ALICIA DAWN ALTMAN (Sunset Beach) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Altman effective July 18, 2018. The Commission dismissed without prejudice allegations that Ms. Altman violated provisions of the Real Estate License Law and Commission rules. Ms. Altman neither admitted nor denied misconduct.
ROBERT LORENZO ARRIAGA (Cary) – By Consent, the Commission suspended the broker license of Mr. Arriaga for a period of 36 months effective December 1, 2017. Six months of the suspension were active with the remainder stayed for a probationary period from June 1, 2018 to December 1, 2020. The Commission also prohibited Mr. Arriaga from acting as a broker-in-charge, engaging in property management, and accepting or holding trust monies belonging to others for a period of five years. The Commission found that Mr. Arriaga, the qualifying broker and broker-in-charge of a property management firm, received compensation for a maintenance referral without disclosuring to his principal, improperly applied the tenant security deposit to various expenses, failed to provide the tenant with an accounting, and failed to provide documents requested by the Commission. A Commission review of his tenant security deposit account found that cancelled checks and deposit tickets lacked the required identifying information and were not properly retained funds, were used for Mr. Arriaga’s personal benefit, a journal and separate ledger sheets were not maintained, an audit trail was lacking, and a shortage was present. A review of his rental deposits account found that it contained an overage and that some owners were being overpaid, causing deficit spending.
WAYNE T. BARBOUR (Dunn) – By Consent, the Commission suspended the broker license of Mr. Barbour for a period of three months effective November 1, 2018. The Commission then stayed the suspension on certain conditions. The Commission found that Mr. Barbour as Qualifying Broker and Broker-in-Charge of a licensed real estate firm in and around October 2016, acted as buyer agent in a transaction with a provisional broker serving as the exclusive listing agent. Mr. Barbour submitted an offer to purchase on behalf of the buyer without first entering into a written agency agreement or presenting a Working With Real Estate Agents brochure. Neither Mr. Barbour nor his firm had permission from the buyer to act as dual agent. The subject property’s heated square footage was also negligently misrepresentated in the MLS.
WILLIAM F. BELLAMY (North Myrtle Beach, South Carolina) – By Consent, the Commission suspended the broker license of Mr. Bellamy for a period of six months effective November 1, 2018. The Commission then stayed the suspension for a probationary period through May 1, 2019. The Commission found that Mr. Bellamy entered into a listing agreement for a property and failed to obtain a buyer agency agreement, but purported to act as dual agent for the transaction without authorization from the seller or buyer to perform dual agency.
VALERIA MARIA CARRIZO WYDA (Asheville) – By Consent, the Commission reprimanded Ms. Carrizo Wyda effective September 25, 2018. The Commission found that Ms. Carrizo Wyda was the listing agent for a property and received reports noting limited accessibility of the crawl space and issues with the property’s foundation. Although Ms. Carrizo Wyda disclosed this information to some subsequent interested buyers, this information was not disclosed to the buyer who went under contract. This buyer later terminated the contract after discovering these issues.
SABRINA HORTENSE CHARLESTON-MILES (Raleigh) – Following a hearing, the Commission permanently revoked the license of Ms. Charleston-Miles, effective July 31, 2018. The Commission found that Ms. Charleston-Miles acted as a dual agent in transactions when she was not authorized to do so, advertised real property for sale without having an executed listing agreement, failed to provide and review a copy of the publication “Working with Real Estate Agents” with prospective buyers or sellers at first substantial contact, failed to ensure that her buyer clients submitted all due diligence fees and earnest money deposits in accordance with the purchase contract, failed to notify Commission staff of her updated contact information, failed to timely communicate with other agents involved in transactions, required “cash only” offers on a property she listed for sale without her seller client’s consent, failed to properly and timely deliver a copy of an executed listing agreement pursuant to a court order, failed to communicate with Commission staff during the investigation, and misrepresented to the Commission that she was represented by an attorney whom she, in fact, had not retained.
COMPASS REAL ESTATE GROUP LLC (Huntersville) – By Consent, the Commission permanently revoked the firm license of Compass Real Estate Group effective September 5, 2018. The Commission found the firm’s trust accounts were not labeled “trust” or “escrow”, entrusted funds were commingled and converted to the personal use of the broker, deficit spending, failure to perform monthly reconciliations, lack of a trial balance, lack of required documentation, and a shortage. The investigation also discovered that Compass Real Estate Group was administratively dissolved by the NC Secretary of State from January 14, 2016 through June 16, 2016, and that it failed to notify the Commission.
