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.
ALAMANCE REALTY, INC. (Burlington) - By Consent, the Commission reprimanded Alamance Realty, Inc. effective April l, 1997. The Commission found that Alamance Realty, Inc. had failed to adequately supervise an unlicensed employee who was able to embezzle trust monies received by the corporation in real estate transactions. The Commission noted that Alamance Realty, Inc. reimbursed to the trust account all monies which were missing and therefore there was no loss to the public.
TIMOTHY A. BREWINGTON (Carolina Beach) - The Commission accepted the permanent voluntary surrender of Mr. Brewington's salesman license effective March 25, 1997. The Commission dismissed without prejudice charges that Mr. Brewington had violated the Real Estate License Law and the rules of the Commission as a result of his conduct as a real estate agent acting for others in real estate transactions. Mr. Brewington neither admitted nor denied any misconduct.
KATHLEEN A. BRUCE (Southern Pines) - By Consent, the Commission reprimanded Ms. Bruce effective April l, 1997. The Commission found that Ms. Bruce had arranged to receive a fee for assisting in a transaction for which a real estate license was required although she was not licensed at the time. The Commission noted that Ms. Bruce subsequently obtained a real estate salesman license, and that she received payment for assisting in the transaction after licensure.
BUYER'S EXCLUSIVE REALTY, INC. (Chapel Hill) - By Consent, the Commission reprimanded Buyer's Exclusive Realty, Inc. effective April 1, 1997. The Commission found that in a real estate transaction, Buyer's Exclusive Realty, Inc. had used a form Exclusive Buyer Brokerage Agreement with a non-discrimination provision which lacked handicap and familial status as protected categories. The Commission further found that Buyer's Exclusive Realty, Inc. had continued to use the noncomplying form for approximately one year. The Commission noted that Buyer's Exclusive Realty, Inc. has since brought its form agreement into compliance with the rule.
LANNIE L. CAMPBELL (Newport) - By Consent, the Commission revoked Mr. Campbell's broker license effective February 26, 1997. The Commission found that Mr. Campbell had participated in a program to sell residential building lots utilizing inflated values for building lots and for time shares traded for those building lots in order to qualify purchasers for loans. Mr. Campbell neither admitted nor denied any misconduct.
GEORGE C. CRICKMORE (Cary) - By Consent, the Commission suspended Mr. Crickmore's salesman license for three years effective June 1, 1997. Eighteen months of the suspension are to be active and the remaining period stayed for a probationary term of eighteen months. The Commission found that between 1990 and 1993, while he was licensed as a salesman and on inactive status, Mr. Crickmore had conducted a brokerage operation in his own name. The Commission further found that Mr. Crickmore had undertaken to build homes for others at a time when he did not have a valid general contractor license.
WILLIAM E. CURRAN (West End) - By Consent, the Commission revoked Mr. Curran's broker license effective March 1, 1997. On March 31, 1997, the real estate salesman license previously issued to Mr. Curran was reinstated on inactive status. The Commission found that Mr. Curran, while acting as broker-in-charge of a firm office, had failed to adequately supervise salesmen under his supervision.
NORMA J. DEMOTT (Burlington) - By Consent, the Commission suspended Ms. DeMott's broker license for six months effective April 1, 1997. The Commission then stayed the suspension for a probationary term of six months. The Commission found that Ms. DeMott, while broker-in-charge of a real estate firm, had failed to perform the monthly trust account reconciliations required by Commission rule. The Commission further found that as a result, an unlicensed employee was able to embezzle trust monies held by the firm. The Commission noted that all monies have been replaced.
JEFFERY L. EDDINGER (Thomasville) - By Consent, the Commission suspended Mr. Eddinger's broker license for one year effective April 15, 1997. Forty-five days of the suspension are to be active and the remaining period stayed for a probationary term of 10 months and 15 days. The Commission found that at the closing on a residential building lot which he had listed and sold, Mr. Eddinger had advised the buyers that he had obtained a septic permit but had left it at his office; in fact, the soil evaluation was performed on the day of closing and the application for a septic permit was denied. Mr. Eddinger neither admitted nor denied any misconduct.
FRANK T. FOUSHEE, JR. (Pittsboro) - By Consent, the Commission revoked Mr. Foushee's broker license effective November 20, 1996. On or after November l 9, 1997, Mr. Foushee shall be issued a real estate salesman license without examination, upon certain conditions. The Commission found that Mr. Foushee had failed to maintain adequate records of the funds he collected for the owners of a property he was managing. The Commission noted that Mr. Foushee has ensured that all funds belonging to the owners have been fully paid to them. Mr. Foushee neither admitted nor denied misconduct.
