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Educators Conference February 15-16, 2016

The 2016 Spring Educators Conference will be held at the Embassy Suites, Raleigh-Durham/ResearchTriangle  (exit 287 at Harrison Oaks Blvd.), February 15-16, 2016. Information about online registration is to be available on the Commission’s website.

Commission-approved real estate instructors, school directors, and continuing education sponsors are encouraged to reserve these dates and plan to attend!

This article came from the October 2015-Vol46-2 edition of the bulletin.

Commission Elects Cindy Chandler Chair and George Bell, Vice Chair

Cindy S. Chandler of Charlotte has been elected Chair and George Bell of Winston-Salem, Vice Chair, of the North Carolina Real Estate Commission for the term beginning August 1, 2015, it was announced by Miriam J. Baer, Executive Director.

Chandler, owner of The Chandler Group, a commercial real estate consulting and training firm, has been in real estate for more than 30 years in the areas of investment real estate, syndication, strategic planning, management, marketing and education.

She is a 2011 recipient of the Billie J. Mercer Excellence in Education Award of the Real Estate Commission and is the author of The Insider’s Guide to Commercial Real Estate, published by Dearborn/Kaplan Publishing.

A past regional vice president of the National Association of REALTORS®, Chandler was also Chair of the Mecklenburg County Zoning Board of Adjustment and Charlotte Chapter President of Commercial Real Estate Women (CREW).

Chandler is a past president of the North Carolina Association of REALTORS® and the North Carolina Real Estate Educators Association and a past Vice Chair of the Charlotte-Mecklenburg Planning Commission.

Bell is president of George Bell Productions, Ltd., a real estate education firm serving real estate brokers across North Carolina, and Qualifying Broker and Broker-In-Charge of the Bell First Group, a real estate brokerage firm. He is also a consultant to North Carolina real estate brokerage and law firms.

Bell entered the real estate business in 1978, following graduation from East Carolina University with a BS in Business Administration, with concentrations in real estate and banking.

Bell was the 2010 president of the Winston-Salem Regional Association of REALTORS® and its 2009 REALTOR® of the Year and was inducted into the North Carolina Association of REALTORS® Hall of Fame in 2014.

In 2012, he received the Billie J. Mercer Excellence in Education Award from the North Carolina Real Estate Commission and the Educator of the Year Award from the North Carolina Real Estate Educators Association (NCREEA). He is a past president of both the state and international Real Estate Educator Associations.

This article came from the October 2015-Vol46-2 edition of the bulletin.

Disciplinary Actions – Oct 2015-V46-2

ROBERT L. BLUM (Holly Ridge) – By Consent, the Commission suspended the broker license of Mr. Blum for a period of six months effective April 1, 2015. The Commission found that Mr. Blum signed rental agreements but did not include his broker license number or the date of acceptance; performed property management duties without first obtaining management agreements; entered into an agreement with an unlicensed entity which advertised and booked rental reservations for the firm; that advertisements posted by the entity contained no contact information for Mr. Blum or the firm; that renters booking through the entity were required to accept rental agreements that did not comply with the North Carolina Vacation Rental Act; that Mr. Blum, while still a provisional broker, relocated approximately 160 miles from his affiliate firm and conducted brokerage activities outside of the supervision of a broker-in-charge; and that while his license was designated as inactive and Mr. Blum continued to practice real estate brokerage with the inactive license.

JOHN ELLIOTT BRADFORD (Charlotte) – By Consent, the Commission reprimanded Mr. Bradford effective July 1, 2015. The Commission found that Mr. Bradford, acting as the listing agent for a property, advertised the property on the local Multiple Listing Service which listed the total square feet of heated living area (“HLA”); that the property went under contract and sold as a cash sale, and the buyer renovated it and listed it for sale three months later; that the buyer’s listing agent then measured the property and determined that the actual HLA was much less than previously listed; that Mr. Bradford admitted to using the local tax data to estimate the square footage for the property and that he did not verify that data; and that Mr. Bradford could not provide copies of square footage calculations or measurements for the Commission regarding his current listings.

LARRY B. BRUNER (Terrell) – The Commission accepted the voluntary surrender of the broker license of Mr. Bruner for a period of two years effective May 20, 2015. The Commission dismissed without prejudice allegations that Mr. Bruner violated provisions of the Real Estate License Law and Commission rules. Mr. Bruner neither admitted nor denied misconduct.

