Payne, Jimmy

Respondent(s): Jimmy Payne, Principal Broker, All Real Estate LLC, Fayetteville, Arkansas, Formal Hearing #3465

Violation(s): Arkansas Code Annotated §17-42-311(a)(2), §17-42-311(a)(4), §17-42-311(a)(6), §17-42-311(a)(7), §17-42-311(a)(11) and Commission Regulations 8.5(a), 9.2, 10.8(b), 10.8(g)(1), and 10.10(a).

Sanction(s): Based upon these Findings and Conclusions, the Commission votes unanimously to revoke Respondent Payne’s license.  Mr. Payne is also ordered to pay a fine of $56,000 to the Arkansas Real Estate Commission.

Complainant Eldora McCarty

Respondent Payne went to Complainant Eldora McCarty’s home to ask if Complainant McCarty was interested in purchasing an investment property. Complainant McCarty did not know if the property was listed with a real estate broker. On or about August 7, 2013, Complainant McCarty provided Respondent Jimmy Payne check number 3994, made out to Jimmy Payne in the amount of $20,000, to purchase at auction property located at 330 Willow Street, Farmington, Arkansas. Respondent did not reduce to writing Complainant McCarty’s payment of $20,000. 

On or about November 14, 2013, Respondent Payne signed as received receipt No. 486727 for $1,500 paid by Complainant McCarty with check number 1303, for anticipated closing costs in the event Complainant McCarty entered into an agreement to purchase the subject property.  Respondent Payne did not reduce to writing the agreement or terms by which Complainant McCarty agreed to pay the closing cost.

After November 2013, Respondent Payne contacted Complainant McCarty asking for an additional $5,000 to cover utilities, dumpster, and insurance which would be needed after the purchase of the property closed. Complainant McCarty stated that she paid $5,000 to Respondent Payne in response to the request. Complainant McCarty stayed in contact with Respondent Payne until November 2015, and requested information on the property status and copies of the contract documents.  Respondent never provided status information or copies of documents to Complainant McCarty. After November 2015, Complainant McCarty was unable to contact Respondent Payne.

On January 29, 2016, and May 2, 2016, the Commission sent a copy of Complainant McCarty’s complaint to Respondent Payne. Respondent Payne did not respond. 

Complainant Rodney Elmore

On February 12, 2012, the Arkansas Democrat Gazette reported Carol Anne Cooper, owner of subject property located at 12906 Jimmy Devault Road, Farmington, Arkansas, had passed away on February 6, 2012.

On or about February 13, 2014, Complainant Elmore and his wife, Jennifer Elmore, in the name of ChrisRod Properties LLC, entered into a Real Estate Contract presented to them by Respondent Payne to purchase property located at 12906 Jimmy Devault Road, Farmington, Arkansas, from Seller Carol Anne Cooper (Deceased) in the amount of $32,917.  Respondent Payne did not inform Complainant Elmore that Seller Cooper was deceased. Respondent Payne represented himself as a dual agent representing both Seller Cooper and Complainant Elmore. The contract was scheduled to close March 11, 2014, and the offer was to expire on March 10, 2014. There was no date on the Real Estate Contract showing when it was executed.

On February 13, 2014, at Respondent Payne’s request, Complainant Elmore had his bank transfer $1,500 to All Real Estate LLC’s account at Metropolitan National Bank for earnest money.  Respondent Payne’s Trust Account on file with AREC is at Liberty Bank of Arkansas.

On or about March 6, 2014, Complainant Rodney Elmore and his wife entered into a second Real Estate Contract to purchase property at 12906 Jimmy Devault Road, Farmington, Arkansas, from Seller Carol Anne Cooper  in the amount of $30,416.  Respondent Payne did not prepare a document terminating the first contract. Respondent Payne represented himself as a dual agent representing both Seller Cooper and Complainant Elmore. The contract was scheduled to close on September 5, 2014, and the offer was to expire on July 14, 2014. No one signed the Real Estate Contract on behalf of Seller Cooper.  There was no date on the Real Estate Contract showing when it was executed.

