Real Estate Lexington Tennessee

Document Sample
Real Estate Lexington Tennessee Powered By Docstoc
					                                               Department of Commerce and Insurance

                                TENNESSEE REAL ESTATE
                                    An Official Publication of the Tennessee Real Estate Commission

VOLUME: 11                                                                                      NUMBER: 2

What's Your Name?                   A Primer on Escrow                       In this issue:
                                                                             ARELLO Publications         p. 2
         Information printed in     Accounts
previous News-Journals, espe-                                               Not Taking Course for New
                                            By: Bill Stewart                Affiliates Getting Expensive p. 2
cially disciplinary actions, has                TREC Auditor
stimulated a number of calls to             All firms licensed by           Commission to Resume
the Commission’s office. Spe-       TREC, whether for real estate           Monthly Meetings             p. 2
cifically, licensees have been      or time share sales, property
asking what are the most                                                    Disciplinary Actions         p. 3
                                    management or vacation lodg-
frequent complaints concerning      ing operations, are required to        License Numbers
advertising.                        keep escrow bank accounts.
         The three most frequent    These accounts are for the             Required for CE
complaints (which typically come    deposit and maintenance of             Credit
directly from other licensees)      funds held in the firm’s fiduciary             More and more schools
are (1) ads with no firm name,      capacity. Records of deposits          are beginning to send education
(2) ads with no firm phone          and disbursements must be              attendance rosters to TREC by
number and (3) licensees who        kept for at least three years and      an electronic mode.         This
advertise by names other than       are subject to audit by TREC           information is then uploaded to
the names which appear on their     representatives. Firms should          the TREC computer system
licenses.       An example of       assure that escrow bank ac-            automatically.      In order for
Number 3 would be a licensee        counts are properly funded at all      licensees to ultimately obtain
who is licensed as John J.          times. Funds held in a fiduciary       credit for their attendance, it is
McCarren who advertises as          capacity must be on deposit and        imperative that licensees pro-
Joe McCarren (his middle name       available in the escrow account,       vide the sponsors of the
is actually Joseph). In this case   not commingled with other              educational opportunity their
Mr. McCarren would need to          funds, and not depleted by             correct license/file ID number.
change his name with TREC so        unauthorized withdrawals or                    The Commission is in the
that he is licensed as John         bank charges.          All funds       process of promulgating rules
Joseph “Joe” McCarren. The          deposited must be properly             requiring licensees to have their
name change can be accom-           recorded and accounted for by          pocket license cards with them
plished by completing a TREC        the firm.                              when they are providing ser-
Form 1 and providing the $10.00             Earnest monies are ex-         vices for which a real estate
fee to change a personal name.      amples of trust funds. Deposit         license is required and when
                                    and disbursement of these              they are attending educational
    All requirements                funds must be timely to the            opportunities. Making sure you
                                    contract and closing dates. All        have your pocket card with you
   for Renewal must                 disbursements must conform to          when you attend education
    be completed by                 the contract. Security deposits        sessions is a good way to
                                    and lease payments received            “practice” having your card with
     Nov. 1, 2002.                  are further examples of trust          you when the new rule requires
                                    Continued Page 2, Column 1             such.
TENNESSEE REAL ESTATE NEWS-JOURNAL             FALL-WINTER 2001                              PAGE 2

