License Applicants Must File Report Of Criminal Records

License applicants are now required to submit a criminal record report with their license application in order for the Real Estate Commission to have more complete and accurate information about their’ criminal history.

The Commission is responsible for determining that each license applicant possesses the honesty, truthfulness, integrity and general moral character necessary to protect the public interest and promote public confidence in the real estate brokerage business.  Probably the single most important factor considered by the Commission with regard to an applicant’s character is his/her criminal record.  The Commission has always required applicants to voluntarily disclose all previous criminal convictions and any pending charges, and their criminal records have been checked when deemed appropriate. The new requirement will provide the Commission with the criminal records of all applicants.

Any applicant who has resided in North Carolina during the previous seven years must submit a statewide criminal record report that shows all criminal offenses or pending charges that have been recorded in North Carolina’s computerized statewide criminal record database.  An applicant who has resided in another state during the past seven years must submit a separate report for each out-of-state county in which he/she has lived during that period and that report must be based on a search of the appropriate county criminal records.  (Many other states do not yet have a statewide computerized criminal record reporting system.)  As in the past, applicants are still required to disclose all criminal convictions, regardless of when or where they occurred or whether they are included in the report submitted to the Commission.

Applicants are provided with a list of reporting services known to prepare reports satisfactory to the Commission.  The fees charged by these reporting services for a report range from $9 to $22 for a North Carolina statewide report and $5 to $50 for an out-of-state county report.

Although this requirement increases the  costs to applicants and is creating more work for the Commission, the Commission believes this is an important step that will help it better assure that the interests of real estate consumers are properly protected.

This article came from the February 2003-Vol33-3 edition of the bulletin.

Commission Receives Four Top Industry Awards

As what one speaker described as “the North Carolina Awards Show,” the Real Estate Commission won top honors in four separate categories at the Annual Conference of the Association of Real Estate License Law Officials (ARELLO). The Commission received ARELLO’s “Investigator of the Year” award, “Communication Excellence Award” for its Real Estate Bulletin newsletter, and two education awards recognizing its Broker-in-Charge and Trust Account courses.

Shown are (left to right) Auditor/Investigator Robin Tanner, Publications Officer Robert Forshaw, Commission Vice Chairman William Lackey, Legal Education Officer Patricia Moylan, Commission Chairman Allan Dameron and Director of Audits and Investigations Emmet Wood.

This article came from the February 2003-Vol33-3 edition of the bulletin.

Commission Welcomes Chilean Representative

The Real Estate Commission was recently honored by a visit from Rene Aranguiz Lezaeta, Director of Camara Nacional de Servicios Inmobiliarios Ag, Chile’s preeminent real estate trade association.

Mr. Aranguiz met with the Commission’s senior staff to discuss North Carolina’s real estate licensing and regulatory program, and the Commission learned about efforts to establish a similar program in Chile.

The very informative meeting was arranged by Raleigh real estate broker Jose M. Serrano.

This article came from the February 2003-Vol33-3 edition of the bulletin.

Billie J. Mercer Award Commission Establishes Award For ‘Excellence In Education’

To recognize excellence in the field of real estate education, the Real Estate Commission will begin presenting the Billie J. Mercer Excellence in Education Award annually to the person selected by the North Carolina Real Estate Educators Association as its “Educator of the Year.”

The award was established in memory of Mrs. Mercer who, as a member and former Chair of the Commission, was dedicated to furthering the education and knowledge of real estate practitioners and persons entering the real estate business.

The trophy, which will be presented at the Association’s spring meeting, will be engraved with the recipient’s name and remain on display in the Commission office.

This article came from the February 2003-Vol33-3 edition of the bulletin.

To: Brokers-In-Charge Advantages of an All-Broker Office

The license Law permits licensed NC salespersons to obtain a broker license simply by completing a 60-hour broker prelicense course.  No additional license examination is required!  During the past two years, thousands of salespersons have taken advantage of the opportunity to upgrade their salesperson licenses to broker licenses.

