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Disciplinary Actions

YANLI ZHU (GREENSBORO) – By Consent, the Commission suspended the broker license of Zhu for a period of 12 months, effective July 1, 2023.  The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Zhu agreed in writing to “rebate” 50% of her commission to buyer-clients.  Prior to closing, the relationship between Zhu and her clients deteriorated and Respondent refused to honor the agreement.  Zhu did not provide or review the WWREA disclosure at first substantial contact or enter a written agency agreement prior to submitting an offer for her clients to purchase a new home build.  Zhu provided the Commission with WWREA disclosures and agency agreements for multiple transactions that were not signed by clients on the dates shown on the forms.

GD REALTY LLC (GREENSBORO) – By Consent, the Commission suspended the firm license of GD Realty LLC for a period of 12 months, effective July 1, 2023.  The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that the firm represented numerous buyer-clients in real estate transactions and failed to provide and review Working With Real Estate Agents Disclosure forms or to obtain written Buyer Agency Agreements prior to offer.  During the course of the investigation, the firm asked the clients to sign these agreements and backdate them to the time the agency relationship began and submitted these signed forms to the Commission.

ROSHELLE LEIGH SCHUDEL (ELIZABETH CITY) – By Consent, the Commission suspended the broker license of Schudel for a period of 12 months, initially effective June 1, 2023, however, the Commission later extended the effective date to July 1, 2023.  The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Schudel failed to supervise an affiliated broker and failed to notify the Commission that she was no longer acting as broker-in-charge. 

HEATHER NICOLE SHELTON (GREENSBORO) – By Consent, the Commission suspended the broker license of Shelton for a period of 18 months, effective February 1, 2023, but stayed the suspension after 3 months and placed her on probation for the remaining 15 months upon certain conditions.  The Commission found that Shelton, as the broker-in-charge and qualifying broker of The Prestige Group of the Triad Inc. d/b/a Prestige Realty Group, executed a listing agreement but failed to have all of the owners sign.  After the property went under contract, the owners changed the water source from municipal to a well.  Although Shelton was aware, Shelton failed to inform the buyers or their agent of the change.  After closing, buyers learned the well could not be used and paid to run a new water line and meter to the property.  In addition, Shelton’s license was inactive from July 1, 2022, through September 15, 2022, yet Shelton continued to engage in brokerage activity.

THE PRESTIGE GROUP OF THE TRIAD INC. D/B/A PRESTIGE GROUP REALTY (GREENSBORO) – By Consent, the Commission suspended the license of The Prestige Group of the Triad, Inc. for a period of 18 months, effective February 1, 2023, but stayed the suspension after 3 months and instead placed the firm on probation for a period of 18 months upon certain conditions.  The Commission found that the firm executed a listing agreement but failed to have all of the owners sign. After the property went under contract, the owners changed the water source from municipal to a well. Shelton knew of this change before closing but failed to disclose to the buyers or their broker.  After closing, buyers learned the well could not be used and paid to run a new water line and meter to the property.  In addition, the Firm’s license was inactive from July 1, 2022 through September 15, 2022, yet the firm continued to engage in brokerage activity.

PHILIP M HENDERSON (CHARLOTTE) – By Consent, the Commission suspended the broker license of Henderson for a period of 12 months, effective August 1, 2023.  The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Henderson, acting as broker-in-charge of Henderson Properties, Inc., added surcharges to invoices for repairs without full disclosure to or consent from owner-clients. A record inspection showed non-compliance with trust account rules including failure to consistently include the purpose and payee for disbursals on journals and ledgers, failing to maintain the front and back of canceled checks, and posting deposits before payments were received. Henderson’s website misleadingly referenced a division for HOA management following the division’s sale to a separate company.