A Primer on Escrow Accounts from     compiling two publications for     their licenses become invalid.
Page 1
                                     2002. The DIGEST provides                   Those individuals whose
funds to be deposited to the         information on requirements to     licenses are invalid must cease
escrow bank account and              obtain a real estate license in    and desist the practice of real
disbursed based on contractual       most states and jurisdictions,     estate and retest and reapply
agreements.                          which states recognize reci-       for a license if they wish to
        For vacation lodging op-     procity, and lots of information   reenter the real estate profes-
erations, all funds received for a   on statistics and post license     sion.
customer to reserve or occupy a      requirements for real estate                Recent data indicates
rental unit must be deposited to     practitioners.                     the average cost for the course
and maintained in the escrow                 The DIRECTORY pro-         is $171.17 and the average
bank account until that customer     vides information concerning       penalty owed is $400.00. Many
has checked out. Multiple units      contacts for regulatory agencies   individuals have owed and paid
and multiple reservations of         and ARELLO Association infor-      $600.00.
each unit at any point in time       mation.
make detailed records keeping                Both publications are
                                                                        Commission to
a necessity. Bank statement          available for purchase. Orders     Resume Monthly
reconciliation should be coordi-     can be placed by mail to:
nated with the accounting records            ARELLO Publication
on which monthly reports to unit                    Fulfillment                 In an effort to adhere to
owners are based. Reservation                P. O. Box 230159           requests for state agencies to
deposits must be maintained in               Montgomery, AL 36123-      minimize travel expenses, the
the escrow account until they                       0159                Commission attempted to
become earned rental revenue.        or by FAX at 334-260-2903          change their meeting schedule
Rental revenue due a unit owner              The DIRECTORY costs        from monthly to once every
must remain in the escrow            are $15.00 each plus $3.00         other month. After a trial period,
account until properly paid to       shipping/handling each and the     it was determined that licensees
that owner. Commissions or           DIGEST costs are $40.00 each       and new applicants were not
expenses deducted from rental        plus $7.00 shipping/handling       served well by the new schedule
revenue and due the firm must        each.                              and the Commission voted to
be disbursed at least monthly.
                                     Not Taking Course                  return to the monthly meetings.
Sales and hotel/motel taxes are
                                                                        Following is the Commission’s
additional examples of amounts       for New Affiliates                 meeting schedule for 2002:
that may be included in funding
                                     Getting Expensive                          January        9 & 10
requirements depending on firm
                                                                                February       6&7
                                       At least 25% of new                      March          6&7
        Proper accounting pro-
                              affiliate licensees do not take                   April          3&4
cedures will assure accurate
                              the Course for New Affiliates                     May            8&9
escrow account records.
                              within one year of being                          June           5&6
Monthly reconciliation of the
                              licensed. Individuals who com-                    July           10 & 11
escrow account bank statement
                              plete the course between one                      August         7&8
will assure that proper funding of
                              year of licensure and 18 months                   September 4 & 5
the escrow account is main-
                              of licensure are charged a                        October        TBA
                              $100.00 penalty fee for each                      November       6&7
ARELLO Publications month (or part of a month) the                              December 4 & 5
Available                     course is completed late. Those           If additional meeting days are
      The Association of Real who do not complete the course            required, they will most likely be
Estate License Law Officials by 18 months of licensure are              the days preceding the first
(ARELLO) has just finished paying the ultimate cost in that             dates above.
TENNESSEE REAL ESTATE NEWS-JOURNAL              FALL-WINTER 2001                                      PAGE 3

