Sheryl Graham, Consumer Protection Officer, spoke at HomeTown Realty’s Brokers Office Meeting on February 25.
MICHAEL ANTHONY BOWMAN (CHARLOTTE) – The Commission accepted the voluntary surrender of the broker license of Mr. Bowman effective February 1, 2021. The Commission dismissed without prejudice allegations that Mr. Bowman violated provisions of the Real Estate License Law and Commission rules. Mr. Bowman neither admitted nor denied misconduct.
BOWMAN REAL ESTATE LLC (CHARLOTTE) – The Commission accepted the voluntary surrender of the broker license of Bowman Real Estate LLC effective February 1, 2021. The Commission dismissed without prejudice allegations that Bowman Real Estate LLC violated provisions of the Real Estate License Law and Commission rules. Bowman Real Estate LLC neither admitted nor denied misconduct.
EMSLEY A. LANEY, III (WILMINGTON) – Following a hearing, the Commission permanently revoked the broker license of Mr. Laney effective December 31, 2020. The Commission found that Mr. Laney failed to maintain and retain trust account records. Mr. Laney also failed to safeguard and account for trust monies resulting in trust account shortages.
LANEY REAL ESTATE CO. (WILMINGTON) – Following a hearing, the Commission permanently revoked the firm license of Laney Real Estate CO. effective December 31, 2020. The Commission found that Laney Real Estate CO failed to maintain and retain trust account records. Laney Real Estate CO also failed to safeguard and account for trust monies resulting in trust account shortages.
DAVID MOSELEY PROCTOR (KINSTON) – By Consent, the Commission permanently revoked the broker license of Mr. Proctor effective January 15, 2021. The Commission found that Mr. Proctor failed to enter into an agency agreement with a buyer-client prior to submitting an offer to the seller. Mr. Proctor also failed to enter into an agency agreement before representing a seller-client. Mr. Proctor misrepresented to his seller-clients that his buyer-client did not want to purchase a second lot from the sellers. Mr. Proctor’s misrepresentation induced his seller-clients to sell the lot to him for $1.
CARMEN WHITLEY SHAW (NORTH MYRTLE BEACH) – By Consent, the Commission reprimanded Ms. Shaw effective January 1, 2021. The Commission found that Ms. Shaw, whose license has been on inactive status since July 1, 2016, was employed as an administrative assistant at a firm. In July, 2020, Ms. Shaw’s broker-in-charge made an appointment to show a property in Carolina Shores, NC, which included in the MLS that “Sellers require everyone entering home to wear mask and gloves” due to COVID-19. Instead of the broker-in-charge, Ms. Shaw showed the property to potential buyers, who were members of her family, and, while at the subject property, did not follow the directive of the seller that that masks and gloves needed to be worn at all times.
TEAM ANDERSON REALTY (HOLLY SPRINGS) – By Consent, the Commission reprimanded Team Anderson Realty effective February 1, 2021. The Commission found that the firm falsely advertised the square footage of a home in the MLS when the affiliated listing agent included a basement area with no heat source in the living area, contrary to the professional measurer’s description.
The Commission was dismayed by the violence that erupted at the United States Capitol building on January 6, 2021 and has received inquiries about the consequences of broker involvement.
While the Real Estate License Law and Commission rules are primarily focused on broker conduct connected to a real estate transaction, there are provisions in the law that address other conduct. The License Law provides that the Commission can discipline a broker who is found to be unworthy or incompetent to act as a real estate broker in a manner as to endanger the public interest. Likewise, disciplinary action can be taken against a broker who is convicted of certain crimes, including offenses showing professional unfitness. The Commission also considers character and criminal history when determining whether to license an applicant as a broker.
If you believe there has been a possible violation of the Real Estate License Law or Commission rules, please file a complaint with the Commission. If you are a broker and have been convicted of a criminal offense, you are required by law to report it on the Criminal Conviction Reporting form.
The Commission assesses each complaint and reported conviction on a case by case basis.
– By Fred Moreno, Chief Deputy Legal Counsel
The buyer of residential property filed a complaint against the listing agent, who was also the owner of the subject property.
The listing agent purchased the property through his LLC with thoughts of renovating it and reselling it later. Rather than renovating the property as he typically does, the listing agent decided to market the property “as is” and listed it for sale through his brokerage firm. The property was advertised as being connected to city water and sewer and the square footage was listed as the exact amount noted in tax records with the disclaimer “Sqft is from tax records”. The Listing agent did not measure the subject property to determine the actual square footage and assumed that the subject property was connected to city sewer because it was located in the center of the city and was connected to city water.
A buyer purchased the property from the listing agent, and began renovations. After adding a bathroom, his team attempted to connect that part of the home to the existing sewer line. However, after a week of digging all around the house, they discovered that the property was served by a septic system. In order to connect to the city sewer line, the buyer had to pay a connection fee of over $7k and wait one year for the city to run an extension line from the house to the street for an additional cost also of over $7k.
During the investigation, the firm and broker-in-charge were added as respondents due to the misrepresentation of the material fact regarding the septic system and the reliance upon tax records for the advertised square footage. The buyer agent was also added as a respondent for her failure to discover these issues during her representation of the buyer.
