The Commission has published a new Q&A brochure – Questions and Answers on: Owning Vacational Rental Property – focusing on basic information that you should have if you or your clients intend to put property on the vacation rental market.
The brochure is now available for purchase at 25 cents a copy through the online publications order form on the Commission website or through an order form on the website and in this Bulletin that may be printed and mailed.
This article came from the March 2007-Vol37-3 edition of the bulletin.
Brokers-in-Charge will find expanded management resources through a new feature on the Commission’s website enabling them to track certain information about licensees affiliated with them or under their supervision.
The new “BIC Only” tab on the Commission’s home page, at www.ncrec.state.nc.us, provides access to a variety of current data relating to each licensee, a link to the online BIC Declaration Form, and a summary of the Broker-in-Charge’s continuing education credits.
By clicking on the “BIC Only” tab and entering their license number and PIN, the Broker-in-Charge will be able to view and print the following:
• A listing of all licensees for whom Commission records show as affiliated with or under the supervision of the Broker-in-Charge.
• The “level” of license for those listed (i.e., Provisional Transitional Broker (PBT), Provision Broker (PB) or Provisional Broker with a 2009 deadline for taking postlicensing courses (PB9). [See pages 8, 9 and 10 in this issue of the Real Estate Bulletin for further information on these “levels”.]
• The renewal date for each licensee.
• Continuing education credits for each licensee.
• Postlicensing education credits (if needed) for each licensee.
• A link to the Broker-in-Charge Declaration Form, which can be completed online or downloaded if a paper copy is preferred.
• A summary of the BIC’s continuing education credits (which are also available to the BIC through the Licensee Login and Licensees Only tabs on the Home page).
The Commission will continue to update this area to add more services to assist Brokers-in-Charge in the future.
This article came from the March 2007-Vol37-3 edition of the bulletin.
Joe L. Hodge, Jr., of Raleigh, and S. R. “Buddy” Rudd, Jr., of Oak Island, have been appointed to the Real Estate Commission by Governor Michael F. Easley, it was announced by Commission Chairman Raymond A. “Buddy” Bass, Jr.
Hodge is president of Hodge & Kittrell, Inc., a Raleigh real estate firm, and Rudd is a principal with Margaret Rudd & Associates, a real estate firm with offices in Oak Island and Southport.
The oath of office was administered to Hodge by State Supreme Court Chief Justice Sarah Parker in November and to Rudd by State Court of Appeals Chief Judge John C. Martin in January in the Commission’s Raleigh office.
Joe L. Hodge, Jr.
Hodge is a member and former President of the Raleigh Regional Association of Realtors and was named REALTOR® of the Year in 1996 by the Association.
He is a board member of Needham Broughton Capital Foundation and a former member of the Vestry of Christ Church, where he served as Junior Warden.
A Raleigh native and 1978 graduate of the University of North Carolina at Chapel Hill, Hodge and his wife, Anna Ball, have three daughters. Anna Ball, 22, is a 2006 graduate of Wake Forest University and currently works with Henredon Furniture Company in High Point. Elizabeth, 20, is a third-year student at the University of Virginia, and Josie, 16, is a junior at Broughton High School.
S. R. “Buddy” Rudd, Jr.
Active in the real estate industry for more than 20 years, he is currently a member of the Oak Island Planning Board and a director of the Southport-Oak Island Chamber of Commerce.
Rudd is a past chairman of the Brunswick County Democratic Party, past president of the Brunswick County Board of REALTORS® and REALTOR® of the year in 1998, and a past director of the North Carolina Vacation Rental Managers Association and North Carolina Real Estate Education Foundation.
In 2005, he was named to the North Carolina Association of REALTORS® Hall of fame and in 2002, received the REALTOR® Citizenship Award.
This article came from the March 2007-Vol37-3 edition of the bulletin.
Effective July 1, 2006, most, if not all, brokers-in-charge must take the new Broker-in-Charge Annual Review Course each year in order to remain a broker-in-charge.
