licensed General Contractor in North
Carolina.
Knight is currently a director of the
National Association of REALTORS ® ,
a past president and member of the
board of directors of the North Caro-lina
Association of REALTORS ® , and
past president of the Chapel Hill Board
Jordan and her husband, Max, a
REALTOR ® and contractor, reside in
Lincolnton and have one son, Jason, a
student at the University of North Car-olina
at Charlotte and a REALTOR ® . □
REAL ESTATE BULLETIN
N o r t h C a r o l i n a R e a l E s t a t e C o m m i s s i o n
V o l u m e 4 0 • O c t o b e r 2 0 0 9 • N u m b e r 2
NORTRTH CACARAROROLINANA REREREALAL ESTATATATATE COMMISSION
ESSE QUAUAMAM VIDERI
REAL ESTATE LICENSE RENEWAL/ REINSTATEMENT
License Number
Licensee’s Signature Executive Director
Pocket Card
Gets New Look
Page 6
overnor Beverly E. Perdue has
appointed Everett “ Vic” Knight
of Raleigh and Alice L. Mosteller of
Lake Junaluska to the Real Estate Com-mission,
it was announced by Phillip T.
Fisher, Executive Director.
Knight, a licensed broker since
1984, is also a certifi ed appraiser and
the owner of Chapel Hill Appraisals and
Consultants. He previously was broker/
owner of Century 21 Vic Knight Realty
in Hillsborough for 10 years.
A native of Burlington, Knight grad-uated
from North Carolina State Uni-versity
with a BS in Civil Engineering
and worked internationally for Bechtel
Corporation for several years. He was a
New Commission Web Site Address: www. ncrec. gov
arsha H. Jordan of Lincolnton has been elected Chairman of the
North Carolina Real Estate Commission for the 2009- 2010 term be-ginning
August 1, it was announced by Phillip T. Fisher, Executive Director.
A graduate of the University of Vir-ginia
( MWC), Jordan entered the real
estate business in 1986.
She is owner of Apple Realty in Lin-colnton,
a Graduate of the REALTOR ®
Institute and holds the Certifi ed Resi-dential
Broker, Certifi ed Residential
Specialist, and GREEN designations.
Appointed to the Commission in
1999, Jordan is past president of the
North Carolina Real Estate Education
Foundation and past president and 2001
REALTOR ® of the Year of the Lincoln
County Board of REALTORS ® .
Active in community aff airs, she
is a former director of the Lincolnton
Chamber of Commerce, past president
for Downtown Development, and past
president of the Lincolnton Rotary
Club.
Real Estate Commission member
and former Chairman Wanda J. Proffi tt
of Burnsville has resigned.
A member of the Commission since
1994, Proffi tt was appointed by Gover-nor
Perdue to the State Board of Trans-portation.
Joe L. Hodge, Jr., of Raleigh, a mem-ber
since 2006 and Vice Chairman, has
also left the Commission.
Commission members thanked Prof-fi
tt and Hodge for their leadership and
valued service to North Carolina. □
Commission Chairman Marsha H. Jor-dan
received the Oath of Offi ce from
Lieutenant Governor Walter H. Dalton.
ollowing is a summary of pro-posed
Commission rule changes
which, if approved, would become ef-fective
July 1, 2010:
• Require retention of trust account
and transaction records for a period of
fi ve years instead of three as the current
rules require.
• Add questions to the Residential
Property Disclosure Form for home
sellers to disclose whether their proper-ties
are located within one mile of the
boundary of certain military facilities
and to disclose noise, air traffi c, vibra-
( See Rules, page 6)
( See Appointed, page 7)
Knight Mosteller
2 Real Estate Bulletin October 2009
REAL ESTATE BULLETIN
Published as a service to real estate licensees to promote
a better understanding of the Real Estate License Law and
Commission rules, and profi ciency in real estate practice.
The articles published herein shall not be reprinted or repro-duced
in any other publication without specifi c reference
being made to their original publication in the Commission’s
Real Estate Bulletin.
NORTH CAROLINA REAL ESTATE COMMISSION
1313 Navaho Drive
P. O. Box 17100
Raleigh, North Carolina 27619- 7100
Phone ( 919) 875- 3700
www. ncrec. gov
Beverly E. Perdue, Governor
COMMISSION MEMBERS
Marsha H. Jordan, Chairman Lincolnton
Melvin L. Alston Greensboro
Benjamin Cone, III Charlotte
Everett “ Vic” Knight Raleigh
Jeffery J. Malarney Manteo
Jerry A. Mannen, Jr. Wilmington
Alice L. Mosteller Lake Junaluska
S. R. Rudd, Jr. Oak Island
M. Rick Watts Fayetteville
Phillip T. Fisher
Executive Director
ADMINISTRATION
Mary Frances Whitley Director
Paula L. Ricard Financial Offi cer
Vickie R. Crouse Network Administrator
Wendy C. Harper Administrative Offi cer
Robert L. Forshaw Publications Offi cer
Brenda H. Badger Information Services Offi cer
AUDITS AND INVESTIGATIONS
Emmet R. Wood Director
Michael B. Gray Chief Auditor/ Investigator
Gary R. Caddell Deputy Chief Auditor/
Investigator
Jennifer K. Boger Sr. Auditor/ Investigator
Rebecca S. Wilkins Sr. Auditor/ Investigator
William F. Dowd Sr. Auditor/ Investigator
Bart H. Allen Auditor/ Investigator
M. Spier Holloman Auditor/ Investigator
Pamela M. Vesper Auditor/ Investigator
EDUCATION AND LICENSING
Larry A. Outlaw Director
Anita R. Burt Education/ Examination Offi cer
Pamela R. Rorie Continuing Education Offi cer
Patricia A. Moylan Legal Education Offi cer
Lisa R. McQuillen Education/ Licensing Offi cer
Matthew A. Wentz License Application Analyst
LEGAL SERVICES
Thomas R. Miller Legal Counsel, Director; Special
Deputy Attorney General
Miriam J. Baer Assistant Director, Legal
Counsel
Janet B. Thoren Chief Deputy Legal Counsel
Charlene D. Moody Deputy Legal Counsel
Stephen L. Fussell Sr. Consumer Protection Offi cer
Joan H. Floyd Sr. Consumer Protection Offi cer
Carolyn A. Haase Consumer Protection Offi cer
Peter B. Myers Information Offi cer
Elizabeth W. Penney Information Offi cer
Jean A. Wolinski- Hobbs Information Offi cer
Editor- In- Chief
Phillip T. Fisher
Editor
Robert L. Forshaw
To request a speaker from the
Commission, please submit the
“ Request for Program Presenter”
form available on the Commission’s
Web site, www. ncrec. gov.
taff
S U pdate
People Appearances
Th omas R. Miller, Special Deputy
Attorney General, Director of Legal
Services and Legal Counsel, spoke to
the Cleveland County Association of
REALTORS ® on Fair Housing issues.
Janet B. Th oren, Chief Deputy
Legal Counsel, spoke to the Advisory
Board of the Bank Secrecy Act Coali-tion
on issues related to mortgage fraud.
Patricia A. Moylan, Legal Educa-tion
Offi cer, addressed the Education
Advisory Group of the Charlotte Re-gional
REALTORS ® Association on
rules regarding record maintenance,
trust account and reporting require-ments,
and broker- in- charge responsi-bilities.
Betsey W. Penney, Information Of-fi
cer, spoke to the Burlington- Alamance
County Association of REALTORS ® and
the Pamlico County Board of REAL-TORS
® .
Jean Wolinski- Hobbs, Informa-tion
Offi cer, spoke to the Harnett Area
Board of REALTORS ® and was a pre-senter
for a Property Management Up-date
program at Wilmington for the
North Carolina Association of REAL-TORS
® .
