INC. (Raleigh) – By Consent, the Commission accepted the voluntary surrender of the firm license of Capps & Associates for a period of two years effective October 13, 2005. The Commission dismissed without prejudice allegations that Capps & Associates had violated provisions of the Real Estate License Law and Commission rules. Capps & Associates neither admitted nor denied misconduct.
CYNTHIA H. CAPPS (Raleigh) – By Consent, the Commission accepted the voluntary surrender of the broker license of Ms. Capps for a period of two years effective October 13, 2005. The Commission dismissed without prejudice allegations that Ms. Capps had violated provisions of the Real Estate License Law and Commission rules. Ms. Capps neither admitted nor denied misconduct.
REBA M. CARDWELL (Lenoir) – The Commission revoked the broker license of Ms. Cardwell effective January 1, 2006. The Commission found that Ms. Cardwell failed to provide records at the request of the Commission; failed to deposit monies received from a property owner into a designated trust account, instead unlawfully depositing the money into her operating account; and failed to produce records or to account for the funds of others held by her.
JAMES J. CASTILLO (Fayetteville) – By Consent, the Commission suspended the salesperson license of Mr. Castillo for one year effective October 1, 2006. The Commission found that Mr. Castillo, acting as both a listing and buyer agent in a transaction, arranged for $50,000 in private financing for the buyers, and told the lender it would be a recorded second mortgage, but failed to facilitate or insure the recording of the Deed of Trust. The buyers later declared bankruptcy and the loan was unsecured.
JEFFREY E. CHILDS (Charlotte) – By Consent, the Commission reprimanded Mr. Childs effective April 1, 2006. The Commission found that Mr. Childs, between 1997 and 2002, was broker-in-charge of a real estate brokerage firm where a broker associate maintained a separate trust account and that the associate did not deposit monies into the firm’s trust account. The Commission also found that Mr. Childs was unable to provide complete records of the associate’s trust account. The Commission noted that the account was closed in 2002 and no consumers were harmed as a result.
TERESA A. CLONTZ (Carolina Beach) – By Consent, the Commission ordered the revocation of the broker license of Ms. Clontz with issuance of a sales license with conditions, effective December 1, 2005. The Commission found that Ms. Clontz, while engaged to administer a vacation rental business, failed to maintain trust account records in the manner required by Commission rule. The Commission also found that Ms. Clontz, after leaving that employment and opening a new firm where she was broker-in-charge, failed to maintain the vacation rental trust account and records in the manner required by Commission rule.
DAVID W. COMBS (Rocky Mount) – By Consent, the Commission reprimanded Mr. Combs effective July 1, 2005. The Commission found that Mr. Combs, as broker-in-charge of a real estate firm, failed to maintain records sufficient to identify the ownership of all funds belong to others in a manner such as to create a clear audit trail, resulting in a shortage. The Commission noted that Mr. Combs replaced the funds, balanced the account and corrected record-keeping deficiencies.
LAURIE E. DINUNZIO (Manteo) – By Consent, the Commission reprimanded Ms. Dinunzio effective October 13, 2005. The Commission found that Ms. Dinunzio, broker-in-charge of a licensed real estate firm, failed to maintain the trust account records for funds received at the office in the manner required by Commission rules. The Commission also found that Ms. Dinunzio allowed the firm to use rental management and lease agreements that did not comply with the Vacation Rental Act. The Commission noted that Ms. Dinunzio cooperated in correcting these problems.
CARLTON ANDRÉ DOCKERY (Charlotte) – By Consent, the Commission suspended the salesperson license of Mr. Dockery for one year effective November 2, 2005. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Dockery failed to disclose on his 1998 salesperson application a conviction for driving without insurance and two civil judgments.
SOLOMON R. ELLIS, JR. (Research Triangle Park) – By Consent, the Commission suspended the broker license of Mr. Ellis for a period of one year effective June 1, 2005. The Commission then stayed the suspension for a probationary period of two years. The Commission found that Mr. Ellis, as principal broker and broker-in-charge of a real estate brokerage firm, failed to maintain his trust account records in compliance with Commission rules. The Commission noted that Mr. Ellis engaged the services of a certified public accountant to assist in bringing his records into compliance.
