Real Estate Bulletin October 2018

REAL EST A AT IN E North Carolina Real Estate Commission L C O O R M

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N Volume 49 • October 2018 • Number 2 ES I SE ER QUAM VID Anna Gregory Wagoner Elected Chair, Wendell Bullard, Thomas R. Lawing, Jr., Vice Chair Jeffery J. Malarney Anna Gregory Wagoner, of Winston-Salem, has been elected Chair of the North Carolina Real Estate Commission and Thomas R. Lawing, Jr., Appointed to Commission of Charlotte, Vice Chair, for the term beginning August 1, 2018, it was an- Wendell Bullard of Durham and Jef- nounced by Miriam J. Baer, Executive Director. fery J. Malarney of Manteo have been ap- Ms. Wagoner is a shareholder with pointed to the North the law firm of Blanco Tackabery & Carolina Real Estate Matamoros, P.A. in Winston-Salem Commission by Gov- and practices in the areas of commercial ernor Roy Cooper, it real estate and renewable energy. was announced by Active in the practice of real es- Miriam J Baer, Exec- tate law for approximately 18 years, Wagoner Lawing Bullard utive Director. Ms. Wagoner began her legal career in Development Association). Bullard is Manag- Greensboro and was formerly associat- She is a graduate of Wake Forest ing Broker at Bullard ed as an attorney with Investors Title University with a BA in Psychology and Properties, LLC, in Insurance Company, of Chapel Hill. holds a Juris Doctor degree from the Durham and has over Ms. Wagoner is a member of the Wake Forest University School of Law. 22 years of experience North Carolina Bar Association, For- Lawing, a former Chair of the Com- in the real estate in- syth County Bar Association, Piedmont mission, is a Certified Property Manager Malarney dustry including affil- Triad Commercial Real Estate Women, and President of T. R. Lawing Realty, a iations with Pruden- North Carolina Land Title Association, family-owned residential property man- tial Carolinas Realty, and Realty Execu- and NAIOP (Commercial Real Estate (See Commission, page 3) tives Triangle Southpointe (Co-Owner). He is past president of the Durham Avoid These 10 Common Mistakes to Make Regional Association of REALTORS® (See Appointments, page 3) Trust Account Management Trouble Free By Jean A. Wolinski-Hobbs, Auditor/Investigator he Real Estate Commission trust monies must be deposited into a License Renewal Thas three rules governing how trust account and all clients and invoic- Changes to Process brokers handle and account for trust es need to be paid out from the trust monies - A.0116, .0117, and .0118. account. The only time it is acceptable See article, Page 5 Additionally, the ncrec.gov website has to move money from a trust account a number of videos available on trust into an operating account is when you account handling. Familiarize yourself are disbursing your earned commission In This Issue with these rules to avoid the following or are reimbursing yourself for invoices Commission Elections...... 1 common mistakes. that were paid by you from your operating account in advance and on behalf Commission Appointments...... 1 1. DO YOU deposit money into of the client. Trust Accounts...... 1 the trust account and then move If the bank account into which you Renewal Process Changes...... 5 the money into an operating ac- deposit client monies is not identified as count to pay clients or invoices? a trust or escrow account, then it will not Assumed Business Name...... 7 be treated as such by the IRS or courts, What Does “As Is” Mean?...... 9 A variation on the same theme is de- meaning they can attach or freeze the Broker Indicted...... 9 positing trust monies into an operating monies. The FDIC may also deny in- account and then transferring them into surance coverage for each individual cus- Disciplinary Actions...... 12 the trust account. Well, DON’T! All (See Trust, page 6)

Real Estate Bulletin October 2018 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 proficiency in real estate practice. S taff U pdate The articles published herein shall not be reprinted or reproduced in any other publication without specific reference being made to their original publication in the Com- mission’s Real Estate Bulletin. NORTH CAROLINA REAL ESTATE COMMISSION 1313 Navaho Drive P. O. Box 17100 People Appearances Raleigh, North Carolina 27619-7100 Main Office (919) 875-3700 Regulatory Affairs (919) 719-9180 Sheryl B. Graham has been em- Corean E. Hamlin, Director, Edu- www.ncrec.gov ployed as Consumer Protection Officer cation and Licensing Division, spoke on Roy Cooper, Governor in the Regulatory Af- the Blue Ridge Real Estate Report on

COMMISSION MEMBERS fairs Division. Prior WTZQ Radio in Flat Rock. to joining the Com- Frederick A. Moreno, Chief Deputy Anna Gregory Wagoner, Chair Winston-Salem mission, she was a real Legal Counsel, spoke to the Experienced Thomas R. Lawing, Jr., Vice Chair Charlotte Wendell Bullard Durham estate broker in both Investor Sub-Group of the Triangle Real George Bell Winston-Salem North Carolina and Estate Investors Asociation in Cary. Cindy S. Chandler Charlotte Virginia for 18 years. She studied ac- Marcia M. Waldron, Auditor, spoke Leonard H. “Tony” Craver, Jr. Durham Jeffery J. Malarney Wanchese counting and marketing at Old Domin- to the Property Management Meeting of Sandra L. O’Connor Greensboro ion University, as well as staging design the Jacksonville Board of REALTORS®. Robert J. Ramseur, Jr. Raleigh and residential appraisal. Jean A. Wolinski-Hobbs, Auditor/ Investigator, spoke to Longleaf Pine RE- EXECUTIVE Nicholas T. Smith has been em- ALTORS® Inc. in Fayetteville. Miriam J. Baer Executive Director ployed as Consumer Protection Officer Stephen L. Fussell, Chief Consumer Paula L. Ricard Chief Financial Officer in the Regulatory Af- Protection Officer, spoke to the Gaston -As ADMINISTRATION fairs Division. Prior sociation of REALTORS® and to the Great- Wendy C. Harper Chief Administrative Officer Jake A. Gore Chief Technology Officer to joining the Com- er Fayetteville Apartment Association. Robert L. Forshaw Publications Officer mission, he was a Sheryl B. Graham, Consumer Potec-

