BREANNE CHIZUE CONTRERAS (HUNTERSVILLE) – By Consent, the Commission reprimanded Ms. Contreras, effective May 30, 2022. The Commission found that Ms. Contreras acted as the listing agent for a residential property where she and her husband owned the LLC seller. Buyer 1 went under contract to purchase the subject property and had a home inspection performed. Buyer 1 shared the summary of the home inspection report with Ms. Contreras, but ultimately terminated during the due diligence period when his closing attorney notified him of a potential set-back issue. Ms. Contreras failed to fully disclose these material facts to Buyer 2 who went under contract to purchase the subject property and had a home inspection performed. Buyer 2’s home inspection noted some of the same issues as buyer 1’s home inspection report. Buyer 2 closed on the subject property after agreeing to a Due Diligence Request and Agreement with Ms. Contreras.
RICARDO ALBERTO CONTRERAS JR (HUNTERSVILLE) – By Consent, the Commission reprimanded Mr. Contreras, effective May 30, 2022. The Commission found that Mr. Contreras purchased residential property through his LLC and pulled permits for an interior renovation. Although the electrical and plumbing permits were completed, the building permit status still showed “Not Finaled” [sic] on the county website. Buyer 1 went under contract to purchase the subject property, but terminated during the due diligence period when his closing attorney notified him of a potential set-back issue. Buyer 2 went under contract a month later and Mr. Contreras did not disclose the permit status nor did he disclose the potential set-back issue raised by the previous closing attorney, basing his decision not to do so on legal advice from other attorneys. Buyer 2 closed on the subject property without issue. The city zoning office advised Commission staff that a zoning violation still existed, but that it may be cured with the approval of an administrative deviation.
KRISTA MARIE CUTLER (CHARLOTTE) – By Consent, the Commission reprimanded the broker license of Ms. Cutler, effective June 20, 2022. The Commission found that in June 2019, Ms. Cutler was the broker-in-charge of the listing agent for the sale of a residential property. The individual listing agent failed to verify the property’s septic permit and advertised the property as having four bedrooms when the septic permit specified three bedrooms. The listing agent has entered into a settlement with the 2019 buyer to the buyer’s satisfaction and the buyer has now sold the property.
ELISE MARIE FREDERICH (RALEIGH) – By Consent, the Commission suspended the broker license of Elise Marie Frederich for a period of 12 months, effective June 10, 2022. The Commission then stayed the suspension in its entirety. The Commission found that Ms. Frederich, acting as the broker-in-charge of Sensational Realty Inc., failed to properly account for trust money and comingled funds resulting in an apparent overage in the firm’s trust account.
FOUND REALTY LLC (HUNTERSVILLE) – By Consent, the Commission reprimanded Found Realty LLC, effective May 30, 2022. The Commission found that Found Realty LLC acted as the listing firm for a residential property with Breanne Contreras acting as its broker-in-charge. Ms. Contreras and her husband owned the LLC seller. Buyer 1 went under contract to purchase the subject property and had a home inspection performed. Buyer 1 shared the summary of the home inspection report with Ms. Contreras, but ultimately terminated during the due diligence period when his closing attorney notified him of a potential set-back issue. Ms. Contreras failed to fully disclose these material facts to Buyer 2 who went under contract to purchase the subject property and had a home inspection performed. Buyer 2’s home inspection noted some of the same issues as buyer 1’s home inspection report. Buyer 2 closed on the subject property after agreeing to a Due Diligence Request and Agreement with the Ms. Contreras.
SANDRA GOOCH HOLLIS (RALEIGH) – By Consent, the Commission reprimanded Ms. Hollis, effective June 7, 2022. The Commission found that Ms. Hollis acted as a listing agent for the sale of her client’s home and undertook to represent them as their buyer agent in a residential purchase transaction. Ms. Hollis was aware that her client needed to use the proceeds from the sale of their current home in order to purchase their new home. Ms. Hollis, acting as a buyer agent, submitted an offer to purchase on behalf of her client and failed to have them execute an addendum to make the purchase conditioned upon the sale of her client’s current home. Instead, Ms. Hollis entered a due diligence expiration date in the contract that occurred thirty-nine (39) days after the proposed closing date. Ms. Hollis failed to notice that the executed contract she received back from the listing agent had a different due diligence expiration date, which was initialed by the seller, thus creating a counter offer. Ms. Hollis’ client subsequently issued due diligence and earnest money deposit funds and proceeded with a home inspection. The issues of whether or not a valid contract existed and the proper ownership of the Earnest Money Deposit remain in dispute between the buyer and seller.
