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.

JAMES A. BAYLISS and JBA-LEISURE MARKETING, INC. (Virginia)— The Commission suspended Mr. Bayliss' broker's license and the corporate real estate broker's license of JBA-Leisure Marketing, Inc. for two years effective October 1, 1985. The Commission found that Mr. Bayliss as principal broker and chief executive officer of JBA-Leisure Marketing, and JBA-Leisure Marketing, Inc. acted together in causing Resorts Mailing, Ltd. to conduct a mail solicitation to attract prospective purchasers to the Beach Harbour time share project which solicitation was deceptive in nature, in that its offering of a vacation trip to Mexico 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 sales presentation. The Commission also found that salesmen and representatives of JBA-Leisure Marketing, Inc. knowingly failed to disclose the true details of its solicitation to prospective purchasers until after they had completed their sales presentation.

AVIS L. DUBE (Fayetteville)—By Consent, the Commission revoked Ms. Dube's broker's license effective September 1, 1985. The Commission found that Ms. Dube had failed to maintain deposit slips and receipts for her two trust accounts and commingled the funds of others with her own funds by depositing her own funds in her trust accounts. The Commission also found that Ms. Dube had remitted to a property owner checks for rental payments which were dishonored due to insufficient funds, and that she charged the property owner for expenses in connection with the management of the owner's property but then failed to promptly pay the persons to whom the money was owed. The Commission also found that Ms. Dube had failed to provide a closing statement or the sales proceeds to a seller in a sales transaction, and in a separate sales transaction failed to promptly pay an expense of the transaction which she had agreed to pay.

JASIA G. DUDKO (Gastonia)—The Commission revoked Ms. Dudko's salesman's license effective October 15, 1985. The Commission found that Ms. Dudko had acted in the capacity of a real estate broker while holding a salesman's license in that she managed properties, collected rents and received compensation for her services without the knowledge or consent of her broker-in-charge. The Commission also found that Ms. Dudko failed to deposit rents in a trust account and failed to remit rents to property owners in two separate rental transactions.

days is to be active and the remaining eleven months on probation. The Commission found that Ms. Ferguson as president, principal broker and broker-in-charge of Billy Goat Management, Inc. failed to deposit and maintain the funds of others in a properly designated trust or escrow account and failed to properly account for and maintain adequate records regarding such funds. The Commission noted, however, that such actions were the result of mismanagement rather than intentional wrong-doing and that no principal, client or customer had been deprived of their funds.

CARL W. HAMM, JR. and CENTURY 21-CARL HAMM REALTY, INC. (Shelby)— By Consent, the Commission revoked Mr. Hamm's broker's license and the corporate real estate broker license of Century 21-Carl Hamm Realty, Inc. effective October 15, 1985, which licenses may be considered for reinstatement after October 15,1986. The Commission found that Mr. Hamm while doing business as Century 21-Carl Hamm Realty, Inc. failed to pay mortgage payments in a timely and orderly manner on property managed by him for others, failed to deposit and maintain the funds of others in a trust account, and failed to maintain and make available to Commission representatives adequate records regarding funds held in trust for others.

JEAN C. FERGUSON and BILLY GOAT MANAGEMENT, INC. (Boone)—By Consent, the Commission suspended Ms. Ferguson's broker's license and the corporate real estate broker's license of Billy Goat Management, Inc. for one year effective November 1, 1985, of which thirty

KENWYN N. (BILL) JOHNSON (Laurinburg)—By Consent, the Commission suspended Mr. Johnson's broker's license for eighteen months effective October 1, 1985. Sixty days of the suspension is to be active and Mr. Johnson was placed on probation through December 31, 1986 on condition that he complete a Commission-approved course in Real Estate Finance by June 1,1986. The Commission found that Mr. Johnson, without the knowledge and consent of the purchaser, inserted his (Mr. Johnson's) name as owner on the title certificate to a mobile home which he had contracted to sell to the purchaser, and then used the mobile home as collateral to secure various loans. The Commission also found in a separate transaction that Mr. Johnson failed to record the deed and deed of trust to property sold by him, and that he failed to insure a mobile home situated on the property, which was subsequently damaged by a tornado to the injury and detriment of the purchaser. The Commission also found that Mr. Johnson had contracted to sell a mobile home and lot to a purchaser without disclosing that the property was subject to an existing lien, and that he failed to record the deed and deed of trust to the property. The Commission noted, however, that Mr. Johnson subsequently entered into agreements with the injured parties to resolve their complaints.

CHARLES J. LACKEY (Greensboro)— The Commission suspended Mr. Lackey's broker's license for one year effective November 1, 1985 of which six months is to be active and two years on probation on condition that he complete a Commission-approved course in Real Estate Fundamentals by May 1, 1986. The Commission found that Mr. Lackey in his capacity as broker-in-charge of Foxfire Interval Ownership Resort Program, First Resort Properties, Inc. and First Resort Sales, Inc. permitted unlicensed persons to sell time shares and permitted a sales promotion program to be conducted wherein false promises were made regarding the awarding of gifts.

WILLIAM B. MCDOWELL (Cary)— By Consent, the Commission revoked Mr. McDowell's broker's license effective October 1, 1985, which license may be considered for reinstatement after October 1, 1986. The Commission found that Mr. McDowell as the seller of a house, had made false statements to a lender by entering into a separate sales contract with a purchaser providing for secondary financing terms without the lender's knowledge or consent.

RESORT DEVELOPMENT ENTERPRISES, INC. (Boone)—The Commission revoked the corporate real estate broker's license of Resort Development Enterprises, Inc. effective November 1, 1985 for employing and paying sales commissions to persons not licensed as real estate brokers or salesmen who were engaged in selling time shares at the projects Frontier Village I and Frontier Village II.

BONNIE H. SELPH (Boone)—The Commission suspended Mrs. Selph's broker's license for 60 days effective September 15, 1985 and placed her on probation through September 15, 1986. The Commission found that Mrs. Selph failed to account for and remit within a reasonable time money belonging to others; failed to review or reconcile her trust account records for over three years; failed to properly deposit funds in her trust account failed to maintain adequate records of trust funds and to retain required trust account records for a three-year period; and commingled the money of her principals with her own funds.

CARL JASON SELPH (Boone)—The Commission suspended Mr. Selph's broker's license for 90 days effective November 15, 1985 and placed him on probation through November 15, 1986. The Com mission found that Mr. Selph had willfully misrepresented to a purchaser that the purchaser had forfeited her earnest money deposit when, in fact, the seller had not claimed a forfeiture. The Commission also found that he had failed to remit the eamest money deposit to the purchaser within a reasonable time and that he had claimed the deposit for himself when he had no contractual right to the funds.

GEORGE R. THOMAS (Bakersville)— By Consent, the Commission reprimanded Mr. Thomas effective September 24, 1985 for negligently advertising that certain property which he was offering for sale was owned by a partnership when, in fact, the property was owned in common tenancy by Mr. Thomas and another individual. The Commission also found that Mr. Thomas granted a life estate in the entire property to one of his relatives and that in presenting an offer to purchase the property to the co-owner of the property which provided for payment of a commission to Mr. Thomas, he negligently failed to disclose that the company making such offer was under the control of his employee and business associate.

JOY F. VICKERS (Boone)—The Commission suspended Ms. Vicker's broker's license for six months effective November 1,1985 for allowing a corporate real estate broker, Resort Development Enterprises, for which she was serving as principal broker and broker-in-charge to employ and pay persons not licensed as real estate brokers or salesmen to act as time share salesmen.