How are topics for the Update course selected?

Each year in the fall, the Commission begins its process of selecting topics for the following year’s GENUP-General Update and BICUP-Broker-in-Charge Update courses. 

In October and November, the Commission builds a list of potential topics based on proposed and confirmed law and rule changes, recent complaints and disciplinary actions, suggestions from licensees and Commission Staff, and emerging business trends.  Then, the Commission narrows the list, based on the most pressing issues and educational needs.  The Commission finalizes and votes on the list of topics in their December meeting. 

Between January and May, Commission Staff researches and develops materials based on the Commission’s directives.   Student and instructor materials are created for both courses. 

It’s important to note that License Law and Commission rule changes that will be effective on July 1 (of the same year) are always included in the materials. 

The Update courses are ultimately delivered by approved instructors.  Instructors are not permitted to teach the courses until they have attended an Update Instructor Seminar (UIS), which is a day-long “train-the-trainer” event.  Commission staff offers UIS sessions in late June, so that instructors can begin delivering the courses on July 1. 

Here are a few common questions that brokers ask about the Update course:

• When should I take an Update course?

Though Commission rules allow you to complete your Update course at any time between July 1 and June 10, you are strongly encouraged to take it as early as possible.  That way, you will be up-to-date on law and rule changes.  

• I took my Update course in the spring and all of the information was about changes during the previous year.  Why is the material outdated?   

The material is current for the license year in which it is written. However, it may seem outdated to some licensees if they wait to take the course until the later part of the license year or close to the continuing education deadline, because, by that time, the new laws and rules have been in effect since the previous July. 

• How do I know when an Update course is being offered in my area?

A statewide CE Course Schedule is provided on the Commission’s website.  To search for courses, go to the Commission’s homepage (www.ncrec.gov), click on the Education menu, and select Search CE Course Schedule.  You may search for courses by course title, city, county, sponsor or instructor name, or date range.   

Disciplinary Actions

MAUREEN ELLEN ANOBA (Raleigh) – By Consent, the Commission reprimanded Ms. Anoba effective June 10, 2019. The Commission found that Ms. Anoba, a broker-in-charge, failed to maintain her firm’s trust account records in compliance with Commission rules, failed to maintain a journal with a running balance, failed to include required information on ledgers, and did not perform reconciliations in a timely manner.

CHRISTOPHER BRANDON BARTON (Fort Mill, South Carolina) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Barton effective June 19, 2019. The Commission dismissed without prejudice allegations that Mr. Barton violated provisions of the Real Estate License Law and Commission rules. Mr. Barton neither admitted nor denied misconduct.

CHRISTOPHER R. BARTON (Fort Mill, South Carolina) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Barton effective June 19, 2019. The Commission dismissed without prejudice allegations that Mr. Barton violated provisions of the Real Estate License Law and Commission rules. Mr. Barton neither admitted nor denied misconduct.

CHARLOTTE HOMES & RENTALS LLC (Charlotte – By Consent, the Commission suspended the firm license of Charlotte Homes & Rentals for a period of 12 months effective June 14, 2019. The Commission then stayed the suspension for a probationary period from June 14, 2019 until June 13, 2020. The Commission found that Charlotte Homes & Rentals operated without a designated broker-in-charge from June 29, 2017, until December 11, 2018. The firm withheld earnings from an employee’s paycheck for child support payments and failed to remit these monies to the County. Charlotte Homes & Rentals initially failed to provide deposit slips, cancelled checks, property management agreements, or lease documents to the Commission’s investigator. A review of the firm’s rental trust account found that ledger sheets lacked the name of the owner and tenant, the lack of an audit trail, and deficit spending that included a shortage in the account. A review of the firm’s security deposit account found: lack of a journal, lack of a ledger, lack of an audit trail, and an overage in the account. Charlotte Homes & Rentals has worked to bring its trust accounts into compliance.

