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Disciplinary Actions

BETTY CAROLINA ALVARADO (MONROE) – The Commission accepted the permanent voluntary surrender of the real estate license of Alvarado, effective January 17, 2024. The Commission dismissed without prejudice allegations that Alvarado violated provisions of the Real Estate License Law and Commission Rules. Alvarado neither admitted nor denied misconduct.

CAROLINA TRACE GATED PROPERTIES LLC (SANFORD) – By Consent, the Commission suspended the firm license for a period of 12 months, effective January 1, 2024. The Commission found that firm failed to adequately supervise an affiliated broker allowing him to conduct brokerage services during a period when his license was on active suspension.

JAMIE ELIZABETH CHRISTENSEN (FAIRVIEW) – By Consent, the Commission suspended the broker license of Christensen for a period of 12 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Christensen listed a property for sale in Buncombe County, N.C. As a part of that listing, Christensen hired a vendor to create drawings of the subject property, as well as to its square footage. The vendor noted on the renderings that all measurements are approximate, and that actual measurements may vary. Despite this notice on the face of the drawing regarding its accuracy, Christensen failed to verify the square footage of the subject property prior to listing it on the Multiple Listing Service (MLS).

ELLEN NORA DEESE (THOMASVILLE) – By Consent, the Commission suspended the broker license of Deese for a period of 12 months, effective November 1, 2023, but stayed the suspension after 3 months upon certain conditions. The Commission found that Deese, acting as a buyer’s agent, found an unclothed semiconscious person in a home during a showing and ran out of the home with her buyers but did not contact anyone else until the following morning, when Deese left feedback to the listing agent on the showing site referencing finding a person “drunk” at the residence. The individual was, in fact, the seller who had suffered a medical emergency and was later found by his family, transported to the hospital, and nine days later passed away. Deese neither admitted nor denied misconduct.

BRANDY NICOLE KALISCH (FAYETTEVILLE) – By Consent, the Commission reprimanded Kalisch, effective January 5, 2024. The Commission found that Kalisch failed to fully provide trust account records to a Commission auditor in a timely manner to sufficiently show the proper deposit and disbursement of funds into and from the trust accounts. Respondent provided records for February, March and September 2023 that showed substantial compliance with Commission rules.

DENISE II, INC (FAYETTEVILLE) – By Consent, the Commission reprimanded the firm effective January 5, 2024. The Commission found that the firm failed to fully provide trust account records to a Commission auditor in a timely manner to sufficiently show the proper deposit and disbursement of funds into and from the trust accounts.

VERRENDRA BABU GANNE (CARY) – By Consent, the Commission reprimanded Ganne, effective January 1, 2024. The Commission found that Ganne entered into a property management agreement with the owners of the subject property. The tenants failed to pay rent for a 6-month period. Ganne failed to comply with the terms of the property management agreement to institute eviction proceedings, failed to follow the lawful requests of the client, and failed to properly protect and promote the client’s property. 

EASTSIDE REALTY LLC (CARY) – By Consent, the Commission reprimanded the firm, effective January 1, 2024. The Commission found that the firm entered into a property management agreement with the owners of the subject property. The tenants failed to pay rent for a six-month period.  The firm failed to comply with the terms of the property management agreement to institute eviction proceedings, failed to follow the lawful requests of the client, and failed to properly protect and promote the client’s property. 

BARRY FULTON (SOUTHPORT) – The Commission accepted the voluntary surrender of the real estate license of Fulton, effective December 14, 2023. The Commission dismissed without prejudice allegations that Fulton violated provisions of the Real Estate License Law and Commission Rules. Fulton neither admitted nor denied misconduct.

KENNETH SCOTT HAWKINS (DURHAM) – By Consent, the Commission reprimanded Hawkins, effective January 15, 2024. The Commission found that Hawkins served as the listing agent for a property located in Raleigh, NC. Hawkins failed to properly review the listing agreement for the Subject Property, specifically with respect to ascertaining whether the sellers were current on all outstanding loans and not in default. Due to Hawkin’s failure to properly review the listing agreement, the sellers were unable to convey clear title at the time of closing, leading to the termination of the transaction.

RICHARD ARTHUR HUBBELL LINDAU (ASHEVILLE) – By Consent, the Commission suspended the broker license of Lindau for a period of 6 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Lindau acted as a buyer agent for clients who had made an offer to purchase on a property in Buncombe County, N.C. While the buyers were under contract, and prior to closing, the buyers received an appraisal report which revealed a discrepancy in the property’s square footage compared to what was listed in the Multiple Listing Service (MLS). Lindau failed to verify the square footage of the subject property prior to closing.

COSTELLO REAL ESTATE & INVESTMENTS TRIANGLE LLC (RALEIGH) – By Consent, the Commission suspended the firm license for a period of 6 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that an affiliated broker of the firm routinely failed to adhere to agency requirements, specifically, providing and reviewing the working with Real Estate Agents and Disclose Form or to have a signed Buyer Agency Agreement in place prior to the broker submitting Offers to Purchas and Contract.

