Three North Carolina brokers recently received scholarships from the Commission for academic excellence in real estate courses.
The recipients, each of whom received $400 for tuition, are Gloria O. Brinkley, Lexington, the Joe Schweidler Memorial Scholarship Award; Julie L. Parrish, Durham, the Blanton Little Memorial Scholarship Award; and Linda J. Mehner, Wilmington, the Phillip T. Fisher Scholarship Award.
Brinkley and Parrish were selected by the North Carolina Association of REALTORS® for achievement in the Graduate Realtors® Institute (GRI) program. Mehner was selected by the North Carolina Chapter of the Council of Residential Specialists for achievement in the Certified Residential Specialists (CRS) program.
Little and Schweidler were former Secretary-Treasurers of the North Carolina Real Estate Licensing Board. Fisher was Executive Director of the Real Estate Commission from 1981 to 2010.
This article came from the October 2017-Vol48-2 edition of the bulletin.
In the article, “Due Diligence Fees: When Are They Refunded?”, in the May 2017 Bulletin, the following sentence appears as the result of a production error: Buyers and sellers may enter into other addenda that may provide for a due diligence fee refund but those provisions must be drafted by the parties or, preferably, by an attorney or by a broker.” The statement, “…or by a broker”, is incorrect; only an attorney or the parties to the contract can draft language for contracts or addenda.
This article came from the October 2017-Vol48-2 edition of the bulletin.
(The following article is copyrighted by and reprinted with the permission of the Association of Real Estate License Law Officials (ARELLO®)).
The Consumer Financial Protection Bureau (CFPB) recently finalized amendments to its “Know Before You Owe” mortgage disclosure rules, one of which should make it easier for real estate professionals to obtain access to the “new” Closing Disclosure (CD) form.
The CFPB TILA-RESPA Integrated Mortgage Disclosure rules (commonly referred to as “TRID”, but labeled “Know Before You Owe” by the CFPB) took effect in October 2015. The rules replaced the previous disclosure forms required in all “federally-related” residential mortgage transactions, including the once familiar HUD-1 settlement statement, with the CFPB’s mortgage Loan Estimate and Closing Disclosure forms.
When the lengthy and intricate new TRID rules took effect, much attention was focused on the resulting compliance issues and mortgage process disruptions that were experienced by mortgage lenders/ originators, title companies and other transaction service providers. Less publicized was an unintended consequence of the rules that left many real estate licensees with difficulties in obtaining copies of completed Closing Disclosure forms from lenders. The problem arose from lender concerns regarding the privacy provisions of the Graham-Leach-Bliley Act (GLBA) and Regulation P, which restrict lender disclosure of customers’ “nonpublic personal information” (NPI) to third parties. This complication, as well as the nature and contents of the Closing Disclosure form, also prompted some state regulators to address the impact of TRID on real estate license law matters such as recordkeeping and transaction closing statement requirements.
The National Association of REALTORS® (NAR) has previously pointed out to the CFPB that, prior to implementation of TRID, real estate agents routinely had access to and used the now-defunct HUD-1 settlement statement to answer client questions about matters such as concessions, escrows, commissions and prorated taxes. NAR has also urged the CFPB to clarify that, under Regulation P, “…it is just as acceptable now as it was before Know Before You Owe for a lender to share the [Closing Disclosure] with third parties ….”
For its part, the CFPB’s rulemaking proposal issued in July 2016 acknowledged that the Real Estate Settlement Procedures Act (RESPA) and its implementing regulations required settlement agents to issue the HUD-1 form to lenders, borrowers, sellers, and their agents. The CFPB also acknowledged that, in accordance with applicable exceptions to the privacy requirements of the GLBA, it [is] “usual, accepted, and appropriate” for creditors and settlement agents to provide the new Closing Disclosure form to consumers, sellers, and their real estate brokers or other agents. Consequently, the CFPB’s recent final rules incorporate its previous informal guidance on the subject and modify the official TRID commentaries to clarify that a creditor may provide separate disclosure forms to a consumer and seller if state law prohibits sharing information in the disclosure form, as well as in any other situation where the creditor chooses to provide separate disclosures, and establishes the three methods that may be used to make such modifications.
Among numerous other amendments, the final rules also create tolerances for “total of payments” calculations, adjust an exemption mainly affecting housing finance agencies and nonprofits, and extend coverage of the disclosure requirements to cooperative units.
This article came from the October 2017-Vol48-2 edition of the bulletin.
Cindy S. Chandler and Thomas R. Lawing, Jr., both of Charlotte, have been reappointed to the North Carolina Real Estate Commission for three-year terms beginning August 1, 2017 and July 1, 2017, respectively, it was announced by Miriam J. Baer, Executive Director.
Chandler was reappointed by President Pro Tempore of the Senate Phil Berger and Lawing was reappointed by Speaker of the House Tim Moore.
This article came from the October 2017-Vol48-2 edition of the bulletin.
