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.
We currently have opportunities available for the following positions:
Director of Education and Licensing
Auditor – Application Deadline June 28, 2022
Consumer Protection Officer – Application Deadline June 27, 2022
Network Administrator – Application deadline July 5, 2022
Click here for more information.
Sheryl Graham, Consumer Protection Officer, spoke at the REMAX United office meeting on May 17.
Steve Fussell, Chief Consumer Protection Officer, spoke at the Showcase Realty LLC meeting on May 18.
Shanna Hardy, Consumer Protection Officer, spoke at the REMAX Leading Edge office meeting on May 25.
CESAR AUGUSTO OSORIO (ARDEN) – The Commission accepted the voluntary surrender of the broker license of Cesar Osorio effective May 18, 2022. The Commission dismissed without prejudice allegations that Mr. Osorio violated provisions of the Real Estate License Law and Commission rules. Mr. Osorio neither admitted nor denied misconduct.
Have you ever wanted to attend a Real Estate Commission meeting to see what happens? If so, please join us at the Have you ever wanted to attend a Real Estate Commission meeting to see what happens? If so, please join us at the JB Duke Hotel, 230 Science Drive, Durham, NC, in Meeting Room C at 9 a.m. You are welcome to stay for a portion or for all of the Commission’s meeting. Mark your calendars for July 20!
Stephen L. Fussell, Chief CPO
In an effort to gain a competitive advantage, some prospective buyers may ask their agents to include escalation clauses in their offers. An escalation clause is one in which a prospective buyer expresses their willingness to pay a specific amount more than the highest competing buyer. The escalation clause may or may not indicate a maximum amount that the prospective buyer is willing to pay.
The Commission discourages the use of escalation clauses. Commission Rule A .0115 reads as follows: “A broker shall not disclose the price or other material terms contained in a party’s offer to purchase, sell, lease, rent, or to option real property to a competing party without the express authority of the offering party.” How does this rule impact escalation clauses? Assume, for example, that Buyer #1 offers to pay $1,000 more than any other offeror. In order to establish the price that Buyer #1 will pay, the brokers involved would have to share the terms of the highest offer with Buyer #1. Sharing these terms is prohibited except in the unlikely event that the other buyer consents to it.
Pitfalls of escalation clauses:
A seller’s best response in a multiple offer situation where one or more of the buyers is using an escalation clause will likely be to invite all buyers to make their highest and best offers. That way, each buyer is given an opportunity to buy the property at the price and terms they are willing to pay and the seller will receive the best offer from each buyer rather than an incremental offer from a buyer who wants to offer slightly more than a competing buyer.
Escalation clauses tend to focus on price. Listing agents should exercise care to advise seller-clients to consider more than the sales price in an offer. An offer from a well-qualified buyer who offers a lesser amount may be a wiser choice than a higher offer from a less-qualified buyer. Similarly, an offer from a buyer who has visited the property may be preferred over one who offers a high price sight unseen.
Brokers who choose to use escalation clauses should proceed with extreme caution. Real estate transactions are complex even without such clauses. Real estate transactions in busy markets with low inventory can be even more frantic. Escalation clauses may introduce confusion, anxiety, frustration and fraud. For these reasons, the Commission discourages their use.
BEECH MOUNTAIN VACATION RENTALS, INC (BEECH MOUNTAIN) – The Commission accepted the permanent voluntary surrender of the firm license of Beech Mountain Vacation Rentals, Inc., effective April 20, 2022. The Commission dismissed without prejudice allegations that Beech Mountain Vacation Rentals, Inc. violated provisions of the Real Estate License Law and Commission rules. Beech Mountain Vacation Rentals, Inc. neither admitted nor denied misconduct.
MARGARET ANNE DUNN (CHARLOTTE) – By Consent, the Commission reprimanded the broker license of Ms. Dunn, effective April 1, 2022. The Commission found that in June 2019, Ms. Dunn acted as a buyer agent for a client who purchased a residential property that included a mobile home. Ms. Dunn obtained and reviewed a copy of the septic permit during the due diligence period but failed to notice or discuss with her buyer-client that the septic permit specified three bedrooms while the subject property was listed as having four bedrooms.
JORDAN BLAKE ISRAEL (ARDEN) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Israel, effective April 20, 2022. The Commission dismissed without prejudice allegations that Mr. Israel violated provisions of the Real Estate License Law and Commission rules. Mr. Israel neither admitted nor denied misconduct.