Peter B. Myers has assumed the po-sition
of Information Offi cer in the Le-gal
Services Division.
Myers is a graduate
of Appalachian State
University with a BS
in Real Estate. Prior
to joining the Com-mission,
he was a real
estate broker with York Simpson Un-derwood
in Raleigh and was owner of
Myers Appraisal Company.
g
Mo
Ui
t
m
Real Estate Bulletin October 2009 3
November 4
December 9
January 13
All meetings, unless otherwise noted, begin at 9
a. m. and are held in Raleigh in the Commission’s
Conference Room at 1313 Navaho Drive
( 27609). Occasionally, circumstances necessitate
C alendar changes in meeting times and locations.
C ommissionon
COURSE SCHEDULES
This schedule provides locations, dates, and times for the courses indicated through February, 2010.
Register online at the Commission’s Web site, www. ncrec. gov.
Broker- in- Charge Course
Two- days. Day one, 1- 5 p. m.; Day two, 8: 30- 5: 30 p. m.)
Basic Trust Account Procedures Course
Charlotte December 8, 9 a. m. - 1 p. m. Holiday Inn Airport
Raleigh November 3, 1 - 5 p. m. McKimmon Conference Center
Asheville December 2, 3
February 23, 24
Holiday Inn East/ Blue Ridge Parkway
Charlotte October 26, 27
December 7, 8
January 26, 27
Holiday Inn Airport
Greensboro November 17, 18
February 16- 17
Clarion Hotel ( formerly the Radisson)
Raleigh November 9, 10
December 14, 15
McKimmon Conference Center
Wilmington January 20- 21 Coast Line Convention Center
Confi rm dates and times at the Commission Web site.
Scholarship winners ( seated, l. to r.) Nigel J. Terry, Dorothy Boudreaux Hays, and Th om-as
R. Alexander hold plaques received at the August awards presentation. Th ey are joined
by Commission members ( l. to r.) Jeff rey J. Malarney, Benjamin Cone, III, Joe L. Hodge,
Jr., Chairman Marsha H. Jordan, Melvin L. “ Skip” Alston, Jerry A. Mannen, Jr., M.
Rick Watts, and S. R. “ Buddy” Rudd, Jr.
he Real Estate Commission
recognized the outstanding aca-demic
achievement of three brokers in
REALTORS �� Institute courses.
Nigel Terry of Raleigh received the
Joe Schweidler Memorial Scholarship
and Th omas Alexander of Havelock,
the Blanton Little Memorial Scholarship.
Both Schweidler and Little were former
Executive Directors of the Commis-sion.
Dorothy Boudreaux Hays of Mur-phy
received the Phillip T. Fisher Schol-arship.
Fisher is currently executive di-rector.
Th e recipients were selected by the
North Carolina Real Estate Education-al
Foundation. □
4 Real Estate Bulletin October 2009
North Carolina Partners with Federal
Agencies in Builder Fraud Case,
Nets $ 50 Million National Settlement
( Th e following is excerpted from ARELLO ® Boundaries, the newsletter to members of the
Association of Real Estate License Law Offi cials.)
T he North Carolina Real Estate Commission recently joined numerous
federal agencies and the state's Commissioner of Banks in announcing
the resolution of an inter- agency investigation of Beazer Homes, a home build-ing
company based in Atlanta, Georgia,
with operations in at least 21 states, and its
wholly- owned subsidiary, Beazer Mortgage
Corporation.
In a criminal Bill of Information fi led
along with a Deferred Prosecution Agree-ment
resolving the case, the United States
Attorney for the Western District of North
Carolina ( Charlotte Division) charged the company with engaging in massive
and complicated schemes that included discount point fraud, down payment as-sistance
fraud, HUD- licensing fraud and mortgage loan stated- income fraud.
In the Deferred Prosecution Agreement executed by the United States Attor-ney
and Beazer, the company agreed to pay up to $ 50 million dollars in restitu-tion
over several years.
The announcement of the investigation and resolution of the case included
public statements by offi cials of the many agencies involved in the investigation
including U. S. Attorney Edward R. Ryan, HUD Secretary Shaun Donovan, the
North Carolina Deputy Commissioner of Banks and North Carolina Real Estate
Commission Deputy Chief Counsel Janet Thoren.
Thoren said, “ The North Carolina Real Estate Commission is committed to
the fi ght against mortgage fraud. We are pleased that we were able to partner
with the U. S. Attorney's Offi ce in the Western District and each of the other agen-cies
involved in this complicated and detailed investigation and work together to
bring about a result that includes restitution to so many consumer victims, both
in North Carolina and nationwide.” □
he Broker- in- Charge Guide,
a valuable reference and re-source
for the management of North
Carolina real estate offi ces, has been
updated and expanded.
Th is 194- page volume features a
lengthier discus-sion
of licensee
o m p e n s a t i o n
with several pages
of examples, plus
updating of the
requirements for
maintaining and
reinstating BIC eligibility under the
new rules eff ective July 1, 2009.
Orders may be placed for the
book either online from the Publi-cations
page or with printed forms
available online or in this issue of the
Bulletin to mail or fax.
It is recommended that BICs
with editions of the Guide dated
2006 or older ( see date at bottom of
title page) purchase the newly up-dated
volume. Th e Guide was fi rst
published in November 2004. □
Allan R. Dameron Legal Internship
Lindsey E. Wakely of Raleigh, a second year law student at the University of North Caro-lina,
was the Allan R. Dameron Legal Intern for 2009. With her at the July Commission
meeting are ( l. to r.) Commission members Jeff rey J. Malarney, S. R. “ Buddy” Rudd, Jr.,
M. Rick Watts, Chairman Melvin L. “ Skip” Alston, Vice Chair Marsha H. Jordan, Ben-jamin
Cone, III, Wanda J. Proffi tt, Jerry A. Mannen, Jr., and Joe L. Hodge, Jr. Th e award
is given annually in memory of and tribute to former Commission Chairman Dameron
for his dedicated service in protecting the interests of North Carolina real estate consumers.
l
s
c
wo
ur
m
􀀡 􀀀 􀁒 􀁅 􀁆 􀁅 􀁒 􀁅 􀁎 􀁃 􀁅 􀀀 􀁐 􀁕 􀁂 􀁌 􀁉 􀁃 􀁁 􀁔 􀁉 􀁏 􀁎 􀀀 􀁏 􀁆 􀀀 􀁔 􀁈 􀁅 􀀀 􀀮 􀁏 􀁒 􀁔 􀁈 􀀀 􀀣 􀁁 􀁒 􀁏 􀁌 􀁉 􀁎 􀁁 􀀀 􀀲 􀁅 􀁁 􀁌 􀀀 􀀥 􀁓 􀁔 􀁁 􀁔 􀁅 􀀀 􀀣 􀁏 􀁍 􀁍 􀁉 􀁓 􀁓 􀁉 􀁏 􀁎 􀀀
􀁆 􀁏 􀁒 􀀀 􀀢 􀁒 􀁏 􀁋 􀁅 􀁒 􀁓 􀀍 􀁉 􀁎 􀀍 􀀣 􀁈 􀁁 􀁒 􀁇 􀁅 􀀀 􀁏 􀁆 􀀀 􀁒 􀁅 􀁁 􀁌 􀀀 􀁅 􀁓 􀁔 􀁁 􀁔 􀁅 􀀀 􀁏 􀁆 􀁬 􀁃 􀁅 􀁓 􀀎
􀀢 􀁒 􀁏 􀁋 􀁅 􀁒 􀀍 􀁉 􀁎 􀀍 􀀣 􀁈 􀁁 �� 􀁇 􀁅 􀀀 􀀧 􀁕 􀁉 􀁄 􀁅
Real Estate Bulletin October 2009 5
Course instructors approved ( for
a total of 190)
• 41 Broker- in- Charge Course
sessions conducted for 2,027 li-censees
Audits/ Investigations
• 152 fi eld investigations completed
• 196 trust accounts examined
• 373 persons interviewed
• 13 trust account sessions conducted for
310 students
• 1,848 students instructed for trust ac-count
portion of BIC course
Legal
• 1,037 case ( complaint) fi les opened
and 1,101 closed
• 33 licensees reprimanded
• 70 licenses suspended
• 70 licenses revoked
• 20 licenses surrendered
• 95 cases with conditional remedies □
• 209 expired, surrendered and suspended
licenses reinstated
• 2,243 Certifi cates of License History
issued
• 216 license applications reviewed by
Commission for character issues
• 106 license applicant conferences
conducted
Education
• 7 new private real estate school licens-es
issued and 66 renewed
• 27 real estate instructors approved ( a
19% increase) and 109 renewed
• 83 new continuing education elective
courses approved ( for a total of 437
courses)
• 28 new continuing education sponsors
approved ( for a total of 231)
• 13 new continuing education Update
T he statistics here generally
refl ect the activities of the
Real Estate Commission during the
period from May 1, 2008 to April
30, 2009.