Do all your affiliated agents hold a broker license?  If not, perhaps you should carefully consider the advantages of operating an all-broker office.

• Better-EducatedAgents.   Salespersons who complete the 60-hour broker prelicense course and obtain their broker licenses should be considerably more knowledgeable about many crucial aspects of real estate practice. Generally, a better-educated agent is in a position to provide more competent assistance and advice to clients and customers, which directly results in better-served and more satisfied real estate consumers.  Better-educated agents also can more effectively represent their company and reduce the company’s risk associated with negligent or improper conduct.
• Reduced Broker-in-Charge Supervisory Responsibilities.  Under the North Carolina Real Estate License Law and Commission Rules, a broker-in-charge has a substantially higher level of responsibility for the supervision of affiliated salespersons than for the supervision of affiliated brokers.  An all-broker office reduces the supervisory burden imposed on a broker-in-charge.  Having only brokers in the office would seem to be increasingly important in view of this reduced supervisory burden and the trend toward agents performing more functions outside the office through the use of modern communications and computer technology.
• Greater Prestige of an All-Broker Office and Broker Licensure.  It is logical to assume that real estate consumers and agents in other real estate offices may very well hold an all-broker office in higher regard than the typical office with both brokers and salespersons.  Similarly, on an individual basis, brokers would more likely command a higher level of respect and confidence than salespersons.

If you still have salespersons under your supervision, you should encourage them to improve their knowledge and level of competence by taking the broker prelicense course and obtaining their broker licenses.  Contact a Commission-approved school in your area today for a schedule of broker course offerings and require your salespersons to upgrade to a broker license as soon as possible.  A list of approved schools is available on the Commission’s website at www.ncrec.state.nc.us.

This article came from the February 2003-Vol33-3 edition of the bulletin.

Disciplinary Actions – February 2003-V33-3

MICHAEL J. BARKOVICH (Jacksonville) – By Consent, the Commission revoked the broker license of Mr. Barkovich effective October 1, 2002. The Commission found that Mr. Barkovich collected more than $3,000 in cash rent payments from a tenant and failed to turn them over to the firm with which he was associated or its broker-in-charge, instead converting the funds to his own use. Mr. Barkovich neither admitted nor denied any misconduct.

RHONDA K. BATCHELOR (Wilmington) – By Consent, the Commission reprimanded Ms. Batchelor effective October 1, 2002. The Commission found that Ms. Batchelor, as a broker, listed a home and failed to disclose material facts personally known by her about the home, i.e., that it had been clad in synthetic stucco and had suffered fire damage.

BDSC PROPERTY MANAGEMENT, INC. (Calabash) – By Consent, the Commission revoked the firm license of BDSC Property Management effective December 1, 2002. The Commission found that BDSC Property Management failed to retain and maintain certain transaction and trust account records.

LEONARD R. BEAVER (Kannapolis) – By Consent, the Commission suspended the broker license of Mr. Beaver effective April 1, 2001 for a period of one year. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Beaver, as principal broker and broker-in-charge for a real estate firm, allowed the firm to engage in general contracting without first obtaining the necessary license from the North Carolina Licensing Board for General Contractors.

CAROLYN A. BERRY (Sapphire) – By Consent, the Commission reprimanded Ms. Berry effective September 12, 2002. The Commission found that Ms. Berry, when notarizing an application for a real estate license, recited  that the applicant had appeared before her when, in fact, the applicant had not. Her notary public commission was subsequently canceled due to this improper notarization.

WILLIAM E. BLACK (Durham) – The Commission revoked the broker license of Mr. Black effective October 28, 2002. The Commission found that Mr. Black, as principal broker and broker-in-charge of a property management firm, failed to keep certain clients informed, failed to account for or remit certain moneys coming into his possession within a reasonable amount of time, failed to properly maintain and deposit in trust all money he received and failed to safeguard client funds in his possession.

HERBERT G. CAHOONE (Hampstead) – By Consent, the Commission reprimanded Mr. Cahoone effective October 1, 2002. The Commission found that Mr. Cahoone, as broker-in-charge of his own sole proprietorship, continued to market a subdivision and act as the seller’s agent for lots in a residential subdivision for more than a year after the expiration of the written listing agreement with the seller.