JAMES MATTHEW IVEY (RALEIGH) – By Consent, the Commission suspended the broker license of Ivey for a period of 6 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that an affiliated broker under the supervision of Ivey routinely failed to adhere to agency requirements, specifically, providing and reviewing the working with Real Estate Agents and Disclose Form or to have a signed Buyer Agency Agreement in place prior to the broker submitting Offers to Purchas and Contract.

NADIA MANSAR (RALEIGH) – By Consent, the Commission suspended the broker license of Mansar for a period of 12 months, effective January 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Mansar routinely failed to provide and review the Working with Real Estate Agents Disclosure Form or to have a signed Buyer Agency Agreement in place prior to submitting Offers to Purchase and Contract on behalf of clients.

KATHERINE ANNE JONES (JACKSONVILLE) – By Consent, the Commission suspended the broker license of Jones for a period of 9 months, effective December 15, 2023, but stayed the suspension after 1 month upon certain conditions. The Commission found that Jones acted as a co-listing agent for the sale of certain property and advertised said property for sale as having a square footage in excess of that shown by a subsequent listing broker and appraiser. Jones failed to retain calculation documents used to determine square footage.

STEPHANIE DANETTE KING (RALEIGH) – By Consent, the Commission suspended the broker license of King for a period of 12 months, effective January 1, 2024. The Commission found that King represented a buyer and submitted offers for two properties without informing the listing agents. After one offer was accepted, King continued to negotiate on the second property, which was also accepted. King lied to the listing agent for the first property and stated the buyer backed out due to a death in the family.  The buyer closed on the second property and was sued by the first seller for the due diligence fee.

DAMION MARK PATTON (MORGANTON) – By Consent, the Commission suspended the broker license of Patton for a period of 12 months, effective January 1, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Patton represented the buyer of real property in the subject transaction.  The fully executed offer to purchase and contract stated that the buyer could order a home warranty not to exceed $650 and the seller would pay for it at closing. Patton failed to order the home warranty and submit the invoice to the closing attorney in order to collect the payment from the sellers at closing.    

Check Off Postlicensing Courses From Your To-Do List!

Are you a provisional broker? Do you have to complete Postlicensing (PL) education? Have you determined which delivery method will meet your educational needs?

The Commission encourages you to check your Postlicensing courses off of your to-do list this year!

  1. Pick a course delivery medium best suited for how you like to learn (e.g., in-person, synchronous such as Zoom, or self-paced distance).

NOTE: If you don’t complete all PL courses within 18 months of initial date of NC licensure, your license will be placed on inactive status until the educational deficiency is cured.

NOTE: Be sure to allow adequate time to schedule and pass the proctored end-of-course exam prior to deadlines in the distance PL courses.

WARNING: Commission rules do not allow for ANY extension of time for ANY reason to complete PL education.

Simplified Continuing Education Hours to Increase Professional Competence

Pursuant to Rule 58A. 1702, North Carolina brokers must complete eight credit hours of real estate continuing education each license year. The eight hours consist of:

All brokers without BIC-Eligible status and provisional brokers must attend the General Update Course and all Brokers-in Charge and BIC Eligible Brokers must attend the Broker-in-Charge Update Course. A broker is required to complete eight credit hours of continuing education by June 10th at 11:59 PM EST. This requirement begins upon the second renewal following initial licensure and upon each subsequent annual renewal.

In the past, Rule 58A .1708 permitted brokers to request equivalent credit for a course that was not approved by the North Carolina Real Estate Commission by submitting a $50 fee, course outline and completion certificate. On July 1, 2023, the availability of equivalent credit was removed for all brokers, except an instructor who either authored or taught a course. Therefore, there is no equivalent credit offered for a course that is not approved by NCREC.  A broker who previously submitted courses for equivalent continuing education credit should take the required Update course and an approved North Carolina elective prior to the June 10th deadline.

Rule 58A .1708 was changed to ensure that all North Carolina brokers are required to take North Carolina approved courses. The change also eliminates the need for brokers to pay additional fees, especially when courses were not approved for equivalent credit.

Rule 58A .1711 previously exempted brokers who were licensed in another state from the continuing education requirements in North Carolina. On July 1, 2023, the Commission repealed that rule. All brokers licensed in North Carolina must meet the same eight hour continuing education requirement. The prevalence of online courses means that this is no longer an unreasonable burden for licensees living outside North Carolina.

These rule changes were intended to make things simpler for brokers and to assure that all brokers in North Carolina obtain the same education regarding North Carolina rules, statutes and information to ensure the competence of brokers practicing in the state. If you have questions about the status of your continuing education, you can login and check your continuing education record on the Commission’s website.

How to Designate My Email Address as Private

Did you know that licensees must provide an email address/phone number to the Commission? Are you aware that you can designate your email address/phone number as private?

Commission Rule 58A. 0103 requires all licensees to notify the Commission of any changes to their email addresses/phone numbers within 10 days of the change.  This applies to provisional and full brokers, whether on active or inactive status.

