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.

J V BASICS, INC. (Fayetteville) By Consent, the Commission reprimanded J V Basics, Inc. effective February 12, 1996. The Commission found that J V Basics, Inc. had failed to properly designate all of its trust accounts, had failed to insure that all trust monies were deposited into designated trust accounts, and had allowed an unlicensed officer to perform acts which required a real estate license. The Commission noted that J V Basics, Inc. had not misappropriated or misspent any trust monies and had cooperated with the Commission's investigation.

JAMES N. BOSTIC, JR. (Jacksonville) - By Consent, the Commission revoked Mr. Bostic's broker license effective March 1, 1996. On or after June 1, 1996, Mr. Bostic may apply for and shall be issued a real estate salesman license without examination, upon certain conditions. The Commission found that Mr. Bostic - as closing agent in a real estate transaction - had failed to deposit into his escrow account all funds he had received from the buyer to close the transaction, had failed to prepare and deliver to the parties in the transaction an accurate closing statement, and had failed to fulfill his promise to purchase a home warranty for the buyer even though he had received funds for this purpose from the buyer. The Commission further found that Mr. Bostic had failed to account for or remit all funds he had received on behalf of certain property management clients and that as of April 1995, his property management escrow account was short in excess of $13,000. Mr. Bostic could not produce complete records of the use of his trust account or of his handling of the funds of his clients and customers.

WARREN G. BOYD, JR. (New Bern) - By Consent, the Commission revoked Mr. Boyd's salesman license effective December 8, 1995. The Commission found that Mr. Boyd had operated an unlicensed real estate corporation and had failed to properly deposit, maintain on deposit, account for or remit the funds of others received by the corporation in real estate transactions. Mr. Boyd neither admitted nor denied any misconduct.

CAROL S. BYRD (Cary) - The Commission accepted the voluntary surrender of Ms. Byrd's broker license for three years effective December 14, 1995. The Commission dismissed without prejudice charges that Ms. Byrd had violated provisions of the Real Estate License Law. Ms. Byrd neither admitted nor denied any misconduct.

JOSEPH H. CALL, IR. (Raleigh) By Consent, the Commission reprimanded Mr. Call effective April 1, 1996. The Commission then issued a corporate real estate broker license to T.M.C., Inc. The Commission found that since 1986, Mr. Call had been an officer and shareholder in and had substantially controlled the affairs of T.M.C., Inc., which had engaged in property management since its formation in 1970, but that he had failed to obtain a corporate real estate broker license from the Commission.

ANDREW P. CARTER (Sneads Ferry) - The Commission revoked Mr. Carter's salesman license effective February 16, 1996. The Commission found that Mr. Carter had been convicted of possession of cocaine with intent to distribute.

ROBIN P. CARTER (Fayetteville) - By Consent, the Commission suspended Ms. Carter's broker license for three years effective February 1, 1996. One year of the suspension is to be active and the remaining period stayed for a probationary term of two years. The Commission found that Ms. Carter, while acting as broker-in-charge for two different corporate real estate brokers, had failed to establish properly designated trust accounts and trust account records. The Commission noted that Ms. Carter, who had acted under a mistaken belief concerning her duties as broker-in-charge, had cooperated with the Commission's investigation.

BEN F. COLEMAN (Asheboro) By Consent, the Commission reprimanded Mr. Coleman effective February 26, 1996. The Commission found that Mr. Coleman, while licensed as a real estate broker and acting as a developer of a subdivision, had failed to deliver the subdivision street disclosure statement required by statute to be delivered to purchasers of real property.

BARRY E. DOTSON (Fayetteville) - The Commission accepted the voluntary surrender of Mr. Dotson's broker license for three years effective February 1, 1996. The Commission dismissed without prejudice charges that Mr. Dotson had violated the Real Estate License Law and rules of the Commission in the conduct of a licensed real estate brokerage business. Mr. Dotson disputed allegations of misconduct but did not wish to contest the allegations.

CHARLES R. DUNCAN, III (Raleigh) - By Consent, the Commission suspended Mr. Duncan's broker license for 60 days effective April 1, 1996. The Commission then stayed the suspension for a probationary term of 60 days. The Commission found that Mr. Duncan, as broker-in-charge of a licensed real estate salesman, had failed to adequately supervise a real estate transaction to assure that a second sales contract for a particular property contained a contingency concerning an existing contract or to assure that the sellers did not enter into the second contract to sell the property to other buyers while the first contract was in full force and effect. The Commission further found that Mr. Duncan had failed to assure that the buyers' $500 earnest money deposit was deposited and maintained in the firm's escrow account.