MARGARET ROSE H. ENGLISH (Gold Hill) – The Commission accepted the permanent voluntary surrender of the salesperson license of Ms. English effective November 1, 2005. The Commission dismissed without prejudice allegations that Ms. English had violated provisions of the Real Estate License Law and Commission rules. Ms. English neither admitted nor denied misconduct.
STEVEN D. EVANGELIST (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Evangelist for a period of two years effective September 1, 2005. The Commission then stayed the suspension for a probationary period of two years. The Commission found that Mr. Evangelist, a real estate broker and licensed appraiser, failed to disclose to the Commission in a timely manner a disciplinary action by the North Carolina Appraisal Board over allegations that he had used inappropriate comparable sales in appraisals. The Commission noted that Mr. Evangelist cooperated with the investigation in this matter.
WALTER R. FERGUSON, JR. (Sanford) – By Consent, the Commission revoked the broker license of Mr. Ferguson effective November 1, 2005. The Commission found that Mr. Ferguson leased property and accepted rent payments as property manager without the written authority of the legal owner and failed to maintain books and records in conformity with Commission rule. The Commission also found that Mr. Ferguson failed to disclose to the Commission as required by Commission rule a conviction for two counts of misdemeanor embezzlement and the loss of his insurance license from the North Carolina Department of Insurance.
GREGORY P. FULFORD (Jacksonville) – By Consent, the Commission suspended the broker license of Mr. Fulford for a period of two years effective January 1, 2006 or until such time as Mr. Fulford has satisfied his debt to the Internal Revenue Service, whichever is sooner. The Commission found that in August, 2001, the Internal Revenue Service obtained a tax lien against Mr. Fulford in the amount of approximately $47,766.46 and arising from the failure of Mr. Fulford’s business and subsequent inability to pay federal income taxes when due.
JUDY DELORES GARRETT (Winston-Salem) – By Consent, the Commission reprimanded Ms. Garrett effective November 2, 2005. The Commission found that Ms. Garrett failed to disclose a 1991 DWI conviction on her 2000 salesperson license application.
WALTER L. GORDY, JR. (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Gordy for a period of one year effective July 1, 2005. The Commission found that Mr. Gordy closed several transactions referred to him by a firm that Mr. Gordy knew was not licensed and assisted the firm in collecting a fee for brokerage services during the time the firm was unlicensed and the principal of the firm did not hold an active real estate license.
DENNIS L. GREENE (Boone) – By Consent, the Commission revoked the broker license of Mr. Greene effective October 20, 2005. The Commission found that Mr. Greene, who conducted a property management business, closed his business in August 2004, and was unable to provide most of the trust account records requested by the Commission; bank statements indicated numerous overdraft charges and negative balances between May and July 2004 in his trust account. The Commission noted that Mr. Greene did reimburse an owner’s rent proceeds and security and pet deposits after she complained.
BEVERLY A. HATHCOCK (Charlotte) – By Consent, the Commission reprimanded Ms. Hathcock effective April 1, 2006. The Commission found that Ms. Hathcock, as a licensed broker with a real estate brokerage firm between 1997 and 2002, maintained her own separate trust account although she was not the broker-in-charge and did not deposit trust monies into the firm’s trust account. The Commission also found that Ms. Hathcock was unable to produce many records for her trust account. The Commission noted that Ms. Hathcock began using the firm’s trust account in 2002 and that no consumers were harmed as a result of her conduct.
TERRY W. LISK (Supply) – By Consent, the Commission revoked the salesperson license of Mr. Lisk effective December 12, 2005. The Commission found that Mr. Lisk was convicted of two felony counts of Indecent Liberties with a Minor, sentenced to two consecutive sentences of 16-20 months in custody, suspended for 48 months of supervised probation on various conditions.
ZAN P. LOVE (Charlotte) – By Consent, the Commission suspended the salesperson license of Mr. Love for a period of one year effective December 15, 2005. The Commission then stayed the suspension for a probationary period of one year. The Commission found that, while acting as a seller subagent, Mr. Love failed to disclose to the buyers or buyers’ agent complete information concerning the use of a substantial portion of their lot for storm water drainage. The Commission noted that Mr. Love cooperated with the Commission’s investigation and entered into a civil settlement with the buyers. Mr. Love did not admit or deny, but did not contest the Commission findings.
