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February is Black History Month
February is Black History Month, where we honor and celebrate the history and legacy of African Americans in real estate and in our nation. We recognize the history of unfair housing practices in America, as well as the ongoing work to be done to end housing discrimination and to assure that all Americans have equal access to housing opportunities. We celebrate the increased diversity of our profession and the immense contributions of minority real estate brokers across our state.
New NCREC Licensee Facebook Group Now Live!
Join our new NCREC Licensee Group on Facebook to stay up to date on the most recent licensee questions, and important broker-specific information and updates from the NCREC.
Click the link to join: https://www.facebook.com/groups/1225190201719795
Disciplinary Actions
KELLIE DEANNE SANFORD (JACKSONVILLE) – By Consent, the Commission suspended the broker license of Sanford for a period of 6 months, effective July 1, 2022. The Commission found that in February 2021, Sanford purchased subject property in the name of a partnership they formed with their spouse. Sanford listed subject property for sale in June 2021. They advertised the property as containing a water line and septic on site. Sanford failed to disclose the broken water line or the existence of a temporary, above ground water line that was approximately 150 feet in length, installed by Sanford’s spouse.
Employment Opportunities Available
Are you interested in joining the staff of the North Carolina Real Estate Commission? From time to time, employment opportunities become available. They are posted on the Commission’s website under the “About Us” tab. Click here for more info.
The First Outreach Commission Meeting of 2023 Was a Success
The Commission held its January 2023 meeting in Wilmington, NC as the first location for the new year, as part of its outreach initiative. The Commission welcomed local brokers, the public, representatives of the Cape Fear Realtors®, and State representatives as well. If you missed it or other meetings you can view them here.
Weston’s Law Revised
In July 2021, 7-year old Weston Androw of Canton, Ohio became trapped between an elevator car and elevator shaft in the vacation home his family rented on North Carolina’s Outer Banks. EMS workers were able to free Weston from the elevator but were not successful in resuscitating the young boy. Weston’s tragic death spurred action by lawmakers to enact a new law regarding safety requirements for elevators in short-term rental properties. On July 8, 2022, Governor Cooper signed House Bill 619, also known as Weston’s law, which is designed to prevent future injuries and deaths resulting from gaps in certain residential elevators.
The law applies to elevators in private residences, cottages or similar accommodations that are rented for 15 or more calendar days per year. Similar to the North Carolina Elevator Safety Act, the law defines an elevator as any hoisting and lowering mechanism, with a car or platform, which moves in guides and serves two or more floors of a building or structure.
Weston’s Law allows for a maximum gap of 4 inches between the hoistway face of the landing door and the car door of an elevator. Additionally, the law mandates minimum force requirements for elevator doors and gates. All elevator designs must be able to withstand 75 pounds of applied force. When this amount of force is applied, the doors and gates must not deflect (bend or curve) more than ¾ of an inch, become permanently deformed, or be displaced from the guide or tracks.
If elevator doors or gates do not currently comply with the aforementioned safety requirements, the landlord of the rental property cannot allow for the elevator to be operated until the safety conditions are met.
If the gap between the car door and landing door is greater than 4 inches, then the landlord must install a permanent door space guard or door baffle of at least 31.75 inches in height. This addition must be able to withstand 75 pounds of force applied horizontally using a 4-inch diameter sphere.
Once the landlord installs a door, door space guard, door baffle or gate in compliance with these safety requirements, the landlord must provide the Commissioner of Insurance with either a statement signed by a professional elevator installer certifying installation or a receipt for purchase of the item that was installed, a statement signed by the landlord stating the date of installation, and photographs which depict the door, door space guard, door baffle or gate that was installed pursuant to the law.
Weston’s Law went into effect October 1, 2022. Property managers should advise their landlord-clients to implement measures that comply with the safety requirements. Any person who violates the landlord’s attempt to prevent use of an elevator until it meets these requirements may be charged with a Class 2 misdemeanor criminal offense. Property managers handling short-term rentals should take reasonable steps to ensure that any elevators comply with the new law and refrain from representing any landlord who has failed to comply but is continuing to allow the elevator to be used.
The January 2023 Commission meeting will be in Wilmington!