The Commission closed the case against the buyer agent and warned her that the statement on the listing of “Sqft is from tax records” should have been a red flag that the property was not measured. Therefore, the buyer agent should have counseled her client and suggested that he have the property measured. During the investigation, the listing agent, firm, and broker-in-charge have since come to a financial agreement with the buyer to address the issues. The Commission required the listing agent and broker-in-charge to also complete further education prior to closing the case against them. For further information, review the Commission’s “Residential Square Footage Guidelines” brochure. Moreover, it would be good practice to review a copy of the water and sewer utility bill prior to listing a property for sale to ensure your advertising is correct.
ERICA BARBARA ANDERSON (HOLLY SPRINGS) – By Consent, the Commission reprimanded Ms. Anderson effective February 1, 2021. The Commission found that as qualifying broker/broker-in-charge, Ms. Anderson’s firm falsely advertised the square footage of a home in the MLS when the affiliated listing agent included a basement area with no heat source in the living area, contrary to the professional measurer’s description. Ms. Anderson, as broker-in-charge, was responsible for all advertising for her firm.
KASSIEM SALFAR CARTER (CARY) – By Consent, the Commission suspended the broker license of Mr. Carter for a period of 3 years effective July 1, 2020. The Commission then stayed the suspension effective December 8, 2020.The Commission found that as the qualifying broker/broker-in-charge, the listing agent, and owner-seller of a property, Mr. Carter failed to disclose known material facts. The condo went under contract and was terminated four times before closing and Mr. Carter collected $4,000 in due diligence fees. A home inspection for one buyer revealed that there was no new carpeting, no wood flooring, no new air conditioning unit or ductwork, no new doubled paned windows, and no new sliding glass door as advertised by Mr. Carter. He also falsely advertised that the property qualified for the conventional financing when he knew that there were too many rental properties in the community for buyers to obtain conventional loans. Mr. Carter failed to provide measurement information for his square footage determination which matched tax records and only updated the MLS after Buyer #4 terminated their contract. The Commission noted that Mr. Carter refunded the due diligence and inspection fees to the first four buyers.
KARUNAKER REDDY DONURU (CONCORD) – By Consent, the Commission suspended the broker license of Mr. Donuru for a period of 18 months effective December 8, 2020. The Commission then stayed the suspension in its entirety and placed Mr. Donuru on probation until June 8, 2022. The Commission found that Mr. Donuru, acting as a dual agent, listed his personal residential real property for sale and failed to provide the signed disclosure form to the buyer until after the due diligence period expired.
BILLY W EZZELL (WILMINGTON) – By Consent, the Commission suspended the broker license of Mr.Ezzell for a period of 1 month effective December 1, 2020. The Commission found that, Mr. Ezzell timely self-reported that he pled guilty in December 2018 to five misdemeanor counts of attempting uttering of a forged instrument in connection with insurance business. Mr. Ezzell wrote insurance policies for five friends for the purpose of meeting sales quotas. Mr. Ezzell was sentenced to 45 days in jail, but his sentence was suspended and he was placed on three years of unsupervised probation. Mr. Ezzell was ordered to pay $5,466.49 in restitution to the insurance company, $352.50 in court costs, and to surrender his insurance license for three years. The friends were aware that Mr. Ezzell had written the insurance policies and paid premiums out of his own funds.
TARA LYNN GLENN (HOLLY SPRINGS) – By Consent, the Commission suspended the broker license of Ms. Glenn for a period of 1 month effective February 1, 2021. The Commission then stayed the suspension in its entirety and placed Ms. Glenn on probation until March 1, 2021. The Commission found that Ms. Glenn, acting as a listing agent, hired a vendor to calculate the square footage of the subject property. The vendor indicated that there was a total of 3,419 square feet of heated living area and 1,294 square feet of “partially finished area (below grade)” which was unheated. Ms. Glenn included the unheated area as “Living Area Below Grade” in the MLS representing a total of 4,713 square feet of heating living area instead of 3,419 square feet. In June, 2020, a buyer entered into a backup contract to purchase the subject property after the first contract terminated due to repair issues. The buyer discovered through a home inspection that the basement had no permanent heat source and terminated his contract due to the misrepresentation. After the termination, Ms. Glenn revised the MLS square footage information, and disclosed the repair issues, and the lack of a permanent heat source in the basement to Buyer #3.
TIMOTHY J GOODWIN (BRYSON CITY) – By Consent, the Commission permanently revoked the broker license of Mr. Goodwin effective July 15, 2020. The Commission found that as the qualifying broker and broker-in-charge, Mr. Goodwin’s firm has operated with shortages in its trust accounts since 2015. The management agreements failed to include a broker license number and, in some cases, failed to state the fair housing language in a clear and conspicuous manner. A review of the firm’s trust accounts revealed comingled funds, payments to unlicensed entities for brokerage services, failure to perform monthly reconciliations, funds not being deposited within three business days, and conversion of entrusted funds for personal/business use. In an attempt to cure shortages, Mr. Goodwin made deposits into the firm’s trust accounts in excess of $300,000. This money was obtained through loans in which the monthly payments were being deducted from entrusted funds. Furthermore, the trust account was used as collateral for the loan. The case was a result of a spot audit by Commission staff and did not arise from a consumer complaint.