EDUCATION AND LICENSING commercial real estate tion Officer, spoke to the Catawba Valley Corean E. Hamlin Director broker in North Car- Association of REALTORS® in Hickory. Katherine A. Buchholz Education Officer Deborah B. Carpenter Education/Examination Officer olina. He earned a B.A. in Finance from Sarah E. Herman, Consumer Pro- Brenda K. Hollings License Services Officer California State University, Fullerton, tection Officer, spoke to Blue Ridge Re- Pamela R. Rorie Continuing Education Officer while working as an intern for a retail alty and Investments in Boone and to the REGULATORY AFFAIRS property development and management Central Carolina Association of REAL- Janet B. Thoren Director, Legal Counsel firm. TORS® in Concord. Charlene D. Moody Assistant Director, Legal Counsel Frederick A. Moreno Chief Deputy Legal Counsel Nicholas T. Smith, Consumer Pro- Robert A. Patchett Associate Legal Counsel II Wendy C. Harper has been named tection Officer, spoke to Allen Tate Wes- Madison L. Mackenzie Associate Legal Counsel I Chief Administrative Officer in the Ad- ley Chapel. Michael B. Gray Chief Auditor/Investigator D. Scott Schiller Financial Fraud Investigator ministration Division. Peter B. Myers, Informtion Officer, Bart H. Allen Sr. Auditor/Investigator spoke to the Carolina Smokies Associa- M. Spier Holloman Sr. Auditor/Investigator Stephen L. Fussell has been named tion of REALTORS® in Franklin, to the Danielle M. Alston Ausitor/Investigator Marcia M. Waldron Auditor/Investigator Chief Consumer Protection Officer in Greensboro Regional REALTORS® As- Chad W. Wilson Auditor/Investigator the Regulatory Affairs Division. sociation, and to Lake Norman Realty. Jamila G. Wilson-Davis Auditor/Investigator Elizabeth W. Penney, Information Jean A. Wolinski-Hobbs Auditor/Investigator Stephen L. Fussell Chief Consumer Protection Officer Bradford A. Cox has been named Officer, spoke to the Rockingham -RE Sheryl B. Graham Consumer Protection Officer Licensing Services Team Lead in the Ed- ALTOR® Council of the Greensboro Re- Sarah E. Herman Consumer Protection Officer Nicholas T. Smith Consumer Protection Officer ucation and Licensing Division. gional REALTORS® Association. Peter B. Myers Information Officer Elizabeth W. Penney Information Officer Brinita A. Robinson has been named Melissa A. Vuotto Rulemaking Coordinator License Records Team Lead in the Edu- cation and Licensing Division. Editor-In-Chief Miriam J. Baer Editor Robert L. Forshaw

2 Real Estate Bulletin October 2018 October 17-18 All meetings, unless otherwise noted, begin C ommission November 14-15 at 9:00 a.m. and are held in Raleigh in the December 12-13 Commission’s Conference Room at 1313 Navaho Drive (27609). Occasionally, circumstances January 9-10 alendar necessitate changes in meeting times and C February 13-14 locations.

Commission A Commander (ret.) of the United Malarney holds a JD from Wake For- (Continued from page 1) States Navy Judge Advocate Corps, he is est University School of Law and BA a former Special Assistant United States (cum laude) in Economics and Manage- agement company serving the Charlotte Attorney, past president of the North ment from Albion College. regional since 1957. Carolina Vacation Rental Manager’s As- He is a past president and REALTOR® sociation, and past chairman of the Out- of the Year of both the NC REALTORS® er Banks Chamber of Commerce. and the Charlotte Regional REALTORS® Association (CRRA) and a past director of the National Association of REALTORS® (NAR). 12-Hour Broker-in-Charge and Active in civic affairs, Lawing has held Basic Trust Account Procedures Courses leadership positions at Hawthorne Lane Register online at the Commission website, www.ncrec.gov, United Methodist Church, is a past pres- under Education/Course Registration. ident of the Charlotte West Rotary, past chair of the Eagle Projects Committee of the Mecklenburg County Council of the Broker-in-Charge Course Boy Scouts of America and has co-chaired (Two days) Day 1: 1 - 5 p.m.; Day 2: 8:30 a.m. - 5:30 p.m. the Will Call Committee of the Wells Far- Western Carolina University go Championship since its inception. Asheville November 26-27 Biltmore Park

Appointments Charlotte Goodwill Opportunity Campus November 13-14 (Continued from page 1)

and the North Carolina Association of Greensboro Conference Center at GTCC October 2-3 REALTORS® and past REALTOR® of the Year in both organizations. October 8-9 One of several founding members Raleigh McKimmon Center November 5-6 for charter high schools in Charlotte December 10-11 and Raleigh, Bullard is past treasurer for Commonwealth and Stewart Creek High Wilmington Cape Fear Community College October 23-24 Schools and past board president of Cen- tral Wake Charter High School in Raleigh. He is a graduate of North Carolina Basic Trust Account Procedures Central University with a BS in market- (Commission Offices, Raleigh) ing and a United States Air Force Securi- (All classes 1 - 5 p.m.) ty Specialists veteran. Malarney, a former member of the October 24 Real Estate Commission, serves as Gen- Commission Office Raleigh 1313 Navaho Drive, Raleigh November 7 eral Counsel for Twiddy & Company, a December 10 North Carolina Vacation Rental Man- agement Firm, and is a principal of the Law Offices of Jeff Malarney, PLLC. He See Commission website to confirm course dates. is also a licensed real estate broker and Registration fees are nonrefundable. property insurance agent. 3 Real Estate Bulletin October 2018 an offer being extended opens the door Sellers Required by Law to Provide to the possibility of the buyer rescinding the contract within either three days of Two Disclosure Statements to Buyers contract formation or three days from By Elizabeth W. Penney, Information Officer receipt of the statement, whichever oc- rokers know that most sellers the property, a broker must disclose any curs first. It is the listing agent’s duty to of residential property are re- material facts to a prospective buyer. If a inform seller-clients of their rights and quired by law to give the buy- home inspection reveals a significant de- obligations regarding the completion er twoB disclosure forms: the Residential fect and the seller refuses to repair, that and distribution of this mandatory form. Property and Owners’ Association State- defect becomes a material fact which the Additionally, sellers of residential ment (RPOADS) and the Mineral and agent has discovered and must disclose property are now required by law to give Oil and Gas Rights Mandatory Disclo- affirmatively to prospective buyers. the buyer the single-page MOGS form sure Statement (MOGS). If the seller originally answered any prior to the Offer to Purchase. The seller The four-page RPOADS form should of the relevant questions “no”, then the has the option to mark “no representa- be given prior to an offer to purchase. broker should also advise the seller-cli- tion” only as to the severance of mineral The seller has the option of answering ent to amend the RPOADS once a de- or oil and gas rights by a previous owner. each question “yes’, “no,” or “no repre- fect becomes known to avoid charges of It is important to note that the fact sentation.” Thus, while it is a mandato- misrepresentation and fraud. If the seller the property is investment property and ry disclosure form, it does not actually decides not to disclose, the seller still has has not been owner-occupied does not mandate any disclosure because of the the option of “no representation” but, negate the obligation of the seller to pro- “no representation” option. Sellers who again, the broker still must disclose the vide a disclosure statement to prospective choose to answer the questions “yes” or known material fact separately from the buyers. When in doubt as to whether the “no” should do so honestly, based on their RPOADS. RPOADS or MOGS must be given in actual knowledge as a seller can be held Failure to provide the RPOADS a certain transaction, sellers should con- accountable in a court of law for the truth can have consequences. The statement tact the Commission or err on the side of and accuracy of the representations made. should be provided to a prospective caution and provide the Statement. Sellers and brokers should understand buyer prior to the buyer making an of- that regardless of the seller’s decision to fer. A seller or listing agent who fails to disclose issues and defects concerning present a completed statement prior to Exemptions to Providing RPOADS/MOGS Disclosure Forms