Although brokers must provide their email addresses/phone numbers to the Commission per Rule 58A .0103, a broker may designate their email address as private. To designate an email address as private in your license record, you should complete the following steps:

  1. Go to the Commission website (www.NCREC.gov).
  2. Scroll down to Licensees.
  3. Select Licensee Login.
  4. Enter your license number and PIN (the last four digits of your social security number unless you have changed it).
  5. Select View/Update Your License Record.

6. Scroll down to Other Contact Information (see screenshot below)

7. Delete any entries in the boxes next to Public Phone and Public Email to mark your email address and/or phone number as private.

8. Add your information in the Private Phone and Private Email sections.

9. Select the submit button.

     

NOTE: If an email/phone number is designated as private, the North Carolina Real Estate Commission will not share your information, unless it is required under federal law or valid subpoena.

Case Study: Material Facts

FACTS: A broker listed a property for a seller and attached an expired septic permit.

The listing broker indicated in the property description that the property was a 4-bedroom, 3-bath residence but specified that it was the responsibility of the buyer agent and/or the prospective buyer to locate the current septic permit for the property. A prospective buyer was interested in the property and submitted an offer. The seller accepted the buyer’s offer and the parties went under contract for the property.

The contract allowed for a due diligence period. During this period, the buyer and buyer agent contacted the local municipality to inquire about the septic permit. They received a copy of the permit that indicated the property was permitted for 3 bedrooms.

Upon receipt of the current septic permit, the buyer agent notified the listing agent of the discrepancy in the property description and provided them a copy of the current septic permit. Based upon the information in the current septic permit, the prospective buyer decided to terminate the contract because it did not meet their residential needs.

The listing agent re-listed the subject property and attached the expired septic permit.

ISSUE: Did the listing broker comply with N.C.G.S. §93A-6(a)(1)?

ANALYSIS:  No. N.C.G.S. § 93A-6(a)(1) states that the Commission has power to suspend or revoke at any time a license issued under the provisions of this Chapter, or to reprimand or censure any licensee, if following a hearing, the Commission adjudges the licensee to be guilty of making any willful or negligent misrepresentation or any willful or negligent omission of material fact. 

A material fact is any fact that could affect a reasonable person’s decision to buy, sell, or lease real property. Therefore, a broker has an affirmative duty to take reasonable steps to discover and disclose material facts to all parties in a transaction. Additionally, brokers are expected to take reasonable steps to discover all pertinent facts that are necessary to serve their clients’ interests. In this case study, the listing broker advertised that the property was a 4-bedroom, 3-bathroom home, which was incorrect based upon the septic permit for the property. Prior to listing the property, the listing broker should have verified the number of bedrooms that were permitted for the property by the local municipality.

The Commission also determines whether or not a broker knew of the existence of a material fact by analyzing documents and reviewing written correspondence. The Commission uses the Reasonableness Standard to evaluate a broker’s duty to discover and disclose material facts. This standard dictates that a broker has a duty to discover and disclose any particular material fact if a reasonably knowledgeable and prudent broker would have discovered the fact during the course of the transaction and while acquiring information about the property.

In this scenario, the listing broker attached an expired septic permit for the property and indicated that buyer agents and/or prospective buyers had a duty to verify the accuracy of the information. The listing broker did not act like a reasonably prudent broker because they failed to obtain the current septic permit and verify the accuracy of the property information prior to listing the property. Additionally, the listing broker was given a copy of the current septic permit by the buyer agent that indicated the property was only permitted for 3-bedrooms. After the prospective buyer terminated the contract, the listing agent failed to revise the property description prior to re-listing the property. 

The listing broker had a duty to pull the septic permit and verify the accuracy of the information for the property prior to listing the property. The listing broker’s assertion that the discovery of the correct information regarding the number of bedrooms the property was permitted for was the duty of the buyer agent and/or prospective buyers is incorrect. Every broker must exercise reasonable care and diligence in discovering and disclosing all material facts to all interested parties in a timely manner in adherence to N.C.G.S. § 93A-6(a)(1).

Rule 58A .0110(g)(3) states that a broker-in-charge is responsible for all advertising by or in the name of the firm. As a result of this misrepresentation and the listing broker’s failure to adhere to N.C.G.S. § 93A-6(a)(1), the listing broker and broker-in-charge may be subject to disciplinary action by the Commission.

Resources:

N.C.G.S. § 93A-6(a)(1), 93A-6(a)(8), and 93A-6(a)(10)

License Law and Commission Rules: Rule 58A .0110

Articles: 2022-2023 General Update Course

2019-2020 General Update Course

Septic Permits- A Refresher

Current Stats: Monthly Licensee count as of January 1, 2024

Tech Corner: Using Artificial Intelligence in Real Estate

Technology is modernizing and often simplifying the world daily; the use of artificial intelligence in real estate has the potential to save time, resources, and increase productivity.