ELLIS GREG HUNTER (CHARLOTTE) – By Consent, the Commission reprimanded Mr. Hunter effective November 11, 2020. The Commission found that in December 2018, Mr. Hunter voluntarily surrendered his bail bondsman license to the Department of Insurance. Following an investigation, the Department of Insurance found evidence that Mr. Hunter did not properly maintain records and deposit sufficient funds to cover liabilities. Mr. Hunter failed to timely report the voluntary surrender to the Commission.
TAMARA LEA JOHNSON (GREENSBORO) – By Consent, the Commission reprimanded Ms. Johnson effective December 20, 2020. The Commission found that as qualifying broker/broker-in-charge, in January 2020, Ms. Johnson listed a property and inserted language into the Agent Only Remarks of MLS that, “new windows due to broken seals have been ordered for 1st floor office/bedroom, 2nd floor bath and laundry, bedroom, and master.” In February, 2020, a buyer went under contract for the subject property with the understanding that 14 windows in the named rooms would be replaced. The Offer to Purchase and Contract did not reference the windows. In April, 2020, the buyer closed based upon Ms. Johnson’s representation that the windows would be replaced two days after closing. The vendor replaced window panes in certain windows at the subject property and told the buyer that he was not hired to replace entire windows. The buyer obtained an estimate of $7,400 to replace all of the windows in those rooms. Ms. Johnson and the buyer have settled with a payment of $5,531.66 to replace the windows noted on the buyer’s inspection report.
BRUCE WESTLY JUSTICE (FAYETTEVILLE) – By Consent, the Commission suspended the broker license of Mr. Justice for a period of 12 months effective September 15, 2020. The Commission then stayed the suspension effective December 8, 2020, and placed Mr. Justice on probation until September 14, 2021. The Commission found that, while acting as the broker-in-charge, a review of the firm’s trust accounts found: checks, deposit slips, and ledgers failed to contain identifying information as required by Commission rules; trust account reconciliations were not being performed; lack of trial balances; and that not all bank activity was being posted on the ledgers. Furthermore, an owner was holding two Tenant Security Deposits, when the management agreement required the firm to hold these funds. Finally, the firm’s management agreement with one owner stated that it was managing one property when, in fact, it was managing three separate properties on the owner’s behalf.
CRAWFORD JAMES LINEBERGER III (CHARLOTTE) – By Consent, the Commission reprimanded Mr. Lineberger effective January 1, 2021. The Commission found that in 2017, Mr. Lineberger was a member manager-owner of a property listed by another broker. Following an inspection for the buyers, he indicated to the buyer’s broker he disagreed with many of the inspector’s findings. After the completion of the transaction, Mr. Lineberger posted false and defamatory reviews of the inspector on various websites based upon information that Mr. Lineberger did not confirm prior to posting the reviews.
TAMMY KAYE SANDERS (WILMINGTON) – By Consent, the Commission reprimanded Ms. Sanders effective February 1, 2021. The Commission found that as qualifying broker/broker-in-charge, in June 2020, Ms. Sanders posted comments about protests on a neighborhood social media site and a neighbor filed a complaint anonymously with the Commission. Ms. Sanders obtained information about the complaining witness and her family and called the witness’ husband to demand an apology and a retraction of the complaint or she would take legal action. Ms. Sanders further stated that, as a broker, it took her five minutes to find out their personal information, that she could post the witness’ information on social media, and that they should consider themselves lucky they had gone after her instead of others that might wish them harm.
CYNTHIA S STANLEY (NORTH MYRTLE BEACH) – By Consent, the Commission reprimanded Ms. Stanley effective January 1, 2021. The Commission found that as qualifying broker/broker-in-charge, in July 2020, Ms. Stanley made an appointment to show a property which included in the MLS that “Sellers require everyone entering home to wear mask and gloves” due to COVID19. The seller also posted a sign on her front door stating, “no mask, no gloves, no entry. Premises under video surveillance.” In July 2020, an inactive broker employed by Ms. Stanley entered the house with two potential buyers. None were wearing gloves, all were wearing masks, but the inactive broker removed her mask as soon as she entered the house. Ms. Stanley was never present at the showing but after being notified by the listing agent, offered to have the house professionally cleaned although this could not occur until four days after the showing.
CASEY BROOKE STYERS (RALEIGH) – By Consent, the Commission reprimanded Ms. Styers effective December 8, 2020. The Commission found that the Exclusive Right to Sell Listing Agreement, Offer to Purchase and Contract, and Working with Real Estate Agents brochure were executed in the name of Ms. Styers’ unlicensed company and the Listing Agreement failed to include a termination date. The purchase contract called for a 90 day due diligence period with no fee and an Additional Earnest Money Deposit (“AEMD”) of $20,000 with no date listed to be paid. The buyers in the subject transaction represented to Ms. Styers that the AEMD was deposited with an escrow agent, prior to the end of the due diligence period. However, she was unable to confirm that this happened. After the due diligence period expired it was discovered that AEMD was never given to an escrow agent. The subject property did not close and Styers’ seller client never received the AEMD from the buyers. The Commission noted that Ms. Styers has applied for a firm license for her company.
