YANLI ZHU (GREENSBORO) – By Consent, the Commission suspended the broker license of Zhu for a period of 12 months, effective July 1, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Zhu agreed in writing to “rebate” 50% of her commission to buyer-clients. Prior to closing, the relationship between Zhu and her clients deteriorated and Respondent refused to honor the agreement. Zhu did not provide or review the WWREA disclosure at first substantial contact or enter a written agency agreement prior to submitting an offer for her clients to purchase a new home build. Zhu provided the Commission with WWREA disclosures and agency agreements for multiple transactions that were not signed by clients on the dates shown on the forms.
GD REALTY LLC (GREENSBORO) – By Consent, the Commission suspended the firm license of GD Realty LLC for a period of 12 months, effective July 1, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that the firm represented numerous buyer-clients in real estate transactions and failed to provide and review Working With Real Estate Agents Disclosure forms or to obtain written Buyer Agency Agreements prior to offer. During the course of the investigation, the firm asked the clients to sign these agreements and backdate them to the time the agency relationship began and submitted these signed forms to the Commission.
ROSHELLE LEIGH SCHUDEL (ELIZABETH CITY) – By Consent, the Commission suspended the broker license of Schudel for a period of 12 months, initially effective June 1, 2023, however, the Commission later extended the effective date to July 1, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Schudel failed to supervise an affiliated broker and failed to notify the Commission that she was no longer acting as broker-in-charge.
HEATHER NICOLE SHELTON (GREENSBORO) – By Consent, the Commission suspended the broker license of Shelton for a period of 18 months, effective February 1, 2023, but stayed the suspension after 3 months and placed her on probation for the remaining 15 months upon certain conditions. The Commission found that Shelton, as the broker-in-charge and qualifying broker of The Prestige Group of the Triad Inc. d/b/a Prestige Realty Group, executed a listing agreement but failed to have all of the owners sign. After the property went under contract, the owners changed the water source from municipal to a well. Although Shelton was aware, Shelton failed to inform the buyers or their agent of the change. After closing, buyers learned the well could not be used and paid to run a new water line and meter to the property. In addition, Shelton’s license was inactive from July 1, 2022, through September 15, 2022, yet Shelton continued to engage in brokerage activity.
THE PRESTIGE GROUP OF THE TRIAD INC. D/B/A PRESTIGE GROUP REALTY (GREENSBORO) – By Consent, the Commission suspended the license of The Prestige Group of the Triad, Inc. for a period of 18 months, effective February 1, 2023, but stayed the suspension after 3 months and instead placed the firm on probation for a period of 18 months upon certain conditions. The Commission found that the firm executed a listing agreement but failed to have all of the owners sign. After the property went under contract, the owners changed the water source from municipal to a well. Shelton knew of this change before closing but failed to disclose to the buyers or their broker. After closing, buyers learned the well could not be used and paid to run a new water line and meter to the property. In addition, the Firm’s license was inactive from July 1, 2022 through September 15, 2022, yet the firm continued to engage in brokerage activity.
PHILIP M HENDERSON (CHARLOTTE) – By Consent, the Commission suspended the broker license of Henderson for a period of 12 months, effective August 1, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Henderson, acting as broker-in-charge of Henderson Properties, Inc., added surcharges to invoices for repairs without full disclosure to or consent from owner-clients. A record inspection showed non-compliance with trust account rules including failure to consistently include the purpose and payee for disbursals on journals and ledgers, failing to maintain the front and back of canceled checks, and posting deposits before payments were received. Henderson’s website misleadingly referenced a division for HOA management following the division’s sale to a separate company.
HENDERSON PROPERTIES INC (CHARLOTTE) – By Consent, the Commission suspended the firm license of Henderson Properties, Inc. for a period of 12 months, effective August 1, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that the firm added surcharges to invoices for repairs without full disclosure to or consent from owner-clients. A record inspection showed non-compliance with trust account rules including failure to consistently include the purpose and payee for disbursals on journals and ledgers, failing to maintain the front and back of canceled checks, and posting deposits before payments were received. The firm’s website misleadingly referenced a division for HOA management following the division’s sale to a separate company.
JACQUELINE KAY REYNOLDS (WAYNESVILLE) – By Consent, the Commission suspended the broker license of Reynolds for a period of 12 months, effective July 1, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Reynolds listed a subject property for sale and advertised it as containing 1585 square feet when in fact it contained 1362 square feet. The first buyer terminated when his girlfriend had a severe allergic reaction while viewing the property, which they believed was due to the presence of mold. Although Reynolds knew the reason for the termination, Reynolds misrepresented to the second buyer that the first buyer terminated because of a cat allergy.
DERICK LEE REARDON (WILMINGTON) – By Consent, the Commission suspended the broker license of Reardon for a period of 3 months, effective July 19, 2023. The Commission found that Reardon represented a potential buyer who entered into a contract and paid a $10,000 due diligence fee. The listing agent had disclosed in the MLS that this property was located in a CoBRA zone, making it ineligible for federal flood insurance. Prior to entering into the contract, Reardon failed to disclose to the buyer that the property was located in a CoBRA zone. The buyer was unable to secure a loan as a result, terminated the contract, and requested a return of their due diligence fee from the sellers, but were denied.
DEBRA GOLDMAN (FUQUAY VARINA) – The Commission accepted the permanent voluntary surrender of the real estate license of Goldman, effective June 14, 2023. The Commission dismissed without prejudice allegations that Goldman violated provisions of the Real Estate License Law and Commission Rules. Goldman neither admitted nor denied misconduct.
JAMES RICHARD HRISO (CARY) – The Commission accepted the voluntary surrender of the real estate education approvals of Hriso, effective July 19, 2023. The Commission dismissed without prejudice allegations that Hriso violated provisions of the Real Estate License Law and Commission Rules. Hriso neither admitted nor denied misconduct.
NICANDER RANICO MEDALLA (APEX) – By Consent, the Commission suspended the broker license of Medalla for a period of 6 months, effective July 20, 2023. The Commission found that Medalla, the qualifying broker and broker-in-charge of Sercy Capital Group LLC, entered into a listing agreement and entered the property in the MLS indicating another firm, with whom he was affiliated, as the listing firm, that the subject property was adjacent to the Historic District, and that it had several updates and new features installed. Medalla failed to disclose that the property was in fact in the Historic District and failed to verify that required permits were in place or that licensed contractors were used for renovations in accordance with Historic District ordinances. Seven of the renovations done were not in compliance with Historic District ordinances, and the buyers did not discover the misrepresentations until after closing and were then responsible for remedying the violations.
SERCY CAPTIAL GROUP LLC (APEX) – By Consent, the Commission suspended the firm license of Sercy Capital Group, LLC for a period of 6 months, effective July 20, 2023. The Commission found that the firm entered into a listing agreement but advertised the property as being listed by another firm. In addition, the advertisement indicated that the subject property was adjacent to the Historic District when in fact it was inside the Historic District, and that it had several updates and new features installed. The firm failed to verify that required permits were in place or that licensed contractors were used or that renovations were done to the subject property in accordance with Historic District ordinances. In fact, seven of the renovations were not in compliance with Historic District ordinances, and the buyers did not discover the misrepresentations until after closing and were then responsible for remedying the violations. The firm’s license had expired but was later renewed, however, the broker-in-charge failed to re-designate himself as broker-in-charge and the firm continued to advertise and provide brokerage services without a broker-in-charge designated.