Alabama Real Estate Sales Contract by int17345

VIEWS: 167 PAGES: 13

More Info
									                                         BEFORE THE

                                     STATE OF ALABAMA

                                 REAL ESTATE COMMISSION

IN THE MATTER OF THE                           FORMAL COMPLAINT #1
COMPLAINT AGAINST

Jane Broker, Qualifying Broker, House Realty, Inc., 1523 4th Avenue North, Bessemer, Alabama
35020

House Realty, Inc., 1523 4th Avenue North, Bessemer, Alabama 35020

     Respondents
                                          COMPLAINT

The Alabama Real Estate Commission, The Complainant, by D. Philip Lasater, Executive
Director, for cause of action against the above named Respondents, charges and alleges as
follows:
                                                I.

That the Complainant is the State of Alabama governmental agency charged with the
responsibility and authority to carry out the purposes of the Alabama Real Estate License Law
of 1951, as amended.

                                               II.

Respondent, Jane Broker, was issued a real estate broker’s license on
December 17, 2001, and has been so licensed at all times pertaining to the charges herein.
Respondent, House Realty, Inc., was licensed as a real estate company on October 1, 2004,
and has been so licensed at all times pertaining to the charges herein.

                                               III.

That the Complainant is informed and believes, and on such information and belief alleges that,
since the issuance of said license, the Respondents have been guilty of unlawful acts, within
the purview of the Code of Alabama 1975, Title 34, Chapter 27, as amended, as set out below:


                                   ALLEGATIONS OF FACT

      Ms. Sherry Braxton (herein referred to as the seller) owned the residential property at 309
21st Street, Bessemer, Alabama 35020, and had rented it to Bernetta Whetstone (herein
referred to as the buyer) for many years in the past. In about April of 2005 the two of them
agreed that the seller would sell the house to the buyer, and they sought the help of
Respondent Broker (herein referred to as Respondent) to assist them with the transaction. The
house was in need of some substantial repairs. Respondent asked about the negotiations and
was informed by both the buyer and seller that the seller wanted $20,000 from the sale.
Formal Complaint #1
Jane Broker and House Realty, Inc., Respondents
Page 2

When Respondent discussed the terms of the sale with the seller they came to an
understanding that the seller wanted to clear $20,000. During this process Respondent
obtained the amount of the pay-off on the existing mortgage loan and had further discussions
with the seller about the terms of the sale. Respondent told the seller that the buyer had been
approved for a $55,000 loan because the buyer was going to get money to do repairs on the
home. This was a material misrepresentation, because the buyer received no funds from the
closing.

When Respondent discussed the terms of the sale with the buyer Respondent made a material
misrepresentation to the buyer that there would be at least $9,000 of funds available from the
loan proceeds to do some repairs. In fact the buyer received no funds from the closing.
Respondent prepared a written sales contract for the parties showing a purchase price of
$55,000. Respondent took a loan application from the buyer and helped her obtain a mortgage
loan in the amount of $55,000. When the transaction closed the HUD-1 form shows that the
seller got $19,000, but because of some adjustments by the closing attorney, the seller actually
got $20,000. The buyer did not receive her promised funds. Because of this, Respondent
rebated the buyer a check for $2,500 outside the closing.

The HUD-1 form shows that Respondent collected a real estate commission in the amount of
$21,885.87 on this sale. The seller had unwittingly entered into a net listing agreement with the
Respondent. The seller got the $20,000 she wanted to net from the sale, and House Realty,
Inc., Respondent’s company, got the rest of the proceeds after the other settlement charges
were paid. There is also the matter of an addendum to the sales contract, signed by the seller
and purchaser, agreeing to a commission in the amount of $22,500. Neither the purchaser nor
the seller saw that amount of commission on the addendum at the time they signed same.
Also, there was a file
copy of an estimated closing costs form prepared by Respondent. This form contains empty
blank spaces under “sales fee.”

