Falwell, Adred Carol
Falwell, Adred Carol | Principal Broker | Newport, AR
06/25/2012 | Hearing No. 3240
Respondent: Adred Carol Falwell, Principal Broker, Sink Realty, Newport, AR
Violations: Arkansas Code Annotated § 17-42-311(a)(11) and Commission Regulations 10.12(a), 8.5(a) and 10.13(b)
Sanctions: Respondent is to pay penalties totaling $2,500 payable to the AREC, and to take 30 hours of the AREC post-licensure course. Such course is in addition to the regular continuing education requirement, is to be approved in advance by the AREC Executive Director and is not eligible for scholarship.
- On February 21, 2011, Respondent listed for sale 212 Vine St., Newport, Arkansas. The Property was owned by Charlie and Arlene Kunkel. Respondent included an Addendum to the Exclusive Right to Sell that stated in part, “the sellers hereby give Sink Realty the right to allow or disallow other real estate companies to show their property at 212 Vine, Newport, AR 72112.”
- On August 19, 2011, Complainant Reid, Principal Broker of Bratcher Real Estate showed prospective buyers, Cecil and Linda McDonald, several properties in Newport, Arkansas. The McDonalds asked Mary Bratcher Reid to arrange for them to see Seller Kunkel’s property at 212 Vine. Complainant Reid contacted Sink Realty and informed agent Massey with Sink Realty that she was asking for permission to show the property at 212 Vine St., Newport, Arkansas to prospective buyers. Respondent did not give permission to Complainant Reid to show the subject property to buyers McDonald. Complainant Reid informed agent Massey that she would send prospective buyers to Sink Realty so they could arrange to see the subject property with one of Sink Realty’s agents.
- Upon Complainant Mary Bratcher Reid’s advice, buyers McDonald contacted Respondent’s firm and arranged to view the property with one of Respondent’s agents. Buyers McDonald viewed the property with an agent with Respondent’s firm.
- On or about September 18, 2011, buyers McDonald contacted Complainant Reid and told her they wanted to make an offer on the subject property. Complainant Reid prepared an Exclusive Buyer Agency Agreement which Buyers McDonald signed. Complainant Reid prepared buyer McDonald’s offer for the subject property. Complainant Reid presented Buyer McDonald’s offer to Respondent Falwell. Respondent Falwell refused to present buyer McDonald’s offer to seller Kunkel because the offer had been prepared by Complainant Reid.
- On or about September 18, 2011, Respondent contacted prospective buyers McDonald directly and told them they needed to make their offer on the subject property through the Respondent’s firm. Respondent Falwell prepared an offer for buyers McDonald on or about September 20, 2011. The agency option on the offer prepared by Respondent Falwell indicated that the listing and selling firm were one and the same and represented both buyer and seller. Respondent Falwell knew or should have known that Buyers McDonald may have entered into an exclusive buyer agency agreement with Complainant Reid of Bratcher Real Estate. Respondent Falwell did not contact Complainant Reid to confirm whether such exclusive buyer agency agreement existed. Respondent Falwell did not notify buyers McDonald in writing to consult with an attorney regarding the risk of being liable for two (2) separate commissions.
- Respondent Falwell presented buyers McDonald’s offer dated September 20, 2011, to Sellers Kunkel. Seller Kunkel accepted Buyers McDonald’s offer and the transaction was subsequently closed.