North Carolina state law (General Statute Chapter 47E) (3) Transfers by a fiduciary in the course of the admin- requires that the RPOADS/MOGS be given in all transfers of istration of a decedent's estate, guardianship, conservator- residential one-to-four unit dwellings by sale, exchange, in- ship, or trust. stallment land sales contract or option to purchase, subject (4) Transfers from one or more co owners solely to one to a few very narrow exceptions in NCGS § 47E-2 as shown or more other co owners. below: (5) Transfers made solely to a spouse or a person or NCGS § 47E-2 (a)… [RPOADS/MOGS exemptions] persons in the lineal line of consanguinity of one or more (1) Transfers pursuant to court order, including transfers transferors. ordered by a court in administration of an estate, transfers (6) Transfers between spouses resulting from a decree pursuant to a writ of execution, transfers by foreclosure of divorce or a distribution pursuant to Chapter 50 of the sale, transfers by a trustee in bankruptcy, transfers by emi- General Statutes or comparable provision of another state. nent domain, and transfers resulting from a decree for spe- (7) Transfers made by virtue of the record owner's fail- cific performance. ure to pay any federal, State, or local taxes. (2) Transfers to a beneficiary from the grantor or his suc- (8) Transfers to or from the State or any political subdi- cessor in interest in a deed of trust, or to a mortgagee from vision of the State. the mortgagor or his successor in interest in a mortgage, if the NCGS § 47E-2 (b)… [Additional RPOADS exemptions] indebtedness is in default; transfers by a trustee under a deed (1) Transfers involving the first sale of a dwelling never of trust or a mortgagee under a mortgage, if the indebtedness inhabited. is in default; transfers by a trustee under a deed of trust or a (2) Lease with option to purchase contracts where the mortgagee under a mortgage pursuant to a foreclosure sale, lessee occupies or intends to occupy the dwelling. or transfers by a beneficiary under a deed of trust, who has (3) Transfers between parties when both parties agree acquired the real property at a sale conducted pursuant to a not to complete [the RPOADS]. foreclosure sale under a deed of trust. 4 Real Estate Bulletin October 2018 Renewal Process Changes: Online Renewal Required in 2019 By Corean E. Hamlin, Director of Education and Licensing ince July 1, 2014, Commission resulted from two law changes requir- ciplinary actions. These questions, too, rule 58A .0503 has required ing certain information to be gathered have been added to the online renewal brokers to renew their licenses during the renewal process. program. on theS Commission’s website or by call- First, as required by the NC state leg- If you have been in the practice of re- ing the Commission’s office. Despite islature in NCGS § 143-765, all appli- newing by phone or sending checks by the rule, the Commission has attempted cants for occupational licenses, includ- mail for your renewal fee, please be aware to accommodate brokers who preferred ing license renewal, must disclose any that these options will not be available in to pay their renewal fees by check. investigations for employee misclassifi- 2019. Online renewal will be required. Effective July 1, 2018, there is no cation. All applicants must certify that Detailed instructions will be provided longer an option to renew by phone has they have read and understand a Public on the Commission’s website and in the been removed. In addition, checks will Notice Statement from the Employee Bulletin to assist you during the renewal no longer be accepted by mail. Going Classification Section of the State In- period. Also, Commission Staff will be forward, brokers will renew their licens- dustrial Commission (http://www.ic.nc. happy to answer your questions regard- es on the Commission’s website between gov/121317ECSPublicNotice.pdf) and ing the process by phone (919.875.3700) May 15 and June 30 each year. Brokers must disclose any investigations for em- or in person at the Commission office. who wish to reinstate their licenses with- ployee misclassification. If an applicant in the first six months of license expira- does not provide the certification and tion will also be required to do so elec- disclosure, the NC Real Estate Commis-

EAL ES tronically. sion is not permitted to process the ap- R TA A T IN E North Carolina Real Estate Commission L C O O R M

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ES I SE ER tion to renew by phone for the security tification and disclosure have been added QUAM VID of broker information. Entering pay- into the online renewal program. ment information on a secure website Second, Commission rule 58A .0503 Read it. Know more. affords better protection than communi- now requires Brokers-in-Charge to dis- cating such information over the phone. close information regarding trust ac- The decision to stop accepting checks count(s) and criminal convictions or dis- New Videos

Learn how and when to register your business Understand how to correctly establish an ac- under an assumed name. count to hold funds in trust for others.