Contact
• 246,609 telephone calls
• 1.5 million+ Web site “ hits”
Publications
• 640,000+ publications distributed to
brokers, consumers, applicants
Technology
• 8,645 student rosters electronically
processed for CE courses and 859 for
postlicensing courses
Licensing
• 457,468 license records changed
• 5,663 applications processed for li-censes
by examination
• 5,273+ license examinations admin-istered
• 2,993 licenses by examination issued
• 339 licenses issued by reciprocity
• 1,051 fi rm licenses issued
New Commission Web Site Address: www. ncrec. gov
here is a school of thought
that it is not necessary to
obtain a current survey when pur-chasing
real estate-- that title insurance
and affi davits from sellers suffi ciently
protect the purchaser’s interests or that
the purchaser can simply rely upon a
previous survey. However, real estate
agents should be aware that purchas-ers
face potential problems typically re-ferred
to as “ matters of survey” when a
current fi eld survey of property is not
performed.
Matters of survey relate to anything
that could negatively aff ect the use of
property being purchased. Th ese in-clude,
encroachments across property
lines or building restriction lines; fenc-es/
walls, landscaping features, wells,
swimming pool decks; the location of
utilities, access ways, etc., relative to
easements, property lines or buildings;
the existence of fl ood zones; and other
similar matters.
It is possible that matters of sur-vey
may be covered in title insurance
policies. But coverage that protects the
purchaser= s interests is unlikely to be
included unless a survey is performed
prior to issuance of the policy. ALender= s
policies@ may cover matters of survey
without requiring a current survey, but
they do not protect the purchaser. Th e
risk associated with lenders= policies is
often acceptable to the title insurer be-cause
claims from a lender are not likely
to occur until the purchaser defaults on
the loan.
From Th e North Carolina Society of Surveyors, Inc.
( Reprinted from the March 2004 Real Estate Bulletin)
In recent years, it has become
popular to have the seller sign an
affi davit eff ectively guaranteeing
that no matters of survey negatively af-fect
the property. However, in doing so,
the seller may be unwittingly accepting
some unwarranted risks of liability. Th e
buyer may also be tempted to simply
rely upon a survey document from a
previous transaction, but such survey
may not contemplate changes to the
property since the earlier survey was
performed.
Many people choose not to obtain
a current survey because they believe it
will delay closing the transaction. Th is
may be true if it is not ordered from the
surveyor until closing of the transaction
is assured. However, if the purchaser de-cides
that a current survey is desired, it
can be ordered early enough so as not to
delay the closing date.
An informed purchaser knows that
an accurate, current survey will provide
peace of mind that cannot be obtained
from any other source. □
• s
ce
6 Real Estate Bulletin October 2009
tions, lights and other impacts from
nearby military facilities;
• Allow postponement and comple-tion
of continuing education, Broker-in-
Charge, and postlicensing courses,
and the payment of license renewal fees
for individuals licensed as brokers and
approved as instructors who are also
members of the United States armed
forces who are serving in combat or in
presidentially- declared disaster areas.
• Clarify when and under what cir-cumstances
students in the Broker- in-
Charge Course and in all continuing
education courses may be absent during
the scheduled classroom hours and still
receive continuing education credit for
attending the course.
A public hearing for comments on
the proposed rule changes will be held
at 9: 00 a. m., February 10, 2010 in the
Conference Room of the Commission’s
offi ce. □
he pocket card you receive with your real estate license has been rede-signed
to be more useful and better protected. Issuance of the new design
began in June with renewals following depletion of existing card inventory.
As shown, the card has a cover to shield the surface containing your name,
license number and signature. Kept closed, it will prevent smudging.
The opposite side of the cover contains Commission contact information for
easy access along with a continuing education deadline reminder. □
General Contact Information
• Information Services, Ext 772
• Licensing/ Education, Ext 776
• Legal Division, Ext 131
• Audits and Investigations, Ext 717
Reminders
• Continuing Education Deadline: June 10
• Failure to renew will change license status and
any BIC designation.
North Carolina Real Estate Commission
P. O. Box      • Raleigh, NC      -    
(    )    -     • ncrec. gov
NORTH CAROLINA
REAL ESTATE LICENSE RENEWAL/ REINSTATEMENT
License Number
Licensee’s Signature Executive Director
Inside cover
By Charlene D. Moody
Deputy Legal Counsel
he Real Estate Commission
often gets calls from licensees
and homeowners seeking alterna-tive
ways to bring about sales. One
such method suggested by callers is
to raffl e a home. The seller would sell
raffl e tickets, the winning ticket- holder
would receive the property, and the
seller would receive the proceeds.
In the past, the answer was clear
that under North Carolina law, no real
estate could be offered as a raffl e
prize under any circumstance. How-ever,
in May 2009, the N. C. General
Assembly amended N. C. G. S. § 14-
309.15 to allow real property to be of-fered
as a prize in a raffl e by certain
organizations.
The maximum appraised value
of the real property to be raffl ed is
$ 500,000 for any one prize and the
( Continued from page 1)
total appraised value of all real estate
prizes offered by one nonprofi t orga-nization
may not exceed $ 500,000 in
any one calendar year.
Licensees must note that the stat-ute
authorizes only nonprofi t organi-zations
or government entities to con-duct
raffl es.
Sellers might ask if they would
qualify if they donated a portion of the
raffl e proceeds to a charity. However,
the statute provides that the proceeds
of the raffl e may not be used to com-pensate
any person to conduct a raf-fl
e. The Commission, therefore, takes
the position that the seller may not re-ceive
any part of the raffl e proceeds
nor may a licensee receive any fee or
commission from the raffl e proceeds.
A person conducting a raffl e in vi-olation
of N. C. G. S. § 14- 309.15 shall
be guilty of a Class 2 misdemeanor.
Additionally, licensees and the
public should be aware that there
may be surprising tax consequences
of winning a real estate raffl e. Licens-ees
should advise any participant in
such a raffl e to consult a tax advisor
concerning the tax consequences to
the winner. For example, in the cur-rent
tax year, the home may be re-portable
as ordinary income, leading
to a large income tax bill.
Further, when the winner decides
to sell the home, he or she may en-counter
a large capital gains tax be-cause
the cost basis for the home
will be the ticket price rather than the
value of the home. □
Real Estate Bulletin October 2009 7
he Commission’s North Caro-lina
Real Estate License Law and
Commission Rules book has been updat-ed
and reprinted.