                           DISCIPLINARY ACTION
SEPTEMBER 2001                                                                         Lic. No. FM241154
                                               SCOTT MUELLER                           Franklin, TN
        ALLEN DECUYPER                         BROKER                          Principal Broker Debbie K. Psillas
        Lic. No. AF245632                      dba TIMBERLINE                  agreed to pay a $500.00 civil
        Nashville, TN                          BROKERAGE                       penalty for failure to advertise
Mr. Decuyper consented to pay a                Lic. No. FM257040               under the name as licensed and
civil penalty of $35,200.00 for                Silver Point, TN                failure to include the firm phone
continuing to perform services that   Principal Broker Scott Muller agreed     number in an advertisement.
require a real estate license after   to pay a civil penalty of $2000.00 for
his license expired on December       the performance of unlicensed                   JOHN L. BLACK
31, 1996.                             activity prior to becoming properly             Lic. No. AF241597
                                      licensed.                                       Brentwood, TN
        DONNA BLEDSOE                                                          Mr. Black agreed to pay a civil
        Lic. No. BR243672                    CAROLYN FERGUSON                  penalty of $250.00 for failure to
        Franklin, TN                         Lic. No. AF268410                 include the firm’s name and phone
Ms. Bledsoe erroneously believed             Nashville, TN                     number in an advertisement.
a completed contract existed and      Ms. Ferguson agreed to pay a civil
failed to submit an offer from a      penalty of $250.00 for failure to                NANCY S. BLACK
second prospective buyer. For this    include the firm name and firm                   Lic. No. BR228612
error, Ms. Bledsoe consented to       phone number in an advertisement.                Brentwood, TN
pay a civil penalty of $1000.00 and                                            Ms. Black agreed to pay a civil of
be on probation for one year. The            LUCY PETRE                        $250.00 for an advertisement which
civil penalty can be suspended if            Lic. No. PB205241                 did not contain the firm name or firm
she completes 30 hours of educa-             Jefferson City, TN                phone number.
tion covering contracts and/or real   Ms. Petre agreed to pay a civil
estate law.                           penalty of $250.00 for failure to                 EAGLE PROPERTY MAN-
                                      include the firm name and firm                    AGEMENT, INC.
        KARAN A. HOWARD               phone number in an advertisement.                 Lic. No. VLS254741
        Lic. No. AF221585                                                               Pigeon Forge, TN
        Nashville, TN                          JOHN R. ROBIN                   Following an audit of the firm where
Ms. Howard consented to pay a civil            Lic. No. AF273240               a deficit in the escrow account was
penalty of $2000.00 for continuing             JENNIFER ROBIN                  found, Principal Broker Bradley K.
to perform services which required             Lic. No. AF278916               Walker agreed to the following: (1)
a real estate license after her                Knoxville, TN                   pay a civil penalty of $7000.00, (2)
license expired December 31,          Mr. and Ms. Robin agreed to jointly      have the firm be on probation for
2000.                                 pay a $250.00 civil penalty for          one year, (3) fully fund the escrow
                                      failure to disclose in writing them-     account, and (4) provide the
        JASON R. MANNING              selves as real estate licensees          Commission with quarterly recon-
        Lic. No. AF269237             when selling their own property.         ciliation reports while on probation.
        Nashville, TN
Mr. Manning agreed to pay a civil            KENNETH EPPERSON                         RE/MAX COLONIAL
penalty of $500.00 for misrepresen-          Lic. No. AF274093                        REALTY
tation and improper conduct.                 Henderson, TN                            Lic. No. FM256222
                                      Mr. Epperson agreed to pay a civil              Clarksville, TN
       ROY HELMS                      penalty of $250.00 for failure to        After an audit of the firm where it
       Lic. No. AF251300              include the firm name and firm           was found that earnest money was
       Morristown, TN                 phone number in an advertisement.        not timely deposited and checks
Mr. Helms agreed to pay a civil                                                drawn on the escrow account were
penalty of $250.00 for failure to             PRESTIGE REALTY &                returned for insufficient funds,
include the firm’s name and phone             PROPERTY MANAGEMENT,             Principal Broker Jannette Moss
number in an advertisement.                   INC
TENNESSEE REAL ESTATE NEWS-JOURNAL                 FALL-WINTER 2001                                     PAGE 4
agreed to pay a civil penalty of        real estate license after her license   civil penalty of $250.00 for allowing
$1000.00.                               expired on December 31, 2000.           an assistant whose real estate
                                                                                license was inactive to provide
         RE/MAX COLONIAL                        McKEE REALTY, LLC               services which require an active
         REALTY                                 Lic. No. 249968                 license and for failure to include the
         Lic. No. FM256707                      Lexington, TN                   firm name in an advertisement.
         Clarksville, TN                Principal Broker Shirley S. McKee
Following an audit of the firm where    consented to pay a civil penalty of              TIMBER TOPS
it was found earnest money was not      $2,000.00 for continuing to operate              Lic. No. 255489
timely deposited and earnest money      a firm without a licensed principal              VLS Applicant
and operating expenses were co-         broker.                                          Sevierville, TN
mingled, Principal Broker Ginny                                                 The respondent, at the time of
McKenzie agreed to pay a civil                   KARL C. STEAKLEY               audit, was found to have a
penalty of $250.00.                              Lic. No. 249069                substantial escrow account deficit
                                                 Brentwood, TN                  and was also operating an unli-
       EAST TENNESSEE                   Mr. Steakley consented to pay a         censed branch office. For these
       REALTY, INC.                     civil penalty of $2,600.00 for          actions the respondent agreed to:
       Lic. No. FM 256067               continuing to perform services          (1) pay a civil penalty of $11,100.00;
       Gatlinburg, TN                   which require a real estate license     (2) fully fund the escrow account
Principal Broker Jim Helms con-         after his license expired.              and make restitution of all monies
sented to pay a civil penalty of                                                due by 09-30-01; (3) be on
$500.00 after it was determined                 JOHN DRINNON                    probation for a period of one year;
there were misrepresentations of                Lic. No. 51068                  and (4) provide the Commission
property conditions for property                Germantown, TN                  reconciliation reports on a quarterly
managed by the firm.                    Mr. Drinnon consented to pay a civil    basis while on probation.
                                        penalty of $1,500.00 for failing to
         J. ALAN McINTURFF              make timely responses to a                      GREAT SMOKIES
         Lic. No. AF218646              complaint filed against him.                    MANAGEMENT CORP.