Requests activation of a license and records Use this form to obtain broker-in-charge eli- affiliation with a broker. gibility status. 5 Real Estate Bulletin October 2018 Trust Accounts 6. DO YOU deposit multiple 9. DO YOU use trust account (Continued from page 1) homeowners’ association monies money to pay for repairs to a prop- into one trust account? erty if the client does not have suf- tomer whose money is deposited into an ficient funds in the trust account account not properly designated. Well, DON’T! Homeowner’s asso- to cover the repair? ciations must each have their own indi- 2. DO YOU pay client proceeds vidual trust account. If you manage ten Well, DON’T! Just because there before the rent or other incoming (10) homeowner’s associations, then you is $50,000 in the trust account does not money clears the account? must maintain at least ten (10) trust ac- mean that you can pay for a new water counts. heater costing $1000 for client Smith if Well, DON’T! Ensure that incom- only $200 of the $50,000 belongs to client ing funds clear prior to paying the client 7. DO YOU allow your bookkeep- Smith. To do so means you are using oth- or any invoices on behalf of the client. er to handle every aspect of main- er clients’ money to pay for client Smith’s Failure to do so can cause a deficit in the taining and reconciling the trust water heater and causing a deficit in client account if the funds do not clear. account? Smith’s ledger. No client should ever have a negative balance on their ledger. 3. DO YOU allow bank service Well, DON’T! Embezzlement hap- fees to be charged against the pens even with trusted bookkeepers or 10. DO YOU disburse late fees trust account and then reimburse long-time employees and is made easier or commissions even if the tenants the account after the fact? when one person is in charge of every- have not paid the late fee or paid thing. Simple steps can help ensure that rent for the month? Well, DON’T! This also causes a trust money is safeguarded. For example, deficit in the account. Instead, make the person who receives cash should not Well, DON’T! If a tenant owes a $15 sure that service charges are covered by be the same person who reconciles the late fee but has not paid that amount, do depositing enough of your own money trust account. Cash receipts should be not pay yourself or the client the late fee. to cover them and keep a ledger to keep verified at the end of each day and logged Disbursements on rentals must be calcu- track of those personal funds. by the broker-in-charge or another per- lated upon the amount actually paid for son in a supervisory role. And, the book- that month. 4. DO YOU leave interest, com- keeper should not be the person initially missions, reservation fees or mon- receiving the bank statement. The bro- If this sounds confusing, you are not ies for credit/background checks ker-in-charge should verify the items in alone. Come to one of our monthly trust that belong to the broker or oth- the bank statement against the journal account courses and learn the rules in de- ers in the trust account beyond 30 and also check cash receipts against de- tail. Bring along anyone who also handles days? posits on a monthly basis, prior to the trust accounts for your firm. As a broker- reconciliation. A bookkeeper who never in-charge, at a minimum you will learn Well DON’T! To do so is commin- takes vacations or is obsessed with get- what you need to know to adequately su- gling. Also, don’t use a money market ting the mail is not a good thing, it is a pervise your bookkeeper and what you or account if it requires a large balance of RED FLAG. your software program needs to be able to personal funds in order to avoid service produce in the way of reports in order to fees - that is also commingling. Money 8. DO YOU take possession of be compliant. As a bonus, it qualifies as market accounts are acceptable if there checks or cash but deposit the an elective continuing education course. is a large enough balance of customer items directly into a client’s ac- funds, such as a security deposit trust count? account holding a substantial number of deposits. Well, DON’T! If you “touch” the money, then you must have a trust ac- 5. DO YOU allow your client count and the money must go through to be a signatory on the trust ac- your trust account. If the check is writ- count? ten to the client, do not accept it. The only time it is acceptable for a broker Well, DON’T! Trust accounts must to deliver monies to a client is when the be custodial and if the owner of the funds payment is subject to a specific exception has access to make their own deposits or such as a due diligence check or check withdrawals, then it is no longer a custo- payable to a designated escrow agent. dial account. 6 Real Estate Bulletin October 2018 Allan R. Dameron Legal Internship Award How to File Rachel E. Rogers of Fayetteville, a An Assumed second year law student at Campbell University, is the recipient of the Allan Business Name R Dameron Legal Internship Award. By Charlie Moody, Legal Counsel Rogers received the award at the Com- mission’s June meeting. orth Carolina law has long The award is given annually in required individuals, partner- memory of and tribute to former Com- ships, LLCs, and corporations mission Chairman Allan R. Dameron thatN engage in business under an as- for his dedicated service to protect the sumed name to file a certificate with the interests of consumers. register of deeds in the county in which that person or entity does business. Similarly, Commission Rule 58A .0103(c) requires a broker or firm to file such a certificate in compliance with GS 66-71.4 AND notify the Commission in writing of the use of such assumed name. Real Estate Commission What is an “Assumed Business Name”? For example, when an individual broker/ Scholarship Winners sole proprietor named Alex advertises as Three North Carolina brokers recently received scholarships from the Com- Robinson Realty, Alex is not using an as- mission for academic excellence in real estate courses. sumed name because Robinson Realty in- The recipients, each of whom received $400 for tuition, are Michael J. Shel- cludes the broker’s surname. ton, Winston-Salem, the Joe Schweidler Memorial Scholarship Award; Melinda If Alex Robinson instead advertises G. Pope, Liberty, the Blanton Little Memorial Scholarship Award; and Mike G. brokerage services (with business cards, Montpetit, Cary, the Phillip T. Fisher Scholarship Award. ads, etc.) under the name “Luxury Homes Shelton and Pope were selected by the North Carolina Association of REAL- 4U Realty,” Alex is now using an assumed TORS® for achievement in the Graduate REALTORS® Institute (GRI) program. business name and must comply with the Montpetit was selected by the North Carolina Chapter of the Council of Resi- statute and Commission rule. dential Specialists for achievement in the Certified Residential Specialists (CRS) Similarly, a licensed firm has a corpo- program. Little and Schweidler were former Secretary-Treasurers of the North rate name under which it is registered to Carolina Real Estate Licensing Board. Fisher was Executive Director of the Real do business with the Secretary of State Estate Commission from 1981 to 2010. but may choose to advertise under one or several assumed names. “Team One Property Management” and “Team One Realty” might be two assumed names (or “trade names”) used by ABC Corporation for branding purposes. Both assumed business names must be filed with the State and the Commis- sion must be notified of their use to assist Shelton Pope Montpetit consumers in finding the actual entity/ broker with whom they are dealing. On December 1, 2017, the legislature repealed Chapter 66, Article 14 and en- acted Article 14A, the “Assumed Business Names Act.” This change modernized the assumed business name process to make Follow us on it easier to register, find, and maintain assumed name information. The new Act altered the requirements for the assumed (See Assmed Name, page 8) 7 Real Estate Bulletin October 2018 Assumed Name able database maintained by the Secretary Remember also that filers of assumed busi- (Continued from page 7) at http://www.sosnc.gov/abn/search. The ness names must update the filings within Secretary assigns an identification num- 60 days of the information changing. business name certificate and created the ber to each assumed business name that is Compliant blank certificate forms are means by which a single registration in recorded, and to which any future amend- available from registers of deeds or may the office of one Register of Deeds can be ments or withdrawals must refer. be downloaded from https://edpnc.com/ made effective for multiple counties. Certificates filed before December 1, start-or-grow-a-business/start-a-business/ Filers will need to identify which 2017 are still valid, at least for now. The business-forms/. counties they will be doing business in or Act allows for a five-year transitional pe- Go to the Secretary of State website to check the box for “All 100 counties.” The riod during which individuals and entities find additional information about when, certificates are then recorded and indexed with pre-existing assumed business names how and why to file an Assumed Business in identified counties and scanned certif- can re-file a certificate to preserve the effec- Name: https://www.sosnc.gov/divisions/ icate images are transmitted by the Regis- tiveness of the name designation. Filers business_registration/assumed_business_ ter of Deeds to the NC Secretary of State have until December 1, 2022 to re-file a names. for entry into a single, statewide search- certificate for a pre-existing assumed name.

The Assumed Business Certificate below is the primary form with which to file an assumed name. Two other forms available for downloading on the Secretary of State’s website serve to amend or withdraw a certificate.

ASSUMED BUSINESS NAME CERTIFICATE (NCGS §66-71.5) Please print legibly.