The Broker-in-Charge Annual Review is a four-hour elective written by the Commission each year, but taught by the Commission’s approved Update course instructors. All brokers who were designated as a broker-in-charge prior to July 1, 2006 must take the 2006-2007 BIC Annual Review course prior to June 10, 2007.
Only brokers who are, in fact, brokers-in-charge should register for the BICAR course. A list of sponsors teaching the BIC Annual Review course can be found on the Commission’s website under “Continuing Education” and then click on “Schedule.” To register, the broker should contact the sponsor directly.
The 2007-2008 Broker-in-Charge Annual Review course will focus on agency and include discussion of the common law of agency, historical background, requirements of the Commission rules and their implementation in daily brokerage practice. Topics will include the use of the Working with Real Estate Agents brochure, written agency agreements, dual agency and designated agency.
A broker-in-charge who is required to, but fails to take the BIC Annual Review course by June 10 in any given year, will be removed as broker-in-charge the following July 1. While perhaps able to re-designate as a broker-in-charge, the broker will be required to take the 12-hour Broker-in-Charge Course within 120 days of being re-designated.
Generally, any broker designated as a broker-in-charge on or after April 1, 2006 must take the 12-hour Broker-in-Charge course within 120 days of becoming a broker-in-charge, unless the person has had the 12-hour class within the preceding three years. Registration for the BIC Course may be completed online at the Commission’s website, www.ncrec.state.nc.us, under “Course Registration.”
Once a person has completed the Broker-in-Charge Course, he or she may never need to repeat the 12-hour class, so long as he or she always remains a broker-in-charge somewhere. (Note: if the broker is transferring from one office to another with no lapse in status as BIC, he or she may be exempt from the 12-hour class. See Rule A.0110(d)).
Once initial BIC educational requirements are satisfied, the broker must take the Broker-in-Charge Annual Review course each year beginning the first full license year following designation.
ALL active licensees must take the annual RE Update course each year. No exception.
This article came from the March 2007-Vol37-3 edition of the bulletin.
1. Prepare the trust account check. If the check is for one property ledger, record the applicable ledger on the memo line.
2. If the check pertains to more than one property/owner ledger, prepare a Supplemental Disbursement (check) Worksheet to detail the property, purpose and amount of the check. This is the basis for an audit trail to the journal and property legders.
3. Record the check on the journal. Calculate and record the running journal balance.
4. Post the information on the supplemental disbursement (check) worksheet onto the individual property ledger sheets. Calculate and record the running balance on each property ledger sheet.
5. Reconcile all the individual property ledgers to the journal (i.e., add up the ending running balances on the ledgers and compare to the ending journal balance for agreement).
This article came from the March 2007-Vol37-3 edition of the bulletin.
The Commission regrets the passing of Commission member and former Chairman Allan R. Dameron of Brunswick County.
During his seven years of service to the Commission, Allan was elected as Chairman in 2002 and again in 2003, the first time since 1977 that a Chairman had been reelected for two consecutive terms.
Allan’s commitment to the work of the Commission and its role in the real estate industry was exceptional. The members and staff extend their sincere sympathy to his family and friends.
This article came from the March 2007-Vol37-3 edition of the bulletin.
At its January meeting, the Real Estate Commission received the final report and recommendations from its Community Association Management Advisory Committee. The advisory committee was formed in response to the Commission’s concern over the potential for financial loss to real estate consumers which could result from the mishandling of community association monies by unregulated persons.
The Commission noted that the amount of the money collected from homeowners for their association dues and fees can be substantial and that (other than real estate brokers) persons responsible for handling these monies are not licensed or regulated in any way. The Commission charged the advisory committee to recommend whether these persons should be credentialed and regulated; and if so, how.
The committee held five meetings. After finding that the demonstrated and potential harm to consumers from the improper handling of consumer association monies warrants governmental action, it recommended to the Real Estate Commission that the Commission support legislation to:
1. Require community associations (both self-managed and fee-managed) which exceed a certain size to register with and provide certain information to a state government agency;
2. Require persons (and firms) in the business of managing community associations to obtain a community association manager license from a state agency, including passing a licensing examination;
3. Require persons /entities responsible for handling and accounting for association funds to be bonded; and
4. Create a state government agency consisting primarily of community association managers to administer the licensing and registration programs.