HENDERSON PROPERTIES INC (CHARLOTTE) – By Consent, the Commission suspended the firm license of Henderson Properties, Inc. for a period of 12 months, effective August 1, 2023.  The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that the firm added surcharges to invoices for repairs without full disclosure to or consent from owner-clients. A record inspection showed non-compliance with trust account rules including failure to consistently include the purpose and payee for disbursals on journals and ledgers, failing to maintain the front and back of canceled checks, and posting deposits before payments were received. The firm’s website misleadingly referenced a division for HOA management following the division’s sale to a separate company.

JACQUELINE KAY REYNOLDS (WAYNESVILLE) – By Consent, the Commission suspended the broker license of Reynolds for a period of 12 months, effective July 1, 2023.  The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Reynolds listed a subject property for sale and advertised it as containing 1585 square feet when in fact it contained 1362 square feet. The first buyer terminated when his girlfriend had a severe allergic reaction while viewing the property, which they believed was due to the presence of mold. Although Reynolds knew the reason for the termination, Reynolds misrepresented to the second buyer that the first buyer terminated because of a cat allergy. 

DERICK LEE REARDON (WILMINGTON) – By Consent, the Commission suspended the broker license of Reardon for a period of 3 months, effective July 19, 2023.  The Commission found that Reardon represented a potential buyer who entered into a contract and paid a $10,000 due diligence fee. The listing agent had disclosed in the MLS that this property was located in a CoBRA zone, making it ineligible for federal flood insurance.  Prior to entering into the contract, Reardon failed to disclose to the buyer that the property was located in a CoBRA zone.  The buyer was unable to secure a loan as a result, terminated the contract, and requested a return of their due diligence fee from the sellers, but were denied.

DEBRA GOLDMAN (FUQUAY VARINA) – The Commission accepted the permanent voluntary surrender of the real estate license of Goldman, effective June 14, 2023. The Commission dismissed without prejudice allegations that Goldman violated provisions of the Real Estate License Law and Commission Rules. Goldman neither admitted nor denied misconduct.

JAMES RICHARD HRISO (CARY) – The Commission accepted the voluntary surrender of the real estate education approvals of Hriso, effective July 19, 2023. The Commission dismissed without prejudice allegations that Hriso violated provisions of the Real Estate License Law and Commission Rules. Hriso neither admitted nor denied misconduct.

NICANDER RANICO MEDALLA (APEX) – By Consent, the Commission suspended the broker license of Medalla for a period of 6 months, effective July 20, 2023. The Commission found that Medalla, the qualifying broker and broker-in-charge of Sercy Capital Group LLC, entered into a listing agreement and entered the property in the MLS indicating another firm, with whom he was affiliated, as the listing firm, that the subject property was adjacent to the Historic District, and that it had several updates and new features installed. Medalla failed to disclose that the property was in fact in the Historic District and failed to verify that required permits were in place or that licensed contractors were used for renovations in accordance with Historic District ordinances. Seven of the renovations done were not in compliance with Historic District ordinances, and the buyers did not discover the misrepresentations until after closing and were then responsible for remedying the violations.

SERCY CAPTIAL GROUP LLC (APEX) – By Consent, the Commission suspended the firm license of Sercy Capital Group, LLC for a period of 6 months, effective July 20, 2023. The Commission found that the firm entered into a listing agreement but advertised the property as being listed by another firm. In addition, the advertisement indicated that the subject property was adjacent to the Historic District when in fact it was inside the Historic District, and that it had several updates and new features installed. The firm failed to verify that required permits were in place or that licensed contractors were used or that renovations were done to the subject property in accordance with Historic District ordinances. In fact, seven of the renovations were not in compliance with Historic District ordinances, and the buyers did not discover the misrepresentations until after closing and were then responsible for remedying the violations. The firm’s license had expired but was later renewed, however, the broker-in-charge failed to re-designate himself as broker-in-charge and the firm continued to advertise and provide brokerage services without a broker-in-charge designated.

Tech Corner: Do You Know Your Trust Account Software?

Do you have a trust account? Have you taken the Basic Trust Account Procedures Course?