ASHLEIGH DIANE BURR (Belmont) – By Consent, the Commission suspended the broker license of Ms. Burr for a period of two years effective September 16, 2015. The Commission found that Ms. Burr was convicted of DWI level II on August 8, 2013 and received a seven-day jail sentence along with a 12-month supervised probation with conditions; that Ms. Burr failed to report this conviction within 60 days of judgment; that Ms. Burr was convicted of DWI level II on March 12, 2014 and received 30 days of in-house substance abuse treatment in lieu of a jail sentence along with an 18-month period of unsupervised probation; that Ms. Clark failed to report this conviction to the Commission within 60 days of the judgment; that Ms. Clark was convicted of DWI aggravated level I on October 21, 2014 and received a 120-days sentence along with a 36-month period of supervised probation; and that Ms. Clark failed to report this conviction to the Commission within 60 days of judgment.

LORI ANN CARDEN (Clemmons) – By Consent, the Commission reprimanded Ms. Carden effective July 1, 2015. The Commission found that Ms. Carden, acting as listing agent for a property, was aware that in 2005, the owner hired a contractor to construct a two-story garage with an upstairs, accessory apartment and that in 2010, the primary residence on the property had been destroyed in a fire; that Ms. Carden was aware that after the destruction of the primary residence, the property owner had personally converted the garage portion of the two-story garage into a heated living space; that Ms. Carden advertised the two-story garage as a one-bedroom, single family home based on the property owner’s representation that he had obtained all of the required permits to do the conversion in 2010; and that Ms. Carden failed to confirm with County officials that all required permits had been obtained or that a certificate of occupancy had been issued for the garage, when, in fact, the property owner had failed to obtain all of the required permits or a certificate of occupancy when the first floor of the garage was converted to living space in 2010.

JANE FORD CLARK (Raleigh) – The Commission accepted the voluntary surrender of the broker license of Ms. Clark for a period of three years effective December 31, 2015. The Commission dismissed without prejudice allegations that Ms. Clark violated provisions of the Real Estate License Law and Commission rules. Ms. Clark neither admitted nor denied misconduct.

KEITH L. CLARK (Dillsboro) – By Consent, the Commission suspended the broker license of Mr. Clark for a period of 12 months effective September 3, 2015. The Commission then stayed the suspension for a period of 12 months. The Commission found that Mr. Clark, acting as Broker-in-Charge and Qualifying Broker of a real estate brokerage firm, failed to maintain a journal or check stubs of its trust accounts, failed to maintain property ledgers, and failed to prepare trial balances for the accounts; that Mr. Clark admitted to discovering a $5,000 shortage in its trust account that was later replenished to make up for the shortage; and that it does not appear to the Commission that any consumers were harmed. The Commission also found that the firm was administratively dissolved from November 2012 through April 2015 and Mr. Clark did not notify the Commission about the dissolution.

COUNTRY CLASSIC REAL ESTATE, INC., (Dillsboro) – By Consent, the Commission revoked the firm license of Country Classic Real Estate effective August 12, 2015. The Commission found that Country Classic Real Estate failed to maintain a journal or check stubs of its trust accounts, failed to maintain property ledgers, and failed to prepare trial balances for the accounts; that Country Classic Real Estate had a $5,000 shortage in its trust account that was later replenished by the firm’s broker-in-charge to make up for the shortage; and that it does not appear to the Commission that any consumers were harmed. The Commission also found that Country Classic Real Estate was administratively dissolved from November 2012 through April 2015 and did not notify the Commission about the dissolution.

THOMAS WILLIAM DEVOE (Cornelius) – By Consent, the Commission reprimanded Mr. Devoe effective September 1, 2015. The Commission found that Mr. Devoe failed to respond to three Commission staff Letters of Inquiry and one letter from the Commission’s legal counsel requesting a response within 14 days of receipt.

JENNIFER GREEN ELLIOTT (Waynesville) – Following a hearing, the Commission permanently revoked the broker license of Ms. Elliott effective June 8, 2015. The Commission found that Ms. Elliott, on various occasions, broke or entered into numerous homes and removed items of value including cash, jewelry, silverware, and medication; that Ms. Elliott misrepresented to a pawnshop that she was the rightful owner of items of jewelry and was entitled to dispose of them, when in fact she was not, in order to obtain cash payments from the pawnshop; and that on December 19, 2014, Ms. Elliott pleaded guilty to 29 felonies crimes involving theft, false pretenses, and larceny.