         Unicoi, TN                                                                     dba Echota Real Estate
Mr. McInturff consented to pay                   JOHN A. MOODY                          Lic. No. 251811
$1000.00 for failing to provide                  Lic. No. 264876 &                      Sevierville, TN
property disclosure or inform buyer’s            BLUE RIDGE                     The respondent, at the time of
of their rights and obligations with             PROPERTIES, INC.               audit, was found to have a
regard to such disclosure.                       Lic. No. 7836                  substantial escrow account deficit.
                                                 Kingsport, TN                  For this action Principal Broker
NOVEMBER 2001                           Respondents consented to jointly        Chad McCarter agreed to: (1) pay a
                                        pay a civil penalty of $1,000.00 for    civil penalty of $3,000.00; (2) fully
        COLDWELL BANKER                 failure to handle earnest money as      fund the escrow account by 10-31-
        MCKEE REALTY                    described in the contract.              01; (3) be on probation for a period
        Lic. No. F256413                                                        of one year; and (4) provide the
        Lexington, TN                           JOHN COTHRAN                    Commission reconciliation reports
Principal Broker Shirley S. McKee               Lic. No. 275792                 on a quarterly basis while on
consented to pay a civil penalty of             Brentwood, TN                   probation.
$10,600.00 for continuing to oper-      Mr. Cothran consented to pay a civil
ate a real estate firm after her        penalty of $350.00 for failing to               AAA REAL ESTATE
license had expired, thereby ren-       exercise reasonable skill and care              Lic. No. 57857
dering the firm’s license invalid.      in providing square footage require-            Memphis, TN
                                        ments contained in restrictive          Principal Broker Charles Holland
        SHIRLEY S. McKEE                covenants.                              agreed to pay a civil penalty of
        Lic. No. 231777                                                         $1,500.00 for failing to obtain
        Lexington, TN                         MARK McDONALD                     written agency disclosure, failing to
Ms. McKee consented to pay a civil            Lic. No. 57942                    obtain written personal interest
penalty of $3,400.00 for continuing           Nashville, TN                     disclosures and failing to retain
to perform services which require a     Mr. McDonald consented to pay a         accurate records of escrow funds.
TENNESSEE REAL ESTATE NEWS-JOURNAL                  FALL-WINTER 2001                                    PAGE 5
                                          $500.00 for disbursing funds from               Lic. No. 249904
        ACTION HOMES                      escrow for repairs without first                Sweetwater, TN
        Lic. No. 240469                   obtaining an amendment or adden-       Principal Broker Carol Harrison
        Smyrna, TN                        dum to the contract pemitting such     agreed to pay a civil penalty of
Principal Broker Patricia Lee agreed      disbursement.                          $250.00 for failing to obtain a
to pay a civil penalty of $1,400.00                                              signed confirmation of agency
for paying commission to an                      CENTURY 21 ACT III              status notifying seller of default to
unlicensed person.                               REALTY INC.                     facilitator status.
                                                 Lic. NO. 58649
         HASTINGS REALTY                         Johnson City, TN                       KENSINGTON
         Lic. No. 246378                  Principal Broker Lee E. Sowers                PROPERTIES
         Dyersburg, TN                    agreed to pay a civil penalty of              Lic. No. 256125
Principal Broker Lee M. Hastings          $500.00 for failing to properly               Memphis, TN
agreed to pay a civil penalty of          account for an earnest money           Principal Broker Sherryl B. Oates
$750.00 for failure to document           deposit.                               agreed to pay a civil penalty of
personal interest in a transaction,                                              $250.00 for not timely notifying the
failing to keep documents for the                 BOB PARKS AUCTION              Commission of a business address
required three years, and failing to              Unlicensed                     change.
timely account for earnest money                  Murfreesboro, TN
deposits.                                 Respondent agreed to pay a civil              REAL ESTATE
                                          penalty of $500.00 for auctioning             ASSOCIATES OF
        FOREST HILLREALTORS               real property without a real estate           NASHVILLE, LLC
        Lic. No. 58954                    license.                                      Lic. No. 4165
        ERNEST GENDRON                                                                  LaVergne, TN
        Lic. No. 16699                           STEWART INVESTMENT              Principal Broker Ivan E. Luttrell
Respondents agreed to jointly pay                PROPERTIES                      agreed to pay a civil penalty of
a civil penalty of $1,000.00 for                 Lic. No. 255842                 $250.00 for failing to display a
paying a commission to an unli-                  Memphis, TN                     business sign on the outside of his
censed person.                            Principal Broker Larry L. Stewart      place of business.
                                          agreed to pay a civil penalty of
          PHOENIX REALTY                  $350.00 for failing to properly make           BRITTON ENTERPRISES
          Lic. No. 255820                 a change of address and failing to             Lic. No. 57809
          Murfreesboro, TN                have an office sign.                           Memphis, TN
Principal Broker Barry E. Dotson                                                 Principal Broker William J. Britton,
agreed to pay a civil penalty of $500            DOWN HOME REALTY                III agreed to pay a civil penalty of
for failing to timely account for trust          Lic. No. 253320                 $250.00 for failure to display a sign
funds received.                                  Graysville, TN                  on the outside of his place of
                                          Principal Broker Charlotte Brown       business.
         NORMAN LEE REAL                  agreed to pay a civil penalty of
         ESTATE BROKER &                  $250.00 for failing to disclose
         AUCTION                          agency status.
         Lic. No. 6914
         Madisonville, TN                         WILLOUGHBY
                                                                                   All Requirements
Principal Broker James P. Lee
agreed to pay a civil penalty of $500
                                                  REALTORS, INC.
                                                  Lic. No. 244713
                                                                                    for License Re-
for failing to document agency                    Memphis, TN                       newal Must Be
status in two transactions.               Principal Broker Anthony Willoughby
                                          agreed to pay a civil penalty of           Completed by
       PROFESSIONALREALTY                 $250.00 for failing to properly
       LLC                                deposit earnest money.                      Nov. 1, 2002
       Lic. No 254783
       Clarksville, TN                           VALLEY REALTY &
Principal Broker Robert Powers                   AUCTION LLC
agreed to pay a civil penalty of                 dba GMAC REAL ESTATE
TENNESSEE REAL ESTATE NEWS-JOURNAL                           FALL-WINTER 2001                                                           PAGE 6

