Disciplinary Actions

MICHELLE BARNETT ANDREWS (CHARLOTTE) – By Consent, the Commission suspended the broker license of Ms. Andrews for a period of 6 months effective June 10, 2021. The Commission then stayed the suspension in its entirety. The Commission found that Ms. Andrews acted as the co-listing agent for residential property which she knew had been extensively renovated. Ms. Andrews failed to verify that permits were pulled as required for some of the renovation work and failed to disclose that they were not pulled before the buyer made an offer. Once Ms. Andrews discovered, during the due diligence period, that permits were not pulled, she notified the buyers’ agent. The buyers closed on the property after being informed that the seller entity was in the process of obtaining the proper permits. In another residential sales transaction, Ms. Andrews again acted as the co-listing agent. This transaction included four previous buyers, who terminated for various reasons, and a 5th buyer who ultimately purchased the property. During the course of the listing, three buyers shared their home inspection reports with Ms. Andrews who shared them with the seller. The seller made some, but not all of the repairs noted in the reports but Ms. Andrews failed to discover and disclose the uncorrected material defects to subsequent buyers.

BEE HOME SOLUTIONS INC. (CHARLOTTE) – By Consent, the Commission suspended the broker license of Bee Home Solutions Inc. for a period of 12 months effective June 10, 2021. The Commission then stayed the suspension in its entirety. The Commission found that Bee Home Solutions Inc. listed a residential property for sale. The property was owned by the firm’s broker-in-charge, through another business entity. The seller entity had made extensive renovations to the subject property but failed to ensure that all required permits were pulled. Bee Home Solutions Inc. and its agents failed to disclose this before the buyer made an offer, however, once the Firm’s listing broker discovered, during the due diligence period, that permits were not pulled, she notified the buyers’ agent and the buyers closed on the property after being informed that the seller entity was in the process of obtaining the proper permits. In another residential sales transaction, Bee Home Solutions Inc. again acted as the listing firm for property owned by an entity owned by its broker-in-charge. This transaction included four previous buyers, who terminated for various reasons, and a 5th buyer who ultimately purchased the property. During the course of the listing, previous buyers shared three of their home inspection reports with the firm’s employee who shared them with the broker-in-charge. The seller entity made some, but not all of the repairs noted in the reports but Bee Home Solutions Inc., and its agents, failed to disclose the uncorrected material defects to subsequent buyers.

KENT ALLEN DAUDERMAN (SPRUCE PINE) – By Consent, the Commission suspended the broker license of Mr. Dauderman for a period of 18 months effective April 1, 2021. The Commission then stayed the suspension in its entirety. The Commission found that Mr. Dauderman managed properties for others through his sole proprietorship. A review of his trust account records found that Mr. Dauderman failed to perform monthly reconciliations, failed to maintain a trial balance, failed to include the proper identifying information on deposited checks, and failed to maintain journals and ledgers. Mr. Dauderman also allowed deficit spending leading to a shortage in the accounts.

MARION DENISE EDWARDS (KINGS MOUNTAIN) – By Consent, the Commission reprimanded Ms. Edwards effective June 10, 2021. The Commission found that Ms. Edwards acted as the agent of the buyers for the purchase of residential buyers informed Ms. Edwards that they wanted closing to take place at the end of July and Ms. Edwards communicated that the seller would not wait that long so the buyers executed a contract with a June closing date. Ms. Edwards and the listing agent disagree as to whether or not this request was communicated to, and considered by, the sellers. Nevertheless, during the due diligence period, Ms. Edwards forwarded a Due Diligence Request and Agreement (“DDRA”) to the listing agent without going over the specifics of the request with her buyer-client and which lacked their signature. The sellers agreed to the repairs noted on the DDRA and signed the document which was then sent to buyers. The buyers were unhappy that all of their repair requests were not addressed on the DDRA, but ultimately signed the document. The Commission notes that after closing, all repairs requested by the buyers have been completed to their satisfaction.

EITHIEL LYNN SMITH ESTES (BURLINGTON) – By Consent, the Commission reprimanded Ms. Estes effective June 15, 2021. The Commission found that Ms. Estes acted as a buyer agent for a residential purchase. The buyer had a home inspection performed which noted issues with floor joists, footings, girders, piers, windows, and electrical, among others. The home inspector also recommended a general contractor, engineer, plumber, and electrician visit the property for further evaluation. The buyer purchased the property after some repairs were made to the electrical system and received a credit of $2,200 to make additional repairs. The next year, Ms. Estes acted as the listing agent for the sale of the subject property, representing her former buyer client as seller. The seller failed to complete all questions on the property disclosure form, but Ms. Estes provided the incomplete form via the MLS. Ms. Estes was informed by the seller prior to listing the property, that certain repairs had been completed, but failed to inquire further or request documentation. The final buyer’s home inspection report noted some of the same issues as noted in the previous report obtained by the seller at the time of his purchase of the home.

