Disciplinary action

Penalties for violations of the Real Estate License Law and Commission Rules vary depending upon the particular facts and circumstances present in each case. Due to space limitations in the Bulletin, a complete description of such facts cannot be reported in the following Disciplinary Action summaries.

DIANE M. ANCTIL (Raleigh) - By Consent, the Commission reprimanded Ms. Anctil effective September 1, 1995. The Commission found that Ms. Anctil, a notary public, had falsely stated that a deed had been signed in her presence.

ASHTON PROPERTIES, INC. (Raleigh) - By Consent, the Commission revoked the corporate real estate broker license of Ashton Properties, Inc. effective September 1, 1995. The Commission found that Ashton Properties, Inc., acting by and through its president, had contracted to build a house, and had failed to apply the buyers' $40,000 partial payment to the contract price but instead had used a portion of the payment toward the president's own business obligations unrelated to the buyers transaction.

SELINA I. BAGGETT (SHUE) (Greenville) - By Consent, the Commission reprimanded Ms. Baggett (Shue) effective June 7, 1995. The Commission found that Ms. Baggett (Shue), a real estate salesman on inactive status between December 1993 and December 1994, had acted in a capacity for which an active license was required.

ALAN J. BLAKE (Spring Lake) - The Commission revoked Mr. Blake's broker license effective August 30, 1995. The Commission found that Mr. Blake had made numerous misrepresentations to his clients and to the State Bar concerning his handling of various legal matters for clients and his handling of the funds of others. The Commission further found that Mr. Blake had failed to account for and remit funds of others which came into his possession.

CONNALLY P. BRANCH (Greenville) - By Consent, the Commission reprimanded Mr. Branch effective June 7, 1995. The Commission found that Mr. Branch, as broker-in-charge of a real estate office between December 1993 and December 1994, had failed to submit the salesman supervision form for a salesman affiliated with the firm and who was paid during that period for acting in a capacity for which an active license was required.

DANIEL T. CANADA (Greensboro) - By Consent, the Commission reprimanded Mr. Canada effective May 15, 1995. The Commission found that Mr. Canada, as an agent for the U.S. Department of Housing and Urban Development (HUD) in the sale of a property, had received notification that the city had condemned the property and had failed to so notify the buyers until after HUD had accepted their offer. The Commission further found that HUD had refused to refund the buyers' earnest money deposit but noted that Mr. Canada had reimbursed the buyers.

NANCY D. CANADY (Garner) - By Consent, the Commission suspended Ms. Canady's broker license for three years effective May 1, 1995, based upon allegations that Ms. Canady had assisted and encouraged buyers in a real estate transaction to provide potential mortgage lenders with incomplete and inaccurate information; that in two other transactions, Ms. Canady knew or should have known that water produced by wells on the properties was contaminated, but that she had failed to fully disclose this information to the buyers; that in one of the latter transactions, Ms. Canady had failed to provide the parties with a correct closing statement; and that Ms. Canady had engaged in the brokerage business as a corporation which was not properly licensed as a real estate broker. Ms. Canady did not admit the allegations.

MICHAEL A. CAPRISTO (Wilmington) - The Commission revoked Mr. Capristo's salesman license effective August 30, 1995. The Commission found that Mr. Capristo had made representations concerning his real estate experience and college degrees in a real estate advertisement which were false and contrary to his sworn application to the Commission for licensure.

CLARK-BRANCH, INC. (Greenville) - By Consent, the Commission reprimanded Clark-Branch, Inc. effective June 7, 1995. The Commission found that Clark-Branch, Inc., between December 1993 and December 1994, had paid compensation to a real estate salesman for acting in a capacity for which an active license was required, although the salesman's license was on inactive status.

H. KENT CONKLIN (Graham) - By Consent, the Commission suspended Mr. Conklin's broker license for 90 days effective June 15, 1995. The Commission then stayed the suspension for a probationary term of 18 months. The Commission found that Mr. Conklin, as principal broker and broker-in-charge of a licensed corporate broker engaging in property management, had placed tenant funds into an interest-bearing escrow account without proper authority from the property owners who were his clients or from the tenants. The Commission further found that Mr. Conklin had arranged for repairs to the properties on behalf of his ownerclients without disclosing to them in writing that they were being charged in excess of the actual cost to perform such repairs. The Commission also found that Mr. Conklin's trust account transaction ledgers did not contain running balances or other information required by Commission rule. Mr. Conklin neither admitted nor denied any misconduct.