TRISTAN BISHOP PAN (RALEIGH) – By Consent, the Commission revoked the broker license of Mr. Pan effective April 20, 2022. The Commission found that in September, 2020, Mr. Pan was indicted by the United States Attorney, Eastern District of North Carolina, Western Division, in Case No. 5:20-CR-436-1B0(4) on 6 counts involving wire fraud, bank fraud, making false statements to a financial institution, and devising a scheme to defraud and obtain money and property by defrauding a financial institution, the details of which are set forth in the indictment. On or about March 15, 2022, Mr. Pan pled guilty to 1 count of wire fraud in violation of 18 USC § 1343 and the remaining counts were dismissed. Mr. Pan was sentenced to be committed to federal prison for 1-20 months, after which he will be placed on supervised release for 1-3 years on condition, including that he pay restitution, cooperate in the collection of DNA as directed, and forfeit certain assets.
PREMIER TRIAD VENTURES LLC (GREENSBORO) – By Consent, the Commission reprimanded the firm license of Premier Triad Ventures LLC, effective April 20, 2022. The Commission found that from November 2019 through July 2021, the Firm, due to inadequate policy and practice, allowed for entities not properly licensed with the Commission to receive compensation for real estate brokerage activities.
HAMPTON H RUTLEDGE (FAYETTEVILLE) – Following a hearing, the Commission suspended the broker license of Mr. Rutledge for three years effective September 15, 2021. The Commission then stayed the suspension effective March 15, 2022, following Mr. Rutledge’s completion of certain continuing education and postlicensing courses. The Commission found that Mr. Rutledge, as qualifying broker of a firm doing property management, failed to ensure that the firm’s broker-in-charge maintained the firm’s trust accounts and the records pertaining thereto in compliance with Commission rules, and that the firm’s Chief Financial Officer converted trust monies to his own use, leading to a shortage in both the rent and security deposit trust accounts of at least $435,000. The Commission further found that the firm charged a number of landlord-clients an unexplained $250 fee and failed to timely refund the fee after promising to do so.
TOLL BROTHERS REAL ESTATE INC (RALEIGH) – By Consent, the Commission suspended the firm license of Toll Brothers Real Estate for a period of 2 years, effective March 15, 2022. The Commission then stayed the suspension effective March 15, 2022. The Commission found the Firm was involved in selling to five buyers, lots and new construction homes in a subdivision that its affiliate had developed. The lots were located on a street which appeared to be a cul-de-sac and the Firm’s MLS listing directed potential buyers to turn “into the cul-de-sac” to get to the listed lots. In fact, the adjacent parcel had a right-of-way to connect a private drive to the cul-de-sac. In the purchase agreement documents, the Firm and its affiliate expressly encouraged buyers to examine surrounding properties and referred them to the municipal records that included the re-zoning and the right-of-way described above. The buyers, in contracting to purchase, signed documentation noting that they were “aware that some home sites are located near undeveloped property that is adjacent to the Community that could be developed in the future.”
KARINA VISHNYA (HICKORY) – The Commission accepted the voluntary surrender of the broker license of Ms. Vishnya for a period of five years, effective April 20, 2022. The Commission dismissed without prejudice allegations that Ms. Vishnya violated provisions of the Real Estate License Law and Commission rules. Ms. Vishnya neither admitted nor denied misconduct.
Sheryl Graham, Consumer Protection Officer, spoke at the HTR Southern Properties office meeting on April 5.
Janet Thoren, Director of Regulatory Affairs, spoke at the Lantern Realty and Development LLC meeting on April 13.
Bruce Rinne, Information Officer, spoke at the United Real Estate-Queen City meeting on April 26.
Miriam Baer, ExecutiveDirector of NC Real Estate Commission, spoke at the Pointe Realty Group sales meeting on April 27.
Janet Thoren, Director of Regulatory Affairs, spoke at the Outer Banks Association of REALTORS General Membership meeting on April 28.
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.
We currently have available the following position:
Director of Education and Licensing is currently available at the Commission’s office in Raleigh. A summary of the position and other employment opportunities are available on the Commission’s website. – Application deadline May 12, 2022.
Click here for more information.
