Payne, Jimmy

Payne, Jimmy | Principal Broker | Fayetteville, AR

08/10/2015 | Hearing No. 3399

Respondent: Jimmy Payne, Principal Broker, All Real Estate, LLC, Fayetteville, Arkansas, Formal Hearing #3399 Violation(s): A.C.A. § 17-42-311(a)(2), §17-42-311(a)(11), § 17-42-311(a)(6) and § 17-42-316(b)(2)(I) and Commission Regulations 10.7(b)(1), 10.7(b)(3), 8.5(a), 10.8(b), 10.8(c), 10.8(g)(1), and 10.10(a). Sanctions: Respondent Payne’s real estate license with the Commission was revoked. A fine was imposed upon Respondent Payne in the amount of $6,500.00. And, Respondent Payne is required to deliver to the Commission all existing records in his possession. On or about February 19, 2014, Respondent listed for sale 211 Sundown Drive, Farmington, Arkansas. The Seller was Matthew Reardon. On or about May 15, 2014, Respondent represented to Complainants/Buyers Willbanks the property at 211 Sundown Drive, Farmington, Arkansas to be sold as a short sale property. On or about May 15, 2014, Complainants/Buyers Willbanks and Seller Reardon entered into a real estate contract to purchase the property at 211 Sundown Drive, Farmington, Arkansas, in the amount of $95,000. According to the real estate contract, Respondent Payne acted as a dual agent, representing both Seller Reardon and Complainants/Buyers Willbanks. On or about May 15, 2014, Respondent did not reduce to writing, or did not provide copies of a Short Sale Addendum and Earnest Money Addendum to Complainants/Buyers Willbanks. On or about May 15, 2014, Complainants/Buyers Willbanks remitted cashier’s check # 3516983, made payable to All Real Estate, in the amount of $5,000 for earnest money. Respondent Payne negotiated the check with Simmons First National Bank and did not deposit the earnest money in a trust account or with an escrow agent. On or about May 21, 2014, Complainants/Buyers Willbanks remitted a second cashier’s check, # 3516999, made payable to All Real Estate, in the amount of $4,500 for additional earnest money, bringing the total earnest money paid to $9,500. Respondent Payne negotiated the check with Simmons First National Bank and did not deposit the earnest money in a trust account or with an escrow agent. On or about September 11, 2014, Karen Powell of Coldwell Banker Harris McHaney Faucette, presented a real estate contract on behalf of Buyers David & Erica Powell, for the purchase of 211 Sundown Drive, in the amount of $128,000. The offer was subject to short sale approval. The offer was accepted by Seller Reardon. On or about September 11, 2014, Respondent did not notify his client, Seller Reardon, of the potential risk of accepting a second offer, not identified as a back-up offer, while his client had a contract in place. On or about September 11, 2014, Buyers David & Erica Powell remitted cashier’s check # 1178300577, made payable to All Real Estate, in the amount of $1,000 for earnest money. Respondent Payne negotiated the check with Simmons First National Bank and did not deposit the earnest money in a trust account or with an escrow agent. On or about October 17, 2014, the transaction between Buyers David & Erica Powell and Seller Matthew Reardon closed. On or about October 22, 2014, Complainants Larry & Peggy Willbanks were informed by Respondent Payne the subject property was sold to another buyer. Complainant Larry Willbanks verbally requested his earnest money be returned. Respondent Payne returned $9,500 to Complainants Larry & Peggy Willbanks on November 4, 2014. Complainant stated the funds were received via cashier’s check. On or about February 2, 2015, AREC Senior Investigator requested, via email, Respondent send all documents of this transaction to AREC. Respondent did not submit requested documents.