A Revocation and a Suspension . . . OUCH!

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A Revocation and a Suspension . . . OUCH!

The Oregon Real Estate Agency is the State of Oregon's licensing division for real estate licensees.

Agency news regarding license rule changes, statutes, etc. are published a minimum four times per year.

It's a good read, and keeps us up-to-date on policies that we need to know about. Continuing Education was the biggest change in this month's topics of discussion.

This month's issue also held some surprises under the "Administrative Actions." A broker and their managing broker were in deep . . .

Some of the Bozo no-no's:

The broker had two different offers in the office file, on the same deal, from the same parties. Two different versions of the second offer. Oopsie.
Broker wrote an addendum that didn't identify: the earnest money, the property address, the buyer or the seller -- and obtained signatures.
Broker signed the managing broker's name on the listing agreement.
Broker initialed the managing broker's initials on an addendum.
Broker wrote up an addendum but failed to stipulate it was a seller's counter offer
Manging broker failed to supervise broker

The broker obtained signatures on documents that were not properly filled out. YIKES!

The broker signed and intitaled documents with their managing broker's name/initials. YIKES!

As a result of this, the broker had their license REVOKED! The managing broker was suspended for 45-days.

Several years ago, I had the distinct pleasure of representing buyers in a transaction with this (now revoked) licensee. They represented the sellers. I won't get into the details -- the deal is done! But it was a series of oversights on their part. I happened to catch these "oversights," and before we could proceed to close, I had to work diligently to establish clarity on the sale. It was complicated . . . when it really didn't need to be.

The broker had been practicing for 20+ years. What a shame they had to end their career on such a low.

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EBA Portland, LLC is an Exclusive Buyer Agency serving the Metro Portland real estate market since 1999. If you’re a Buyer in the Metro Portland area (including: Beaverton, Tigard, Hillsboro, Lake Oswego, Downtown Portland,) and contemplating a purchase, talk with a Buyer’s Agent . . . better yet, talk to an Exclusive Buyers Agent. Exclusive Buyers Agents do not work for listing brokerages or Sellers. An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time.

Carla Muss-Jacobs
503-810-7192
Carla@carlahomes.com

BuyersAgentPortland.com

Posted by Carla Muss-Jacobs - Exclusive Buyers Agent Portland | Portland Real Estate | on 09/03/2010 07:59 PM

Comments (49)

A Revocation and a Suspension . . . OUCH! in the Training Channel

revocations and suspensions

Originally posted at: Buyers Agent Portland - YOUR Exclusive Buyers Agent: A Revocation and a Suspension . . . OUCH!

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49 Comments on A Revocation and a Suspension . . . OUCH!

SEP

2010

wow amazing, that is just stupid!! seriously... signing a persons name???

I am amazed it took 20 years for this bozo to lose his license.

Carla, Wish things like this totally shocked. Just curious, in your area are all agents brokers? Here we have agents (salespersons) and brokers. All agents must report through a broker unless they have achieved their own broker qualifications with the state (additional training, testing, etc.)

Carla - It makes you wonder just how many things passed by someone that is not efficient enough to pick up on the slimy moves he did on other deals.

REVOKED

I know LOTS of brokers who don't follow the rules, but my files are ready for review any day of the week. :)

Oopsie is an understatement. And, you're right...what a shame to end on that note. Obviously it was time.

Carla - We shouldn't feel sorry for this person, we need burger-flippers too.

Hi Ken . . . stupid is right! And when I had the pleasure of working with this agent on a deal several years ago, what they did was equally STUPID!

Hey Coral -- S/he (trying to keep it anonymous, although the stipulation is online for all to see) probably did a lot of things. I know they did in my deal. Maybe I'll blog about that -- what they did.

Hi Liz & Bill . . . yes, in our area, agents are considered brokers. We got rid of the sales associate, and have brokers. But, there are Managing Brokers which are called "Principal Brokers" (some areas call this Broker in Charge). The Principal Broker is typically, the owner but not always. This agent would be a good student of Ms. Bad Manners! Perhaps they took Ms. BM's speed course :-)

Hey Ken -- the very thought crossed my mind too. How many other deals were replete with Bozo No-No's.

Hi Tammy . . . I was audited once. My nice lady from the real estate agency told me she would give me "gold stars" all over my office!! I bet she'd say the same with you.

