DISCIPLINARY ACTION

Penalties for violations of the Real Estate License Law and Commission Rules and Regulations nary 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 D. COUEY (Wilmington)— By Consent, the Commission revoked Mr. Couey's salesman's license effective December 1, 1986 for acting as a real estate salesman without the supervision of a Broker- l n- Charge .

THOMAS J. ETOWSKI (Fayetteville)—By Consent, the Commission suspended Mr. Etowski's broker's license for 60 days effective March 1, 1987 upon his plea for nolo contendere to having failed to adequately supervise a salesman.

FRANK L. HEADEN; FRANK HEADEN & ASSOCIATES, INC. (Charlotte)—By Consent, the Commission revoked Mr. Headen's broker's license and the corporate real estate broker's license of Frank Headen & Associates, Inc. effective March 1, 1987. The Commission found that Mr. Headen, as president, principal broker and Broker-ln-Charge of Frank Headen & Associates, Inc., failed to deposit tenant security deposits in a separate trust account and spent such funds to pay owner's operating expenses for the management of properties, resulting in a $20,944.23 deficit in the account.

JOSEPH W. HINERMAN (Greensboro)—By Consent, the Commission suspended Mr. Hinemman's salesman's license for three years effective January 1,1987 for failing to disclose to a broker who was entitled to receive funds, that he had collected said funds.

BENJAMIN D. KISTLER, JR. (Wilmington)—By Consent, the Commission suspended Mr. Kistler's broker's license for one year effective March 1, 1987. The Commission found that Mr. Kistler, for a fee, signed a contract as purchaser of a residential subdivision lot which contract contained a false representation concerning the purchase once.

THOMAS R. LAWING, SR.; THOMAS R. LAWING, JR.; and T.R. LAWING REALTY, INC. (Charlotte) — The Commission suspended the broker's licenses of Thomas R. Lawing, Sr., and Thomas R. Lawing, Jr. and the corporate real estate broker's license of T.R. Lawing, Inc. for two years effective March 15, 1987. By Consent, the Commission then suspended its Order and placed them on probation for two years on condition that they revise and implement new forms and procedures in connection with their property management operations which conform to the requirements of G.S. 43 and 93A and the rules of the Real Estate Commission. The Commission found that they had placed certain tenant security deposits and rents in interest bearing accounts and investments without written authority and that they had paid from client funds expenses associated with the management of certain properties when the funds on deposit for those properties were insufficient to cover such expenses. The Commission noted that no person suffered any actual financial loss as a result of their~actions.

PAUL J. McDANIEL (Wilmington) — The Commission revoked Mr. McDaniel's salesman's license effective February 1, 1987. The Commission found that Mr. McDaniel had prepared a sales contract which misrepresented the identities of the seller of the property and the brokerage firm which handled the transaction. The Commission also found that Mr. McDaniel concealed the closing of the transaction from his Broker-In-Charge, collected the brokerage fee from the seller without his Broker-ln-Charge's knowledge and consent, and refused to return the brokerage fee to his Broker-In-Charge upon demand.

ROBERT B. McKINNEY (Wilmington)—By Consent, the Commission reprimanded Mr. McKinney for sharing brokerage fees with an unlicensed brokerage corporation by which he was employed.

TERESA MEBANE (Wilmington)— By Consent, the Commission suspended Ms. Mebane's salesman's license for one year effective March 1, 1987. The Commission found that Ms. Mebane had, for a fee, signed a contract as purchaser of a residential subdivision lot which contract contained a false representation concerning the purchase pace.

HOWARD F. NEILL (Lincolnton)— By Consent, the Commission reprimanded Mr. Neill for having been convicted of an offense involving moral turpitude which would reasonably affect his performance as a real estate broker, namely, the offense of willfully making and subscribing a false income tax return.

OCEAN VILLAS 11 (Dare County) —By Consent, the Commission revoked the time share project registration certificate issued to First Flight Builders, Inc. for the Ocean Villas 11 time share project effective January 7, 1987 for failing to record a lien-free interest in favor of purchasers of time shares at the project.

OLIVER H. PURVIS, III (Charlotte) — The Commission suspended Mr. Purvis' broker's license for sixty days effective December 15, 1986 for misrepresenting to purchasers in a real estate transaction their ownership rights under a "contract for deed."

BETTY J. SEAVEY (Jacksonville) —By Consent, the Commission revoked Ms. Seavey's broker's license effective March 1, 1987 for failing to maintain accurate records of real estate transactions and failing to produce such records upon request by the Commission's investigator.

SECOND RESORT PROPERTIES (Foxfire Village) — The Commission revoked the corporate real estate broker's license of Second Resort Properties, Inc., t/a Foxfire Real Estate, effective May 1,1986. The Commission found that the corporation, while acting as sales agent and escrow agents in the sale of lots in Foxfire Village, had failed to provide purchasers valid and complete public offering statements as required under the Federal Interstate Land Sales Act. The Commission also found that the corporation had made false promises to purchasers that the developer, First Resorts Properties, would provide paved roads, electricity and water lines to the lots which were required by a local building code ordinance in order for residential construction on the lots.

CURTIS E. SKIPPER (Fayetteville) — The Commission suspended Mr. Skipper's broker's license for 30 days effective March 1, 1987. The Commission found that Mr. Skipper, while previously licensed as a salesman, prepared and submitted to a lender a false sales contract for the purpose of inducing the lender to loan the purchasers the actual amount of the purchase price.

BARRY J. SMALL (Wilmington)— By Consent, the Commission suspended Mr. Small's salesman's license for five years effective February 1, 1987. The Commission found that Mr. Small had failed to prepare closing statements for various buyers and sellers and had prematurely disbursed purchase deposit monies from the sale of a lot. The Commission also found that Mr. Small and his Broker-ln-Charge had knowingly submitted purchase contracts to lenders which recited that certain purchase monies had been paid when, in fact, they had not.

GARY A. TRANTHAM (Charlotte) — The Commission suspended Mr. Trantham's broker's license for one year effective December 15, 1986. Three months of the suspension are to be active and one year on probation. The Commission found that Mr. Trantham had engaged in the unauthorized practice of law by preparing a "contract for deed" and a promissory note. The Commission also found that he had made changes to documents in connection with a transaction without obtaining the initials of the proper parties.