One week after the closing the buyer requested a copy of the sales contract form from
Respondent and received same. The sales contract form was signed by the buyer on April 21,
2005 and the settlement date on the closing documents was May 26, 2005. The buyer had not
received a copy of the sales contract form until this time. Further, the seller did not receive a
copy of the sales contract that she had signed on April 26, 2005. As of the date of an office
inspection at the Respondents’ offices and an interview by Commission staff with Mrs. Braxton
on October 26, 2005, she still had not received a copy of the sales contract from Respondent.

The buyer gave Respondent a check in the amount of $500 as earnest money on April 25,
2005, made out to House Realty, Inc.. These funds were not deposited into an escrow or trust
account. Respondent indicated during the office inspection that she does not have a trust
account because she only deals with buyers as their agent and listing companies hold trust
funds.


                                      Count(s) go here.

Formal Complaint #1
Jane Broker and House Realty, Inc., Respondents
Page 3

         Wherefore a citation will be issued by the Alabama Real Estate Commission to the
Respondents, notifying Respondents of the time, date, and place of the hearing of this
complaint before the members of the Alabama Real Estate Commission. The Respondents
shall have the opportunity to be heard, to be represented by counsel at Respondents’ own
expense, to present evidence and offer testimony in Respondents’ own behalf, and to examine
witnesses. All testimony shall be made under oath and all evidence shall become a matter of
official record.

      The Complainant prays that at such hearing and upon the proofs adduced thereat,
Respondents will be declared guilty of unlawful acts as defined by the Code of Alabama 1975,
as amended, and the Commission revoke, suspend, or take other such action pertaining to the
Respondents’ right and authority to engage in the business, occupation, or calling of a real
estate company and/or broker in the State of Alabama as is just and proper. The members of
the Commission shall have the right to consider any prior violation in determining the penalty to
be imposed should Respondents be found guilty of the charges alleged in the instant Formal
Complaint.


In witness whereof, I have hereunto set my hand and the seal of the Alabama Real Estate
Commission this ______day of _________________2005.


                                             D. Philip Lasater, Executive Director
                                             ALABAMA REAL ESTATE COMMISSION

Sworn to and subscribed before me this ______day of __________________,
2005.
                                   ___________________________________
                                            NOTARY PUBLIC
Formal Complaint #1
Jane Broker and House Realty, Inc., Respondents
Page 4


                                      Certificate of Service

I, D. Philip Lasater, Executive Director of the Alabama Real Estate Commission, certify that I
have served the above named Respondent with a copy of the above Complaint by causing a
copy of same to be placed in the United States Mail, Certified, Return Receipt Requested,
addressed to the Respondent at the address that appears above.


                                  D. Philip Lasater
                                  Executive Director
IN THE MATTER OF THE                           FORMAL COMPLAINT #1
COMPLAINT AGAINST

Jane Broker, Qualifying Broker, House Realty, Inc., 1523 4th Avenue North, Bessemer,
Alabama 35020

House Realty, Inc., 1523 4th Avenue North, Bessemer, Alabama 35020

     Respondents


                                       COUNT #1

Respondents, House Realty, Inc. and Jane Broker violated the Code of Alabama 1975,
as amended, Section 34-27-36 (a)(20) in that they accepted a net listing agreement in
this transaction.

                                       COUNT #2

Respondents, House Realty, Inc. and Jane Broker violated the Code of Alabama 1975,
as amended, Section 34-27-36 (a)(3) by making a material misrepresentation to the
seller that the buyer was getting a $55,000 mortgage loan to have money for repairs,
when the buyer received no money from the closing.

                                       COUNT #3

Respondents, House Realty, Inc. and Jane Broker violated the Code of Alabama 1975,
as amended, Section 34-27-36 (a)(3) by making a material misrepresentation to the
buyer that she would receive some $9,000 from the closing to make repairs.