The Commission’s auditors visit brokers-in-charge throughout the state to perform spot audits of trust accounts. This case is an example of why brokers-in-charge are now required by Rule A.0110 to take the Basic Trust Account Course within 120 days of assuming responsibility for a trust account (but no more than every three years). In the spot audit of a real estate firm that performed both sales and long term property management, the auditor found multiple areas of concern. Unfortunately, the broker-in-charge had been making mistakes in their trust account recordkeeping for so long that it was impossible to determine exactly how much of the money in the trust account belonged to which owner. Being able to identify exactly whose money is in the bank is a primary reason for the trust accounting rules – A.0116, A.0117, and A.0118.
The Ledger Problem:
The first problem the broker-in-charge had was that the software used for the property management accounting created ledgers where rent was treated like an accounts receivable, meaning that at the beginning of the month the rent populated as being due from the tenant. This is perfectly fine for tenant ledgers and tracking outstanding balances. However, Rule A .0117(c)(4) also requires that property or owner ledgers be maintained, and this firm did not have either. Property or owner ledgers should show the exact amount of money on hand, at any given time, for a particular property or owner. The problem with ledgers that populate an amount due is that, if the tenant does not pay their rent for that month or multiple months, there is a balance on the ledger that is an outstanding amount owed by the tenant when the ledger should indicate the amount of money on hand for the owner.
Sometimes when ledgers do not exist or are unclear, auditors use owner statements as a substitute, which is what we attempted to do on this audit. In this case, many owner statements had negative balances. Negative balance owner statements indicate that the expenses exceeded the income for that particular owner. When more money is spent on a property than the owner has in the trust account, it usually means that another owner/client has just paid those expenses. This is one form of deficit spending.
The Journal Problem:
Deposits and withdrawals on the ledgers and owner statements should be traceable to a journal. A journal is a check register where all deposits and withdrawals in a trust account are recorded. In this case, a journal was maintained but individual entries were not recorded. Instead, one amount was entered for all deposits on one day and another lump sum entry was made for all the withdrawals. There was no way to trace deposits or withdrawals on the journal to the ledgers or to confirm that all the journal entries were being posted.
The Reconciliation Problem:
In addition, there was no way to reconcile to the journal, which meant that the required three-way reconciliations were not being performed. The bank statements were not being reconciled against the journal because there was no way to confirm that the journal was accurate. The journal was not reconciled against the trial balance because no trial balance was maintained.
A trial balance is the sum of all of the ledgers at a set cutoff date, usually the same date as the bank statement. If a property management firm represents fifty owners, then every month the balance of each of those fifty owner ledgers should be totaled. This total should match, exactly, the reconciled bank balance and journal balance. In this case, since there were no owner or property ledgers, a trial balance could not be produced.
The Shortage Problem:
A true trial balance could not be created from the owner statements because of all the negative balances. Using the owner statements, even with the negative balances, it showed that the property management trust account had a significant shortage.
As seen in this case, failure to maintain trust account records properly at any stage in the process can have a domino effect. The auditor found other more minor infractions in addition to the major problems. The firm was given an opportunity to correct the deficiencies but they were unsuccessful in bringing the trust account into compliance and, therefore, received a disciplinary sanction. Trust account problems and shortages do not necessarily stem from theft or evil intent. A shortage can result if the broker-in-charge is not taking the necessary steps to maintain records. If any of the above sounds familiar (or unfamiliar) and you maintain a trust account, then take the trust account course and start to work on fixing your trust account records. It is only a matter of time before an auditor from the Commission will be knocking on your door.
BRUCE M ALEXANDER (ASHEVILLE) – By Consent, the Commission suspended the broker license of Mr. Alexander for a period of 1 year, effective March 15, 2022. The Commission then stayed the suspension effective March 15, 2022. The Commission found that Mr. Alexander acting as qualifying broker/broker-in-charge of a firm and also licensed by the NC Licensing Board for General Contractors, failed to report that, by Consent Order dated October 21, 2020, Mr. Alexander was disciplined by the NC Licensing Board for General Contractors. Pursuant to the Consent Order with the Contractors’ Board, Mr. Alexander was suspended for one year with three months active, ordered to pay a $5000 fine, and ordered to complete two courses.