KAREN L. MAREADY (Charlotte) – By Consent, the Commission reprimanded Ms. Maready effective November 1, 2005. The Commission found that Ms. Maready failed to meet Real Estate License Law and Commission requirements in the operation of an Internet website that advertised homes for lease with an option to purchase. The Commission noted that no consumers were harmed as a result.
JAMES A. MOTLEY (Raleigh) – By Consent, the Commission revoked the broker license of Mr. Motley effective January 1, 2006. The Commission found that Mr. Motley, as broker-in-charge and sole proprietor of a real estate brokerage office, could not account for the funds of others held by him as a real estate broker.
RTA ASSOCIATES, INC. (Research Triangle Park) – By Consent, the Commission suspended the firm license of RTA Associates for a period of one year effective June 1, 2005. The Commission then stayed the suspension fo a probationary period of two years. The Commission found that RTA Associates, a real estate broker firm, failed to maintain its trust account records in compliance with Commission rules. The Commission noted that the firm engaged the services of a certified public accountant to assist in bringing its records into compliance.
MARSHALL STEWART, III (Raleigh) – The Commission accepted the voluntary surrender of the broker license of Mr. Stewart for a period of one year effective December 12, 2005. The Commission dismissed without prejudice allegations that Mr. Stewart had violated provisions of the Real Estate License Law and Commission rules. Mr. Stewart neither admitted nor denied misconduct.
THE COMBS COMPANY, INC. (Rocky Mount) – By Consent, the Commission reprimanded The Combs Company. The Commission found that The Combs Company failed to maintain records sufficient to identify the ownership of all funds belong to others in a manner such as to create a clear audit trail, resulting in a shortage. The Commission noted that the broker-in-charge of The Combs Company replaced the funds, balanced the account and corrected record-keeping deficiencies.
WANDA S. WHEELER (Carrboro) – By Consent, the Commission revoked the broker license of Ms. Wheeler effective December 1, 2005. The Commission found that Ms. Wheeler, as broker-in-charge of a real estate brokerage firm, failed to make trust account books and records available for inspection upon Commission request.
WHEELER PROPERTIES (Chapel Hill) – By Consent, the Commission revoked the firm license of Wheeler Properties effective December 1, 2005. The Commission found that Wheeler Properties failed to make trust account books and records of property owner clients available for inspection upon Commission request.
H. HARPER WHITLEY, JR. (Smithfield) – By Consent, the Commission reprimanded Mr. Whitley effective October 13, 2005. The Commission found that Mr. Whitley, as broker-in-charge, failed to have the monthlyreconciliations of trust accounts under his control performed as required by Commission rule and, as a result, the ownership of $16,000 in his trust accounts could not be determined. The Commission noted that this money has been paid to the Escheat Fund.
This article came from the March 2006-Vol36-3 edition of the bulletin.
Mary Frances Whitley, Director of Administration, has been elected President-Elect of the Association of Real Estate License Law Officials (ARELLO). The international organization promotes better administration and enforcement of real estate license and regulatory laws by its members.
This article came from the October 2005-Vol36-2 edition of the bulletin.
Matthew J. “Rick” Watts of Fayetteville has been re-elected Chairman of the North Carolina Real Estate Commission for a second consecutive term and Melvin L. “Skip” Alston of Greensboro and Raymond A. “Buddy” Bass, Jr., of Fayetteville have been elected Vice Chairmen, it was announced by Phillip T. Fisher, Executive Director.
Watts is Broker Associate and Senior Sales Executive with Coldwell Banker United Realty in Fayetteville.
Watts entered the real estate business in 1992 after retiring from a 30-year career with the U. S. Army where he achieved the rank of Command Retention Sergeant Major for the XVIII Airborne Corps.
Among numerous honors, Watts holds the U.S. Army Legion of Merit, the highest peacetime award for military achievement and honorable service, and Governor Easley recently named him to the Order of the Long Leaf Pine for his service toNorth Carolina.
