STEVEN OLOUGHLIN MORGAN (HUNTERSVILLE) – The Commission accepted the voluntary surrender of the real estate license of Morgan, effective June 19, 2024. The Commission dismissed without prejudice allegations that Morgan violated provisions of the Real Estate License Law and Commission Rules. Morgan neither admitted nor denied misconduct.
STEVEN ERIC BEAM (CHARLOTTE) – By Consent, the Commission suspended the broker license of Beam for a period of 3 years, effective May 1, 2024. The Commission then stayed the suspension following a 1.5-month active period upon certain conditions. The Commission found that Beam, acting as qualifying broker/broker-in-charge, failed to personally retain a copy of the trust account and transaction records after ceasing property management services for his firm, resulting in an inability to conduct a timely Commission audit.
JEFFREY DUSTIN BENNETT (BENSON) – By Consent, the Commission suspended the broker license of Bennett for a period of 12 months, effective June 19, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Bennett represented a seller in the subject transaction and negligently misrepresented the acreage of the subject property.
DIANA CABRERA BLANCO (CHARLOTTE) – By Consent, the Commission suspended the broker license of Blanco for a period of 6 months, effective June 17, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Blanco, acting as the listing agent, advertised a property as “remodeled top to bottom” but, prior to listing, failed to discover and disclose, with particularity, beyond what she personally observed, what renovations were completed, whether permits should have been obtained, or whether licensed contractors were required or, if they were required, used.
RE III INC (JACKSONVILLE) – By Consent, the Commission reprimanded the firm effective June 17, 2024. The Commission found that a broker affiliated with the firm and acting as buyer agent failed to notice that the subject property was listed on MLS as being on city sewer but was marked as being on septic on the Residential Property and Owner Association Disclosure Statement. The broker also failed to notice that the appraisal also showed the property as being on septic. At closing, a different broker affiliated with the firm discovered the discrepancy and advised the buyer to have a septic inspection before recording, after which, the buyer closed the transaction. The buyer agent paid for the buyer’s septic inspection.
AMY ELIZABETH DEMARS (JACKSONVILLE) – By Consent, the Commission reprimanded Demars effective June 17, 2024. The Commission found that Demars acted as broker-in-charge of a provisional broker who represented a buyer. The broker failed to notice that the subject property was listed on MLS as being on city sewer but was marked as being on septic on the Residential Property and Owner Association Disclosure Statement. The broker also failed to notice that the appraisal also showed the property as being on septic. At closing, a different broker affiliated with the firm discovered the discrepancy and advised the buyer to have a septic inspection before recording, after which, the buyer closed the transaction. The provisional broker paid for the buyer’s septic inspection.
CHRISTI HILL INC (JACKSONVILLE) – By Consent, the Commission reprimanded the firm effective June 17, 2024. The Commission found that a broker affiliated with the firm represented a seller. The broker, as listing agent, received a home inspection report and additional information from a buyer under contract regarding a leaking bathroom drainpipe, wobbly toilet, and damaged subfloor. The contract terminated after the parties could not come to an agreement on repairs and the listing agent failed to update the listing or otherwise disclose the material facts to subsequent buyers.
CHRISTI LYN HILL (JACKSONVILLE) – By Consent, the Commission reprimanded Hill effective June 17, 2024. The Commission found that Hill acted as broker-in-charge of a broker who represented a seller. The broker, as listing agent, received a home inspection report and additional information from the buyer under contract regarding a leaking bathroom drainpipe, wobbly toilet, and damaged subfloor. The contract terminated after the parties could not come to an agreement on repairs and the listing agent failed to update the listing or otherwise disclose the material facts to subsequent buyers.
RALEIGH REALTY INC (RALEIGH) – By Consent, the Commission reprimanded the firm effective June 17, 2024. The Commission found that an affiliated broker acted as buyer agent on behalf of a client for whom he was also acting as listing agent for the sale of the client’s property. The buyer agent failed to advise his client that the contract did not include a contingency for the sale of his current home, failed to advise or request an extension of the due diligence period when repairs has not been agreed on, and failed to ensure that a second extension had been signed by the seller. The client was reimbursed the $20,000 due diligence fee and the firm instituted new training and written policies regarding contingent sales.
JERRY DANIEL ROBTOY (CARY) – By Consent, the Commission suspended the broker license of Robtoy for a period of 2 years, effective June 15, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Robtoy, acting as both listing agent and buyer agent for a client, failed to ensure that a written contingency for the sale of the client’s home. Robtoy failed to advise or request an extension to the due diligence period when repairs had not yet been agreed upon and failed to ensure a second amendment to the contract was signed by all parties. The client lost a $20,000 non-refundable due diligence fee when the purchase transaction did not close. The client was reimbursed the $20,000 due diligence fee.
HEATHER DANIELLE STONE (HICKORY) – By Consent, the Commission reprimanded Stone effective June 20, 2024. The Commission found that Stone represented the seller of the subject property that was encumbered by a 99-year lease to a neighbor of the property. The seller provided Stone with a lease termination that was purportedly signed by the lessee. In addition, in order to convey clear title to the property, Stone witnessed the seller’s ex-wife and current husband sign a general warranty deed. Stone then caused her husband, who was then a notary public, to falsely notarize these two documents.
JONATHAN W WASHBURN (WILMINGTON) – The Commission accepted the voluntary surrender of the real estate license of Washburn, effective June 20, 2024. The Commission dismissed without prejudice allegations that Washburn violated provisions of the Real Estate License Law and Commission Rules. Washburn neither admitted nor denied misconduct.
WILLIAM HOWARD WEST V (WINSTON SALEM) – By Consent, the Commission suspended the broker license of West for a period of 12 months, effective June 15, 2024. The Commission found that West, acting as a listing agent, relied on their seller-client’s representation that the subject property was partially on city sewer and partially on septic following a 1970s addition. The elderly seller had not lived in the property for several years. West contacted the county and asked about utilities but failed to discover and accurately disclose that the property was fully on septic and instead had a city water/well split. The buyer of the subject property discovered that discrepancy only after closing.
DAVID A ZELINSKI (JACKSONVILLE) – By Consent, the Commission suspended the broker license of Zelinski for a period of 30 months, effective June 17, 2024. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Zelinski acted as listing agent for a property for which he had previously acted as property manager. The seller represented on the Residential Property and Owner Association Disclosure Statement that the property was on septic and was permitted for four bedrooms. Zelinski’s assistant entered the property as being on city sewer on MLS and Zelinski, while reviewing, failed to notice the misrepresentation. Zelinski also failed to obtain the septic permit that showed the property was permitted for three bedrooms. At closing, the buyer discovered the property was on septic and that the permit was for three bedrooms. The parties agreed to delay the settlement until the buyer had the opportunity to inspect and consider their options. The buyer’s agent paid for a septic inspection and Zelinski paid for the septic system to be pumped and distribution box and filter to be cleaned and the buyer, thereafter, approved recording the deed.