The Creel Deal

It never ceases to amaze me when I read of the shenanigans our fellow agents pull, then get fined for. This month's batch has some real winners in it (no names mentioned of course). 

1. Rules Violated: NWMLS Rule 2 (Required Turn-in), Rule 11(b)(ii) (Restrictions on Showing and Sale),    Rule 25 (Cooperation in Showing and Submitting Offers and Disclosing Information to Other Members), and Rule 20 (Notice of Sale)
Summary of Complaint: Agent took a listing and failed to deliver it to NWMLS for input or input it by 5:00 p.m. the next day, failed to timely present a buyer's offer to seller, and failed to report status change in a timely manner. Agent listed own telephone number in the owner's phone field.
Penalty: $5,000. Agent altered listing information on many listings before they expired.

2. Rules Violated: NWMLS Rule 1 (Listing Input) and Rule 10 (Incomplete, Inaccurate, and/or Inappropriate Exclusives)
Summary of Complaint: Agent altered listing information on many listings before they expired.
Penalty: $5,000 fine with $2,000 suspended on the condition that the member not be found guilty of any further Rules violations within 12 months. Agent must take Rules and Regulations class within 1 year.

3. Rules Violated: NWMLS Rule 2 (Required Turn-in), Rule 22 (Duplicate Listings), and Rule 122 (Notification Sale Closed)
Summary of Complaint: Agent input duplicate listing without submitting it to NWMLS for input and payment of fee, and failed to report notice of sale in a timely manner.
Penalty: $3,000 fine with $1,500 suspended on the condition that the member not be found guilty of any further Rules violations within 12 months.

4. Rules Violated: NWMLS Rule 17 (Solicitation of Listings)
Summary of Complaint: Agent solicited another member's active listing.
Penalty: $5,000 fine.

5. Rules Violated: NWMLS Rule 17 (Solicitation of Listings) and Rule 62 (Limited Forms Usage)
Summary of Complaint: Agent solicited another member's active listing, including preparing a Form 19 to cancel the listing.
Penalty: $1,000 fine.

6. Rules Violated: NWMLS Rule 1 (Listing Input), Rule 2 (Required Turn-In), Rule 10 (Incomplete, Inaccurate, and/or Inappropriate Exclusives), Rule 101 (Division of Commissions), and Rule 120 (Notice of Sale)
Summary of Complaint: Agent failed to disclose a Short Sale, listed inaccurate information, pressured the selling agent to lower the selling office commission, and failed to report status change in a timely manner.
Penalty: $500 fine with $250 suspended on the condition that the member not be found guilty of any further Rules violations within 12 months.

7. Rules Violated: NWMLS Subscription Agreement (Sections 1, 12, and 13)
Summary of Complaint: Agent removed the key from the keybox and left it outside so the home inspector could access another member's listing.
Penalty: Subscriber fined $5,000 with $2,500 suspended on the condition that the subscriber not be found guilty of any further Rules violations within 12 months. Member and agent must take Rules and Regulations Class within 60 days

8. Rules Violated: NWMLS Rule 17(a) (Solicitation of Listings)
Summary of Complaint: Agent sent another member's listing client an email alerting them to errors in the current listing and suggesting the client change listing agents.
Penalty: $5,000 fine with $4,000 suspended on the condition that the member not be found guilty of any further Rules violations within 24 months

9. Rules Violated: NWMLS Rule 50(b) (Electronic Keys), Rule 86 (Billing Verification Report), and Subscription Agreement
Summary of Complaint: Agent used his Supra Key to access another member's listing after his real estate license had expired. Office failed to notify NWMLS that agent's license had expired.
Penalty: $2,500 fine with $2,000 suspended on the condition that the member not be found guilty of any further Rules violations within 24 months.

Since writing a post on Scams Operating on craigslist.com last year, I've received dozens of emails and phone calls thanking me for the post and asking many questions.

The most interesting call I received was from a homeowner in Florida that called after being approached by a man expressing interest in a home she had for rent. She knew something smelled fishy and felt it to be a scam, but couldn't quite figure out what was up since it didn't involve cashiers checks or Western Union as the standard scam does.

After speaking with her at length and helping her reach a conclusion, it was apparent to me it was worthy of a post. These challenging times are making many property owners anxious to find renters to cover those mortgages, and often many are inclined to bend common sense rules and take big chances when it comes to renting their home out. 

The homeowner described the following: She was offered cash for the rental by a fellow claiming to be rather wealthy, he said he was getting a divorce and wanted the rental to be a secret. He wanted a lease, but would offer no identification whatsoever (refused). He wanted to pay several months in cash, which he had a lot of, yet he drove an old beat-up car. He said he owned many luxury cars (even two Hummers), but they were all currently loaned out (but of course, he explained, she would see them at the home periodically in the future).

The owner was actually contemplating renting the home to the man due to her need for cash, she had even taken a deposit. After bouncing the info around in my thick skull, I felt it sounded like someone acting as a "front-man" to rent the home for illegal purposes. It could be a safe house for illegal aliens, or drugs, and it could be to run a drug dealing or manufacturing operation. One thing was for sure, he was up to no good.

After discussing my thoughts with her, and pointing out that anyone would be foolish to rent to a person that refuses to offer proof of identity (to say the least), she decided to return the cash deposit and not enter into the lease with him. As I told her, I know the money would be nice to have, but imagine what it will cost you if they set-up a meth lab in there. Many vacant homes are even being used without the owners knowledge for illegal purposes (People seem to believe walking away from a home ends their responsibility).

As the market becomes flooded with rental properties, many owners will feel inclined to rent to anyone with cash in hand. If you do so, you may be making a mistake so enormous that the consequences' will make your current financial issues seem trivial.

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