Sandra L. O’Connor of Greensboro has been appointed to the North Carolina Real Estate Commission by Governor Roy Cooper, it was announced by Miriam J. Baer, Executive Director.
Broker-in-charge of the Greensboro Green Valley Branch of Allen Tate Company, O’Connor has been a licensed North Carolina real estate broker since 1983. From 1985 to 2005, she was the owner and sole proprietor of Sandra O’Connor & Associates.
O’Connor has been active with the national, state, and local REALTOR® organizations and in community affairs.
She is a Director of the National Association of REALTORS® and a past Region 4 Vice President. A past President of the North Carolina Association of REALTORS®, as well as a Region V Vice President and Treasurer, she received its REALTOR® of the Year award in 2014. She is a past President and REALTOR® of the Year of the Greensboro Regional REALTORS® Association and has been admitted to its Hall of Fame.
O’Connor is a past chair and member of the Greensboro Planning Board and a member of the board of directors of the Guilford Green Foundation. She holds a BA degree from Carlow University in Pittsburgh and a MA from the University of Washington in Seattle.
This article came from the October 2017-Vol48-2 edition of the bulletin.
Robert J. Ramseur, Jr., of Raleigh, has been elected Chair of the Real Estate Commission and Anna Gregory Wagoner, of Winston-Salem, Vice Chair, for the term beginning August 1, 2017, announced Miriam J. Baer, Executive Director.
Ramseur is a partner at the law firm of Ragsdale Liggett PLLC and chair of its real estate department. His practice focuses on residential and commercial real estate transactions, real estate financing and development, tax and entity structuring, lease negotiations and drafting, and real estate litigation.
Licensed to practice law in North Carolina in 1996, Ramseur is licensed to practice in all state courts, the District Court of the United States (Eastern District of North Carolina), and the U.S. Supreme Court.
He is past president of the Wake County Real Property Lawyers Association, past co-chair of the Joint Forms Task Force for the North Carolina Bar Association and North Carolina Association of REALTORS®, and past president of the Real Estate Lawyers Association of North Carolina, Inc., a trade association with over 350 members.
A native of Raleigh, Ramseur graduated with honors from Needham B. Broughton High School and received a Bachelor of Arts in History, cum laude, from Wake Forest University in 1992 and a law degree from Wake Forest in 1995.
Active in civic and charitable activities, he is the president of Band Together, past president of the Rotary Club of the Capital City and chair of the Board of Directors of Raleigh’s Theatre In The Park and is a member of the Board of Visitors of the Triangle Area YMCA’s Camp Sea Gull and Camp Seafarer. Ramseur received the 2017 Citizen Lawyer Award from the North Carolina Bar Association.
Wagoner is a shareholder with the law firm of Blanco Tackabery & Matamoros, P.A. in Winston-Salem and practices in the areas of commercial real estate and renewable energy.
Active in the practice of real estate law for approximately 17 years, Ms. Wagoner was formerly associated as an attorney with Investors Title Insurance Company, of Chapel Hill, SpectraSite Communications, Inc., of Cary, and Isaacson, Isaacson, Sheridan, Fountain & Leftwich, LLP, of Greensboro.
Wagoner is a member of the North Carolina Bar Association, Forsyth County Bar Association, Piedmont Triad Commercial Real Estate Women, and the North Carolina Land Title Association.
She is a graduate of Wake Forest University with a BA in Psychology and holds a Juris Doctor degree from the Wake Forest University School of Law.
This article came from the October 2017-Vol48-2 edition of the bulletin.
ANDRE P. ALLEN (Charlotte) – By Consent, the Commission reprimanded Mr. Allen effective September 1, 2017. The Commission found that while Mr. Allen was acting as the owner of a sole proprietorship, one of Mr. Allen’s provisional brokers advertised a property as having 1,014 square feet based on a previous appraisal of the property with no independent verification, in violation of the Commission’s Residential Square Footage Guidelines; that Mr. Allen was unaware that the license status of one of his provisional brokers became “inactive” for failure to complete all continuing education required by Commission rules; and that Mr. Allen was previously cautioned by Commission staff to exercise diligence in training, supervising, and maintaining contact with his firm’s agents, especially provisional brokers.
ARBOR REALTY INC. (Chapel Hill) – By Consent, the Commission reprimanded Arbor Realty effective April 3, 2017. The Commission found that Arbor Realty failed to correct various violations of the Real Estate License Law and Commission rules in the firm’s trust accounts following recommendations made to Arbor Realty by Commission staff; and that these violations included, but were not limited to, failure to maintain copies of checks, failure to maintain a personal funds ledger, failure to identify the purpose for monies being deposited, failure to deposit entrusted funds within three banking days of receipt, deficit spending which led to a shortage in the security deposit account, and unidentified funds which led to an overage in the rental account. The Commission noted that it does not appear that any consumers have been harmed. Arbor Realty’s trust accounts are now in compliance.
