Respondent(s): James Clayton Eason, Sales Associate, Keller Williams Market Pro Realty, Fayetteville, Arkansas and

Wyatt S. Hively, Sales Associate, Keller Williams Market Pro Realty - Branch, Bentonville, Arkansas, Formal Hearing #3619

Violation(s) for Respondent Eason: Arkansas Code Annotated §17-42-311(a)(2), §17-42-311(a)(9), §17-42-311(a)(10), and §17-42-311(a)(13) and Commission Regulations 8.5(b), 10.1(b), and 10.5(b).

Violation(s) for Respondent Hively: Arkansas Code Annotated §17-42-311(a)(2) and §17-42-311(a)(13) and Commission Regulations 8.5(b) and 10.1(b).

Sanction(s): Based upon these findings and conclusions, The Commission voted unanimously that Respondent Hively complete eighteen (18) hours of post-license education within six months of the date of this order. Respondent Hively will also be on probation for a period of two years. The respondent must notify the principal broker of this proceeding. During the two year probation, if the respondent changes principal brokers or real estate companies, the respondent must notify the Arkansas Real Estate Commission, or if the principal broker within the company changes, that any subsequent principal broker must be made aware of this proceeding and the principal broker must notify the Director of the Arkansas Real Estate Commission that they are aware of this proceeding.

The Real Estate Commission voted that Respondent Eason be fined in the amount of $5,000 payable within ninety (90) days of the date of this order. It has also determined that the respondent compete eighteen (18) hours of post-

license education and sixty (60) hours of pre-license education by December 31, 2019. Respondent Eason will be on probation for a period of two years. The respondent must notify the principal broker of this proceeding. During the two year probation, if the respondent changes principal brokers or real estate companies, the respondent must notify the Arkansas Real Estate Commission, or if the principal broker within the company changes, that any subsequent principal broker must be made aware of this proceeding and the principal broker must notify the Director of the Arkansas Real Estate Commission that they are aware of this proceeding. 

On or about December 2014, August 2015, and November 2016, Arkansas Real Estate Commission newsletters highlighted the importance for licensees to comply with Commission Regulation 10.5 in order to avoid advertising in a manner that distances themselves from their Principal Broker, thereby diminishing the consumers ability to determine the identity of their Principal Broker and the brokerage firm with which they are licensed. 

On or about May 19, 2016, the AREC Supervisor sent a letter to Respondent Eason, then actively licensed with Keller Williams Market Pro Realty, Fayetteville, Arkansas, informing him that Commission Regulation 10.5 requirements apply to all real estate advertising and promotional activities, and failure to comply with those regulations could result in disciplinary actions. Respondent Eason was asked to respond by June 3, 2016, explaining the measures he would take to operate in compliance with Commission Regulation 10.5. A copy of the letter was sent to Principal Broker J. Pat Newland, Keller Williams Market Pro Realty, Fayetteville, Arkansas, asking Mr. Newland to respond with an explanation of his efforts to supervise Respondent Eason’s real estate activities and to instruct Respondent Eason with regard to the fundamentals of real estate as required by Commission Regulation 10.4(b).

On or about June 1, 2016, Respondent Eason sent a letter to AREC stating he had received the AREC Supervisor’s letter of May 19, 2016, and had addressed two situations that could have led to possible violations of Commission Regulation 10.5 through social media. Respondent Eason indicated he would work to correct any advertising not in compliance with Commission Regulation 10.5.

On or about June 7, 2016, the AREC Supervisor sent a letter to Respondent Eason, in response to Respondent Eason’s letter dated June 1, 2016, which indicated Respondent Eason continued to have internet advertisements that were in possible violation of the requirements of Commission Regulation 10.5. Included in the letter was an attachment on which the AREC Supervisor wrote notes to Respondent Eason regarding the websites that were of concern. The AREC Supervisor requested Respondent Eason remove any advertising that did not meet the requirements of Commission Regulation 10.5 and send a written response to AREC by June 21, 2016, explaining the measures being taken to operate in compliance with Regulation 10.5. A copy of the letter was also sent to Principal Broker J. Pat Newland at Keller Williams Market Pro, Fayetteville, Arkansas, requesting a response from Newland explaining his efforts to supervise Respondent Eason’s real estate activities and instruct Respondent Eason with regard to the fundamentals of real estate practice as required by Commission Regulation 10.4(b).

On or about July 22, 2016, Kyle Dempsey, licensed salesperson with Keller Williams Market Pro, Fayetteville, Arkansas, sent an email to the AREC Supervisor and Respondent Eason in which Dempsey instructed Respondent

Eason to "take down" any internet pages which included Dempsey’s name which were non-compliant.

On or about July 22, 2016, AREC Executive Director Gary Isom sent a letter to Respondent Eason notifying him that since Respondent Eason had been notified by the Commission in 2016 regarding his compliance with Commission Regulation 10.5, and to date it remained unclear as to whether or not the matter was satisfactorily resolved, the Commission staff was not authorized to renew his license beyond December 31, 2016. Respondent Eason was advised to send to Mr. Isom’s attention, a written request to appear before the Commission to seek renewal of his real estate license beyond December 31, 2016.