RYAN NICOLE GRAHAM (Winston-Salem) – By Consent, the Commission suspended the broker license of Ms. Graham for a period of nine months effective September 30, 2019. The Commission then stayed the suspension for a probationary period through June 30, 2020.  The Commission found that Ms. Graham, acting as a buyer agent in a transaction, gave her buyer-client the code to a lock box enabling her client to access a property listed for sale by another firm without obtaining authorization from the seller. Ms. Graham received a termite report for the subject property that indicated there was “excessive water in the basement,” but failed to give her buyer-client a copy of the report or disclose its contents.

SYLVESTER HOWARD (Jacksonville) – By Consent, the Commission reprimanded Mr. Howard effective June 19, 2019. The Commission found that Mr. Howard, a qualifying broker and broker-in-charge, on or about April 17, 2018, pleaded guilty to one count of Theft of Government Property, was ordered to 12 months’ probation, and ordered to pay a fine.

JOSHUA REAL ESTATE GROUP LLC (Fort Mill, South Carolina) – The Commission accepted the permanent voluntary surrender of the firm license of Joshua Real Estate Group effective June 19, 2019. The Commission dismissed without prejudice allegations that Joshua Real Estate Group violated provisions of the Real Estate License Law and Commission rules. Joshua Real Estate Group neither admitted nor denied misconduct.

TABITHA M. KINCH (Raleigh) By Consent, the Commission reprimanded Ms. Kinch effective June 5, 2019.The Commission found that Ms. Kinch acted as a listing agent and buyer agent for a client on separate properties. Both Ms. Kinch’s agency agreements expired prior to her client closing on both properties and Ms. Kinch failed to execute new ones or sign an extension. The purchase contract for her seller clients stated that the “existing refrigerator” would convey with the property. Ms. Kinch advised her seller clients that they could substitute another refrigerator instead. After closing, however, no refrigerator remained in the property. The Commission notes that Ms. Kinch personally paid for a refrigerator to the satisfaction of the buyers.

BRYCE HOWARD SMITH (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Smith for a period of 12 months effective June 14, 2019. The Commission then stayed the suspension for a probationary period from June 14, 2019 until June 13, 2020. The Commission found that Mr. Smith, a qualifying broker, allowed his firm to operate without a designated broker-in-charge from June 29, 2017, until December 11, 2018. The firm withheld earnings from an employee’s paycheck for child support payments and failed to remit these monies to the County. Mr. Smith initially failed to provide deposit slips, cancelled checks, property management agreements, or lease documents to the Commission’s investigator. A review of the firm’s rental trust account found that ledger sheets lacked the name of the owner and tenant, the lack of an audit trail, and deficit spending that included a shortage in the account. A review of the firm’s security deposit account found: lack of a journal, lack of a ledger, lack of an audit trail, and an overage in the account. Mr. Smith has worked to bring his firm’s trust accounts into compliance.

JOSHUA DON STURTZ (Fayetteville) – By Consent, the Commission reprimanded Mr. Sturtz effective June 5, 2019. The Commission found that Mr. Sturtz acted as a buyer agent for a residential property where his client requested the completion of certain repairs along with a roof certification. Mr. Sturtz received the Due Diligence Request and Agreement (“DDRA”) back from the listing agent with the roof certification crossed out and initialed by the sellers. Mr. Sturtz failed to send the DDRA to his buyer client, failed to inform his client of the certification’s removal from the DDRA, and then told his client that roof certification had been completed, when, in fact, it had not.

STEPHEN MICHAEL VOTINO, JR. (Raleigh) By Consent, the Commission reprimanded Mr. Votino effective June 10, 2019. Mr. Votino agrees that he shall be prohibited from performing property management services on behalf of others for a period of five years. The Commission found that Mr. Votino was the owner of a property management firm that was mistakenly unlicensed from 2014 until its licensure on April 19, 2018. Mr. Votino is now qualifying broker of the firm. Mr. Votino allowed an unlicensed individual to carry out day-to-day operations in the firm. The firm did not maintain its trust account records in compliance with Commission rules and did not reconcile its records timely. The firm’s trust accounts are currently in substantial compliance with Commission rules and Mr. Votino is in the process of transferring ownership of the Firm.