WILLIAM H. BRACEY (Chapel Hill) – By Consent, the Commission reprimanded Mr. Bracey effective April 3, 2017. The Commission found that Mr. Bracey, acting as broker-in-charge and qualifying broker of a real estate brokerage firm, failed to correct various violations of the Real Estate License Law and Commission rules in the firm’s trust accounts following recommendations made to Mr. Bracey by Commission staff; and that these violations included, but were not limited to, failure to maintain copies of checks, failure to maintain a personal funds ledger, failure to identify the purpose for monies being deposited, failure to deposit entrusted funds within three banking days of receipt, deficit spending which led to a shortage in the security deposit account, and unidentified funds which led to an overage in the rental account. The Commission noted that it does not appear that any consumers have been harmed. The firm’s trust accounts are now in compliance.
BRION ENTERPRISES INC. (Lumberton) – By Consent, the Commission suspended the firm license of Brion Enterprises for a period of 12 months effective September 19, 2017. The Commission then stayed the suspension for a probationary period through September 18, 2018. The Commission found in a trust account audit that Brion Enterprises failed to maintain the front and back of checks, failed to maintain a personal funds ledger, failed to perform monthly reconciliations, failed to maintain a trial balance, failed to identify the purpose for the disbursement of rental funds, and failed to identify the purpose of deposits received; and that an overage in excess of $19,000 of unidentified funds was discovered in the trust account holding earnest money deposits and an overage in excess of $31,000 of unidentified funds was discovered in the management escrow account. The Commission noted that it does not appear that any consumers have been harmed and Brion Enterprises is taking steps to identify the owners of the funds for their return.
KENNETH REECE BROWN (Jacksonville) – By Consent, the Commission reprimanded Mr. Brown effective May 1, 2017. The Commission found that Mr. Brown, acting as listing agent for a property, promised an easement agreement would be signed by the owners of adjacent properties to allow access to the listed property over their property; that the buyers closed on the property based on Mr. Brown’s guarantee but he failed to do so. Mr. Brown has since obtained the required signatures and recorded the promised agreement.
PATRICIA LYNNE BROWN (Lowell) – By Consent, the Commission suspended the broker license of Ms. Brown for a period of three months effective June 15, 2017. The Commission found that Ms. Brown, acting as the qualifying broker and broker-in-charge of a real estate brokerage firm, managed a property owned by her, but failed to place a tenant security deposit into an account designated “trust” or “escrow”; that Ms. Brown, while submitting offers on behalf of potential buyers, failed to deposit earnest money deposits into an account designated “trust” or “escrow”; that Ms. Brown failed to produce an agency agreement for her representation of a buyer in one transaction; and that Ms. Brown failed to respond to Letters of Inquiry sent by Commission staff within 14 days of receipt.
SHERRY CLARK BYRD (Lumberton) – Following a hearing, the Commission permanently revoked the broker license of Ms. Byrd effective July 19, 2017. The Commission found that Ms. Byrd, acting as broker-in-charge, managed the properties of various owners; that Ms. Byrd failed to provide full and complete trust account records such that an audit trail could be established; that Ms. Byrd manipulated trust account reconciliations in order to force the reconciliation to balance; that Ms. Byrd converted trust monies from the security deposit trust account and rental accounts; that Ms. Byrd’s security deposit trust account and rental accounts were short at least $25,465.57 in total; that Ms. Byrd failed to provide records pertaining to the management of a home owners association and the trust account she maintained in its name; that Ms. Byrd converted $14,218.70 by depositing a check intended to be deposited in a firm trust account into her personal bank account; and, that Ms. Byrd operated her firm Carolinas Realty Exchange LLC without a license from January 11, 2016 through November 30, 2016.
CAROLINA HOMES (Lowell) – By Consent, the Commission suspended the firm license of Carolina Homes for a period of three months effective June 15, 2017. The Commission found that Carolina Homes, a licensed real estate brokerage firm, managed a property owned by its qualifying broker and broker-in-charge and failed to place a tenant security deposit into an account designated “trust” or “escrow”; that Carolina Homes, while submitting offers on behalf of potential buyers, failed to deposit earnest money deposits into an account designated “trust” or “escrow”; that Carolina Homes failed to produce an agency agreement for its representation of a buyer in one transaction; and that Carolina Homes failed to respond to Letters of Inquiry sent by Commission staff within 14 days of receipt.
CAROLINAS REALTY EXCHANGE LLC (Lumberton) – Following a hearing, the Commission permanently revoked the firm license of Carolinas Realty Exchange effective July 19, 2017. The Commission found that Carolinas Realty Exchange managed the properties of various owners; that Carolinas Realty Exchange failed to provide full and complete trust account records such that an audit trail could be established; that Carolinas Realty Exchange manipulated trust account reconciliations in order to force the reconciliation to balance; that Carolinas Realty Exchange converted trust monies from the security deposit trust account and rental accounts; that Carolinas Realty Exchange’s security deposit trust account and rental accounts were short at least $25,465.57 in total; that Carolinas Realty Exchange failed to provide records pertaining to the management of a home owners association and the trust account she maintained in its name; that Carolinas Realty Exchange converted $14,218.70 by depositing a check intended to be deposited in a firm trust account into her personal bank account; and, that Carolinas Realty Exchange operated without a license from January 11, 2016 through November 30, 2016.
