Disciplinary Actions

ERICA BARBARA ANDERSON (HOLLY SPRINGS) – By Consent, the Commission reprimanded Ms. Anderson effective February 1, 2021. The Commission found that as qualifying broker/broker-in-charge, Ms. Anderson’s firm falsely advertised the square footage of a home in the MLS when the affiliated listing agent included a basement area with no heat source in the living area, contrary to the professional measurer’s description. Ms. Anderson, as broker-in-charge, was responsible for all advertising for her firm.

KASSIEM SALFAR CARTER (CARY) – By Consent, the Commission suspended the broker license of Mr. Carter for a period of 3 years effective July 1, 2020. The Commission then stayed the suspension effective December 8, 2020.The Commission found that as the qualifying broker/broker-in-charge, the listing agent, and owner-seller of a property, Mr. Carter failed to disclose known material facts. The condo went under contract and was terminated four times before closing and Mr. Carter collected $4,000 in due diligence fees. A home inspection for one buyer revealed that there was no new carpeting, no wood flooring, no new air conditioning unit or ductwork, no new doubled paned windows, and no new sliding glass door as advertised by Mr. Carter. He also falsely advertised that the property qualified for the conventional financing when he knew that there were too many rental properties in the community for buyers to obtain conventional loans. Mr. Carter failed to provide measurement information for his square footage determination which matched tax records and only updated the MLS after Buyer #4 terminated their contract. The Commission noted that Mr. Carter refunded the due diligence and inspection fees to the first four buyers.

KARUNAKER REDDY DONURU (CONCORD) – By Consent, the Commission suspended the broker license of Mr. Donuru for a period of 18 months effective December 8, 2020. The Commission then stayed the suspension in its entirety and placed Mr. Donuru on probation until June 8, 2022. The Commission found that Mr. Donuru, acting as a dual agent, listed his personal residential real property for sale and failed to provide the signed disclosure form to the buyer until after the due diligence period expired.

BILLY W EZZELL (WILMINGTON) – By Consent, the Commission suspended the broker license of Mr.Ezzell for a period of 1 month effective December 1, 2020. The Commission found that, Mr. Ezzell timely self-reported that he pled guilty in December 2018 to five misdemeanor counts of attempting uttering of a forged instrument in connection with insurance business. Mr. Ezzell wrote insurance policies for five friends for the purpose of meeting sales quotas. Mr. Ezzell was sentenced to 45 days in jail, but his sentence was suspended and he was placed on three years of unsupervised probation. Mr. Ezzell was ordered to pay $5,466.49 in restitution to the insurance company, $352.50 in court costs, and to surrender his insurance license for three years. The friends were aware that Mr. Ezzell had written the insurance policies and paid premiums out of his own funds.

TARA LYNN GLENN (HOLLY SPRINGS) – By Consent, the Commission suspended the broker license of Ms. Glenn for a period of 1 month effective February 1, 2021. The Commission then stayed the suspension in its entirety and placed Ms. Glenn on probation until March 1, 2021. The Commission found that Ms. Glenn, acting as a listing agent, hired a vendor to calculate the square footage of the subject property. The vendor indicated that there was a total of 3,419 square feet of heated living area and 1,294 square feet of “partially finished area (below grade)” which was unheated. Ms. Glenn included the unheated area as “Living Area Below Grade” in the MLS representing a total of 4,713 square feet of heating living area instead of 3,419 square feet. In June, 2020, a buyer entered into a backup contract to purchase the subject property after the first contract terminated due to repair issues. The buyer discovered through a home inspection that the basement had no permanent heat source and terminated his contract due to the misrepresentation. After the termination, Ms. Glenn revised the MLS square footage information, and disclosed the repair issues, and the lack of a permanent heat source in the basement to Buyer #3.

TIMOTHY J GOODWIN (BRYSON CITY) – By Consent, the Commission permanently revoked the broker license of Mr. Goodwin effective July 15, 2020. The Commission found that as the qualifying broker and broker-in-charge, Mr. Goodwin’s firm has operated with shortages in its trust accounts since 2015. The management agreements failed to include a broker license number and, in some cases, failed to state the fair housing language in a clear and conspicuous manner. A review of the firm’s trust accounts revealed comingled funds, payments to unlicensed entities for brokerage services, failure to perform monthly reconciliations, funds not being deposited within three business days, and conversion of entrusted funds for personal/business use. In an attempt to cure shortages, Mr. Goodwin made deposits into the firm’s trust accounts in excess of $300,000.  This money was obtained through loans in which the monthly payments were being deducted from entrusted funds. Furthermore, the trust account was used as collateral for the loan. The case was a result of a spot audit by Commission staff and did not arise from a consumer complaint.

