Commission Building Closed; Staff are Available by Phone, Email, and Webform

NC REAL ESTATE COMMISSION BUILDING CURRENTLY CLOSED TO ALL VISITORS; STAFF ARE AVAILABLE BY PHONE, EMAIL, WEB FORMS

The members and staff of the North Carolina Real Estate Commission are concerned about the health and safety of our licensees and the public. For the protection of everyone, effective Monday, March 23, 2020, our building is closed to all visitors. The Commission remains open for business via telephone, email, and at ncrec.gov, including applications, web forms, and more.

Contact us at 919-875-3700, via this website, or by email to the addresses listed below. We’re here to help. If you call and get a voice mail, please leave a message and we will return your call

Main Number – 919-875-3700

Education & Licensing – 919-875-3700; LS@ncrec.gov

Regulatory Affairs – 919-719-9180; RA@ncrec.gov

Administration – admin@ncrec.gov

Executive – exec@ncrec.gov

Disciplinary Actions

MOLLY REBEKAH WIGHT (Fayetteville) – By consent, the Commission suspended the broker license of Ms. Wight for a period of 4 months, effective April 1, 2020. The Commission then stayed the suspension period, effective April 1, 2020. The Commission found that in April 2019, Ms. Wight’s buyer-clients informed her that they needed a property that allowed chickens and had no limit on the number of dogs as they had three. The buyers also told Ms. Wight that they wanted to review any HOA restrictions before making an offer. Ms. Wight showed the buyers a property and informed them there were no restrictive covenants and no HOA for the subject property. Ms. Wight never asked the listing agent whether there were any restrictions. In May 2019, the buyers closed on the subject property and signed a document at the closing attorney’s law firm indicating that there was no HOA. As they were moving in, the buyers were informed by a neighbor that chickens were not allowed. The buyers contacted Ms. Wight who said she could not find any restrictions for the property at that time. Later that evening, Ms. Wight called the buyers and found the covenants which prohibited poultry and limited dogs to two.

RHONDA TIBBETTS COPP (Charlotte) – By Consent, the Commission reprimanded Ms. Copp effective May 1, 2020. The Commission found that in June 2017, Ms. Copp listed a commercial property and asked the seller if the property was on a septic or sewer. The seller responded “I never had anything pumped”. Ms. Copp assumed that meant that the property was attached to a city sewer and did not ask the seller any further questions or verify if the property was connected to city sewer. Ms. Copp advertised the subject property on the MLS as being connected to sewer. In April 2018, a buyer entered a contract to buy the subject property for use as a trade school. In July 2019, the buyer began experiencing plumbing issues and was told to check with the city regarding the city sewer system. The buyer called the city and learned the property was not connected to city sewer, but was on a septic system. Ms. Copp has settled with the buyer to the buyer’s satisfaction.

RPMS REALTY GROUP (Charlotte) – By Consent, the Commission reprimanded RPMS Realty Group effective May 1, 2020. The Commission found that in June 2017, RPMS Realty Group listed a commercial property and asked the seller if the property was on a septic or sewer. The seller responded “I never had anything pumped”. RPMS Realty Group assumed that meant that the property was attached to a city sewer and did not ask the seller any further questions or verify if the property was connected to city sewer. RPMS Realty Group advertised the subject property on the MLS as being connected to sewer. In April 2018, a buyer entered a contract to buy the subject property for use as a trade school. In July 2019, the buyer began experiencing plumbing issues and was told to check with the city regarding the city sewer system. The buyer called the city and learned the property was not connected to city sewer, but was on a septic system. RPMS Realty Group has settled with the buyer to the buyer’s satisfaction.

Emergency Rulemaking

By Melissa Vuotto, Paralegal Supervisor

On April 15, 2020, the Commission voted to approve another emergency rule, 21 NCAC 58G .0106, to further address the ongoing public health emergency. On March 26, 2020, two prior emergency rules went into effect: NCAC 58G .0104 and .0105. These two rules required schools and course sponsors to cancel or suspend all in-person courses and provided options for online delivery of courses. The new emergency rule, G .0106, extends restrictions on in-person courses until June 30, 2020, and allows schools, course sponsors, and education providers to offer the Update Course as a synchronous distance-learning course.

“Stop Upsetting My Bid!”