CORNERSTONE REALTY OF LAKE LURE LLC (Lake Lure) – By Consent, the Commission permanently revoked the firm license of Cornerstone Realty effective May 10, 2017. The Commission found that Cornerstone Realty’s trust account did not include a trust account journal, property ledgers, or a trial balance; that an audit of the account also discovered a shortage and deficit spending due to a failure to perform monthly reconciliations; that Cornerstone Realty’s website used an unregistered assume name and the rental agreements failed to comply with the Vacation Rental Act; and that Cornerstone Realty’s qualifying broker handled all aspects of the business as the broker-in-charge was largely absent.
MICHELE DYER (Corolla) – By Consent, the Commission permanently revoked the broker license of Ms. Dyer effective August 17, 2017. The Commission found that Ms. Dyer, while working for a licensed real estate brokerage firm, failed to safeguard funds held in the firm’s trust accounts; that Ms. Dyer commingled personal funds with trust funds and converted trust money to personal use; that Ms. Dyer authorized a $20,000 payment from the firm’s trust account to her brother-in-law to repay a personal loan; and that Ms. Dyer’s actions resulted in a shortage in the firm’s trust accounts.
HOWARD W. ERVIN (Mooresville) – By Consent, the Commission permanently revoked the broker license of Mr. Ervin effective June 14, 2017. The Commission found that Mr. Ervin maintained a trust account and brokerage account for property management; that Mr. Ervin commingled trust funds in a brokerage account and operated this account as if it were a trust account; that Mr. Ervin did not maintain any trust account records and failed to provide any trust account or bank records to the Commission; that Mr. Ervin admitted to the Commission that he converted over $18,000 from his trust account for personal use; and that an audit of Mr. Ervin’s trust account revealed a shortage of approximately $60,546.
ANNETTE FERN EVANS (Sparta) – By Consent, the Commission suspended the broker license of Ms. Evans for a period of 18 months effective January 1, 2017. Six months of the suspension were active with the remainder stayed for a probationary period from July 1, 2017 to July 1, 2018. The Commission found that Ms. Evans represented the buyer of a property located in Virginia and, although Respondent had completed real estate courses in Virginia, she had yet to sit for the state exam; that Ms. Evans submitted documents to the closing attorney which purported to show that she was licensed in Virginia, when in fact she was not; that the misrepresentation was discovered prior to closing and Ms. Evans was only paid a referral fee rather than a full commission. The Commission notes that Ms. Evans is remorseful and that the buyer was not harmed in the transaction.
DAVID ELLIOTT FLACK (Raleigh) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Flack effective October 1, 2017. The Commission dismissed without prejudice allegations that Mr. Flack violated provisions of the Real Estate License Law and Commission rules. Mr. Flack neither admitted nor denied misconduct.
SANDRA ELLINGTON GRAVES (Burlington) – By Consent, the Commission suspended the broker license of Ms. Graves for a period of one year effective August 1, 2017. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Graves in 2008 acted as a dual agent in the sale of residential real property; that a home inspection revealed the presence of an underground storage tank (UST) and that Ms. Graves represented to her buyer-clients that she had the UST inspected and that the inspection revealed that the UST had been properly filled; that Ms. Graves failed to get any documentation showing that the UST had in fact been properly filled or even inspected; that Ms. Graves’ buyer-clients closed on the property based on Ms. Graves’ representation that the UST was properly filled; and that in 2015, the buyer-clients discovered that the UST had not been properly filled and the surrounding soil was contaminated.
JENNIFER LEE GUDAITIS (New Bern) – By Consent, the Commission reprimanded Ms. Gudaitis effective July 1, 2017. The Commission found that Ms. Gudaitis, acting as the broker-in-charge of a real estate brokerage firm and as a time share project broker, failed to adequately supervise a provisional broker under her supervision; and that the provisional broker made misrepresentations outside of Ms. Gudaitis’ presence while selling timeshares; and the Commission notes that Ms. Gudaitis’ firm has refunded monies to the buyers and the firm has surrendered its license.
DEREK CHAVONZA HAIRSTON (Reidsville) – By Consent, the Commission suspended the broker license of Mr. Hairston for a period of 36 months effective May 10, 2017. The Commission found that Mr. Hairston pleaded guilty to one count of Conspiracy to Distribute Cocaine Hydrochloride, a federal felony; that he was sentenced to 48 months imprisonment and three years’ supervised release upon release from imprisonment; and that Mr. Hairston reported this conviction more than 60 days following the final judgment.