The Commission approved in principal the recommendations submitted by the committee believing that they define a workable framework for a meaningful regulatory program. Legislation to implement the recommendations will hopefully be considered at the N.C. General Assembly’s 2007 Session.
To assure that all perspectives and points of views were adequately represented, the Commission appointed to the committee community association managers (including a resort association manager), property managers, a builder/developer, a consumer protection attorney from the North Carolina Attorney General’s Office, a representative of a firm that maintains data on North Carolina homeowner associations, and a professional staff member from the N.C. Association of REALTORS® representing the real estate brokerage industry.
The members were Dennis Abbott (Charlotte), Commission Vice Chair Skip Alston (Greensboro), Robert Hecht (Denver), Henry Jones, Jr. (Raleigh), Robert Lawing (Charlotte), Jim Laumann (Morrisville), John Lawton (Raleigh), Ted Nye (Banner Elk), John Stone (Pinehurst), Associate Attorney General Harriet Worley (Raleigh), and N.C. Association of REALTORS® Director of Regulatory Affairs Rick Zechini.
The Commission expressed its appreciation to the members of the Community Association Management Advisory Committee for their efforts in addressing this timely and important issue, and to Executive Director Fisher who facilitated the committee’s discussions; Legal Counsels Tom Miller and Miriam Baer; Directors Larry Outlaw, Emmet Wood and Fran Whitley; and Chief Deputy Legal Counsel Janet Thoren who served as Commission staff advisors to the committee.
To view the committee’s final report in its entirety, go to the Commission’s website, www.ncrec.state.nc.us.
This article came from the March 2007-Vol37-3 edition of the bulletin.
MARIA B. ALLEN (Elizabeth, New Jersey) – By Consent, the Commission suspended the broker license of Ms. Allen for a period of three years effective November 20, 2006. Six months of the suspension are to be active with the remainder stayed for a probationary period of 30 months. The Commission found that Ms. Allen was convicted of Conspiracy to Distribute and Possess With Intent to Distribute Cocaine in federal district court in the year 2000 and failed the report the conviction within 60 days of final judgment as required by Commission rule. The Commission noted that Ms. Allen reported the conviction in 2006 of her own volition.
DEMONTE C. ALLEYNE (Charlotte) – The Commission revoked the broker license of Mr. Alleyne effective September 29, 2006. The Commission found that Mr. Alleyne, acting as a dual agent for property owners and buyers in a transaction, prepared contracts for a lease/option agreement in an incomplete manner, violating the specific use instructions for the various contract forms he used, and engaging in the unauthorized practice of law; failed to enter in a written buyers agency agreement and failed to present the Working With Real Estate Agents brochure to either party; failed to create and maintain records relevant to the transaction and produce them at the request of Commission staff; and, while representing that he was depositing funds into his trust account, converted $4,700 paid by the buyers to his own use.
DARYL H. BAKER (Charlotte) – By Consent, the Commission revoked the broker license of Mr. Baker effective October 1, 2006. The Commission found that Mr. Baker paid unlicensed individuals and firms for procuring buyers for properties for sale and for procuring tenants for properties belong to his investor clients. The Commission also found that Mr. Baker collected and held earnest money deposits, rents, appraisal fee monies, and tenant security deposits belonging to his clients and customers, but did not deposit these monies in a trust account or safeguard them in accordance with Commission rules.
SHARON O. BARNHARDT (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Barnhard for a period of six months effective July 1, 2006. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Barnhardt listed and advertised a property as having 2,065 heated square feet when, in fact, the property had 1,766 heated square feet and 245 unheated square feet.