What is artificial intelligence? The Merriam-Webster dictionary defines artificial intelligence (AI) as, “the capability of computer systems or algorithms to imitate intelligent human behavior.” It combines computers, data, and machine learning to create content and handle problem-solving with the click of a button.

There are various AI platforms brokers can use to assist them with completing straightforward tasks in their brokerages such as:

Although AI can be a valuable tool for real estate brokerages, it is imperative for brokers to review/verify the information that is created to maintain compliance with License Law and Commission rules.

Staff Appearances

Bob Ramseur, North Carolina Real Estate Commission Member, Len Elder, Director of Education and Licensing, and Kristen Fetter, Assistant Director of Regulatory Affairs spoke at the Real Estate Lawyers Association of North Carolina (RELANC) on January 27th.

Charlie Moody, Deputy Legal Counsel, spoke at Premier Sotheby’s International Realty on January 9.

Brian Heath, Consumer Protection Officer, spoke at Better Homes and Gardens Real Estate Paracle on January 10.

Bruce Rinne, Information Officer, spoke at Lantern Realty and Development LLC on January 17.

Kristen Fetter, Assistant Director of Regulatory Affairs, and Lyndi James, Auditor, spoke at Peak Swirles & Cavallito Properties on January 23.

Miriam Baer, Executive Director, spoke at Mooresville Realty on January 23.

Bruce Rinne, Information Officer, spoke at Engel & Voelkers on January 24.

Kristen Fetter, Assistant Director of Regulatory Affairs participated in the Legal Landscape panel discussion at NC REALTORS® on January 24th.

Alec Glenn, Associate Legal Counsel II, spoke at the NC REALTORS® Risk Management Committee on January 25th.

Disciplinary Actions

DANIELLE KATHLEEN MORAN (FAYETTEVILLE) – Following a hearing, the Commission reprimanded Moran effective October 3, 2023. The Commission found that Moran, while acting as a listing agent, misrepresented the square footage of a property despite having measurements from three licensed appraisers. Moran failed to follow firm policies and procedures regarding measuring square footage. 

ANTHONY NEZEL SMITH (HIGH POINT) – By Consent, the Commission suspended the broker license of Smith for a period of 12 months, effective December 15, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Smith failed to verify the accuracy of information provided by his seller-client regarding the age of the HVAC unit, resulting in Smith incorrectly representing that the HVAC was only three years old when it was actually nine years old. Smith further failed to notify the lender or closing attorney of cash paid to the buyer by Smith and listing firm outside of closing. The payment was made pursuant to an agreement between buyer’s firm, buyer’s agent, listing firm, and Smith with the approval and involvement of both Brokers-in-Charge to resolve a question regarding whether a refrigerator conveyed.

BARBARA ELIZA HART (RALEIGH) – By Consent, the Commission suspended the broker license of Hart for a period of 12 months, effective December 15, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Hart, acting as a buyer’s agent, failed to review the Working with Real Estate Agents disclosure with her client at first substantial contact.  Hart advised her buyer-client that she could submit multiple simultaneous offers, which included due diligence fees.  Hart advised the buyer-client that the due diligence fees would not be due for 24 hours after acceptance and would not be owed if the contract was terminated within the 24-hour period. Hart’s buyer-client submitted simultaneous offers on three properties, each including a $10,000 due diligence fee. One of the three offers was accepted but the buyer-client terminated within 24 hours.  The seller requested the $10,000 due diligence fee and when it was not paid they took legal action against the buyer-client.  The seller was awarded a judgment for the due diligence fee plus interest and costs totaling $10,882.57.

RENEE DIANE BRANDON (JACKSONVILLE) – By Consent, the Commission suspended the broker license of Brandon for a period of 9 months, effective November 1, 2023, but stayed the suspension after 1 month upon certain conditions. The Commission found that Brandon acted as a co-listing agent for the sale of certain property and advertised said property for sale as having a square footage in excess of that shown by a subsequent listing broker and appraiser. Brandon failed to retain calculation documents used to determine square footage.

BRITTNEY PAIGE ROSEBERRY (WRIGHTSVILLE BEACH) – By Consent, the Commission reprimanded Roseberry, effective December 5, 2023. The Commission found that Roseberry represented a buyer of a vacant lot that was advertised as “Build your dream home on one of the larger homesites in River Run Plantation…” by the listing agent. Roseberry assumed that the builder was handling the soil test as the cost for it was noted on the Closing Disclosure.  However, Roseberry failed to ensure that a soil test was performed for her client prior to closing. After closing, it was discovered that a residential structure could not be built on the lot and that a previous septic permit application, accessible in public records, had been denied by the county who classified the lot as “unsuitable” due to wetness and insufficient space for a septic system and repair area. Roseberry’s client executed the Exclusive Buyer Agency Agreement and signed the Working with Real Estate Agents Disclosure two days after going under contract to purchase the subject property.