Th is 92- page book is published as a
convenient, portable reference and con-tains
four sections:
• North Carolina
Real Estate Law
• Commission
Rules
• Trust Account
Guidelines
• License Law and
Rules Comments
Th e Rules and Comments sections
are current with the rule changes ef-fective
July 1. Th e Comments section
serves as a study guide for the initial li-censing
examination. □
of REALTORS ® and the Triangle Mul-tiple
Listing Service. He is a Continuing
Education Instructor for the Real Estate
Commission and the North Carolina
Appraisal Board.
Knight has two daughters, “ Krystle”
Gray Knight, 23, and “ Victoria” Scarlet
Knight, 16, and is a member of Hills-borough
United Church of Christ.
Mosteller is Vice President/ Man-aging
Broker of the Beverly Hanks &
Associates offi ce at Waynesville. She
formerly owned Apple Realty, Inc., in
Waynesville for 18 years until selling it
to Beverly Hanks in 2004.
A graduate of Appalachian State
University, she taught at schools in
North Carolina and Virginia for 20
years. She received her real estate license
in 1984.
She is a former Haywood County
and North Carolina REALTOR ® of the
year and a past president of the Hay-wood
County Board of REALTORS ®
Mosteller has two daughters, Debra
Bryant, a Registered Nurse in Raleigh,
and Paulette Childers, a broker at Bev-erly
Hanks in Waynesville. □
Th e Honorable Sarah Parker, Chief Justice of the North
Carolina Supreme Court, ( center) administered the Oath
of Offi ce to Commission members Everett “ Vic” Knight
and Alice L. Mosteller.
North Carolina Real Estate License
Law and Commission Rules
( Also including Trust Account Guidelines
and Comments on the Law and Rules)
Published by the North Carolina
Real Estate Commission
July 2009
$ 3.00
( Continued from page 1)
s part of the Real Estate Commission’s quality control program for
its approved real estate schools and instructors, it monitors the per-formance
of their students taking the license examination for the fi rst time
within 180 days of course completion. Th e results are periodically reported to
the schools/ instructors and annually reviewed by the Commission. Th e most
recent annual performance record for each school may be found on the Com-mission’s
website.
During the July, 2008- June, 2009 reporting period, 72% of all fi rst- time
candidates passed. Th e Commission congratulates the following schools and
instructors ( which had six or more students tested) for having at least 80% of
their students pass the license examination on their fi rst attempt:
Schools
Allen Tate School of Real Estate, Charlotte; Asheville- Buncombe Commu-nity
College, Asheville/ Madison; Cape Fear Community College, Wilmington; Central Piedmont Community College, Charlotte/ Matthews/ Huntersville;
Coastal Carolina Real Estate Academy, Wilmington; Cumbie Institute of Real
Estate, Asheville; Galloway School of Real Estate, Hayesville/ Murphy; Min-gle
School of Real Estate, Charlotte/ Cornelius; Mitchell Community College,
Statesville/ Mooresville; Superior School of Real Estate, Charlotte/ Concord/ Cor-nelius/
Huntersville
Instructors
Oscar Agurs, Charlotte; Richard Barden, Franklin; Pete Camak, Pine
Knoll Shores; Lowell Dotson, Matthews; Rick Fuller, Greensboro; Bill
Gallagher, Charlotte; Frank Galloway, Andrews; Scott Gibson, Raleigh;
Violet Harrington, Durham; Sandra Hubbard, Kittrell; Carolyn Lambert,
Charlotte; Dwight Lawing, Jr., Parkton; Stephen Lawson, Winston- Salem;
Saundra Martin, Salisbury; Terri Minnis, Wilmington; Brian Pate, Wake
Forest; Laurel Pettys, Wilmington; Rashad Phillips, Charlotte; Bobby
Potts, Asheville; Kevin Sensing, Goldsboro; Tim Terry, Charlotte; Jerry
Th omas, Wrightsville Beach; Glenn Weeks, Holly Springs; Sandy Williams,
Charlotte; Terry Wilson, Huntersville; Ben Wirtz, Iron Station □
8 Real Estate Bulletin October 2009
September 23, 2009
Th e Federal Housing Finance Agency
1700 G Street, NW 4th Floor
Washington, DC 20552
Dear Sir or Madam:
To assist your agency in monitoring and evaluating the eff ectiveness of the Home Valuation Code of Conduct
implemented May 1 by the U. S. Federal Home Loan Mortgage Corporation ( Freddie Mac) and the Federal
National Mortgage Association ( Fannie Mae), the North Carolina Real Estate Commission has directed me to
share with you its observations and experiences with regard to the Code and to respectfully off er its suggestions
for improvement. Th e Real Estate Commission is a governmental agency charged with protecting the interests of
real estate consumers in our State. Th e Commission recognizes and appreciates your eff orts through the Code to
address some of the more egregious abuses visited upon the public by the unscrupulous acts of certain mortgage
lenders. However, like your agency, we have found when adopting rules and implementing new legislation, some
innocent misunderstandings and intentional attempts to exploit ambiguities in them are perhaps unavoidable.
With regard to the Code, prospective homebuyers have complained to us that lenders assert that under “ new rules”
the lenders must order appraisals through appraisal management companies. We have also received complaints from
buyers, sellers and real estate agents that appraisers assigned by such companies to perform the appraisals are not
familiar with or suffi ciently informed about the real estate market where the property is located to make accurate
appraisals. We are, in fact, aware of cases where appraisers have traveled from other states and of cases where appraisers
attempted to perform appraisals without consulting MLS sales data. Further, despite the apparent intent of the Code
to distance lenders from the appraisal process, we have learned that some lenders own or have an ownership interest
in the appraisal management companies they use.
Although the Real Estate Commission does not at this time support a proposed moratorium on the continued
implementation of the Code and we are aware that bulletins and other supplemental information about the Code
have been published, it recommends for your agency’s consideration that the Home Valuation Code of Conduct
itself be amended to:
1. Clarify that lenders need not engage appraisal management companies;
2. Prohibit lenders from engaging appraisal management companies which are owned, controlled by,
or affi liated with the lender;
3. Expressly require lenders to engage, whether directly or indirectly, appraisers who are state- licensed
and that the appraisals performed by such appraisers conform to the minimum requirements of
state laws and rules and the Uniform Standards of Professional Appraisal Practice; and
4. Expressly require appraisers who are engaged to perform appraisals to be familiar with the market
where the property is located and to have access to and use the best available data for that market
in performing the appraisal.
We hope our suggestions are received in the helpful spirit in which they are intended and that you will you not
hesitate to contact our offi ce if we can be of any assistance to your agency with this or any related matter.
Sincerely yours,
North Carolina Real Estate Commission
Editor’s Note: Th e recently implemented Home Valuation Code of Conduct is intended to enhance the independence and
accuracy of the home appraisal process and provide added protections for homebuyers, mortgage investors and the housing
market. In response to complaints from real estate consumers and brokers regarding the Code, the Real Estate Commission has
announced its support for legislation requiring appraisal management companies operating in North Carolina to be regulated
by the North Carolina Appraisal Board, and it directed that the following letter be sent to the Federal Housing Finance Agency.
Home Valuation Code of Conduct
Real Estate Bulletin October 2009 9
How To Order:
Online: www. ncrec. gov.
Mail: NC Real Estate Commission, ATTN: Publications,
P. O. Box 17100, Raleigh, NC 27619- 7100
Fax: 1- 919- 877- 4227
This form for free
publications only.