BARBARA LYNN KATLEN (TROUTMAN) – By Consent, the Commission suspended the broker license of Barbara Lynn Katlen for a period of 6 months, effective June 10, 2022. The Commission then stayed the suspension in its entirety. The Commission found that in June 2021, Ms. Katlen acted as the listing agent for a seller-client. Just three months prior, Ms. Katlen had acted as the seller-client’s buyer’s agent for the same subject property. During the initial purchase of the subject property in March 2021, a home inspection revealed certain deficiencies in the crawl space while the crawl space was in the process of being encapsulated and remediated by the seller. Ms. Katlen confirmed no repairs were made by the sellers during their ownership and failed to disclose the crawl space issue noted in the March 2021 inspection report. An inspection conducted in July 2021 by the complaining witness buyer revealed a crawl space deficiency that had been noted in the March 2021 inspection report when Ms. Katlen acted as the buyer’s agent.
LIFESTYLE HOMES OF DISTINCTION (ASHEVILLE) – By Consent, the Commission suspended the firm license of Lifestyle Homes of Distinction for a period of 12 months, effective June 15, 2022. The Commission then stayed the suspension in its entirety. The Commission found that Lifestyle Homes of Distinction, also licensed by the NC Licensing Board for General Contractors (NCLB-GC), failed to report that, by Consent Order dated 10/21/2020, they were disciplined by the NCLB-GC. Pursuant to the Consent Order, Lifestyle Homes of Distinction’s BIC was suspended for one year with three months active, ordered to pay a $5000 fine, and ordered to complete two courses.
R VARATHARAJU M RAMAN (CHARLOTTE) – By Consent, the Commission reprimanded R Varatharaju M Raman, effective June 10, 2022. The Commission found that Mr. Raman listed a property for sale, which he had purchased and renovated through his company. Mr. Raman failed to ensure that the required permits were pulled during the renovations. Buyer 1 went under contract to purchase the subject property and had a home inspection performed. Buyer 1 then terminated the transaction after sending a copy of their home inspection report to Mr. Raman. Mr. Raman did not make any repairs or update the property disclosure form prior to re-listing the subject property. Buyer 2 then went under contract to purchase the subject property and had a home inspection performed which revealed some of the same issues as Buyer 1’s report. Mr. Raman and Buyer 2 agreed on repairs and Buyer 2 successfully closed on the subject property. Mr. Raman failed to disclose the lack of permits to Buyer 1 and 2 at the time their offers were made and failed to disclose outstanding material issues to Buyer 2 that were discovered during Buyer 1’s inspection.
KIMBERLY A MOORE-DUDLEY (GREENSBORO) – By Consent, the Commission reprimanded Ms. Moore-Dudley, effective June 10, 2022. The Commission found that from May 15, 2019 – July 16, 2021, Ms. Moore-Dudley was broker-in-charge of a firm. In early 2021, Ms. Moore-Dudley became aware that an unlicensed LLC was receiving compensation through the firm by payment from the market center administrator. Ms. Moore-Dudley informed the market center administrator that only licensed entities could receive compensation for brokerage activities and informed the broker at issue in that scenario to properly license the LLC. Upon investigation, it was learned that additional unlicensed entities were being paid for brokerage activity at the time Ms. Moore-Dudley was broker-in-charge of the firm.
EUGENE GERARD PITZER (RALEIGH) – By Consent, the Commission reprimanded Mr. Pitzer, effective June 10, 2022. The Commission found that Mr. Pitzer entered into a listing agreement with a seller-client who disclosed that the property was part of an inheritance and, therefore, had multiple heirs who would need to agree to the sale. Mr. Pitzer relied on the seller’s representations that the other heirs had agreed to the sale, and failed to discover and disclose additional heirs who were necessary parties to the contract. A contract to buy the property was terminated when the seller was unable to get all heirs to sign off and the buyer lost $8000 in due diligence fees paid that the seller had spent during the pendency of the contract. The Commission noted that Mr. Pitzer had reimbursed the buyers for their due diligence fees and additional costs incurred.
SENSATIONAL REALTY INC (RALEIGH) – By Consent, the Commission suspended the firm license of Sensational Realty Inc. for a period of 12 months, effective June 10, 2022. The Commission then stayed the suspension in its entirety. The Commission found that Sensational Realty Inc. failed to properly account for trust money and comingled funds resulting in an apparent overage in its trust account.
JAMES COOPER SMITH (RALEIGH) – By Consent, the Commission suspended the broker license of James Cooper Smith for a period of 6 months, effective June 10, 2022. The Commission then stayed the suspension in its entirety. The Commission found that Mr. Smith purchased a residential property and received a home inspection report provided by the seller. Mr. Smith closed on the subject property and made substantial repairs to it over the next few months with various contractors. Mr. Smith listed his property with a licensed firm and failed to ensure that all of the repairs made to the subject property corrected all of the material issues discovered by the previous inspection report. The home inspection reports of future buyers discovered some of the same issues as noted on the prior inspection report. The Commission notes that Mr. Smith has since corrected these issues and the home has sold.