Disciplinary Action

Penalties for violations of the Real fate 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.

STEFAN A. AUGUSTIN (Wilmington) — By Consent, the Commission reprimanded Mr. Augustin for acting as a real estate salesman without the supervision of a Broker-in-Charge designated with the Commission.

BEACH HARBOUR ENTERPRISES (Carolina Beach)—By Consent, the Commission, effective August 7, 1986, fined Beach Harbour Enterprises, developer of the time share project Beach Harbour, $ 1000 for using improper mail solicitations to attract purchasers to the project. Beach Harbour Associates was also fined an additional $2000 for selling time shares at the project before a Project Broker or Time Share Registrar had been designated.

CARL W. BELL, JR. (Morehead City) —By Consent, the Commission suspended Mr. Bell's broker's license for two years effective November 20,1986. Six months of the suspension are to be active and two years on probation. The Commission found that Mr. Bell had offered for sale a condominium which he was not authorized to sell and failed to furnish the offeror a copy of his offer to purchase. The Commission also found that Mr. Bell had failed to deposit the offeror's $5000 earnest money check in an escrow or trust account and issued a refund of the offeror's deposit without having sufficient funds to honor the referral check; however, Mr. Bell subsequently repaid the offeror.

WILSON BLANKENSHIP (Wilrnington)—By Consent, the Commission reprimanded Mr.Blankenship for sharing brokerage fees with an unlicensed brokerage corporation by which he was employed.

CONNALLY P. BRANCH (Greenville)—The Commission reprimanded Mr. Branch for acting in a manner inconsistent with his duties to his principals, the sellers. The Commission found that Mr. Branch had acted for more than one party in a transaction without the knowledge of all parties and that he had failed to deliver to his principals within a reasonable time, a copy of an offer to purchase their property.

ROBERT F. BRIGMAN (Wilmington) —By Consent, the Commission suspended Mr. Brigman's salesman's license for one year effective November 1, 1986. Ninety days of the suspension are to be active and one year on probation. The Commission found that Mr. Brigman acted as a real estate salesman without the supervision of a Broker-in-Charge, and employed unlicensed persons to sell real estate as agents.

STEVE J. EVANS (Greenville)—By Consent, the Commission suspended Mr. Evans' broker's license for thirty days effective September 1, 1986. The Commission found that Mr. Evans had failed to deliver to a seller an offer to purchase the seller's property.

FIRST FLIGHT MARKETING, INC. (Dare County) — By Consent, the Commission revoked the corporate real estate broker's license of First Flight Marketing, Inc. effective September 1, 1986 for employing two unlicensed persons to sell time shares at various Dare County time share projects.

JAMES RAE FREELAND (Hillsborough)—By Consent, the Commission suspended Mr. Freeland's broker's license for two years effective October 1, 1986. Three months of the suspension are to be active and two years on probation. The Commission ~ found that Mr. Freeland, while acting as agent for a seller, had failed to advise the seller of an offer to purchase a portion of the seller's property. Instead, Mr. Freeland sold the property to his son and then re-sold the property to the original purchaser for a substantial profit. Mr. Freeland subsequently made restitution to the seller.

DAVID F. GREEN (Jacksonville)— The Commission revoked Mr. Green's salesman's license effective July 1, 1986. The Commission found that Mr. Green had induced a seller to convey certain property to his (Mr. Green's) father by promising to pay the seller $1000 for the seller's equity, assume the seller's VA-guaranteed loan, and release the seller from liability to the VA for repayment of the loan. These promises were false in that Mr. Green failed to make the equity payment to the seller, failed to make monthly payments resulting in foreclosure by the VA, and failed to obtain a release of liability for the seller. The Commission also found that Mr. Green had acted for his father without the knowledge or consent of the seller. In separate transactions, the Commission found that Mr. Green, outside the knowledge and supervision of his Broker-ln-Charge, had prepared offers which contained confusing and inconsistent financing provisions involving VA-guaranteed loans and second deeds of trust.

JAMES R. HANRATTY (Carolina Beach)—By Consent, the Commission reprimanded Mr. Hanratty for selling and offering to sell time shares at the Beach Harbour time share project before a Project Broker or Time Share Registrar had been designated.