Free Publications Quantity
Questions and Answers on:
Fair Housing
Tenant Security Deposits
Condos and Townhouses
Residential Subdivisions and Planned
Communities
Purchasing Coastal Real Estate
in North Carolina
Renting Residential Real Estate
Trato Con Agentes de Bienes Raíces
( Working With Real Estate Agents)
Preguntas y Respuestas sobre:
( Questions and Answers On:)
Vivienda Justa ( Fair Housing)
El Depósito de Seguridad del
Inquilino ( Tenant Security Deposits)
Alquiler de Inmuebles para
Viviendo ( Renting Residential Real Estate)
Real Estate Licensing in North Carolina
( Contains license application)
Residential Property Disclosure
Statement ( Available online)
NAME _____________________________________
ADDRESS __________________________________
CITY/ STATE/ ZIP _____________________________
Telephone______________ Email_______________
Please allow 7 days from
receipt of order for delivery.
How To Order:
Mail or fax this form. Credit card: MasterCard or Visa only.
Please do not remit cash.
Online: www. ncrec. gov
Select Publications on the Home page.
Fax: 1- 866- 867- 3746
Mail to: Commission Publications, P. O. Box 28151,
Raleigh, NC 27611
This form for purchasing
publications only.
NAME ___________________________________________
ADDRESS ________________________________________
CITY/ STATE/ ZIP ___________________________________
Telephone _________________ Email __________________
Credit card orders must be a minimum of $ 1.00.
Signature: __________________________________________
Please allow 7 days from receipt of payment for delivery.
MasterCard Visa
Expiration Date
Purchase Publications Quantity Totals
Residential Square Footage
Guidelines
($. 65 per copy) $
Working With Real Estate Agents
($. 25 per copy) $
Questions and Answers on:
Home Inspections
($. 25 per copy) $
Earnest Money Deposts
($. 25 per copy) $
Real Estate Closings
($. 25 per copy) $
Offer and Acceptance
($. 25 per copy) $
Owning Vacation Rental
Property
($. 25 per copy) $
Broker- in- Charge Guide
($ 10 per copy) $
North Carolina Real Estate
License Law and Commission
Rules
($ 3.00 per copy) $
Real Estate Agent Safety Guide
($. 25 per copy) $
Amount Enclosed $
10 Real Estate Bulletin October 2009
Order Form
NORTH CAROLINA REAL ESTATE MANUAL
NAME
ADDRESS
Street ( NOT P. O. BOX)
CITY/ STATE/ ZIP
Telephone Email
Single Manual @ $ 44.00* ( incl. Tax, Shipping) $ 44.00
Additional Manuals @ $ 39.00* each ( incl. Tax, Shipping) X $
Quantity
TOTAL $
MasterCard Visa
Exp Date
Signature:
* Manual sales price is $ 34.95 plus $ 2.45 sales tax plus shipping. Please allow 7 days from receipt of payment for delivery.
2008- 2009 Edition
NORTH CAROLINA REAL ESTATE MANUAL
Th e North Carolina Real Estate Manual, published by the Real Estate Commission, is a comprehensive reference
addressing real estate law and brokerage practice, the North Carolina Real Estate License Law and Commission rules.
It serves as the authorized textbook for the real estate broker postlicensing courses and is highly recommended for
licensees, attorneys, instructors and anyone else engaged or interested in real estate law and brokerage practice.
HOW TO ORDER:
ONLINE
Go to the Commission’s Web site, www. ncrec. gov, select “ Publications/ Bulletin” and click
on NC Real Estate Manual to link directly with the book distributor. Follow the instructions
for ordering using your MasterCard or Visa credit card.
BY MAIL OR FAX
Mail or fax an order form with payment. For credit card payments, only MasterCard
and Visa are accepted. For checks, please send only cashier’s or certifi ed check or money
order, payable to: North Carolina Real Estate Manual. ( Th e Manual sales price is $ 34.95
plus sales tax and shipping.)
MAILING ADDRESS:
North Carolina Real Estate Manual
P. O. BOX 28151
RALEIGH, NC 27611
EMAIL:
manual@ cesmail. com
FAX:
1- 866- 867- 3746
CUSTOMER SERVICE:
1- 866- 833- 5785
NORTH CAROLINA
REAL ESTATE MANUAL
2008- 2009 Edition
Patrick K. Hetrick Larry A. Outlaw Patricia A. Moylan
Published By The North Carolina Real Estate Commission
Real Estate Bulletin October 2009 11
eff ective September 9, 2009. Th e Com-mission
found that Mr. Blake, a broker-in-
charge of a sole proprietorship, par-ticipated
in mortgage fraud schemes in
which he prepared false and infl ated ap-praisals
of certain parcels of real prop-erty
that were submitted to mortgage
lenders who relied on his appraisals
to determine the values of certain real
properties which would be collateral for
mortgage loans.
JOHN MICHAEL BURTON ( Ca-tawba)
– Th e Commission accepted
the voluntary surrender of the broker
license of Mr. Burton for a period of
fi ve years eff ective August 13, 2009.
Th e Commission dismissed without
prejudice allegations that Mr. Burton
violated provisions of the Real Estate
License Law and Commission rules.
Mr. Burton neither admitted nor de-nied
misconduct.
MARTHA LILIANA CAM-POVERDE
( Charlotte) – Th e Com-mission
accepted the voluntary surren-der
of the broker license of Ms. Cam-poverde
eff ective May 28, 2009. Th e
Commission dismissed without preju-dice
allegations that Ms. Campoverde
violated provisions of the Real Estate
License Law and Commission rules.
Ms. Campoverde neither admitted nor
denied misconduct.
DIANNE M. CARTER ( Mat-thews)
– Th e Commission permanent-ly
revoked the broker license of Ms.
Carter eff ective August 18, 2009. Th e
Commission found that Ms. Carter,
as broker- in- charge, principal broker,
and/ or treasurer of various real estate
brokerage fi rms, failed to account for
agency agreement with any party. BDF
Realty released the option money from
its trust account to the would- be op-tionor,
but did not have an option con-tract
executed by the parties. Th e Com-mission
noted that BDF Realty, upon
fi rst request of refund by the would- be
optionee, refunded the would- be op-tionee
$ 950.
BEAZER/ SQUIRES REALTY, INC.
ET. AL. ( Charlotte) – By Consent, the
Commission revoked the fi rm license
of Beazer/ Squires Realty, Inc., eff ective
July 13, 2009. Th e Commission found
that Beazer/ Squires Realty, Inc. sold new
construction homes to consumers and
that its parent company, Beazer Homes
USA, was charged in the U. S. District
Court of the Western District of North
Carolina with one count of Mortgage
Fraud Conspiracy and one count of Ac-counting
Fraud Conspiracy for transac-tions
that occurred in or about 2000
through 2007.
HENRY C. BLAKE, JR. ( Riegel-wood)
– By Consent, the Commission
revoked the broker license of Mr. Blake
Penalties for violations of the Real Estate Law and Commission
rules 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.
D isciplinary
A ction
y
RHONDA KAE AXHOJ ( Wax-haw)
– By Consent, the Commission
reprimanded Ms. Axhoj eff ective Oc-tober
1, 2009. Th e Commission found
that Ms. Axhoj, broker- in- charge of her
sole proprietorship, sold a property she
owned and signed an incorrect closing
statement indicating the buyer paid a
$ 2,000 earnest money deposit to her,
when the buyer had not, in the belief
that the buyer would pay the deposit
after closing. Ms. Axhoj attempted to
collect the $ 2,000 after closing but the
buyer did not pay it.
JACOB O. BALOGUN ( Fayette-ville)
– By Consent, the Commission
suspended the broker license of Mr. Ba-logun
for a period of one year eff ective
May 1, 2009. One month of the sus-pension
was active with the remainder
stayed for a probationary period of 11
months. Th e Commission found that
the N. C. State Board of Certifi ed Pub-lic
Accountant Examiners revoked Mr.
Balogun’s CPA license in 2008, the re-vocation
stemming from a violation
of a six- month suspension of his CPA
license in 2006, and that Mr. Balogun
had failed to inform the Commission of
either disciplinary action.
