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.

" A " QUALITY REALTY OF THE PIEDMONT TRIAD, INC. (Greensboro) - By Consent, the Commission reprimanded the corporation due to the negligent failure of one of its employees to deliver a copy of a home inspection report to the purchasers.

BEACH HARBOUR ENTERPRISES (Carolina Beach) - By Consent, the Commission revoked the time share registration certificate of Beach Harbour Enterprises effective March 1, 1988. The Commission found that Beach Harbour had engaged in a course of mismanagement, misrepresentation, false promises in advertising, and improper conduct in the administration of time share project sales operations, rental operations and the management of a homeowners' association.

KELLY H. BENNETT (Greensboro) - By Consent, the Commission suspended Mr. Bennett's broker's license for six months effective February 11, 1988. The Commission then suspended its Order and placed Mr. Bennett on probation for one year. The Commission found that Mr. Bennett had assisted a buyer and seller in adjusting certain amounts paid by the seller without notifying the lender and the dosing attorney and that he had failed to prepare a new dosing statement reflecting the adjustments.

CARRIAGE MANOR CORPORATION (Bunn) - By Consent, the Commission fined Carriage Manor Corporation, developer of the time share project Carriage Manor, $3,000 effective March 8, 1988. The Commission found that Carriage Manor Corporation had failed to comply with the Time Share Act and the Commission's rules requiring the transfer of down payment monies on time share purchases to an independent escrow account when a purchaser does not rescind his purchase contract within the ten-day rescission period. The Commission noted, however, that no member of the public had suffered any harm due to Carriage Manor's actions.

CATHERINE D. COLLINS (Cullowhee) -By Consent, the Commission suspended Ms. Collins' broker's license for six months effective April 8, 1988. The Commission found that Ms. Collins had failed to make trust account records available to the Commission.

MELANIE M. CULP (Charlotte) - By Consent, the Commission reprimanded Ms. Culp for acting as a real estate salesman without first notifying the Commission and activating her salesman's license.

KARA SUE CUSCADEN (Raleigh) - By Consent, the Commission suspended Ms. Cuscaden's salesman's license for six months effective April 7, 1988. Sixty days of the suspension are to be active and one year on probation. The Commission found that Ms. Cuscaden had known that certain property being purchased was subject to an existing contract for conveyance of a utility easement across the property, but that she failed to inform the purchaser.

D.M. & D.F., INC. (Carolina Beach) - By Consent, the Commission revoked the corporate real estate broker's license of D.M. & D.F., Inc. effective March 1, 1988. The Commission found that the corporation had engaged in a course of mismanagement, misrepresentation, false promises in advertising, and improper conduct in the administration of time share project sales operations, rental operations and the management of a homeowners' association.

RAY S. DEBNAM (Raleigh) - By Consent, the Commission suspended Mr. Debnam's broker's license for three years effective May 9, 1988. Six months of the suspension are to be active and two years six months on probation on condition that he complete certain specified real estate education. The Commission found that Mr. Debnam had failed to refund an earnest money deposit to a purchaser in a timely manner. The Commission also found in a separate transaction, that Mr. Debnam had failed to apply in a timely manner the proceeds from the sale of property to the seller's purchase of other property as promised.

JAMES R. FRANKLIN (Dare County) -The Commission suspended Mr. Franklin's broker's license for orate' year effective May 1, 1988. The Commission then suspended its Order and placed Mr. Franklin on probation for one year. The Commission found that Mr. Franklin, while previously licensed as a salesman and acting as agent for a seller in a real estate transaction, had failed to disclose to his supervising broker-in-charge and to the seller, that he intended to acquire an interest in the seller's property and that he had not, in fact, received all funds from the purchaser required under the contract of sale.

CHARLES D. GALLIMORE; ACCORD MORTGAGE COMPANY, AUCTION AND REALTY (Concord) - By Consent, the Commission suspended Mr. Gallimore's broker's license and the corporate real estate broker's license of Accord Mortgage Company, Auction and Realty for two years effective April 8, 1988. The Commission found that Mr. Gallimore had commingled and failed to properly account for must funds.

SAMUEL HAITH, JR. (Greensboro) - By Consent, the Commission suspended Mr. Haith's broker's license for six months effective February 11, 1988. The Commission then suspended its Order and placed Mr. Haith on probation for one year. The Commission found that Mr. Haith had assisted a buyer and seller in adjusting certain amounts paid by the seller without notifying the lender and the dosing attorney and that he had failed to prepare a new dosing statement reflecting the adjustments.

JAMES R. HANRATTY (Carolina Beach) -By Consent, the Commission suspended Mr. Hanratty's salesman's license for two years effective March 15, 1988. Two months of the suspension are to be active and two years on probation. The Commission found that Mr. Hanratty had represented to prospective time share purchasers that they would receive a Savings Bond for attending a sales presentation when he knew that the developer of the time share project would be unable to provide such bonds.

THOMAS E. McFADDEN (Greensboro) -By Consent, the Commission reprimanded Mr. McFadden for failing as broker-in-charge of a real estate office to adequately supervise salesmen working at such office.

MALCOLM A. MINTER (Charlotte) - The Commission suspended Mr. Minter's broker's license for eighteen months effective April 1, 1988. The Commission then suspended its Order and placed Mr. Minter on probation for eighteen months. The Commission found that Mr. Minter had improperly conducted a real estate dosing in that he permitted the use of unlawfully prepared legal documents, he attempted to explain to the parties their legal rights under a "contract for deed," and he failed to deliver true and accurate dosing statements to the sellers and buyers.

Mr. Minter, in a separate proceeding, also consented to the imposition of a reprimand for failing to personally and actively supervise two of his salesmen.

GARY W. OWENS (Carolina Beach) - By Consent, the Commission suspended Mr. Owens' broker's license for sixty days effective February 15, 1988. The Commission found that Mr. Owens, while acting as broker-in-charge at a time share project, had failed to adequately supervise salesmen in his employ.

RUBY LEE TUCKER (Fayetteville) - The Commission revoked Ms. Tucker's salesman's license effective April 1, 1988. The Commission found that Ms. Tucker had advised a purchaser to falsely state on applications for home financing for two separate properties that the purchaser would occupy the properties as his residence. The Commission also found that Ms. Tucker did not fully disclose all of her transactions to her supervising broker-in-charge and that she had failed to remit down payment funds to a purchaser.

GENERAL WILLIAM WASHINGTON (Greensboro) - By Consent, the Commission suspended Mr. Washington's salesman's license for ninety days effective June 1, 1988. The Commission then suspended its Order and placed Mr. Washington on probation for one year. The Commission found that Mr. Washington had negligently failed to deliver a copy of a home inspection report to the purchasers.

RICHARD E. WATSON (Greensboro) - The Commission revoked Mr. Watson's broker's license effective. The Commission found that Mr. Watson had falsely represented to a purchaser that the purchaser's contract had been terminated and that the purchaser's earnest money would be refunded. The Commission also found that, in an attempt to coerce the purchasers into dosing the transaction, he had failed to disclose the true fans concerning the condition of the property by distorting the results of an inspection of the property, which he had arranged, by the High Point Inspection Department. In addition, the Commission found that Mr. Watson, during a hearing before the Commission on the allegations of misconduct, caused altered audio tapes of conversations between himself and the purchaser to be played in an attempt to deceive the Commission. Mr. Watson appealed the Commission's decision to the Wake County Superior Court which reversed the Commission's Order. The North Carolina Court of Appeals on December 1, 1987 reversed the judgment of the Superior Court, and the North Carolina Supreme Court on February 27, 1988 denied Mr. Watson's Petition for Certiorari.