1. The assumed business name is: ______(You may include no more than five (5) assumed business names on this form.)

2. The real name of the person or entity engaging in business under the assumed business name is: ______(Corporations, LLC’s, limited partnerships must provide the exact name registered with the NC Secretary of State’s office and the SOSID number assigned at the time of formation. Go to www.sosnc.gov/br/search to look up your information.)

3. The nature/type of the business is: ______

4. The street address of the principal place of business is: (PO Boxes are not acceptable) ______5. The mailing address, if different from the street address, is: ______6. The counties where the assumed business name will be used to engage in business are: □ All 100 North Carolina counties ______

______

This certificate is signed by the owner/legal representative of the person or entity named above, this ______day of ______, 20______.

Signature: ______

Printed/Typed Name: ______

Title: ______(See instructions for who must sign for various business entity types.)

Assumed Business Name Certificate 10.03.17

8 Real Estate Bulletin October 2018 to a question when the truthful answer is What Does “As Is” Really Mean? “Yes,” may face civil liability for his/her Stephen L. Fussell, Chief Consumer Protection Officer misrepresentation. Real estate brokers, including those he term, “As Is,” means that a less the parties agree otherwise, THE brokers who are selling their own proper- seller has decided in advance PROPERTY IS BEING SOLD IN ITS ties, must always disclose material facts. of soliciting offers that he or CURRENT CONDITION.” With that A listing agent has the duty to discover she Twill not make any repairs to the list- said, many sellers are willing to make at and disclose material facts. The Com- ed property. Disclosing this decision to least some repairs as a means of facilitat- mission holds brokers responsible for prospective buyers puts them on notice ing a sale. If every seller refused to make the information they know or reasonably that the seller will not make any repairs repairs, then many transactions would should know about or relating to a prop- regardless of the results of inspections. fail to close for that reason. NC Realtors erty. Therefore, even if a seller fails to dis- However, it should not discourage pro- created the Due Diligence Request and close a material defect on an RPOADS, spective buyers from ordering inspections Agreement (“DDRA”) form (No. 310- the listing agent must disclose it to pro- as doing so is a prudent means for deter- T) for buyers and sellers to identify the spective buyers or their agents prior to mining the true condition of a property. repairs they agree upon. Once all parties the formation of sales contracts. If a sell- One misconception is that when a sell- sign this form, the seller then has an ob- er indicates he/she does not want a list- er notes “As Is” on a property, the buyer ligation to make the repairs listed on the ing agent to disclose a material fact, then has no right to inspect. The NC Realtors form. the listing agent should decline to list the Standard Form Offer to Purchase and Another common misconception is seller’s property. Contract (No. 2-T) specifically gives the that selling a property “As Is” gives a sell- buyer the right to conduct their due dili- er and/or a listing agent the opportunity gence and order relevant inspections. to conceal material facts about the prop- There is no State law or Commission erty. While a seller can always answer rule compelling sellers to make repairs. “No Representation” to any question Moreover, Section 4(c) of the NC Real- on the Residential Property and Own- tors Contract 2-T reads in part, “Buyer ers’ Association Disclosure Statement acknowledges and understands that un- (“RPOADS”), a seller who answers “No”

Broker Indicted for Fraud A Regulatory Affairs Division Case Study By Charlie Moody, Legal Counsel Broker Numbers As of September 1, 2018, there n August 15, 2018, the US Department of Justice indicted a Min- are 102,614 brokers and firms li- nesota real estate broker, his wife, and their real estate firm on censed by the Real Estate Commis- Omultiple counts of mail and wire fraud. sion in the following categories: Broker Jeffrey Detloff managed and sold foreclosed properties on behalf Active Brokers 67,219 of institutional clients and worked with his wife, Lori, an accountant. (Active Provisional Brokers 8,692) The couple are alleged to have carried out a multi-year scheme to de- Inactive Brokers 22,616 fraud corporate and institutional clients including Fannie Mae and Freddie Mac by collecting kickbacks from independent contractors for repairs. (Inactive Provisional Brokers 6,275) The couple allegedly created and submitted sham bids to create a false Firms 12,540 appearance of competitive bidding for projects, and awarded contracts only Brokers-in-Charge 16,841 to contractors who were willing to pay a kickback. The couple faces up to 30 years in jail and a fine of up to $1 million. The fine may be increased up to twice the gain derived from the crime or the loss suffered by the victims. One housing repair contractor has already pled guilty in connection with the investigation.

9 Real Estate Bulletin October 2018 Commission Publications Order form for FREE Publications Free Publications Quantity Free Publications Quantity Questions and Answers on: Trato Con Agentes de Bienes Raíces (Working With Real Estate Agents) Fair Housing Preguntas y Respuestas sobre: (Questions and Answers On:) Tenant Security Deposits Vivienda Justa (Fair Housing) Condos and Townhouses El Depósito de Seguridad del Residential Subdivisions Inquilino (Tenant Security Deposits) and Planned Communities Alquiler de Inmuebles para Vivienda (Renting Residential Real Estate) Purchasing Coastal Real Estate in North Carolina Real Estate Licensing in North Carolina Renting Residential Real Estate Residential Property Disclosure Statement Available N.C. Military Personnel Residential Mineral and Oil and Gas Rights { Online Lease Termination Mandatory Disclosure Statement

How to Order: NAME ______ONLINE: www.ncrec.gov (Publications page) ADDRESS ______FAX: 919-877-4227 CITY/STATE/ZIP ______MAIL: NC Real Estate Commission, ATTN: Publications, P. O. Box 17100, Raleigh NC 27619-7100 TELEPHONE______EMAIL______Please allow 7 days from receipt of order for delivery. Order form to PURCHASE Publications Purchase Publications Quantity Totals Purchase Publications Quantity Totals Residential Square Footage Guidelines Owning Vacation Rental Property ($.65 per copy) $ ($.25 per copy) $ Working With Real Estate Agents ($.25 per copy) $ North Carolina Real Estate Questions and Answers on: License Law and Commission Rules ($4 per copy) Home Inspections $ ($.25 per copy) $ Real Estate Agent Safety Guide Earnest Money Deposts ($.25 per copy) $ ($.25 per copy) $ Issues and Answers Real Estate Closings ($10 per copy) $ ($.25 per copy) $ Offer and Acceptance Amount Enclosed $ ($.25 per copy) $

Billing address if different from shipping address How To Order: Mail or fax this form. Credit card: MasterCard or Visa only. Please NAME______do not remit cash. ADDRESS______Online: www.ncrec.gov Select Publications on the Home page. CITY/STATE/ZIP______Phone: 1-866-833-5785; Fax 1-919-833-4649 TELEPHONE______EMAIL______Mail to: Commission Publications, P. O. Box 28151, Raleigh, NC 27611 MasterCard Visa Exp Date NAME______