JACQUELINE N BARKEY (RALEIGH) – By Consent, the Commission reprimanded Ms. Barkey, effective March 15, 2022. The Commission found that as on-site agent /sales manager for a firm, Ms. Barkey was involved in selling lots and new construction homes in a subdivision that its affiliate had developed. The lots were located on a street which appeared to be a cul-de-sac and Ms. Barkey’s MLS listing directed potential buyers to turn “into the cul-de-sac” to get to the listed lots. Ms. Barkey represented to certain buyers that the lot they were interested in was in a cul-de-sac and would have a buffer of trees between the subdivision and a commercial development. In fact, the adjacent parcel had a right-of-way to connect a private drive to the cul-de-sac although both representations that the owner of the adjoining property had made in its re-zoning application and express conditions placed on the re-zoning when it was approved indicated a buffer would be maintained. In contracting to purchase, the buyer signed documents that agreed that they were “aware that some home sites are located near undeveloped property that is adjacent to the Community that could be developed in the future.”
MICHAEL JAMES BLACKBURN (CHARLOTTE) – By Consent, the Commission suspended the broker license of Mr. Blackburn for a period of 1 year, effective March 10, 2022. The Commission then stayed the suspension effective March 10, 2022. The Commission found that Mr. Blackburn acted as the broker-in-charge in three separate residential transactions. In one transaction, Mr. Blackburn’s broker failed to ensure that her seller client addressed all material issues noted on a previous buyer’s home inspection report prior to re-listing the property and/or failed to disclose any outstanding material items which were not corrected. Mr. Blackburn’s broker also initially advertised the subject property as having an outdoor pool along with hardwood and tile floors, when it did not. In the second transaction, Mr. Blackburn’s broker failed to pull the septic permit prior to listing the property as a 5-bedroom home. The septic permit only allowed for 3-bedroom occupancy. In the third transaction, Mr. Blackburn’s vendor buried parts of the outdoor pool beneath the back yard instead of removing it all from the property. The seller has now excavated and removed all of the items from beneath the yard after taking the home off the market. The listing agreement with Mr. Blackburn’s broker failed to include her license number and failed to comply with Commission rules by not placing the fair housing language in a clear and conspicuous manner.
PHILLIP B BOLLINGER (LENOIR) – By Consent, the Commission reprimanded Mr. Bollinger, effective March 10, 2022. The Commission found that a provisional broker (PB) under Mr. Bollinger’s supervision acted as the buyer agent in a residential purchase transaction. After the buyer-client went under contract, the PB recommended that the client use a licensed inspector or PB’s father, who was not a licensed inspector, to perform the home inspection for the subject property. The buyer-client chose to use PB’s father, which was the less expensive option. PB and the buyer-client were present during the inspection. PB’s father did not produce a report of any findings; however, PB instead took notes of any issues. Around ten (10) months after closing, the buyer-client had a home inspection performed by a licensed inspector. That inspection discovered issues not identified by PB’s father such as evidence of water intrusion to the home’s foundation, a water leak in the master bathtub, improper ventilation of the wood stove, and issues with the electrical panel. The Commission notes that Mr. Bollinger does have a firm policy for agents to recommend only licensed professionals to clients.
CLAY-TIN LLC (LENOIR) – By Consent, the Commission reprimanded Clay-Tin LLC, effective March 10, 2022. The Commission found that a provisional broker (PB) the firm acted as the buyer agent in a residential purchase transaction. After the buyer-client went under contract, PB recommended that the client use a licensed inspector or PB’s father, who was not a licensed inspector, to perform the home inspection for the subject property. The buyer-client chose to use PB’s father, which was the less expensive option. PB and the buyer-client were present during the inspection. PB’s father did not produce a report of any findings; however, PB instead took notes of any issues. Around ten (10) months after closing, the buyer-client had a home inspection performed by a licensed inspector. That inspection discovered issues not identified by PB’s father such as evidence of water intrusion to the home’s foundation, a water leak in the master bathtub, improper ventilation of the wood stove, and issues with the electrical panel. The Commission notes that Clay-Tin LLC does have a firm policy for agents to recommend only licensed professionals to clients.
MICHAEL PERRY GUPTON (LITTLETON) – By Consent, the Commission suspended the broker license of Mr. Gupton for a period of 60 days, effective March 1, 2022. The Commission then stayed the suspension in its entirety. The Commission found that in 2021, Mr. Gupton did not exercise reasonable care in negotiating contracts in which he was a Dual Agent.