A Regulatory Affairs Case Study

By Shanna Hardy, Consumer Protection Officer

The Complaining Witness in this case was a buyer who was bidding on a judicial sale property (i.e. auction sale).  The Respondent was a broker-in-charge who was bidding on the same property.  The Complaining Witness was represented by a buyer agent.

Before an online auction bid is declared successful or is confirmed, the court places the property in a 10-day “upset bid period,” during which the court waits to see if a higher or better bid is submitted, resulting in an “upset” to the original bid.  In these types of transactions, the bidding continues until all but one party discontinues the submission of bids. A bidder is not permitted to interfere with or intimidate another bidder or to offer to pay another bidder not to bid as this would be considered to be illegal “bid-rigging.” 

In early 2019, the Complaining Witness and the Respondent began bidding on the same property. The bidding went back and forth for weeks.  The Respondent then called the Complaining Witness’ buyer agent and stated, “Tell your client if he is willing to pay me $2000, I’ll make my offer go away.”  The buyer agent informed the Complaining Witness about the Respondent’s offer and recommended against paying the $2000 to the Respondent.

The Complaining Witness called the Respondent directly and recorded the conversation between the two.  The Respondent first claimed that it was his unidentified client who directed him to request the payment but, when the Complaining Witness pressed further, stated that the $2000 was for himself and his business partner.  The Complaining Witness then filed a complaint against the Respondent.

The evidence in this case showed that the Respondent was, in fact, bidding on the property for himself and the business partner was his wife. The Commission found probable cause to have a hearing. but, Prior to the hearing, the Respondent voluntarily surrendered his license.  Had the case proceeded to a hearing, the Commission could have found that the Respondent’s statements to the Complaining Witness constituted a willful misrepresentation of material facts, that his actions were evidence that he was unworthy or incompetent to act as a real estate broker in a manner as to endanger the interest of the public, and/or that he had engaged in conduct that constituted improper, fraudulent, or dishonest dealings in violation of N.C.G.S § 93A-6(a)(1), (8) and/or (10).  While the Respondent was not acting as a broker in this matter, he was still subject to discipline for violating License Law while selling, leasing, or buying his own property under N.C.G.S § 93A-6(b)(3).

Commission Building Closed; Staff are Available by Phone, Email, and Webform

NC REAL ESTATE COMMISSION BUILDING CURRENTLY CLOSED TO ALL VISITORS; STAFF ARE AVAILABLE BY PHONE, EMAIL, WEB FORMS

The members and staff of the North Carolina Real Estate Commission are concerned about the health and safety of our licensees and the public. For the protection of everyone, effective Monday, March 23, 2020, our building is closed to all visitors. The Commission remains open for business via telephone, email, and at ncrec.gov, including applications, web forms, and more.

Contact us at 919-875-3700, via this website, or by email to the addresses listed below. We’re here to help. If you call and get a voice mail, please leave a message and we will return your call

Main Number – 919-875-3700

Education & Licensing – 919-875-3700; LS@ncrec.gov

Regulatory Affairs – 919-719-9180; RA@ncrec.gov

Administration – admin@ncrec.gov

Executive – exec@ncrec.gov

Mary Wills Bode has been appointed to the Commission

Mary Wills Bode of Raleigh has been appointed by Governor Roy Cooper to the North Carolina Real Estate Commission for a term ending July 21, 2022, announced Miriam J. Baer, Executive Director.

Mary Wills Bode of Raleigh has been appointed by Governor Roy Cooper to the North Carolina Real Estate Commission for the term ending July 21, 2022, announced Miriam J. Baer, Executive Director.

Bode is the Executive Director of North Carolinians for Redistricting Reform (NC4RR) in Raleigh, a bipartisan non-profit co-chaired by Tom Ross and Rep. Chuck McGrady that seeks to improve representative democracy through redistricting reform.

Prior to her role with NC4RR, Bode was a corporate attorney at Proskauer Rose LLP and Cahill Gordon & Reindel LLP in New York, where she specialized in capital markets, leveraged finance, as well as mergers and acquisitions.

While in law school, Bode worked for the Office of the Federal Public Defender for the Eastern District of North Carolina (EDNC), The Honorable U.S. Magistrate Judge William Webb, U.S. District Court, EDNC in Raleigh, North Carolina, as well as The Honorable Senior District Judge Malcolm Howard, U.S. District Court, EDNC in Greenville, North Carolina.

