Disciplinary Actions

JASON MICHAEL COLEMAN (GREENSBORO) – By Consent, the Commission suspended the broker license of Coleman for a period of 12 months, effective September 23, 2022. The Commission then stayed the suspension in its entirety. The Commission found that Coleman was affiliated with a licensed real estate firm. On October 17, 2019, Coleman formed Jason Coleman Real Estate LLC but did not obtain a firm license for this entity. Coleman also did not, at any time material hereto, designate himself as Broker-in-Charge of this entity. Coleman was paid for brokerage activities in the name of the unlicensed firm. From November 10, 2020, through July 26, 2021, Coleman employed an unlicensed administrative assistant. Coleman allowed the unlicensed assistant to show properties for sale on three separate occasions.

CHRISTOPHER JAMES GOODWIN (MATTHEWS) – By Consent, the Commission suspended the broker license of Goodwin for a period of 2 years, effective September 1, 2021. The Commission found that in June 2016, a buyer contracted to buy residential property for which Goodwin was the listing agent. In July 2016, the Sellers of the subject property informed Goodwin of a class action lawsuit and settlement with CertainTeed where they received compensation for defective siding for which the Sellers had not yet made repairs. Goodwin did not disclose this fact during the transaction and the transaction closed. The buyer discovered the class action lawsuit after closing on the subject property and was barred from payment or remedy from the class action lawsuit. Goodwin has entered into a civil settlement with the buyer.

MAREK KUCHARSKI (RALEIGH) – The Commission accepted the voluntary surrender of the broker license of Kucharski effective September 14, 2022. The Commission dismissed without prejudice allegations that Kucharski violated provisions of the Real Estate License Law and Commission rules. Kucharski neither admitted nor denied misconduct.

SAUL ERNESTO ROMERO LARA (DURHAM) – By Consent, the Commission suspended the broker license of Romero Lara for a period of 12 months, effective September 1, 2022. The Commission found that in July 2021, Romero Lara acted as listing agent for the subject property located in Durham. Romero Lara received several offers from buyers’ agents on behalf of their buyer-clients. While the seller was considering offers, Romero Lara disclosed the terms of one offer to the agent for a buyer who had submitted a competing offer. Romero Lara’s actions created an unfair advantage.

TIFFANY RUSSELL (DURHAM) – The Commission accepted the voluntary surrender of the broker license of Russell effective September 14, 2022. The Commission dismissed without prejudice allegations that Russell violated provisions of the Real Estate License Law and Commission rules. Russell neither admitted nor denied misconduct.

MARTY ANDREW PENNELL (TAYLORSVILLE) – By Consent, the Commission reprimanded Pennell, effective September 23, 2022. The Commission found that in May 2021, Pennell acted as listing agent for the subject property. Pennell had been working with buyer clients since March 2021 in their search for a home. Pennell showed the subject property to his buyer clients before the marketing date specified in the listing agreement and prior to entering the property in the MLS. Pennell’s buyer clients submitted an offer that was accepted by Pennell’s seller clients prior to entering the subject property in to the MLS.

TERENCE LEE THOMAS (KNIGHTDALE) – By Consent, the Commission suspended the broker license of Thomas for a period of 6 months, effective September 20, 2022. The Commission then stayed the suspension in its entirety and placed Thomas on probation for a period of eighteen months. Thomas is also prohibited from engaging in property management for others and from handling entrusted funds or otherwise maintaining a trust account for others. The Commission found that Thomas managed a residential rental property and sent the property owner a rental proceeds check, which was returned by their bank for insufficient funds. Thomas provided inaccurate tax information to his owner clients regarding rental payments received on their behalf and failed to maintain transaction documents in compliance with Commission rules. Thomas also failed to deposit entrusted funds into a trust or escrow account and comingled funds. The Commission notes that Thomas no longer manages properties for others, no longer handles entrusted funds, and has remitted all owed funds to his former property owner client.

Staff Appearances

Janet Thoren, Director of Regulatory Affairs, spoke at Central Carolina Association of REALTORS yearly membership meeting on September 13.

Fred Moreno, Chief Deputy Legal Counsel, spoke at the Cape Fear REALTOR meeting on September 16.

Christy Evans, Consumer Protection Officer, spoke at the Realty Executives of Hickory meeting on September 21.

Hurricanes and Vacation Rentals

With hurricane season well underway, a review of the laws governing hurricanes, evacuations, and vacation rentals is appropriate.