The Commission does not require brokerages to have a trust account. However, if a broker will be receiving money while acting in their fiduciary capacity, they must deposit the monies in a trust or escrow account as defined by Rule 58A .0117(b). Additionally, they must deposit the money no later than 3 banking days following receipt unless another time frame is stated under Rule 58A .0016(b).

The Basic Trust Account Procedures Course is required when a BIC assumes responsibility for a trust account (i.e. opens a new account or takes over an existing account). Further, this course must be taken within 120 days of assuming responsibility per Rule 58A .0110(g)(9). During the course, brokers will learn the law and rules regarding trust accounts so they will be able to maintain them in adherence with the License Law and Commission rules. BICs are not required to take the course more than once in a three year period.

Trust Account Tutorials are also available on the Commission’s website to assist brokers with learning the process of maintaining trust account records that comply with Real Estate Commission rules. The tutorials cover Deposits, Disbursements, and Monthly Account Reconciliations using ledgers and trust account journals.

The Commission does not dictate the software that a brokerage must use while maintaining their trust account. However, brokers should possess in-depth knowledge of the trust account software system they choose to use. It would be in the best interest of brokers to receive training and/or hire an expert to ensure they can utilize the full capabilities of the system. Additionally, BICs should be sure to keep the software systems they use up-to-date.

To assist brokers with evaluating the capabilities of their system, the Commission has provided “Broker Software Evaluation Forms” for Sales, Long Term Rentals, and Vacation Rentals on its website. The evaluation forms ask a variety of questions such as:

These forms may assist with determining if the software provides the broker with the necessary information and documentation for compliance with the License Law and Commission rules.

NOTE: The Commission encourages brokers to consider whether they can utilize the trust account software independently and comply with the License Law and Commission rules or if they need to employ an expert to assist them.

If you have any further questions and/or comments regarding trust accounts, please email Regulatory Affairs at regulatoryaffairs@ncrec.gov.

Current Stats: Monthly Licensee Count as of July 1, 2023

Staff Appearances

Steve Fussell, Chief Consumer Protection Officer and Leslie Schwartz, Consumer Protection Officer, spoke at Hodge Kittrell Sotheby’s International Realty on July 11.

Brian Heath, Consumer Protection Officer, spoke at NorthGroup RE on July 19.

Commission Member Cindy Chandler and Legal Education Officer Kizzy Crawford-Heath Recognized by National Real Estate Educators Association

The Real Estate Educators Association (REEA) held their national conference on June 20-24, 2023 and honored two of the Commission’s own.  

The 2023 Classroom Education Program of the Year Award was bestowed on Commission member Cindy Chandler, DREI, for her work on the commercial version of the Commission’s mandatory Update course. The award recognized the innovative and successful nature of the classroom program.

In addition, REEA bestowed its “Rising Star Award” on the Commission’s Legal Education Officer Kizzy Crawford-Heath, DREI, for her contributions at REEA conferences and the DREI Summit. The award recognizes a REEA member who has made a significant change or accomplishment in their career within the past 3 years that has positively affected others in the real estate industry.

The Commission remains committed to leading industry-wide discussions and participating in educational events to build knowledge and skills that can benefit North Carolina licensees and consumers.

My license is expired! How do I reinstate it?

To maintain a current license, brokers must renew their license annually between May 15 and June 30. The license of a broker who fails to renew during that period will expire on June 30, and that broker must cease all brokerage activities immediately.   

What steps must a broker take to reinstate an expired license? That answer depends on how long the license has been expired.

To reinstate a license expired for less than 6 months:

  1. Go to the Commission’s homepage (www.ncrec.gov);
  2. Click on Reinstate your License;
  3. Enter your license number and PIN (last 4 of your SSN unless you have changed it);
  4. Answer required questions; and
  5. Pay the $90 reinstatement fee.

NOTE: Following expiration, a broker’s license is reinstated on inactive status. To regain active status, a License Activation / Affiliation form (REC 2.08) also must be submitted.