ELLIS GREG HUNTER (CHARLOTTE) – By Consent, the Commission reprimanded Mr. Hunter effective November 11, 2020. The Commission found that in December 2018, Mr. Hunter voluntarily surrendered his bail bondsman license to the Department of Insurance. Following an investigation, the Department of Insurance found evidence that Mr. Hunter did not properly maintain records and deposit sufficient funds to cover liabilities. Mr. Hunter failed to timely report the voluntary surrender to the Commission.

TAMARA LEA JOHNSON (GREENSBORO) – By Consent, the Commission reprimanded Ms. Johnson effective December 20, 2020. The Commission found that as qualifying broker/broker-in-charge, in January 2020, Ms. Johnson listed a property and inserted language into the Agent Only Remarks of MLS that, “new windows due to broken seals have been ordered for 1st floor office/bedroom, 2nd floor bath and laundry, bedroom, and master.” In February, 2020, a buyer went under contract for the subject property with the understanding that 14 windows in the named rooms would be replaced. The Offer to Purchase and Contract did not reference the windows. In April, 2020, the buyer closed based upon Ms. Johnson’s representation that the windows would be replaced two days after closing. The vendor replaced window panes in certain windows at the subject property and told the buyer that he was not hired to replace entire windows. The buyer obtained an estimate of $7,400 to replace all of the windows in those rooms. Ms. Johnson and the buyer have settled with a payment of $5,531.66 to replace the windows noted on the buyer’s inspection report.

BRUCE WESTLY JUSTICE (FAYETTEVILLE) – By Consent, the Commission suspended the broker license of Mr. Justice for a period of 12 months effective September 15, 2020. The Commission then stayed the suspension effective December 8, 2020, and placed Mr. Justice on probation until September 14, 2021. The Commission found that, while acting as the broker-in-charge, a review of the firm’s trust accounts found: checks, deposit slips, and ledgers failed to contain identifying information as required by Commission rules; trust account reconciliations were not being performed; lack of trial balances; and that not all bank activity was being posted on the ledgers. Furthermore, an owner was holding two Tenant Security Deposits, when the management agreement required the firm to hold these funds. Finally, the firm’s management agreement with one owner stated that it was managing one property when, in fact, it was managing three separate properties on the owner’s behalf.

CRAWFORD JAMES LINEBERGER III (CHARLOTTE) – By Consent, the Commission reprimanded Mr. Lineberger effective January 1, 2021. The Commission found that in 2017, Mr. Lineberger was a member manager-owner of a property listed by another broker. Following an inspection for the buyers, he indicated to the buyer’s broker he disagreed with many of the inspector’s findings. After the completion of the transaction, Mr. Lineberger posted false and defamatory reviews of the inspector on various websites based upon information that Mr. Lineberger did not confirm prior to posting the reviews.

TAMMY KAYE SANDERS (WILMINGTON) – By Consent, the Commission reprimanded Ms. Sanders effective February 1, 2021. The Commission found that as qualifying broker/broker-in-charge, in June 2020, Ms. Sanders posted comments about protests on a neighborhood social media site and a neighbor filed a complaint anonymously with the Commission. Ms. Sanders obtained information about the complaining witness and her family and called the witness’ husband to demand an apology and a retraction of the complaint or she would take legal action. Ms. Sanders further stated that, as a broker, it took her five minutes to find out their personal information, that she could post the witness’ information on social media, and that they should consider themselves lucky they had gone after her instead of others that might wish them harm.

CYNTHIA S STANLEY (NORTH MYRTLE BEACH) – By Consent, the Commission reprimanded Ms. Stanley effective January 1, 2021. The Commission found that as qualifying broker/broker-in-charge, in July 2020, Ms. Stanley made an appointment to show a property which included in the MLS that “Sellers require everyone entering home to wear mask and gloves” due to COVID19. The seller also posted a sign on her front door stating, “no mask, no gloves, no entry. Premises under video surveillance.” In July 2020, an inactive broker employed by Ms. Stanley entered the house with two potential buyers. None were wearing gloves, all were wearing masks, but the inactive broker removed her mask as soon as she entered the house. Ms. Stanley was never present at the showing but after being notified by the listing agent, offered to have the house professionally cleaned although this could not occur until four days after the showing.