                                       COUNT # 4

Respondents, House Realty, Inc. and Jane Broker violated Alabama Real Estate
Commission Rule 790-X-3-.04(1) and (2) via the Code of Alabama 1975, as amended,
Section 34-27-36 (a)(19) by preparing an estimate of closing costs that failed to include
the sales/broker’s commission of $21,885.87 that was charged at the closing.

                                       COUNT # 5

Respondents, House Realty, Inc. and Jane Broker violated the Code of Alabama 1975,
as amended, Section 34-27-36 (a)(10) by failing to voluntarily furnish a copy of the sales
contract to the buyer and seller within reasonable promptness.


                                       COUNT #6

Respondents, House Realty, Inc. and Jane Broker violated the Code of Alabama 1975,
as amended, Section 34-27-36 (a)(12) by paying the purchaser a rebate in the amount
of $2,500 outside the closing of the transaction.
Formal Complaint #1 Counts
Jane Broker and House Realty, Inc., Respondents
Page 2

                                       COUNT #7

Respondents, House Realty, Inc. and Jane Broker violated the Code of Alabama 1975,
as amended, Section 34-27-36 (a)(8) b. in their failure to deposit and account for at all
times all funds belonging to or being held for others, in a separate federally insured
account or accounts in a financial institution located in Alabama.
                              BEFORE THE STATE OF ALABAMA

                                 REAL ESTATE COMMISSION

IN THE MATTER OF THE                             FORMAL COMPLAINT #2
COMPLAINT AGAINST

Gerald Salesman, Salesperson at the time of the allegations herein with AAAA Realty, currently
licensed with CCCC LLC, Montgomery, Alabama

Bill Broker, Qualifying Broker at the time of the allegations herein, Current Business Address:
DDDD Realty, Montgomery

         Respondents

                                          COMPLAINT

       The Alabama Real Estate Commission, The Complainant, by D. Philip Lasater,
Executive Director, for cause of action against the above named Respondents, charges and
alleges as follows:
                                                 I.

       That the Complainant is the State of Alabama governmental agency charged with the
responsibility and authority to carry out the purposes of the Alabama Real Estate License Law
of 1951, as amended.

                                                II.

          Respondent Gerald Salesman was issued a Salesperson’s license on November 11,
1981. Mr. Salesman’s Qualifying Broker at the time of the alleged incident was Bill Broker.
Respondent Broker was issued a real estate broker’s license on October 1, 1986.
Respondents have been licensed as a salesperson and as a broker respectively at all times
pertinent to the charges herein.

                                                III.

        That the Complainant is informed and believes, and on such information and belief
alleges that, since the issuance of said license, the Respondents have been guilty of unlawful
acts, within the purview of the Code of Alabama 1975, Title 34, Chapter 27, as amended, as set
out below:

                                    ALLEGATIONS OF FACT

        Ron and Pat Wolfe, owners of Pro LLC (the Wolfes herein) are investors who buy
properties, fix them up and re-sell them at a profit. Between May 2007 and present the Wolfes
worked with Gerald Salesman on several transactions. One transaction was on the property
located at 215 West Woodland in Montgomery, Alabama. On this property Gerald Salesman
and co-worker Steve Licensee agreed to buy it together for the purpose of reselling it at a profit
to be divided 50/50 between them. Gerald Salesman handled all the details, even telling Steve
Formal Complaint #2
Gerald Salesman and Bill Broker, Respondents
Page 2

Licensee he already had a buyer for the property who was ready to close within two weeks.
Steve Licensee put up the cash to purchase the property. Gerald Salesman was to make
repairs and perform other services. This transaction was closed on June 18, 2007, for a sale
price of $14,900.00. Later that same day Steve Licensee sold the property to the Wolfes for
$49,900.00

        The Wolfes were given a type-written letter by Gerald Salesman prior to their purchasing
the property in which Steve Licensee guarantees the Wolfe’s at least a net of $15,000 when the
Wolfes resell it. This letter bears the apparent signature of Steve Licensee. Gerald Salesman
authored the letter, and signed Steve Licensee’s name. Steve Licensee did not know about this
guarantee. Steve Licensee never authorized Gerald Salesman to sign his name on this
document. Steve Licensee only gave the closing attorney permission to represent him and sign
documents for him. Steve Licensee is confined to a wheelchair, and is homebound most of the
time with serious health problems. He played no active role in this transaction, and knew
nothing about it beyond his agreement with Gerald Salesman to buy and resell the property.