Hey David -- HA HA HA, yes understatment. :-)

Hi John . . . I know, they did this to themselves. And you're funny!

SEP

2010

Carla I hope this is not off topic but this is perfect highlighting the risk that brokerages assume for the actions of their agents. This is a shining example of the risk that agents often fail to comprehend.

1st mistake is the State's. It is confusing & misleading to the public to call everyone a broker. In States with sales associates and brokers--it serves as an automatic delineation of the person involved. A broker has more experience and the public is smart enough to know that. We still have sales associates but our State screwed up a few years back and decided we would no longer have broker associates--all brokers are now created equal in the eyes of the State. Again, it's misleading and I've seen ordinary brokers trying to pass themselves off as the owner of the company because it makes them look more important to the public. It ticks me off. I have paid my dues to reach the point of having my own company for the last 12 years.

All that said, I will also say I have seen a lot of brokers & broker owners that have been playing loose with the rules for years. It amazes me that these people haven't been sued or put out of business years ago. I just keep telling my people to do it right. The loose cannons will get their proper payback at some point in time.

Amazingly stupid! Signatures on forms without the information filled in??? Doesn't sound like the clients were too aware either.

(Also an Oregon Broker) I recently took the 40 hour class and passed the test for my Principal Broker's license, so that I could cover for our PB/Owner when she goes out of town. Makes me a big wheel, right? Not really! LOL!

What it does make me is responsible for my own butt from now on. I still have Linda look over my work, but it's mostly a formality, definitely a courtesy and it IS her business after all, because if I make a boo boo that could cost my license, it won't take hers with it.

In the course materials the statement was made that the Agency is moving toward "encouraging" all Brokers who are in the business for 3 or more years to get their PB license. Personally, I see no reason why a "managing" Principal Broker should be responsible for the actions of someone who has been in the business for so long...

As for incompetent persons such as the one in Carla's post, we're supposed to be turning these folks in to the Agency, but that's a real hard "do." I think we tend to hope these are isolated instances...

Carla it is too bad you could not have provided more detail. Not necessarily the names of the offenders after all the guilty need to be protected. The full details of the transactions and conditions could be an interesting read. But I can understand not wanting to take the time and space plus few are morons like I who would read it.

Bill

Some agents (brokers) take things so casually and think they can do "whatever it takes" and that's just wrong. Good to see some policing going on.

This probably happens more often then you would like to think. It is rare that he would lose his license if it was a first time offense.

In my state of Missouri, the real estate commission publishes the discipline list once a year. Off the top of my head, I have to say that at least 65% of the discipline actions are for non real estate violations. DWI, drug possession, drug selling, assauilt, and in lesser numbers wife beating and child abuse. Most of the rest of the real estate related violations are for escrow related matters. In many of those cases, the violations are for record keeping issues, not for actual theft or misappropriation of monies in escrow.

So, what's the point? Violations such as you outlined happen quite frequently. Worse, I see violations of client confidence all the time. I also have been the target of attempts to get me to violate client confidence which is at least on the borderline of a violation of ethics. I wish our real estate commission would pay more attention to the serious real estate mis or mal practices that go on.

OUCH! I can't imagine there's any way the broker just didn't know what was going on here and could just play it dumb. We get newsletters from our board all the time that tells us the recent cases, who they defendants are and their charges against them as well as the outcome and it's so hard to read sometimes cause you feel bad for half a second and then you see what they did or DIDN'T do and you are like well I guess I don't feel too bad for ya if you did that and were that stupid. Great post! Hope some others will read this and realize they need to watch closer as to how they are running their biz's.

Wow! Lucky they were not prosecuted criminally?

I am a stickler for paperwork - contracts involving this much value are a serious matter! Shame on them, and good that its finally been addressed.

Agree with Brian- when is it ok to forge signatures? Who are the naive clients who sign blank documents? Those poor souls, being represented by such a nincompoop. Although, maybe the agent just signed for them, too- sh'he was just better at forging it...?

Yeesh.

Carla,

BOZO moves deluxe! Too bad for all involved but sounds like it was time.

This business if full of so many opportunities to land ourselves in a law suit that it is imperative to keep up with the paperwork and assuring all T's are crossed.

Great idea for a posting!

