The following disciplinary actions were completed during the period January 1, 2003 through December 31, 2003.

Suspensions

Kathleen Boston-McCune, salesperson, Overland Park, was cited for violation of K.S.A. 58-3062(a)(26). The presiding officer found that Boston-McCune committed forgery because she signed the seller's names on a MLS Change form to extend the listing and reduce the selling price. The sellers denied ever signing the change form, and did not authorize Boston-McCune to sign on their behalf.

Jami L. Church, salesperson, Wichita. Church paid for her license transfer fee with an insufficient funds check. Because Church had previously submitted an insufficient funds check for payment of her license fee, the Commission determined that aggravating circumstances were present to warrant a short-term suspension of her license in addition to a fine.

Janelle Glaves, salesperson, El Dorado, was the selling agent. She was functioning as a transaction broker in the transaction. The buyers owned a horse and were specifically looking for property that would allow horses. Glaves provided information to the buyer that the property was 2.1 acres and horses were allowed. Glaves obtained the information from the MLS sheet. After the closing, the buyers moved their horse onto the property. The county soon notified the buyers that they were in violation of county sanitary codes, which required three or more acres for keeping livestock on the property. Prior to closing, Glaves was not aware that the zoning restrictions required three or more acres for horses. The Commission held that Glaves violated K.S.A. 58-30,113(b)(1)(F) by failing to disclose to the buyer all known adverse material facts. The Commission ruled that a licensee is deemed to have actual knowledge of the law. To hold otherwise would overturn the longstanding principle that ignorance of the law is not an excuse. The Commission also held that the statement that horses were allowed on the property constituted a substantial misrepresentation in violation of K.S.A. 58-3062(a)(14).

James Inman, salesperson, Shawnee, paid for his late renewal fee with an insufficient funds check. Because Inman had previously submitted an insufficient funds check for payment of his renewal fee, the Commission found that aggravating circumstances existed to warrant a short-term suspension of his license in addition to assessment of a fine.

Vannessa L. Josey, salesperson, Kansas City, Mo, paid for her certification and license transfer fee with an insufficient funds check. Because Josey had previously submitted an insufficient funds check for payment of her late renewal fee, the Commission found that aggravating circumstances existed to warrant a short-term suspension of her license in addition to assessment of a fine.

Cloyd W. Kerr IV, broker, El Dorado, represented in the listing that horses were allowed on the property consisting of 2.1 acres. However, the county sanitary codes required three or more acres for keeping livestock. Kerr was found to have committed a substantial misrepresentation in violation of K.S.A. 58-3062(a)(14).

Lori McGregor, broker, Olathe, allowed her real estate license to expire in December 2001. She renewed her license late in May of 2002. During the period that her license was expired, McGregor continued to perform real estate activities by writing contracts and obtaining listings. McGregor violated K.S.A. 58-3036 by continuing to engage in real estate activity on an expired license.

Daniel Smith, salesperson, Kansas City, committed substantial misrepresentation to a financial institution by presenting and negotiating a $500 earnest money check that he had altered by changing the name of payee from the title company to himself in violation of K.S.A. 58-3062(a)(14). Twelve days later, Smith paid $500 in cash to the title company as payment for the earnest money deposit. Smith violated K.S.A. 58-3062(a)(3) by converting monies to his personal use for a period of 12 days. In a separate matter, Smith failed to turn a $1,000 earnest money deposit over to his broker in violation of K.S.A. 58-3062(b)(2). Instead, Smith deposited the $1,000 into his personal account in violation of K.S.A. 58-3062(a)(3). After the transaction fell through, Smith requested that a $1,000 money order be issued to his client as reimbursement for the earnest money deposit.

Fines and Other Penalties

Fines assessed against licensees are credited to the State General Fund. The Real Estate Commission receives no portion of the fines.

Jeffrey Albright, broker, Winfield, failed to properly supervise the activities of an affiliated salesperson in violation of K.S.A. 58-3062(c)(3). The affiliated salesperson failed to make known to the purchaser in the sales contract any interest the licensee had in the real estate.

Brenda Anderson-Murray, salesperson, Kansas City, Mo, knew the buyer had an exclusive buyer agency agreement with another broker, but she contacted the buyer and initiated the negotiations for a sale without first obtaining the buyer's written informed consent for direct negotiations in violation of K.S.A. 58-30,103(o).

David Hugh Antrim, broker, Salina, an affiliated licensee, obtained a seller agency agreement with the seller, but the brokerage did not have an agency relationship with the buyer. The licensee used a TBA-RES to improperly terminate the agency relationship with the seller client to act as a transaction broker for both parties in violation of K.A.R. 86-3-27.

Tom Arensberg, broker, Lawrence, allowed a salesperson to perform licensed activities on an expired license in violation of K.S.A. 58-3060(b) and (c).