ROGER D. HAMILTON (Lake Lure) – The Commission accepted the voluntary surrender of the broker license of Mr. Hamilton for a period of one year effective June 14, 2017. The Commission dismissed without prejudice allegations that Mr. Hamilton violated provisions of the Real Estate License Law and Commission rules. Mr. Hamilton neither admitted nor denied misconduct.
RICHARD J. HARRIS (Morrisville) – By Consent, the Commission reprimanded Mr. Harris effective July 1, 2017. The Commission found that Mr. Harris, acting as the broker-in-charge of a licensed real estate brokerage firm, did not adequately supervise a provisional broker’s compliance with the Real Estate License Law and Commission rules, allowing the broker to actively engage in real estate brokerage for approximately six months while his license was on inactive status.
HOPE ADVANTAGE REALTY INC (Charlotte) – By Consent, the Commission suspended the firm license of Hope Advantage Realty for a period of two years effective June 15, 2017. The Commission then stayed the suspension for a probationary period ending June 15, 2019. The Commission found that Hope Advantage Realty failed to fully account for a tenant security deposit to a tenant; and that Hope Advantage Realty failed to perform reconciliations and failed to maintain trust accounts in compliance with Commission rules.
JACK HOPE (Charlotte) – Following a hearing, the Commission permanently revoked the broker license of Jack Hope effective June 27, 2017. The Commission found that Mr. Hope, acting as broker-in-charge of a licensed firm, failed to properly account for and disburse tenant security deposits paid to the firm until the misapplication of funds was discovered in an audit by Commission staff; that Mr. Hope falsified records he provided to his owner-client and to Commission staff; that Mr Hope admitted that he failed to perform reconciliations on his firm’s trust accounts; and that Mr. Hope converted trust funds to his own use leading to an approximate $50,000 shortage in the firm’s trust accounts.
JOHN HENRY LANE SR. (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Lane for a period of 12 months effective June 1, 2017. Three months of the suspension was active with the remainder stayed for a probationary period of nine months. The Commission found that Mr. Lane, in January 2016, entered into Exclusive Buyer Agency Agreements with six clients as an agent for a real estate brokerage firm; that all six clients signed contracts with a home construction firm to purchase new construction homes and Mr. Lane did not upload these transaction documents to the brokerage firm’s management system as required by firm policy; that in August 2016, during the construction period and prior to closing, Mr. Lane affiliated with a new real estate brokerage firm and whited-out the name of his former brokerage firm as buyer agent firm on all the agency agreements and replaced the former firm with the new firm as the buyer agent firm; and, that Mr. Lane directed the home construction firm to pay his commission to his new firm instead of his former firm, but the home construction firm honored the original agency agreement and paid the former firm the brokerage commission.
ANN LOCKLEAR (Fayetteville) – Following a hearing, the Commission permanently revoked the broker license of Ms. Locklear effective August 7, 2017. The Commission found that Ms. Locklear: failed to provide all of her owner clients with an executed copy of the Property Management Agreement and copies of the leases for the subject properties; failed to reply to Letters of lnquiry issued by Commission staff; failed to provide all property file documents requested by Commission staff; failed to pay owners their rent proceeds in a timely manner; failed to pay vendors for services performed in a timely manner; failed to transfer tenant security deposits to new property management firms in a timely manner; failed to pay the taxes for her principal after promising to do so and deducting the amount from the owner draw; failed to perform monthly reconciliations, maintain a general ledger, maintain a journal, or maintain a trial balance in the trust accounts; failed to designate the trust accounts as “trust” or “escrow”; failed to identify the purpose for disbursements; failed to maintain cancelled checks; failed to identify the remitter, purpose, property owner, and the parties involved on deposit tickets; failed to provide an audit trail for the trust accounts; allowed for deficit spending and shortages in the accounts; and failed to notify the Commission that her firm was administratively dissolved by the North Carolina Secretary of State’s Office. Furthermore, a review of Ms. Locklear’s trust account bank records found numerous checks returned NSF.
CAVARETTA MARTIN (Rocky Mount) – By Consent, the Commission reprimanded Mr. Martin effective September 20, 2017. The Commission found that in August 2016, Mr. Martin represented a seller in a transaction under a listing agreement that had expired in May 2015; that Mr. Martin verbally negotiated an agreement between the seller and buyer for a lease with option to purchase, but used a standard offer to purchase contract and a standard seller financing addendum for the parties to sign; and that, Mr. Martin provided the buyer with the key to the property before the seller had signed the contract.
AARON M. MAUNE (New Bern) – By Consent, the Commission suspended the broker license of Mr. Maune for a period of six months effective July 1, 2017. The Commission then stayed the suspension for a probationary period ending January 1, 2018. The Commission found that Mr. Maune, acting as the qualifying broker of a real estate brokerage firm and as a time share project broker, failed to adequately supervise the time share sales conducted under his supervision and a provisional broker devised and carried out deceptive schemes designed to conceal the fact that the provisional broker was selling timeshares to unsuspecting buyers. The Commission noted that when the misrepresentations were uncovered, Mr. Maune took steps to investigate and remunerate buyers.