DANIELLE NICOLE GILLESPIE (WRIGHTSVILLE BEACH) – By Consent, the Commission reprimanded Gillespie, effective December 5, 2023. The Commission found that Gillespie acted as a team lead of a provisional broker who represented a buyer of a vacant lot, which was advertised as “Build your dream home on one of the larger homesites in River Run Plantation…” by the listing agent.  The provisional broker assumed that the builder was handling the soil test as the cost for it was noted on the Closing Disclosure.  However, the provisional broker failed to ensure that a soil test was performed for her client prior to closing. After closing, it was discovered that a residential structure could not be built on the lot and that a previous septic permit application, accessible in public records, had been denied by the county who classified the lot as “unsuitable” due to wetness and insufficient space for a septic system and repair area. The provisional broker’s client executed the Exclusive Buyer Agency Agreement and signed the Working with Real Estate Agents Disclosure two days after going under contract to purchase the subject property.

LEE THOMAS EATMON (WRIGHTSVILLE BEACH) – By Consent, the Commission reprimanded Eatmon, effective December 5, 2023. The Commission found that Eatmon acted as the broker-in-charge of a provisional broker who represented a buyer of a vacant lot, which was advertised as “Build your dream home on one of the larger homesites in River Run Plantation…” by the listing agent. The provisional broker assumed that the builder was handling the soil test as the cost for it was noted on the Closing Disclosure.  However, the provisional broker failed to ensure that a soil test was performed for her client prior to closing. After closing, it was discovered that a residential structure could not be built on the lot and that a previous septic permit application, accessible in public records, had been denied by the county who classified the lot as “unsuitable” due to wetness and insufficient space for a septic system and repair area. The provisional broker’s client executed the Exclusive Buyer Agency Agreement and signed the Working with Real Estate Agents Disclosure two days after going under contract to purchase the subject property.

DAVID HERNANDEZ (CHARLOTTE) – By Consent, the Commission suspended the broker license of Hernandez for a period of 24 months, effective September 1, 2023, but stayed the suspension after 6 months upon certain conditions. The Commission found that an audit of Hernandez’s trust accounts revealed that they were not designated trust or escrow, contained incomplete deposit/withdrawal worksheets, lacked deposit tickets, ledgers failed to include all identifying information, no journal was maintained, and three-way reconciliations were not performed. At times, Hernandez disbursed owner proceeds prior to receiving rental payments from tenants causing deficit spending and transferred funds between the security deposit and rental accounts to keep them balanced.

PAUL A SETER (CONOVER) – The Commission accepted the permanent voluntary surrender of the real estate license of Seter, effective December 13, 2023. The Commission dismissed without prejudice allegations that Seter violated provisions of the Real Estate License Law and Commission Rules. Seter neither admitted nor denied misconduct.

CORY STEPHEN RUSHATZ (SANFORD) – By Consent, the Commission suspended the broker license of Rushatz for a period of 2 months, effective December 1, 2023. The Commission found that Rushatz engaged in brokerage services while his license was on active suspension.

CAROLINA UNITED REALTY LLC (CHARLOTTE) – By Consent, the Commission suspended the firm license for a period of 12 months, effective December 15, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that an audit of the firm’s trust account records found that the firm failed to perform monthly reconciliations, failed to maintain accurate journals, and failed to include all required information in property ledgers. The firm also failed to disburse earned management fees for a period in order to reimburse the account for the embezzled funds; however, this caused comingling.

GRAHAM VINCENT MOTT (DELRAY BEACH, FL) – The Commission accepted the voluntary surrender of the real estate license of Mott, effective December 1, 2023. The Commission dismissed without prejudice allegations that Mott violated provisions of the Real Estate License Law and Commission Rules. Mott neither admitted nor denied misconduct.

EVAGELIA EUSTATHIOU (RALEIGH) – The Commission accepted the permanent voluntary surrender of the real estate license of Eustathiou, effective December 13, 2023. The Commission dismissed without prejudice allegations that Eustathiou violated provisions of the Real Estate License Law and Commission Rules. Eustathiou neither admitted nor denied misconduct.

CHARLES FRANKLIN ALEXANDER III (WILMINGTON) – The Commission accepted the voluntary surrender of the real estate license of Alexander, effective December 13, 2023. The Commission dismissed without prejudice allegations that Alexander violated provisions of the Real Estate License Law and Commission Rules. Alexander neither admitted nor denied misconduct.

KENNETH RUSSELL EDWARDS JR (SOUTHERN PINES) – By Consent, the Commission suspended the broker license of Edwards for a period of 24 months, effective December 15, 2023, but stayed the suspension after 1 month upon certain conditions. The Commission found that in sixteen transactions conducted by Edwards between 2020 and 2022, the closing prices noted in the MLS by Edwards was higher than the actual closing price noted on the Closing Disclosure and tax records. On at least five occasions, properties with inflated prices were used by appraisers as comparables in determining the Fair Market Value of other properties.