CASEY BROOKE STYERS (RALEIGH) – By Consent, the Commission reprimanded Ms. Styers effective December 8, 2020. The Commission found that the Exclusive Right to Sell Listing Agreement, Offer to Purchase and Contract, and Working with Real Estate Agents brochure were executed in the name of Ms. Styers’ unlicensed company and the Listing Agreement failed to include a termination date. The purchase contract called for a 90 day due diligence period with no fee and an Additional Earnest Money Deposit (“AEMD”) of $20,000 with no date listed to be paid. The buyers in the subject transaction represented to Ms. Styers that the AEMD was deposited with an escrow agent, prior to the end of the due diligence period. However, she was unable to confirm that this happened. After the due diligence period expired it was discovered that AEMD was never given to an escrow agent. The subject property did not close and Styers’ seller client never received the AEMD from the buyers. The Commission noted that Ms. Styers has applied for a firm license for her company.

LINDA HILL VAUGHN (GREENSBORO) – By Consent, the Commission suspended the broker license of Ms. Vaughn for a period of 36 months effective December 31, 2019. The Commission found that Ms. Vaughn acted as a dual agent in a residential short sale transaction. Before the lender gave final approval to her buyer client for the purchase of the home, Ms. Vaughn gave her buyer client the keys to allow the buyer client to make repairs to the roof. Ms. Vaughn failed to notify her seller client of this and failed to supervise any work being performed. Ms. Vaughn’s seller client later terminated both the listing agreement and the purchase contract and asked for the keys to be returned. The seller client later discovered that the home was damaged inside which included the floor being torn out, one bathroom gutted, and countertops missing.

WATERSHED LUXURY CABIN MANAGEMENT LLC (BRYSON CITY) – By Consent, the Commission revoked the firm license of Watershed Luxury Cabin Management LLC effective July 15, 2020. The Commission found that the firm has operated with shortages in its trust accounts since 2015. The firm’s management agreements failed to include a broker license number and, in some cases, failed to state the fair housing language in a clear and conspicuous manner. A review of the firm’s trust accounts revealed commingled funds, payments to unlicensed entities for brokerage services, failure to perform monthly reconciliations, funds not being deposited within three business days, and conversion of entrusted funds for personal/business use. In an attempt to cure shortages, the broker-in-charge made deposits into the firm’s trust accounts in excess of $300,000.  This money was obtained through loans in which the monthly payments were being deducted from entrusted funds. Furthermore, the trust account was used as collateral for the loan. The case was a result of a spot audit by Commission staff and did not arise from a consumer complaint.

Regulatory Affairs Case Study: Verify Before You List

– By Fred Moreno, Chief Deputy Legal Counsel

The buyer of residential property filed a complaint against the listing agent, who was also the owner of the subject property.

The listing agent purchased the property through his LLC with thoughts of renovating it and reselling it later.  Rather than renovating the property as he typically does, the listing agent decided to market the property “as is” and listed it for sale through his brokerage firm.  The property was advertised as being connected to city water and sewer and the square footage was listed as the exact amount noted in tax records with the disclaimer “Sqft is from tax records”. The Listing agent did not measure the subject property to determine the actual square footage and assumed that the subject property was connected to city sewer because it was located in the center of the city and was connected to city water.

A buyer purchased the property from the listing agent, and began renovations. After adding a bathroom, his team attempted to connect that part of the home to the existing sewer line.  However, after a week of digging all around the house, they discovered that the property was served by a septic system. In order to connect to the city sewer line, the buyer had to pay a connection fee of over $7k and wait one year for the city to run an extension line from the house to the street for an additional cost also of over $7k.

During the investigation, the firm and broker-in-charge were added as respondents due to the misrepresentation of the material fact regarding the septic system and the reliance upon tax records for the advertised square footage.  The buyer agent was also added as a respondent for her failure to discover these issues during her representation of the buyer. 

The Commission closed the case against the buyer agent and warned her that the statement on the listing of “Sqft is from tax records” should have been a red flag that the property was not measured.  Therefore, the buyer agent should have counseled her client and suggested that he have the property measured.  During the investigation, the listing agent, firm, and broker-in-charge have since come to a financial agreement with the buyer to address the issues. The Commission required the listing agent and broker-in-charge to also complete further education prior to closing the case against them. For further information, review the Commission’s “Residential Square Footage Guidelines” brochure. Moreover, it would be good practice to review a copy of the water and sewer utility bill prior to listing a property for sale to ensure your advertising is correct.