On March 6, 2014, at Respondent’s request Complainant Elmore had his bank transfer an additional $2,500 earnest money to All Real Estate LLC’s account at Metropolitan National Bank for the second Real Estate Contract. Respondent Payne’s Trust Account on file with AREC is at Liberty Bank of Arkansas.

On July 14, 2014, Respondent Payne contacted Complainant Elmore and requested an additional $11,000 in earnest money for the purchase of 12906 Jimmy Devault Road, Farmington, Arkansas. Respondent executed an Earnest Money Addendum referencing the contract between ChrisRod Properties LLC, and Seller Cooper in the amount of $15,000 which included signatures of all parties.

On July 15, 2014, at Respondent’s request Complainant Elmore had his bank transfer $11,000  in earnest money to All Real Estate LLC’s account at Simmons First National Bank for the purchase of 12906 Jimmy Devault Road, Farmington, Arkansas. Respondent Payne’s Trust Account on file with AREC is at Liberty Bank of Arkansas.

On November 3, 2014, Complainant Elmore in the name of ChrisRod Properties LLC, entered into a Real Estate Contract to purchase property at 128202 Jimmy Devault Road, Farmington, Arkansas, in the amount of $59,900.  Respondent represented Buyer Complainant Elmore. The Seller’s name was left blank on the Real Estate Contract. The contract was scheduled to close on January 5, 2015, and the offer was set to expire November 4, 2014. Paragraph 7 of the Real Estate Contract Earnest Money was checked "No", but Respondent verbally requested $12,000 in earnest money.  Respondent Payne did not reduce the terms of the earnest money to writing. Complainant Elmore and Respondent signed the contract.  The Real Estate Contract was not signed by the Seller as either accepted or rejected.

On November 3, 2014, at Respondent’s request Complainant Elmore had his bank transfer $12,000  in earnest money to All Real Estate LLC’s account at Simmons First National Bank for the second Real Estate Contract, dated November 3, 2014.  Respondent Payne issued a receipt to Complainant Elmore dated November 4, 2014, in the amount of $12,000. Respondent Payne’s Trust Account on file with AREC is at Liberty Bank of Arkansas. 

On April 26, 2016, and May 2, 2016, the Commission sent a copy of Complainant Elmore’s complaint to Respondent Payne. Respondent did not respond. 

Complainants Timothy and Sonya Sluik

On or about April 23, 2015, prior to a contract being written, Complainants Sluik provided cashier check number 3865417 in the amount of $4,000, payable to All Real Estate LLC, as a "down payment" for the property located at 926 E. New Hope Road, Rogers, Arkansas.  Complainants Sluik stated in their complaint that Respondent Payne asked them to provide funds to "show that we had down payment money and was serious about the house.  He said he would hold this money for us to bring to closing."  Respondent Payne did not reduce to writing Complainants Sluik’s agreement to pay the $4,000 down payment.  

Complainants Sluik signed a Buyer Agency Agreement with Respondent Payne.  Complainants Sluik did not receive a copy of the signed Buyer Agency Agreement from Respondent Payne.   

On April 25, 2015, Complainants Sluik signed a HUD-9548 Sales Contract to purchase the property located at 926 E. New Hope Road, Rogers, Arkansas, in the amount of $134,000. The contract was scheduled to close within forty-five (45) days of the contract.  The subject property was a foreclosed property offered for sale by the Secretary of Housing and Urban Development.  Complainants Sluik also signed a Property Disclosure Program form, Owner Occupant/Investor Sales Contract, and other required HUD forms provided to them by Pemco Limited. Pemco Limited was an asset management and preservation company which was contracted with the U. S. Department of Housing and Urban Development, to facilitate the sale of the subject property.  Respondent Payne signed all forms as the Selling Broker for Complainants Sluik.  The terms of the contract required Complainants Sluik to provide a cashier check for Earnest Money in the amount of $1,000 payable to, and to be held by, First National Title Company, Bentonville, Arkansas, as the closing company.  Respondent Payne did not provide Complainants Sluik a signed copy of the HUD-9548 form, or the other documents signed by Complainants.  There was no written reference to the $4,000 down payment Complainants Sluik previously paid to Respondent Payne.  