LOIS W. BLACK (Wadesboro) – By Consent, the Commission suspended the broker license of Ms. Black for a period of six months effective December 1, 2006. One month of the suspension was active with the remainder stayed for a probationary period of six months. The Commission found that Ms. Black served as listing agent for several properties where the purchase prices were inflated from the listing price after contract, while the seller received only the original list price, and failed to adequately review closing statements and contracts relating to the properties to the detriment of both sellers and buyers.
MICHAEL J. BONZAK (Hampstead) – By Consent, the Commission suspended the broker license of Mr. Bonzak for a period of 60 days effective March 1, 2007. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Bonzak, as broker-in-charge of a real estate brokerage firm, made no effort to oversee trust account procedures: transactions were not recorded with required information, journals did not include running balances and accounts were interest-bearing without proper authority.
LEX I. CARROLL (Kill Devil Hills) – By Consent, the Commission suspended the broker license of Mr. Carroll for a period of two years effective December 1, 2006. One year of the suspension is to be active with the remainder stayed. The Commission found that Mr. Carroll pled guilty on or about June 25, 2002 to two counts of violating the North Carolina Controlled Substances Act.
ARTHUR R. CARTER (Asheville) – By Consent, the Commission revoked the broker license of Mr. Carter effective December 31, 2006. The Commission found that Mr. Carter, as principal/qualifying broker and broker-in-charge of a real estate brokerage firm, failed to produce coherent records for the firm’s two trust accounts and converted trust account funds to pay firm operating costs. The Commission also found that Mr. Carter did not obtain written management contracts for rental properties managed on others’ behalf. Mr. Carter neither admitted nor denied the Commission’s findings.
RACHAEL DOMINESSY (Swansboro) – By Consent, the Commission revoked the broker license of Ms. Dominessy effective October 1, 2006. The Commission found that Ms. Dominessy, broker-in-charge of a real estate brokerage firm, transferred client and tenant monies from the firm’s trust accounts into the firm’s operating accounts without authority and that there was a shortfall in the trust accounts. Ms. Dominessy neither admitted nor denied the Commission’s findings and conclusions but nevertheless agreed to the revocation of her real estate broker license based upon them.
JEFFREY L. ECLEBERRY (Charlotte) – The Commission accepted the voluntary surrender of the broker license of Mr. Ecleberry for a period of three years effective January 11, 2007. The Commission dismissed without prejudice allegations that Mr. Ecleberry had violated the Real Estate Law and Commission rules. Mr. Ecleberry neither admitted nor denied misconduct.
EXECUTIVE REALTY, INC. (Fayetteville) – By Consent, the Commission revoked the firm license of Executive Realty effective January 1, 2007. The Commission found that Executive Realty, as broker and rental agent for the owners of rental real estate, failed to keep complete and accurate records of the funds of others in its possession, did not create a clear audit trail or identify with certainty the ownership of monies, and failed to account for monies to landlord clients.
1ST CHOICE PROPERTIES OF THE TRIAD, INC. (Greensboro) – By Consent, the Commission revoked the firm license of 1st Choice Properties of the Triad effective November 20, 2006. The Commission found that 1st Choice Properties of the Triad failed to produce full and accurate trust account records for Commission review, converted monies belong to real estate clients to its own use and failed to maintain client monies in a trust account.
DONELL FULLER (Fayetteville) – By Consent, the Commission revoked the broker license of Mr. Fuller effective January 1, 2007. The Commission found that Mr. Fuller, as a broker-in-charge and rental agent for the owners of rental real estate, failed to keep complete and accurate records of the funds of others in his possession, did not create a clear audit trail or identify with certainty the ownership of monies, and failed to account for monies to landlord clients.
GMD PROPERTIES, INC. (Kill Devil Hills) – The Commission accepted the voluntary surrender of the firm license of GMD Properties for a period of three years effective February 1, 2007. The Commission dismissed without prejudice allegations that GMD Properties violated provisions of the Real Estate License Law and Commission rules. GMD Properties neither admitted nor denied misconduct.