LINDA HILL VAUGHN (GREENSBORO) – By Consent, the Commission suspended the broker license of Ms. Vaughn for a period of 36 months effective December 31, 2019. The Commission found that Ms. Vaughn acted as a dual agent in a residential short sale transaction. Before the lender gave final approval to her buyer client for the purchase of the home, Ms. Vaughn gave her buyer client the keys to allow the buyer client to make repairs to the roof. Ms. Vaughn failed to notify her seller client of this and failed to supervise any work being performed. Ms. Vaughn’s seller client later terminated both the listing agreement and the purchase contract and asked for the keys to be returned. The seller client later discovered that the home was damaged inside which included the floor being torn out, one bathroom gutted, and countertops missing.
WATERSHED LUXURY CABIN MANAGEMENT LLC (BRYSON CITY) – By Consent, the Commission revoked the firm license of Watershed Luxury Cabin Management LLC effective July 15, 2020. The Commission found that the firm has operated with shortages in its trust accounts since 2015. The firm’s management agreements failed to include a broker license number and, in some cases, failed to state the fair housing language in a clear and conspicuous manner. A review of the firm’s trust accounts revealed commingled funds, payments to unlicensed entities for brokerage services, failure to perform monthly reconciliations, funds not being deposited within three business days, and conversion of entrusted funds for personal/business use. In an attempt to cure shortages, the broker-in-charge made deposits into the firm’s trust accounts in excess of $300,000. This money was obtained through loans in which the monthly payments were being deducted from entrusted funds. Furthermore, the trust account was used as collateral for the loan. The case was a result of a spot audit by Commission staff and did not arise from a consumer complaint.
The North Carolina Department of Health and Human Services launched a new online tool to help North Carolinians know when they will be eligible to get their vaccine. Find My Vaccine Group walks users through a series of questions to determine which vaccine group they are in. People can then sign up to be notified when their group can get vaccinated.
“Given the very limited supplies we currently have, there may be wait times, but every North Carolinian has a spot. A spot for accurate information. A spot in line. A spot to take their shot,” said NCDHHS Secretary Mandy K. Cohen, M.D.
North Carolina’s goal is to vaccinate as many people as quickly and equitably as possible. Local vaccine providers have worked tirelessly to ramp up and vaccinate people under difficult circumstances. This past week, in response to indications that the federal government might base future allocations on the supply states have on hand, the state and providers worked to rapidly administer vaccinations and exhaust North Carolina’s current supply of first doses.
As of Sunday evening, 88% of all first doses have been reported as being administered. Providers reported administering more than 260,000 doses this past week. As of this morning, the Centers for Disease Control and Prevention ranked North Carolina 10th in total vaccines administered and 29th in vaccines administered per 100,000 people. These numbers were achieved by three actions the state took, including facilitating large-scale vaccination events, asking providers to aggressively ramp up their vaccine throughput this past week with any needed support from the state and working with many providers to stand up special events reaching underserved communities.
Beginning on Jan. 27, North Carolina will have only 120,000 doses to allocate across the entire state. A large portion of those doses are committed to the large-scale events planned several weeks ago to address the backlog in vaccine. As a result, many providers are getting small or no allocations for the coming week. Through no fault of their own, they will be postponing appointments.
“As long as we are getting such a small amount of vaccine as a state, there are going to be challenges and shortages as we try to ensure equitable access to vaccine, while getting shots into arms quickly. We understand this is hard for providers who are doing everything right,” Secretary Cohen said.
NCDHHS will be sharing more detailed guidance on the process for allocations for the coming weeks to ensure more transparency and certainty now that the state has largely exhausted the backlog of vaccine supply. Because vaccine supply is limited, states must vaccinate people in groups. To save lives and slow the spread of COVID-19, independent state and federal public health advisory committees recommend first protecting health care workers, people who are at the highest risk of being hospitalized or dying and those at high risk of exposure to COVID-19.
North Carolina is currently vaccinating people in Groups 1 and 2, which include health care workers, long-term care staff and residents and people 65 and older. Group 3 will include frontline essential workers; Group 4 will include adults at high risk for exposure and increased risk of severe illness; and Group 5 will include everyone. Detailed information about each group is online at YourShotYourSpot.nc.gov (English) or covid19.ncdhhs.gov/vacuna (Spanish).
Future updates will include a vaccine finder and other interactive features so that every North Carolinian has a spot for information and is able to take their shot.
Until the country begins to get ahead of the pandemic, the CDC says everyone should keep wearing a mask, waiting at least six feet apart and washing hands often. North Carolina continues to have high rates of cases, hospitalizations and the percent of tests that are positive. A secretarial directive remains in effect. People should stay home and only leave for essential purposes such as buying food, accessing health care and going to school or work.
For more information and to find your vaccine group, visit findmygroup.nc.gov.
This information is from – https://www.ncdhhs.gov/news/press-releases/ncdhhs-launches-%e2%80%9cfind-my-vaccine-group%e2%80%9d-help-north-carolinians-know-when-they
BRITTANY NICOLE JOHNSON (JACKSONVILLE) – Following a hearing, the Commission revoked the license of Ms. Johnson effective October 16, 2019. The Commission found that Ms. Johnson failed to provide a final tenant security deposit accounting to the tenant within 30 days of her lease termination. The Commission also found that during the investigation Ms. Johnson failed to respond to multiple Letters of Inquiry and all attempted communications.