When is the deadline for Continuing Education?

Are you confused about the continuing education (CE) deadline for this license year? Do you know which CE courses you need to take? Did you know you can search for available CE courses on the Commission’s website?

CE Requirement

Rule 58A .1702 dictates that, to maintain an active license, a broker must take eight (8) hours of CE each year.

• Provisional Brokers and non-BIC Brokers must take the General Update course and one Commission-approved elective.

• BICs and BIC-Eligible Brokers should* take the BICUP (Broker-in-Charge Update) course and one Commission-approved elective. 

*A BIC or BIC-eligible Broker who takes the General Update course and an elective will maintain an Active license but will lose his/her BIC Eligible status and BIC designation.

Not sure which Update course you need to take?  Login to your license record on the Commission’s website to check your license status before registering for a course.

CE Deadline

In 2020, the Commission extended the deadline for brokers to complete their continuing education requirements for license year 2019-2020, due to COVID-19.

This year, however, brokers must complete CE by the standard deadline, June 10.  Specifically, brokers must complete all 8 hours of CE for the 2020-21 license year by June 10, 2021.

Not sure which courses you need to take?  Login to your license record on the Commission’s website to check your CE record.

CE Course Search

CE Update and elective courses are offered in variety of formats.  Update courses are offered in person and via synchronous distance learning (aka, “live online” instruction using Zoom or similar technologies).  Elective courses are also offered via distance courses (self-paced online courses).

To search for in-person and “live-online” CE Update and elective courses:

1. go to www.ncrec.gov;
2. click on the Education menu;
3. click on Search CE Course Schedules; and
4. click on Search Providers.

• A full listing of courses currently scheduled across the state will be displayed.  Note that you may enter search criteria, such as provider, instructor, or city, to shorten the list.    
• Contact an Education Provider directly to register for a course.

To search for providers that offer self-paced, online CE elective courses:

1. go to www.ncrec.gov;
2. click on the Education menu; and
3. click on List of Distance CE Providers.

• A full listing of providers will be displayed. 
• Contact an Education Provider directly to register for a course.

For more information, contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700.

My license expired! How do I reinstate it?

To maintain a current license, brokers must renew their license annually between May 15 and June 30. The license of a broker who fails to renew during that period will expire on June 30, and that broker must cease all brokerage activities immediately.   

What steps must a broker take to reinstate an expired license? That answer depends on how long the license has been expired.

To reinstate a license expired for less than 6 months:

1. go to the Commission’s homepage (www.ncrec.gov);
2. click on Reinstate your License;
3. enter your license number and PIN (last 4 of your SSN unless you have changed it);
4. answer required questions; and
5. pay the $90 reinstatement fee.

NOTE: To regain active status, a License Activation / Affiliation form (REC 2.08) also must be submitted.

To reinstate a license expired for 6 months but no more than 2 years:

1. Successfully complete one 30-hour Postlicensing course (course must be completed within 6 months prior to submitting reinstatement application); and
2. Submit a reinstatement application with the $90 application fee and all required documentation, including criminal background report;

-OR-

1. Submit a reinstatement application with the $90 application fee and all required documentation, including criminal background report; and
2. Pass the National and State sections of the license exam.

NOTE: To regain active status, a License Activation / Affiliation form (REC 2.08) also must be submitted.

To reinstate a license expired for more than 2 years:

1. Successfully complete the 75-hour NC Broker Prelicensing course;
2. Submit a license application with the $100 original application fee and all required documentation, including criminal background report; and
3. Pass the National and State sections of the license exam.

NOTE: You will be licensed as a provisional broker and be subject to the 90-hour Postlicensing education program. To gain active status, a License Activation / Affiliation form (REC 2.08) also must be submitted.

For more information, review Commission Rule 58A .0505 or visit the “Reinstate your License” page on the Commission’s website. You may also contact the Commission’s Education & Licensing Division at LS@ncrec.gov or 919-875-3700.

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

BICs: Do your licensees have multiple affiliations?

Are you a Broker-in-Charge (BIC)? Do you have affiliated licensees? Have you ever wondered if your licensees have multiple affiliations?