JAMES C. HARRIS, JR; THE WARREN GROUP, INC. (Warrenton) —By Consent, the Commission revoked Mr. Harris' broker's license and the corporate real estate broker's license of The Warren Group, Inc. effective November 12, 1986. The Commission found that Mr. Harris in his individual capacity and as President and Principal Broker of the Warren Group, Inc., had converted to his own use the funds of others in five separate real estate transactions in which he acted as either rental agent or sales agent.

BARRY E. HOBBS (Wilmington)— By Consent, the Commission reprimanded Mr. Hobbs for acting as a real estate salesman without the supervision of a Broker-in-Charge designated with the Commission.

HORNE DEVELOPERS, INC.; POWDER HORN MOUNTAIN (Triplett) —The Commission revoked the corporate real estate broker's license of Home Developers, Inc. and the registration certificate of the time share project Powder Ham Mountain effective May 20, 1986. The Commission found that Horne Developers, Inc. as the registered developer of Powder Horn Mountain had failed to convey title to certain time share purchasers and failed to obtain releases from deeds of trust encumbering certain weeks sold. The Commission also found that Home Developers, Inc. subsequently abandoned the project.

BILLY J. HOYLE (Cedar Mountain) —The Commission revoked Mr. Hoyle's salesman's license effective October 14, 1986. The Commission found that Mr. Hoyle, while acting as a salesman and bookkeeper for a real estate firm, had converted trust funds to his own use, and had failed to properly account for the funds of others.

NICHOLAS JEROSIMICH (Wallace) —By Consent, the Commission suspended Mr. Jerosimich's broker's license for one year effective September 1, 1986 for failing, as Broker-ln-Charge, to adequately supervise the acts of a salesman. The Commission found that Mr. Jerosimich did not review sales contracts prepared by the salesman nor properly handle or account for trust funds.

ROY L. JONES (Carolina Beach)—By Consent, the Commission reprimanded Mr. Jones for allowing the sale of time shares at the Beach Harbour time share project before a Project Broker or Time Share Registrar had been designated.

IDIN KAVEH (Wilmington) — By Consent, the Commission reprimanded Mr. Kaveh for acting as a real estate salesman without the supervision of a Broker-in-Charge designated with the Commission.

LEE ANNE MacDADE (Charlotte)— By Consent, the Commission suspended Mrs. MacDade's salesman's license for thirty days effective November 1, 1986. The Commission found that Mrs. MacDade had received a brokerage fee paid by her husband's employer contrary to the employer's policy of refusing to pay such fees to employees or their spouses. Mrs. MacDade subsequently resumed the brokerage fee.

OCEAN VILLAS I and FIRST FLIGHT BUILDERS, INC. (Dare County)—By Consent, the Commission, effective August 19,1986, fined first Flight Builders, Inc. $500 for selling a time share at the project Ocean Villas I when such project was not registered with the Commission.

GARY W. OWENS (Raleigh)—By Consent, the Commission suspended Mr. Owens' broker's license for ninety days effective November 6, 1986. The Commission found that Mr. Owens had failed to provide adequate, personal, onsite supervision of two salesmen under his charge and control.

BRIAN P. QUINN (Wilmington)—By Consent, the Commission suspended Mr. Quinn's salesman's license for one year effective December 1, 1986. Ninety days of the suspension are to be active and one year on probation. The Commission found that Mr. Quinn acted as a real estate salesman without the supervision of a Broker-in-Charge, and employed unlicensed persons to sell real estate as agents.

WANDA SUE REGISTER (Lumberton) — By Consent, the Commission revoked Mrs. Register's salesman's license effective November 17, 1986. The Commission found that Mrs. Register, while employed as a property manager by a real estate firm, had failed to pay rent on an apartment in which her family resided and had disbursed funds to her husband for repair work which he had not performed. Upon determining through an audit that the firm's rental management trust account was $12,000 short, Mrs. Register reimbursed the account.

