Disciplinary Action

Penalties for violations of the Real Estate License Law and Commission Rules and Regulations 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.

BEACH HARBOUR ENTERPRISES (Carolina Beach)—By Consent, the Commission fined Beach Harbour Enterprises, developer of the time share project Beach Harbour, $6000 for employing a different marketing entity from the one listed on its application for time share project registration, and for failing to properly supervise the advertising activities of the marketing firm. The Commission found that the marketing entity had engaged in deceptive advertising in its offering of a vacation trip to Mexico for persons who attended a sales presentation at the project. Their solicitation failed to disclose that a $ 150 deposit was required and that air fare was provided for only one person although two persons were required to attend the sates presentation.

ROBERT T. BERRY, JR. (Greensboro)—The Commission suspended Mr. Berry's broker's license for 90 days effective June 1,1985, for falsely certifying an acknowledgement as a notary public and for improperly notarizing deeds to convey real estate.

WILLIAM C. BYRD (Kinston)—By Consent, the Commission suspended Mr. Byrd's broker's license for six months effective April 17,1985, but then suspended its Order and placed Mr. Byrd on probation for one year on condition that he complete a Commission-approved course in Real Estate Law and the Commission's Trust Account Short Course. The Commission found that Mr. Byrd had offered property for sale with the knowledge that his principal could not convey marketable title. The Commission also found that he had commingled client funds with his own funds and had deposited client funds in an interest-bearing account without proper authorization.

ALVIN BRYAN CARR, JR. (Fayetteville)—By Consent, the Commission reprimanded Mr. Carr and placed him on probation for two years because of his 1983 conviction of the criminal offense of conspiracy to obtain money by false pretense. Mr. Carr's offense was not directly related to the real estate business and he has voluntarily made restitution.

HOWARD L. (DANNY) CORRELL, JR. (Mocksville)—The Commission suspended Mr. Correll's broker's license for six months effective December 1, 1985, and placed him on two years probation. Mr. Correll appealed the Commission's ruling to Wake County Superior Court and the North Carolina Court of Appeals which affirmed the Commission's decision on May 21, 1985. The Commission found that Mr. Correll had purchased property previously listed with his real estate firm at a price substantially below the listed price. He then obtained a loan to finance his purchase without informing the lender of his intention to resell the property. Mr. Correll then proceeded to sell the property on an installment land contract to a person who had previously attempted to purchase the property through his firm. Mr. Correll did not make timely payments on his loan, and although he had received in excess of $18,000 from the purchaser on the installment land contract, he paid the lender less than $11,000 on his loan. The lender subsequently foreclosed on the property and the property was sold in foreclosure. The Commission found that Mr. Correll failed to disclose to the seller the resale price for the property, and failed to disclose to the buyer the price which he paid for the property and the possibility tithe buyer might have purchased the property herself for substantially less than her original offer. As a result of the two transactions, the Commission found that Mr. Correll and his firm had received a secret profit of $8000.

CHETOLA PROPERTIES (Blowing Rock)—By Consent, the Commission reprimanded Chetola Properties, developer of the time share project Chetola Lake Condominiums, for violating the provisions of Chapter 75 of the General Statutes in connection with a mass mail solicitation of prospective time share purchasers.

RONALD G. DIX (Pineville)—The Commission revoked Mr. Dix's broker's license effective June 12,1985. The Commission found that Mr. Dix's broker's license in the Commonwealth of Virginia had been suspended when the Virginia Real Estate Commission was forced to pay a $5000 claim from its Recovery Fund arising out of a transaction in which Mr. Dix had wrongfully withheld and converted client funds to his own use. In the transaction, Mr. Dix had received an escrow deposit of $5000 from a purchaser to assist the purchaser in locating a home, and although no purchase took place, he refused to return any portion of the escrow deposit to the purchaser.

PHYLLIS P. GLINDEMAN (Fayetteville)—By Consent, the Commission suspended Ms. Glindeman's broker's license for one year effective September 2,1985, for improper conduct in allowing an unlicensed person to control her acts as a real estate broker. The Commission also found that Ms. Glindeman had failed to properly supervise the acts of a real estate salesman and had procured such salesman to prepare a deed to which the salesman was not a party.

ALBERT J. MIGHT (Durham)—By Consent, the Commission reprimanded Mr. Hight for commingling trust funds with funds in which he had an ownership interest. As optionee of a certain parcel of land, Mr. Hight contracted to sell the property to a third party. In connection with this contract, Mr. Hight received earnest money which he improperly deposited into his real estate trust account in violation of the Commission's Rules and the License Law.