MICHAEL W. HEAD (Wilmington) – The Commission accepted the voluntary surrender of the broker license of Mr. Head for a period of one year effective November 27, 2006. The Commission dismissed without prejudice allegations that Mr. Head had violated provisions of the Real Estate License Law and Commission rules. Mr. Head neither admitted nor denied misconduct.
ALAN T. HILL (East Bend) – By Consent, the Commission suspended the broker license of Mr. Hill for a period of three years effective December 14, 2006. Two years of the suspension are to be active with the remainder stayed for a probationary period of one year. The Commission found that Mr. Hill disclosed that he had been convicted of certain criminal offenses on his 1997 license application, but failed to disclose misdemeanor convictions related to driving. The Commission also found that Mr. Hill failed to report in a timely manner subsequent convictions for Felony Possession of Cocaine (2002), and Misdemeanor Possession of Drug Paraphernalia, Resisting a Public Officer, Felony Possession of Cocaine and Misdemeanor Possession of a Schedule IV Controlled Substance, all in 2003.
WILLIAM ROBERT HUTCHINS (Raleigh) – By Consent, the Commission revoked the broker license of Mr. Hutchins effective January 1, 2007. The Commission found that on November 15, 2006, Mr. Hutchins reported to the Real Estate Commission that on August 30, 2006, he was convicted in district court of the criminal offense of prostitution. The Commission also found that Mr. Hutchins declined to provide the Commission’s representatives with a response to a Letter of Inquiry about the matter.
CATHY H. JACKSON (Wadesboro) – By Consent, the Commission accepted the voluntary surrender of the broker license of Ms. Jackson for a period of two years effective December 1, 2006. The Commission dismissed without prejudice allegations that Ms. Jackson had violated provisions of the Real Estate License Law and Commission rules. Ms. Jackson neither admitted nor denied misconduct.
EVAN N. KELLEY, JR. (Sapphire) – The Commission accepted the voluntary surrender of the broker license of Mr. Kelley for a period of two years effective the November 21, 2006. The Commission dismissed without prejudice allegations that Mr. Kelley had violated provisions of the Real Estate License Law and Commission rules. Mr. Kelley neither admitted nor denied misconduct.
TERRENCE LLEWELLYN (Charlotte) – By Consent, the Commission revoked the broker license of Mr. Llewellyn effective January 15, 2007. The Commission found that Mr. Llewellyn, acting on his own account as buyer and borrower, submitted erroneous information about his income in applying for mortgage loans in two real estate transactions. The Commission noted that Mr. Llewellyn satisfied the lender concerning the matter after the lender discovered the erroneous information.
L’ORANGE I, LLC (Charlotte) – By Consent, the Commission permanently revoked the firm license of L’Orange effective January 10, 2007. The Commission found that L’Orange, a real estate brokerage firm, failed to produce transaction and trust account records when requested to do so by the Commission.
ADE A. MACGREGOR (Chapel Hill) – By Consent, the Commission suspended the broker license of Mr. MacGregor for a period of two years effective April 1, 2007. The Commission found that Mr. MacGregor, as broker-in-charge and president of a real estate brokerage firm, was entrusted with earnest money and other funds belonging to clients and customers but failed to deposit and maintain the funds in a trust account, failed to create and keep proper records of the trust account, and failed to make the records available for inspection by the Commission.
MACGREGOR AND COMPANY REALTY, INC. (Chapel Hill) – By Consent, the Commission revoked the firm license of MacGregor and Company Realty effective January 15, 2007. The Commission found that MacGregor and Company Realty was entrusted with earnest money and other funds belonging to clients and customers but failed to deposit and maintain the funds in a trust account, failed to create and keep proper records of the trust account, and failed to make its records available for inspection by the Commission.
ANN H. MCCLURE (Waynesville) – By Consent, the Commission suspended the broker license of Ms. McClure effective January 30, 2007. One month was active with the remainder stayed for a probationary period of one year. The Commission found that Ms. McClure, while acting as a broker in a transaction involving the listing and sale of her personal residence, failed to disclose to the purchasers the existence of an addition to the residence, existing structural and moisture damage to the residence, and the presence of associated mold resulting from the inadequate design and construction of the addition. The Commission noted that the purchasers were paid $120,827.16 in compensation relating to the condition of the residence and associated fees, costs and expenses. Ms. McClure neither admitted nor denied the Commission’s findings and conclusions.
