Wallace, Jerry

Wallace, Jerry | Salesperson | Bryant, AR

10/17/2011 | Hearing No. 3156

Respondent: Virgil Brown, Principal Broker, Jerry Wallace, Salesperson, Vue Realty, Bryant, AR, Formal Hearing # 3156Violations:

Both Respondents - Arkansas Code Annotated § 17-42-311(a)(7), 17-42-311(a)(11) and 17-42-311(a)(13); and Commission Regulations 10.12(a), 10.12(b), 10.10(a) and 8.5(a)

Respondent Brown - Commission Regulations 10.4(b), 10.7(b)(1), 10.7(b)(3) and 10.11Sanctions:

Respondent Wallace is fined $500 per charge, for a total of $5,500. His license is revoked.

Respondent Brown is fined a total of $2,500. His broker’s license is revoked.In a Recovery Fund Hearing Respondents were ordered to pay Complainant Davidson’s expenses in the amount of $1,600.

  • On March 21, 2009, Vickie and Gerald Wallace, Respondent Jerry Wallace’s parents, made an offer of $166,000 on a property at 1480 Hilltop Road, Alexander, AR. Respondent Wallace did not present this Offer to Seller Complainant Davidson until December 2009. Closing date was set for December 30, 2009. A second Offer was made by RI, LLC for $166,000 with a closing date of June 1, 2009. This offer was signed by Seller Complainant Davidson but was not dated. Respondent Virgil Brown held an ownership interest in RI, LLC. Seller Complainant Davidson was not aware that Respondent Brown held this ownership interest.
  • On April 2, 2009, another Offer by RI, LLC was received for a sales price of $163,300 with a closing date of May 15, 2009. This offer was signed by Respondent Wallace on April 2, 2009; the Seller’s signature on this Offer is not the signature of Seller Complainant Davidson. On May 9, 2009, a Net Sheet was forwarded to Bank of America for the $163,300 Offer from RI, LLC as the Buyer, along with a workout letter and other pertinent short sale processing documents.
  • On September 30, 2009, Complainants Vaughan made an Offer for $185,000 on the subject property through Tammy McCorkel, their sales agent with Truman Ball and Associates. This offer was not signed by Seller Complainant Davidson, listing agent Respondent Wallace or listing Broker Respondent Brown. This Offer was not presented to Seller Complainant Davidson. Complainants Vaughan were aware that this was a Short Sale. Respondent Wallace informed Complainants Vaughan’s sales agent McCorkel that a previous offer was no longer in consideration. The expiration date on Complainants Vaughan’s offer was October 5, 2009.
  • On October 5, 2009, Bank of America contacted Respondent Wallace stating the HUD-1 and real estate contract were needed to prevent deactivation of the account. Records received from Bank of America reflect that on October 8, 2009, a HUD-1 was receivedby Bank of America listing RI, LLC as the buyer for $166,000. On October 21, 2009 Bank of America asked Respondent Wallace for the name of the buyer to provide the investors. Respondent Wallace provided the HUD-1 listing Vickie Wallace as the buyer. On October 22, 2009, Bank of America issued a Pre-foreclosure Settlement Statement showing Vickie Wallace as the buyer for the $166,000 sales price. This Statement from Bank of America Home Loans Servicing, LP, was provided by the Respondents; however, it had the date and account number removed. This Statement stated the closing had to occur no later than December 5, 2009.
  • A Pre-foreclosure Settlement Statement from Bank of America Home Loans Servicing, LP states “...(Bank of America) Home Loans Servicing, LP and/or its investors agree to accept a short sale payoff...The approved buyer(s) is/are Vickie Wallace and the sales price for the property is $166,000.” October 22, 2009, was the date the Statement from Bank of America showed as an acceptance date. Complainants Vaughan were notified by Salesperson McCorkel that the party who made the original offer was again interested in the property; therefore, Complainants Vaughan needed to make their highest and best offer. At 7 pm. on October 22, Complainants Vaughan made an offer of $206,000 for the subject property.
