AMERICAN REAL ESTATE ASSOCIATES, INC. (Raleigh) – The Commission accepted the permanent voluntary surrender of the firm license of American Real Estate Associates effective February 6, 2013. The Commission dismissed without prejudice allegations that American Real Estate Associates violated provisions of the Real Estate License Law and Commission rules. American Real Estate Associates neither admitted nor denied misconduct.
DONNA LUCILLE BAKER (Bryson City) – After a hearing, the Commission revoked the broker license of Ms. Baker effective February 21, 2013. The Commission found that Ms. Baker, acting as sole proprietor of a property management and vacation rental business, failed to hold trust moneys in a separate trust account and to account for and remit rental proceeds to owners in a timely manner; commingled her personal funds with trust moneys and by holding trust money in an interest-bearing account without her principal’s permission and without providing for the disbursement of interest; failed to comply with rules adopted by the Commission; failed to commemorate agency agreements with her owner clients in writing; failed to maintain a trust account and the records pertaining to it in compliance with Commission rules; and failed to designate herself broker-in-charge of her sole proprietorship when she was accepting money and holding money for others.
DIVINE PROPERTY MANAGEMENT, LLC (Goldsboro) – By Consent, the Commission revoked the firm license of Divine Property Management effective February 6, 2013. The Commission found that Divine Property Management failed to maintain trust accounts for tenant security deposits, rents, and income in compliance with Commission rules. The Commission also found that Divine Property Management commingled personal funds with monies held in trust for others, converted trust funds for personal gain, and failed to forward rental payments and tenant security deposits in a timely manner.
JOHN MAC CHUBIRKO (Kannapolis) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Chubirko effective April 4, 2013. The Commission dismissed without prejudice allegations that Mr. Chubirko violated provisions of the Real Estate License Law and Commission rules. Mr. Chubirko neither admitted nor denied misconduct.
KENNEDY EARL GRAY (Wilson) – By Consent, the Commission revoked the broker license of Mr. Gray effective February 6, 2013. The Commission found that Mr. Gray failed to maintain trust accounts for tenant security deposits, rents, and income in compliance with Commission rules. The Commission also found that Mr. Gray commingled personal funds with monies held in trust for others, converted trust funds for personal gain, and failed to forward rental payments and tenant security deposits in a timely manner.
KENNETH D. HARRIS (Marion) – By Consent, the Commission revoked the broker license of Mr. Harris effective February 20, 2013. The Commission found that Mr. Harris managed properties through his sole proprietorship on behalf of his landlord clients, but failed to commemorate their agreement in writing; that he collected rents, but failed to deposit the funds in a trust account and failed to perform reconciliations of his trust accounts; and that he failed to respond to three Letters of Inquiry sent by the Commission. The Commission also found that Mr. Harris converted approximately $3,000 of his client’s funds to his personal use.
FRED LEE HEINA II (Gastonia) – By Consent, the Commission reprimanded Mr. Heina effective March 1, 2013. The Commission found that Mr. Heina performed approximately 350 Broker Price Opinions (BPO’s) in 2010 and 400 in 2011 and that none of the BPO’s resulted in a listing agreement. The Commission also found that Mr. Heina failed to provide a list of his 2011 BPO’s when the records were requested by the Commission.
DERITA KAY MASON (Fayetteville) – The Commission accepted the voluntary surrender of the broker license of Ms. Mason for a period of two years effective February 6, 2013. The Commission dismissed without prejudice allegations that Ms. Mason violated provisions of the Real Estate License Law and Commission rules. Ms. Mason neither admitted nor denied misconduct.
DEXTER A. MCMURRAY (Charlotte) – By Consent, the Commission suspended the broker license of Mr. McMurray for a period of one year effective April 1, 2013. The Commission then stayed the suspension for a probationary period through and including March 31, 2015. The Commission found that Mr. McMurray failed to maintain his trust account in compliance with the Real Estate License Law and Commission rules. The Commission noted that Mr. McMurray has now closed his trust account and no longer holds monies for others and that no consumers were harmed.
THOMAS A. NIELSEN (Raleigh) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Nielsen effective February 6, 2013. The Commission dismissed without prejudice allegations that Mr. Nielsen violated provisions of the Real Estate License Law and Commission rules. Mr. Nielsen neither admitted nor denied misconduct.
WALTER L. PETERSON III (Jefferson) – By Consent, the Commission suspended the broker license of Mr. Peterson for a period of six months effective February 1, 2013. The Commission then stayed the suspension for a probationary period of six months ending August 1, 2013. The
Commission found that Mr. Peterson acted as a buyer agent for his client in the purchase of a home, but failed to enter into a written buyer agency agreement with his client. The Commission also found that Mr. Peterson failed to discuss or recommend radon testing and, after the purchase, the buyer discovered the property had high radon levels.
REALTY QUEST LLC (Durham) – The Commission accepted the permanent voluntary surrender of the firm license of Realty Quest effective March 31, 2013. The Commission dismissed without prejudice allegations that Realty Quest violated provisions of the Real Estate License Law and Commission rules. Realty Quest neither admitted nor denied misconduct.