To reinstate a license expired for 6 months but no more than 2 years:

  1. Successfully complete one 30-hour Postlicensing course (course must be completed within 6 months prior to submitting reinstatement application); and
  2. Submit a reinstatement application with the $90 application fee and all required documentation, including criminal background report;

-OR-

  1. Submit a reinstatement application with the $90 application fee and all required documentation, including criminal background report; and
  2. Pass the National and State sections of the license exam.

NOTE: Following expiration, a broker’s license is reinstated on inactive status. To regain active status, a License Activation / Affiliation form (REC 2.08) also must be submitted.

To reinstate a license expired for more than 2 years:

  1. Successfully complete the 75-hour NC Broker Prelicensing course;
  2. Submit a license application with the $100 original application fee and all required documentation, including criminal background report; and
  3. Pass the National and State sections of the license exam.

NOTE: You will be licensed as a provisional broker and be subject to the 90-hour Postlicensing education program. To gain active status, a License Activation / Affiliation form (REC 2.08) also must be submitted.

For more information, review Commission Rule 58A .0505 or visit the “Reinstate your License” page on the Commission’s website. You may also contact the Commission’s Education & Licensing Division at ls@ncrec.gov or 919-875-3700.

Be Aware of Scam Sellers

In its December 2022 eBulletin, the Commission published an article warning brokers about an increase in scams involving fake buyers and fake sellers.  The Commission is seeing a rapid increase in the fake seller identity theft scams. A scammer will contact a listing broker and pose as the owner of the property.  In many cases, they produce a very realistic driver’s license to show the broker.  A listing agreement is signed and the property is then marketed. 

In many cases, the real owner will find out about the listing and put a stop to it before the deed has gone under contract.   However, the scammer may already have received due diligence money or, in some cases, even completed the sale. This can lead to injury to the real owner, buyer, brokers, and closing attorneys. In some cases, the owner will have to go to court to get the matter resolved with the buyer. 

Some similarities have arisen through all the cases.  The scammer often gets in contact with the listing broker through a lead generating website.  Most of the time, the scammer states that they are traveling or are out of state and cannot meet the broker in person.  The scammer often indicates they need a quick sale due to health or other family matters and are willing to take a lower offer to get that quick sale.  The scammer requests to sign documents through Docusign, Dotloop, or some other digital signature platform.  The emails appear to be legitimate and they feature the proper owner’s name in the email.  It is rare, but in at least one case, the scammer met the listing agent at the property in person. 

The other common element is that the scammers usually target undeveloped land, vacant or abandoned properties, or properties that are in a trust where an owner has recently died.   Typically, there is no one around that might question a real estate sign on a property and that is why they are being targeted.  In some cases, a neighbor who knew the owner contacted either the owner or the listing broker to alert them to the questionable listing.

There is no area of the state that is seeing a higher concentration than other areas.  This is affecting the whole of North Carolina as well as other states.  The scammer ID’s are also coming from other places than North Carolina when the actual owner is from another state. 

As brokers, be vigilant when dealing with these types of leads.  The scammer will often have a ton of information about the real owner and can answer questions regarding what you might find on the deed, tax records, or county government records.  Remember that these are publicly available documents. Be careful about sellers who are too busy to meet in person, or seem extra motivated to sell quickly, yet are traveling out of state.  We recommend that when you see these red flags, you take steps to independently verify that the purported owner is who they say they are rather than rely on documents or information coming from the purported owner. This could include googling, checking with neighbors, looking up the seller on social media, and/or requiring Zoom, FaceTime, or some other online face-to-face meeting. Check the history of the property and contact the previous listing agent/firm if something seems strange about the purported seller. It is important to take your time and take steps to protect yourself, your business, and any potential buyer when faced with a seller showing red flags.

The Commission continues to gather information about these scams for possible referral to law enforcement agencies. However, online scammers are often located out of this state and country so prosecution becomes even more difficult.  Be wary and protect both yourself, your firm, and your community.

The 2023-2024 Update Course is here!

The Commission’s GENUP-General Update and BICUP-Broker-in-Charge Update courses for 2023-2024 are available beginning on July 1, 2023, for all licensees.