1. The first and most important thing to remember is that when state or local authorities order a mandatory evacuation of a coastal area, tenants occupying vacation rental properties must comply with the order. Evacuations are ordered to protect human life and health and are not undertaken lightly. Brokers managing vacation rental properties should support state and local authorities by encouraging and facilitating tenant compliance with evacuation orders.
2. When a vacation tenant complies with an evacuation order, they are generally entitled to a refund of a share of the money they have paid for the rental (rent, security deposit, taxes, etc.) prorated for each night the evacuation order was in effect.
3. There is an exception to this rule, however. If the tenant was offered travel insurance that covered the risk of mandatory evacuation, then the landlord has no obligation to refund the tenant’s money. To trigger the exception, the cost of the insurance offered cannot exceed 8% of the cost of the vacation rental and the policy cannot exclude the particular storm. It is important to note that some vacation rental insurance companies exclude coverage for storms that have been named by the National Hurricane Center prior to date the insurance was purchased. If a storm is named prior to the purchase of travel insurance and, if the insurance will not cover the tenant for losses or damages resulting from a mandatory evacuation or from damages and losses caused by the named storm, then the tenant is entitled to a refund from the landlord of all monies paid.
4. If, following the storm and after any mandatory evacuation has been lifted, the landlord or their broker cannot provide a promised rental property to a vacation rental tenant – whether the reason is that the house was significantly damaged or that it is inaccessible due to damage to, or closure of, roads or ferries – the tenant is entitled to either a refund of his money or the substitution of a reasonably comparable property at the same cost. This refund may come in the form of a paid claim against travel insurance. Tenants and vacation rental managers are encouraged to read and understand the limits of coverage being offered.
5. Go to readync.org, which provides emergency management planning tips including information about current mandatory evacuations.
6. Go to ncdoj.gov/price-gouging-law-in-effect-in-north-carolina-2/ for information about price gouging laws following the declaration of a state of emergency in North Carolina.

Mel Black elected Chair and Jeff Malarney, Vice Chair of the Commission

Mel Black of Raleigh has been elected as Chair of the North Carolina Real Estate Commission and Jeff Malarney of the Outer Banks as Vice Chair. Their terms began on August 1, 2022.

Mel Black was appointed to the Commission by Governor Cooper in 2019. As a real estate and appraisal educator, Mr. Black develops and delivers real estate curriculum for the Colibri Group. As an attorney in private practice with Everett Gaskins Hancock, LLP, he focuses on administrative law and occupational licensing. Mr. Black is a third-generation broker and second-generation appraiser in North Carolina. He has been licensed as a broker since 1988 and certified as an appraiser since 1991.

Mr. Black is the former Executive Director of the North Carolina Appraisal Board and former Education and Examination Officer with the North Carolina Real Estate Commission.

He has been elected to multiple national positions, including president of the Association of Appraiser Regulatory Officials, member of The Appraisal Foundation Advisory Council and its State Regulator Advisory Group, and member of the Board of Directors of the Council on Licensure, Enforcement and Regulation. For his service to North Carolina, Mr. Black was inducted into the Order of the Long Leaf Pine.

Mr. Black was named Educator of the Year by the North Carolina Real Estate Educators Association and received the Larry A. Outlaw Excellence in Real Estate Education Award from the North Carolina Real Estate Commission.

He holds a Juris Doctorate from the North Carolina Central University School of Law, an Educational Specialist degree from Appalachian State University, a Masters of Education from Winthrop College, and a Bachelor’s degree from the University of the State of New York. Mr. Black and his children, Andrew and Mari, are based in Raleigh.

Jeff Malarney, a former member of the Real Estate Commission, was reappointed to the Commission in 2018 by Governor Roy Cooper. He has practiced law in the Outer Banks for over 27 years and is a principal of the Law Offices of Jeff Malarney, PLLC. He is also a licensed real estate broker and property insurance agent.

A Commander (ret.) of the United States Navy Judge Advocate Corps, he is a former Special Assistant United States Attorney, past president of the North Carolina Vacation Rental Manager’s Association, and past chairman of the Outer Banks Chamber of Commerce.

Malarney founded and operated a mortgage brokerage company, an insurance agency, and created H20BX Waterpark in Currituck, North Carolina. Malarney holds a JD from Wake Forest University School of Law and BA (cum laude) in Economics and Management from Albion College.

Commission Resources

Did you know the Commission’s website (ncrec.gov) offers a wide variety of resources for brokers and consumers?

Resources for brokers include:

• Licensee Login that enables brokers to review their own license records, including contact information, license status, company affiliations, and education history, and update information as needed;
• Broker-in-Charge Login that enables BICs to review the license records of their affiliated brokers, to determine whether they have renewed their licenses and/or completed educational requirements;
• Video Library that provides a variety of brief videos regarding rules and processes; and
• Publications Page that provides access to current and previous editions of the eBulletin, materials from previous years’ Update courses, disclosure forms, Q&A brochures, and the Real Estate Manual.