JENNIFER MUSSHAFEN ROSS (Kitty Hawk) – By Consent, the Commission revoked the broker license of Ms. Ross effective February 6, 2013. The Commission found that Ms. Ross, on or about November 2, 2011, was convicted in Dare County of misdemeanor injury to personal property and misdemeanor simple assault and, thereafter, pled guilty to and was convicted of various felonies; that Ms. Ross failed to report timely the criminal misdemeanor convictions to the Commission; and that Ms. Ross failed to respond to Letters of Inquiry sent by the Commission.
SANDDOLLAR REALTY MANAGEMENT LLC (Kitty Hawk) – By Consent, the Commission reprimanded Sanddollar Realty Management effective December 31, 2012. The Commission found that Sanddollar Realty Management, a real estate brokerage firm, failed to maintain its trust accounts in compliance with the Real Estate License Law and Commission rules. The Commission noted that the firm has brought its trust accounts into compliance.
HARRY WILLIAM SANDFORD, JR. (Burlington) – By Consent, the Commission reprimanded Mr. Sandford effective March 7, 2013. The Commission found that Mr. Sandford, through his unlicensed company provided rent-to-own, property management and other brokerage services to consumers, and failed to designate himself or any other qualified licensed person as broker-in-charge of the firm. The Commission also found that Mr. Sandford in his advertising of properties and services failed to identify that he was a licensed real estate broker, the name of a licensed firm or the name of a licensed real estate broker. The Commission further found that Mr. Sandford’s advertisements established down payment terms to finance purchases, but failed to disclose interest rates on the loan, the term of such loan, or other details as required by federal Truth-in-Lending laws.
GEORGE D. SEAY (Kitty Hawk) – By Consent, the Commission reprimanded Mr. Seay effective December 31, 2012. The Commission found that Mr. Seay, acting as broker-in-charge and qualifying broker of a real estate brokerage firm, failed to maintain his trust accounts in compliance with the Real Estate License Law and Commission rules. The Commission noted that Mr. Seay has brought his trust accounts into compliance.
SHOWCASE REALTY OF THE CAROLINAS, INC. (Charlotte) – By Consent, the Commission suspended the firm license of Showcase Realty of the Carolinas for a period of one year effective April 1, 2013. The Commission then stayed the suspension for a probationary period through and including March 31, 2015. The Commission found that Showcase Realty of the Carolinas failed to maintain its trust account in compliance with the Real Estate License Law and Commission rules. The Commission noted that Showcase Realty of the Carolinas has now closed its trust account and no longer holds monies for others and that no consumers were harmed.
JULES W. SMYTHE, JR. (Winston-Salem) – By Consent, the Commission revoked the broker license of Mr. Smythe effective February 20, 2013. The Commission found that Mr. Smythe, acting as qualifying broker and broker-in-charge of a real estate brokerage firm, in 2009 received his client’s closing funds of $8,500 and a check for the seller from the buyer outside of closing for $129 for interest to compensate for the delayed settlement and failed to deposit the client funds into a trust account; and that the client suffered no monetary losses. The Commission also found that, in June, 2009, Mr. Smythe received a check for $5,000 from a closing attorney written to Mr. Smythe’s buyer client for escrowed plumbing repair expenses and failed to deposit these funds into a trust account; and that the client suffered no monetary losses. The Commission finally found that, in November 2011, Mr. Smythe was convicted of Misdemeanor Worthless Check and failed to report the conviction to the Commission. The Commission noted that Mr. Smythe’s contention that prolonged health issues and the inability to locate critical witnesses and documents, which were subpoenaed, interfered with his ability to present a full defense.
LARRY A. STANLEY (Jefferson) – By Consent, the Commission reprimanded Mr. Stanley effective March 1, 2013. The Commission found that Mr. Stanley acted as listing agent for a property that he advertised as having three bedrooms; that he failed to obtain a copy of the septic permit to verify the permitted number of bedrooms; and that, after closing, the buyer discovered the property was permitted for only two bedrooms. The Commission noted that Mr. Stanley revised his firm’s written policies to require listing agents to obtain a copy of the septic permit as part of the listing process.
JAMES S. WAGONER (Sneads Ferry) – By Consent, the Commission reprimanded Mr. Wagoner effective April 1, 2013. The Commission found that Mr. Wagoner, who was a certified residential real estate appraiser, in January 2009 entered into a permanent voluntary surrender of his real estate appraisal certificate in order to conclude a disciplinary case before the North Carolina Appraisal Board. The Commission noted that there were no findings of fact in connection with the surrender.
CHERYL CUNNINGHAM WARREN (Charlotte) – By Consent, the Commission reprimanded Ms. Warren effective May 1, 2013. The Commission found that Ms. Warren, acting as broker-in-charge of a property management firm, performed all trust account record keeping for the firm, but failed to designate rental account checks as trust or escrow and failed to maintain duplicate copies of deposit slips for the maintenance account. The Commission also found that Ms. Warren’s reconciliation of the rental account contained numerous undeclared items, the account did not balance, and Ms. Warrant engaged in deficit spending.
JENNIE G. WILKES (Canton) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Wilkes effective March 7, 2013. The Commission dismissed allegations that Ms. Wilkes had violated provisions of the Real Estate License Law and Commission rules. Ms. Wilkes neither admitted nor denied misconduct.
This article came from the May 2013-Vol44-1 edition of the bulletin.