ADDRESS______Security Code 3-digit code on card back CITY/STATE/ZIP______Credit card orders must be a minimum of $1.00. Signature: ______TELEPHONE______EMAIL______Please allow 7 days from receipt of payment for delivery. 10 Real Estate Bulletin October 2018 Hetrick Moylan NORTH CAROLINA Outlaw

NORTH CAROLINA

R e a l E

N REAL ESTATE MANUAL REAL ESTATE MANUAL

The North Carolina Real Estate Manual, published by the Real Estate Commission, is

o r

s t a

h C

t a comprehensive reference addressing real estate law and brokerage practice in North

e M r

a Carolina. It serves as the authorized textbook for the real estate broker postlicensing

o l i n a

n u a l a courses and is highly recommended for licensees, attorneys, instructors, and anyone else engaged or interested in real estate law and brokerage practice. This September 2017 edition incorporates changes to federal and North Carolina laws, Commission rules, and revisions to various forms since publication of the 2015-16 edition in February 2015. Published By The North Carolina Real Estate Commission

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11 Real Estate Bulletin October 2018 enalties for violations of the Real Estate License Law and Commission D isciplinary rules vary depending upon the particular facts and circumstances presentP 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 ction

ALICIA DAWN ALTMAN and a shortage was present. A review the broker license of Mr. Bellamy for a (Sunset Beach) – The Commission of his rental deposits account found period of six months effective Novem- accepted the permanent voluntary that it contained an overage and that ber 1, 2018. The Commission then surrender of the broker license of Ms. some owners were being overpaid, stayed the suspension for a probation- Altman effective July 18, 2018. The causing deficit spending. ary period through May 1, 2019. The Commission dismissed without prej- Commission found that Mr. Bellamy udice allegations that Ms. Altman vio- WAYNE T. BARBOUR (Dunn) entered into a listing agreement for a lated provisions of the Real Estate Li- – By Consent, the Commission sus- property and failed to obtain a buyer cense Law and Commission rules. Ms. agency agreement, but purported to Altman neither admitted nor denied act as dual agent for the transaction misconduct. Don’t Forget! without authorization from the seller or buyer to perform dual agency. ROBERT LORENZO ARRIAGA Write your real (Cary) – By Consent, the Commis- estate broker VALERIA MARIA CARRIZO sion suspended the broker license of license number WYDA (Asheville) – By Consent, Mr. Arriaga for a period of 36 months on all agency the Commission reprimanded Ms. effective December 1, 2017. Six Carrizo Wyda effective September months of the suspension were active agreements. 25, 2018. The Commission found with the remainder stayed for a proba- that Ms. Carrizo Wyda was the list- tionary period from June 1, 2018 to ing agent for a property and received December 1, 2020. The Commission pended the broker license of Mr. Bar- reports noting limited accessibility of also prohibited Mr. Arriaga from act- bour for a period of three months ef- the crawl space and issues with the ing as a broker-in-charge, engaging in fective November 1, 2018. The Com- property’s foundation. Although Ms. property management, and accepting mission then stayed the suspension on Carrizo Wyda disclosed this informa- or holding trust monies belonging to certain conditions. The Commission tion to some subsequent interested others for a period of five years. The found that Mr. Barbour as Qualifying buyers, this information was not dis- Commission found that Mr. Arriaga, Broker and Broker-in-Charge of a li- closed to the buyer who went under the qualifying broker and broker-in- censed real estate firm in and around contract. This buyer later terminated charge of a property management October 2016, acted as buyer agent in the contract after discovering these is- firm, received compensation for a a transaction with a provisional broker sues. maintenance referral without disclo- serving as the exclusive listing agent. suring to his principal, improperly Mr. Barbour submitted an offer to SABRINA HORTENSE applied the tenant security deposit purchase on behalf of the buyer with- CHARLESTON-MILES (Ra- to various expenses, failed to provide out first entering into a written agency leigh) - Following a hearing, the the tenant with an accounting, and agreement or presenting a Working Commission permanently revoked failed to provide documents requested With Real Estate Agents brochure. the license of Ms. Charleston-Miles, by the Commission. A Commission Neither Mr. Barbour nor his firm effective July 31, 2018. The Commis- review of his tenant security deposit had permission from the buyer to act sion found that Ms. Charleston-Miles account found that cancelled checks as dual agent. The subject property’s acted as a dual agent in transactions and deposit tickets lacked the required heated square footage was also neg- when she was not authorized to do so, identifying information and were not ligently misrepresentated in the MLS. advertised real property for sale with- properly retained funds, were used for out having an executed listing agree- Mr. Arriaga’s personal benefit, a jour- WILLIAM F. BELLAMY (North ment, failed to provide and review a nal and separate ledger sheets were not Myrtle Beach, South Carolina) – By copy of the publication “Working maintained, an audit trail was lacking, Consent, the Commission suspended Continued 12 Real Estate Bulletin October 2018 property she listed for sale without her sions of the Real Estate License Law Licensees Must seller client’s consent, failed to proper- and Commission rules. Ms. Doss nei- Report Convictions ly and timely deliver a copy of an ex- ther admitted nor denied misconduct. Commission Rule A.0113 ecuted listing agreement pursuant to requires any licensee who is a court order, failed to communicate ELLIS BARBOUR & SONS, convicted of a misdemeanor or with Commission staff during the in- INC. (Dunn) – By Consent, the Com- felony or who has disciplinary vestigation, and misrepresented to the mission suspended the firm license of action taken against him or her Commission that she was represented Ellis Barbour & Sons for a period of by any occupational licensing by an attorney whom she, in fact, had three months effective November 1, board to file a report with the not retained. 2018. The Commission then stayed Real Estate Commission. the suspension on certain conditions. The reporting requirement COMPASS REAL ESTATE The Commission found that Ellis Bar- includes convictions for driving GROUP LLC (Huntersville) – By bour & Sons, in and around October while impaired (“DWI”). The Consent, the Commission permanent- 2016, acted as dual agent for a trans- report must be filed within sixty ly revoked the firm license of Compass action with a provisional broker serv- (60) days of the final judgment Real Estate Group effective September ing as the exclusive listing agent and or board action. If you have questions about 5, 2018. The Commission found the the BIC as the buyer agent. An offer to this rule, please call the Commis- firm’s trust accounts were not labeled purchase was submitted without the sion’s Regulatory Affairs Division “trust” or “escrow”, entrusted funds firm first entering into a written agen- at 919-719-9180 for more infor- were commingled and converted to cy agreement or presenting a Working mation. the personal use of the broker, deficit With Real Estate Agents brochure. El- spending, failure to perform monthly lis Barbour & Sons did not have per- reconciliations, lack of a trial balance, mission from the buyer to act as dual with Real Estate Agents” with pro- lack of required documentation, and a agent. The heated square footage was spective buyers or sellers at first sub- shortage. The investigation also discov- also negligently misrepresented in the stantial contact, failed to ensure that ered that Compass Real Estate Group MLS. her buyer clients submitted all due was administratively dissolved by the diligence fees and earnest money de- NC Secretary of State from January 14, PATRICIA GONZALEZ (Fayette- posits in accordance with the purchase 2016 through June 16, 2016, and that ville)- Following a hearing, the Com- contract, failed to notify Commission it failed to notify the Commission. mission permanently revoked the bro- staff of her updated contact informa- ker license of Patricia Gonzalez effec- tion, failed to timely communicate CROWN REALTY INC. (Fay- tive August 7, 2018. The Commission with other agents involved in transac- etteville) - By Consent, the Commis- found that Ms. Gonzalez practiced real tions, required “cash only” offers on a sion permanently revoked the firm estate after her broker license was sus- license of Crown Realty Inc., effective pended by the Commission in a prior August 29, 2018. The Commission case, that she failed to remit rental pro- Your Pocket License Card found that Crown Realty, a property ceeds and a tenant security deposit to management firm, failed to maintain Continued is your ticket for admission trust account records in compliance with Commission rules. Crown Realty Real Estate Education to Continuing Education classes. deposited rent proceeds into its operating account and issued 32 non-suf- and Recovery Fund Allow at least 10 days to ficient funds checks to owner-clients Reimburses Victims from its operating account, causing At its August 29, 2018 meeting, process a replacement request the owner-clients to incur bank ser- the Commission approved payments vice fees. An audit showed a trust ac- totaling $23,290.70 out of the Real or count shortage of at least $14,663. Estate Education and Recovery Fund to three applicants who suffered -fi download DEBORAH L. DOSS (Thomas- nancial loss due to the misconduct of ville) – The Commission accepted the Sherry Clark Byrd. a replacement immediately permanent voluntary surrender of the Following a hearing, the Commis- broker license of Ms. Doss effective sion permanently revoked the broker from the Commission’s website. August 15, 2018. The Commission license of Ms. Byrd effective July 17, dismissed without prejudice allega- 2017. tions that Ms. Doss violated provi- 13 Real Estate Bulletin October 2018 her client, and that she converted trust money to personal use. Commission Speakers Available ROBERT SANFORD GOS- NELL JR. (Hendersonville) – By Real Estate Commission staff members are available to Consent, the Commission suspended speak to your local board, office or special group. You can re- the broker license of Mr. Gosnell for quest a presentation relating to a specific subject or a general a period of 16 months effective May discussion on topics of interest to those attending. 