ALLEN CURTIS MILLER (Indian Trail) – By Consent, the Commission revoked the broker license of Mr. Miller effective May 10, 2017. The Commission found that Mr. Miller conducted an “agent preview” of a residential home listed for sale and during the preview handled personal items belonging to the owner that were not listed for sale.
HIEN DAI NGUYEN (Clarkston, Georgia) – By Consent, the Commission revoked the broker license of Mr. Nguyen effective May 24, 2017. The Commission found that Mr. Nguyen applied to the Commission on November 3, 2016 and represented that he had never held a real estate license in North Carolina or another state; that he had never been subject to a disciplinary action and that his only employment between 2000 and 2016 was as a tax preparer; that on November 7, 2016, Mr. Nguyen was licensed as a provisional broker; that on December 1, 2016, Mr. Nguyen requested a waiver of the broker-in-charge experience requirement citing his experience as a broker in-charge of a real estate firm in Georgia between 2009 and 2013; that the Georgia Real Estate Commission (GREC) records show that Mr. Nguyen was originally licensed July 30, 1996; that on April 21, 2010, after an investigation by the GREC, Mr. Nguyen signed a voluntary surrender of his Georgia real estate license; and that on May 12, 2010, the GREC revoked Mr. Nguyen’s real estate license effective May 22, 2010.
BRION KEITH OXENDINE (Lumberton) – By Consent, the Commission suspended the broker license of Mr. Oxendine for a period of 12 months effective September 19, 2017. The Commission then stayed the suspension for a probationary period through September 18, 2018. The Commission found in a trust account audit that Mr. Oxendine, acting as the qualifying broker and broker-in-charge of a licensed real estate brokerage firm, failed to maintain the front and back of checks, failed to maintain a personal funds ledger, failed to perform monthly reconciliations, failed to maintain a trial balance, failed to identify the purpose for the disbursement of rental funds, and failed to identify the purpose of deposits received; and that an overage in excess of $19,000 of unidentified funds was discovered in the trust account holding earnest money deposits and an overage in excess of $31,000 of unidentified funds was discovered in the management escrow account. The Commission noted that it does not appear that consumers have been harmed and Mr. Oxendine is taking steps to identify the owners of the funds for their return.
PATRIOT INVESTMENTS LLC NC (Pinehurst) – Following a hearing, the Commission permanently revoked the firm license of Patriot Investments LLC NC effective May 24, 2017. The Commission found that Patriot Investments LLC NC failed to respond to Letters of Inquiry sent by the Commission, failed to provide copies of a signed listing agreement to its client, provided brokerage services without entering into a written agency agreement with a separate client, and collected rent and tenant security deposits from a tenant but failed to place the trust monies in to a trust account, and failed to disburse the funds to its landlord-client.
DAVID W. RADFORD, JR. (Atlantic Beach) – Following a hearing, the Commission revoked the broker license of Mr. Radford effective May 15, 2017. The Commission found that Mr. Radford as qualifying broker and broker-in charge of a licensed firm performing property and HOA management services, failed to respond to Letters of Inquiry sent by the Commission, failed to provide any requested trust account documentation requested by the Commission, and failed to maintain trust accounts in accordance with Commission rule including failing to perform bank reconciliations since July 2009.
RADFORD ENTERPRISES LTD. (Atlantic Beach) – Following a hearing, the Commission revoked the firm license of Radford Enterprises Ltd. effective May 15, 2017. The Commission found that Radford Enterprises Ltd. performed property and HOA management services but failed to respond to Letters of Inquiry sent by the Commission, failed to provide any requested trust account documentation requested by the Commission, and failed to maintain trust accounts in accordance with Commission rule including failing to perform bank reconciliations since July 2009.
DAVID REDMAN (Mount Pleasant) – Following a hearing, the Commission permanently revoked the broker license of Mr. Redman effective June 27, 2017. The Commission found that Mr. Redman, acting as broker-in-charge, entered into management agreements with Home Owner’s Associations (“HOA’s”) and agreed to hold money in trust on their behalf. The Commission found that Mr. Redman failed to provide the HOA’s with financial documents despite multiple requests; failed to perform as required by the management agreements; failed to maintain copies of records as required by Commission rule; and failed to respond to Commission staff or provide records despite repeated requests to do so. Furthermore, the Commission found that one of Mr. Redman’s brokers made promises to a tenant about fixing certain issues affecting residential property in her role as manager of that property, yet she failed to make these repairs. Moreover, the Commission found that Mr. Redman, while managing a residential property, failed to provide the owner with a copy of the executed lease despite multiple requests; failed to deliver or account for rent proceeds; allowed a broker with the firm to tell the owner that eviction papers were filed against the tenant when, in fact, they were not; failed to deliver the Tenant Security Deposit to the owner for the subject property; and failed to disclose that the tenant was his daughter.