Yes, that is awful to end a career this way, must protect yourself at all times

When you combine arrogance, stupidity, and a leaning toward larceny, you get brokers like those in your story.

Idaho sends out a quarterly magazine that also lists administrative action as well as the results of recent audits. We were fortunate many times to land on the 100% no errors list, but when I read about the errors others made I was often shaking my head in wonder.

It's easy to make some kind of small mistake... like missing one spot that should have been initialed. But in many cases the "mistakes" were clearly not made in error.

The one that I never could understand was co-mingling of funds. How could they even begin to assume that they wouldn't get caught with that one?

Consumers - not just in real estate but in every business transaction - should learn that you don't sign documents when important information is left to be "filled in later." Convenient, yes. Stupid, absolutely!

Hello Carla,

I'd like to add to Jeff's #10 comment, that here in Australia we also differentiate between Real Estate Sales Persons and Real Estate And Business Agent, the later being entitled to run a business and is the Licensee (Principal) and employ other real estate sales persons under her/his umbrella.

Regarding casual conduct..it happens here as well.

About the case you mentioned, as Karla, #14, suggests some agents take things 'to casual'...but on the sands of time...the Law of Karma - the Law of Cause and Effect (cosmic justice) will come into effect. For every action there is an equal and opposite reactionto the some power...that's Newton's Law of Motion. The Bible, as well as many other holy books, like the holy Koran or teachings from the Talmud refers to it : ' as ye sow, so shall ye reap'.

As we all know there are several kinds of karma to everyone: personal,family, national, planetary etc...and each of us is responsible for all of them in varying degrees...depending on our own level af academic, professional, spiritual 'stand' at that specific point in time, space and condition. Dues have to be paid when a lesson of life has not been learned...

So, let's do good towards or fellow men!

May I end with a few lines by Kahlil Gibran, Lebanon, 1883-1931 - A Third Treasury

I love you, my brother, whoever you are - whether you worship in your church, kneel in your temple, or pray in your mosque. You and I are all children of one faith, for the diverse paths of religion are fingers of the loving hand of one Supreme Being, a hand extended to all, offering completeness of spirit to all, eager to receice all.

Let's list, list and sell!

Peter Michelbach - RealEstate and Business Agent - David Grace Real Estate - Perth, WAustralia

WHEN THE BROKER SCREWS UP, OR AN AGENT WHO GETS THE BROKER INTO DEEP DO-DO....AND THEY SUSPEND THE BROKERAGE, EVERYONE THERE LOSES HIS JOB FOR A WHILE. NOT A FUN DAY TO FIND YOUR OFFICE LOCKED UP AND YOUR BILLS ARE DUE ON THE CAR AND HOUSE....

Not sure what it is like there, but in CA the Brokers license is just too easy to get. As long as we have low standards of entry we will get low quality of personnel!

"If you can't do the time, don't do the crime.", Tony Beretta

We all occasionally forget that where there is a Yin there is a Yang.

We let someone else sign our name so we don't have to run back by the office, or initial something for the boss because we know what they would do in this case or, hopefully a very few of us, will do it because we think we will get away with it.

I use a simple rule; If I can't go home tonight and brag about everything I have done today, I don't do it.

And we can only imagine how many times they violated license law and never got caught.

And you won't ever need to deal with them again!

I once had a deal with a Broker WHO WANTED ME...... TO SIGN THEIR LISTING AGREEMENT(HUH???) to reduce my commission( their Seller was a former agent/broker!). My Broker pointed out to them that their company was going before the R.E. Commission if they "didn't get their act together!" We settled....... I did get the commission stated in the MLS!!!!

20+ years of sub-par real estate activities hurts everyone in the business. What a relief that that person is out!

I had a deal once where I'm sure the agent was signing for his clients using docusign. The documents I sent were coming back WAY too soon. I'm not sure why agents think they can get away with this! Unfortunately most of our CA agents lose their license because of a DUI (DWI in Oregon I think).

YIKES. This sadly happens way more than it should, and we wind up doing our side of the sale, and most of the other agents part as well. We have to, in order to protect our clients' interests.

Hang in there!

Hi Charita. . . the principal broker was in cohoots. They testified that they allowed the brokerto sign/intital for them! They were COVERING for the broker, in other words. That's why they got 45-suspension . . . you can't "allow" someone else to sign for you UNLESS they have a valid, legal power of attorney. AMAZING HOW STUPID the managing broker was!!