In a follow up to Mr. Isom’s letter of July 22, 2016, and a subsequent conference call held August 29, 2016, with Principal Broker J. Pat Newland and Respondent Eason, Newland submitted a letter to AREC on or about August 30, 2016, confirming steps he had taken to clarify the Commission’s interpretation of Regulation 10.5, and to insure licensees under his supervision received the guidance they needed to be in compliance with that regulation. 

On or about September 7, 2016, Respondent Eason submitted a letter to AREC regarding his understanding of Commission Regulation 10.5 and actions he was taking to achieve compliance. In his letter Respondent Eason stated, "Since our meeting earlier this week I’ve reached out to Zillow to change the way my name appears on listings, as we recently saw…"Clayton Eason Realty, Inc.," looks to be the firm I work for rather than Keller Williams Market Pro Realty." 

On or about March 29, 2017, Respondent Eason, while still licensed with Keller Williams Market Pro, advertised on the website https://nwaluxury.platformcrm.com/big-sky, the gated community Big Sky – Bentonville West, as having "1/2 acre lots – design, build and buy your dream home for as low as $349,900." Details in the advertisement included contacting Respondent Eason with Clayton Eason Realty, as he was "introducing a new home buying process." Respondent Eason stated on his website that Clayton Eason Realty, "proudly presents a unique opportunity for home buyers in Northwest Arkansas," and, "Will be working with Zachary Construction." Respondent Eason was not licensed as Clayton Eason Realty, Inc., or Zachary Construction. Complainant Gavin Edwards, owner of the Big Sky development and Principal Broker of the listing firm, Synergy Realty Group, LLC, was not displayed in the website advertisement, and had not given Respondent Eason permission to advertise the Big Sky properties. 

On or about March 29, 2017, Respondent Hively, while still licensed with Keller Williams Market Pro, advertised on the website, www.nwamoveprogram.com, "The Big Sky and Clayton Eason Realty now introduce a new home buying process with these stylish, unique, and custom Country Homes and Farmhouses built at not only comparable, but a more competitive price for this prime location….Click ‘View Details’ to see how to start the process. Questions? Call Wyatt Hively @479-925-4168. To view more pictures of style to be built, floorplan options, available lots, pricing, builder info, loan qualification process, or any other details please press the ‘View Details’ button above." Respondent Hively was not licensed as Clayton Eason Realty. Complainant Gavin Edwards, owner of the Big Sky development and Principal Broker of the listing firm, Synergy Realty Group, LLC, was not displayed in the website advertisement, and had not given Respondent Hively permission to advertise the Big Sky properties. 

On or about October 17, 2017, Complainant Edwards received two marketing emails from Respondents Eason and Hively. The first email promoted property at 334 W. Horn Street, Fayetteville, Arkansas, advertising the property as "just listed today," and that it could be seen by contacting Respondents Eason or Hively, now licensed with NWA Residential Real Estate, Principal Broker, Ken Lazenby. The listing agent for 334 W. Horn Street, Lenore Cottrell of The Brandon Group, Bentonville, Arkansas, was not mentioned. The second email promoted property at 520 SE Tourmaline Mews, Bentonville, Arkansas, advertising the property as, "we have 9 modern townhomes that have been left white box…" and included description of style and location, and that it could be seen by contacting Respondents Eason or Hively. The brokerage firm with whom Eason and Hively were licensed, NWA Residential Real Estate, was inconspicuously listed at the bottom. The listing agent, John Mayer of Coldwell Banker Harris, McHaney & Faucette – Rogers, was not mentioned in the email. 

On or about December 19, 2017, Complainant Edwards received a marketing email from Respondents Eason and Hively promoting property located at 4715 N. 2nd Street, Rogers, Arkansas, advertising the property as, "just hit the market and available for immediate showings." The brokerage firm with whom Eason and Hively were licensed, NWA Residential Real Estate, was inconspicuously listed at the bottom. The listing agent, Suzanne Allen, Crye-Leike Realtors – Rogers, Arkansas, was not mentioned in the email. 

On or about December 19, 2018, Principal Broker Ken Lazenby of NWA Residential Real Estate confirmed he was not aware that Respondents Eason or Hively had sent marketing emails regarding the properties located at 334 W. Horn Street, Fayetteville, Arkansas; 520 SE Tourmaline Mews, Bentonville, Arkansas; or 4715 N. 2nd Street, Rogers, Arkansas.

On or about May 17, 2018, Respondent Eason’s Zillow advertisement landing page made multiple references to Clayton Eason Realty, Inc., or Clayton Eason Realty with an address of 1111 N. Walton Blvd., Bentonville, Arkansas. The office of NWA Residential Real Estate is located at 1111 N. Walton Blvd. in Bentonville, Arkansas. 

On or about August 9, 2018, the 21 listings presented on Respondent Eason’s webpage, www.nwahomes.com/agent/clayton-eason-realty, showed as active listings. On or about August 9, 2018, the 21 listings, according to NABOR MLS, were all cancelled, sold or withdrawn and none were currently active listings. 

On or about August 10, 2018, the 32 listings presented on Respondent Eason’s webpage, https://claytoneasonrealty.com, showed 30 were active and 2 were pending. On or about August 10, 2018, Clayton Eason Realty had 4 active listings per NABOR MLS, and 2 of those were pending.