He is a member of the the Airborne and Special Operations Museum Foundation Board and past member of the Executive Committee of the National Association for the Advancement of Colored People, among other organizations.
Watts and his wife, Margaret, live in Fayetteville. Their daughter, Tiffany, recently received her PhD from the University of North Carolina at Chapel Hill.
Melvin L. “Skip” Alston
He is a former Chairman and is now serving his fourth four-year term as a member of the Guilford County Board of Commissioners.
Alston is President of S&J Management Corporation and is involved with a number of other successful business ventures in the Greensboro area.
He is the immediate-president of the North Carolina State Conference of NAACP Branches, and serves on the NAACP National Board of Directors and Board of Trustees.
He is also a member of the North Carolina Martin Luther King, Jr. Holiday Commission, a past president of the North Carolina Association of Black County Officials, and is co-founder and Chairman of the board of directors for the Sit-In Movement, Inc.
Alston has two sons, DeSean Jahleel who is also a real estate broker, and Ryan DeMarkus.
Raymond A. “Buddy” Bass, Jr.
Bass entered the real estate business in 1965.
He was owner and president of Dickens-Bass Realty & Construction Company and president of Bass Construction Company of Fayetteville, Inc., until his retirement.
He is a native of Halifax and a graduate of East Carolina University where he played football. He served in the U.S. Military during the Korean Conflict.
He is a member of St. Mark’s Episcopal Church in Halifax, the Halifax Fishing Club, Alpo Hunting Club and the Cape Fear Aero Clubs as well as the Aircraft Owners and Pilots Association.
A former Chairman of the Real Estate Commission, he has been a member of the Commission since 1993. He was named by Governor Easley to the Order of the Long Leaf Pine for his long and dedicated service to the state.
Bass and his wife, Joan, have three children, Greg, Lisa and Susan.
This article came from the October 2005-Vol36-2 edition of the bulletin.
The Spring 2005 Trust Account Caravan set a new record for attendance with 701 attendees, shattering the old record of 593 set in 2002.
The Commission offered twelve “Basic Trust Account Procedures” courses and four “Trust Account Procedures for Resort Property Managers” courses between March and May. Courses were held in Asheville, Fayetteville, Greensboro,Greenville, Huntersville, Kill Devil Hills, Murphy and Wilmington.
Held annually, the Caravan was instituted by the Commission in 1982 as a means of providing its courses to people throughout the state who cannot attend one of the monthly courses held in Raleigh. Both courses were developed and are taught by members of the Commission’s Audits & Investigations Division.
This article came from the October 2005-Vol36-2 edition of the bulletin.
Alexa Corbett has assumed the position of Education and Licensing Officer. She approves and oversees prelicense education instructors and schools, and coordinates the license issuance process for salespersons, brokers and firms. She has an MA degree in education, a North Carolina broker license and several years experience as a public school teacher.
Tonya L. Spratley has assumed the position of Continuing Education Specialist in the Education and Licensing Division. She is responsible for administering various aspects of the CE program. Prior to joining the Commission, she worked as an administrative assistant with Hunter & Associates, a Raleigh real estate firm, and as a paralegal with Glaxo Smith Kline.
This article came from the October 2005-Vol36-2 edition of the bulletin.
Commission Chairman Matthew J. (Rick) Watts presented the Blanton Little Memorial Scholarship to Reuben L. Moore of Cary, and the Joe Schweidler Memorial Scholarship to John L. Irvin, Jr., of Greensboro.
Little and Schweidler are former executive directors of the Real Estate Commission.
This article came from the October 2005-Vol36-2 edition of the bulletin.
To honor Real Estate Commission Executive Director Phillip T. Fisher’s long and dedicated service, the Commission has established the Phillip T. Fisher Scholarship in his honor. Fisher joined the Commission in 1975.
The scholarship will benefit persons who have distinguished themselves in the Certified Residential Specialist (CRS) education program conducted under the auspices of the North Carolina chapter of the National Association of REALTORS® Council of Residential Specialists.
This article came from the October 2005-Vol36-2 edition of the bulletin.