BDF REALTY, INC. ( Charlotte)
– By Consent, the Commission sus-pended
the fi rm license of BDF Realty
for a period of one year eff ective June
10, 2008. Th irty days of the suspension
were active with the remainder stayed
for a probationary period of one year.
Th e Commission found that BDF Real-ty
received $ 950 which was intended to
be used as option money. Th e Commis-sion
further found that BDF Realty had
a verbal property management agree-ment
with the owner, but no written ( See Disciplinary Action, page 12)
Write
LicenseYour
Number
On All
Contracts
Disclosures
and
12 Real Estate Bulletin October 2009
Ms. Feeley certifi ed in July 2007 that
she had four years full time, active expe-rience
as a real estate broker or salesper-son,
thereby causing the Commission
to remove her from provisional license
status, when in fact her license had only
been active for a total of only two years
and 11 months. Th e Commission noted
that prior to activation of her license she
had worked in home sales for a builder
developer in a capacity exempt from
licensure. Ms. Feeley’s license was re-turned
to provisional status until June
10, 2009, by which time she had com-pleted
a 30- hour post- licensing course.
RONALD S. FERRELL ( Corne-lius)
– By Consent, the Commission
suspended the broker license of Mr.
Ferrell for a period of two years eff ective
May 1, 2009. Th irty days of the sus-pension
were active with the remainder
stayed for two years. Th e Commission
found that Mr. Ferrell, a certifi ed ap-praiser
from 2001 to 2004, surrendered
his appraisal certifi cate to the North
Carolina Appraisal Board in a consen-sual
arrangement with the Board in the
face of allegations that he had violated
provisions of the appraiser licensing
statutes and the Uniform Standards of
Professional Appraisal Practice.
BRETT DAVID FURNISS ( Char-lotte)
– By Consent, the Commission
suspended the broker license of Mr.
Furniss for a period of one year eff ective
June 10, 2009. Th irty days of the sus-pension
were active with the remainder
stayed for a probationary period of one
year. Th e Commission found that Mr.
Furniss, broker- in- charge of a real estate
brokerage fi rm, received $ 950 intended
as option money. Th e Commission fur-ther
found that Mr. Furniss had a verbal
property management agreement with
the owner, but no written agency agree-ment
with any party. Mr. Furniss re-leased
the option money from his trust
account to the would- be optionor, but
did not have an option contract execut-ed
by the parties. Th e Commission not-ed
that Mr. Furniss, upon fi rst request
or to remit monies coming into her
possession which belonged to another.
Th e Commission also found that Ms.
Carter scheduled withdrawals to herself
without authorization from her princi-pal,
failed to turn over rental proceeds,
failed to maintain rental proceeds in a
trust account, and failed to make her
trust account records available for in-spection
by the Commission.
BECKY PERRY CODER ( Char-lotte)
– Th e Commission accepted the
permanent voluntary surrender of the
broker license of Ms. Coder eff ective
October 1, 2009. Th e Commission
dismissed without prejudice allegations
that Ms. Coder had violated the Real
Estate Law and Commission rules. Ms.
Coder neither admitted nor denied
misconduct.
CREATIVE BUYERS NET-WORK,
LLC ( Charlotte) – By Con-sent,
the Commission reprimanded
Creative Buyers Network eff ective July
1, 2009. Th e Commission found that
Creative Buyers Network, a licensed
real estate brokerage fi rm, listed a home
threatened with foreclosure, and that
its broker- in- charge convinced an ac-quaintance
to invest $ 15,000 to bring
the mortgage payments current and
make improvements on the property.
Th e Commission further found that the
broker- in- charge fi lled out a promisso-ry
note between the seller and investor
and included Creative Buyers Network
as trustee but that Creative Buyers Net-work
failed to deposit the funds into its
trust account.
JOSEPH F. DAVIS, JR. ( Burling-ton)
– By Consent, the Commission
reprimanded Mr. Davis eff ective June 1,
2009. Th e Commission found that Mr.
Davis, broker- in- charge of a real estate
brokerage fi rm, failed to maintain his
trust account records as required by the
Real Estate License Law and Commis-sion
rules. Th e Commission noted that
Mr. Davis corrected all the violations
noted with respect to his trust account
records, there were no shortages, and no
consumers were harmed as a result.
MARTIN J. EVANS ( Hampstead)
– By Consent, the Commission sus-pended
the broker license of Mr. Ev-ans
for a period of three years eff ective
November 1, 2008. Six months of the
suspension were active with the remain-der
stayed for a probationary period of
30 months on certain conditions. Th e
Commission found that Mr. Evans,
qualifying broker and broker- in- charge
of a real estate brokerage fi rm, listed a
personal rental home and lot and adver-tised
it in the MLS as being located in
in a federal fl ood zone, but specifi cally
not a COBRA zone, when in fact it was.
Buyers of the property demolished the
house, intending to build a new home,
and then discovered that the property
was in a COBRA zone and federal fl ood
insurance was not available for a new
structure.
KELLY A. FEELEY ( Charlotte)
– By Consent, the Commission repri-manded
Ms. Feeley eff ective January
14, 2009. Th e Commission found that
Licensees Must
Report Convictions
Commission Rule A. 0113
requires any licensee who is
convicted of a misdemeanor or
felony or who has disciplinary
action taken against him or her
by any occupational licensing
board to file a report with the
Real Estate Commission.
The reporting requirement
includes convictions for driving
while impaired (“ DWI”). The
report must be filed within sixty
( 60) days of the final judgment
or board action.
If you have questions about
this rule, please call the Com-mission’s
Legal Services Division
at 919- 875- 3700 for more infor-mation.
DISCIPLINARY ACTION
( Continued from page 11)
( See Disciplinary Action, page 13)
Real Estate Bulletin October 2009 13
payments from the buyer to the seller
on the undisclosed loan.
JAMES M. MADAGAN ( Char-lotte)
– By Consent, the Commission
revoked the broker license of Mr. Mad-agan
eff ective October 8, 2009. Th e
Commission found that Mr. Madagan,
as a broker with resort real estate devel-oper,
became the custodian of a resort
club new member initiation fees and
failed the hold the money in a trust
account and converted in excess of
$ 700,000 of the money to his own use.
Th e Commission noted that Mr. Mada-gain
entered into an agreement to repay
the money but has failed to make full
restitution as of this date.
PAUL DEVON MAXWELL ( Lew-isville)
– By Consent, the Commis-sion
revoked the broker license of Mr.
Maxwell eff ective October 8, 2009. Th e
Commission found that Mr. Maxwell,
as broker and rental agent for the owner
of a rental property, procured a tenant
and collected $ 1,800 for rent and se-curity
deposit, but failed to deposit the
money into an escrow account, and in-stead
gave the money to his girlfriend.
Th e Commission also found that Mr.
Maxwell, whose license had expired
at the time of the transaction, did not
account for or remit the money to his
landlord client or to the tenant.
FRANK T. MCCOY, JR. ( Albe-marle)
– By Consent, the Commission
suspended the broker license of Mr.
McCoy for a period of six months eff ec-tive
October 1, 2009. Th e Commission
then stayed the suspension for a proba-tionary
period of one year eff ective Oc-tober
1, 2009. Th e Commission found
that Mr. McCoy managed a property
but failed to obtain a written property
management agreement with the owner
or written lease agreement with the ten-ants.
Th e Commission also found that
Mr. McCoy failed to maintain his trust
accounts in compliance with the Li-cense
Law and Commission rules. Th e
Commission noted that Mr. McCoy
pended the fi rm license of DR Horton
for a period of one year eff ective May
1, 2008. Th e Commission then stayed
the suspension for a probationary pe-riod
of two years on certain conditions.