MICHAEL GENE GREENE (ARDEN) – The Commission accepted the voluntary surrender of the broker license of Mr. Greene effective December 11, 2019. The Commission dismissed without prejudice allegations that Mr. Greene violated provisions of the Real Estate License Law and Commission rules. Mr. Greene neither admitted nor denied misconduct.
DAWN CROUSE CARRIER (NORTH WILKESBORO) – By Consent, the Commission permanently revoked the broker license of Ms. Carrier effective March 18, 2020. The Commission found that in 2015, Ms. Carrier was found guilty of 24 felony counts of obtaining property by false pretenses. In 2018, she was found guilty of two felony counts of obtaining property by false pretenses. As a paralegal, Ms. Carrier took money from the law firm where she was employed by falsifying documents to either increase the amount of commission checks being paid to her husband’s real estate firm above the amount entitled or to pay commissions when no commission was due. Ms. Carrier failed to report these convictions to the Commission as required.
RACHEL L ALLES (CHARLOTTE) – By Consent, the Commission reprimanded Ms. Alles effective June 17, 2020. The Commission found that Ms. Alles, as the broker-in-charge of a firm, failed to properly supervise a provisional broker (PB) who acted as the listing agent in a residential transaction. The subject property went under contract with a closing date on June 27. The contract had a contingency that the buyers must sell their property prior to closing on the subject property. On June 7, the buyer’s agent notified the PB that the closing had been delayed and that the subject property would therefore not close as scheduled on June 27. The PB failed to inform the seller client of this information until June 24. The seller client then incurred fees for storage expenses due to the delayed closing. The Commission notes that the seller has been reimbursed for storage expenses.
HIGHER TECH REALTY NC LLC (CHARLOTTE) – By Consent, the Commission reprimanded Higher Tech Realty effective June 17, 2020. The Commission found that Higher Tech Realty NC LLC, was the listing firm for a residential property in which a provisional broker (PB) acted as the listing agent. The subject property went under contract with a closing date on June 27. The contract had a contingency that the buyers must sell their out-of-state property prior to closing on the subject property. On June 7, the buyer’s agent notified the PB that the closing had been delayed and that the subject property would therefore not close as scheduled on June 27. The PB failed to inform the seller client of this information until June 24. The firm’s seller client then incurred fees for storage expenses due to the delayed closing. The Commission notes that the seller has been reimbursed for storage expenses.
DORIS E NIXON (THOMASVIILLE) – The Commission accepted the voluntary surrender of the broker license of Ms. Nixon effective June 18, 2020. The Commission dismissed without prejudice allegations that Ms. Nixon violated provisions of the Real Estate License Law and Commission rules. Ms. Nixon, neither admitted nor denied misconduct.
ROBERT S COHEN (FAYETTEVILLE) – By Consent, the Commission reprimanded Mr. Cohen effective July 1, 2020. The Commission found that, while acting as a real estate school director, Mr. Cohen failed to supervise School instructors and ensure compliance with Commission rules regarding School records. A review of School records discovered incomplete attendance records as well as misreporting of class completions for several licensees. The School failed to maintain all rosters for its courses. Class rosters that were maintained show that many were not reported to the Commission within seven days of course completion. Due to late reporting by the School, some licensees were placed on inactive status by the Commission when, in fact, they were up-to-date on their continuing education prior to the deadline.
TERRY FARR SCHOOL OF REAL ESTATE (FAYETTEVILLE) – By Consent, the Commission reprimanded the School effective July 1, 2020. The Commission found that the director failed to supervise School instructors and ensure compliance with Commission rules regarding School records. A review of School records discovered incomplete attendance records as well as misreporting of class completions for several licensees. The School failed to maintain all rosters for its courses. Class rosters that were maintained show that many were not reported to the Commission within seven days of course completion. Due to late reporting by the School, some licensees were placed on inactive status by the Commission when, in fact, they were up-to-date on their continuing education prior to the deadline.
KIMBERLY ANN BENNETT (FAYETTEVILLE) – By Consent, the Commission suspended the broker license of Ms. Bennett for a period of 2 months effective July 1, 2020. The Commission found that, while acting as a real estate school instructor, Ms. Bennett allowed a student to take two postlicensing courses, which overlapped, within a ten day period. This violated the Commission rule prohibiting students from being enrolled in more than 30 instructional hours within a seven day period. Ms. Bennett further allowed School records to misrepresent to the Commission as to when and with whom the student took a postlicensing course.
KR PROPERTY GROUP (CARY) – The Commission accepted the voluntary surrender of the broker license of KR Property Group effective July 1, 2020. The Commission dismissed without prejudice allegations that KR Property Group, violated provisions of the Real Estate License Law and Commission rules. KR Property Group, neither admitted nor denied misconduct.
CYDNEY WHITE METZ (CHARLOTTE) – By Consent, the Commission suspended the broker license of Ms. Metz for a period of 12 months effective September 15, 2020. The Commission then stayed the suspension in its entirety and placed Ms. Metz on probation until September 15, 2021. The Commission found that Ms. Metz acted as the listing agent for a property that went under contract with a closing date set for June 27. The contract had a contingency that the buyers must sell their property prior to closing on the subject property. On June 7, the buyers’ agent notified Ms. Metz that the closing had been delayed and that the subject property would therefore not close as scheduled on June 27. Ms. Metz failed to inform her seller client of this information until June 24. Ms. Metz’s seller client incurred fees for storage expenses due to the late notice. The Commission notes that the seller has been reimbursed for storage expenses.