EDISON REALTY LLC (GREENSBORO) – The Commission accepted the permanent voluntary surrender of the real estate firm license, effective December 13, 2023. The Commission dismissed without prejudice allegations that the firm violated provisions of the Real Estate License Law and Commission Rules. The firm neither admitted nor denied misconduct.

ALEXIS CAMILLA EDISON (GREENSBORO) – The Commission accepted the permanent voluntary surrender of the real estate license of A. Edison, effective December 13, 2023. The Commission dismissed without prejudice allegations that A. Edison violated provisions of the Real Estate License Law and Commission Rules. A. Edison neither admitted nor denied misconduct.

MAXWELL FIUME EDISON (GREENSBORO) – The Commission accepted the permanent voluntary surrender of the real estate license of M. Edison, effective December 13, 2023. The Commission dismissed without prejudice allegations that M. Edison violated provisions of the Real Estate License Law and Commission Rules. M. Edison neither admitted nor denied misconduct.

DAVID DEMETRY SAWYERS (GARNER) – By Consent, the Commission reprimanded Sawyers, effective December 12, 2023. The Commission found that Sawyers failed to disclose his convictions and discharge on his North Carolina Real Estate License Application.

RAAED ABDULZAHRA AL HADDAD (FAYETTEVILLE) – By Consent, the Commission suspended the broker license of Al Haddad for a period of 12 months, effective December 5, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Al Haddad purchased, renovated, and listed a property for sale. The first buyer terminated due to finance issues but their home inspection report revealed structural issues in the crawl space resulting from moisture and termites and Al Haddad failed to update the RPOADS and failed to disclose the structural defects to the second buyer prior to the time of offer. Al Haddad also performed structural repairs without obtaining a permit.

BEST INVESTMENT REALTY LLC (FAYETTEVILLE) – By Consent, the Commission suspended the firm license for a period of 12 months, effective December 5, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that the firm listed a property owned by broker-in-charge, Al Haddad, and failed to disclose structural defects in the crawl space that were discovered during a previous home inspection to the second buyer prior to the time of offer.

GLEN SOTO (SALISBURY) – By Consent, the Commission suspended the broker license of Soto for a period of 12 months, effective December 15, 2023. The Commission found that Soto purchased a property with the intent to renovate and resell and failed to hire a licensed general contractor for renovations exceeding $30,000. Soto misled the buyer as to the condition of the property and the status of agreed-upon repairs.  Soto also failed to provide documents as requested by the Commission in accordance with Commission rules.

MARCUS & MILLCHAP REAL ESTATE INVESTMENT SERVICES OF NORTH CAROLINA INC (RALEIGH) – By Consent, the Commission suspended the firm license for a period of 12 months, effective December 15, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that the firm entered into a listing agreement for the sale of a hotel offered via an auction website.  The firm failed to discover and disclose material facts prior to the start of the action, provide and review WWREA at first substantial contact, to properly supervise all brokers and unlicensed employees as required by Commission Rules, and to ensure that all individuals and entities receiving compensation for real estate brokerage activity were properly licensed. 

BENJAMIN ADAM YELM (RALEIGH) – By Consent, the Commission suspended the broker license of Yelm for a period of 12 months, effective December 15, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Yelm, acting as a broker-in-charge, failed to ensure proper agency disclosure requirements were followed by affiliated brokers, properly supervise provisional brokers and unlicensed employees as required by Commission Rules, ensure that all individuals and entities receiving compensation for real estate brokerage activity were properly licensed, and timely renew his real estate license and engaged in real estate brokerage activity during a time in which his license was on inactive status.

JOCE MESSINGER (RALEIGH) – By Consent, the Commission suspended the broker license of Messinger for a period of 15 months, effective December 15, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Messinger, acting as a listing agent for the sale of a hotel offered via an auction website, failed to discover and disclose obvious defects to the subject property prior to the start of the auction. 

MILIN V MEHTA (RALEIGH) – By Consent, the Commission suspended the broker license of Mehta for a period of 18 months, effective December 15, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Mehta, acting as a listing agent for the sale of a hotel offered via an auction website, failed to discover and disclose obvious defects to the subject property prior to the start of the auction and complete post-licensing leading to his license becoming inactive.  During the time in which his license was inactive, Mehta engaged in brokerage activity. Mehta also failed to obtain a firm license for his real estate firm.

EXP REALTY LLC (RALEIGH) – By Consent, the Commission reprimanded the firm, effective December 5, 2023. The Commission found that the firm failed to provide specific policies or training regarding buyer agent communications with a buyer regarding the payment of due diligence fees and multiple offers. 

EXP REALTY LLC (RALEIGH) – By Consent, the Commission reprimanded the firm, effective December 10, 2023. The Commission found that an affiliated broker represented a seller of property serviced by a long private driveway that separated it from the nearest road. Respondent Broker indicated on the Working with Real Estate Agents Disclosure that the firm only practiced Dual Agency and falsely advertised that a subject property had road frontage. Respondent Broker also failed to disclose that there was no written easement for the private driveway that connected the subject property to the nearest road. A buyer under contract to purchase the property discovered the lack of road frontage or written easement after paying a $1000 due diligence fee and $2800 in additional costs for a survey and other tests.