          Gerald Salesman did not tell the Wolfes that Steve Licensee was a coworker at AAAA
Realty. Gerald Salesman did not tell the Wolfes or disclose to them in writing that he and Steve
Licensee had a business arrangement concerning this property. After their purchase the Wolfes
listed it for sale with Gerald Salesman. He placed a for sale sign on the property showing some
information including his telephone number. The sign did not show the name of his company,
AAAA Realty, and it did not identify him in any way as a licensed salesperson.

        Respondent Bill Broker alleged that he was aware Steve Licensee initially purchased the
property, but he was never informed of it being sold to the Wolfes. He was also not informed of
the fact that the Wolfes offered it for sale with Gerald Salesman. He says no paperwork was
turned in at his office that might have alerted him about this transaction. Respondent Bill Broker
stated he did not give Gerald Salesman or Steve Licensee permission to conduct transactions
outside the company.

                                    Count(s) go here
         Wherefore a citation will be issued by the Alabama Real Estate Commission
to the Respondents, notifying Respondents of the time, date, and place of the hearing of this
complaint before the members of the Alabama Real Estate Commission. The Respondents
shall have the opportunity to be heard, to be represented by counsel at Respondents’ own
expense, to present evidence and offer testimony in Respondents’ own behalf, and to examine
witnesses. All testimony shall be made under oath and all evidence shall become a matter of
official record.

      The Complainant prays that at such hearing and upon the proofs adduced thereat,
Respondents will be declared guilty of unlawful acts as defined by the Code of Alabama 1975,
as amended, and the Commission revoke, suspend, or take other such action pertaining to the
Respondents’ right and authority to engage in the business, occupation, or calling of a real

Formal Complaint #2
Gerald Salesman and Bill Broker, Respondents
Page 3
estate corporation, broker, or salesperson in the State of Alabama as is just and proper. The
members of the Commission shall have the right to consider any prior violation in determining
the penalty to be imposed should Respondents be found guilty of the charges alleged in the
instant Formal Complaint.


       In witness whereof I have hereunto set my hand and the seal of the Alabama Real
Estate Commission this ___________day of ___________________2008.



                                     D. Philip Lasater, Executive Director
                                     ALABAMA REAL ESTATE COMMISSION

              Sworn to and subscribed before me this ______day of __________________,
2008.

                             ___________________________________
                                   NOTARY PUBLIC


                                      Certificate of Service

        I, D. Philip Lasater, Executive Director of the Alabama Real Estate Commission, certify
that I have served the above named Respondents with a copy of the above Complaint by
causing a copy of same to be placed in the United States Mail, Certified, Return Receipt
Requested, addressed to the Respondents at the addresses that appear above.




                                     D. Philip Lasater
                                     Executive Director
IN THE MATTER OF THE                             FORMAL COMPLAINT #2
COMPLAINT AGAINST

Gerald Salesman, Salesperson at the time of the allegations herein with AAAA Realty,
currently licensed with CCCC LLC, Montgomery, Alabama

Bill Broker, Qualifying Broker at the time of the allegations herein, Current Business
Address: DDDD Realty, Montgomery

         Respondents


                                        COUNT #1

        In his position as licensed real estate salesperson, Respondent Gerald Salesman
violated the Code of Alabama 1975, as amended, Section 34-27-36 (a) (3) by making a
material misrepresentation in the form of a written letter stating to the Wolfes that they
would be guaranteed a net of at least $15,000 when they sold the property. He made
this misrepresentation by signing Steve Licensee’s name and representing it to be
signed by Steve Licensee without Mr. Licensee’s knowledge or consent, making the
guarantee a false statement.