CROWN REALTY INC. (Fayetteville) – By Consent, the Commission permanently revoked the firm license of Crown Realty Inc., effective August 29, 2018. The Commission found that Crown Realty, a property management firm, failed to maintain trust account records in compliance with Commission rules. Crown Realty deposited rent proceeds into its operating account and issued 32 non-sufficient funds checks to owner-clients from its operating account, causing the owner-clients to incur bank service fees. An audit showed a trust account shortage of at least $14,663.
DEBORAH L. DOSS (Thomasville) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Doss effective August 15, 2018. The Commission dismissed without prejudice allegations that Ms. Doss violated provisions of the Real Estate License Law and Commission rules. Ms. Doss neither admitted nor denied misconduct.
ELLIS BARBOUR & SONS, INC. (Dunn) – By Consent, the Commission suspended the firm license of Ellis Barbour & Sons for a period of three months effective November 1, 2018. The Commission then stayed the suspension on certain conditions. The Commission found that Ellis Barbour & Sons, in and around October 2016, acted as dual agent for a transaction with a provisional broker serving as the exclusive listing agent and the BIC as the buyer agent. An offer to purchase was submitted without the firm first entering into a written agency agreement or presenting a Working With Real Estate Agents brochure. Ellis Barbour & Sons did not have permission from the buyer to act as dual agent. The heated square footage was also negligently misrepresented in the MLS.
PATRICIA GONZALEZ (Fayetteville)- Following a hearing, the Commission permanently revoked the broker license of Patricia Gonzalez effective August 7, 2018. The Commission found that Ms. Gonzalez practiced real estate after her broker license was suspended by the Commission in a prior case, that she failed to remit rental proceeds and a tenant security deposit to her client, and that she converted trust money to personal use.
ROBERT SANFORD GOSNELL JR. (Hendersonville) – By Consent, the Commission suspended the broker license of Mr. Gosnell for a period of 16 months effective May 9, 2018. The Commission then stayed the suspension for a probationary period from May 10, 2018 through September 10, 2019. The Commission found that Mr. Gosnell timely reported his August 31, 2017 conviction of Aggravated Level I DWI, served 120 days in jail, received 24 months of supervised probation and is currently in full compliance with all court ordered restrictions.
DAMIAN DAVID HALL (Tryon) – By Consent, the Commission suspended the broker license of Mr. Hall for a period of 18 months effective July 19, 2018. The Commission then stayed the suspension for a probationary period from July 19, 2018 through January 18, 2020. The Commission found that Mr. Hall failed to provide property management records to the Commission’s investigator. An audit of the firm’s records found that deposit slips were not designated as “trust” or “escrow”, agency agreements did not identify the broker’s license number, and security deposits were not deposited within three days of receipt. The firm continued to operate from July 2016 through June 2017 despite being issued a revenue suspension by the North Carolina Secretary of State. Mr. Hall is restricted from further property management.
HD REALTY LLC (Mount Holly) – The Commission accepted the permanent voluntary surrender of the firm license of HD Realty effective July 18, 2018. The Commission dismissed without prejudice allegations that HD Realty violated provisions of the Real Estate License Law and Commission rules. HD Realty neither admitted nor denied misconduct.
INTRACOASTAL REALTY CORPORATION (Wrightsville Beach) – By Consent, the Commission reprimanded Intracoastal Realty effective July 18, 2018. The Commission found that Intracoastal was notified that a waterproofing project was approved at an oceanfront condominium complex where the firm managed rental properties. A tenant reserved one of the condominiums for a month but the firm failed to notify the tenant that the project could affect her ability to use the condo’s balcony. The firm refunded a significant portion of the tenant’s rental amount.
HOLLY MARIE LAM (Mount Holly) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Lam effective July 18, 2018. The Commission dismissed without prejudice allegations that Ms. Lam violated provisions of the Real Estate License Law and Commission rules. Ms. Lam neither admitted nor denied misconduct.
LANEY REAL ESTATE (Wilmington) – By Consent, the Commission suspended the firm license of Laney Real Estate until September 1, 2018 on certain conditions including requiring the deposit of $77,432.19 into its tenant security deposit trust account and providing sufficient evidence to the Commission to demonstrate that the trust account was fully funded and balanced. The Commission found that in June 2018, a total of $77,432.19 was transferred from Laney Real Estate’s tenant security deposit trust account to pay a non-client legal order.
DAVID MAYO (Fayetteville) – By Consent, the Commission permanently revoked the broker license of Mr. Mayo effective August 29, 2018. The Commission found that Mr. Mayo, as broker-in-charge, failed to maintain trust account records in compliance with Commission rules. Instead of depositing rent proceeds into the trust account, Mr. Mayo deposited the rent proceeds into his operating account. Mr. Mayo issued 32 non-sufficient funds checks to owner-clients from his operating account, causing the owner-clients to incur bank service fees. An audit showed a trust account shortage of at least $14,663.