Hey Jeff-- Not sure what the first paragraph was all about. We are BROKERS -- becasue we "broker" the deal. What difference does it matter what an agent is called? It confuses no one here. "Sales Associates" are employed at Sears, and Macy's . . . they make a sale, and don't BROKER a transaction. Comments are greatly appreciated -- especially when they are relevant and topic specific.

Hi Lisa . . . It was the client that filed the complaint I believe. They became aware and didn't hesitate to call their agent out on this. Sometimes people don't know when the wool is being pulled. When they discover that, they file their complaints.

Hey Victoria -- That's a good idea to get your Principal Brokers license. If the brokerage has agents working under their shingle, I do understand that someone has to be managing, in charge. There's office policy, records, etc. that need to be kept kosher. Lazy managing brokers tend to make for . . . well, things like the above!

Hi William . . . I could have provided more details -- I could have linked to the PDF stipulated ruling. I choose to keep my post as written, and not link to the actual pleading. The "details" of the investigation were not disclosed by the Real Estate Agency. Their bottom line findings -- which resulted in the stipulated ruling and administrative action -- were. The guilty don't need to be protected, IMHO. I didn't want this to become a "National Inquirer" type of scandal post. EXTREE, EXTREE read all about it . . . just ain't my style.

Hey Karen. . . oh yeah, the whatever it takes . . . "Oh, it's only a signature . . ." GEEZ.

Hi Empire -- Not sure how the findings of fact played out. The ruling was all I read, and it wasn't the investigation report. The proof, as they saying goes, is in the pudding revocation.

Hey Robert. . . Hmmmm . . . now that's interesting. Our administrative actions are published, but I've never read any about agents' non-real estate violations. Although, being a felon (selling drugs, assault, etc.) should be cause for suspension, or revocation. They ding a lot of agents for record keeping, misapporpriation of funds, non-disclosure type stuff. Escrow officers are also licensed under the Real Estate Agency, so there's quite a few EO who get dinged for not accounting properly.

Hi Adam-- Apparently, the Principal Broker "allowed" the broker to sign/initial for them. I think they were just trying to cover for their agent. "Yeah, I said they could sign/intial for me." And that's JUST as stupid. These are legal documents, not a golf score card. Without the proper Power of Attorney, how can something be legally signed?!?

Hey Brain . . . I don't think they could be.

Hi Jeanne -- Quite a few people think real estate is location, location, location. It's legal, legal, legal. Contracts are legal documents. Shame on them is right!

Hey Jennifer. . . The naive clients aren't at fault for being naive, IMHO. They are engaging a licensed fiduciary, and they go by what they are told, in a lot of cases. Which gives the NINCOMPOOPS "license" to screw things up big time. One of the facts is that Principal said they "authorized" the agent to sign/intial for them. That's why they were suspended for 45 days. They should have been suspened longer IMHO. They were trying to cover their agent's butt. I call that "in cohoot nincompoops!" :-)

Hi Valerie -- you're right . . . it was time!

Hey Deborah . . . you know, I never think of it as "protecting myself" I have the duty to protect my clients. When I do my job, they ARE protected, and therefore no worries. I'm the type of agent that follows the rules, but I also know what those rules are!!

Hi Marte -- you got a point. An inadvertent mistake, which is a no-harm, no-foul is one thing. Deliberate acts of omission, etc. are another.

Hey Peter . . . that's the most interesting comment I've ever read.

HI LARRY -- IT'S RARE THAT THEY'LL CLOSE THE ENTIRE OFFICE DOWN WHEN AN AGENT/BROKER GETS NICKED. UNLESS THERE IS SOME MASS IMPROPRIETIES AND GROSS VIOLATIONS OF STATE AND/OR FEDERAL LAWS. I'VE ONLY HEARD ABOUT A LOCAL OFFICE BEING CLOSED DOWN ONCE IN MY CAREER

Hi Gordon . . . The license might be easy to get, but this particular agent had been licensed for over 20 years. You'd think they'd have gained some knowledge in that time. Apparently not.

Hey Marshall -- Good rule to follow!! Thanks for your comment. A good summation. And moral of that story is: Just because it's easy to do . . . doesn't make it the right thing to do.