9, 2018. The Commission then stayed To schedule a speaker, submit the “Request for Program Pre- the suspension for a probationary pe- senter” form available on the Commission’s website, www.ncrec. riod from May 10, 2018 through Sep- gov, under Forms. Please allow at least four weeks prior to your tember 10, 2019. The Commission group’s meeting. found that Mr. Gosnell timely reported his August 31, 2017 conviction of Aggravated Level I DWI, served 120 HD Realty violated provisions of the 18, 2018. The Commission dismissed days in jail, received 24 months of su- Real Estate License Law and Commis- without prejudice allegations that Ms. pervised probation and is currently in sion rules. HD Realty neither admit- Lam violated provisions of the Real full compliance with all court ordered ted nor denied misconduct. Estate License Law and Commission restrictions. rules. Ms. Lam neither admitted nor INTRACOASTAL REALTY COR- denied misconduct. DAMIAN DAVID HALL ( Tr y- PORATION (Wrightsville Beach) on) – By Consent, the Commission – By Consent, the Commission rep- LANEY REAL ESTATE (Wilming- suspended the broker license of Mr. rimanded Intracoastal Realty effec- ton) – By Consent, the Commission Hall for a period of 18 months effective July 18, 2018. The Commission suspended the firm license of Laney tive July 19, 2018. The Commission found that Intracoastal was notified Real Estate until September 1, 2018 then stayed the suspension for a pro- that a waterproofing project was ap- on certain conditions including requir- bationary period from July 19, 2018 proved at an oceanfront condomini- ing the deposit of $77,432.19 into its through January 18, 2020. The Com- um complex where the firm managed tenant security deposit trust account mission found that Mr. Hall failed to rental properties. A tenant reserved and providing sufficient evidence to provide property management records one of the condominiums for a month the Commission to demonstrate that to the Commission’s investigator. An but the firm failed to notify the tenant the trust account was fully funded and audit of the firm’s records found that that the project could affect her ability balanced. The Commission found that deposit slips were not designated as to use the condo’s balcony. The firm in June 2018, a total of $77,432.19 was “trust” or “escrow”, agency agreements refunded a significant portion of the transferred from Laney Real Estate’s did not identify the broker’s license tenant’s rental amount. tenant security deposit trust account to number, and security deposits were not pay a non-client legal order. deposited within three days of receipt. HOLLY MARIE LAM (Mount The firm continued to operate from Holly) – The Commission accepted the DAVID MAYO (Fayetteville) July 2016 through June 2017 despite permanent voluntary surrender of the - By Consent, the Commission per- being issued a revenue suspension by broker license of Ms. Lam effective July manently revoked the broker license the North Carolina Sec- of Mr. Mayo effective retary of State. Mr. Hall August 29, 2018. The is restricted from further Commission found property management. Mail From The Commission that Mr. Mayo, as bro- The Commission corresponds with licensees at their busi- ker-in-charge, failed to ness addresses of record. Licensees are required to respond HD REALTY to Letters of Inquiry from this office within fourteen (14) days maintain trust account LLC (Mount Holly) of receipt of same. Full brokers who work primarily from their records in compliance - The Commission ac- homes must make arrangements with their offices to be notified with Commission rules. cepted the permanent regarding mail from the Commission so that the brokers can Instead of depositing voluntary surrender of receive and respond to such mail in a timely manner. Addition- rent proceeds into the the firm license of HD ally, if a broker changes offices or firms, he or she must provide trust account, Mr. Mayo Realty effective July 18, the Commission with the new business address within ten (10) deposited the rent pro- days of the change. 2018. The Commission ceeds into his operating dismissed without prej- account. Mr. Mayo is- udice allegations that Continued 14 Real Estate Bulletin October 2018 If you are a BIC or BIC eligible, to maintain your BIC status you must take the Broker-in-Charge Update Course (BICUP) + an Elective. Do not take the General Update Course - it will not satisfy your BIC CE requirements. sued 32 non-sufficient funds checks overages in the tenant security deposit the tenant’s tenant security deposit for to owner-clients from his operating account. a period where the tenant should not account, causing the owner-clients have been responsible for rent. to incur bank service fees. An audit ROBERT EDWARD ROB- showed a trust account shortage of at BINS (Laurinburg) – The Commis- JEAN I. SKELCY (Tryon) – By least $14,663. sion accepted the permanent volun- Consent, the Commission suspended tary surrender of the broker license of the broker license of Ms. Skelcy for a CAREY MARIE MCMUL- Mr. Robbins effective May 9, 2018. period of 12 months effective June 1, LEN (Wrightsville Beach) – By Con- The Commission dismissed, without 2018 and restricted her from further sent, the Commission reprimanded prejudice, allegations that Mr. Rob- engagement in property management. Ms. McMullen effective July 18, 2018. bins violated provisions of the Real The Commission then stayed the sus- The Commission found that Ms. Mc- Estate License Law and Commission pension for a probationary period from Mullen, as broker-in-charge, of In- rules. Mr. Robbins neither admitted June 1, 2018 to May 31, 2019. The tracoastal Realty Corporation, was nor denied misconduct. Commission found that Ms. Skelcy, a notified that a waterproofing project broker-in-charge, failed to provide all was approved at an oceanfront con- WILLIAM FREDERICK requested property management doc- dominium complex where the firm SCHNEIDER (Charlotte) – By uments to the Commission and failed managed rental properties. A tenant Consent, the Commission reprimand- to designate “trust” or “escrow” on de- reserved one of the condominiums for ed Mr. Schneider effective June 15, posit slips, failed to identify the bro- the month but the firm failed to notify 2018. The Commission found that ker’s license number on agency agree- the tenant that the project could affect Mr. Schneider, a broker-in-charge, ments, and failed to deposit security her ability to use the condo’s balcony. entered into a residential lease with deposits within three days of receipt. The firm refunded a significant -por a tenant. Due to the lease terms and The firm also continued to operate tion of the tenant’s rental amount. Mr. Schneider’s acceptance of a full from July 2016 through June 2017, month’s rent payment on the 15th, despite being issued a revenue suspen- HOWARD JOSE MOR- the tenant believed payments were sion by the NC Secretary of State. GAN (Greensboro) – By Consent, due by the 15th of each month. Mr. the Commission suspended the bro- Schneider mistakenly notified the TRINA C. STRICKLAND ker license of Mr. Morgan for a period tenant that she was in arrears with (Tabor City) – By Consent, the Com- of 18 months effective December 1, rent payments. Mr. Schneider caused mission suspended the broker license 2017. Four months of the suspension further confusion at lease termination of Ms. Strickland for a period of six were active with the remainder stayed by referencing different lease termina- months effective November 1, 2018. for a probationary period from April tion dates, and charged rent against The Commission then stayed the 1, 2018 to June 1, suspension effec- 2019. The Com- tive November 1, mission found that Brokers Should Ask Closing Attorneys to Not Disburse Proceeds 2018. The Com- Mr. Morgan failed Without Confirming Disbursement Instructions mission found that to maintain a Brokers are urged to encourage closing lawyers in each transaction not to Ms. Strickland journal and ledger, disburse proceeds other than as specifically authorized in a written document acted as a dual failed to perform signed by the seller. There have been instances of hackers diverting funds agent in a sales monthly reconcil- from real estate transactions. Criminals hack into real estate brokers’ computer transaction and iations, and used databases and monitor email traffic to learn about an impending closing. Hack- attempted to use of unapproved fi- ers may send an email to the lawyer instructing the lawyer to wire the seller’s a standard form nancial software proceeds to a bank account other than the one originally identified. That email “Offer to Purchase programs, which comes from an address that looks like the broker’s or seller’s. The lawyer wires and Contract”, caused a lack of the seller’s proceeds to the criminals’ account. By the time the lawyer learns of “Buyer Possession an audit trail and this crime, the criminals have wired the funds to a foreign bank account. Before Closing Agreement”, and Continued 15 Real Estate Bulletin October 2018 40,000 copies of this public document were printed at a cost of .233 per copy