KMBJ ENTERPRISE INC (FAYETTEVILLE) – By Consent, the Commission revoked the license of KMBJ Enterprises Inc. effective September 15, 2020. The Commission found that a review of KMBJ Enterprises Inc.’s trust accounts found: check, deposit slips, and ledgers failed to contain identifying information as required by Commission rules; trust account reconciliations were not being performed; lack of trial balances; and that not all bank activity was being posted on the ledgers. Furthermore, an owner was holding two tenant security deposits while the lease stated that the firm was holding these funds. Finally, the management agreement with one owner stated that the firm was managing one property when, in fact, it was managing three separate properties on the owner’s behalf.
JENNIFER MICHELLE RAMSEY (HUBERT) – By Consent, the Commission permanently revoked the license of Ms. Ramsey effective October 21, 2020. The Commission found that Ms. Ramsey failed to comply with Commission staff’s initial request for records. In October 2019, the trust account records for Ms. Ramsey’s firm were reviewed and several deficiencies were discovered including: ledgers and journals lacking required identification information, failure to perform reconciliations, deposit slips and bank statements were not designated “trust” or escrow”, lack of an audit trail, deficit spending, and shortages in the account. In a separate matter, a civil judgment was issued against Ms. Ramsey due a breach of her management agreement. In February 2020, the Commission sent a Letter of Inquiry to Ms. Ramsey to which she failed to respond. In May 2020, a Commission investigator travelled to Ms. Ramsey’s address of record where she refused to speak with the investigator.
ALLISON LEIGH CABE (KITTY HAWK) – The Commission accepted the voluntary surrender of the broker license of Ms. Cabe effective October 21, 2020. The Commission dismissed without prejudice allegations that Ms. Cabe violated provisions of the Real Estate License Law and Commission rules. Ms. Cabe neither admitted nor denied misconduct.
ALVAREZ JUAN POWELL II (CHARLOTTE) – By Consent, the Commission suspended the broker license of Mr. Powell II for a period of 12 months effective November 1, 2020. The Commission found that in applying for his real estate license, Mr. Powell II disclosed five criminal convictions including one misdemeanor cocaine possession conviction. Mr. Powell II signed a consent order in order to obtain his license. In November 2019, Mr. Powell II reported a second (felony) conviction for possession of cocaine and claimed that a friend left a bag of cocaine on the passenger seat of his car but a magistrate’s order indicated that “individually packaged baggies of cocaine weight 6.1 grams” were found. Mr. Powell II was sentenced to 4-14 months of imprisonment which was suspended and was placed on 1 year of supervised probation and ordered to complete 24 hours of community service.
BRANDON SCOTT LOCKARD (CHARLOTTE) By Consent, the Commission reprimanded Mr. Lockard effective December 8, 2020. The Commission found that Mr. Lockard acted as a buyer agent in a residential property purchase. The Buyer sent funds to closing via ACH transfer rather than by wire, which delayed funding and recording. Mr. Lockard gave the keys for the subject property to the Buyer at the signing and told the Buyer not to enter the subject property until the closing documents had been recorded. The Buyer began moving into the subject property on the date of signing, which was two days prior to funding and recording of the transaction. The Commission notes that the seller, upon notice, allowed the buyer to remain in the property prior to deed transfer.
ERICKA JANAE HOLLINGSWORTH (HOPE MILLS) – Following a hearing, the Commission reprimanded Ms. Hollingsworth effective December 10, 2019. The Commission found that Ms. Hollingsworth signed non-disclosure and confidentiality agreements while employed as a property manager for a firm, obtained client contact information as part of her employment with the firm, and, following termination, used the client information to solicit those clients for a property management firm she opened. The Commission also found that Ms. Hollingsworth, with no actual knowledge of the facts, falsely represented that her former firm had overloaded staff with clients following her termination.
Danielle Alston, Consumer Protection Auditor, spoke at Allen Tate Companies’ Business Meeting on December 1.
Stephen Fussell, Chief Consumer Protection Officer, spoke at the Jacksonville Board of Realtors meeting on December 17.
By Sheryl B. Graham, Consumer Protection Officer
After a transaction closed, the seller of the property filed a complaint with the Commission against the buyer’s agent. The buyer agent had been present at the nearly vacant property with the buyer during the home inspection. While there, the buyer agent texted the listing agent and asked if the seller was going to sell any of the items in the garage. The listing agent promptly answered via text “LOL. He doesn’t want to sell anything.” The buyer agent replied “Awesome!! We will pick through it then.” The listing agent followed up with another text stating “Hey! The seller said he isn’t interested in selling anything”
That evening, the seller contacted the listing agent to say two quilts were missing and things in the garage were “rummaged” through and set aside as if someone was coming back for more. The home inspection was the only scheduled appointment that day and the listing agent remembered the texts with the buyer agent earlier that day. The listing agent texted the buyer agent about the missing items and explained the seller wanted the items back within the hour or he would notify the police. When the buyer agent returned the items that evening, the seller was waiting and videotaped the return.