TIFFANY FAYE MADDUX (RALEIGH) – By Consent, the Commission reprimanded Maddux, effective December 15, 2023. The Commission found that a broker under Maddux’s supervision represented a seller of property serviced by a long private driveway that separated it from the nearest road. The broker indicated on the Working with Real Estate Agents Disclosure to the seller that the firm only practiced Dual Agency and falsely advertised that the subject property had road frontage. The broker also failed to disclose that there was no written easement for the private driveway. A buyer under contract to purchase the property discovered the lack of road frontage or written easement after paying a $1000 due diligence fee and $2800 in additional costs for a survey and other tests. Maddux failed to supervise her affiliated broker with regard to agency and disclosure of material facts.

DANIEL KOUMOU NETE (CHARLOTTE) – By Consent, the Commission reprimanded Nete, effective December 5, 2023. The Commission found that Nete listed a residential property for sale in which he was a co-owner. The first buyer went under contract to purchase the subject property and had a home inspection performed. The first buyer terminated the contract during the due diligence period and shared their inspection report with Nete. Nete re-listed the subject property for sale without disclosing the material issues discovered in the inspection report, without repairing those issues, and without updating the property disclosure. A second buyer went under contract and terminated after their home inspection discovered similar issues. Nete then re-listed the subject property and made all of the appropriate disclosures to the third buyer who ultimately purchased the property.

KRISTIE LEE BRENNAN (FRANKLIN) – By Consent, the Commission reprimanded Brennan, effective December 5, 2023. The Commission found that Brennan listed a residential property for sale and stated in the TV/Internet section that the property had Fiber Optics. The seller’s current internet at the time of listing was Morris Broadband, which Brennan believed had been bought by Optimum Internet. Brennan therefore stated in the Agent Remarks section of the listing that the subject property had Optimum Internet. After the due diligence period expired, but prior to closing, it was discovered that Optimum Internet was not available at the subject property and that it would cost thousands of dollars to have it connected. Brennan’s seller-client offered to refund the due diligence fee, earnest money deposit, and inspection fees back to the buyer, who declined and closed on the transaction.

RASHAUNE HOPE DE LA CRUZ (FRANKLIN) – By Consent, the Commission reprimanded De La Cruz, effective December 5, 2023. The Commission found that De La Cruz, as the broker-in-charge, listed a residential property for sale and stated in the TV/Internet section that the property had Fiber Optics. The seller’s current internet at the time of listing was Morris Broadband, which De La Cruz’s’s agent believed had been bought by Optimum Internet. De La Cruz’s’s agent therefore stated in the Agent Remarks section of the listing that the subject property had Optimum Internet. After the due diligence period expired, but prior to closing, it was discovered that Optimum Internet was not available at the subject property and that it would cost thousands of dollars to have it connected. De La Cruz’s seller-client offered to refund the due diligence fee, earnest money deposit, and inspection fees back to the buyer, who declined and closed on the transaction.

THOMAS EVAN HARRELL (FRANKLIN) By Consent, the Commission reprimanded Harrell, effective December 5, 2023. The Commission found that Harrell acted as a buyer agent in a residential purchase transaction where his buyer-client told him that having Optimum Internet was a non-negotiable item on their must-have list. Harrell submitted an offer on a property that was advertised as having Optimum Internet. Harrell relied on the listing and did not verify this information before submitting the offer or during the due diligence period. After the due diligence period expired, but prior to closing, it was discovered that Optimum Internet was not available at the subject property and that it would cost thousands of dollars to have it connected. The seller offered to refund the due diligence fee, earnest money deposit, and inspection fees back to the buyer, who declined and closed on the transaction.

WILLIAM JAMES ACORD (CHARLOTTE) – By Consent, the Commission suspended the broker license of W. Acord for a period of 12 months, effective December 15, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that W. Acord discovered that an employee embezzled funds from the trust account so he terminated her, filed a police report, and notified the Commission. An audit of the firm’s trust account records found that W. Acord failed to perform monthly reconciliations, failed to maintain accurate journals, and failed to include all required information in property ledgers. W. Acord also failed to disburse earned management fees for a period of time in order to reimburse the account for the embezzled funds; however, this caused comingling.

KIMBERLY SUZANNE ACORD (CHARLOTTE) – By Consent, the Commission suspended the broker license of K. Acord for a period of 12 months, effective December 15, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that K. Acord, acting as part-owner and accountant for Carolina United Realty LLC, discovered that an employee embezzled funds from the trust account so she terminated her, filed a police report, and notified the Commission. An audit of the firm’s trust account records found that no monthly reconciliations were performed, no accurate journals were maintained, and not all required information was recorded in the property ledgers. K. Acord also failed to disburse earned management fees for a period of time in order to reimburse the account for the embezzled funds; however, this caused comingling.