North Carolina Real Estate Commission PRSRT STD PRSRT STD PRSRT STD PRSRT STD PRSRT STD **Attention** P. O. Box 17100 U.S. POSTAGE U.S. POSTAGE U.S. POSTAGE U.S. POSTAGE U.S. POSTAGE Raleigh, NC 27619-7100 PAID PAID PAID PAID PAID BIC’s and BIC HICKORY, NC HICKORY, NC HICKORY, NC HICKORY, NC HICKORY, NC eligible brokers! PERMIT NO. 104 PERMIT NO. 104 PERMIT NO. 104 PERMIT NO. 104 PERMIT NO. 104

Please update your record to include your current phone number. You can designate PRSRT STD PRSRT STD PRSRT STD PRSRT STD PRSRT STD your phone number as “pub- U.S. POSTAGE U.S. POSTAGE U.S. POSTAGE U.S. POSTAGE U.S. POSTAGE lic” or “private.” Log on to your PAID PAID PAID PAID PAID record at www.ncrec.gov and HICKORY, NC HICKORY, NC HICKORY, NC HICKORY, NC HICKORY, NC provide your phone numbers! PERMIT NO. 104 PERMIT NO. 104 PERMIT NO. 104 PERMIT NO. 104 PERMIT NO. 104

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“Additional Provisions Addendum” to broker a contract for deed transaction. Ms. Strickland managed the subject property without first executing a property management agreement and without having a signed lease agreement. Ms. Strickland, after collecting rent, did not deposit rental proceeds BRYAN GREGORY YURKO in a trust account before remitting the (Raleigh) – By Consent, the Commis- rental proceeds to the owner. sion reprimanded Mr. Yurko effective November 1, 2018. The Commission WFS PROPERTIES LLC found that in 2013, Mr. Yurko, acting (Charlotte) – By Consent, the Com- as listing agent for a property serviced mission reprimanded WFS Properties by a septic tank, advertised the home effective June 15, 2018. The Commis- as having four bedrooms based on the sion found that in July 2015, WFS seller’s representation, and failed to Properties entered into a residential verify the septic permit. When listing lease with a tenant, and due to the lease the property in 2017, the buyer dis- terms and WFS Properties’ acceptance covered that the home was permitted of a full month’s rent payment on the for only three bedrooms. 15th, the tenant believed payments were due by the 15th of each month. WFS Properties notified the tenant that she had to pay on the 1st of each Scan the code below to access the Commission month and mistakenly notified her that she was in arrears. WFS Proper- website from your mobile devices. ties caused further confusion at lease termination by referencing different lease termination dates and charged rent against the tenant’s tenant security deposit for a period where the tenant should not have been responsible for rent.

16 Real Estate Bulletin October 2018