JOHN M. CAMPBELL (Asheville) – By Consent, the Commission revoked the broker license of Mr. Campbell effective January 1, 2002. The Commission found that Mr. Campbell failed to disclose prior criminal convictions on his application for a salesperson license as well as his application for a broker license. The Commission further ordered that Mr. Campbell’s subsequent application for a salesperson be granted on certain conditions.

CAROLINA PIEDMONT REALTY, INC. (Clemmons) – By Consent, the Commission revoked the firm license of Carolina Piedmont Realty effective December 15, 2002. The Commission found that Carolina Piedmont Realty failed to maintain the funds of others in a trust account and failed to promptly account for and remit those funds.

JANEISE B. COLLINS (Hampstead) – By Consent, the Commission suspended the salesperson license of Ms. Collins for a period of one year effective October 1, 2002. Three months of the suspension were active, with the remainder stayed for a probationary term. The Commission found that Ms. Collins continued to show properties after listing agreements were no longer in effect and misrepresented her agency relationship to the two owners of the properties.

DANIEL P. COUNCELL (Asheville) – The Commission revoked the broker license of Mr. Councell effective October 9, 2002. The Commission found that Mr. Councell, as principal broker and broker-in-charge of a real estate firm, failed to obtain signed lease agreements from tenants for rental units he contracted to manage and charged commissions on uncollected rent not authorized by his property management agreement. The Commission also found that Mr. Councell failed to account for the funds of others in his possession, to properly maintain and retain records relating to trust accounts and to produce trust account and transaction records requested by the Commission’s auditor.

LOU ANN EARNHARDT (Statesville) – By Consent, the Commission reprimanded Ms. Earnhardt effective June 2, 2002. The Commission found that Ms. Earnhardt failed to obtain earnest money as required by the contract and gave the buyers conflicting information concerning the validity of their contract. The Commission also found that Ms. Earnhardt was unable to produce agency disclosure documentation for a transaction in which she acted as a seller’s subagent.

KAREN R. ETHERIDGE (Kitty Hawk) – By Consent, the Commission suspended the salesperson license of Ms. Etheridge effective July 1, 2001 for a period of 30 days. The Commission then stayed the suspension on certain conditions. The Commission found that Ms. Etheridge, as a listing agent, did not disclose to buyers that a neighbor claimed ownership of the private road accessing the listed property. The Commission also found that Ms. Etheridge’s listing contract had expired.

L. DAVID GARDNER (Cary) – By Consent, the Commission revoked the salesperson license of Mr. Gardner effective December 1, 2002. Upon satisfaction of certain conditions, Mr. Gardner is eligible to seek and obtain the reinstatement of his license. The Commission found that Mr. Gardner failed to disclose various criminal convictions on his license application.

GEORGE W. GOSS (Durham) – By Consent, the Commission suspended the broker license of Mr. Goss effective January 1, 2001 for a period of 30 days. The Commission found that Mr. Goss, as broker-in-charge, allowed a salesperson to practice with an inactive license and failed to maintain trust account records as required by Commission rules.

GUY M. GREER (Charlotte) – By Consent, the Commission reprimanded Mr. Greer effective January 16, 2003. The Commission found that Mr. Greer, in various license applications between 1989 and 2000, failed to disclose a 1977 misdemeanor conviction. The Commission noted the Mr. Greer cooperated in the investigation.

JUANITA P. HILDENBRAND (Charlotte) – By Consent, the Commission suspended the salesperson license of Ms. Hildenbrand for a period of 30 days effective January 16, 2003. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Hildenbrand, in listing a property, relied on tax records instead of measuring and overstated the actual square footage. The Commission also found that Ms. Hildenbrand, in a related transaction, failed to provide the seller with written disclosure when presenting an offer that she represented the buyer.