JAMES M. GERAGHTY (Kitty Hawk) - By Consent, the Commission suspended Mr. Geraghty's broker license for six months effective March 1, 1996. The Commission then stayed the suspension. The Commission found that Mr. Geraghty, in setting up a new business, had neglected to obtain the proper occupational licenses. The Commission further found that after the business was operating, Mr. Geraghty had advertised for, but did not hire, an unlicensed person for a position requiring licensure.

ROBERT LLOYD GOULD (Asheville) - By Consent, the Commission revoked Mr. Gould's salesman license effective April 1, 1996. The Commission found that Mr. Gould had made a false statement on his application for real estate licensure; namely, Mr. Gould had answered "no" to the application question, "Have you ever...had a real estate license...suspended, revoked, or surrendered...?", when, in fact, his Texas real estate broker license had been revoked.

WILLIAM E. HOBBS, JR. (Lake Waccamaw) - By Consent, the Commission suspended Mr. Hobbs' broker license for six months effective March 1, 1996. The Commission then stayed the suspension for a probationary term of six months. The Commission found that Mr. Hobbs, as an agent for the seller of a lot in a subdivision, had failed to inform the buyer of plans by Mr. Hobbs and others to form a voluntary property owners' organization which proposed to exert control over access to a neighboring lake. The Commission further found that Mr. Hobbs had not provided the buyer with a closing statement showing the disposition of his purchase money. The Commission noted that Mr. Hobbs and others did form an owners' association but that the association did not interfere with public access to the lake.

CHARLES I. HOFFMAN (Raleigh) - By Consent, the Commission suspended Mr. Hoffman's salesman license for 60 days effective April 1, 1996. The Commission then stayed the suspension for a probationary term of 60 days. The Commission found that Mr. Hoffman, as listing agent for a residential property, had failed to assure that a second sales contract for a particular property contained a contingency concerning an existing contract or to properly advise his seller-clients not to enter into the second contract to sell the property to other buyers while the first contract was in full force and effect.

DONALD R. HUTCHENS (Ramseur) - By Consent, the Commission revoked Mr. Hutchens' broker license effective December 7, 1995. The Commission found that Mr. Hutchens, while acting as a broker in two real estate transactions, had obtained money from two buyers by representing that the funds were necessary to complete their transactions. The Commission further found that Mr. Hutchens had failed to deposit and maintain those monies in a trust or escrow account, had instead converted the monies to his own use and thereafter had failed to properly remit or account for the monies. Mr. Hutchens neither admitted nor denied any misconduct.

ROBERT L. OWEN (Myrtle Beach, S.C.) - By Consent, the Commission reprimanded Mr. Owen effective February 12, 1996. The Commission found that Mr. Owen, while broker-in-charge of a rental operation, had caused two property owners to receive fewer tenants and therefore less rent after the owners gave notice to terminate their respective management agreements.

OYSTER BAY REALTY & CONSTRUCTION, INC. (Kitty Hawk) By Consent, the Commission suspended the corporate real estate broker license of Oyster Bay Realty & Construction, Inc. for six months effective March 1, 1996. The Commission then stayed the suspension. The Commission found that Oyster Bay Realty & Construction, Inc. had engaged in real estate brokerage and general contracting before obtaining the appropriate licenses. The Commission further found that Oyster Bay Realty & Construction, Inc. had advertised for, but did not hire, an unlicensed person for a position requiring licensure.

CHARLES F. PETERSON, II (Charlotte) - By Consent, the Commission reprimanded Mr. Peterson effective February 15, 1996. The Commission found that Mr. Peterson, acting through corporations he owned and/or controlled to buy properties and resell them at a profit to a particular buyer, had failed to provide the buyer with adequate documentation and explanation of the absence of an agency relationship between them.

DAVID T. POWELL (New Bern) - By Consent, the Commission revoked Mr. Powell's broker license effective December 8, 1995. The Commission found that Mr. Powell had failed to adequately supervise the salesmen for whom he was broker-in-charge and that some of the salesmen had misappropriated trust funds and engaged in unlawful conduct. Mr. Powell neither admitted nor denied any misconduct.

