CHARLOTTE – The North Carolina Real Estate Commission has taken disciplinary action against Opendoor, an iBuyer active in North Carolina. And that could put a spotlight on iBuyers during a traditionally busy time of year for residential home sales, multiple North Carolina real estate agents told WRAL TechWire.
Each month, the Real Estate Commission releases a list of the disciplinary actions taken against licensees in the state of North Carolina.
The most recent report lists on such action taken against “Opendoor Brokerage LLC.” The report states that the Commission suspended the firm’s license for a period of 18 months, effective on March 10, 2022.
But the Commission also immediately stayed the suspension of the firm, effective March 10, 2022, according to the disciplinary record.
“It’s a negotiated settlement,” said Charlie Moody, assistant director of the Regulatory Affairs Division at the North Carolina Real Estate Commission in an interview with WRAL TechWire. “The company agreed that a representative of the firm would taken certain courses in order to stay the suspension.”
Still active and operating
“Opendoor Brokerage is still an active brokerage in North Carolina,” a spokesperson for Opendoor told WRAL TechWire. The public record of licensure lists the current status of Opendoor Brokerage LLC as active.
The company remains active because the suspension was stayed, said Moody.
There are no prior disciplinary records associated with Opendoor Brokerage LLC, according to a review of records dating back to January 2017 on the North Carolina Real Estate Commission’s website.
Moody confirmed to WRAL TechWire that no other disciplinary action had been taken against Opendoor Brokerage LLC.
“They’ve had other complaints,” said Moody.
Failure to disclose
The North Carolina Residential Property Disclosure Act requires the owner or owners of a residential property to complete a property disclosure statement developed by the North Carolina Real Estate Commission. The Act states “the owner of the real property shall furnish to a purchaser a residential property disclosure statement.”
In North Carolina, real estate agents are also required to affirmatively disclose any and all material facts regarding a property to all parties involved in the transaction.
The latest disciplinary record states that the action taken by the North Carolina Real Estate Commission is in regard to “three separate residential transactions” where Opendoor Brokerage LLC acted as the listing firm.
“In one transaction, Opendoor Brokerage LLC’s broker failed to ensure that the seller client addressed all material issues noted on a previous buyer’s home inspection report prior to re-listing the property and/or failed to disclose any outstanding material items which were not corrected,” the disciplinary record reads.
In addition, the disciplinary action notes that the real estate broker who listed the property “initially advertised the subject property as having an outdoor pool along with hardwood and tile floors, when it did not.”
Two additional complaints
The second transaction for which Opendoor Brokerage LLC received disciplinary action is one where the real estate broker “failed to pull the septic permit prior to listing the property as a 5-bedroom home.”
That listing was inaccurate and a misrepresentation, as the “septic permit only allowed for 3-bedroom occupancy,” the disciplinary record notes.
“In the third transaction, Opendoor Brokerage LLC’s vendor buried parts of the outdoor pool beneath the back yard instead of removing it all from the property,” the disciplinary record reads. “The seller has now excavated and removed all of the items from beneath the yard after taking the home off the market.”
In addition, the disciplinary record notes that for the transaction, “the listing agreement with Opendoor Brokerage LLC’s broker failed to include her license number and failed to comply with Commission rules by not placing the fair housing language in a clear and conspicuous manner.”