How to check your CE record

This article from the February eBulletin is republished here to remind brokers to check their license record to ensure compliance with License Law and Commission rules regarding continuing education.

Did you know that you can check your CE record at any time on the Commission’s website?

Your CE record is part of your license record. To access it:

1. go to www.ncrec.gov;
2. click on Licensing;
3. click on Licensee Login;
4. enter your License Number and your Password (your Password is the last four digits of your SSN if you have not changed it); and
5. click on Login.

After you log in, you will see the Licensees Menu. Click on CE License Information.

At the top of the CE page, you will see “Current Update Hours” followed by a 0 (zero) or a 4 (four). A 4 (four) means you have completed an Update course for the current period. A 0 (zero) means you have NOT yet completed a course, and you need to do so by June 10.

Next, you will see “Current Elective Hours” followed by a 0 (zero) or a 4 (four). A 4 (four) means you have completed an elective course for the current period. A 0 (zero) means you have NOT yet completed a course, and you need to do so by June 10 .

Also provided in your CE record is a full listing of the courses you have completed and the dates on which you completed them.

DO YOU HAVE BIC ELIGIBLE STATUS? If so, you need to take the BICUP (rather than the GENUP) course if you wish to maintain BIC Eligible status. To determine whether you have BIC Eligible status, go back to the Licensees Menu in your license record. If you see a link for “Print BIC Eligible Document,” then you have BIC Eligible status. If that option does not appear, you do not have BIC Eligible status and must take the GENUP course.

For more information about your license record, contact the Commission’s Education and Licensing Division at 919.875.3700.

“Preventing Rental Scams”

By Nicholas Smith, Consumer Protection Officer

Wow! A 4 bed, 3 bath single family home for rent in “THE” place to be… for only $1,000 dollars a month? With no background or credit check? How soon can I move in?

If it sounds too good to be true, it probably is.

Rental scammers often use existing online images of properties for sale or rent to create fraudulent listings with deals that seem too good to pass up. The scammers, posing as an agent, landlord, or a friend of the owner, lure prospective tenants into paying a security deposit, application fees, or a few months’ rent before the tenant sees the property in person or receives the keys. Most often, these rental scams are perpetrated entirely online and over the phone. The scammers tend to create a sense of urgency with prospective tenants by offering to send the keys upon receipt of money from the tenants. The victims often don’t realize they have been tricked until they have already paid the scammer. In some cases, multiple people may fall victim to a single fraudulent listing.

Brokers who offer properties for sale or rent online can take steps to help prevent these scams.

• Signage at the property- Placing signs at the property that indicate that you and your firm are offering the property for sale or lease may alert potential victims who drive by the property that the rental advertisement they saw could be a scam. Always be sure to have the owners’ written consent prior to placing a “for sale” or “for rent” sign.

• Perform a reverse image search- Many free internet search engines can perform a search using an image only rather than keywords. By using a reverse image search, you may be able to identify a fraudulent listing using the pictures of the property you posted online.

• Watermark images used in listings- Watermarking involves transposing a faint image over another to prevent the theft or misuse of an image. A watermark indicating the property is “for sale only and not for rent” or “for rent only through ABC Realty” may deter a scammer from using the image. Before using watermarked images advertising a property, be sure to have approval from your principal and broker-in-charge. Additionally, your local MLS may have rules prohibiting watermarked images, so be sure to check with your MLS prior to using them.  

If your listing has been used in a rental scam or you believe you have identified a rental scam listing, consider filing a complaint with the Commission on our website (ncrec.gov) if the offender is licensed, and if the offender is not licensed, with the FBI (www.IC3.gov) and with the NC Department of Justice (ncdoj.gov/file-a-complaint/).

Current Stats: Monthly Licensee Count as of March 1, 2020

Disciplinary Actions

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

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

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

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

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

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

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

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

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

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

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

Appearances

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

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

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

Mary Wills Bode has been appointed to the Commission

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

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

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

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

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

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

Current Stats: Brokers Licensed per Month

Disciplinary Actions

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

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

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

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

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

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

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

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

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

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

Licensee Count as of February 1, 2020

How to apply for a Firm License

Have you created an LLC, corporation, partnership, or other type of business entity for your brokerage business or compensation? If so, you need to apply for a firm license.

To complete a firm license application, you must:

• provide the registered legal and assumed name(s) for the entity;
• provide the SOSID assigned by the NC Secretary of State (not applicable for partnerships); 
• provide physical and mailing addresses for all office locations;
• designate a Qualifying Broker (QB)*; and 
• designate a Broker-in-Charge (BIC) for each office location.

*Commission Rule 58A .0502 dictates that a firm must have one principal who holds a broker license on active status in good standing; that broker must serve as the qualifying broker (QB).  The QB is responsible for:

• designating and assuring that there is a BIC for each office location;
• renewing the real estate broker license of the entity each license year;
• retaining the firm’s pocket card at the firm;
• notifying the Commission of any change of business address or legal or trade name of the entity:
• notifying the Commission in their change of status as qualifying broker; 
• securing and preserving the transaction and trust account records of the firm whenever there is a change in the broker-in-charge;
• retaining and preserving the transaction and trust account records of the firm upon their termination as qualifying broker;
• notifying the commission if, upon their termination of his or her status as qualifying broker, the firms transaction or trust account records cannot be retained or preserved; and
• notifying the Commission regarding any revenue suspension, revocation of authority, or administrative dissolution.

To apply for a firm license, go to www.ncrec.gov and click on Apply for a Firm License.

If you have further questions about the firm licensing process, contact the Education and Licensing Division at 919.875.3700.