Hi Lenn . . . That was my thought! Especially since I worked a deal with this agent a few years ago, and they managed to screw that one up too!! It closed, but what a pain.

Hey Kathy -- Sounds confusing, but it worked out in the end. Good to have someone watching your back!!

Hi Margaret . . . sub-par is RIGHT. Yeah, one down ;-)

Hey Cynthia -- You know . . . you can just get a sense of the natural flow of a deal, and getting docs too fast would raise an eyebrow for me too. I remember one deal and the listing agent was also the father of the sellers. All disclosed . . . but the paperwork had ONLY ONE signature (there were two sellers). One of the sons signed: John Doe, et al. ET AL ?!? I do know what that means, but that's not what it says on the deed. To me, it didn't satisfy a fully executed contract the way they signed off. I pitched a bitch on that. They thought I was crazy . . . and I thought they were lazy. GET THE PROPER SIGNATURES or get a POA and sign the dang PURCHASE CONTRACT correctly!!

Hi Jon . . . you got that right!! There's been a few holes in my tongue punctured when I've had to bite it . . . in order to just get the deal done, and protect the clients' interests!! RIGHT RIGHT RIGHT you are sir!!

You said: "The broker had been practicing for 20+ years. What a shame they had to end their career on such a low."

Sounds like that broker needed a lot MORE "practice"...if he had, his career might not be where it is today...

It's always a shame to hear about an agent being ousted from the business, but I guess we all reap what we sow sometimes.

SEP

2010

That is a shame. I can understand a new agent making these kinds of mistakes, but not someone with this many years of experience. We have to take 6 hours of legal amd Ethics update classes everytime we renew our license here in Texas.

Carla,

Somehow I have the feeling that licensees like that don't spend much time on ActiveRain.

We've got a few folks like that in the Ann Arbor area but we seem to find it a lot more when we are operating in Wayne County to the East or Lenawee County to the South East.

Right now we have a problem with a broker in the Plymouth area who won't actually read the terms of the contract her seller has signed.

(The Ann Arbor Contract form is different than what her board uses and she is just assuming the terms are all the same.)

Thanks for the post!

Great post! Yes, it's amazing how many bozo brokers are still out there getting away with numerous infractions. The only thing that helps, and this takes much effort, is for someone to call them on it. Sadly, this takes so much time and effort that most Realtors don't even make the attempt.

Now if we could get all MLSs and boards to enforce rules and procedures....

Sounds like shoddy work and a managing broker that just wasn't paying attention.

Hi Pat & Wayne . . . just goes to show how someone with many years under their belt can really mess up!

Hey JL -- the time tested saying rings true once again!

Hi Ann . . . I'm more afraid of the "know it alls"

Hey Jon . . . thank you for your comments. The interesting overall of it was that we tend to know the agents who are practicing sub par. Most annoying!

Hi Sheila -- I believe it was the CLIENTS who initiated the complaint. I say this because when an agent files against another agent there might not be any breach of fidicuary duties. If the client files -- there is clear evidence when this happens. THEN the licensing board can do what they're supposed to, as I suspect happened in this case.

Hey Heath . . . with my comment to Sheila, above, I do think there's a lot more weight in the complaint when it comes from a client.

Hi Carrie & Kathy -- Sounds like forgery.

One or two screw ups is one thing. But it looks as if these guys do more wrong than right. Oops.

I agree with Jeff above about the confusion. But in any case, those are pretty serious violations! Glad they are gone ...

SEP

2010

I think even Bozo would be smarter than that. If the Broker has been conducting business in that fashion for 20 years, It's time the State yanks the license. jay

Just goes to show you that what goes around comes around, eventually!

SEP

2010

Ouch! Crossing I's and dotting T's does pay off. Very good post. Thanks for the info.

Carla: "hacks" like these are a very large part of the reason for the fraudulent activities that got us to where we are now. I am thrilled to see them leaving in droves - either driven out due to lack of business or forced out due to sheet incompetency.

SEP

2010

Wow. It is amazing what people would do to gain without thinking of the consequences of their actions.

SEP

2010

Yikes! Mistakes can happen, but GEEZ! Crazy stuff.

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Carla Muss-Jacobs - Exclusive Buyers Agent Portland | Portland Real Estate |

Portland, OR

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