Staff Update

Allan R. Dameron Legal Internship Award

Logan Rigsbee (left center) and Bailey Kirby (right center) are the recipients of the 2019 Allan R. Dameron Legal Internship Award. Rigsbee is a rising second-year law student at the University of North Carolina Law School and Kirby is a rising third-year law student at Campbell University School of Law. The awards were presented by Commission Chair Anna Gregory Wagoner and Vice Chair Thomas R. Lawing, Jr. at the June Commission meeting. The award is given annually in memory of and tribute to former Commission Chair Allan R. Dameron for his dedicated service to protect the interests of consumers.

Michele L. Bennett has been employed as Accounting/Administrative Specialist in the Accounting Division. Prior to joining the Commission, she was an administrative assistant with a structural engineering firm, and was self-employed for 10 years.

Rebecca J. Holbert has been employed as Legal Case Management Paralegal in the Regulatory Affairs Division. She is a graduate of N.C. State University with a B.A. in Communication and Digital Media. She received a Paralegal certificate from Meredith College and is a North Carolina Certified Paralegal. Prior to joining the Commission, she worked as a pastry chef.

Carla Johnstone has been employed as a License Specialist in the Education and Licensing Division. Carla and her husband moved to Raleigh in 2016 from the Washington, DC area where she was an Administrative Assistant in a radiology practice.

Thomie M. Moore has been employed as a License Specialist in the Education and Licensing Division. Prior to joining the Commission, she was employed in the publishing industry.

Appearances

Marcia M. Waldron, Auditor, spoke to the Property Management Division of the Winston-Salem Regional Association of REALTORS®.

Stephen L. Fussell, Chief Consumer Protection Officer, spoke to the Winston-Salem Regional Association of REALTORS®.

Sheryl B. Graham, Consumer Protection Officer, spoke to the Greensboro Regional REALTORS® Association.

How to Access the Broker-in-Charge Login

BICs:  Did you know that you can view the license records of all your affiliated brokers on one page?  The Broker-in-Charge Login enables you to quickly verify whether your affiliated brokers have renewed their licenses and completed their CE and Postlicensing courses on time. 

1. Go to www.ncrec.gov;
2. click on the Licensing menu;
3. select Broker-in-Charge Login;
4. enter your license number and PIN (last 4 of your SSN unless you have changed it); and
5. select Licensees under my Supervision.

Disciplinary Actions

TIMOTHY GEORGE DOWD (Winston-Salem) – The Commission accepted the voluntary surrender of the broker license of Mr. Dowd effective May 22, 2019. Mr. Dowd may not reapply for five years. The Commission dismissed without prejudice allegations that Mr. Dowd violated provisions of the Real Estate License Law and Commission rules. Mr. Dowd neither admitted nor denied misconduct.

MARLIES GREEN (Fayetteville) – By Consent, the Commission permanently revoked the broker license of Ms. Green effective May 22, 2019. The Commission found that Ms. Green, qualifying broker and broker-in-charge with a management agreement for a residential property, moved into the property as a tenant. Ms. Green failed to pay rent in a timely manner to the owner, caused extensive damage to the premises, and was eventually evicted. Ms. Green failed to return deposits to the property owner. Ms. Green failed to remit rental proceeds to other owner clients, failed to pay vendors for work performed on properties managed by her firm, and failed to return a tenant security deposit to a tenant within thirty days of lease termination.  When Ms. Green finally did remit the deposit to the tenant, the bank returned the check due to insufficient funds. The tenant has still not received the deposit. Ms. Green has refused to communicate with property owners, vendors, tenants, and Commission staff and failed to update Commission records with her new address and that of the firm. 