LOLA H. MONROE (Greensboro) – By Consent, the Commission revoked the broker license of Ms. Monroe effective February 8, 2007. The Commission found that Ms. Monroe, a resident of Georgia and qualifying broker and broker-in-charge of a North Carolina real estate firm, permitted a previously revoked licensee to run the business. The Commission also found deficiencies in the firm’s trust account records including a lack of ledgers, running balances, accurate deposit records and monthly reconciliations, and that the firm had a shortage of at least $8,000.
P & M REALTY & CONSULTING COMPANY, LLC (Greensboro) – By Consent, the Commission revoked the firm license of P & M Realty and Consulting effective February 8, 2007. The Commission found that P & M Realty and Consulting had deficiencies in the firm’s trust account records including a lack of ledgers, running balances, accurate deposit records and monthly reconciliations. and that its accounts had a shortage of at least $8,000.
PATRICIA L. PARR (Greensboro) – By Consent, the Commission revoked the broker license of Ms. Parr effective November 20, 2006. The Commission found that Ms. Parr failed to produce full and accurate trust account records for Commission review, converted monies belonging to real estate clients to her own use and failed to maintain client monies in a trust account.
HOYLE PENEGAR (Monroe) – By Consent, the Commission suspended the broker of license of Mr. Penegar for a period of 90 days effective December 1, 2006. The Commission found that Mr. Penegar, during 2004, while a state-certified appraiser, valued a property and improvements at $160,000 without documenting in his appraisal report the basis for his opinion as required by the Uniform Standards of Professional Appraisal Practice and the rules promulgated by the North Carolina Appraisal Board. The Commission also found that on March 23, 2006, the Appraisal Board suspended the appraisal certificate of Mr. Penegar pending completion of certain professional appraisal education and that Mr. Penegar did not complete the education required and discontinued his appraisal practice.
DEAN D. PISTOR (Asheville) – By Consent, the Commission reprimanded Mr. Pistor effective January 1, 2007. The Commission found that Mr. Pistor, in his salesperson application, failed to disclose a 1989 conviction for impaired driving and in his broker application, a 1992 conviction for assault on a female, as required by Commission rule.
JOHANNA W. PROCK (Asheville) – By Consent, the Commission reprimanded Ms. Prock effective November 1, 2006. The Commission found that Ms. Prock failed to report 1995 convictions on her 2002 salesperson license application for misdemeanor Assault on a Government Official and Injury to Person Property and failed to disclose a 1996 conviction for Giving Fictitious Information to a Police Officer. The Commission noted that Ms. Prock subsequently reported the convictions of her own volition and cooperated with the Commission’s inquiry.
REAL ESTATE GROUP OF ASHEVILLE, INC. (Asheville) – By Consent, the Commission suspended the firm license of Real Estate Group of Asheville for a period of two years effective December 31, 2006. The Commission then stayed the suspension for a probationary period of two years on certain conditions. The Commission found that the firm’s qualifying broker/broker-in-charge, failed to produce coherent records for the firm’s two trust accounts and converted trust money to pay firm operating costs. The Commission also found that neither the qualifying broker nor the firm maintained written management contracts for certain rental properties managed on others’ behalf. Real Estate Group of Asheville neither admitted nor denied the Commission’s findings.
RESIDENTIAL ASSET MANAGEMENT I, LLC (Charlotte) – By Consent, the Commission permanently revoked the firm license of Residential Asset Management effective January 10, 2007. The Commission found that a salesperson associated with Residential Asset Management paid unlicensed individuals for procuring buyers for property and failed to deposit client funds into the firm’s escrow account and instead deposited them into his personal account.
