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.
LAREL T. ALBERT (Surf City) - By Consent, the Commission suspended Ms. Albert's broker license for one year effective June 22, 1993. The Commission then stayed its Order for a probationary term of one year upon condition that Ms. Albert successfully complete the Commission's Trust Account Short Course and Resort Property Management Trust Account Course within 180 days. The Commission found that Ms. Albert, through her property management business, had allowed new tenants to rent a condominium even though tenants who had been renting it for the past two months had requested a continuation of their lease, and Ms. Albert had sent a new agreement for them to sign. The Commission further found that Ms. Albert had failed to keep adequate trust or escrow account records including failure to properly reference all pertinent information on checks and check stubs; failure to maintain running balances on journals and ledgers; failure to reconcile internal trust account records to bank records on a monthly basis; and failure to maintain records for three years as required by Commission rule. The Commission noted that Ms. Albert subsequently distributed to the condominium owners and lessees of the past two months the rental proceeds paid by the new tenants.
ANNE R. BLAKE (Southport) - By Consent, the Commission suspended Ms. Blake's salesman license for twelve months effective May 17, 1993. Six months of the suspension are to be active and the remaining period stayed for a probationary term of one year. The Commission found that Ms. Blake, as an unlicensed contractor and a partner in a construction company that was not licensed as a general contractor, had used another firm's license to obtain a building permit for construction of a house. The Commission further found that Ms. Blake had advanced money to buyers for purposes which included paying closing costs on the house without disclosing the loan to the lending company to which the buyers had applied for an FHA loan. In addition, the Commission found that Ms. Blake had also failed to disclose to the loan company the true amount of the buyers' earnest money deposit or the fact that she had required from the buyers a second deed of trust naming herself as beneficiary to cover the funds she had advanced to them.
EDMUND F. BUMANN, JR. (Durham) - The Commission accepted the voluntary surrender of Mr. Bumann's broker license for two years effective July 1, 1993. The Commission dismissed without prejudice charges that Mr. Bumann had violated provisions of the Real Estate License Law based upon his criminal conviction. Mr. Bumann neither admitted nor denied any misconduct.
NELL J. DENBY (Moyock) - By Consent, the Commission suspended Ms. Denby's broker license for one year effective May 1, 1993. The Commission then stayed its Order for a probationary term of one year. The Commission found that Ms. Denby, while associated with a licensed corporation which was acting as a listing agent for a subdivision, had used sales contract forms which did not comply with Commission rules. Ms. Denby neither admitted nor denied any misconduct.
SHELBY J. ELLIS (Banner Elk) - By Consent, the Commission revoked Ms. Ellis' broker license effective June 22, 1993. The Commission found that Ms. Ellis, while operating a property management business which required her to collect and properly account for rents, deposits and other monies belonging to others, had failed to maintain and retain records sufficient to verify the accuracy and proper use of her trust account in accordance with Commission rules, and had allowed a shortage to occur in her trust account.
LILY S. EZZELL (Goldsboro) - By Consent, the Commission reprimanded Ms. Ezzell effective May 1, 1993. The Commission found that Ms. Ezzell, while employed as a property manager and broker - in - charge at a real estate firm, had failed to maintain proper trust or escrow account records, had failed to properly reconcile trust account records to bank records, and had allowed a shortage to occur in the firm's trust account.
FLORA REAL ESTATE COMPANY, INC. (Pleasant Garden) - The Commission suspended the corporate real estate license of Flora Real Estate Company, Inc. for three years effective July 1, 1993. One year of the suspension is to be active and the remaining period stayed. The Commission found that the corporation's president, principal broker and broker - in - charge had falsely stated to purchasers that contract or deed restrictions governing two lots for which she and the corporation had procured purchasers set minimum house - size and prohibited mobile homes/house trailers. The Commission further found that she had prepared offers to purchase and contract on forms which did not comply with Commission rules. in addition, the Commission found that the corporation had failed to make trust account records available for inspection by the Commission and had otherwise refused to cooperate with the Commission's investigation.
BRYAN R. HARTSELL (Fayetteville) By Consent, the Commission revoked Mr. Hartsell's salesman license effective June 17, 1993. The Commission found that Mr. Hartsell, while acting as a property manager, had failed to deposit and maintain rental funds and security deposits in a trust or escrow account, had failed to create and maintain records of trust monies collected or disbursed, and had failed to properly account for or refund those monies when requested to do so. The Commission found that Mr. Hartsell was not under the active and personal supervision of a real estate broker and that his real estate license had expired at the time of the transaction.
CLAYTON A. HOWARD, JR. (Moyock) - By Consent, the Commission suspended Mr. Howard's broker license for one year effective May 1, 1993. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Howard, while acting as a listing agent for a subdivision, had used sales contract forms which did not comply with Commission rules. Mr. Howard neither admitted nor denied any misconduct.
C.A. HOWARD & ASSOCIATES REALTY, INC. (Moyock) - By Consent, the Commission suspended the corporate real estate broker license of C.A. Howard & Associates Realty, Inc. for one year effective May 1, 1993. The Commission then stayed its Order for a probationary term of one year. The Commission found that while the corporation was acting as a listing agent for a subdivision, its agents had used sales contract forms which did not comply with Commission rules. C.A. Howard & Associates Realty, Inc. neither admitted nor denied any misconduct.