She was honored with The American Lawyer’s M&A Global Deal of the Year for her cross-border legal work in Europe in 2016.   Bode holds a Juris Doctorate from the University of North Carolina at Chapel Hill, where she was a member of the North Carolina Law Review, and Bachelor of Arts degree in Economics and Psychology from Wake Forest University.

Appearances

Jean Hobbs, Auditor/Investigator, recently spoke at Allen Tate’s business meeting in Charlotte NC.

Nick Smith, Consumer Protection Officer, recently spoke at Keller Williams of Greensboro’s Time Out Tuesday Series in Greensboro NC.

Marcia Waldron, Auditor, recently spoke at Greensboro Landlord Association in Greensboro NC.

Disciplinary Actions

JORGE JOSE TIPIANA (Garner) – Following a hearing, The Commission permanently revoked the broker license of Jorge Jose Tipiana effective February 4, 2020. The Commission found that Mr. Tipiana, as the seller of a property he renovated, collected $4000 in due diligence fees from five failed transactions in which Mr. Tipiana repeatedly failed to disclose material facts, including an unpermitted deck, open permits for mechanical and electrical changes, and a sagging structural beam.

JOHNNY E PRATHER (Murphy) – By Consent, the Commission reprimanded Mr. Prather effective March 10, 2020. The Commission found that Mr. Prather served as the broker-in-charge for a firm where one of its brokers advertised a residential property as having 3,264 square feet. This included a garage area and a “safe room” which were not heated by permanently installed conventional heating systems. Mr. Prather also failed to retain records of sketches, calculations, or other documentation that was used in reliance upon the advertised square footage.

WESTERN CAROLINA REAL ESTATE COMPANY INC. (Murphy) – By Consent, the Commission reprimanded Western Carolina Real Estate Company Inc. effective March 10, 2020. The Commission found that one of the firm’s brokers advertised a residential property as having 3,264 square feet. This included a garage area and a “safe room” which were not heated by permanently installed conventional heating systems. The Firm also failed to retain records of sketches, calculations, or other documentation that was used in reliance upon the advertised square footage.

NICKY ARNOLD GUTHRIE (Murphy) – By consent, the Commission suspended the broker license of Mr. Guthrie for a period of 12 months, effective March 10, 2020. The Commission then stayed the suspension for a probationary period through March 10, 2021. The Commission found that Mr. Guthrie listed a residential property for sale and advertised it as having 3,264 square feet. This included a garage area and a “safe room” which were not heated by permanently installed conventional heating systems. He also failed to retain records of sketches, calculations, or other documentation that he relied upon in determining the square footage and relied on the property tax card.

CARINA SCHOENING WOOLRICH (Murphy) – By Consent, the Commission reprimanded Ms. Woolrich effective March 10, 2020. The Commission found that Ms. Woolrich acted as a buyer agent in a residential transaction where the subject property was advertised as having 3,264 square feet. Ms. Woolrich, while informing her buyer clients that she believed the square footage being advertised wrongfully included 576 square feet for a garage, failed to suggest to her clients that they have the property professionally measured to determine the actual square footage. Ms. Woolrich also failed to inform the listing agent of the misrepresentation, a best practice standard, as defined under the Commission’s Residential Square Footage Guidelines.

EDWIN LLOYD MATTHIS JR. (Clinton) – By Consent, the Commission suspended the broker license of Mr. Matthis Jr. for a period of 1 year effective December 1, 2019. In February 2019, Mr. Matthis Jr. self-reported a Misdemeanor Assault on a female conviction more than 60 days following his conviction. He also failed to report two additional convictions, a Misdemeanor Simple Assault from February 2017 and a misdemeanor DV Protective Order Violation from June 2017. Mr. Matthis Jr. also failed to respond to multiple Letters of Inquiry.  