The North Carolina Real Estate Commission is pleased to announce that it will be holding its January 18-19, 2023, business meeting and hearings in Wilmington, North Carolina. You are cordially invited to join the Commission members for coffee on Wednesday, January 18th at 8:30, before the meeting begins, and to stay or attend the meeting at any time throughout the day. The business meeting is expected to begin Wednesday at 9:00 and to last until mid-afternoon.
The meeting will be held at:
EMBASSY SUITES WILMINGTON RIVERFRONT – SALON I
9 ESTELL LEE PLACE, WILMINGTON
The Commission members welcome the opportunity to meet you and hear your thoughts. While not required, we will appreciate your RSVP by January 11th to exec@ncrec.gov for planning purposes. We look forward to seeing you in Wilmington!
Staff Appearances
Fred Moreno, Chief Deputy Legal Counsel, spoke at the North Carolina Vacation Rental Managers Association meeting on December 6.
Nick Smith, Auditor/Investigator, spoke at the LOTSAR meeting on December 8.
Disciplinary Actions
PAUL DAVID TILLEY (HERTFORD) – Following a hearing, the Commission permanently revoked the broker license of Tilley effective November 9, 2022. The Commission found that Tilley failed to provide and review the Working with Real Estate Agents Disclosure with prospective buyers and sellers, failed to enter into written listing agreements before providing brokerage services, and forged client signatures on an agency disclosure, on agency agreements, and on agency termination agreements. The Commission further found that Tilley failed to provide the broker-in-charge with whom Tilley was affiliated with copies of written agency agreements and agency disclosures and that Tilley failed to report a criminal conviction within 60 days of judgment.
CONNIE B BYRD (RAEFORD) – By Consent, the Commission suspended the broker license of Byrd for a period of 12 months, effective December 10, 2022. The Commission then stayed the suspension in its entirety. The Commission found that Byrd acted as a property manager and maintained a rent trust account and a security deposit trust account. Byrd improperly commingled funds, maintained no records beyond the bank statements themselves and had excess overages in each account. Byrd allowed her property management firm license to expire. Byrd affiliated with a new firm and broker-in-charge but could not provide transaction documents related to property management in the new firm name.
TIFFANY MARIE BALANDA (Fayetteville) – By Consent, the Commission reprimanded Balanda, effective December 15, 2022. The Commission found that prior to licensure, Balanda participated in a social media exam study group that actively shared confidential exam information or encouraged others to gather exam information.
TIFFANY KATHRYN BOYD (Clayton) – By Consent, the Commission reprimanded Boyd, effective December 15, 2022. The Commission found that prior to licensure, Boyd participated in a social media exam study group that actively shared confidential exam information or encouraged others to gather exam information.
ELIZABETH GROGAN (Granite Falls) – By Consent, the Commission reprimanded Grogan, effective December 15, 2022. The Commission found that prior to licensure, Grogan participated in a social media exam study group that actively shared confidential exam information or encouraged others to gather exam information.
DESERAE NICHOLE HARRIS (Moyock) – By Consent, the Commission reprimanded Harris, effective December 15, 2022. The Commission found that prior to licensure, Harris participated in a social media exam study group that actively shared confidential exam information or encouraged others to gather exam information.
LAKEISHA GAIL MILLER (Jacksonville) – By Consent, the Commission reprimanded Miller, effective December 15, 2022. The Commission found that prior to licensure, Miller participated in a social media exam study group that actively shared confidential exam information or encouraged others to gather exam information.
EMMA NICHOLS (Mount Airy) – By Consent, the Commission reprimanded Nichols, effective December 15, 2022. The Commission found that prior to licensure, Nichols participated in a social media exam study group that actively shared confidential exam information or encouraged others to gather exam information.
VICTORIA GREEN SMITH (Fayetteville) – By Consent, the Commission reprimanded Smith, effective December 15, 2022. The Commission found that prior to licensure, Smith participated in a social media exam study group that actively shared confidential exam information or encouraged others to gather exam information.