The 2023-204 GENUP course topics are:

The 2023-2024 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, 2023 – June 10, 2024. 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:

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, contact the Education and Licensing Division at ls@ncrec.gov or 919.875-3700.

Disciplinary Actions

JAYNE A. ANDERSON (OCEAN ISLE BEACH) – By Consent, the Commission suspended the broker license of Anderson for a period of 12 months, effective June 10, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that Anderson listed a vacant lot for sale in Brunswick County and had in her possession a copy of the Soil Evaluation that showed the lot did not perc. Anderson noted in the MLS that there was a Soil Evaluation but failed to attach the results or disclose that the lot did not perc.

JEFFREY S. BEISER (CHARLOTTE) – By Consent, the Commission suspended the broker license of Beiser for a period of 12 months, effective June 6, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that, acting as broker-in-charge of a sole proprietorship, Beiser listed a residential property for sale which went under contract with a buyer. Following their home inspection, the buyer terminated the contract and Beiser received a copy of the home inspection report via email.  Beiser failed to open or forward the home inspection report to his seller-client. Beiser re-listed the subject property, which went under contract with a second buyer who also had a home inspection performed. This buyer’s home inspection report noted the same issues with the subject property as the previous home inspection report. The subsequent buyer terminated during the due diligence period. Beiser then re-listed the subject property with an updated disclosure form reflecting the home inspection findings and a copy of the inspection report was added to the listing.

KARMEN K. BODGE (ELIZABETH CITY) – By Consent, the Commission reprimanded Bodge, effective June 1, 2023.  The Commission found that Bodge was the Director of New Agent Training for a firm during the subject transaction. Bodge became aware that the transaction was an all-cash transaction with a provisional broker acting as dual agent.  Bodge failed to adequately supervise the provisional broker regarding a proof-of-funds letter submitted by the buyers that was not reliable.   

JASON T. CHURCHMAN (WILMINGTON) – By Consent, the Commission suspended the broker license of Churchman for a period of 12 months, effective June 10, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that Churchman represented a buyer purchasing a vacant lot. The listing agent advertised that the lot could be developed and represented that there was county water and sewer available on the street, but that the utilities ended at the house to the right of the subject property. Churchman failed to pursue further information from the Listing Agent or county about the perc test or the availability of the water and sewer prior to the buyer going under contract or closing.

ERIC M. CORNELISON (HIGH POINT) – By Consent, the Commission suspended the broker license of Cornelison for a period of 6 months, effective June 15, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that Cornelison, acting as broker-in-charge, supervised a provisional broker who submitted an offer containing confusing language regarding the conveyance of a refrigerator, resulting in a later dispute. Cornelison assisted in negotiating a payment from the listing agent to the buyer but failed to adequately supervise the provisional broker during the transaction, leading to the provisional broker accepting a cash payment from the listing agent which she delivered to her buyer-client without informing the lender or closing attorney.

URIAH L. DORTCH (RALEIGH) – By Consent, the Commission suspended the broker license of Dortch for a period of 6 months, effective June 15, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that Dortch listed property he had under construction with a listing broker. The property was advertised as having city water. Dortch had started construction of a well after being informed that city water was not available. Dortch failed to disclose to the listing agent that the subject property would utilize a private well. After the property went under contract, the buyers learned that the property would be served by a well. Dortch offered to terminate and refund all deposits but the buyers chose to close. 

KENNETH R. EDWARDS, JR. (ROCKINGHAM) – By Consent, the Commission suspended the broker license of Edwards for a period of 12 months, effective June 1, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that Edwards represented the buyers of the subject property and failed to disclose the possibility of a 4-lane bypass planned by the North Carolina Department of Transportation that could affect the subject property.