        Tennessee Real Estate                                                                                                   Presorted Standard
            Commission                                                                                                             U. S. Postage
      500 James Robertson Parkway, Suite 180                                                                                           Paid
             Nashville, TN 37243-1151                                                                                             Nashville, TN
                                                                                                                                  Permit # 1446

       Department of Commerce and Insurance                                                                  TREC Contact Information:
               Tennessee Real Estate                                                                         (615) 741-2273 or 1-800-342-4031
           is published quarterly by the                                                                     Personnel & Areas of Responsibility
        Tennessee Real Estate Commission
                                                                                                             Licensing Section:
  Members of the Commission:                                                                                           Hester Curtis
  TED KOEHNER, Chairman                                                                                                Gil Dyer
  Bristol                                                                                                              Rachel Fowler
                                                                                                                       Conell House
  FRANCES ALMANY, Vice Chairman                                                                                        Karen Jarrett
  Hendersonville                                                                                                       Andrea Pratt
                                                                                                                       Donna Swanson
                                                                                                                       Dan Webb
                                                                                                             Records Management Section:
  BOBBI S. GILLIS                                                                                                      Bill Capps
  Memphis                                                                                                              Maxine Poteete
                                                                                                                       Rolanda Stewart
  ADREN GREENE                                                                                               Complaint Section:
  Morristown                                                                                                           Shirley Hines
                                                                                                                       Sue Kerley
                                                                                                             Administrative Section:
                                               "The Tennessee Department of Commerce and                               Joan Burk
                                               Insurance is committed to principles of equal                           Judy Elmore
                                               opportunity, equal access, and affirmative action."                     Bruce Lynn
                                               Contract the EEO Coordinator or ADA                                     Sharon Peebles
  L. A. WESTLEY                                Coordinator         (615) 741-0480, for TDD 615-              Education Section:
  Memphis                                      741-7190                                                                Pat Little
                                                                                                                       Kathy Riggs
  Nashville                                                                                                  Errors & Omissions Insurance Contractor:
                                                         TENNESSEE DEPARTMENT OF COMMERCE
  Editor-in-Chief: BRUCE E. LYNN,                        AND INSURANCE AUTHORIZATION NO.                     MEDMARCCASUALTYINSURANCE
  Executive Director                                     335101, Revised 05/01. This public document was
                                                         promulgated for 38,000 copies per issue,at a cost
                                                         of 12.2 cents per copy, paid by the Real Estate     1-888-248-2444 OR (615) 248-2444
  Editor: KATHY M. RIGGS, PH.D.,                         Education and RecoveryFund.
  Education Director

Description: Real Estate Lexington Tennessee document sample