VERRIA HAIRSTON (CHARLOTTE) – By Consent, the Commission suspended the broker license of Ms. Hairston for a period of 1 year, effective March 10, 2022. The Commission then stayed the suspension effective March 10, 2022. The Commission found that Ms. Hairston acted as the listing agent in three separate residential transactions. In one transaction, Ms. Hairston failed to ensure that her seller client addressed all material issues noted on a previous buyer’s home inspection report prior to re-listing the property and/or failed to disclose any outstanding material items which were not corrected. Ms. Hairston also initially advertised the subject property as having an outdoor pool along with hardwood and tile floors, when it did not. In the second transaction, Ms. Hairston failed to pull the septic permit prior to listing the property as a 5-bedroom home. The septic permit only allowed for 3-bedroom occupancy. In the third transaction, Ms. Hairston’s vendor buried parts of the outdoor pool beneath the back yard instead of removing it all from the property. The seller has now excavated and removed all of the items from beneath the yard after taking the home off the market. Ms. Hairston’s listing agreement failed to include her broker license number and failed to comply with Commission rules by not placing the fair housing language in a clear and conspicuous manner.
DOUGLAS RICHARD HINDMAN (RALEIGH) – By Consent, the Commission reprimanded Mr. Hindman, effective March 15, 2022. The Commission found that as on-site agent /sales manager for a firm, Mr. Hindman was involved in selling lots and new construction homes in a subdivision that its affiliate had developed. The lots were located on a street which appeared to be a cul-de-sac and Mr. Hindman’s MLS listing directed potential buyers to turn “into the cul-de-sac” to get to the listed lots.. In fact, the adjacent parcel had a right-of-way to connect a private drive to the cul-de-sac although both representations that the owner of the adjoining property had made in its re-zoning application and express conditions placed on the re-zoning when it was approved, indicated a buffer would be maintained. In contracting to purchase, the buyer signed documents that agreed that they were “aware that some home sites are located near undeveloped property that is adjacent to the Community that could be developed in the future.”
SONMI MOORE LEWIS (GREENBORO) – By Consent, the Commission suspended the broker license of Ms. Lewis for a period of 1 year, effective February 15, 2022. The Commission then stayed the suspension in its entirety. The Commission found that as qualifying broker/broker-in-charge of a firm, a review of Ms. Lewis’ trust account records showed that Ms. Lewis failed to retain check backs, failed to identify the purpose of remittance on checks and failed to reconcile timely leading to an inability to create an accurate audit trail. Ms. Lewis identified an overage of approximately $4000 in approximately $140,000 in held trust monies.
JOHN JUNIOUS LEWIS III (GREENBORO) – By Consent, the Commission suspended the broker license of Mr. Lewis for a period of 1 year, effective February 15, 2022. The Commission then stayed the suspension in its entirety. The Commission found that as bookkeeper and affiliated broker of a firm, a review of Mr. Lewis’ trust account records showed that Mr. Lewis failed to retain check backs, failed to identify the purpose of remittance on checks and failed to reconcile timely leading to an inability to create an accurate audit trail. Mr. Lewis identified an overage of approximately $4000 in approximately $140,000 in held trust monies.
ALBIN DENNIS NOVINEC (JACKSONVILLE) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Novinec effective March 16, 2022. The Commission dismissed without prejudice allegations that Mr. Novinec violated provisions of the Real Estate License Law and Commission rules. Mr. Novinec neither admitted nor denied misconduct.
STEVEN CHINEDU ONYEBERECHI (GREENSBORO) – By Consent, the Commission suspended the broker license of Mr. Onyeberechi for a period of 2 years, effective January 31, 2022. The Commission then stayed the suspension effective January 31, 2022. The Commission found that Mr. Onyeberechi managed a residential property for lease and also executed an Option to Purchase agreement with the tenants and received a $6,965 option fee, unbeknownst to the property owner. Mr. Onyeberechi failed to account for the option fee and failed to maintain entrusted funds in accordance with Commission rules. In another transaction, Mr. Onyeberechi entered into a Buyer Holding Fee Agreement, which did not comply with Commission rules and collected a $6,000 fee. Mr. Onyeberechi failed to account for the fee and failed to maintain entrusted funds in accordance with Commission rules. Mr. Onyeberechi made promises to the buyer regarding returning the fee and failed to fulfill those promises. Mr. Onyeberechi also formed a company to assist individuals repair/restore their credit rating and collected money up front. On multiple occasions, Mr. Onyeberechi has failed to fulfill promises made to those persons regarding improving their credit rating and obtaining homeownership. The Commission notes that Mr. Onyeberechi has agreed to cease his credit repair/restoration operations and has made reimbursements.