ALEXIS MARGARET SYPNIEWSKI (Jacksonville) – By Consent, the Commission reprimanded Sypniewski, effective December 15, 2022. The Commission found that prior to licensure, Sypniewski participated in a social media exam study group that actively shared confidential exam information or encouraged others to gather exam information.
ERIN DENISE ULRICH (Rolesville) – By Consent, the Commission reprimanded Ulrich, effective December 15, 2022. The Commission found that prior to licensure, Ulrich participated in a social media exam study group that actively shared confidential exam information or encouraged others to gather exam information.
ANNA PATRICK WOMACK (Linden) – By Consent, the Commission reprimanded Womack, effective December 15, 2022. The Commission found that prior to licensure, Womack participated in a social media exam study group that actively shared confidential exam information or encouraged others to gather exam information.
TURNKEY VACATION RENTALS INC (ASHEVILLE) – By Consent, the Commission permanently revoked the license of Turnkey Vacation Rentals Inc. effective December 15, 2022. The Commission found that Turnkey Vacation Rentals Inc. managed a vacation rental property where the tenant cancelled due to a Stay at Home order issued during the Covid-19 Pandemic. Turnkey Vacation Rentals Inc. failed to issue a refund to the tenant despite re-renting the subject property after her cancellation. A review of Turnkey Vacation Rentals Inc’s lease agreements found that they failed to comply with all provisions of the NC Vacation Rental Act. A review of Turnkey Vacation Rentals Inc’s management agreements found that they lacked a definite termination date as well as the required anti-discrimination provision. Turnkey Vacation Rentals Inc. could not provide Commission staff with accounting records sufficient to perform an audit of its trust accounts as these monies are controlled by the out-of-state parent company employees and involve accounts from multiple states.
WILLIAM NATHANIEL THOMPSON (ASHEVILLE) – By Consent, the Commission suspended the broker license of Thompson for a period of 18 months, effective December 15, 2022. The Commission then stayed the suspension in its entirety and prohibited Thompson from acting as a broker-in-charge for a period of three years. The Commission found that Thompson acted as the broker-in-charge of a Firm, whose policy disallowed refunds to tenants who cancelled after a specified period, even if new tenants for the subject property were found for the same rental period. A review of Firm’s lease agreements found that they failed to comply with all provisions of the NC Vacation Rental Act. A review of Firm’s management agreements found that they lacked a definite termination date as well as the required anti-discrimination provision. Thompson could not provide Commission staff with accounting records sufficient to perform an audit of Firm’s trust accounts as these monies are controlled by the out-of-state parent company employees and involve accounts from multiple states.
RALPH JOSEPH TORTORA (WAKE FOREST) – By Consent, the Commission suspended the broker license of Tortora for a period of 9 months, effective December 15, 2022. The Commission then stayed the suspension in its entirety. The Commission found that in June 2021, Tortora, acting as listing agent for a property, advertised in MLS that a roof was 11+ years old and mistakenly checked a drop down data entry box indicating the roof had a 30-year warranty. A buyer offered to purchase the property as-is with no repairs and no due diligence period. In fact, the seller had not disclosed and Tortora did not confirm a roof warranty, and the buyer’s home inspection noted hail damage and needed roof repairs. The buyer was informed of the error and requested the seller make a claim on their home insurance which the seller declined. The buyer proceeded with the purchase.
DAVID H WEYBRIGHT (Nags Head) – By Consent, the Commission suspended the broker license of Weybright for a period of 12 months, effective December 6, 2022. The Commission then stayed the suspension in its entirety. The Commission found from a random audit that Weybright, acting as the broker-in-charge of a Firm, maintained two separate trust accounts whose monies were being “netted” and treated as one entire account, causing accounting issues. Furthermore, bank accounts were being reconciled to the property ledger trial balance rather than to the journal and deposit tickets lacked the information necessary to provide a clear audit trail. Numerous property ledgers noted deficit spending, disbursement records failed to identify the property or owner to whom it related, and a shortage was discovered. No clients or members of the public were negatively impacted, however, and Weybright has now corrected his accounting systems and practices. The trust accounts are now fully funded and in compliance with Commission rules.