MATTHEW C. HAGLER (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Hagler for a period of 12 months effective June 1, 2015. One month of the suspension was active with the remainder stayed for a period of probation from July 1, 2015 to June 30, 2016. The Commission found that Mr. Hagler was the agent for a seller of commercial property which went under contract while Mr. Hagler was affiliated with a licensed firm (hereinafter “Firm A”); that during the due diligence period Mr. Hagler left Firm A and joined another licensed firm (hereinafter “Firm B”); that the closing occurred while Mr. Hagler was with Firm B and that after closing, the buyer of the property claimed that a salvage list was not provided by a specified date according to the contract and would therefore not be honored; that the seller sent this list to Mr. Hagler two days prior to the contract deadline, and Mr. Hagler could not provide a copy of the email with the salvage list he claims he had sent to the buyer agent within the prescribed time period; that neither Mr. Hagler, Firm A, nor Firm B could provide a copy of the transaction file; and that Mr. Hagler provided a copy of the Working With Real Estate Agents brochure that was given to his client seller the day before closing, but could not provide an agency agreement with the seller.

MARY D. HILLS (Young Harris, Georgia) – Following a hearing, the Commission ordered the permanent revocation of the broker license of Ms. Hills effective July 28, 2015. The Commission found in an audit of North Carolina licensees who are resident in and hold real estate licenses in another state, that Ms. Hills renewed her North Carolina broker license for the 2014-2015 license year by certifying that her Georgia broker license was active as required, when it was not; that Ms. Hill responded November 24, 2014 to a Commission Letter of Inquiry that her Georgia license had been put on inactive status by mistake and that she corrected this by providing the state of Georgia with proof of her residency; that the Commission verified her records through the Georgia Real Estate Commission and found that Ms. Hills’ broker license was on inactive status from November 1, 2013 through October 31, 2014; that Ms. Hills’ broker license had also lapsed for failure to renew on November 1, 2014 and its status had not been remedied as of the date of the hearing, June 18, 2015; that Ms. Hills did not respond to Letters of Inquiry on December 31, 2014 and January 28, 2015 within 14 days of each as required; and that Ms. Hills did respond in a voicemail on February 23, 2015 that she was in receipt of the letters and would not respond to any Letter of Inquiry and stated that the Commission should take action as it deemed appropriate.

JOHN J. HOROHOE (Charlotte) – By Consent, the Commission permanently revoked the broker license of Mr. Horohoe effective August 31, 2015. The Commission found that Mr. Horohoe scheduled a showing to view a property that was listed for sale; that when the owner of the property returned home early, she found Mr. Horohoe going through some of  her personal belongings; and that the police were called and no charges were filed. The Commission notes that in addition to the improper conduct described above, Mr. Horohoe failed to maintain client records for a period of three years from the conclusion of the transactions. The Commission noted that Mr. Horohoe has since allowed his license to expire and does not plan to engage in the real estate brokerage business in the future. Mr. Horohoe neither admitted nor denied misconduct.

HPS REAL ESTATE, INC. d/b/a PENNINK & HUFF PROPERTY MANAGEMENT (Fayetteville) – By Consent, the Commission suspended the firm license of HPS Real Estate for a period of 18 months effective May 11, 2015.  The Commission then stayed the suspension for a probationary period of 18 months. The Commission found that HPS Real Estate was managing approximately 1200 rental properties, and receiving annual rents in excess of $8 million; that a Commission audit of HPS Real Estate’s trust account records and bank statements for a 12-year period revealed that several transactions were not handled in accordance with the Commission’s trust account rules, including two checks that were received by HPS Real Estate, but not deposited into a trust account in a timely fashion, failure to escheat or otherwise disburse $29,614.85 representing checks issued by HPS Real Estate but never cashed, and improper accounting for bank service charges resulting in relatively small deficits in the management company ledger; that, in addition, on two occasions, HPS Real Estate paid a “bonus” to an unlicensed employee who referred a property management client to its sales affiliate, when that referral resulted in a successful sales transaction. The Commission noted that the audit did not find any conversion of trust money to personal use and that HPS Real Estate has agreed to put procedures in place to rectify and reconcile the items issued above and prevent them from happening in the future.

BRENDA ELAINE HUNTER (Jacksonville) – By Consent, the Commission withdrew Ms. Hunter’s Prelicensing, Postlicensing, and Continuing Education Instructor Approval effective September 1, 2014, for a period of six months. The Commission found that Ms. Hunter’s passage rate in the prelicensing course for first-time examination candidates for the North Carolina Real Estate License Examination was below 70% for two or more of the previous five annual reporting periods beginning in 2008 through 2013. Upon reinstatement, Ms. Hunter’s Approval was placed on probation for 18 months on certain conditions. At its August meeting, the Commission granted Ms. Hunter additional time to meet certain requirements of the conditions placed upon her.