Resources for consumers include:

• Complaint Form that enables consumers to submit written complaints against licensees;
• Fair Housing links and publications that educate consumers on rules and laws related to discrimination in real estate transactions, including Commission rules and the Fair Housing Act;
• Q&A Brochuresthat inform consumers about common components of and issues during real estate transactions, such as Offer and Acceptance, Due Diligence Fees, and Tenant Security Deposits; and
• Related Links that provide access to a variety of organizations and websites that offer related resources and services.

Also, the Support page provides brokers and consumers with responses to frequently asked questions. For more information, contact the Education & Licensing Division at ls@ncrec.gov or 919.875.3700.

Current Stats: Monthly Licensee Count as of August 1, 2022

What do PBs and their BICs need to know about Postlicensing Education?

What is the deadline for completion of Postlicensing Education?

All 90 hours of Postlicensing must be completed within 18 months of initial licensure date, Commission Rule 58A .1902(b). The counting starts from the date the license is issued, whether or not it is ever activated. A provisional broker must complete all 3 Postlicensing courses by the deadline to remain eligible for an active NC real estate license.

What if I miss my 18-month deadline?

If all 3 Post courses have not been completed within the 18 months of initial licensure, the license will be placed on inactive status until activation criteria can be met, Commission Rule 58A .1902(c).

Plan well. Commission rules do not allow for any extension of time for any reason to complete the Postlicensing education.

To activate an inactive license that was on provisional status, all 3 Post courses must have been completed within the 2 years immediately preceding the request to activate. If a Post course was completed more than 2 years ago, it will have to be retaken prior to license activation.

What is the completion deadline of an individual Postlicensing course once I register for the course?

A Post course must be completed (including successfully passing the end-of-course exam) within 180-days of course enrollment, Commission Rule 58H .0207(b). Read that again: from course enrollment, not from when the student begins taking the course. This distinction is particularly important for self-paced distance courses where students may not begin the course right away or when scheduling the proctored end-of-course exam may take several days or weeks.

RECOMMENDATION: if a Postlicensing package containing all 3 Post courses is purchased, be sure to take each end-of-course exam as you complete that course’s instruction vs waiting to take all 3 exams after completing all 3 course instructions. By delaying the exams, students run the risk of their 180-day courses expiring before all 3 exams can be scheduled or passed. With no possibility of course extensions, the entire course(s) has to be retaken for credit.

How do I find the Postlicensing (PL) course I need?

Click this link to search all scheduled in-person, synchronous, or blended delivery PL courses by Course Name, Type of Delivery, Name of Education Provider or Instructor, City/County, or course dates. Click this link for a list of certified Education Providers who offer self-paced distance PL courses.

Disciplinary Actions

CHRISTOPHER ALLEN BRADSHAW (CHARLOTTE) – By Consent, the Commission permanently revoked the license of Mr. Bradshaw effective April 1, 2022. The Commission found that Mr. Bradshaw, was qualifying broker/broker-in-charge of a licensed firm and was also a general contractor and owner of a construction company. Mr. Bradshaw acted as listing agent to market properties built by his construction company. Mr. Bradshaw failed to disclose liens, judgments, and/or foreclosures that would prevent Mr. Bradshaw from closing on multiple properties. Mr. Bradshaw accepted multiple deposits which were required to be held by Seller while knowing that the properties could not close timely and then used those deposits to refund other deposits on failed transactions.

ERIC TROY BYRD (APEX) – The Commission accepted the voluntary surrender of the broker license of Mr. Byrd effective August 17, 2022. The Commission dismissed without prejudice allegations that Mr. Byrd violated provisions of the Real Estate License Law and Commission rules. Mr. Byrd neither admitted nor denied misconduct.

CITY VIEW TERRACES LLC (CHARLOTTE) – By Consent, the Commission permanently revoked the firm license of City View Terraces LLC effective April 1, 2022. The Commission found that City View Terraces acted as listing agent to market properties built by the construction company owned by the firm’s qualifying broker/broker-in-charge. City View Terraces LLC failed to disclose liens, judgments, and/or foreclosures that would prevent the firm’s qualifying broker/broker-in-charge from closing on multiple properties. The firm’s qualifying broker/broker-in-charge accepted multiple deposits which were required to be held by Seller while knowing that the properties could not close timely and then used those deposits to refund other deposits on failed transactions.

ALEXANDRA DOBRIN (CHARLOTTE) – By Consent, the Commission suspended the broker license of Ms. Dobrin for a period of 2 years, effective June 20, 2022. The Commission then stayed the suspension in its entirety. The Commission found that in June 2019, Ms. Dobrin acted as listing agent for the sale of property served by a septic system. Ms. Dobrin failed to obtain and review the septic permit and misrepresented the subject property as having four bedrooms when the septic permit specified three bedrooms. In 2020, Ms. Dobrin relisted the property for the buyer in the 2019 transaction and again failed to review the septic permit leading to the same misrepresentation. The property was subsequently listed by a new listing agent and the property was sold with the new buyer aware of the actual septic permit allowance. Ms. Dobrin has reached a settlement with the 2019 buyer to the buyer’s satisfaction.