The Broker-in-Charge Login now enables BICs to view all affiliations of the licensees under their supervision. To determine whether or not your affiliated licensees have multiple affiliations, log into your license record on the Commission’s website:

1. go to www.ncrec.gov;
2. click on BIC Login;
3. enter your License number and Pin number;
4. click on Licensees Under Your Supervision;
5. review Additional Affiliations column;
6. click on a licensee with an Additional Affiliation; and
7. review the Details page.

Additionally, once a licensee has added or removed an affiliation, all BICs for the licensee will receive a notice. This notice will indicate the licensee has made a change to one or more of their affiliations.

For more information, contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700.

Nomination deadline for 2021 Outlaw Award is January 15

The Commission is soliciting nominations for the 2021 Larry A. Outlaw Excellence in Education Award until Friday, January 15, 2021. Click here to download the nomination form, which includes detailed information about selection criteria and the nomination process. Questions and nominations should be directed to outlawaward@ncrec.gov.

Appearances

Danielle Alston, Consumer Protection Auditor, spoke at Allen Tate Companies’ Business Meeting on December 1.

Stephen Fussell, Chief Consumer Protection Officer, spoke at the Jacksonville Board of Realtors meeting on December 17.

Disciplinary Actions

BRITTANY NICOLE JOHNSON (JACKSONVILLE) – Following a hearing, the Commission revoked the license of Ms. Johnson effective October 16, 2019. The Commission found that Ms. Johnson failed to provide a final tenant security deposit accounting to the tenant within 30 days of her lease termination. The Commission also found that during the investigation Ms. Johnson failed to respond to multiple Letters of Inquiry and all attempted communications.

MICHAEL GENE GREENE (ARDEN) – The Commission accepted the voluntary surrender of the broker license of Mr. Greene effective December 11, 2019. The Commission dismissed without prejudice allegations that Mr. Greene violated provisions of the Real Estate License Law and Commission rules. Mr. Greene neither admitted nor denied misconduct.

DAWN CROUSE CARRIER (NORTH WILKESBORO) – By Consent, the Commission permanently revoked the broker license of Ms. Carrier effective March 18, 2020. The Commission found that in 2015, Ms. Carrier was found guilty of 24 felony counts of obtaining property by false pretenses. In 2018, she was found guilty of two felony counts of obtaining property by false pretenses. As a paralegal, Ms. Carrier took money from the law firm where she was employed by falsifying documents to either increase the amount of commission checks being paid to her husband’s real estate firm above the amount entitled or to pay commissions when no commission was due. Ms. Carrier failed to report these convictions to the Commission as required.

RACHEL L ALLES (CHARLOTTE) – By Consent, the Commission reprimanded Ms. Alles effective June 17, 2020. The Commission found that Ms. Alles, as the broker-in-charge of a firm, failed to properly supervise a provisional broker (PB) who acted as the listing agent in a residential transaction. The subject property went under contract with a closing date on June 27. The contract had a contingency that the buyers must sell their property prior to closing on the subject property. On June 7, the buyer’s agent notified the PB that the closing had been delayed and that the subject property would therefore not close as scheduled on June 27. The PB failed to inform the seller client of this information until June 24. The seller client then incurred fees for storage expenses due to the delayed closing. The Commission notes that the seller has been reimbursed for storage expenses.

HIGHER TECH REALTY NC LLC (CHARLOTTE) – By Consent, the Commission reprimanded Higher Tech Realty effective June 17, 2020. The Commission found that Higher Tech Realty NC LLC, was the listing firm for a residential property in which a provisional broker (PB) acted as the listing agent. The subject property went under contract with a closing date on June 27. The contract had a contingency that the buyers must sell their out-of-state property prior to closing on the subject property. On June 7, the buyer’s agent notified the PB that the closing had been delayed and that the subject property would therefore not close as scheduled on June 27. The PB failed to inform the seller client of this information until June 24. The firm’s seller client then incurred fees for storage expenses due to the delayed closing. The Commission notes that the seller has been reimbursed for storage expenses.

DORIS E NIXON (THOMASVIILLE) – The Commission accepted the voluntary surrender of the broker license of Ms. Nixon effective June 18, 2020. The Commission dismissed without prejudice allegations that Ms. Nixon violated provisions of the Real Estate License Law and Commission rules. Ms. Nixon, neither admitted nor denied misconduct.