On or about May 5, 2015, Respondent Payne told Complainants Sluik they needed to provide $300 for a HUD processing fee.  Respondent Payne did not reduce to writing Complainants Sluiks’ agreement to pay the $300.  Complainants Sluik provided $300 cash to Respondent Payne.  Respondent Payne signed a hand written receipt dated May 5, 2015, for $300 received from Complainant Tim Sluik. 

On or about June 1, 2015, Respondent Payne told Complainants Sluik he needed a check for utilities in the amount of $1,500, which was to be held by him as a deposit in case there was damage to the subject property which could occur during the inspection and appraisal. Respondent Payne did not reduce to writing Complainants’ agreement to pay the $1,500.  Complainants Sluik issued check number 1800, dated June 1, 2015, in the amount of $1,500 payable to "Jimmy Payne."  Complainants Sluik did not receive a receipt for the payment of $1,500. The check posted to Complainants Sluiks’ bank account on June 2, 2015.  The check was endorsed by "Jimmy Payne." Complainants’ bank, Arvest Bank, stamped the check as an "On Us CK", which indicated the check was either cashed or deposited to another Arvest Bank Account.  Respondent Payne’s Trust Account on file with AREC is at Liberty Bank of Arkansas.  Complainants Sluik had the utilities turned on at the subject property for the inspection and appraisal.  No damages were incurred to the property during the inspection and appraisal. 

Complainants Sluik agreed to extend closing to July 15, 2015.

Complainants Sluik were unable to close on or about July 15, 2015, due to the inability of all parties to contact Respondent Payne who was supposed to be holding the $4,000 down payment funds. Pemco Limited’s contract, Forfeiture and Extension policy, stated a second extension of fifteen (15) days would be granted upon the payment of $25 per day for a total of $375.  Complainants Sluik paid the extension fee to Pemco Limited with cashier check number 3889890 in the amount of $375 to extend the closing date.  

Sometime between July 15, 2015, and July 24, 2015, Complainants Sluik met Respondent Payne’s wife, Michelle Payne at a parking lot where she gave them, in cash, the $4,000 down payment Complainants Sluik had given to Respondent Payne on or about April 23, 2015.

On July 24, 2015, Complainants Sluik closed on the purchase of the subject property at First National Title Company, Bentonville, Arkansas.  The HUD-1 reflected a credit to Complainants Sluik for $1,000 earnest money, a credit for $125 for a refund of five (5) days of the extension fee paid to Pemco Limited, and a Commission paid to Respondent Payne in the amount of $4,020. 

On October 27, 2015, November 13, 2015, and May 2, 2016, the Commission sent a copy of Complainants Sluiks’ complaint to Respondent Payne. Respondent Payne did not respond.

 

RECOVERY FUND ORDERS

Complainant Eldora McCarty

As a direct result of these proven violations, the Commission ordered Respondent Payne to pay Complainant Eldora McCarty, $21,500.00, within thirty (30) days of the date of the Order.

Complainant Rodney Elmore

As a direct result of these proven violations, the Commission ordered Respondent Payne to pay Complainant Rodney Elmore, $27,000.00, within thirty (30) days of the date of the Order.

Complainant Timothy and Sonya Sluik

As a direct result of these proven violations, the Commission ordered Respondent Payne to pay Complainants Timothy and Sonya Sluik, $2,100.00, within thirty (30) days of the date of the Order.

After respondent Payne did not pay within thirty (30) days, all amounts awarded were paid from the Real Estate Commission’s Recovery Fund.