                                        COUNT #2

        In his position as licensed real estate salesperson, Respondent Gerald Salesman
violated the Code of Alabama 1975, as amended, Section 34-27-36 (a)(19) by failing to
comply with Section 34-27-84 (a) (6) in his failure to disclose in writing to the Wolfes
that he was acting on behalf of himself in that he had a personal interest in the property
being sold to them. Gerald Salesman had this personal interest by way of his
agreement with Steve Licensee to buy and resell the property.

                                        COUNT #3

        In his position as licensed real estate salesperson, Respondent Gerald Salesman
violated the Code of Alabama 1975, as amended, Section 34-27-36 (a) (6) by publishing
or causing to be published an advertisement in the form of a for sale sign which failed to
identify Gerald Salesman as a licensed salesperson.

                                        COUNT #4

        In his position as Qualifying Broker for Respondent Gerald Salesman,
Respondent Bill Broker violated the Code of Alabama 1975, as amended, Section 34-27-
36 (a)(19) by failing to comply with Section 34-27-34 (a) (2) in his failure to see that the
transaction in which Gerald Salesman and Steve Licensee sold the property to the
Wolfes complied with the Alabama Real Estate License Law, as amended. Specifically,
Bill Broker is responsible for the actions described in Counts #1 through #3 herein.
                                       BEFORE THE

                                  STATE OF ALABAMA

                              REAL ESTATE COMMISSION

IN THE MATTER OF THE                                FORMAL COMPLAINT #3
COMPLAINT AGAINST

Sam Broker, Qualifying Broker, M-L Realty LLC, 1100 South College Street, Suite 203,
Auburn, Alabama 36832

M-L Realty LLC, 1100 South College Street, Suite 203, Auburn, Alabama 36832

       Respondents
                                       COMPLAINT

        The Alabama Real Estate Commission, The Complainant, by D. Philip Lasater,
Executive Director, for cause of action against the above named Respondents, charges and
alleges as follows:
                                              I.

       That the Complainant is the State of Alabama governmental agency charged with the
responsibility and authority to carry out the purposes of the Alabama Real Estate License
Law of 1951, as amended.
                                               II.

       Respondent, Sam Broker, was licensed as a real estate broker on or about February
5, 1999, and has been so licensed at all times pertinent to the charges alleged herein.
Respondent M-L Realty LLC was licensed as a company on June 23, 2003.

                                             III.

        That the Complainant is informed and believes, and on such information and belief
alleges that, since the issuance of said license, the Respondents have been guilty of unlawful
acts, within the purview of the Code of Alabama 1975, Title 34, Chapter 27, as amended, as
set out below:

                                ALLEGATIONS OF FACT

       The commission office has received letters of complaint from three consumers, all of
whom had dealings with Respondents. The Respondents were providing property
management services to the public, and all the complaints arose out of these activities.
Additionally, the Respondents were providing some of these services by way of a company
named T Properties. This company was operating without a real estate company license
issued by the Commission.
Formal Complaint #3
Sam Broker and M-L Realty, LLC., Respondents
Page 2

       John Lazinski was a tenant in a property being managed by Respondents. He was
refunded a security deposit in the amount of $1,200 by a check drawn on the Respondent’s
“Operating Account.” This check was returned by the bank and marked non-sufficient
funds. As of the date of the filing of this complaint Mr. Lazinski does not have his money.

      Judith Jackson is the owner of a property being managed by Respondents under the
name of T Properties. She has complained that Respondents have not accounted to her for
some $4,078 in rental payments and security deposits she is due.

        Tommy Vo is the owner of a property being managed by Respondents. He was paid
rental proceeds in the amount of $1,175 by a check drawn on the Respondent’s “Operating
Account.” This check was returned by the bank and marked non-sufficient funds. As of
the date of the filing of this complaint Mr. Vo has not received an accounting or remittance
of this and some other rental payments he is due.