ROBERT S COHEN (FAYETTEVILLE) – By Consent, the Commission reprimanded Mr. Cohen effective July 1, 2020. The Commission found that, while acting as a real estate school director, Mr. Cohen failed to supervise School instructors and ensure compliance with Commission rules regarding School records. A review of School records discovered incomplete attendance records as well as misreporting of class completions for several licensees. The School failed to maintain all rosters for its courses. Class rosters that were maintained show that many were not reported to the Commission within seven days of course completion. Due to late reporting by the School, some licensees were placed on inactive status by the Commission when, in fact, they were up-to-date on their continuing education prior to the deadline.

TERRY FARR SCHOOL OF REAL ESTATE (FAYETTEVILLE) – By Consent, the Commission reprimanded the School effective July 1, 2020. The Commission found that the director failed to supervise School instructors and ensure compliance with Commission rules regarding School records. A review of School records discovered incomplete attendance records as well as misreporting of class completions for several licensees. The School failed to maintain all rosters for its courses. Class rosters that were maintained show that many were not reported to the Commission within seven days of course completion. Due to late reporting by the School, some licensees were placed on inactive status by the Commission when, in fact, they were up-to-date on their continuing education prior to the deadline.

KIMBERLY ANN BENNETT (FAYETTEVILLE) – By Consent, the Commission suspended the broker license of Ms. Bennett for a period of 2 months effective July 1, 2020. The Commission found that, while acting as a real estate school instructor, Ms. Bennett allowed a student to take two postlicensing courses, which overlapped, within a ten day period. This violated the Commission rule prohibiting students from being enrolled in more than 30 instructional hours within a seven day period. Ms. Bennett further allowed School records to misrepresent to the Commission as to when and with whom the student took a postlicensing course.

KR PROPERTY GROUP (CARY) – The Commission accepted the voluntary surrender of the broker license of KR Property Group effective July 1, 2020. The Commission dismissed without prejudice allegations that KR Property Group, violated provisions of the Real Estate License Law and Commission rules. KR Property Group, neither admitted nor denied misconduct.

CYDNEY WHITE METZ (CHARLOTTE) – By Consent, the Commission suspended the broker license of Ms. Metz for a period of 12 months effective September 15, 2020. The Commission then stayed the suspension in its entirety and placed Ms. Metz on probation until September 15, 2021. The Commission found that Ms. Metz acted as the listing agent for a property that went under contract with a closing date set for June 27. The contract had a contingency that the buyers must sell their property prior to closing on the subject property. On June 7, the buyers’ agent notified Ms. Metz that the closing had been delayed and that the subject property would therefore not close as scheduled on June 27. Ms. Metz failed to inform her seller client of this information until June 24. Ms. Metz’s seller client incurred fees for storage expenses due to the late notice. The Commission notes that the seller has been reimbursed for storage expenses.

KMBJ ENTERPRISE INC (FAYETTEVILLE) – By Consent, the Commission revoked the license of KMBJ Enterprises Inc. effective September 15, 2020. The Commission found that a review of KMBJ Enterprises Inc.’s trust accounts found: check, deposit slips, and ledgers failed to contain identifying information as required by Commission rules; trust account reconciliations were not being performed; lack of trial balances; and that not all bank activity was being posted on the ledgers. Furthermore, an owner was holding two tenant security deposits while the lease stated that the firm was holding these funds. Finally, the management agreement with one owner stated that the firm was managing one property when, in fact, it was managing three separate properties on the owner’s behalf.

JENNIFER MICHELLE RAMSEY (HUBERT) – By Consent, the Commission permanently revoked the license of Ms. Ramsey effective October 21, 2020. The Commission found that Ms. Ramsey failed to comply with Commission staff’s initial request for records. In October 2019, the  trust account records for Ms. Ramsey’s firm were reviewed and several deficiencies were discovered including: ledgers and journals lacking required identification information, failure to perform reconciliations, deposit slips and bank statements were not designated “trust” or escrow”, lack of an audit trail, deficit spending, and shortages in the account. In a separate matter, a civil judgment was issued against Ms. Ramsey due a breach of her management agreement. In February 2020, the Commission sent a Letter of Inquiry to Ms. Ramsey to which she failed to respond. In May 2020, a Commission investigator travelled to Ms. Ramsey’s address of record where she refused to speak with the investigator.

ALLISON LEIGH CABE (KITTY HAWK) – The Commission accepted the voluntary surrender of the broker license of Ms. Cabe effective October 21, 2020. The Commission dismissed without prejudice allegations that Ms. Cabe violated provisions of the Real Estate License Law and Commission rules. Ms. Cabe neither admitted nor denied misconduct.