Dora F. Atherton, broker, Wichita, disclosed she was a seller's agent, but the transaction file contained written agency agreements with both the seller and the buyer. Atherton improperly functioned as a dual agent in the transaction in violation of K.S.A. 58-30,103(a).

Kenneth L. Barr, salesperson, Wichita, entered into an exclusive agency agreement with the seller. Based upon his knowledge of the neighborhood, Barr suspected the property might have termite damage. Barr contacted a pest control company to perform a termite inspection. The pest control company informed the seller that the property was infested with termites. In the words of the pest control company’s representative, termites were “popping out of the walls.” Barr did not talk with the pest control company’s representative after the termite inspection was completed. Barr, through conversations with the seller prior to closing, was told that there had been some prior history of termite infestation. The seller’s disclosure statement asked the question, “Do you have any knowledge of termites, dry rot, or wooden/infestation on/affecting the property?” The seller answered, “no.” The disclosure statement also asked, “Have you had any termite/pest control reports or treatments for the property in the last five years?” The sellers answered, “no” to this question as well. Barr had knowledge that both statements in the disclosure statement were inaccurate. Barr failed to inform the buyer of the previous termite damage. He also did not inform the buyer that the disclosure statement was inaccurate. The hearing officer ruled that Barr violated K.S.A. 58-30,106 (d)(1)(B) and (C) by failing to disclose all known adverse material facts to the buyer concerning the physical condition of the property. The hearing officer also found that Barr’s failure to disclose this information to the buyer demonstrated an act of incompetency in violation of K.S.A. 58-3062(a)(23).

Donald Burford, salesperson, Wichita, failed to disclose to the buyer that he had an interest in the real estate he was selling in violation of K.S.A. 58-3062(a)(16) and K.A.R. 86-3-19.

Julie E. Case, salesperson, Hutchinson, failed to make known to the purchaser or lessee in the contract that she had an interest in the real estate she was selling in violation of K.S.A. 58-3062(a)(16) and K.A.R. 86-3-19.

Nancy Jo Combs, salesperson, Wichita, advertised properties for sale by including the franchise name and the licensee's own corporate name, but the advertisement did not include the broker's trade or business name in violation of K.A.R. 86-3-7(a).

Sally A. Costello, salesperson, Overland Park, advertised an offer of a gift to a charity, which was contingent upon a seller entering into an agency agreement for the sale of real estate in violation of K.S.A. 58-3062(a)(11).

Laurie K. Crites, broker, Junction City, failed to supervise the activities of an associate broker in violation of K.S.A. 58-3062(c)(3). The associate broker was a principal in the transaction, but the contract stated that the associate broker was functioning as a transaction broker. The associate broker was cited for violation of K.S.A. 58-30,113(a).

Micha K. Estes, salesperson, Wichita, failed to make known to the purchaser or lessee in the contract that she had an interest in the real estate in violation of K.S.A. 58-3062(a)(16) and K.A.R. 86-3-19.

Renee L. Fiffe, broker, Junction City, was a principal in the real estate transaction. Fiffe violated K.S.A. 58-30,113(a) by stating in the contract that she was functioning as a transaction broker.

Su Fox, supervising broker, Wichita, failed to properly supervise the activities of an employed salesperson in violation of K.S.A. 58-3062(c)(3). The affiliated salesperson improperly functioned as a dual agent in the transaction.

Jeff Glaves, broker, El Dorado, failed to supervise the activities of an affiliated licensee in violation of K.S.A. 58-3062(c)(3). One of Glaves' agents provided information to the buyer that the property was 2.1 acres and horses were allowed. The information was obtained from the MLS sheet. However, the county sanitation codes required three or more acres for livestock to be kept on the property. Glaves was aware that zoning required a certain amount of acreage to have horses on the property, but he did not know how much was required. The Commission ruled that a licensee is deemed to have actual knowledge of the law.

Marilyn K. Heffron, associate broker, Wellington, failed to make known to the purchaser that she had an interest in the real estate that she was selling in violation of K.S.A. 58-3062(a)(16) and K.A.R. 86-3-19.

Jeff Lange, broker, Wichita, failed to make known to the purchaser that he had an interest in the real estate he was selling in violation of K.S.A. 58-3062(a)(16) and K.A.R. 86-3-19. On another transaction, Lange failed to properly supervise the activities of an associate broker in violation of K.S.A. 58-3062(c)(3). The associate broker sold a property and did not disclose in writing in the contract that the agent had an interest in the property.

Joie L. Mellenbruch, salesperson, Kansas City, was aware that the sellers had entered into an Exclusive Right to Sell contract with another brokerage. Mellenbruch contacted the sellers and/or negotiated the sale of real estate directly with the sellers in violation of K.S.A. 58-30,103(p).