GREGORY R. KNOWLES (Greensboro) - The Commission revoked Mr. Knowles' broker license effective May 1, 1993. The Commission found that Mr. Knowles, as a seller, had entered into installment land contracts on two properties, and had failed to make payments on existing deeds of trust encumbering the properties, even though he had collected payments from the buyers. Mr. Knowles also had failed to make payments on existing deeds of trust on a third property, even though he was collecting rent from a tenant in the property. The Commission also found that Mr. Knowles had failed to make promised repairs and improvements to the properties. in addition, the Commission found that Mr. Knowles had returned the properties to the former owners, in lieu of foreclosure, but had continued to collect and retain rental payments on one of the properties even after relinquishing title to it, and that he had failed to account for and remit those rental proceeds to the owners.
RUTH D. MARTIN (Fayetteville) - By Consent, the Commission revoked Ms. Martin's broker license effective June 21, 1993. The Commission found that Ms. Martin had failed to deposit and maintain trust monies in a trust or escrow account, had failed to retain adequate trust account records in accordance with the License Law and to reconcile her trust account records with bank records on a monthly basis. The Commission further found that Ms. Martin had failed to make those records available for inspection by the Commission.
ANN M. PRICE (Yaupon Beach) - By Consent, the Commission suspended Ms. Price's salesman license for six months effective June 22, 1993. Three months of the suspension are to be active and the remaining period stayed for a probationary term of one year. The Commission found that Ms. Price, as a partner in a construction company in which neither the company nor the partners were licensed as general contractors, had used another individual's contractor's license to obtain a building permit for construction of a house. The Commission further found that Ms.Price, as a notary public, had acknowledged the buyers' signatures on two deeds of trust which named her construction company and her partner, respectively, as beneficiaries. Ms. Price personally prepared the second document, named herself as trustee and had it recorded.
DAVID S. SCHWARTZ (Charlotte) By Consent, the Commission suspended Mr. Schwartz's broker license for three years effective August 1, 1993. Three months of the suspension are to be active and the remaining period stayed for a probationary term of 33 months. The Commission found that Mr. Schwartz had been convicted of a criminal offense; namely, structuring a financial transaction to evade federal reporting requirements and failing to file Internal Revenue Service Form 8300.
CHARLES W. SHERRY (New Bern) By Consent, the Commission suspended Mr. Sherry's salesman license for six months effective June 22, 1993. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Sherry, who was employed at a licensed real estate corporation, had failed to disclose to buyers of a lot which he owned that heavy rains sometimes caused standing water on the lot and that fill dirt would therefore have to be brought in before a residence could be constructed there. The Commission noted that Mr. Sherry has entered into a settlement agreement with the buyers.
JANE W. SPELL (Clinton) - By Consent, the Commission reprimanded Ms. Spell effective June 22, 1993. The Commission found that Ms. Spell, as a real estate broker, had made negligent misrepresentations of material fact about the age of a roof on a residential property which she had listed for sale and the identity of the property owner. The Commission noted that the misrepresentations were unintentional and that Ms. Spell subsequently compensated the buyers for labor and materials necessary to install a new roof.
FLORA E. SPRAKER (Pleasant Garden) - The Commission suspended Ms. Spraker's broker license for three years effective July 1, 1993. One year the suspension is to be active and the remaining period stayed. The Commission found that Ms. Spraker had falsely stated to purchasers that deed or contract restrictions governing two lots for which she had procured purchasers set a minimum house - size and prohibited mobile homes/house trailers. The Commission further found that Ms. Spraker, as president and principal broker of a licensed corporation and broker - in charge of the office, had prepared offers to purchase and contract on forms which did not comply with Commission rules. In addition, the Commission found that Ms. Spraker had failed to make trust account and other records available for inspection by the Commission and had otherwise refused to cooperate with the Commission's investigation.
BEULAH N. VERNON (Madison) - By Consent, the Commission suspended Ms. Vernon's broker license for one year effective February 10, 1993. The Commission then stayed its Order for a probationary term of one year. The Commission found that Ms. Vernon had falsely advised buyers that their contract to buy a property which Ms. Vernon had listed required a firm loan commitment by the following day, when in fact, time was not of the essence in the contract. The Commission further found that Ms. Vernon had falsely advised another party that the property was available while the first party still had a valid contract to purchase it.
JOHN A. WILLIAMS (Kill Devil Hills) - The Commission revoked Mr. Williams' salesman license effective June 1, 1993. The Commission found that Mr. Williams had falsified and concealed information on his application to reinstate his expired real estate license; namely, criminal convictions and imprisonment in Virginia for parole violations and worthless check charges. The Commission further found that while engaging in time share sales at his own firm, Mr. Williams had acted outside the supervision of his broker - in charge, had failed to deposit and maintain trust monies in a trust or escrow account and had instead commingled those funds with his own funds and had converted trust monies to his own use. in addition, the Commission found that Mr. Williams had failed to account for or remit funds which he had received from time share purchasers to either his broker - in - charge or to the purchasers, and had failed to provide time - share purchasers with deeds.
MARGARET L. YOUNG (Davidson) By Consent, the Commission reprimanded Ms. Young effective July 1, 1993. The Commission found that Ms. Young had advertised inaccurate square footage of a house which she, as a real estate broker, had listed for sale.