ALLEN K. CRAVEN (Concord) - By Consent, the Commission suspended Mr. Craven's broker license for two years effective September 15, 1995. One month of the suspension is to be active and the remaining period stayed for a probationary term of twenty-three months. The Commission found that Mr. Craven had participated in the development of a residential subdivision in which he had listed certain properties for sale and had failed to advise certain purchasers about the expansion of an existing landfill in the vicinity of the subdivision. Mr. Craven did not admit intentional wrongdoing.

YANCEY C.ELLIOTT, JR. (Washington) - By Consent, the Commission revoked Mr. Elliott's broker license effective August 15, 1995. After November 15, 1995, Mr. Elliott may apply for a salesman license and be placed on probation until January 1, 2000. The Commission found that Mr. Elliott had been convicted of the criminal offenses of three counts of misdemeanor conversion by a bailee. Mr. Elliott did not contest the Commission's findings.

GREGORY KENT GAY (Wilson) - The Commission accepted the voluntary surrender of Mr. Gay's broker license for five years effective May 1, 1995. The Commission dismissed without prejudice charges that Mr. Gay had violated the Real Estate License Law in the conduct of a real estate brokerage business.

ROBERT I. GLADDEN (Lenoir) - By Consent, the Commission suspended Mr. Gladden's broker license for 30 days effective June 15, 1995, then stayed the suspension for a probationary term of 30 days based upon allegations that Mr. Gladden had shown prospective property buyers a .958 acre property that had been reconfigured from a 1.5 acre tract and had supplied the buyers with information indicating the new boundaries of the property but still representing its size as 1.5 acres; and that he had prepared an offer to purchase which included inappropriate questions concerning the property and certain poorly drafted contract provisions. Mr. Gladden neither admitted nor denied any misconduct.

JAMES C. HERRI NG (Greenville) - The Commission revoked Mr. Herring's broker license effective May 11, 1995. The Commission found that Mr. Herring had represented to certain sellers who had owner-financed the sale of property to him that he would give them a first-recorded lien against the property and then had failed to record the deed of trust. The Commission further found that Mr. Herring had falsely represented that he had made certain payments when he had not and had failed to advise his own lender in connection with his application for a separate loan that the property was the security for his purchase from the sellers.

DOUGLAS M.HOLLOWAY (Hickory) By Consent, the Commission suspended Mr. Holloway's broker license for six months effective June 15, 1995. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Mr. Holloway, after having sold approximately 1/2 acre of an advertised 1.5-acre property, had continued to advertize the remaining .958 acre at its previous acreage of 1.5. The Commission further found that Mr. Holloway had supplied to a real estate agent working with prospective buyers a copy of a survey and an MLS listing which indicated the previous acreage.

GEORGE P JENKINS (Washington) - The Commission suspended Mr. Jenkins' broker license for six months effective July 1, 1995. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Mr. Jenkins, while licensed by the Commission as an "inactive" real estate salesman, had engaged in illegal brokerage activity and had concealed it from his employing company and attempted to collect a commission outside of closing.

BROOKS E. JOHNSON (Lillington) - The Commission accepted the voluntary surrender of Mr. Johnson's broker license for one year effective July 1, 1995. The Commission dismissed without prejudice charges that Mr. Johnson had violated provisions of the Real Estate License Law as a result nf having been convicted of certain criminal offenses. Mr. Johnson neither admitted nor denied any misconduct.

CAROLYN M. MCDOWELL (Wilkesboro) - By Consent, the Commission reprimanded Ms. McDowell effective June 15, 1995. The Commission found that Ms. McDowell had advertised the heated square footage of a residential property inaccurately when she listed it for sale in the local Multiple Listing Service. The Commission further found that Ms. McDowell had not measured the property but had based her overstated square footage figure on an earlier MLS listing of the property.

DAWD S. MENAKER (Kill Devil Hills) - By Consent, the Commission suspended Mr. Menaker's broker license for 30 days effective July 1, 1995. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Mr. Menaker had drafted a legal instrument by preparing a document that purported to bind the parties to sign a lease agreement for a commercial property and then producing a lease by adding and deleting terms from a lease prepared by an attorney for another property.

THEDA H. MOORE (Wilkesboro) - By Consent, the Commission reprimanded Ms. Moore effective June 15, 1995. The Commission found that Ms. Moore had overstated the heated square footage of a residential property when she listed it for sale in the local Multiple Listing Service.

DEBRA LYNN MULLER (Knightdale) - The Commission suspended Ms. Muller's salesman license for one year effective June 1, 1995. Sixty days of the suspension are to be active and the remaining period stayed for a probationary term of 10 months. The Commission found that Ms. Muller had made a false statement on her application for real estate licensure; namely, Ms. Muller had answered "no" to the application question regarding criminal convictions when, in fact, she had been convicted of the crime of willfully delaying or destroying the United States Mail.