SHEILA R. HOLDEN (Supply) – By Consent, the Commission revoked the salesperson license of Ms. Holden effective December 1, 2002. Upon satisfaction of certain conditions, Ms. Holden is eligible to seek and obtain the reinstatement of her license. The Commission found that Ms. Holden had failed to disclose certain misdemeanor convictions in her salesperson and broker license applications.

CHARLES L. HOLLOWAY (Franklinton) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Holloway effective September 12, 2002. The Commission dismissed without prejudice allegations that Mr. Holloway violated provisions of the Real Estate License Law and Commission rules. Mr. Holloway neither admitted nor denied misconduct.

MICHAEL D. HUMBLE (Fayetteville) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Humble effective December 16, 2002. The Commission dismissed without prejudice allegations that Mr. Humble violated provisions of the Real Estate License Law and Commission rules. Mr. Humble neither admitted nor denied misconduct.

CHARLES T. KELLY (Morehead City) – By Consent, the Commission revoked the broker license of Mr. Kelly effective October 1, 2002. The Commission found that Mr. Kelly, as secretary-treasurer of a homeowner’s association, misappropriated in excess of $100,000 in funds for his own use and to fund his own real estate company. The Commission also found that Mr. Kelly, as Broker-in-Charge of his own firm, did not fully comply with Commission record-keeping requirements relating to identifying the purpose of deposits and disbursements on ledgers and in the journal and the parties to a sales transaction. The Commission noted that Mr. Kelly replaced the misappropriated funds.

EARL C. KELLY (Roxboro) – By Consent, the Commission suspended the broker license of Mr. Kelly for a period of 90 days effective December 16, 2002. One month of the suspension was active, with the remainder stayed for a probationary term. The Commission found that Mr. Kelly, as the listing agent for two residential properties, was aware that the builder of the properties was not a licensed general contractor, but did not disclose this fact to the buyers.

MARTIN E. KIMSEY (Highlands) – By Consent, the Commission suspended the broker license of Mr. Kimsey effective June 10, 2002 for a period of 90 days. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Kimsey, as a principal and broker-in-charge of a real estate firm, failed to properly supervise an employee’s handling of trust account funds and to properly account for trust money in the firm’s possession. The Commission noted that Mr. Kimsey cooperated with the Commission’s inquiry and corrected the record-keeping deficiencies.

DAVID M. KIRBY (Charlotte) – By Consent, the Commission revoked the broker license of Mr. Kirby effective September 15, 2002. The Commission further ordered that Mr. Kirby is permanently barred from applying for reinstatement of his broker license, but may apply for reinstatement of his salesperson license under certain conditions. The Commission found that Mr. Kirby approved payment of compensation for brokerage referral services to an unlicensed person.

LEONARD BEAVER REALTY AND CONSTRUCTION, INC. (Kannapolis) – By Consent, the Commission suspended the firm license of Leonard Beaver Realty and Construction effective April 1, 2001 for a period of one year. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Leonard Beaver Realty engaged in the practice of general contracting without first obtaining the necessary license from the North Carolina Licensing Board for General Contractors.

NANCY LIN ( Cary) – By Consent, the Commission reprimanded Ms. Lin effective March 22, 2001. The Commission found that Ms. Lin acted as a buyer agent without a written agreement.

ANN LOCKLEAR (Fayetteville) – By Consent, the Commission suspended the broker license of Ms. Locklear effective December 1, 2002 for a period of two years. One month of the suspension was active with the remainder stayed for a probationary period of five years. The Commission found that Ms. Locklear failed to report convictions for writing worthless checks.

LYNN SPAIN PROPERTIES (Nashville) – The Commission accepted the voluntary surrender of the firm license of Lynn Spain Properties for a period of two years effective February 1, 2003. The Commission dismissed without prejudice allegations that Lynn Spain Properties violated provisions of the Real Estate License Law and Commission rules. Lynn Spain Properties neither admitted nor denied misconduct.