LESTER M. ROWLAND, JR. (Dare County)—By Consent, the Commission revoked Mr. Rowland's broker's license effective October 16, 1986. The Commission found that Mr. Rowland, as principal broker and Broker-in-Charge of First Flight Marketing, Inc., had employed two unlicensed persons to sell time shares at various Dare County time share projects.

SHORELINES, INC.; SHORELINES MARKETING OF WILMINGTON, INC. (Wilmington)—By Consent, the Commission revoked the corporate real estate broker's licenses of Shorelines, Inc. and Shorelines Marketing of Wilmington, Inc., effective November 1, 1986 for failing to provide closing statements to buyers and sellers for whom they held funds.

G. TIMOTHY SMITH (Greenville)— The Commission suspended MA Smith's broker's license for one year effective July 28, 1986. Two months of the suspension are to be active. The remainder is suspended for a one-year probation. The Commission found that Mr. Smith had acted in a manner inconsistent with his duties to his principals, the sellers, by failing to submit to them an offer to purchase an option to buy their property. Instead, Mr. Smith presented and negotiated an option on behalf of his business associate. The Commission also found that he failed to include in the option agreement a material condition requested by the sellers.

RALEIGH D. SOUTHERLAND, JR. (Wilmington) — By Consent, the Commission suspended Mr. Southerland's broker's license for three years effective September 15, 1986. The Commission found that Mr. Southerland, as principal broker and Broker-in-Charge of Shorelines, inc. and Shorelines Marketing of Wilmington, Inc. failed to ensure that buyers and sellers were provided with true and accurate closing statements.

ROBERT L. STEPHENSON (High Point)—By Consent, the Commission reprimanded Mr. Stephenson for misrepresenting to purchasers that they could assume a loan on property listed by him, when, in fact, this was not true.

WOODROW THOMASSON, JR. (Raleigh)—By Consent, the Commission suspended Mr. Thomasson's broker'` license for one year effective October 1,\. 1986. One month of the suspension is to be active and the remaining eleven months are suspended for a probationary period on condition that he attend the Commission's Trust Account Short Course. The Commission found that Mr. Thomasson in three separate transactions issued checks from his trust account which were resumed unpaid due to insufficient funds as a result of his failure to maintain adequate trust account records.

WHISPERING PINES, INC. (Moore County)—By Consent, the Commission, effective July 1, 1986, fined Whispering Pines, Inc., developer of the time share project Whispering Pines Time Share Villas, $5000 and suspended for two years the project's registration certificate. The Commission then suspended its Order and placed Whispering Pines, Inc. on probation for eighteen months on condition that certain time share units be ready for occupancy by a certain date and provided that various other conditions imposed by the Commission are satisfied. The Commission found that Whispering Pines, Inc. had issued deeds to time share condominium units which had not been converted for use as condominiums; that a corporation not licensed as a real estate broker had been employed to market time shares at the project which corporation used an improper mail solicitation to attract purchasers to the project and employed an unlicensed person to act as "takeover" salesman to close time share sales; that two other improper mail solicitations had been used to attract time share purchasers; and that an unlicensed person directed the sales operation and engaged in time share sales activities at the project.

MARY LOUISE WHITLEY (Albemarle)—The Commission suspended Mrs. Whitley's broker's license for one year effective November 1,1986. Six months of the suspension are to be active and one year on probation. The Commission found that Mrs. Whitley had failed to inform a lender of a conveyance of property owned by her which was subject to a "due on sale" clause, and that she had made a false promise to purchase property from a seller in order to induce the seller to purchase property listed by her. The Commission also found that she had failed to deposit an earnest mane deposit in her trust account and had failed tom maintain transaction records for three years following the transaction.

DUDLEY B. WILLIAMS, JR. (Oxford)— By Consent, the Commission reprimanded Mr. Williams for failing to disclose soil report to a potential purchaser of real estate.

MARILYN L. WILLIAMS (Oxford)—By Consent, the Commission reprimanded Mrs. Williams for failing to disclose soil report to a potential purchaser of real essay.

JETER C. YOUNG, JR. (Wilmington)—By Consent, the Commission reprimanded Mr. Young for sharing brokerage fee. with an unlicensed brokerage corporation by which he was employed.