Commercial Property
Alaska Dual Agent"s Last Chance Resides With Real Estate Commission
On Tuesday, February 17th, a state hearing officer, David Stebing, recommended some stiff punishments for Bonnie Mehner, the prominent Realtor who was successfully sued by a client in July 2000 for practicing undisclosed dual agency. He will suggest to the Alaska Real Estate Commission, when it convenes on March 4, 2004, that Mehner"s license be suspended for 120 days, that she pay a $20,000 fine, and that she be required to take continuing education classes in ethics and dual agency. While the penalties may appear stiff to those outside the industry, real estate sales are regulated by state licensure. If an agent is proven to have broken state law, he or she can suffer sanctions from the licensing commission in addition to civil penalties brought by lawsuits. As reported in Realty Times in July 2002, Mehner was sued by Joseph Columbus, a former first-time buyer who had purchased a home through Mehner. He claimed that she failed to disclose her dual agency status to him while encouraging him to pay full price for his $584,000 home. Mehner and her broker, Prudential Jack White Real Estate, collected $35,040 in commissions on the sale. A state Superior Court judge ruled against Mehner. From the findings of the court, Mehner: poached the buyer from her agent tricked him into believing that he could not secure the home without her help told the buyer that his initial offer was too low, and then failed to tell the seller of the buyer’s offer. The buyer"s first offer was closer to comparables than what the buyer ultimately paid for the home told the buyer there were multiple offers on the home when there were not to encourage him to pay more for the home failed to show him existing comparables that would have illustrated that he was overpaying for the home admitted in court that she did not follow state law with regard to dual representation. Mehner and her broker were ordered to pay a $200,000 award to Columbus. Mehner defended herself in court two years ago and at the recent hearing by saying that others do the same. Stebing, in his 60-page finding, said that isn"t an excuse. "The current dual agency law is not broken or impossible to comply with, as Mehner argues. Rather, the evidence establishes that choices were made not to follow the letter of the law." In response to what has been a nationally watched scandal by the real estate industry and commented upon by the NAR, the Alaskan Association of Realtors working with Rep. Norm Rokeberg, R-Anachorage, a former associate of Jack White Realtors, at first tried to introduce a bill that would effectively pardon any agents who had acted similarly to Mehner, but that failed to go forward as proposed. Instead the bill has been reintroduced which more clearly defines when agency begins - with "specific assistance," such as when an agent shows a piece of property. Meanwhile, about Mehner"s "substantial misrepresentations," Stebing wrote, "Sanctions in this case will set a clear standard for conduct, and they will communicate the message that when real estate licensees take on the role of dual agent, the must strictly comply with applicable legal requirements." Stebing"s recommendation for license suspension, fine and probation will either be accepted, rejected or modified by the Alaska Real Estate Commission when it convenes on March 4, 2004. Mrs. Mehner did not respond to e-mail requests for comments in time for publication.license course real estate commented:
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16.03.2012