Th e Commission found that former
employees of DR Horton sold 14 new
construction homes to buyers and paid
fees to unlicensed persons and entities
for producing the buyers in these trans-actions.
ELBERTA L. JONES ( Manson)
– By Consent, the Commission sus-pended
the broker license of Ms. Jones
for a period of one year eff ective March
1, 2009. Th ree months of the suspen-sion
were active with the remainder
stayed for a probationary period of
nine months on certain conditions. Th e
Commission found that Ms. Jones, who
listed and sold a property for her seller
clients, witnessed a promissory note ex-ecuted
by the buyer at closing in which
the buyer agreed to repay a loan from
the seller, but did not inform the clos-ing
attorney about the loan, which was
not shown on the closing statement or
otherwise disclosed to the lender. Th e
Commission also found that after clos-ing
Ms. Jones acted as a conduit for
of refund by the would- be optionee,
refunded the would- be optionee $ 950.
MARK GAGLIARDI ( Greenville)
– Th e Commission accepted the volun-tary
surrender of the broker license of
Mr. Gagliardi for a period of fi ve years
eff ective August 1, 2009. Th e Commis-sion
dismissed without prejudice allega-tions
that Mr. Gagliardi violated provi-sions
of the Real Estate License Law
and Commission rules. Mr. Gagliardi
neither admitted nor denied miscon-duct.
JON C. GILLMAN ( Charlotte) –
Th e Commission accepted the volun-tary
surrender of the broker license of
Mr. Gillman for a period of fi ve years
eff ective July 1, 2009. Th e Commission
dismissed without prejudice allegations
that Mr. Gillman violated provisions of
the Real Estate License Law and Com-mission
rules. Mr. Gillman neither ad-mitted
nor denied misconduct.
GTC REALTY, INC. ( Waxhaw)
– By Consent, the Commission rep-rimanded
GTC Realty eff ective May
1, 2009. Th e Commission found that
GTC Realty entered into a buyers’
agency agreement with a husband and
wife and continued to act as a buyers���
agent after the agreement expired in-cluding
writing an off er on a property
and assisting the buyers in a lease- pur-chase
contract. Th e Commission also
found that GTC Realty was paid a 2%
fee of just under $ 6,000 for its services
which included showing the clients the
house, contacting the seller on behalf of
its clients, and delivering funds to the
seller. Finally, the Commission found
that after the clients fi led a complaint
with the Commission about the lease-purchase
transaction, GTC Realty re-peatedly
failed to respond to Letters of
Inquiry.
DR HORTON, INC. ( Charlotte)
– By Consent, the Commission sus-
DISCIPLINARY ACTION
( Continued from page 12)
( See Disciplinary Action, page 14)
Receive Credit
Where and When
Credit is Due!
When continuing education
sponsors fail to report credits to
the Commission in a timely man-ner,
licensees may fi nd them-selves
on Inactive Status on July
1.
You can avoid this problem by
going online to the Commission
Web site, www. ncrec. gov, to verify
your CE credits.
Similarly, if you completed
your CE online, verify that your
sponsor submitted your affada-vit
to the Commission in time for
your CE record to be updated.
14 Real Estate Bulletin October 2009
ised a 20% return on the funds at clos-ing
and represented that he had a buyer
waiting to close. Th e Commission fur-ther
found that Mr. NaPant fi lled out a
promissory note between the seller and
investor and included himself as prom-issor
and his fi rm as trustee but failed
to deposit the funds into his trust ac-count.
Th e Commission further found
that Mr. NaPant, after the contracted
sale fell through, failed to repay the in-vestor’s
money and the home fell into
foreclosure again.
DEBRA PAGANO ( Waxhaw) – By
Consent, the Commission suspended
the broker license of Ms. Pagano for
a period of one year eff ective May 1,
2009. Th e Commission then stayed the
suspension for a probationary period
of one year on certain conditions. Th e
Commission found that Ms. Pagano,
qualifying broker and broker- in- charge
of her licensed fi rm, supervised a provi-sional
broker in the fi rm, who entered
into a buyers’ agency agreement and
continued to act as the buyers’ agent
after the agreement expired including
writing an off er on a property and assist-ing
the buyers in a lease- purchase con-tract.
Th e Commission also found that
Ms. Pagano’s fi rm was paid a 2% fee of
has since taken the Basic Trust Account
Course and brought his books and re-cords
into compliance.
MOUNTAIN LIFESTYLES, LLC
( Asheville) – By Consent, the Com-mission
reprimanded Mountain Life-styles
eff ective September 1, 2009. Th e
Commission found that Mountain
Lifestyles, a real estate brokerage fi rm,
listed in July 2006 a property which
was served by a septic system and ad-vertised
the property as having three
bedrooms, but failed to verify that the
property was permitted for three bed-rooms.
Th e Commission further found
that the buyer of the house discovered
it had only been permitted for a two-bedroom
home when attempting to
sell the property several years after the
purchase.
MYREALTY CONSULTANTS &
MANAGEMENT, INC. ( Charlotte) –
By Consent, the Commission revoked
the fi rm license of MyRealty Consul-tants
& Management eff ective August
13, 2009. Th e Commission found that
MyRealty Consultants & Management
managed a residential rental property,
but failed to deposit funds collected on
behalf of the property owner into a trust
account, failed to maintain and retain
trust account records, and to maintain
records in such a manner as to create a
clear audit trail.
EZEKIAS R. NAPANT ( Char-lotte)
– By Consent, the Commission
suspended the broker license of Mr.
NaPant for a period of one year eff ec-tive
September 1, 2009. Th e Commis-sion
then stayed the suspension for a
probationary period of one year under
certain conditions. Th e Commission
found that Mr. NaPant, as qualifying
broker and broker- in- charge of his own
licensed fi rm, listed a home threatened
with foreclosure, convinced an acquain-tance
to invest $ 15,000 to bring the
mortgage payments current and make
improvements on the property, prom-just
under $ 6,000 for the provisional
broker’s services which included show-ing
the buyers the house, contacting the
seller on behalf of his buyers, and de-livering
funds to the seller. Finally, the
Commission found that after the buyers
fi led a complaint with the Commission
about the lease- purchase transaction,
Ms. Pagano repeatedly failed to respond
to Letters of Inquiry.
WILLIAM T. PAGANO, III ( Wax-haw)
– By Consent, the Commission
suspended the broker license of Mr. Pa-gano
for a period of one year eff ective
May 1, 2009. Th e Commission then
stayed the suspension for a probation-ary
period of one year on certain condi-tions.
Th e Commission found that Mr.
Pagano, as a broker on provisional sta-tus,
entered into a buyers’ agency agree-ment
and continued to act as the buy-ers’
agent after the agreement expired
including writing an off er on a property
and assisting the buyers in a lease- pur-chase
contract after the termination of
the off er. Th e Commission also found
that Mr. Pagano was paid a 2% fee of
just under $ 6,000 for his services which
included showing the buyers the house,
contacting the seller on behalf of his
buyers, and delivering funds to the
seller. Finally, the Commission found
that after the buyers fi led a complaint
with the Commission about the lease-purchase
transaction, Mr. Pagano re-peatedly
failed to respond to Letters of
Inquiry.
HELEN W. PEE ( Charlotte) – By
Consent, the Commission revoked the
broker license of Ms. Pee eff ective Au-gust
13, 2009. Th e Commission found
that Ms. Pee, as qualifying broker and
broker- in- charge of a real estate broker-age
fi rm, managed a residential rental
property, but failed to deposit funds col-lected
on behalf of the property owner
into a trust account, failed to maintain
and retain trust account records, and to
maintain records in such a manner as to
create a clear audit trail. Th e Commis-sion
also found that Ms. Pee converted
Your Pocket License Card
is your ticket for admission
to Continuing Education classes.