OPENDOOR BROKERAGE LLC (CHARLOTTE) – By Consent, the Commission suspended the firm license of Opendoor Brokerage LLC for a period of 18 months, effective March 10, 2022. The Commission then stayed the suspension effective March 10, 2022. The Commission found that Opendoor Brokerage LLC acted as the listing firm in three separate residential transactions. In one transaction, Opendoor Brokerage LLC’s broker failed to ensure that the seller client addressed all material issues noted on a previous buyer’s home inspection report prior to re-listing the property and/or failed to disclose any outstanding material items which were not corrected. Opendoor Brokerage LLC’s broker also initially advertised the subject property as having an outdoor pool along with hardwood and tile floors, when it did not. In the second transaction, Opendoor Brokerage LLC’s broker failed to pull the septic permit prior to listing the property as a 5-bedroom home. The septic permit only allowed for 3-bedroom occupancy. In the third transaction, Opendoor Brokerage LLC’s vendor buried parts of the outdoor pool beneath the back yard instead of removing it all from the property. The seller has now excavated and removed all of the items from beneath the yard after taking the home off the market. The listing agreement with Opendoor Brokerage LLC’s broker failed to include her license number and failed to comply with Commission rules by not placing the fair housing language in a clear and conspicuous manner.
EDWARD BARBER PEASE (RALEIGH) – By Consent, the Commission reprimanded Mr. Pease, effective March 15, 2022. The Commission found that as Vice President of a firm, Mr. Pease was involved in selling lots and new construction homes in a subdivision that its affiliate had developed. The lots were located on a street which appeared to be a cul-de-sac and the MLS listing directed potential buyers to turn “into the cul-de-sac” to get to the listed lots. In fact, the adjacent parcel had a right-of-way to connect a private drive to the cul-de-sac although both representations that the owner of the adjoining property had made in its re-zoning application and express conditions placed on the re-zoning when it was approved, indicated a buffer would be maintained.
ROSHONDA CHENISE PEELE (LILLINGTON) – By Consent, the Commission reprimanded Ms. Peele, effective March 16, 2022. The Commission found that on August 18, 2021, Ms. Peele was convicted of misdemeanor shoplifting/concealment of goods. She was assessed a fine and performed community service. Respondent stated that she proceeded through a retail self-checkout without paying for all of the items in her cart.
RENEE ROTTHOFF (RALEIGH) – By Consent, the Commission reprimanded Ms. Rotthoff, effective March 15, 2022. The Commission found that as on-site agent /sales manager for the sale of lots in a subdivision developed and marketed by firm, Ms. Rotthoff was involved in selling lots and new construction homes in a subdivision that its affiliate had developed. The lots were located on a street which appeared to be a cul-de-sac and Ms. Rotthoff’s MLS listing directed potential buyers to turn “into the cul-de-sac” to get to the listed lots. In fact, the adjacent parcel had a right-of-way to connect a private drive to the cul-de-sac. Ms. Rotthoff represented to certain buyers that the lot they were buying would have a buffer of trees between the subdivision and the commercial development In fact, the adjacent parcel had a right-of-way to connect a private drive to the cul-de-sac although both representations that the owner of the adjoining property had made in its re-zoning application and express conditions placed on the re-zoning when it was approved, indicated a buffer would be maintained. In contracting to purchase, the buyer signed documents that agreed that they were “aware that some home sites are located near undeveloped property that is adjacent to the Community that could be developed in the future.”
LUCINDA DIANA BAILEY CARTER SANTANGELO (CHARLOTTE) – Following a hearing, the Commission permanently revoked the license of Ms. Santangelo, effective February 8, 2022. The Commission found that Ms. Santangelo advertised her services as a property manager, actively managed properties for others, and collected entrusted funds without ever being designated broker-in-charge of her sole proprietorship. Furthermore, Ms. Santangelo deposited rent payments that she collected into her personal bank account, which was not designated “trust” or “escrow”, and which caused these funds to be comingled with her personal funds. Funds from the account were then used to make purchases for food, shopping, gas, and to make payments on her credit card. Ms. Santangelo failed to create, maintain, or retain trust account records in accordance with Commission rules. Ms. Santangelo failed to provide all records or documents to the Commission’s investigator upon request. Ms. Santangelo was previously sanctioned in 2011 for similar issues and received a three (3) year suspension at that time.