Although the identified items were brought back, the seller still expressed his distrust and questioned if everything was returned. During the investigation, the buyer agent explained she occasionally misreads information and that she read the listing agent’s text as saying “He isn’t interested in keeping anything.” The buyer agent stated she did not read the follow-up text from the listing agent, thinking it repeated the same message, until she had left the property with the items.
Consumers put their trust in brokers not only to guide them through transactions, but to safeguard their real and personal property. If a broker knows that they need to read something twice to ensure accuracy or ask someone to verify their statement or meaning, then do just that. In this case, reading twice before acting once would have saved a lot of frustration, embarrassment and distrust.
Once the buyer agent’s broker-in-charge learned of the issue, the Broker-in-charge stepped in and handled the remainder of the transaction, put the buyer agent on probation, and required the agent to take an ethics class. The Commission cautioned the buyer agent to exercise greater care to communicate clearly with other parties in a transaction and to safeguard personal items in properties listed for sale. All brokers can learn from this case to be clear when communicating via text. Texting on the fly can lead to misunderstandings and incomplete thoughts. Reread the communication and confirm your understanding or call the other person before taking action.
NOAH CHRISTOPHER GEORGE (HENDERSONVILLE) – By Consent, the Commission reprimanded Mr. George effective October 16, 2019. Mr. George timely reported his April 23, 2019, conviction of misdemeanor sexual battery. He received 60 days of confinement, which was suspended and instead placed on supervised probation for one year. The incident occurred during a personal New Year’s Eve outing, involved a woman he previously had known, and occurred while both were intoxicated.
PAULA MAE WHITTED (CLYDE) – By Consent, the Commission reprimanded Ms. Whitted effective October 16, 2019.The Commission found that on or about May 23, 2019, Ms. Whitted attended the General Update Course at JY Monk/Kaplan R.E. Education in Waynesville, North Carolina and an elective course at the same school. The instructor noted that Ms. Whitted’s behavior changed from inquisitive to “confrontational” during the fourth hour of the first class and that Ms. Whitted was drinking from a large takeout cup. During the second class, she became increasingly disruptive. A student in the second class called the Waynesville Police Department because the student was concerned that Ms. Whitted was going to drive herself home, she was approached by a police officer at the end of class for questioning. The officer administered a “breath” test and was told to have someone pick her up. A criminal background search revealed Ms. Whitted has a DWI (Level 5) conviction in 2001.
SAMUEL S ANDERSON (LUMBERTON) – By Consent, the Commission suspended the broker license of Mr. Anderson for a period of 24 months. The Commission then stayed the suspension after a 3 month active suspension period. Mr. Anderson executed a purchase contract to sell vacant land, which he personally owned and failed to transfer title after receiving the full purchase amount from the buyer or by the date specified in the contract. Mr. Anderson instead used the purchase money as earnest money for a later executed purchase contract with the original buyer’s daughters to construct a home on the property. Mr. Anderson failed to construct the new home and the buyers won a civil judgment against him. Mr. Anderson then signed his name on an offer to purchase as the selling agent without an agency agreement in place with the buyer and failed to maintain a copy of all records in accordance with Commission rules. He also failed to present all offers to his seller clients and instead, presented two offers to a closing attorney who believed them to be fully executed when they were not. Mr. Anderson’s trust account was not labeled “trust” or “escrow” and the records were not properly maintained.
RODNEY R. CREECH (WILSON) – By Consent, the Commission revoked the license of Mr. Creech effective January 1, 2020.The Commission found that on or about March 2019, Mr. Creech was bidding on a judicial sale property against another potential buyer with the bidding going back and forth for weeks. On or about March 28, 2019, Mr. Creech called the other buyer’s agent and started “Tell your client if he is willing to pay me $2,000, I’ll have my offer go away.” The buyer agent conveyed the message to his buyer and recommended not to do so. The competing buyer called Mr. Creech directly and he first stated that his client instructed him to ask for the money before admitting that Mr. Creech “and his business partner” were buyers and that he was not representing a client when asking for payment.
HANS PROPERTY MANAGEMENT & REALTY (CHARLOTTE) – The Commission accepted the voluntary surrender of the firm license of Hans Property Management & Realty effective March 18, 2020. The Commission dismissed without prejudice allegations that Hans Property Management & Realty violated provisions of the Real Estate License Law and Commission rules. Hans Property Management & Realty neither admitted nor denied misconduct.
AMY BENSON LOGAN (SWANSBORO) – By Consent, the Commission reprimanded Ms. Logan effective April 1, 2020. The Commission found that on or about April 2018, Ms. Logan, acting as listing agent, falsely represented in the MLS that the subject property had a square footage of 4,230. In her MLS listing, she noted in the agent remarks that there was an inconsistency in the listed and taxed square footage of 3,431. Ms. Logan stated that she did her own measurements and made those available to the potential buyer. Her measurements were a three page, hand drawn outline of the property for sale with incorrect math at the bottom of the drawing stating a square footage of 4,216. The buyers bought the home without an appraisal and discovered that the actual square footage of the home was 3,271, a difference of over 950 square feet or a 29% gross error in size.