LISA A. SALOMON (Mooresville) – By Consent, the Commission suspended the broker license of Ms. Salomon for a period of two years effective December 5, 2005. One year of the suspension was active, with the remainder stayed for a probationary period of one year on certain conditions. The Commission found that during 1998, Ms. Salomon entered into an agreement with an investor to transfer real property into a corporation in which the investor would have a 50% interest, in exchange for a capital contribution to a proposed business venture. The Commission found that the investor made the capital contribution but that Ms. Salomon did not convey the property as she had promised, and instead conveyed it to her in-laws. The Commission also found that the investor sued Ms. Salomon, and the court set aside the conveyance as fraudulent.
KRISTA PAIGE HOFSTRA SANDS (Gastonia) – By Consent, the Commission suspended the broker license of Ms. Sands for a period of two years effective November 15, 2006. Forty five days of the suspension were active with the remainder stayed under certain conditions. The Commission found that Ms. Sands used her multiple listing service key to enter a property without permission of the owner as required by the multiple listing service. The Commission also found that during the time that Ms. Sands was in the home she took items of personal property from the home.
LEE S. SMITH, JR. (Asheville) – The Commission revoked the broker license of Mr. Smith effective December 14, 2006. The Commission found that Mr. Smith made false statements and provided false information to the Commission about his criminal convictions in connection with his broker and firm license applications and failed to report to the Commission the crimes of which he had been convicted. The Commission also found that Mr. Smith failed to report to the Commission within the required time approximately three convictions occurring after August 1, 1996, the effective date following which licensees are required to report any convictions of a criminal offense within 60 days of final adjudication.
SAMUEL I. SMITH (Kill Devil Hills) – The Commission accepted the voluntary surrender of the broker license of Mr. Smith for a period of three years effective February 1, 2007. The Commission dismissed without prejudice allegations that Mr. Smith violated provisions of the Real Estate License Law and Commission rules. Mr. Smith neither admitted nor denied misconduct.
TIMOTHY M. THOMAS (Surf City) – By Consent, the Commission suspended the broker license of Mr. Thomas for a period of six months effective November 20, 2006. The Commission then stayed the suspension for a probationary period of six months. The Commission found that Mr. Thomas failed to report a 1989 DWI conviction and two 1999 simple assault convictions on his 1999 salesperson license application. The Commission noted that Mr. Thomas disclosed them on his 2005 broker license application.
ROBERT A. VOLLES (Charlotte) – By Consent, the Commission permanently revoked the broker license of Mr. Volles effective January 10, 2007. The Commission found that Mr. Volles, as broker-in-charge in 2003 of a real estate brokerage firm, failed to supervise a salesperson associated with the firm who paid unlicensed individuals for procuring buyers for property and failed to deposit client funds into the firm’s escrow account and instead deposited them into his personal account. The Commission also found that Mr. Volles, as broker-in-charge in 2001 of a home building firm, participated in a transaction in which the closing statement indicated that the firm provided the buyer with owner financing in the amount of $100,000, when, in fact, the firm did not provide any financing. The Commission further found that, approximately one year after closing, Mr. Volles certified to the Mecklenberg County Register of Deeds that the buyer had repaid the owner financing in full, a statement which was false. Finally, the Commission found that Mr. Volles was broker-in-charge of a real estate brokerage firm from November 2002 to June 30, 2006, and Mr. Volles failed to produce transaction and trust account records when requested to do so by the Commission.
VERNIECEE WHITAKER (Winston-Salem) – The Commission revoked the broker license of Ms. Whitaker effective January 11, 2007. The Commission found that Ms. Whitaker, acting as a buyer’s agent, communicated to her buyer that the buyer’s offer to purchase a newly constructed house had been accepted by the seller when it had not, and provided the buyer with the keys from the lockbox, when no such authorization had been granted. The Commission also found that Ms. Whitaker faxed a forged contract to her broker-in-charge using a copy of the seller’s signature from another contract and, when asked to provide the original documents, eventually admitted there were none. The Commission noted that Ms. Whitaker’s firm reimbursed the buyer’s earnest money and moving expenses.
This article came from the March 2007-Vol37-3 edition of the bulletin.