CAREY MARIE MCMULLEN (Wrightsville Beach) – By Consent, the Commission reprimanded Ms. McMullen effective July 18, 2018. The Commission found that Ms. McMullen, as broker-in-charge, of Intracoastal Realty Corporation, was notified that a waterproofing project was approved at an oceanfront condominium complex where the firm managed rental properties. A tenant reserved one of the condominiums for the month but the firm failed to notify the tenant that the project could affect her ability to use the condo’s balcony. The firm refunded a significant portion of the tenant’s rental amount.
HOWARD JOSE MORGAN (Greensboro) – By Consent, the Commission suspended the broker license of Mr. Morgan for a period of 18 months effective December 1, 2017. Four months of the suspension were active with the remainder stayed for a probationary period from April 1, 2018 to June 1, 2019. The Commission found that Mr. Morgan failed to maintain a journal and ledger, failed to perform monthly reconciliations, and used of unapproved financial software programs, which caused a lack of an audit trail and overages in the tenant security deposit account.
ROBERT EDWARD ROBBINS (Laurinburg) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Robbins effective May 9, 2018. The Commission dismissed, without prejudice, allegations that Mr. Robbins violated provisions of the Real Estate License Law and Commission rules. Mr. Robbins neither admitted nor denied misconduct.
WILLIAM FREDERICK SCHNEIDER (Charlotte) – By Consent, the Commission reprimanded Mr. Schneider effective June 15, 2018. The Commission found that Mr. Schneider, a broker-in-charge, entered into a residential lease with a tenant. Due to the lease terms and Mr. Schneider’s acceptance of a full month’s rent payment on the 15th, the tenant believed payments were due by the 15th of each month. Mr. Schneider mistakenly notified the tenant that she was in arrears with rent payments. Mr. Schneider caused further confusion at lease termination by referencing different lease termination dates, and charged rent against the tenant’s tenant security deposit for a period where the tenant should not have been responsible for rent.
JEAN I. SKELCY (Tryon) – By Consent, the Commission suspended the broker license of Ms. Skelcy for a period of 12 months effective June 1, 2018 and restricted her from further engagement in property management. The Commission then stayed the suspension for a probationary period from June 1, 2018 to May 31, 2019. The Commission found that Ms. Skelcy, a broker-in-charge, failed to provide all requested property management documents to the Commission and failed to designate “trust” or “escrow” on deposit slips, failed to identify the broker’s license number on agency agreements, and failed to deposit security deposits within three days of receipt. The firm also continued to operate from July 2016 through June 2017, despite being issued a revenue suspension by the NC Secretary of State.
TRINA C. STRICKLAND (Tabor City) – By Consent, the Commission suspended the broker license of Ms. Strickland for a period of six months effective November 1, 2018. The Commission then stayed the suspension effective November 1, 2018. The Commission found that Ms. Strickland acted as a dual agent in a sales transaction and attempted to use a standard form “Offer to Purchase and Contract”, “Buyer Possession Before Closing Agreement”, and “Additional Provisions Addendum” to broker a contract for deed transaction. Ms. Strickland managed the subject property without first executing a property management agreement and without having a signed lease agreement. Ms. Strickland, after collecting rent, did not deposit rental proceeds in a trust account before remitting the rental proceeds to the owner.
WFS PROPERTIES LLC (Charlotte) – By Consent, the Commission reprimanded WFS Properties effective June 15, 2018. The Commission found that in July 2015, WFS Properties entered into a residential lease with a tenant, and due to the lease terms and WFS Properties’ acceptance of a full month’s rent payment on the 15th, the tenant believed payments were due by the 15th of each month. WFS Properties notified the tenant that she had to pay on the 1st of each month and mistakenly notified her that she was in arrears. WFS Properties caused further confusion at lease termination by referencing different lease termination dates and charged rent against the tenant’s tenant security deposit for a period where the tenant should not have been responsible for rent.
BRYAN GREGORY YURKO (Raleigh) – By Consent, the Commission reprimanded Mr. Yurko effective November 1, 2018. The Commission found that in 2013, Mr. Yurko, acting as listing agent for a property serviced by a septic tank, advertised the home as having four bedrooms based on the seller’s representation, and failed to verify the septic permit. When listing the property in 2017, the buyer discovered that the home was permitted for only three bedrooms.
This article came from the October 2018-Vol49-2 edition of the bulletin.