PAUL ROBERT JONES (Wilmington) – By Consent, the Commission suspended the broker license of Mr. Jones for a period of 26 months effective May 9, 2019. The Commission then stayed the suspension for a probationary period from May 9, 2019 through July 9, 2021. The Commission found that Mr. Jones timely reported his July 9, 2018, conviction for felonious Possession With Intent to Sell and Deliver a schedule VI controlled substance. Mr. Jones was sentenced to 6-17 months of imprisonment, which was suspended for a 36-month period of supervised probation. Mr. Jones may be transferred to unsupervised probation for the last six months if he remains in compliance with probation.

DEBRA THOMAS PARSONS (Rockingham) – By Consent, the Commission reprimanded Ms. Parsons effective May 22, 2019. The Commission found that Ms. Parsons, broker-in-charge and qualifying broker, reported that a former bookkeeper had embezzled funds from her property management firms.  The employee was a licensed broker who later surrendered her real estate license to the Commission and signed a Confession of Judgment in District Court. The majority of funds embezzled belonged to Ms. Parson’s firms although some were funds held in trust for others. An initial review of Ms. Parson’s trust accounts found that the firm did not perform three-way monthly reconciliations and left unreconciled deposits dating back years on the books. Since the audit, Ms. Parsons has brought the firm’s trust accounts into compliance with Commission rules. The Commission notes that Ms. Parsons and her staff have taken the Commission’s Basic Trust Account course and hired a vendor to assist with the management software.

PREFERRED PROPERTIES OF NC LLC (Rockingham) – By Consent, the Commission reprimanded Preferred Properties of NC effective May 22, 2019. The Commission found that the broker-in-charge and qualifying broker of Preferred Properties of NC reported that a former bookkeeper had embezzled funds from the firm’s trust accounts. The employee was a licensed broker who later surrendered her real estate license to the Commission and signed a Confession of Judgment in District Court. The majority of the funds embezzled belonged to the firm although some were funds held in trust for others. An initial review of the firm’s trust accounts found that did not perform three-way monthly reconciliations and left unreconciled deposits dating back years on the books. Since the audit, the firm has brought its trust accounts into compliance with Commission rules. The Commission notes that firm’s staff has taken the Commission’s Basic Trust Account course and the firm has hired a vendor to assist with the management software.

PREFERRED RENTALS OF NC LLC  (Rockingham) – By Consent, the Commission reprimanded Preferred Rentals of NC effective May 22, 2019. The Commission found that the broker-in-charge and qualifying broker of Preferred Rentals of NC reported that a former bookkeeper had embezzled funds from the firm’s trust accounts. The employee was a licensed broker who later surrendered her real estate license to the Commission and signed a Confession of Judgment in District Court. The majority of the funds embezzled belonged to the firm although some were funds held in trust for others. An initial review of the firm’s trust accounts found that the firm did not perform three-way monthly reconciliations and left unreconciled deposits dating back years on the books. Since the audit, the firm has brought its trust accounts into compliance with Commission rules. The Commission notes that firm’s staff has taken the Commission’s Basic Trust Account course and the firm has hired a vendor to assist with the management software.

QUALITY HOMES PROPERTY MANAGEMENT LLC (Fayetteville) – By Consent, the Commission permanently revoked the firm license of Quality Homes Property Management effective May 22, 2019. The Commission found that its qualifying broker and broker-in-charge had a management agreement for a residential property, moved into the property as a tenant, failed to make timely rent payments to the owner, and caused extensive damage to the premises. The owner evicted the broker who also failed to return deposits to the property owner. The firm failed to remit rental proceeds to other owners and failed to pay vendors for work performed on properties the firm managed. The firm also failed to return a tenant security deposit to a tenant within thirty days of lease termination. When the firm issued a check to the tenant, the bank returned the check due to insufficient funds. The tenant has still not received the deposit. The firm has refused to communicate with property owners, vendors, tenants, and Commission staff and failed to update Commission address records for the broker and firm.  