DAVID C. HILTON (Murphy)—By Consent, the Commission suspended Mr. Hilton's broker's license for six months effective May 22, 1985, but then suspended its Order and placed Mr. Hilton on probation for six months on condition that he complete the Commission's Trust Account Short Course. The Commission found that Mr. Hilton had failed to properly account for and maintain records concerning client funds. Upon being informed of certain underpayments to property owners, Mr. Hilton made full restitution to such

GARLAND M. JONES (Greensboro)—By Consent, the Commission suspended Mr. Jones' broker's license for 30 days effective April 17, 1985, but then suspended its Order and placed Mr. Jones on probation through December 1, 1985, on condition that he complete a Commission-approved course in Real Estate Law. The Commission found that Mr. Jones had, without authority, signed his principal's name to a contract to sell real estate and that he had permitted an unlicensed associate to engage in the business of a real estate broker.

ROBERT F. KNOWLES (Wilmington)—By Consent, the Commission revoked Mr. Knowles' broker's license effective August 1,1985,which license maybe reinstated on August 1, 1986. Mr. Knowles was granted a salesman's license in the interim. The Commission found that Mr. Knowles had failed to maintain adequate records of client funds and had used  such funds for his personal expenses. The Commission also found that he had failed to properly expend, maintain and account for the funds of a homeowners' association which he managed.

GERALD W. LITTLETON (Raleigh) —By Consent, the Commission suspended Mr. Littleton's broker's license for 30 days effective March 27, 1985, but then suspended its Order and placed Mr. Littleton on probation for one year on condition that he' complete Commission-approved courses in Real Estate Law and Real Estate Brokerage Operations. The Commission found that Mr. Littleton had failed to disclose to his principal and failed to include in an offer to purchase the material fact that it was necessary for the purchaser to sell or lease her present residence in order to qualify for financing required to complete the purchase. The Commission also found that Mr. Littleton refused to return to the purchaser the keys to her residence.

MALCOLM A. MINTER (Charlotte)—The Commission censured Mr. Minter for assisting and encouraging a purchaser to furnish misleading information to a lender. Mr. Minter appealed the Commission's ruling, but the appeal was voluntarily dismissed in the Wake County Superior Court.

BETTY H. NANTZ (Maggie Valley) —By Consent, the Commission suspended Ms. Nantz' broker's license for six months effective July 1, 1985, and placed her on probation for two years on condition that she complete the Commission's Trust Account Short Course. The Commission found that Ms. Nantz's had converted client funds to her own use during transactions occurring before December, 1982.

JAMES C. OGBURN (Raleigh)— The Commission revoked Mr. Ogburn's broker's license effective June 12, 1985, for converting client funds to his own use in 19 separate real estate transactions and for attempting to conceal such conversion from the Commission.

LAWRENCE R. PHILLIPS (Lake Lure)—By Consent, the Commission reprimanded Mr. Phillips. The Commission found that following the acceptance and execution of a contract of sale by a seller, Mr. Phillips presented a subsequent, more favorable offer to the seller which was accepted. Mr. Phillips then recorded the contract, which placed a cloud on the seller's title preventing the closing of the earlier sale and subjecting the seller to potential liability for damages to the initial purchasers and to payment of a brokerage fee to the agents who procured such purchasers.

HARRIET R. RAINES (Mebane)— By Consent, the Commission suspended Ms. Raines' broker's license for 90 days effective February 10, 1985, for subleasing apartments and accepting gratuities from original tenants without the knowledge or consent of her employer, the property owner.

LLOYD B. SPRINGLE, JR. (Beaufort)—The Commission suspended Mr. Springle's broker's license for 60 days effective May 1, 1985. Thirty days of the suspension is to be active and Mr. Springle was placed on probation for two years on condition that he complete Commission-approved courses in Real Estate Law and Real Estate Brokerage Operations and the Commission's Trust Account Short Course. The Commission found that Mr. Springle had failed to maintain adequate records of client funds, including the amount, nature and purpose of deposits and withdrawals, bank statement reconciliations, and a running balance of funds in his trust account. The Commission also found that he had failed to make his records available for inspection to a Commission Trust Account Auditor despite numerous requests.

TRANSCO FINANCIAL GROUP, LTD. (Pompano Beach, Fla.)—By Consent, the Commission fined Transco Financial Group, Ltd., developer of the time share projects Frontier Village I and Frontier Village II, $6000 for employing persons to engage in time share sales who did not hold North Carolina real estate broker or salesman licenses.

WESTRIDGE AT SUGAR (Banner Elk)—By Consent, the Commission revoked the time share project registration certificate of Westridge at Sugar effective June 30, 1985. The Commission noted that the project's initial application for registration had been denied by the Commission on the grounds that the project was not directed by persons of good character in that two of the project developer's principal officers were disbarred attorneys. However, following a hearing at which the Commission was assured that these individuals would not be involved in the operations of the project, the Commission registered the project. Upon subsequently leaning that these individuals had continued to substantially influence the conduct of business at the project, the Commission with the consent of the developer, Sugar Mountain Development Corporation, revoked the project's registration certificate.