RAND A.NEYLAND (Durham) - By Consent, the Commission reprimanded Mr. Neyland effective June 15, 1995. The Commission found that Mr. Neyland's trust account reconciliations reflected a variance between his actual bank balance and his reconciled bank balance ranging between $98 and $368. The Commission noted that Mr. Neyland subsequently performed additional reconciliations and a review of his trust account records and that he was then able to account for all but a $79.94 shortage and made restitution to the trust account in that amount.

JON P. O'BRIEN (Concord) - By Consent, the Commission suspended Mr. O'Brien's broker license for 90 days effective April 15, 1995. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Mr. O'Brien had falsely represented a corporation in which he was an offficer as "Contractor" when he applied for and received a building permit to construct a residence; neither Mr. O'Brien nor the corporation is a licensed general contractor.

EDWARD S. ORGAIN, JR. (Atlantic Beach) - By Consent, the Commission revoked Mr. Orgain's salesman license effective July 18, 1995. The Commission found that Mr. Orgain, while his license was expired, was the sole shareholder and chief executive officer of a licensed real estate corporation, and that in this position, he allowed the corporation to breach its fiduciary obligations as a real estate broker and to misapply funds it held in trust for others.

MARIA A. PAULOVITS (Asheville) - The Commission accepted the voluntary surrender of Ms. Paulovits' broker license for three years effective July 15, 1995. The Commission dismissed without prejudice charges that Ms. Paulovits had violated provisions of the Real Estate License Law by failing to disclose material facts as a real estate broker selling her own properties. Ms. Paulovits did not admit any misconduct.

QUALITY SECURITIES CORPORATION (Graham) - By Consent, the Commission suspended the corporate real estate broker license of Ouality Securities Corporation for 90 days effective June 15, 1995. The Commission then stayed the suspension for a probationary term of 18 months. The Commission found that Quality Securities Corporation, while engaging in property management, had placed tenant funds into an interest-bearing escrow account without proper authority from the property owners who were its clients or from the tenants. The Commission further found that Quality Securities Corporation had arranged for repairs to the properties on behalf of its owner-clients without disclosing to them in writing that they were being charged in excess of the actual cost to perform such repairs. The Commission also found that the corporation's trust account transaction ledgers did not contain running balances or other information required by Commission rule. Quality Securities Corporation neither admitted nor denied any misconduct.

THE REAL ESTATE GROUP, INC. (Concord) - By Consent, the Commission suspended the corporate real estate broker license of The Real Estate Group, Inc. for two years effective September 15, 1995. The Commission then stayed the suspension for a probationary term of two years. The Commission found that The Real Estate Group, Inc. had participated in the development of a residential subdivision in which the corporation had listed certain properties for sale and had failed to advise certain purchasers about the expansion of an existing landfill in the vicinity of the subdivision. The Real Estate Group, Inc. did not admit intentional wrongdoing.

ANTHONY G. ROBISON (Wake Forest) - The Commission revoked Mr. Robison's broker license effective May 1, 1995. The Commission found that Mr. Robison had misrepresented to a tenant in a personally-owned property the disposition of her tenant security deposit, had failed to account for, maintain in trust and remit the funds of others and had failed to produce trust account records to the Commission upon demand.

SHIRLEY W. RUDISILL (Raleigh) - By Consent, the Commission reprimanded Ms. Rudisill effective June 15, 1995. The Commission found that Ms. Rudisill had acted as the selling agent in a real estate transaction where the offer to purchase and contract contained various provisions which were not clearly drafted. The Commission further found that Ms. Rudisill had allowed the buyers to close their purchase of the property without obtaining a title search or survey and that the buyers had discovered, after closing, both a title defect and an encroachment problem affecting the property. Ms. Rudisill neither admitted nor denied any misconduct.

SUE P. SELLERS (Sunset Beach) - The Commission accepted the permanent voluntary surrender of Ms. Sellers' salesman license effective August 10, 1995. The Commission dismissed without prejudice charges that Ms. Sellers had violated provisions of the Real Estate License Law in connection with the sale of her personal home. Ms. Sellers neither admitted nor denied any misconduct.

RHETTA M. SLADE (Greensboro) - The Commission revoked Ms. Slade's broker license effective May 1, 1995. The Commission found that Ms. Slade had violated provisions of the Real Estate License Law pertaining to the handling of trust monies and trust account recordkeeping in a real estate transaction, including failure to account for and remit trust monies within a reasonable time. The Commission further found that Ms. Slade had falsely represented to a buyer that she would refund the buyer's earnest money, when, in fact, she never did so, and that she had failed to produce trust account records as requested by the Commission auditor.