REDMAN PROPERTIES INC. (Mount Pleasant) – Following a hearing, the Commission permanently revoked the firm license of Redman Properties Inc. (“RPI”) effective June 27, 2017. The Commission found that RPI entered into management agreements with Home Owner’s Associations (“HOA’s”) and agreed to hold money in trust on their behalf. The Commission found that RPI, through its brokers, failed to provide the HOA’s with financial documents despite multiple requests; failed to perform as required by the management agreements; failed to maintain copies of records as required by Commission rule; and failed to respond to Commission staff or provide records despite repeated requests to do so. Furthermore, the Commission found that RPI, through its brokers, made promises to a tenant about fixing certain issues affecting residential property in its role as manager of that property, yet failed to make these repairs. Moreover, the Commission found that RPI managed a residential property and, through its brokers, failed to provide the owner with a copy of the executed lease despite multiple requests; failed to deliver or account for rent proceeds; told the owner that eviction papers were filed against the tenant when, in fact, they were not; failed to deliver the Tenant Security Deposit to the owner for the subject property; and failed to disclose that the tenant was the daughter of one of its brokers.
TAMMY RENEE REDMAN (Mount Pleasant) – Following a hearing, the Commission permanently revoked the broker license of Ms. Redman effective June 27, 2017. The Commission found that Ms. Redman entered into management agreements with Home Owner’s Associations (“HOA’s”) and agreed to hold money in trust on their behalf. The Commission found that Ms. Redman failed to provide the HOA’s with financial documents despite multiple requests; failed to perform as required by the management agreements; failed to maintain copies of records as required by Commission rule; and failed to respond to Commission staff or provide records despite repeated requests to do so. Furthermore, the Commission found that Ms. Redman made promises to a tenant about fixing certain issues affecting residential property in her role as manager of that property, yet she failed to make these repairs. Moreover, the Commission found that Ms. Redman, while managing a residential property, failed to provide the owner with a copy of the executed lease despite multiple requests; failed to deliver or account for rent proceeds; told the owner that eviction papers were filed against the tenant when, in fact, they were not; failed to deliver the Tenant Security Deposit to the owner for the subject property; and failed to disclose that the tenant was her daughter.
SHERREELEE SFERRA (Southern Pines) – By Consent, the Commission suspended Ms. Sferra for a period of two months effective May 1, 2017. One month was active with the remainder stayed for a probationary period until July 1, 2017. The Commission found that Ms. Sferra acted as a dual agent representing the seller and potential buyer; that the buyer was unable to obtain financing from a lender; that Ms. Sferra negotiated a lease-to-own agreement between buyer and seller and drafted a lease-to-own agreement by combining the standard North Carolina REALTORS® (NCR) Residential Rental Contract and Offer to Purchase and Contract as well as terms for seller financing using the NCR Seller Financing Addendum; that Ms. Sferra drafted conflicting and ambiguous terms in the lease-to-own and seller finance agreements; and that Ms. Sferra did not consult an attorney prior to drafting these terms and proposing them too her clients.
DALE JEFFREY SHORTT (Pinehurst) – Following a hearing, the Commission permanently revoked the broker license of Mr. Shortt effective May 24, 2017. The Commission found that Mr. Shortt as broker-in charge of a licensed firm failed to respond to Letters of Inquiry sent by the Commission, failed to provide copies of a signed listing agreement to his client, provided brokerage services without entering into a written agency agreement with a separate client, and collected rent and tenant security deposits from a tenant but failed to place the trust monies in to a trust account, and failed to disburse the funds to his landlord-client. The Commission also found that Mr. Shortt as Qualifying Broker for a second licensed firm, allowed the firm to operate without a broker-in-charge for approximately nine months, failed to maintain trust account records in accordance with Commission rules leading to inaccuracies in client account records, and falsely reported to the Commission that the firm was not conducting brokerage activity.
JUSTIN KIRK VAN LEUVAN (Morrisville) – By Consent, the Commission suspended the broker license of Mr. Leuvan for a period of one year effective August 17, 2017. One month of the suspension was active with the remainder stayed for a probationary period ending August 17, 2018. The Commission found that Mr. Van Leuvan failed to take at least one postlicensing course prior to his January 17, 2015, deadline and his license was placed on inactive status as a result; that Mr. Van Leuvan failed to complete a second postlicensing course by his January 17, 2016, deadline; that on February 16, 2016, the Commission placed his license on inactive status and sent Mr. Van Leuvan’s broker-in-charge notice of this action; that Mr. Van Leuvan also failed to complete required continuing education prior to the June 10, 2016, deadline; that despite the foregoing, Mr. Van Leuvan actively engaged in brokerage activities for approximately six months while his license was on inactive status; and that Mr. Van Leuvan was compensated for the transactions he completed while his license was inactive. The Commission noted that Mr. Van Leuvan has subsequently completed all required postlicensing courses, continuing education courses, and his license is on active status.
