Letter to the Editor: Combs explains real estate financing arrangement
Friday, December 22, 2017
I wish to address a recent issue that concerns me. I have been in the development and real estate business for 34 years. I have always tried to do the best job that I could, serving my clients and following the rules and regulations of the N.C. Real Estate Commission.
Last year, Mary Daniel filed a complaint with the N.C. Real Estate Commission, involving a new home, built in 2008 by the Windstone Building Co. At that time, I owned a 33.3 percent interest in the Windstone Building Co. In 2009, Ms. Daniel initially previewed the home with another sales agent. She wanted to purchase the home, but could not obtain financing. So, eight years ago, the Windstone Building Co. owner-financed the home for her. She originally agreed to obtain financing within three years. When she was unable to arrange financing within the agreed upon time, she asked the Windstone Building Co. to extend the original owner-financing agreement, not once but twice.
The Windstone Building Co. agreed to continue to help Ms. Daniel with the owner-financing and by applying her monthly payment to her principal and interest until she could secure permanent financing. In 2014, after five years, Ms. Daniel obtained permanent financing. At which time, she requested that I write a new contract to purchase showing her original down payment and all the applied payments.
Although her original contract was still valid and all her payments had been applied, I prepared a new contract. Since Ms. Daniel had lived in the new home for five years, had never addressed any problems about the home with me or the Windstone Building Co. and was very familiar with the home and the neighborhood, I selected the choice of “no representation,” meaning no opinion, on the new contract’s property disclosure form.
She indicated that she was happy with her home and with the owner-financing, which enabled her to live there for the initial five years. More than two years after the 2014 closing, I received notice that Ms. Daniel had filed a complaint in reference to the new contract’s disclosure form.
Although I believe I did nothing wrong, the N.C. Real Estate Commission contended that on the new contract I should have made additional disclosures on the property disclosure form. At this time, I decided to forgo my right to a hearing from the Commission and to accept the finding and reprimand. With this joint resolution, I look forward to moving ahead.