ANGELA B. MCKINNEY (Greensboro) – By Consent, the Commission reprimanded Ms. McKinney effective April 22, 2015. The Commission found that Ms. McKinney acted as broker-in-charge (BIC) of an unlicensed sole proprietorship which used outdated accounting software not approved by the Commission to maintain trust and rental accounts, both of which had overages; that no reconciliations had been performed, and no journals or records had been maintained; that before Ms. McKinney became BIC, the unlicensed owner of the company loaned more money to a landlord from the rental account than was actually collected, resulting in deficit spending; that Ms. McKinney and the unlicensed owner agree that Ms. McKinney only acted at the direction of the company owner and attorney in paying the landlord less than they were owed in order to recoup funds owed on the loan. The Commission noted that the issues with the trust and rental accounts pre-dated Ms. McKinney’s employment as BIC and that she has worked to remedy the violations.

ANNA H. MCMILLAN (Laurinburg) – By Consent, the Commission reprimanded Ms. McMillan effective September 1, 2015. The Commission found that Ms. McMillan, acting as qualifying broker and broker-in-charge of a real estate brokerage firm, failed to maintain the firm’s trust account in accordance with Commission rules; that Ms. McMillan failed to keep rent monies received by the firm in a separate trust account; and that, as a result, all rent payments received were commingled with the firm’s operating funds. The Commission noted that there was no evidence of a shortage of any trust monies.

RITA K. MCVICKER (Durham) – By Consent, the Commission revoked the broker license of Ms. McVicker effective August 13, 2015, with the provision that Ms. McVicker will not be eligible to apply for reinstatement of the license for a period of 10 years. The Commission found that Ms. McVicker, acting as a  property manager, failed to disburse rental proceeds and maintenance information to her landlord client despite repeated requests from the client; that Ms. McVicker failed to provide trust account records to a Commission representative after agreeing to do so; that Ms. McVicker failed to maintain trust account records and client funds in compliance with Commission rules including failing to maintain funds in a designated trust account; and that, due to Ms. Vicker’s failure to provide information and records, an accurate audit trail could not be determined, but it is estimated that approximately $26,000 of trust account monies were converted to Ms. McVicker’s personal use.

DENETRIA MONTRESA MYLES (Charlotte) – Following a hearing, the Commission permanently revoked the broker license of Ms. Myles effective August 13, 2015. The Commission found that Ms. Myles was indicted on one count each of Racketeering Conspiracy and Mortgage Fraud Scheme in United States District Court and found guilty of each count after a jury trial in October 2013 and sentenced to 51 months in Federal prison to be followed by three years of supervised probation; and that the charges and convictions were the result of Ms. Myles’ participation in a criminal enterprise in which Ms. Myles acted as a promoter and assisted the enterprise in providing false documentation to lenders in order to obtain loan proceeds for properties with inflated purchase prices.

TINA HUONG NGUYEN (Charlotte) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Nguyen effective August 31, 2015. The Commission dismissed without prejudice allegations that Ms. Nguyen violated provisions of the Real Estate License Law and Commission rules. Ms. Nguyen neither admitted nor denied misconduct.

CHESTER G. OEHME (Fayetteville) – By Consent, the Commission suspended the broker license of Mr. Oehme for a period of 18 months effective May 11, 2015.  The Commission then stayed the suspension for a probationary period of 18 months. The Commission found that Mr. Oehme, acting as broker-in-charge of a licensed real estate brokerage firm, was managing approximately 1200 rental properties, and receiving annual rents in excess of $8 million; that a Commission audit of Mr. Oehme’s trust account records and bank statements for a 12-year period revealed that several transactions were not handled in accordance with the Commission’s trust account rules, including two checks that were received by Mr. Oehme, but not deposited into a trust account in a timely fashion, failure to escheat or otherwise disburse $29,614.85 representing checks issued by Mr. Oehme but never cashed, and improper accounting for bank service charges resulting in relatively small deficits in the management company ledger; that, in addition, on two occasions, Mr. Oehme paid a “bonus” to an unlicensed employee who referred a property management client to the brokerage firm’s sales affiliate, when that referral resulted in a successful sales transaction. The Commission noted that the audit did not find any conversion of trust money to personal use and that Mr. Oehme has agreed to put procedures in place to rectify and reconcile the items issued above and prevent them from happening in the future.

