Disciplinary Action

Penalties for violations 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.

NORMAN R. BRUNETTE (Shallotte) The Commission revoked Mr. Brunette's broker's license effective January 3, 1986. The Commission found that Mr. Brunette, upon terminating his association as broker-in-charge of a real estate firm, had withdrawn all funds on deposit in the firm's trust account and had taken said funds and the firm's trust account records with him to South Carolina. The Commission also found that Mr. Brunette subsequently converted these funds to his own use and refused several requests from the Commission's trust account auditor to produce the firm's records.

RICHARD J. COOK (Greensboro) -The Commission suspended Mr. Cook's broker's license for one year, of which six months of the suspension are to be active and the Remaining six months suspended on condition that he complete courses in real estate law and brokerage operations. The Commission found that Mr. Cook had willfully misrepresented to his seller that it was not necessary for her husband to sign deeds to convey property owned by them by the entireties and that she could, without authorization, sign her husband's name on such deeds. The Commission also found that he had acted for more than one party in a real estate transaction without the knowledge or informed consent of all parties.

PHYLLIS M. COOPER (Gastonia) -The Commission revoked Ms. Cooper's salesman's license effective January 6,1986. The Commission found that Ms. Cooper had encouraged and assisted a purchaser to furnish false information to a lender regarding the purchaser's child support obligation. The Commission also found that she had assured the purchaser that his purchase deposit would be returned in full in the event the purchase was not consummated, but in fact, only a portion of his deposit was returned when the lender withdrew its approval of the purchaser's loan application.

FIRST STAR, INC.; SNOWCLOUD I CONDOMINIUM; SNOWCLOUD II CONDOMINIUM (Seven Devils) - The Commission revoked the corporate real estate broker's license of First Star, Inc. and the registration certificates of the time share projects Snowcloud I Condominium and Snowcloud II Condominium effective December31, 1985. The Commission found that First Star, Inc., as the registered developer of the Snowcloud I and Snowcloud II time share projects, employed numerous unlicensed persons to sell tip shares at these projects. The Commission also found that these unlicensed salesmen made false promises to prospective purchasers to induce them to purchase time shares; and that the salesmen failed to give purchasers certain required information, such as the purchasers' right to a refund of their purchase money should they elect to cancel their sales contract within five days after signing it.

GOLD COAST MARKETING, INC. (Holly Ridge) - The Commission revoked the corporate real estate broker's license of Gold Coast Marketing, Inc. effective January 7, 1986 for issuing a purchase deposit refund check which was dishonored by the bank and then falsely representing to the Attorney General's Office that such deposit had been refunded. The Commission also found that the corporation's real estate broker's license contained false and fraudulent representations to the effect that no of ricer, director or employee of the corporation had been convicted of a criminal offense when in fact two of the initial directors of the corporation had been convicted of serious criminal offenses.

EDWARD L. HALE (Greensboro) -The Commission denied the reinstatement of Mr. Hale's expired broker's license on the grounds that he did not possess the requisite character for licensure. The Commission's determination was based upon a finding that Mr. Hale, while licensed as a real estate broker, failed to account for and remit to a property owner rental monies and security deposits collected on properties managed for the owner, and that he failed to produce any trust account records for inspection by the Commission's trust account auditor.

JEANETTE M. JOHNSON ROWELL (Spring Lake) - The Commission suspended Mrs. Rowell's salesman's license for one year effective January 1, 1986. Six months of the suspension are to be active and the remaining six months on probation. The Commission found that Mrs. Rowell had allowed Mr. Robert L. Maxey, an unlicensed individual, to control her acts as a licensee and that she assisted Mr. Maxey in obtaining Veterans Administration financing for purchasers when she knew that Mr. Maxey was barred from participating in VA financing programs on property owned or controlled by him.

GLADYS T. SPEARS (Fayetteville) -The Commission suspended Mrs. Spears' broker's license for one year effective February 1, 1986, of which thirty days are to be active and the remaining eleven months on probation. The Commission found that Mrs. Spears had commingled an earnest money deposit with her business or personal funds, and had failed to promptly remit the deposit to the proper party.

SWISS MOUNTAIN CORPORATION (Blowing Rock), HOWARD C. McDERMID, 11; MARK A. MOORE; ERVIN S. BATCHELOR, JR.; ROBERT S. CHAREST; LARRY D. CROWELL; PAMELA R. GABLE; DAVID F. HINSHAW; NOEL C. JOHNSON; DONALD K. LANE; CHARLES L. MUNN - By Consent, the Commission reprimanded Swiss Mountain Corporation, which is the registered developer of the time share project Swiss Mountain Village, for failing to notify the Commission of a change in its sales contract form.
By Consent' the Commission revoked the broker's license of Howard C. McDermid, It effective December 1,1985, but subsequently issued a salesman's license to him on January 9,1986. The Commission found that Mr. McDermid, while acting as a "takeover salesman" at the Swiss Mountain Village time share project, failed to provide public offering statement summary sheets to numerous purchasers, and failed to provide purchasers complete copies of their sales documents containing information relating to the purchasers' right to rescind their sales contracts.
By Consent, the Commission suspended the broker's license of Mark A. Moore for two years effective October 2, 1985, of which one year is to be active and the remaining one year on probation. The Commission found that Mr. Moore, while acting as broker-in-charge of the Swiss Mountain Village time share project, allowed nine persons to work as salesmen prior to receiving their real estate licenses. The Commission also found that he failed to properly supervise the activities of two salesmen by permitting them to close time share sales transactions without delivering to the purchasers all required documentation, and that he allowed the marketing of time shares at Swiss Mountain Village that did not belong to the registered developer of the project.
The Commission reprimanded salesman Bruce D. Godwin for failing to provide time share purchasers at Swiss Mountain Village public offering statement summaries conspicuously disclosing the purchasers' right to cancel their time share purchase agreements.
By Consent, the Commission reprimanded salesmen Ervin S. Batchelor, Jr., Robert S. Charest, Larry D. Crowell, Pamela R. Gable, David F. Hinshaw, Noel C. Johnson, Donald K. Lane, and Charles L. Munn for working as time share salesmen at Swiss Mountain Village prior to the issuance of their license certificates to the broker-in-charge of the project.

PIER P. TUNSTALL (Goldsboro) - The Commission revoked Mrs. Tunstall's broker's license effective January 3, 1986. The Commission found that Mrs. Tunstall admitted to having converted to her own use more than $9,000 of client funds from the trust account of the firm with which she was associated. Mrs. Tunstall subsequently repaid all funds. The Commission also found that Mrs. Tunstall, in a single real estate transaction, had forged the names of the purchasers to a note and deed of trust, but that she did so without any intent to convert any of the purchasers' funds to her own use or to deprive the purchasers or her employer of any funds or properties that belonged to them.

JERRY LEE WELLS (Jacksonville) -The Commission revoked Mr. Wells' broker's license effective January 1, 1986, which license may be considered for reinstatement after January 1, 1989. Mr. Wells was subsequently issued a salesman's license effective March 1,1986. The Commission found that Mr. Wells had obtained his real estate broker's license by making a false representation on his application for license in that he stated that he had never been convicted of a criminal offense when, in fact, he had previously pled guilt and was adjudged guilty of making a materially false statement in a loan application.