JAY CHRISTIAN WOODARD (Arapahoe) – By Consent, the Commission suspended the broker license of Mr. Woodard for a period of 36 months effective July 3, 2017. The Commission found that Mr. Woodard, upon his release from prison, reported his July 15, 2015 federal conviction of Conspiracy to Distribute and Possession with Intent to Distribute 500 Grams or More of Cocaine; that Mr. Woodard was incarcerated for fifteen (15) months and is currently serving a four-year probation term. The Commission notes that Respondent has completed a 500-hour voluntary treatment program; that Mr. Woodard was also convicted in 2000 for felonious trafficking in Cocaine and received a 16-20 month jail sentence and was placed on a 2-year supervised probation; and that Mr. Woodard disclosed this conviction on his 2005 application for licensure.
This article came from the October 2017-Vol48-2 edition of the bulletin.
By Corean E. Hamlin, Director, Education and Licensing
The annual period for renewal of your real estate license begins at midnight on May 15 and continues until June 30. If you do not renew by June 30, your license will expire.
The renewal fee is $45.00. Per Commission Rule 58A .0503, you must renew online at www.ncrec.gov. To renew online, login to your record on the Commission’s website, www.ncrec.gov, on or after May 15. Your PIN (password) will be the last four digits of your Social Security number unless you have changed it. (A broker who does not have the ability to renew online may renew by calling the Commission’s office between 8:30 a.m. and 5:00 p.m., Monday through Friday (919/875-3700).)
You may pay by Visa, MasterCard, Discover, or PayPal. A printable confirmation of renewal will appear on your screen when the process is complete. While logged in, be sure to verify and update all contact information, including address, telephone number, and email address. Note that you may designate your email address as “PRIVATE,” meaning it will be used exclusively for communication from the Commission to you; or “PUBLIC,” meaning it will be provided upon request to the public, including CE course sponsors and others.
If your renewal fee has not been received by the Commission by June 30, your license will expire. To reinstate an expired license, you must pay a $90 fee between July 1 and December 31. Failure to reinstate the former license by December 31 will result in your having to submit a new application, including application fee and criminal background report. You will also be required to take additional education and/or pass the state license examination. Refer to the “Reinstate your License” page on the Commission’s website (www.ncrec.gov) for detailed information regarding the reinstatement process.
Be sure to renew your license even if you do not complete your continuing education by June 10. By doing so, your license will be changed to inactive status on July 1, rather than expired. Refer to Rule 58A. 1703 for license activation instructions.
All broker license records are updated on July 1 to reflect license status as of that date. The Commission’s website will be unavailable on July 1 and 2, due to the annual records maintenance process.
NOTE: Brokers-in-Charge and BIC-Eligible brokers whose license statuses change to expired or inactive automatically lose BIC status and/or eligibility. In such case, a broker who wishes to regain BIC status must (1) return the license to active status; (2) meet the experience requirements for BIC designation; (3) take the 12-hour Broker-in-Charge Course before re-designation; and (4) send the Commission the BIC Declaration Form. Do NOT take the 12-hour BIC Course before your license is on active status! Refer to Rule 58A. 0110(m) for detailed instructions regarding re-designation as BIC.
This article came from the May 2017-Vol48-1 edition of the bulletin.
By Diana L. Carnes, Systems Administrator
Tired of keeping up with your paper pocket card? You may now choose to keep a digital pocket card.
In March 2017, the Commission rolled out a redesigned digital pocket card. Effective immediately, you may choose to either carry a paper pocket card or to store a digital pocket card on your smartphone or other electronic device. There is no fee for the digital pocket card.
You may view, download, or print your digital pocket card at any time by logging in to your online license record. Digital pockets cards for licensed firms may be accessed through the Qualifying Brokers’ online license records.
LICENSE RENEWAL: Brokers who renew their individual or firm licenses between May 15-June 30, 2017, and those who reinstate their licenses online between July 1-December 31, 2017, will receive paper pocket cards. The Commission will not issue paper pocket cards during the 2018-2019 renewal season.
NEW LICENSEES: Beginning July 1, 2017, paper pocket cards will no longer be issued to newly licensed brokers and firms. Instead, new licensees will be directed to download digital pocket cards upon issuance of the licenses. Brokers will still have the ability to request paper pocket cards by completing an online request form and submitting a $5.00 fee.
Whether you choose to use the paper or digital pocket card, remember that Commission Rule 58A .0101 requires you to retain the pocket card as evidence of licensure and be able to produce the card at all times.
This article came from the May 2017-Vol48-1 edition of the bulletin.
Fees for broker license reinstatement and license applications will change effective July 1, 2017.
The fee for license reinstatement will be $90 and the fee for both broker and firm license applications will be $100.
This article came from the May 2017-Vol48-1 edition of the bulletin.