Respondent(s): Sarah Lynn Barton, Salesperson, J. Pat Newland, Principal Broker, Keller Williams Market Pro Realty, Fayetteville, Arkansas and Eve McCain, Salesperson, Glenda Edwards, Principal Broker, Crye-Leike Realtors - Springdale, Springdale, Arkansas, Formal Hearing #3602

Violation(s) for Respondent Barton: Arkansas Code Annotated §17-42-311(a)(2) and Commission Regulation 8.5(a).

Violation(s) for Respondent Newland: Arkansas Code Annotated §17-42-311(a)(2) and Commission Regulations 8.5(a) and 10.4(b). 

Violation(s) for Respondent McCain: Arkansas Code Annotated §17-42-311(a)(2) and Commission Regulation 8.5(a).

Violation(s) for Respondent Edwards: Arkansas Code Annotated §17-42-311(a)(2) and Commission Regulations 8.5(a) and 10.4(b).

Sanction(s): The Commission voted unanimously that Respondents Sarah Barton and Eve McCain will be required to attend the 18-hour salesperson post license education course within six months from the date of the order, and Respondent Glenda Edwards will be required to attend a 30-hour broker post-license education course within six months of the date of the order. 

The Commission voted that Respondent J. Pat Newland will be issued a fine in the amount of $2,000, to be paid within six months of the date of the order and will be required to attend a 30-hour broker post-license education course within six months of the date of the order.

On or about March 18, 2016, Complainant Seller Hutchison, Seller Donna Clark and Respondent Barton of Keller Williams Market Pro Realty in Fayetteville, Arkansas, entered into an Exclusive Right to Sell Agreement to list subject property located at 2811 Carley Place, Springdale, Arkansas, (Lot 19 Carley Meadows) in the amount of $153,500. The listing period was to begin on March 18, 2016, and expire on September 30, 2016. The Exclusive Right-To-Sell Agreement was not signed by a Principal or Executive Broker. 

On or about July 9, 2016, Buyer Trahan, through Selling Firm Crye-Leike Realtors, submitted a Real Estate Contract for the purchase of 2811 Carley Place, Springdale, Arkansas. The Contract was not accepted by Seller Hutchison. 

On or about July 14, 2016, Respondent Barton, on behalf of Seller Hutchison, submitted a Real Estate Contract to Buyer Trahan for the purchase of 2811 Carley Place, Springdale, Arkansas, in the amount of $ 136,000 by conventional loan, Seller to pay $2,000 of buyer’s closing cost and/or pre-paids. Paragraph 30 stated, "Seller will complete tiling and grouting in laundry room and kitchen. Seller will move the hot water heater so the door will not hit it. Seller will have support beams reinforced in attic to take care of sagging area, other needed areas (2) will be reinforced." Closing was to occur August 10, 2016. The contract form was prepared by Respondent Barton. Respondent McCain signed the contract as Selling Agent. Respondent Edwards signed as Selling Firm Principal Broker. Respondent Barton signed as Listing Agent. Executive Broker David Hodges signed as Listing Firm Executive Broker. The contract was not signed by Respondent Newland. Buyer Trahan also signed an Earnest Money Addendum indicating $500 in Earnest Money to be paid by check to the Listing Firm within three days. Buyer Trahan wrote a check for $500 to Prime Title for the Earnest Money on or about July 15, 2016.

On or about July 15, 2016, Buyer Trahan entered into a Buyer Representation Agreement with Respondent Eve McCain of Crye-Leike Realtors, Springdale in Springdale, Arkansas.

On or about August 5, 2016, a Closing Date Modification was agreed to by Complainant Seller Hutchison and Buyer Trahan to change the closing date from August 10, 2016 to August 19, 2016. Closing did not occur on August 19, 2016. Respondents McCain and Edwards electronically signed the addendum for the Selling Firm. Respondent Barton signed the Closing Date Modification as Listing Agent. Executive Broker David Hodges signed as Listing Firm Executive Broker. The Closing Date Modification was not signed by Respondent Newland.

On or about September 2, 2016, Buyer Trahan signed a General Addendum stipulating Buyer would pay $50 a month for rent for up to 12 months or at closing of probate. The General Addendum indicated that rents collected from Buyer Trahan were to be credited toward the purchase price at time of closing. Respondents McCain and Edwards signed as Selling Agent and Selling Firm Principal Broker respectively. Respondents Barton and Newland did not sign the General Addendum. Complainant Seller Hutchison did not sign the General Addendum.

On or about September 6, 2016, Buyer Trahan moved into the subject property and wrote a check in the amount of $100.00 to "Debbie Hutchison" with a memo line which read, "60 days rent". According to Respondent McCain the check was delivered to Seller Hutchison’s title company.

Buyer Trahan signed page 4 of the Inspection, Repair and Survey Addendum on September 8, 2016. Respondents McCain and Edwards signed as Selling Agent and Selling Firm Principal Broker respectively.

On or about October 10, 2016, Complainant Seller Hutchison found Buyer Trahan occupying the subject property without her permission or knowledge. 

According to billing information, Attorney Larry McCredy and RMP Attorneys at Law worked on a lease agreement for Complainant Hutchison on or about November 10, 2016. A lease agreement between Buyer Trahan and Complainant Seller Hutchison was mailed to Buyer Trahan by Attorney Larry McCready. The lease agreement was not signed by either party.

On or about November 14, 2016, Buyer Trahan wrote a check to "Debbie Hutchison" in the amount of $1400.00 with a memo of "Nov & Dec Lease/Rent." According to Respondent McCain the check was held by the selling firm, Crye-Leike Realtors - Springdale. 

On or about November 16, 2016, Buyer Trahan signed a Closing Date Modification Addendum to change the closing date to November 15, 2017. Complainant Seller Hutchison did not sign the Addendum. Respondents McCain and Edwards signed as Selling Agent and Selling Firm Principal Broker respectively. 

On or about January 5, 2017, Prime Title and Escrow Company disbursed $500 by check number 707838 to Buyer Lindsey Trahan as an Earnest Money Refund. 

On or about January 30, 2017, Buyer Trahan vacated the property.