  • On October 28, Complainants Vaughan’s offer of $206,000 on the property located at 1480 Hilltop Road, Alexander, AR was accepted by Seller Complainant Davidson. The closing date was stipulated as October 30, 2009. On or about October 29, 2009, Salesperson McCorkel told Complainants Vaughan that she was told by Respondent Wallace that the Complainants Vaughan had the highestest offer and “got the house” with a closing date of November 13, 2009. Respondent Wallace did not prepare an agreement to extend the closing date.
  • Sometime in early November, Complainants Vaughan received a call from Salesperson McCorkel that Vue Realty had neglected to change the name on the contract to reflect the Vaughan Offer when submitting the Vaughan offer to Bank of America. Respondents did not present Complainants Vaughan’s offer to Bank of America.
  • A couple of days later, Complainants Vaughan received a call from Salesperson McCorkel and were told the Listing Agent, Respondent Wallace, wanted McCorkel to let Complainants Vaughan know that there was a possibility that mobile homes and duplexes would be placed on the four acres adjoining the subject property. Respondent Wallace later purchased this adjoining property and built a house for his use on the property.
  • About Mid-November of 2009, Complainants Vaughan received a call from Salesperson McCorkel stating that their contract was canceled, that the other buyer was getting the property because they could close faster. Complainants Vaughan were told by Salesperson McCorkel that Vue Realty would reimburse them for their expenses if they signed the termination agreement stating they mutually agreed to terminate the contract between Buyer/Complainants Vaughan and Seller Complainant Davidson.
  • On November 16, 2009, the termination agreement was signed by Complainants Vaughan, Seller Complainant Davidson, Respondent Wallace and Respondent Brown. Complainants Vaughan signed the termination agreement because they were afraid they would not get their money for the expenses Complainants Vaughan had incurred and still might not get the house. On November 18, two days after signing the termination agreement, Respondent Wallace faxed to the buyer’s agent, Salesperson McCorkel, a copy of the Short Sale Addendum for Complainants Vaughan’s signatures. A Short Sale Addendum had never been signed by Complainants Vaughan. On or about November 23, 2009, Complainants Vaughan received a check in the amount of $800 from Brown Riordan Associates, refunding Complainants Vaughan’s appraisal and inspection expenses. On or about mid-November 2009, Respondents Wallace and Brown contacted agent McCorkel’s Principal Broker, Scott Cobb, and offered to arrange for Complainants Vaughan to rent the subject property from the Buyers Wallace for 90 days and then purchase the property from Buyers Wallace for $206.000. Broker Cobb notified Complainats Vaughan of the Respondents’ offer. Complainants Vaughan chose not to rent or buy the property from Buyers Wallace.
  • Sometime in December 2009, Respondent Wallace went unannounced to Seller Complainant Davidson’s home in Cave City, AR to obtain Complainant Davidson’s signature on a new Offer. Seller Complainant Davidson stated that Respondent Wallace informed her that Complainants Vaughan’s Offer of $206,000 was taking too long to close, and in order to prevent the property from going into foreclosure on December 5, 2009, Seller Complainant Davidson would need to sign the Offer from Vickie and Gerald Wallace in the amount of $166,000. This day in December 2009 was the first time Seller Complainant Davidson was made aware of Vickie and Gerald Wallace’s offer of $166,000. Seller Complainant Davidson accepted and signed the $166,000 Offer.
  • On June 17, 2009, Arkansas Real Estate Commission Staff sent a letter to Respondent Brown requesting the dates and proof of presentation to Bank of America of all Offers written by Complainants James and Peggy Vaughan and Buyers Vickie and Gerald Wallace and any response from Bank of America pertaining to these Offers, including rejection or acceptance notices. This information was not provided to the Commission by Respondent Brown.