JOHN K. GRAYSON (SOUTHPORT) – By Consent, the Commission suspended the broker license of Grayson for a period of 12 months, but stayed the suspension following a 6 month active suspension.  The Commission found that Grayson advertised and leased properties managed by Property Management Services, Inc. through Discovernchomes.com.  Grayson failed to affiliate with the firm and to obtain written agency agreements with owners. Beginning in 2018 and into early 2019, Grayson advertised and leased one such property to a tenant on a month-to-month basis. Grayson failed to inform the owners that the property had been rented for March 2019.  When the owners notified Grayson of their intention to use the unit during the month of March, Grayson attempted but failed to relocate the tenant to another unit.  Grayson then tried to force the tenant to vacate the property by misrepresenting to security personnel and others that the tenant was trespassing and did not have a lease.

JOSHUA T. GREENWALD (CHARLOTTE) – By Consent, the Commission suspended the broker license of Greenwald for a period of 12 months, effective June 6, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that Greenwald listed a residential property for sale, which contained multiple units, that was being advertised as income producing property. The property owner requested that Greenwald not allow showings to take place and to not inform the tenants of the sale until contract formation, so as not to disturb their quiet enjoyment. For this reason, Greenwald failed to measure the subject property or have it professionally measured, instead relying on the rent rolls of the current property management company. Greenwald advertised the subject property as having 3,352 square feet of living area. The property went under contract with a buyer whose appraisal showed the subject property as having 2,872 square feet, a difference of 480 square feet or a 15.4% difference. When presented with this information, Greenwald immediately corrected his listing to reflect the correct square footage. The buyer then terminated the contract when he and the seller could not agree on a price change to the contract.

ADRIENNE H. HAGERMAN (GREENSBORO) – By Consent, the Commission suspended the broker license of Hagerman for a period of 6 months, effective June 15, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that Hagerman, as a provisional broker representing a buyer client, submitted an offer that contained confusing language regarding the conveyance of a refrigerator, resulting in a later dispute. Hagerman negotiated a payment from the listing agent for the removed refrigerator. Hagerman accepted a cash payment from the listing agent and failed to deliver the cash to her broker-in-charge, but instead immediately delivered the cash to her buyer client.  Hagerman failed to inform the lender or closing attorney about the negotiated payment prior to closing.

KATHERINE R. HICKMAN (CHARLOTTE) – By Consent, the Commission reprimanded Hickman effective June 6, 2023. The Commission found that Hickman acted as the agent for the buyer in the purchase of residential real property. During this transaction, a number of material issues with the subject property were discovered through various inspections. The seller and buyer agreed to a reduced price without any repairs being made prior to closing. The new owner then made some cosmetic updates to the subject property’s interior, but otherwise did not address other material issues. Hickman then listed the subject property and failed to disclose the outstanding material issues. The subject property went under contract two separate times with both buyers terminating during the due diligence period when their respective home inspections discovered similar material issues with the subject property. The Commission notes that both buyers have been refunded their respective due diligence fees and expenses, and the property was removed from the sales market.

TAMARA L. HILL (RALEIGH) – By Consent, the Commission reprimanded Hill effective June 15, 2023. The Commission found that Hill acted as the buyer’s agent for the purchase of a property and received a home inspection report that noted material issues with a deck and electrical system. Months after the purchase, the buyers informed the Hill they had carried out a variety of improvements to the property and Hill believed this included addressing the issues noted in the inspection report.  Hill later acted as a listing agent for the sale of the same property but failed to disclose the issues found earlier or to .confirm that repairs had been made. The buyers’ inspection report noted the same problems with the deck and electrical system and was almost identical to the 2020 inspection. The parties agreed to a price reduction and the buyer closed on the subject property.

BALA K. KAMUJU (CARY) – By Consent, the Commission suspended the broker license of Kumuju for a period of 12 months, effective June 1, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that Kumuju, as broker-in-charge of a licensed firm, was unaware that a broker associated with his firm conducted brokerage during a time when her license was on inactive status for failing to complete continuing education.  Kumuju failed to renew his firm’s license and it was expired for 10 days before being renewed.  Kumuju recreated and backdated 5 of 10 agency agreements provided to the Commission as he could not locate originals.