ALVAREZ JUAN POWELL II (CHARLOTTE) – By Consent, the Commission suspended the broker license of Mr. Powell II for a period of 12 months effective November 1, 2020. The Commission found that in applying for his real estate license, Mr. Powell II disclosed five criminal convictions including one misdemeanor cocaine possession conviction. Mr. Powell II signed a consent order in order to obtain his license. In November 2019, Mr. Powell II reported a second (felony) conviction for possession of cocaine and claimed that a friend left a bag of cocaine on the passenger seat of his car but a magistrate’s order indicated that “individually packaged baggies of cocaine weight 6.1 grams” were found. Mr. Powell II was sentenced to 4-14 months of imprisonment which was suspended and was placed on 1 year of supervised probation and ordered to complete 24 hours of community service.

BRANDON SCOTT LOCKARD (CHARLOTTE) By Consent, the Commission reprimanded Mr. Lockard effective December 8, 2020. The Commission found that Mr. Lockard acted as a buyer agent in a residential property purchase. The Buyer sent funds to closing via ACH transfer rather than by wire, which delayed funding and recording. Mr. Lockard gave the keys for the subject property to the Buyer at the signing and told the Buyer not to enter the subject property until the closing documents had been recorded. The Buyer began moving into the subject property on the date of signing, which was two days prior to funding and recording of the transaction. The Commission notes that the seller, upon notice, allowed the buyer to remain in the property prior to deed transfer.

ERICKA JANAE HOLLINGSWORTH (HOPE MILLS) – Following a hearing, the Commission reprimanded Ms. Hollingsworth effective December 10, 2019. The Commission found that Ms. Hollingsworth signed non-disclosure and confidentiality agreements while employed as a property manager for a firm, obtained client contact information as part of her employment with the firm, and, following termination, used the client information to solicit those clients for a property management firm she opened.  The Commission also found that Ms. Hollingsworth, with no actual knowledge of the facts, falsely represented that her former firm had overloaded staff with clients following her termination.

Regulatory Affairs Case Study: You’ve heard the expression “Measure Twice, Cut Once”? This is a story of “Read Twice, Act Once!”

By Sheryl B. Graham, Consumer Protection Officer

After a transaction closed, the seller of the property filed a complaint with the Commission against the buyer’s agent. The buyer agent had been present at the nearly vacant property with the buyer during the home inspection.  While there, the buyer agent texted the listing agent and asked if the seller was going to sell any of the items in the garage.  The listing agent promptly answered via text “LOL.  He doesn’t want to sell anything.” The buyer agent replied “Awesome!!  We will pick through it then.”  The listing agent followed up with another text stating “Hey!  The seller said he isn’t interested in selling anything” 

That evening, the seller contacted the listing agent to say two quilts were missing and things in the garage were “rummaged” through and set aside as if someone was coming back for more.  The home inspection was the only scheduled appointment that day and the listing agent remembered the texts with the buyer agent earlier that day.  The listing agent texted the buyer agent about the missing items and explained the seller wanted the items back within the hour or he would notify the police.  When the buyer agent returned the items that evening, the seller was waiting and videotaped the return.

Although the identified items were brought back, the seller still expressed his distrust and questioned if everything was returned.  During the investigation, the buyer agent explained she occasionally misreads information and that she read the listing agent’s text as saying “He isn’t interested in keeping anything.” The buyer agent stated she did not read the follow-up text from the listing agent, thinking it repeated the same message, until she had left the property with the items.  

Consumers put their trust in brokers not only to guide them through transactions, but to safeguard their real and personal property. If a broker knows that they need to read something twice to ensure accuracy or ask someone to verify their statement or meaning, then do just that.  In this case, reading twice before acting once would have saved a lot of frustration, embarrassment and distrust. 

Once the buyer agent’s broker-in-charge learned of the issue, the Broker-in-charge stepped in and handled the remainder of the transaction, put the buyer agent on probation, and required the agent to take an ethics class. The Commission cautioned the buyer agent to exercise greater care to communicate clearly with other parties in a transaction and to safeguard personal items in properties listed for sale.  All brokers can learn from this case to be clear when communicating via text. Texting on the fly can lead to misunderstandings and incomplete thoughts.  Reread the communication and confirm your understanding or call the other person before taking action.