CLARENCE VIRGIL ROBERTS (Supply) - The Commission revoked Mr. Roberts' broker license effective March 1, 1996. The Commission found that Mr. Roberts, acting through a corporation selling its own residential building lots, had made false promises and willful misrepresentations to a buyer and had failed to account for or remit funds received from the buyer.

DAVID K. ROWAN (Blowing Rock) - By Consent, the Commission revoked Mr. Rowan's broker license effective January 19, 1996. The Commission found that Mr. Rowan, between July 1 and October 9, 1995, had engaged in real estate brokerage while his license was expired or on inactive status. Mr. Rowan has not made available his trust account records for inspection by the Commission.

SANDS PROPERTIES, INC. (Myrtle Beach, S.C.) - By Consent, the Commission suspended the corporate real estate broker license of Sands Properties, Inc. for six months effective February 12, 1996. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Sands Properties, Inc., while engaging in property management, had deposited occupancy tax receipts from short term rentals into its general operating accounts in violation of the Real Estate License Law. The Commission noted that Sands Properties, Inc. remitted the tax payments to the State as required by law, with no loss resulting from this practice.

GLEN A. SIMMONS (Charlotte) By Consent, the Commission revoked Mr. Simmons' broker license effective March 1, 1996. The Commission found that Mr. Simmons, while acting as broker-property manager for owners of rental property, had failed to account for or remit all funds he received on his clients' behalf and on numerous occasions remitted rent proceeds to his owner-clients with checks which were returned by the bank due to insufficient funds, and that he owed his clients in excess of $34,000 in

rents and deposits collected which he had not paid over.

JAMES R. STOUT (Asheboro) - By Consent, the Commission reprimanded Mr. Stout effective March 20, 1996. The Commission found that Mr. Stout, while licensed as a real estate broker and acting as a developer of a subdivision, had failed to deliver the subdivision street disclosure statement required by statute to be delivered to purchasers of real property.

U.S. PROPERTY MANAGEMENT, INC. (Fayetteville) - The Commission accepted the voluntary surrender of U.S. Property Management, Inc.'s corporate real estate broker license for five years effective February 1, 1996. The Commission dismissed without prejudice charges that U.S. Property Management, Inc. had violated the Real Estate License Law and rules of the Commission in the conduct of its brokerage business.

LEONARD R. WATTS (Midland) - By Consent, the Commission reprimanded Mr. Watts effective February 15, 1996. The Commission found that Mr. Watts and his employees, while buying and selling property for his own corporations, had failed to sufficiently document in a transaction that no agency relationship existed. Mr. Watts had assumed that the sophisticated investor with whom he was dealing had known that Mr. Watts and his employees and corporations always transacted business for their own account and not as an agent, whether buying from or selling to the investor. The Commission noted that in the transactions about which the investor had complained, Mr. Watts had not charged the investor any commissions; however, a more adequate documentation and explanation of the buyer and seller relationship could have eliminated any question of an agency relationship.

RICHARD S. WILKINSON (Raleigh) - By Consent, the Commission reprimanded Mr. Wilkinson effective March 11, 1996. The Commission found that Mr. Wilkinson, in advertisements, had overstated by approximately 12% the square footage of a residential property which he had listed for sale.

ODELL DECAROL WILLIAMSON (Ocean Isle Beach) - By Consent, the Commission suspended Mr. Williamson's broker license for two years effective March 1, 1996. The Commission then stayed the suspension for a probationary term of three years. The Commission found that Mr. Williamson, in 1988, had pled guilty to and been convicted of drug related offenses which occurred in 1984.

WRIGHT PROPERTIES, INC. (Jacksonville) - By Consent, the Commission revoked Wright Properties, Inc.'s corporate real estate broker license effective March 1, 1996. The Commission found that Wright Properties, Inc. - as closing agent in a real estate transaction - had failed to deposit into its escrow account all funds it had received from the buyer to close the transaction, had failed to prepare and deliver to the parties in the transaction an accurate closing statement, and had failed to fulfill its promise to purchase a home warranty for the buyer even though it had received funds for this purpose from the buyer. The Commission further found that Wright Properties, Inc. had failed to account for or remit all funds it had received on behalf of certain property management clients and that as of April 1995, its property management escrow account was short in excess of $13,000. Wright Properties, Inc. could not produce complete records of the use of its trust account or of its handling of the funds of its clients and customers.