        On September 25, 2006, a Commission auditor and investigator began an audit of
Respondents’ records, but that audit was not completed because it was cut short by Sam
Broker. Subsequent demands from the Commission office to produce the books and
records, including a hand-delivered letter on Oct. 5, 2006, have gone without compliance.
As a result a complete audit has not been done as of the date of the filing of this complaint.
The part of the audit that was completed showed commingling of funds to be held in trust
for others with the Respondents’ own funds. It further showed a shortage of funds
belonging to others in the approximate amount of $4,605.38.

                                      Count(s) go here.

        Wherefore a citation will be issued by the Alabama Real Estate Commission
to the Respondents, notifying Respondents of the time, date, and place of the hearing of this
complaint before the members of the Alabama Real Estate Commission. The Respondents
shall have the opportunity to be heard, to be represented by counsel at Respondents’ own
expense, to present evidence and offer testimony in Respondents’ own behalf, and to
examine witnesses. All testimony shall be made under oath and all evidence shall become a
matter of official record.

          The Complainant prays that at such hearing and upon the proofs adduced thereat,
Respondents will be declared guilty of unlawful acts as defined by the Code of Alabama
1975, as amended, and the Commission revoke, suspend, or take other such action
pertaining to the Respondents’ right and authority to engage in the business, occupation, or
calling of a real estate instructor, company, broker, or salesperson in the State of Alabama as
is just and proper. The members of the Commission shall have the right to consider any
prior violation in determining the penalty to be imposed should Respondents be found guilty
of the charges alleged in the instant Formal Complaint.
Formal Complaint #3
Sam Broker and M-L Realty, LLC., Respondents
Page 3




              In witness whereof I have hereunto set my hand and the seal of the Alabama
Real Estate Commission the ______day of _________________2006.



                                    D. Philip Lasater, Executive Director
                                    ALABAMA REAL ESTATE COMMISSION


Sworn to and subscribed before me this ______day of __________________, 2006.


                             ___________________________________
                                   NOTARY PUBLIC

                                   Certificate of Service

        I, D. Philip Lasater, Executive Director of the Alabama Real Estate Commission,
certify that I have served the above named Respondents with a copy of the above Complaint
by causing a copy of same to be placed in the United States Mail, Certified, Return Receipt
Requested, addressed to the Respondents at the address that appears above.




                                    D. Philip Lasater
                                    Executive Director
IN THE MATTER OF THE                                 FORMAL COMPLAINT #3
COMPLAINT AGAINST

Sam Broker, Qualifying Broker, M-L Realty LLC, 1100 South College Street, Suite 203,
Auburn, Alabama 36832

M-L Realty LLC, 1100 South College Street, Suite 203, Auburn, Alabama 36832

       Respondents


                                        COUNT #1

        Respondents violated the Code of Alabama 1975, as amended, Section 34-27-36
(a)(19) by failing to comply with Section 34-27-2 (a)(5) which specifies that a real estate
company such as T Properties is to be licensed by the commission.

                                        COUNT #2

        Respondents violated the Code the Code of Alabama 1975, as amended, Section
34-27-36 (a) (8)a. & Section 34-27-36 (a)(8)b. by failing, within a reasonable time, to
properly account for or remit money coming into their possession which belongs to
others, and by commingling money belonging to others with personal funds, and by
failing to deposit and account for at all times funds belonging to others by having a
shortage of such funds.

                                       COUNT # 3

        Respondents violated the Code the Code of Alabama 1975, as amended, Section
34-27-36 (a) (19) by failing to comply with Section 34-27-36 (a)(28) and (29) by failing
or refusing on demand to produce a document, book, or record in their possession
concerning a real estate transaction conducted by them and by failing within a reasonable
time to provide information requested by the commission during an investigation.

								
To top