CAROLYN J. MARTIN (Ahoskie) – By Consent, the Commission reprimanded Ms. Martin effective June 10, 2002. The Commission found that Ms. Martin failed to adequately supervise an unlicensed bookkeeper in the proper maintenance of Ms. Martin’s accounts, resulting in embezzlement and a fund shortfall. The Commission noted that Ms. Martin replaced the missing funds, corrected the trust account bookkeeping and prosecuted the bookkeeper for the misuse of funds.

MASTERS REALTY INC., t/a RE/MAX MASTERS REALTY (Morehead City) – The Commission accepted the permanent voluntary surrender of the firm license of Masters Realty effective October 1, 2002. The Commission dismissed without prejudice allegations that Masters Realty violated provisions of the Real Estate License Law and Commission rules. Masters Realty neither admitted nor denied misconduct.

GARLAND G. MCCOY  (Bolivia) – By Consent, the Commission suspended the broker license of Ms. McCoy (now known as Ernestine G. Gossett) for a period of two years effective December 1, 2002. The Commission further ordered that the suspension will be stayed on December 1, 2003 for a probationary period of one year on certain conditions. The Commission found that Ms. McCoy failed to retain and maintain certain transaction and trust account records.

MCR PROPERTIES, INC. (Charlotte) – By Consent, the Commission reprimanded MCR Properties effective January 16, 2003. The Commission found that MCR, on its original and reinstatement license application, failed to disclose a misdemeanor conviction of its principal shareholder.

WANCHAI PANASETHANED (Greensboro) – By Consent, the Commission suspended the broker license of Mr. Panasethaned effective June 10, 2002 for a period of two years. The Commission then stayed the suspension for a probationary period through April 30, 2005. The Commission found that Mr. Panasethaned acted as a buyer agent without a written agreement and without providing written non-discrimination disclosures, did not maintain proper records of an earnest money deposit and delayed in refunding earnest money after all parties to a transaction had agreed to do so.

KENNETH R. PARKER (Wilmington) – The Commission ordered the revocation of the broker license of Mr. Parker effective February 1, 2003. The Commission found that Mr. Parker acted as a buyer agent and a listing agent without written agreements, failed to provide written disclosure of agency duties and relationships at first substantial contact, improperly prepared and used a dual agency agreement, made misrepresentations relating to the use of the Residential Property Disclosure Statement and customer access to and alterations of the seller’s property, failed to disclose to the seller denial of financing to the buyer and involuntary committal of the buyer, altered a contract to purchase without knowledge of the parties, and returned a disputed earnest money deposit to a buyer without consent of the seller or a court order. On appeal, the Superior Court of New Hanover County affirmed the order of the Commission to revoke the broker license of Mr. Parker.

CURTIS R. POLLY (Brevard) – By Consent, the Commission suspended the salesperson license of Mr. Polly effective October 1, 2002. Three months of the suspension were active with the remainder stayed for a probationary term of 12 months. The Commission found that Mr. Polly, in his salesperson license application, omitted required information including several criminal convictions from the State of Florida. The Commission noted that Mr. Polly, in a subsequent application for a broker license, disclosed his entire criminal history.

SCOTT K. ROOTH (Sapphire) – By Consent, the Commission suspended the broker license of Mr. Rooth for a period of 30 days effective March 1, 2003 and imposed a probationary period of one year effective March 31, 2003. The Commission found that Mr. Rooth, as the owner of a real estate firm, failed to supervise the broker-in-charge to ensure books and records were maintained according to Commission rules. The Commission noted that no client monies were placed in jeopardy.

WILLIAM C. SAPP, JR. (Monroe) – By Consent, the Commission suspended the salesperson license of Mr. Sapp for a period of 90 days effective November 1, 2002. The Commission found that Mr. Sapp, while on inactive status due to failure to complete continuing education courses, engaged in a real estate sales transaction by falsely using the name of another licensee.

RONALD J. SHANNON (Long Beach) – The Commission accepted the voluntary surrender of the broker license of Mr. Shannon for a period of one year effective December 1, 2002. The Commission dismissed without prejudice allegations that Mr. Shannon violated provisions of the Real Estate License Law and Commission rules. Mr. Shannon neither admitted nor denied misconduct.