LAURA JOY GUY (RALEIGH) – By Consent, the Commission suspended the broker license of Ms. Guy for a period of 3 months, effective May 1, 2022. The Commission found that in September 2021, Ms. Guy was enrolled in HPW Real Estate School in Postlicensing Course 303 – NCLAW. Ms. Guy was required to successfully complete an end-of-course exam to receive credit for the course. The exam was administered to Ms. Guy remotely, utilizing a proctor to facilitate and monitor the exam process. The proctor observed Ms. Guy had open notes during the exam and copied and pasted an exam question into a Word document on her computer. Screen shots were taken showing this activity.

OSAMA MILAD ESKANDER NICOLA (CHARLOTTE) – By Consent, the Commission suspended the broker license of Mr. Nicola for a period of 3 months, effective June 1, 2022. The Commission found that in January 2021, Mr. Nicola listed residential property he had purchased in September 2020 and failed to disclose that the extensive renovation work he supervised, had not been permitted or inspected. After the first buyer terminated following inspections, Mr. Nicola re-listed the property, used the original RPOADS on which he had answered no representation to all questions, and failed to disclose material facts learned from the first buyer’s home inspection. The Commission noted the Mr. Nicola has refunded the buyer the due diligence fee and other costs.

NOY PROPERTIES LLC (GARNER) – The Commission accepted the voluntary surrender of the firm license of Noy Properties LLC effective August 17, 2022. The Commission dismissed without prejudice allegations that Noy Properties violated provisions of the Real Estate License Law and Commission rules. Noy Properties neither admitted nor denied misconduct.

CORY STEPHEN RUSHATZ (SANFORD) – By Consent, the Commission suspended the broker license of Mr. Rushatz for a period of 30 days, effective July 1, 2022. The Commission found that in and around 2020, Mr. Rushatz, acting as listing broker, misrepresented the square footage of several properties by relying on county tax records to represent the square footage. Around January 2021, a member of Mr. Rushatz’s firm offered to buy property from a client to facilitate the sale of adjacent property of the client, and purchased the property. Mr. Rushatz, acting as listing broker for both tracts, failed to deliver a written disclosure of the potential conflict of interest to his seller-client. Mr. Rushatz also failed to terminate the listing agreement or refer the seller-client to another real estate brokerage firm prior to the transaction. The client was aware the purchaser was associated with the firm.

JACQUELINE DENISE YON (GARNER) – The Commission accepted the voluntary surrender of the broker license of Ms. Yon effective August 17, 2022. The Commission dismissed without prejudice allegations that Ms. Yon violated provisions of the Real Estate License Law and Commission rules. Ms. Yon neither admitted nor denied misconduct.

Remote Electronic Notarization is Here to Stay

On July 8th, Governor Cooper signed House Bill 776 into law, authorizing Remote Electronic Notarization (aka Remote Online Notarization or “RON”) once again in North Carolina. 

In 2020, temporary legislation was enacted to allow for Emergency Video Notarization after the COVID-19 pandemic necessitated social distancing.  However, that legislation expired last year. 

With the signing of House Bill 776 into law, the ability to use Emergency Video Notarization is restored until 6/30/2023. The Emergency Video Notarization law allows a regular notary to perform acknowledgments and oaths/affirmations for a person located in North Carolina using live/real-time video conference technology to verify the person’s identity. 

In July 2023, a new Remote Electronic Notarization program will be implemented. The new statute defines Remote Electronic Notarization in North Carolina moving forward, creating a new category of notary, the remote electronic notary.  These notaries can perform notarial acts without the requirement to be in the physical presence of the signer.  They are required to use remote communication technology platforms that are secure, capable of recording and geolocation, and licensed by the NC Secretary of State. The Secretary of State has been tasked with creating rules to implement the program and technology platform for an effective date of July 1, 2023.

The restoration of Emergency Video Notarization and the new Remote Electronic Notarization program may affect the way some law offices handle closings.  Please check with your closing attorney if you have any questions about how this law might change the real estate closing process.

Staff Appearances

Christy Evans, Consumer Protection Officer, spoke at the Union County Association of REALTORS meeting on August 4.

Jean Hobbs, Auditor/Investigator and Brian Heath, Consumer Protection Officer, spoke at the Canopy REALTOR Association meeting on August 12.

Sheryl Graham, Consumer Protection Officer, spoke at the Lake Norman Realty office meeting on August 17.