TAMMI LORENE KNAPP (CARY) – By Consent, the Commission suspended the broker license of Ms. Knapp for a period of 2 years effective April 15, 2020. The Commission then stayed the suspension in its entirety and place Ms. Knapp on probation until March 31, 2022. The Commission found that Ms. Knapp, as qualifying broker/broker-in-charge of TLC Realty Group Inc., acting as listing agent for a property that was being “flipped,” failed to disclose known material facts. The house went under contract and was terminated five times after home inspections for each of the five buyers revealed an underground storage tank, an unpermitted deck addition that was deemed structurally unsound, a sagging main support beam, an HVAC system that was installed in 2003 instead of within the last 0-5 years as stated in the RPOADS, active termites, and that the electrical and mechanical permits for the property were pending. Ms. Knapp was apprised of the deficiencies with the house, but never updated the MLS to accurately reflect the known material facts or otherwise disclose the issues. She never advised her seller-client, who was also a licensee, to change the RPOADS from “No Representation” after any of the terminated contracts.
TLC REALTY GROUP INC (CARY) – By Consent, the Commission suspended the firm license of TLC Realty Group Inc. for a period of 2 years effective April 15, 2020. The Commission then stayed the suspension in its entirety and place TLC Realty Group Inc. on probation until March 31, 2022. The Commission found that TLC Realty Group Inc., as listing agent for a property that was being “flipped,” failed to disclose known material facts. The house went under contract and was terminated five times after home inspections for each of the five buyers revealed an underground storage tank, an unpermitted deck addition that was deemed structurally unsound, a sagging main support beam, an HVAC system that was installed in 2003 instead of within the last 0-5 years as stated in the RPOADS, active termites, and that the electrical and mechanical permits for the property were pending. The broker-in-charge was apprised of the deficiencies with the house, but never updated the MLS to accurately reflect the known material facts or otherwise disclose the issues. The broker-in-charge never advised her seller-client, who was also a licensee, to change the RPOADS from “No Representation” after any of the terminated contracts.
LIJUAN LISA HAN (CHARLOTTE) – By Consent, the Commission suspended the broker license of Ms. Knapp for a period of 2 years effective June 3, 2020. The Commission then stayed the suspension in its entirety. The Commission found that Ms. Han, acting as a qualifying broker of a firm, created the firm for compensation purposes only; therefore it had no designated broker-in-charge. Ms. Han then entered into Property Management Agreements on behalf of the firm, some even before it was licensed. A review of Ms. Han’s trust accounts found: that disbursements failed to identify their purpose; a failure to retain deposit tickets; a failure to maintain separate journals; lack of an audit trail; a failure to perform monthly reconciliations; and comingling. Ms. Han has since transferred all funds to a third party firm and no longer engages in property management.
JESSE THOMAS WILLIAMS III (GREENVILLE) – The Commission accepted the voluntary surrender of the broker license of Jesse Thomas Williams III effective June 17, 2020. The Commission dismissed without prejudice allegations that Jesse Thomas Williams III violated provisions of the Real Estate License Law and Commission rules. Jesse Thomas Williams III neither admitted nor denied misconduct.
CONWAY & WILLIAMS PROPERTIES INC (GREENVILLE) – The Commission accepted the voluntary surrender of the firm license of Conway & Williams Properties Inc., effective June 17, 2020. The Commission dismissed without prejudice allegations that Conway & Williams Properties Inc., violated provisions of the Real Estate License Law and Commission rules. Conway & Williams Properties Inc., neither admitted nor denied misconduct.
LARRY JAMES PARKER JR (ERWIN) – The Commission accepted the voluntary surrender of the broker license of Larry James Parker, Jr., effective June 17, 2020. The Commission dismissed without prejudice allegations that Larry James Parker, Jr., violated provisions of the Real Estate License Law and Commission rules. Larry James Parker, Jr., neither admitted nor denied misconduct.
RMG REALTY CO INC (ERWIN) – The Commission accepted the voluntary surrender of the firm license of RMG Realty Co., Inc., effective June 17, 2020. The Commission dismissed without prejudice allegations that RMG Realty Co., Inc., violated provisions of the Real Estate License Law and Commission rules. RMG Realty Co., Inc., neither admitted nor denied misconduct.
JONATHAN ALFORD MATTHEWS (RALEIGH) – Following a hearing, the Commission permanently revoked the broker license of Jonathan Alford Matthews effective October 1, 2020. The Commission found that after July 1, 2018, Mr. Matthews continued to provide brokerage and property management services while his license was on inactive status due to his failure to complete continuing education, that Mr. Matthews collected rents and tenant security deposits on behalf of his landlord-clients but failed to maintain those funds in a designated trust account, failed to remit those funds to clients, and converted those funds to his own use. The Commission further found that Mr. Matthews failed to inform the Commission of his address and contact information and failed to provide records to Commission staff upon request.
RDU BROKERS, INC. (RALEIGH) – Following a hearing, the Commission permanently revoked the broker license of RDU Brokers, Inc. effective October 1, 2020. The Commission found that after July 1, 2018, RDU Brokers, Inc. continued to provide brokerage and property management services through its qualifying broker while on inactive status due to the qualifying broker/broker-in-charge’s failure to complete continuing education, that the Firm collected rents and tenant security deposits on behalf of its landlord-clients but failed to maintain those funds in a designated trust account, failed to remit those funds to clients, and converted those funds to its own use. The Commission further found that the Firm’s qualifying broker failed to inform the Commission of the Firm’s address and contact information and failed to provide records to Commission staff upon request.