SHANNON’S SERVICES, INC. (Long Beach) – The Commission accepted the voluntary surrender of the firm license of Shannon’s Services for a period of one year effective December 1, 2002. The Commission dismissed without prejudice allegations that Shannon’s Services violated provisions of the Real Estate License Law and Commission rules. Shannon’s Services neither admitted nor denied misconduct.

JOHN R. SNOW (Cary) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Snow effective October 16, 2002. The Commission dismissed without prejudice allegations that Mr. Snow violated provisions of the Real Estate License Law and Commission rules. Mr. Snow neither admitted nor denied misconduct.

LYNN M. SPAIN (Zebulon) – The Commission accepted the voluntary surrender of the broker license of Ms. Spain for a period of two years effective February 1, 2003. The Commission dismissed without prejudice allegations that Ms. Spain violated provisions of the Real Estate License Law and Commission rules. Ms. Spain neither admitted nor denied misconduct.

NANCY C. STREETMAN (Greensboro) – By Consent, the Commission suspended the salesperson license of Ms. Streetman effective December 1, 2002 for a period of 60 days. One month of the suspension was active with the remainder stayed for a probationary period of eleven months. The Commission found that Ms. Streetman represented a buyer without a written agreement and without providing adequate agency disclosure as required by Commission rules. The Commission also found that Ms. Streetman left one firm and joined another and instructed parties to terminate a pending contract and enter a new one showing her new firm as the agent in the transaction. The Commission noted that Ms. Streetman has since resolved her differences with her former firm.

LYNNE G. TAYLOR (Mebane) – By Consent, the Commission suspended the broker license of Ms. Taylor for a period of 24 months effective December 1, 2002. The Commission found that Ms. Taylor engaged in the real estate business and received payment for services during times when her license had expired or was on inactive status. The Commission also found that Ms. Taylor failed to deposit and maintain earnest money in a trust account. Ms. Taylor neither admitted nor denied any misconduct.

MARY H. TEMPLETON (Clemmons) – By Consent, the Commission revoked the broker license of Ms. Templeton effective December 15, 2002. The Commission found that Ms. Templeton, as principal broker and broker-in-charge of a real estate firm, failed to maintain the funds of others in a trust account and failed to promptly account for and remit those funds.

THE PROPERTY MARKETPLACE, INC. (Durham) – The Commission revoked the firm license of The Property Marketplace effective October 28, 2002. The Commission found that The Property Marketplace, a property management firm, failed to keep certain clients informed, failed to account for or remit certain moneys coming into its possession within a reasonable amount of time, failed to properly maintain and deposit in trust all money it received as a licensee and failed to safeguard client funds in its possession.

CHARLENE S. TRULL (Maggie Valley) – By Consent, the Commission suspended the salesperson license of Ms. Trull for a period of 90 days effective October 1, 2002. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Trull, with little or no experience in the sale of commercial properties, used the Standard Form Offer to Purchase and Contract, designed primarily for single-family residential sales, rather than advising the drafting of an appropriate commercial contract by an attorney, and did not advise her buyer-clients to obtain specialized inspections, including those for a swimming pool, found after closing to have a damaged plumbing system, and termite damage, found after closing to be extensive.

THERESA E. WITHERS (Hickory) – By Consent, the Commission revoked the broker license of Ms. Withers effective March 21, 2001. The Commission found that Ms. Withers signed her ex-husband’s name on a deed to convey property, applied a notary seal without the knowledge or consent of its owner and caused the document to be recorded with the local Register of Deeds. The Commission further ordered that Ms. Withers’ subsequent application for reinstatement of her salesperson license be granted on certain conditions.

WNH REALTY, INC. (Pinehurst) – The Commission accepted the voluntary surrender of the firm license of WNH Realty for a period of one year effective September 1, 2002. The Commission dismissed without prejudice allegations that WNH violated provisions of the Real Estate License Law and Commission rules. WNH neither admitted nor denied misconduct.

This article came from the February 2003-Vol33-3 edition of the bulletin.