KRIS & ASSOCIATES PROPERTY MANAGEMENT (CARY) – By Consent, the Commission suspended the firm broker license for a period of 12 months, effective June 1, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that the Firm was unaware that a broker associated with the Firm was conducting brokerage during a time when her license was on inactive status for failing to complete continuing education. The Firm failed to renew its license and was expired for 10 days before renewing.  The Firm’s broker-in-charge recreated and backdated 5 of 10 agency agreements provided to the Commission as it did not have originals.

LAKE WYLIE MARKET CENTER LLC (CHARLOTTE) – By Consent, the Commission reprimanded the firm effective June 15, 2023.  The Commission found that the Firm represented an out of state buyer purchasing property sight-unseen.  The Firm, through its affiliated broker, failed to ensure that the buyer agency agreement included accurate dates and was completed prior to a transaction closing. The Firm has instituted additional policies and procedures for reviewing document compliance.

JOHN M. LEES (RALEIGH) – By Consent, the Commission suspended the broker license of Lees for a period of 6 months, effective June 15, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that Lees acted as the listing agent on behalf of a licensed seller for the sale of a home under construction. Lees advertised that the property would have city water and a septic system although the seller had started construction of a well and had been informed that city water was not available. After the property went under contract, the buyers learned that the property would be served by a well. The seller offered to terminate and refund all deposits but the buyers chose to close. 

BRUCE W. MOYER (CHARLOTTE) – The Commission accepted the voluntary surrender of the real estate education approvals of Moyer effective June 14, 2023. The Commission dismissed without prejudice allegations that Moyer violated provisions of the Real Estate License Law and Commission Rules. Moyer neither admitted nor denied misconduct.

CARLOS OROZCO (CHARLOTTE) – By Consent, the Commission suspended the broker license of Orozco for a period of 18 months, effective June 6, 2023.  The Commission then stayed the suspension following a 3 month active suspension period. Orozco is also prohibited from acting as, or becoming broker-in-charge eligible for a period of 5 years. The Commission found that Orozco represented a buyer in a residential purchase transaction for a property that was advertised as a 4-bedroom home. A few days after going under contract, the listing agent emailed Orozco a copy of the septic permit, which only allowed for a 2-bedroom home. Orozco failed to inform his buyer-client of the septic information. Orozco’s buyer-client closed on the subject property and then hired Orozco to list the subject property for sale a few months later. Orozco at this time advertised the subject property as a 4-bedroom home, despite being in possession of the 2-bedroom septic permit, and failed to disclose this material issue at the time one offer was made on the subject property.

DAVID OWENS (TARBORO) – Following a hearing, the Commission revoked the broker license of Owens effective June 13th, 2023, with no right to reapply for reinstatement for a period of two years. The Commission found that Owens was convicted of Felony Death by Motor Vehicle, as well as Driving While Impaired and was sentenced to 55-78 months in the North Carolina Department of Adult Corrections.

JORDAN E. STEPANSKY (WAYNESVILLE) – By Consent, the Commission suspended the broker license of Stepansky for a period of 12 months, effective June 15, 2023.  The Commission then stayed the suspension in its entirety. The Commission found that Stepansky represented buyer-clients in a residential transaction and failed to thoroughly review the seller-provided home inspection report and discuss it with the buyer-clients.  Stepansky failed to discuss incorporating the cost of a UV filter for the well into the sales price with the buyer-clients prior to discussing it with the lender and preparing a contract amendment form. Stepansky failed to discover a square footage discrepancy of 16%.  

Staff Appearances

Len Elder, Director of Education & Licensing and Kizzy Crawford Heath, Legal Education Officer, spoke at Durham Regional Association of REALTORS® on June 6.

Minerva Mims, Diversity Equity Inclusion Officer, spoke at the Longleaf Pines REALTOR® Association on June 8.

Christy Evans, Consumer Protection Officer, spoke at Larry McGuire Realty meeting on June 22.