SEMPER FI REALTY (JACKSONVILLE) – The Commission accepted the permanent voluntary surrender of the broker license of Semper Fi Realty effective March 16, 2022. The Commission dismissed without prejudice allegations that Semper Fi Realty violated provisions of the Real Estate License Law and Commission rules. Semper Fi Realty neither admitted nor denied misconduct.
SJL PROPERTIES OF THE TRIAD LLC (GREENBORO) – By Consent, the Commission suspended the broker license of SJL Properties of the Triad LLC for a period of 1 year, effective February 15, 2022. The Commission then stayed the suspension in its entirety. The Commission found in review of SJL Properties of the Triad LLCs’ trust account records showed that SJL Properties of the Triad LLC failed to retain check backs, failed to identify the purpose of remittance on checks and failed to reconcile timely leading to an inability to create an accurate audit trail. SJL Properties of the Triad LLC identified an overage of approximately $4000 in approximately $140,000 in held trust monies.
PERRY VERILLE (RALEIGH) – By Consent, the Commission suspended the broker license of Mr. Verille for a period of 2 years, effective March 15, 2022. The Commission then stayed the suspension effective March 15, 2022. The Commission found that as broker-in-charge, Mr. Verille was responsible for the conduct of advertising and supervision of affiliated brokers in relation to adherence to disclosure requirements. Mr. Verille’s firm sold lots and new construction homes in a subdivision that its affiliate had developed. The lots were located on a street which appeared to be a cul-de-sac and the firm’s MLS listing directed potential buyers to turn “into the cul-de-sac” to get to the listed lots. In fact, the adjacent parcel had a right-of-way to connect a private drive to the cul-de-sac although both representations that the owner of the adjoining property had made in its re-zoning application and express conditions placed on the re-zoning when it was approved indicated a buffer would be maintained. In contracting to purchase, the buyers signed documents that agreed that they were “aware that some home sites are located near undeveloped property that is adjacent to the Community that could be developed in the future.”
ALISHA SMITH WALKER (HUDSON) – By Consent, the Commission suspended the broker license of Ms. Walker for a period of 6 months, effective March 10, 2022. The Commission then stayed the suspension effective March 10, 2022. The Commission found that Ms. Walker acted as the buyer agent in a residential purchase transaction. After her buyer-client went under contract, Ms. Walker recommended that her client use a licensed inspector to perform a home inspection, but also gave her client the option to use an unlicensed person to do a “home consultation” on the subject property since it was less expensive. The buyer-client chose to have the less expensive home consultation. Ms. Walker and her buyer-client were present during the home consultation. The unlicensed person did not produce a report of any findings; rather, Ms. Walker took notes of issues that the unlicensed person discovered. Around ten (10) months after closing, the buyer-client had a home inspection performed by a licensed inspector. That inspection discovered issues such as evidence of water intrusion to the home’s foundation, a water leak in the master bathtub, improper ventilation of the wood stove, and issues with the electrical panel. Ms. Walker disputes that the issues found in the inspection were present the day of closing. Ms. Walker has only recommended licensed professionals to perform home inspections for her clients since this incident.
CHRISTOPHER RYAN WALLACE (CHARLOTTE) – By Consent, the Commission reprimanded Mr. Wallace, effective March 10, 2022. The Commission found that Mr. Wallace was a broker for the listing firm in a residential transaction. The previous buyer terminated after discovering issues during their home, well, and septic inspections and emailed these reports to the Listing Agent. The house was then taken off the market while repairs were made to the septic system. When the subject property was re-listed, Mr. Wallace handled the transaction in place of the Listing Agent and failed to disclose material issues noted in the previous buyer’s home inspection report, which were not repaired by the property owner. Mr. Wallace was aware that a previous buyer had terminated the contract and that the property had been re-listed. A number of the same material issues were noted during the final buyer’s home inspection as were noted in the previous buyer’s inspection. The final buyer and seller agreed that the seller would pay money in lieu of repairs and the final buyer closed on the subject property.