Allow at least 10 days to
process a replacement request
or
purchase and download
a replacement immediately
from the Commission’s Web site.
( See Disciplinary Action, page 15)
DISCIPLINARY ACTION
( Continued from page 13)
Real Estate Bulletin October 2009 15
approximately $ 600 of the property
owner’s funds to her own use.
MEN NESHIANNE PHILLIPS
( Rocky Mount) ��� By Consent, the
Commission suspended the broker
license of Ms. Phillips for a period of
two years eff ective July 1, 2008. One
year of the suspension was active with
the remainder stayed for a probationary
period of two years on certain condi-tions.
Th e Commission found that Ms.
Phillips, acting as both broker and loan
offi cer in a transaction, created a false
verifi cation of rent in order to assist
her buyer in qualifying for a loan. Th e
Commission also found that Ms. Phil-lips
negotiated a higher interest rate for
her buyer client to increase her income
at the expense of her buyer and received
a $ 1,900 yield spread premium when
the loan closed.
RONNIE B. RICKS ( Smithfi eld)
– Th e Commission ordered the perma-nent
revocation of the broker license of
Mr. Ricks eff ective May 11, 2009. Th e
Commission found that Mr. Ricks, in
three transactions involving new con-struction
homes and in which the buy-ers
were introduced to the properties
by the same unlicensed entity, failed to
disclose to the lender the true purchase
prices for the properties and misrepre-sented
the purchase prices on contracts.
Th e Commission also found that on
the HUD- 1 closing statements Mr.
Ricks misrepresented the true purchase
contract prices, misrepresented that he
owed monies, when he did not, for sec-ond
mortgage payoff s and assignment
fees to the unlicensed entity that intro-duced
the buyers to the properties, and
assisted the unlicensed entity in receiv-ing
payment for conducting brokerage
services.
DON STEPHEN SCOTT ( Mur-phy)
– By Consent, the Commission
revoked the broker license of Mr. Scott
eff ective July 13, 2009. Th e Commis-sion
found that Mr. Scott was indicted
in August, 2008 in U. S. District Court
on one count of sending sexually explic-it
photos of a minor via the Internet,
13 counts of receiving sexually explicit
photos of a minor via the Internet and
one count of possessing a computer
containing sexually explicit photos of
minors. Th e Commission further found
that Mr. Scott pled guilty to all charges
in December 2008, failed to report his
conviction to the Commission as re-quired
by Commission rule and failed
to respond in a timely fashion to the
Commission’s Letters of Inquiry.
ABIGAIL SEYMOUR ( Charlotte)
– Th e Commission accepted the volun-tary
surrender of the broker license of
Ms. Seymour for a period of fi ve years
eff ective July 1, 2009. Th e Commission
dismissed without prejudice allegations
that Ms. Seymour had violated the Real
Estate License Law and Commission
rules. Ms. Seymour neither admitted
nor denied misconduct.
DEVERA S. SMITH ( Charlotte) –
By Consent, the Commission suspend-ed
the broker license of Ms. Smith for a
period of one year eff ective December
1, 2008. Th e Commission found that
Ms. Smith, became broker- in- charge of
a sole proprietorship in 2005 and her
employer’s broker license was revoked
in 2005 for various trust account vio-lations;
despite the revocation, her em-ployer
continued to represent clients
and Ms. Smith acted as a broker and
accepted trust monies from clients, but
failed to safeguard the funds received.
SUNSHINE REALTY- PROPERTY
MANAGEMENT ( Burlington) – By
Consent, the Commission reprimanded
Sunshine Realty- Property Management
eff ective June 1, 2009. Th e Commis-sion
found that Sunshine Realty- Prop-erty
Management failed to maintain
its trust account records as required by
the Real Estate License Law and Com-mission
rules. Th e Commission noted
that Sunshine Realty- Property Manage-ment
corrected all the violations noted
with respect to its trust account records,
there were no shortages, and no con-sumers
were harmed as a result.
DONNA A. TEELING ( Mount
Holly) – Th e Commission revoked the
broker license of Ms. Teeling eff ective
July 13, 2009. Th e Commission found
that Ms. Teeling certifi ed to the Com-mission
in June 2006 that she possessed
four years’ full- time experience as a bro-ker
or salesperson to remove her license
from provisional statusal when, in fact,
she possessed less than three years’ expe-rience.
Th e Commission also found that
Ms. Teeling failed to respond to Letters
of Inquiry from the Commission.
PAXTON J. TUCKER ( Pawleys
Island, South Carolina) – Th e Com-mission
accepted the voluntary surren-der
of the broker license of Mr. Tucker
for a period of fi ve years eff ective July
1, 2009. Th e Commission dismissed
without prejudice allegations that Mr.
Tucker had violated the Real Estate Li-cense
Law and Commission rules. Mr.
Tucker neither admitted nor denied
misconduct.
GIDGETT M. WAY ( Mount Airy)
– By Consent, the Commission rep-rimanded
Ms. Way eff ective April 1,
2009. Th e Commission found that Ms.
Way, broker- in- charge of a sole propri-
( See Disciplinary Action, page 16)
DISCIPLINARY ACTION
( Continued from page 14)
R esults
E xam
0
55
110
165
220
275
Pass Fail
April May June July August September
239
155
210
243
125
180
214
230
128 137 141 136
16 Real Estate Bulletin October 2009
etorship, listed a home located in Vir-ginia
and represented on the MLS that it
was a modular home with 1,800 heated
square feet, relying on inaccurate data
in a previous MLS listing and not mea-suring
it herself; after entering a lease/
purchase agreement, buyers discovered
that the home was a mobile home with
1,472 square feet, a diff erence of 22%.
ANN WEEKS ( Asheville) – By
Consent, the Commission suspended
the broker license of Ms. Weeks for a
period of six months eff ective Septem-ber
1, 2009. Th e Commission stayed
the suspension for a probationary pe-riod
of six months. Th e Commission
found that Ms. Weeks listed a property
in July 2006 which was served by a sep-tic
system and advertised the property
as having three bedrooms, but failed
to verify that the property was permit-ted
for three bedrooms. Th e Commis-sion
further found that the buyer of the
house discovered it had only been per-mitted
for a two- bedroom home when
attempting to sell the property several
years after the purchase.
AMY MARIE YOUNGERMAN
( Charlotte) – By Consent, the Com-mission
suspended the broker license
of Ms. Youngerman for a period two
years eff ective January 26, 2009. Six
months of the suspension were active
with the remainder stayed for a proba-tionary
period of four years on certain
New
Commission Web Site Address:
www. ncrec. gov
conditions. Th e Commission found
that Ms. Youngerman, on or about Au-gust
13, 2008, pled guilty to and was
convicted of Level 2 Impaired Driving,
placed on probation for 24 months, and
ordered to surrender her drivers license
and obtain substance abuse assessment
and recommended education or treat-ment.
Th e Commission noted that Ms.
Youngerman was convicted of of Level
4 Driving While Impaired in April 2006
while licensed as a real estate broker
and timely reported the conviction, and
Driving After Consuming Under 21 in
1998, which she disclosed on her 2003
license application.
86,500 copies of this public document were printed at a cost of .157 per copy
North Carolina Real
Estate Commission
P. O. Box 17100
Raleigh, NC 27619- 7100
PRSRT STD
U. S. POSTAGE
PAID
HICKORY, NC
PERMIT NO. 104
Safety Tip # 11 - LET THEM
LEAD THE WAY
• Be aware of possible escape routes
• Leave doors open
• Be wary in attics and basements
• Walk behind your clients
• Beware of dead- end streets
Reprinted from the North Carolina
Real Estate Agent Safety Guide.
Safety Tip
DISCIPLINARY ACTION
( Continued from page 15)