ROBERT G. RABON (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Rabon for a period of 24 months effective July 1, 2015. The Commission then stayed the suspension for a probationary period ending July 1, 2019. The Commission found that Mr. Rabon, acting as qualifying broker for a vacation and long-term rental management firm, mistakenly allowed the firm’s license to expire on July 1, 2013, and that, as a result, the firm operated without a license until October 21, 2013. The Commission also found that Mr. Rabon agreed to maintain the firm’s trust accounts, but failed to supervise and maintain trust account records in accordance with Commission Rules; that, as a result, Mr. Rabon was unaware that all rental payments from an online promotional and booking company were deposited into the operating account of the firm from April 2013 to April 2014, and management fees were not timely removed from the trust account of Mr. Rabon’s firm; and that the trust accounts of Mr. Rabon’s firm showed a possible shortfall of as much as $14,828.82 between January and March 2014. The Commission noted that Mr. Rabon promptly corrected all possible account deficiencies.

ANDREW JOHN SAMAJ III (Cary) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Samaj effective June 17, 2015. The Commission dismissed without prejudice allegations that Mr. Samaj had violated provisions of the Real Estate License Law and Commission rules. Mr. Samaj neither admitted nor denied misconduct.

DAVID M. SMOOT (Raleigh) – The Commission accepted the voluntary surrender of the broker license of Mr. Smoot effective with its expiration June 30, 2015. Mr. Smoot voluntarily and permanently waived and surrendered any renewal or reinstatement right he may possess. The Commission dismissed allegations that Mr. Smoot violated provisions of the Real Estate License Law and Commission rules. Mr. Smoot neither admitted nor denied misconduct.

VIP REALTY NC, LLC (Greensboro) – By Consent, the Commission revoked the firm license of VIP Realty NC effective October 1, 2015. The Commission found that VIP Realty NC purchased property management clients from another firm in 2013 after the other firm’s license was revoked by the Commission due to the unlicensed owner having signature authority over the accounts, among other things, in violation of the firm’s probation sanction; that the other firm’s owner remains as the general manager of VIP Realty NC and has signature authority over the firm’s accounts; that VIP Realty NC as part of the General Manager’s compensation, pays the General Manager a percentage of rents received; that an audit of the firm’s two trust accounts shows deficit spending, a net shortage of over $13,000, and that neither account was designated as “trust” or “escrow”; and that VIP Realty NC’s website also represents that it has been in operation since 1986, even though it was not created until 2013.

LISA O. WARREN (Hendersonville) – The Commission accepted the voluntary surrender of the broker license of Ms. Warren for a period of two years effective August 12, 2015. The Commission dismissed without prejudice allegations that Ms. Warren violated provisions of the Real Estate License Law and Commission rules. Ms. Warren neither admitted nor denied misconduct.

FRANCIS P. WILDER III (Cashiers) – By Consent, the Commission reprimanded Mr. Wilder effective July 15, 2015. The Commission found that Mr. Wilder was the broker-in-charge of a licensed real estate brokerage firm when an owner of vacant land signed an exclusive listing agreement and the acknowledgment card of a Working With Real Estate Agents brochure in January, 2014; that Mr. Wilder never provided a fully executed copy of the listing agreement to the owner; that in May, Mr. Wilder still had not listed the lot on his website for sale, which prompted an email inquiry from the owner to which Mr. Wilder never replied; that in July, the owner sent a written notice of termination to Mr. Wilder and asked for documents to be returned; that Mr. Wilder did not respond to this or subsequent letters sent by the owner; that after a complaint was filed, Mr. Wilder sent the Commission a copy of the Working With Real Estate Agents brochure and the listing agreement in his possession and that the dates on these documents were changed from January to April; and that Mr. Wilder admitted that he “panicked” and made these changes before sending them to the Commission. The Commission noted that Mr. Wilder has returned the documents to the owner, that the real estate brokerage firm has closed, and that Mr. Wilder now works with another firm. Mr. Wilder may not act as broker-in-charge for a period of three years.

DAVID NORMAN ZAUBER, JR. (Summerfield) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Zauber effective July 15, 2015. The Commission dismissed without prejudice allegations that Mr. Zauber violated provisions of the Real Estate License Law and Commission rules. Mr. Zauber neither admitted nor denied misconduct.

This article came from the October 2015-Vol46-2 edition of the bulletin.