STEPHANIE RAY ANSON (Raleigh) – By consent, the Commission suspended the broker license of Ms. Anson for a period of 12 months, effective March 10, 2020. The Commission then stayed the suspension in its entirety. The Commission found that Ms. Anson’s firm listed a residential property for sale and, after going under contract, she received the Home Inspection report, termite report, and repair request via email from the buyer’s agent. Ms. Anson failed to review the documents or go over them with her principal. The termite report noted the presence of subterranean termites with no control measures having been performed along with damaged wood in the crawlspace. The home inspection revealed electrical, plumbing, and structural issues. Soon after the buyer terminated the contract, the subject property went under contract with a subsequent buyer. Ms. Anson failed to disclose the material facts noted in the above reports to this buyer or their agent upon receiving the offer. This buyer terminated the contract after his termite inspection found “extensive termite activity and damage”. Ms. Anson then listed a different residential property for sale and advertised it as a 3-bedroom home as having natural gas heat and being connected to city sewer. After closing, the buyer discovered that the property was on a septic system, which was permitted for two bedrooms, and had propane heat. The seller assisted the buyer in connecting the home to city sewer and the buyer has also converted the heat system to gas.

MEREDITH ANN LUNDBERG (Raleigh) – By consent, the Commission suspended the broker license of Ms. Lundberg for a period of 6 months, effective March 10, 2020. The Commission then stayed the suspension in its entirety. The Commission found that Ms. Lundberg’s firm listed a residential property for sale and, after going under contract, she received the Home Inspection report, termite report, and repair request via email from the buyer’s agent. She forwarded the information to her seller client, but failed to review the documents or go over them with her principal. The termite report noted the presence of subterranean termites with no control measures having been performed along with damaged wood in the crawlspace. The home inspection revealed electrical, plumbing, and structural issues. Soon after the buyer terminated the contract, the subject property went under contract with a subsequent buyer. Ms. Lundberg failed to disclose the material facts noted in the above reports to this buyer or their agent upon receiving the offer. This buyer terminated the contract after his termite inspection found “extensive termite activity and damage”.

KEVIN DESHAWN MORGAN (Durham) – By consent, the Commission suspended the broker license of Mr. Morgan for a period of 2 years, effective August 1, 2019. The Commission then stayed the remaining 1 year after a 1 year active suspension period, effective August 1, 2020. The Commission found that in September 2018, Mr. Morgan, acting as a buyer agent, falsified the signatures and initials of the buyers he represented on an “Exclusive Buyer Agency Agreement”, “Working with Real Estate Agents” brochure, and an “Offer To Purchase and Contract” in a residential sales transaction. Mr. Morgan conducted this real estate transaction with an inactive license after receiving notice from the Commission and a warning from his broker-in-charge, and failed to provide the transaction documents to his firm.

JANE ELLEN GOEBEL (Murphy) – By Consent, the Commission reprimanded Ms. Goebel effective June 3, 2020. The Commission found that Ms. Goebel acted as a buyer agent in a residential purchase transaction.  She failed to forward the property disclosure form for the subject property to her buyer clients until after the due diligence period expired. The seller indicated on the disclosure form that the subject property was located on a private road/street and that no maintenance agreement existed. The buyers terminated the contract when they discovered that they would be responsible for the maintenance of the private road/street.

MAXWELL LOUIS GOEBEL (Murphy) – By Consent, the Commission reprimanded Mr. Goebel effective June 3, 2020. The Commission found that Mr. Goebel acted as a buyer agent in a residential purchase transaction.  He failed to forward the property disclosure form for the subject property to his buyer clients until after the due diligence period expired. The seller indicated on the disclosure form that the subject property was located on a private road/street and that no maintenance agreement existed. The buyers terminated the contract when they discovered that they would be responsible for the maintenance of the private road/street.

Disciplinary Actions

ALI KHALESEH DEHGHAN (Eastern NC) – By Consent, the Commission suspended the broker license of Mr. Dehghan for a period of 2 years effective February 12, 2020. The Commission then stayed the suspension adding that the stayed suspension shall be terminated at such time as Mr. Dehghan is no longer on supervised probation. The Commission found that in December 2018, Mr. Dehghan was indicted in the US District Court, Eastern Division of NC, for knowingly possessing a firearm in violation of 18 UC 922(g)(5)(A) and 924. Mr. Dehghan pleaded guilty and was ordered to serve 6 months in prison, given credit for time served, and placed on supervised probation for 3 years.

PAUL EMANUEL JONES (Wilmington) – By Consent, the Commission reprimanded Mr. Jones effective February 12, 2020. The Commission found that in June 2019, Mr. Jones while attending a GENUP course, was disruptive to the point of being removed from the class.

KIMBERLY ANNE SARNO (Carthage) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Sarno effective February 12, 2020. The Commission dismissed without prejudice allegations that Ms. Sarno violated provisions of the Real Estate License Law and Commission rules. Ms. Sarno neither admitted nor denied misconduct.