MARK JOSEPH VOLAK (Mooresville) – By Consent, the Commission suspended the broker license of Mr. Volak for a period of one year effective December 1, 2018. Six months of the suspension were active with the remainder stayed for a probationary period from June 1, 2019 to December 1, 2020. The Commission also ordered that Mr. Volak shall be ineligible to act as a Broker-in-Charge until November 1, 2023. The Commission found that Mr. Volak, who held a contractor’s license in addition to a broker license, contracted in December 2014 to build a home for a client but failed to complete construction of the project, leaving materials and a rented dumpster on the site. As a result, liens were filed by various vendors against his client for more than $65,000 despite Mr. Volak’s having collected more than $182,000 in draws and other payments. Mr. Volak permanently surrendered the broker license of his construction firm in a 2016 disciplinary action based on a prior construction project. Mr. Volak continued to pay vendors after termination of the construction contract in the present complaint.

RULEMAKING APPROVED

The Commission’s current rulemaking session is now complete. The Rules Review Commission approved 11 rules, 7 amendments and 4 readoptions, at its May 16, 2019, meeting. Text of the approved rules may be found on the Commission’s website under ‘License Law and Rule Changes.’  Changes to the rules are reflected by underlining text that will be added and striking through text that will be deleted. The rules have an effective date of July 1, 2019, except for 21 NCAC 58A .1902, which has an effective date of July 1, 2020. Each effective date is noted in the history of each rule. 

If you would like to receive notifications of rulemaking proceedings, please visit www.ncrec.gov/home/subscribe.

Proper Use of the Working with Real Estate Agents Brochure

By Sheryl B. Graham, Consumer Protection Officer

The Working with Real Estate Agents brochure (“WWREA”), first published in May 2001, is required to be used by brokers in every real estate sales transaction. Not only is the brochure to be presented in every real estate sales transaction, it is to be reviewed by the broker at the first substantial contact with both buyers and sellers.

What determines first substantial contact?  It is not the length of a conversation or communication; it is the substance of that communication. Substantial contact occurs when a buyer or seller begins to talk about personal or confidential information. Examples include a buyer discussing their price range. It may be a seller talking about their motivation to sell or reason for the move.

Commission Rule 58A. 0104 ( c) states:  In every real estate sales transaction, a broker shall, at first substantial contact with a prospective buyer or seller, provide the buyer or seller with a copy of the publication WWREA, set forth the broker’s name and license number thereon, review the publication with the buyer or seller, and determine whether the agent will act as the agent of the buyer or seller in the transaction.

The WWREA brochure explains the various types of agency relationships with the goal of educating the consumer and defining expectations. The WWREA is a broker’s opportunity to discuss and clarify what their agency role is in the transaction. The WWREA starts the conversation concerning the contemplated agency status and future options.

When first substantial contact with a buyer or seller is via telephone or email, a broker must transmit or mail the brochure to the buyer or seller within three days of that first substantial contact. A broker should then follow up with a conversation with the buyer or seller to review the brochure and answer any questions the consumer may have. Sometimes, a broker’s first substantial contact with a buyer or seller is in person, at the office or at an open house. The same rule and expectations apply: when a consumer acts as though an agency relationship exists by discussing personal or confidential information, the broker must present and review the WWREA brochure.

A link to the brochure provided at the foot of a broker’s email without further review or discussion is not sufficient. Similarly, sending both the WWREA and the completed agency agreement to the buyer or seller for electronic signature at the same time could indicate that the broker has delayed delivery of the WWREA past first substantial contact and may never have had the substantive discussion or review with the client.

Not every potential buyer or seller decides to sign an agency agreement with the first broker they meet. A broker would be expected to have a folder full of signed WWREA brochures for prospective customers who do not become clients. Every time a buyer or seller starts to communicate substantial information, the broker should present, review and have signed a WWREA brochure. Like all records of sales, rentals and other transactions, the signed WWREA brochure copies should be retained for three years. A broker may want to have a folder full of blank WWREA brochures, ready for the next conversation.