JANE W. SPELL (Clinton) - By Consent, the Commission reprimanded Ms. Spell effective April 15, 1995. The Commission found that Ms. Spell, with advice and assistance of counsel, had filed a lis pendens and a lawsuit against sellers of real estate - thereby seriously encumbering the title. The Commission noted that Ms. Spell subsequently dismissed her suit and authorized the release of the escrowed proceeds to the sellers. The Commission also found that Ms. Spell had formed a corporation through which to conduct her real estate brokerage business and did conduct business through the corporation from approximately July 8, 1994, until early March 1995, without applying for a corporate broker license. The corporation subsequently obtained a license.

ROBERT L. SPROUSE, JR. (Raleigh) - By Consent, the Commission revoked Mr. Sprouse's broker license effective September 1, 1995. The Commission found that Mr. Sprouse, as president of a licensed real estate corporation had contracted to build a house and had failed to apply the buyers' $40,000 partial payment to the contract price but instead had used a portion of the payment toward his own business obligations which were unrelated to the buyers' transaction.

LADONNA F. SPURLIN (Denver) - The Commission accepted the permanent voluntary surrender of Ms. Spurlin's broker license effective August 1, 1995. The Commission dismissed without prejudice allegations that Ms. Spurlin had violated provisions of the Real Estate License Law by removing items of personal property from listed houses. Ms. Spurlin neither admitted nor denied any misconduct.

STONEGATE REALTY, INC. (Wilkesboro) - By Consent, the Commission reprimanded Stonegate Realty, Inc. effective June 15, 1995. The Commission found that Stonegate Realty, Inc., through its principal broker and broker-in-charge, had advertised the heated square footage of a residential property inaccurately when the corporation listed it for sale in the local Multiple Listing Service. The Commission further found that the principal broker/broker-in-charge had not measured the property but had based her overstated square footage figure on an earlier MLS listing of the property.

GEORGE TATE, JR. (Chapel Hill) - The Commission suspended Mr. Tate's broker license for five years effective August 1, 1995. Two years of the suspension are to be active, after which time, Mr. Tate may apply for and receive the reinstatement of his real estate broker license - on probation for three years - provided that he has met certain conditions. The Commission found that Mr. Tate had failed to deposit and maintain earnest money in a trust or escrow account and to ensure that trust monies coming into his possession were properly accounted for and remitted. The Commission also found that Mr. Tate had converted trust monies to his own use and had commingled trust monies with his own funds. The Commission further found that Mr. Tate had made false representations at the closing of a real estate transaction as to the amount of cash he brought with him, and had attempted to conceal his inability to bring all of the buyer's funds to the closing.

DAVID L. TURNER (Charlotte) - By Consent, the Commission suspended Mr. Turner's broker license for 60 days effective June 7, 1995. The Commission found that Mr. Turner, as listing agent in a real estate transaction, had failed to immediately notify the seller that an earnest money check had been returned unpaid by the bank due to insufficient funds. At the time of the transaction, Mr. Turner was on probation in connection with a prior disciplinary action.

CARL C. WATSON (Sanford) - The Commission revoked Mr. Watson's broker license effective May 12, 1995. The Commission found that Mr. Watson had failed to disclose certain material facts to parties in a real estate transaction, had used a listing contract form which failed to contain nondiscrimination language, and had supplied to the parties a purchase contract form which failed to require the entry of inforrnation as required by Commission rule. The Commission further found that Mr.Watson had commingled earnest money with his own funds, earned interest on trust monies without obtaining written authority from his principals, failed to designate his trust account checks and bank statements as "trust" or "escrow" and otherwise failed to properly handle the funds of others.

WILLIAMS & ORGAIN REAL ESTATE, INC. (Atlantic Beach) - By Consent, the Commission revoked the corporate real estate broker license of Williams & Orgain Real Estate, Inc. effective July 18, 1995. The Commission found that Williams & Orgain Real Estate, Inc. had failed to maintain rental deposits and funds of others in a trust or escrow account and had allowed a substantial amount to be converted to other uses.

JULIANNA M. WRIGHT (Raleigh) - By Consent, the Commission reprimanded Ms. Wright effective June 15, 1995. The Commission found that Ms. Wright had executed an offer to purchase and contract with regard to a lot in a subdivision in which she had a personal interest, and on the same date, also had executed a general warranty deed conveying the lot to the purchasers without advising them of a title defect about which she should have known.