John H. Moffitt Jr., broker, Overland Park, failed to properly supervise the activities of an affiliated salesperson in violation of K.S.A. 58-3062(c)(3). The affiliated salesperson wrote on the buyer's estimated closing costs sheet that the buyer’s estimated closing costs totaled, "to be determined by lender.” The Commission ruled that the affiliated licensee violated K.S.A. 58-3062(a)(17) because the licensee did not make known to the buyer client at the time the offer was made that certain closing costs must be paid and the approximate amount that would be due.

James L. Nickels, broker, Hutchinson, failed to properly supervise the activities of an affiliated salesperson or associated broker in violation of K.S.A 58-3062(c)(3). Nickels’ affiliated licensee failed to make known to the purchaser in the sales contract that the licensee had an interest in the real estate in violation of K.S.A. 58-3062(a)(16) and K.A.R. 86-3-19.

David C. Norris, salesperson, Winfield, failed to make known to the purchaser in the contract that he had an interest in the real estate that was the subject of the transaction in violation of K.S.A. 58-3062(a)(16) and K.A.R. 86-3-19.

Patricia A. Nuss, broker, Hillsboro, failed to make known to the purchasers in the contract that she had an interest in the real estate in violation of K.S.A. 58-3062(a)(16) and K.A.R. 86-3-19.

Malinda Jean Odle, broker Associate, Manhattan, rebated her commission to a principal in a transaction in violation of K.S.A. 58-3062(a)(4).

Linda K. Owens, broker, McPherson. The sales contract stated that a title company would be the escrow agent. The seller and buyer decided that they did not want to pay the closing fee. As a courtesy to the parties, Owens arranged to have the earnest money deposited into her general business account. Owens closed the transaction and checks were drawn on her general business account. The Commission found that Owens violated three statutes. She commingled monies with her own funds in violation of K.S.A. 58-3062(a)(3). Owens violated K.S.A. 58-3062(a)(12) because she failed to have the exact agreement of the parties in the sales contract. The Commission also found that she violated K.S.A. 58-3062(c)(2) because she failed to provide the parties with a detailed closing statement showing all receipts and disbursements.

F. Steven Schneider, salesperson, Overland Park, was contacted by a seller who was under an Exclusive Right to Sell Agreement with another broker. Schneider entered into a contract to buy the seller's house without contacting the listing broker. Schneider negotiated a sale, exchange, or lease of real estate directly with the seller when he knew that the seller had an agency agreement granting exclusive right to sell to another broker in violation of K.S.A. 58-30,103(p).

James M. Sigmon, salesperson, Leavenworth, was found in violation of K.S.A. 58-3062(a)(1) for misleading advertising. The advertisement offered cash to the seller but did not explain that a commission reduction was actually involved. The advertisement failed to contain an explanation of the terms and conditions of the offer.

Larry John Theurer, broker, Wellington, failed to properly supervise the activities of an associate broker in violation of K.S.A. 58-3062(c)(3). The associate broker failed to make known to the purchaser in the sales contract that she had an interest in the property she was selling in violation of K.S.A. 58-3062(a)(16) and K.A.R. 86-3-19.

Derek Waite, broker, El Dorado, failed to properly supervise the activities of an associate broker in violation of K.S.A. 58-3062(c)(3). The affiliated broker represented in the listing that the property of 2.1 acres was large enough to allow horses. However, county sanitary codes required three or more acres for keeping livestock on the property.

Jerry S. Weis, salesperson, Manhattan. Weis, on behalf of his broker, entered into an exclusive right to sell agreement with the seller. Weis also entered into an exclusive buyer's agency agreement with the buyer. The buyer wanted to make an offer on property owned by this seller. At the time of drafting the offer, the buyer signed a TBA-RES to allow Weis to convert to the position of a transaction broker. The buyer's offer and subsequent counter offer were presented verbally to the seller. Weis failed to obtain written authorization from the seller to convert from seller's agent to the position of transaction broker prior to presenting the offer. Weis actually functioned as a transaction broker during the negotiation. The buyer understood that Weis was functioning as a transaction broker, but the seller was under the impression that Weis was still a seller's agent. Weis failed to promote the interests of the seller in violation of K.S.A. 58-30,106(a)(2).

Shelly S. Williams, broker, Overland Park, wrote an offer on a property listed by another company. Williams contacted the sellers directly to present the offer. Williams violated K.S.A. 58-30,103(p) by directly contacting the seller when she knew that the seller had an agency agreement granting exclusive right to sell to another broker.

Roger Worden, broker, Shawnee Mission, failed to properly supervise the activities of an affiliated salesperson in violation of K.S.A. 58-3062(c)(3). The affiliated licensee mailed a flyer out to the public that included the licensee's team name without reference to the broker's name or trade name in violation of K.S.A. 58-3062(a)(1) and K.A.R. 86-3-7.