GM ACQUISITIONS, INC. (Newport) - By Consent, the Commission revoked the corporate real estate broker license of GM Acquisitions, Inc. effective February 26, 1997. The Commission found that GM Acquisitions, Inc. had participated in a program to sell residential building lots utilizing inflated values for building lots and for time shares traded for those building lots in order to qualify purchasers for loans. GM Acquisitions, Inc. neither admitted nor denied any misconduct.
CHARLES E. GRIGGS (Emerald Isle) - By Consent, the Commission suspended Mr. Griggs' broker license for 30 days effective March 1, 1997. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Mr. Griggs, as broker-in-charge of a corporate real estate broker, had failed in his responsibility to maintain proper trust account records by failing to maintain running balances on ledgers and on a general journal and failing to perform timely bank reconciliations. The Commission noted that Mr. Griggs subsequently remedied the record-keeping problems.
VERNON C. GUTHRIE, JR. (Morehead City) - By Consent, the Commission suspended Mr. Guthrie's broker license for one year effective March 1, 1997. Ninety days of the suspension are to be active and the remaining period stayed for a probationary term of nine months. The Commission found that in his purchase contract with the United States Department of Housing and Urban Development (HUD), Mr. Guthrie had falsely represented that he would occupy a townhome as his primary residence. The Commission further found that Mr. Guthrie had received monetary concessions from HUD for being an owner-occupier purchaser, but that in fact, Mr. Guthrie had never occupied the property as his primary residence and, instead, had offered the property for sale within 10 days after closing.
DAVIS W. HOLDER (Siler City) - By Consent, the Commission suspended Mr. Holder's salesman license for one year effective February 26, 1997. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Mr. Holder, while employed under a broker-in-charge, had allowed an unlicensed person to actually control his conduct as a real estate salesman.
LOOK BROKERAGE, INC. (Emerald Isle) - By Consent, the Commission suspended the corporate real estate broker license of Look Brokerage, Inc. for 30 days effective April 1, 1997. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Look Brokerage, Inc. had failed to maintain proper trust account records by failing to maintain running balances on ledgers and on a general journal and failing to perform timely bank reconciliations. The Commission noted that Look Brokerage, Inc. subsequently remedied the record-keeping problems.
EILEEN C. MALAN (Southern Pines) - By Consent, the Commission reprimanded Ms. Malan effective June 1, 1997. The Commission found that Ms. Malan, as a broker and rental agent, had failed to keep records of the funds she held for others in conformity with the Commission's rules.
CLYDE E. MANNING (Newport) - The Commission accepted the voluntary surrender of Mr. Manning's broker license for two years effective March 1, 1997. The Commission dismissed without prejudice charges that Mr. Manning had violated the Real Estate License Law and the rules of the Commission.
FRANK A. MARMAROSE (Newport) - The Commission accepted the voluntary surrender of Mr. Marmarose's broker license for five years effective March 1, 1997. The Commission dismissed without prejudice charges that Mr. Marmarose had violated the Real Estate License Law and the rules of the Commission.
MARY B. MARSHALL (Charlotte) - By Consent, the Commission suspended Ms. Marshall's broker license for two years effective April 10, 1997. The Commission then stayed the suspension for a probationary term of two years. The Commission found that Ms. Marshall, while acting as broker-in-charge of a corporate broker engaged in rental management, had failed to have tenant security deposits deposited in a designated and insured account. The Commission further found that Ms. Marshall had failed to adequately supervise the unlicensed site managers employed by the corporation.
MARIE D. MATOLA (West End) - By Consent, the Commission suspended Ms. Matola's salesman license effective February 26, 1997. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Ms. Matola, while acting under the supervision of her broker-in-charge, had incorrectly completed a purchase contract.
THOMAS M. MATOLA (West End) - By Consent, the Commission revoked Mr. Matola's broker license effective March 1, 1997. On April 30, 1997, the real estate salesman license previously issued to Mr. Matola was reinstated on inactive status. The Commission found that Mr. Matola, while acting as broker-in-charge of a firm office, had failed to adequately supervise salesmen under his supervision and had failed to ensure that all potential customers had received the disclosure form required by Commission rule.