Vacation Rental Fraud Scam Alert

By Tiffany Ross- Consumer Resource Officer

Over the past year, the North Carolina Real Estate Commission has released several detailed scam alert articles, including Fake Seller / Fake Buyer Scam Alert, Notary Fraud / Deed Fraud Alert, Be Aware of Scam Sellers, and Rental Fraud Scam Alerts. In addition to these, NCREC, in conjunction with the North Carolina State Bar and Investors Title, hosted several Wire Fraud Conferences across the state. Vacation Rental Fraud is the latest scam that we want to educate consumers about.

Vacation Rental Scams

Many vacation rental scammers use reputable vacation rental websites to advertise, so the scams are harder to spot. These scams affect both the vacation rental tenant, and the property owners, as bad actors will pose as either to run their scheme.  For those looking to rent a vacation property, there may be a fake listing where someone asks you to send money in advance as a deposit or full advance payment.  Additionally, scammers may hack the email accounts of actual property owners or managers and then contact legitimate travelers and request payments to be made providing different instructions from previous deposits paid. Beware of sending any funds without verifying the receiver is legitimate.

For owners looking to rent out their vacation property, there are several scams to be aware of, including fake guests that will send a fraudulent check for more than the rental rate, and then ask for a refund of the difference.  Real guests sometimes will stay and damage the property or plant insects in the property and claim it was damaged on arrival or infested.  Another example is parents knowingly renting  properties for their underage children for spring break without an adult being physically present to supervise and prevent damage to the property or underage consumption of alcohol.  Being aware of these scams and not falling for these tactics can prevent the loss of hundreds or even thousands of dollars.

Action You Can Take:

  1. Never send money to someone online or electronically without verifying it is going to a legitimate place.  Do your research and independently contact and verify that the person or firm who will be holding any money is a real attorney, licensed real estate broker, or the true property owner.
  2. Be skeptical of anyone asking for money upfront before completing any paperwork or written or online agreement concerning the rental.  Make sure that you are communicating with the actual property owner or a licensed real estate broker.  Look up the property owner in public records for the county (typically through the tax department) and make sure to verify the identity of the person and their contact information.  To verify someone is a licensed real estate broker in NC, search the licensee look up page.   From this page, verify that their email and other contact information matches the advertisement.
  3. If you are scheduling your vacation rental through a well-known or reputable platform, don’t leave the main app or platform.  Any protection offered to users of the platform ends when communication or payments are made by any other means than the platform itself. 
  4. Search legitimate websites, or actual licensed real estate broker property management company websites for true vacation rental listings by licensed real estate professionals.
  5. Be especially cautious if you are asked to pay with wire transfers, mobile payment apps, crypto or similar methods.  If possible, use a credit card to make payments preferably with zero fraud liability for an added layer of protection.
  6. If you are an owner/property manager, change the access codes and/or WiFi passwords to the property after each guest.  Adjust your policies to be clear about who is required to be present during the rental term and any action that will be taken if unauthorized guests are found or if underage guests are left unsupervised.
  7. Don’t fall for urgent requests or offers that are too good to be true.  Decline offers that seem suspicious.  Look for the Red Flags listed below and beware of these tactics.

Red Flags That You May Be Dealing With a Fake Owner/Manager Scammer

  1. You can’t talk to an actual person, or they don’t want to answer your questions about the property or area/local attractions.
  2. The listing has typos or poor grammar.
  3. The price is too good to be true.
  4. Reviews and ratings are short or non-existent.
  5. They ask for rent, a security deposit, or other up-front money before signing a lease or agreement.
  6. There is no screening process or any attempt to verify identity of tenant.

What To Do If You Are Already a Victim Of a Vacation Rental Fraud Scam in NC

If you responded to a fake ad and sent money, but never heard from the scammer again, contact the North Carolina Attorney General’s office to notify them of the scam and provide as much information as you can.  If the property is located outside North Carolina, contact the Attorney General’s office for that particular state.  You should also report the incident to the service or website you were using, and/or the actual owner/property manager if you were a tenant victim, as well as the Federal Trade Commission.  You can also contact local law enforcement (sheriff or police) and submit an internet crime complaint to the FBI to report the scam and see if there is any chance of recovery.

How You Can Protect Yourself or Your Clients

If you work in vacation rental property management and have clients who rent their vacation properties to tenants, educate them on these dangers and assist them by enhancing your screening processes of potential vacation rental tenants.  If you are working with a vacation rental tenant, provide information like this article to help them avoid the scams and traps, and assist them with carefully verifying the vacation rental details.  Stay in contact with them, and make sure they are aware of the NC Vacation Rental Act. If you are considering a vacation rental, be sure to verify that the rental is legitimate and watch out for the red flags above to protect yourself in the process.

If you or your clients have a problem with a vacation rental, and a licensed real estate broker is involved, contact the Commission’s Regulatory Affairs Division at (919) 719-9180. If there are concerns about the actions of an unlicensed property owner managing their own property, or other unlicensed property management activity, contact this office and the Attorney General’s office (877) 566-7226.