Appearances

Charlene D. Moody, Assistant Director of Regulatory Affairs, spoke to REMAX Advantage in Raleigh.

Jean A. Wolinski-Hobbs, Auditor/Investigator, spoke to Allen Tate-Charlotte SouthPark, to the Jacksonville Board of REALTORS®, and to United Real Estate East Carolina in Greenville.

Sheryl B. Graham, Consumer Protection Officer, spoke to Cape Fear REALTORS® in Wilmington, Realty Executives of Hickory and Lake Norman, and to the Salisbury Rowan Association of REALTORS®.

Nicholas T. Smith, Consumer Protection Officer, spoke to Real Estate By Design in Durham.

Peter B. Myers,Information Officer, spoke to Landmark Realty Group in Cashiers and to Premier Sotheby’s International Realty in Charlotte.

Spotlight: Cindy S. Chandler, Commissioner

Cindy S. Chandler of Charlotte has served on the North Carolina Real Estate Commission since July 2011, and was its Chair in 2015-2016.

Chandler, owner of the Chandler Group, a commercial real estate consulting and training firm, has been in real estate for more than 40 years in the areas of investment real estate, syndication, strategic planning, property management, marketing and education.

Chandler has served as the 2007 Chair of the commercial division (REALTORS® Commercial Alliance – RCA) of the National Association of REALTORS® and the 2008 Liaison for Business Specialties. She was the 2006 President of the North Carolina Association of Realtors®, was an NCAR Director and an NAR Director. She was Chair of RCA-NCAR for 2003 (Realtors® Commercial Alliance – NC Association of Realtors® ), 2004 Chair for NCAR’s Professional Standards Committee, a member of Leadership NCAR 2003, 2004 Chair of CRRA’s (Charlotte Regional Realtor® Association) Grievance Committee and still serves on CRCBR’s (Charlotte Region Commercial Board of Realtors®) Professional Standards Committee in many capacities. She was also the 2005 Chair of NAR’s RCA Leadership Forum, served on the RCA Committee and Convention Advisory Committee and chaired NAR’s RCA Committee in 2007.

Chandler was a past regional Vice President and Secretary of the Real Estate Educators Association. She was also Chair of the Mecklenburg County Zoning and Planning Committee and Charlotte Chapter President of Commercial Real Estate Women (CREW).

Chandler is a past President of the North Carolina Real Estate Educators Association and a past Vice Chair of the Charlotte-Mecklenburg Planning Commission.

She is a 2011 recipient of the Billie J. Mercer Excellence in Education Award of the Real Estate Commission and is the author of The Insider’s Guide to Commercial Real Estate, published by Dearborn/Kaplan Publishing.

In 2015, CCIM endowed a scholarship in Chandler’s name due to her outstanding achievements in commercial real estate. Also during 2015, she was named Realtor® of the Year for CRRA, CRCBR, and NCAR.

She currently serves on NAR’s Executive Committee and has done so for several years.

Chandler is very committed to education and has earned several designations including: Counselor Real Estate (CRE®), Certified Commercial Investment Member (CCIM), and Distinguished Real Estate Instructor (DREI). In addition, she was also awarded the 1996 Educator of the Year Award and Outstanding Program of the Year Award in 1998 by the North Carolina Real Estate Educators Association. The Real Estate Educators Association presented her with the Educator of the Year Award in 2001, and Education Program of the Year Award in 2005.

How to Register for a Commission Course

Did you know that the North Carolina Real Estate Commission sponsors the 12-Hour Broker-in-Charge Course, Issues and Answers in NC Real Estate Practice, and Basic Trust Account Procedures Courses? Are you interested in taking a Commission Course? If so, click here for a detailed description of the course and registration information. If you have any further questions, please call the Commission at (919) 875-3700.