WILLIAM H. MCDONALD (Durham) - The Commission suspended Mr. McDonald's broker license for five years effective April 1, 1997. Mr. McDonald's license shall be restored to him on or after April 1, 1998, upon certain conditions. If his license is restored under these circumstances, Mr. McDonald shall be placed on probation for a period equivalent to the unserved suspension period. The Commission found that Mr. McDonald had failed to competently and properly complete a contract form in a real estate transaction, had failed to deposit a buyer's earnest money into a trust or escrow account, and had failed to account for or promptly remit the buyer's earnest money. The Commission further found that Mr. McDonald had made misrepresentations and false promises to the buyer concerning her earnest money.
WILBUR N. MCLAMB (Little River, SC) - By Consent, the Commission reprimanded Mr. McLamb effective March 25, 1997. The Commission found that Mr. McLamb had failed to use a listing contract that complied with Commission rule when he listed real property for sale by auction in North Carolina. The Commission further found that in the sale of the real property by auction, Mr. McLamb had used a sales contract that failed to fully comply with Commission rule.
ELDON G. PENDERGRAPH (Graham) - The Commission accepted the voluntary surrender of Mr. Pendergraph's broker license for five years effective June 1, 1997. The Commission dismissed without prejudice charges that Mr. Pendergraph had violated the Real Estate License Law and the rules of the Commission.
THE PROPERTY EMPORIUM, INC. (Fayetteville) - By Consent, the Commission suspended the corporate real estate broker license of The Property Emporium, Inc. for two years effective March 1, 1997. The Commission then stayed the suspension for a probationary term of two years. The Commission found that between 1988 and 1992, The Property Emporium, Inc. had failed to create the trust account records required by Commission rule. The Commission further found that between 1988 and 1996, The Property Emporium, Inc. had failed to adequately disclose to the landlords for whom it managed property and to tenants of those landlords the "overhead" or "markup" added to repair bills for repairs done or procured by the corporation. The Commission noted that The Property Emporium, Inc. has now implemented forms and procedures to correct these problems.
ROBERT A. REYNOLDS (Fayetteville) - By Consent, the Commission suspended Mr. Reynolds' broker license for two years effective April 1, 1997. Two months of the suspension are to be active and the remaining period stayed for a probationary term of twenty-one months. The Commission found that Mr. Reynolds, while acting as broker-in-charge for a corporate broker, had failed to create the trust account records required by Commission rule. The Commission further found that under Mr. Reynolds' supervision, the corporate broker had failed to adequately disclose to the landlords for whom it managed property and to tenants of those landlords the "overhead" or "markup" added to repair bills for repairs done or procured by the corporate broker. The Commission noted that Mr. Reynolds has now implemented forms and procedures to correct these problems.
JOYCE SEWARD (Littleton) - The Commission accepted the voluntary surrender of Ms. Seward's broker license for five years effective December 1, 1996. The Commission dismissed without prejudice charges that Ms. Seward had violated the Real Estate License Law and the rules of the Commission in the conduct of a real estate brokerage business.
TONYA S. SIMPSON (Mount Airy) - By Consent, the Commission suspended Ms. Simpson's broker license for one year effective April 1, 1997. Six months of the suspension are to be active and the remaining period stayed for a probationary term of six months. The Commission found that Ms. Simpson had allowed a salesman under her supervision to have actual control over a branch office which was over 100 miles from Ms. Simpson's office. The Commission further found that while operating this branch office, the salesman had engaged in improper conduct and had failed to create and maintain the transaction records required by Commission rules.
SUMMIT MANAGEMENT COMPANY (Charlotte) - By Consent, the Commission suspended the corporate real estate broker license of Summit Management Company for two years effective April 9, 1997. The Commission then stayed the suspension for a probationary term of two years. The Commission found that Summit Management Company had failed to maintain tenant security deposits in a designated and insured bank account prior to December 12, 1996. The Commission noted that there was no loss to any tenant from this practice, and that Summit Management Company had cooperated with the Commission's investigation.
TETTERTON MANAGEMENT GROUP, INC. (Atlantic Beach) - By Consent, the Commission reprimanded Tetterton Management Group, Inc. effective April 15, 1997. The Commission found that Tetterton Management Group, Inc. had paid for small bills from its trust account for its property management clients in advance of receipt of rental income, thereby creating deficit spending. The Commission noted that no client or customer of Tetterton Management Group, Inc. was harmed by this practice.