KEES HOSPITALITY SERVICES LLC (Nags Head) – By Consent, the Commission suspended the broker license of Keys Hospitality Services LLC for a period of 12 months, effective December 6, 2022. The Commission then stayed the suspension in its entirety. The Commission found from a random audit of Kees Hospitality Services, LLC’s trust accounts that there were two separate trust accounts whose monies were being “netted” and treated as one entire account, causing accounting issues. Furthermore, bank accounts were being reconciled to the property ledger trial balance rather than to the journal and deposit tickets lacked the information necessary to provide a clear audit trail. Numerous property ledgers noted deficit spending, disbursement records failed to identify the property or owner to whom it relates, and a shortage was discovered. No clients or members of the public were negatively impacted, however, and Kees Hospitality Services, LLC has now corrected its accounting systems and practices. The trust accounts are now fully funded and in compliance with Commission rules.
KIMBERLY R SMITH (Charlotte) – By Consent, the Commission suspended the broker license of Goodwin for a period of 1 month, effective November 1, 2022. The Commission found that in June 2021, Smith acted as a listing agent for a property in Charlotte. Smith advertised the property in MLS as having “New HVAC” when, in fact, the HVAC was 18 years old and had only been refurbished. Smith failed to discover and accurately disclose this fact but instead relied on the seller’s statement. The buyers discovered the actual age at walk through and closed with a $3,000 credit.
LINDA HAMILTON HARDIN (GREENSBORO) – By Consent, the Commission reprimanded Hardin, effective September 30, 2022. The Commission found that in October 2021, Hardin acted as listing agent for a subject property. In the MLS, Hardin advertised that several appliances would convey with the property and the dishwasher, range, refrigerator, and water heater were “new.” Hardin did not verify the age of the appliances or the water heater. The actual ages for the appliances and water heater were between 5-8 years old.
BOXWELL INC. (Fayetteville) – By Consent, the Commission suspended the broker license of Boxwell Inc. for a period of 18 months, effective December 15, 2022. The Commission then stayed the suspension in its entirety. The Commission found that when it listed a property for sale, the Firm became aware of issues with the subject property’s roof after a buyer terminated due to discovering these issues during their home inspection. Boxwell Inc. then re-listed the subject property and failed to disclose the roof issues to the second buyer at the time their offer was made. Boxwell Inc. also engaged in property management. An audit of their trust accounts revealed a failure to perform 3-way reconciliations, funds being expended from owner accounts to pay for repairs in excess of funds available, which caused deficit spending, and a shortage. Boxwell Inc. was cooperative with Commission staff during the investigation and has brought their accounts into compliance.
DREW E BOXWELL (Fayetteville) – By Consent, the Commission suspended the broker license of Drew Boxwell for a period of 18 months, effective December 15, 2022. The Commission then stayed the suspension in its entirety and prohibited him from acting as a broker-in-charge for a period of one year. The Commission found that when a provisional broker, being supervised by Boxwell, listed a property for sale, they became aware of issues with the subject property’s roof after a buyer terminated due to discovering these issues during their home inspection. Boxwell’s firm then re-listed the subject property and failed to disclose the roof issues to the second buyer at the time their offer was made. Boxwell’s firm also engaged in property management. An audit of the trust accounts revealed a failure to perform 3-way reconciliations, funds being expended from owner accounts to pay for repairs in excess of funds available, which caused deficit spending, and a shortage. Boxwell was cooperative with Commission staff during the investigation and has brought the accounts into compliance.
The January 2023 Commission Meeting will be in Wilmington!
The North Carolina Real Estate Commission is pleased to announce that it will be holding its January 18-19, 2023, business meeting and hearings in Wilmington, North Carolina. You are cordially invited to join the Commission members for coffee on Wednesday, January 18th at 8:30, before the meeting begins, and to stay or attend the meeting at any time throughout the day. The business meeting is expected to begin Wednesday at 9:00 and to last until mid-afternoon.
The meeting will be held at:
EMBASSY SUITES WILMINGTON RIVERFRONT – SALON I
9 ESTELL LEE PLACE, WILMINGTON
The Commission members welcome the opportunity to meet you and hear your thoughts. While not required, we will appreciate your RSVP by January 11th to exec@ncrec.gov for planning purposes.