LAURIE L JARRETT (HAW RIVER) – By Consent, the Commission reprimanded Ms. Jarrett effective June 10, 2021. The Commission found that Ms. Jarrett as the qualifying broker/broker-in-charge, of a licensed firm providing property management services, failed to identify the purpose for all checks, failed to maintain ledgers or journals in compliance with Commission rules, and failed to perform monthly reconciliations. Ms. Jarrett also failed to maintain copies of all transaction related documents for a period of three years as required by Commission rule. Ms. Jarrett and the firm have now ceased managing properties and turned over all monies to the property owners or their new management companies.

LAKE NORMAN CORNELIUS NC LLC (CORNELIUS) – By Consent, the Commission suspended the broker license of Lake Norman Cornelius NC LLC for a period of 12 months effective May 1, 2021. The Commission then stayed the suspension in its entirety. The Commission found that in and between May 2015 and August 2015, Lake Norman Cornelius NC LLC failed to properly account for trust money in its trust account and failed to create, maintain, and retain trust account records.

WILLIAM D MORGAN (MOORESVILLE) – By Consent, the Commission suspended the broker license of Mr. Morgan for a period of 12 months effective June 8, 2021. The Commission then stayed the suspension in its entirety. The Commission found that in and between May 2015 and August 2015, Mr. Morgan as the qualifying broker/broker-in-charge of a licensed firm, failed to properly account for trust money in the firm’s trust account, and failed to create, maintain, and retain trust account records.

MICHAEL TIMOTHY MOULTON (CHARLOTTE) – By Consent, the Commission suspended the broker license of Mr. Moulton for a period of 12 months effective June 10, 2021. The Commission then stayed the suspension in its entirety. The Commission found that Mr. Moulton was qualifying broker/broker-in-charge of a licensed firm which listed a residential property for sale, which was owned by a company also owned by Mr. Moulton. Mr. Moulton, through the seller entity, made extensive renovations to the subject property but failed to ensure that all required permits were pulled, and failed to disclose this before the buyer made an offer. Once the listing broker discovered, during the due diligence period, that permits were not pulled, they notified the buyers’ agent. The buyers closed on the property after being informed that the seller entity was in the process of obtaining the proper permits. In another residential sales transaction, Mr. Moulton’s firm again acted as the listing agent for property owned by his other company. This transaction included four previous buyers, who terminated for various reasons, and a 5th buyer who ultimately purchased the property. During the course of the listing, the previous buyers shared three of their home inspection reports with the listing broker who shared them with him. Mr. Moulton made some, but not all of the repairs noted in the reports and failed to disclose the uncorrected material defects to subsequent buyers.

KHUONG M NGUYEN (CHARLOTTE) – By Consent, the Commission suspended the broker license of Mr. Nguyen for a period of two years effective February 1, 2021. The Commission then stayed the suspension after a four month active suspension period. The Commission found that Mr. Nguyen, acting as the qualifying broker/broker-in-charge of a firm, failed to maintain trust accounts and trust account records in compliance with Commission rules, failed to enter into and retain agency agreements with his property management client, and failed to retain leases and other transaction documents in compliance with Commission rules.

MATTHEW M REYES (MOORESVILLE) – By Consent, the Commission suspended the broker license of Mr. Reyes for a period of 12 months effective June 8, 2021. The Commission then stayed the suspension in its entirety. The Commission found that in and between May 2015 and August 2015, Mr. Reyes as the qualifying broker/broker-in-charge, of a licensed firm, failed to properly account for trust money in the firm’s trust account, and failed to create, maintain, and retain trust account records.. Mr. Reyes self-reported the trust account shortage to the Commission.

WENDY D SMITH (MOORESVILLE) – By Consent, the Commission suspended the broker license of Ms. Smith for a period of three months effective June 8, 2021. The Commission then stayed the suspension in its entirety. The Commission found that in and between May 2015 and August 2015, Ms. Smith as the qualifying broker/broker-in-charge of a licensed firm, failed to properly account for trust money in the firm’s trust account, and failed to create, maintain, and retain trust account records.

THE CHARLOTTE REAL ESTATE FIRM LLC (CHARLOTTE) – By Consent, the Commission suspended the broker license of The Charlotte Real Estate Firm LLC for a period of two years effective February 1, 2021. The Commission then stayed the suspension after a four month active suspension period. The Commission found that The Charlotte Real Estate Firm LLC failed to maintain trust accounts and trust account records in compliance with Commission rules. The Charlotte Real Estate Firm also failed to enter into and retain agency agreements with its property management client, and failed to retain leases and other transaction documents in compliance with Commission rules.