WILLIAM B CHALK JR. (Morehead City) – By Consent, the Commission reprimanded Mr.  Chalk Jr. effective March 10, 2020. The Commission found that Mr. Chalk served as the broker-in-charge for a firm and that on or about December 2017, a Property Management Agreement was executed by the owner of the residential property, and an unlicensed employee, who handled all aspects of the management of the subject property, despite not being licensed. The firm deducted repair expenses from the owner’s proceeds, despite the lease requiring the tenant to be responsible for those repairs. The Lease Addendum, created by the unlicensed employee, required the tenant to make extensive repairs to the subject property in exchange for a reduced monthly rental payment.

CHALK & GIBBS INC. (Morehead City) – By Consent, the Commission reprimanded Chalk & Gibbs Inc. effective March 10, 2020. The Commission found that on or about December 2017, a Property Management Agreement was executed by the owner of the residential property, and an unlicensed employee, who handled all aspects of the management of the subject property, despite not being licensed. The firm deducted repair expenses from the owner’s proceeds, despite the lease requiring the tenant to be responsible for those repairs. The Lease Addendum, created by the unlicensed employee, required the tenant to make extensive repairs to the subject property in exchange for a reduced monthly rental payment.

Q MAXWELL ERNEST GILLAND (Charlotte) – By Consent, the Commission reprimanded the broker license of Mr. Gilland effective February 1, 2020. The Commission found that in 2017, Mr. Gilland, a provisional broker, referred a seller-client to his firm after learning confidential information about the seller-client. Subsequently, Mr. Gilland represented a buyer-client in a transaction with the firm’s seller-client. Mr. Gilland promised his buyer-client $5,000 to help the transaction close and issued a check for $5,000, but stopped payment on the check and failed to ever pay his buyer-client.  

STACY SECHREST PRANGER (High Point) – By Consent, the Commission reprimanded Ms. Pranger effective February 10, 2020 on certain conditions. The Commission found that Ms. Pranger, a broker-in-charge, failed to maintain her firm’s trust account records in compliance with Commission rules including failure to perform reconciliations, failure to do trial balances, failure to include required information on checks and deposits, and failure to accurately input expenses and deposits. Ms. Pranger also charged for services when fees were not clearly listed in the property management agreement. The Commission notes that Ms. Pranger and her firm are now in substantial compliance with Commission rules.

GATE CITY PROPERTY MANAGEMENT LLC (High Point) – By Consent, the Commission reprimanded Gate City Property Management LLC effective February 10, 2020, on certain conditions. The Commission found that the firm failed to maintain its trust account records in compliance with Commission rules including failure to perform reconciliations, failure to do trial balances, failure to include required information on checks and deposits, and failure to accurately input expenses and deposits. The firm also charged for services when fees were not clearly listed in the property management agreement. The Commission notes that the firm is now in substantial compliance with Commission rules.

GREGORY A FAULCON (Charlotte) – By Consent, the Commission reprimanded Mr.  Faulcon effective April 1, 2020. The Commission found that in April 2018, Mr. Faulcon listed a HUD foreclosure property and represented the property in the MLS as a three-bedroom mobile home. Mr. Faulcon did not obtain or review a copy of the septic permit, which indicated that the septic system was designed for two bedrooms. A buyer purchased the property with the understanding that it was a three-bedroom mobile home. Mr. Faulcon has since paid the buyer the cost to upgrade to a three bedroom system.

FAULCON & ASSOCIATES REAL ESTATE LLC (Charlotte) – By Consent, the Commission reprimanded Faulcon & Associates Real Estate LLC effective April 1, 2020. The Commission found that in April 2018, Faulcon & Associates Real Estate LLC listed a HUD foreclosure property and represented the property in the MLS as a three-bedroom mobile home. The firm did not obtain or review a copy of the septic permit, which indicated that the septic system was designed for two bedrooms. A buyer purchased the property with the understanding that it was a three-bedroom mobile home. The buyer later discovered the misrepresentation when selling the property when his listing agent obtained the septic permit as part of the listing process. The firm has since paid the buyer the cost to upgrade to a three bedroom system.

Staff Updates

Melissa Vuotto has been named Paralegal Supervisor in the Regulatory Affairs Division.