Hernandez Realty Disciplined
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| Hernandez Real Estate company owner Michael Hernandez |
The penalties were part of a Vermont Real Estate Commission conclusion that Hernandez "engaged in unprofessional conduct" while involved with a potential sale of a 258 Sumner Road Stamford, Vt. property.
Hernandez was involved as the agent for the unidentified property seller, according to the complaint.
Hernandez did not return a telephone call seeking comment. Hernandez had the right to appeal within 30 days of the decision; a clerk with the commission office said today that Hernandez did not appeal the commission ruling.
Five Separate Financial Penalties
According to information contained within a written finding, Hernandez was ordered to pay five separate $1,000 fines after commission members determined that Hernandez violated several state real estate regulations, including unprofessional conduct.
The order states "the Commission orders that [Hernandez] license and any privileges [Hernandez] may have to renew his lapsed Vermont real estate broker's license be revoked."
The order also demanded that Hernandez pay the five penalties.
The hearing date was originally scheduled for Dec. 14 but was rescheduled at Hernandez request, according to the order. Hernandez did not appear at the January hearing, according to information contained within the court order.
Hernandez was originally licensed as a real estate broker in Vermont in 2002, according to information contained in the state's complaint against him. And, according to the complaint, although Hernandez held a real estate broker's license, his company, Hernandez Realty "was not properly licensed as a real estate brokerage firm in the State of Vermont until December 20, 2005."
The broker's license held by Hernandez lapsed in March 2006, according to the complaint.
"At all times relevant to these charges, [Hernandez} worked as a real estate broker under the business name Hernandez Realty located in North Adams, Massachusetts," stated the complaint.
Failure To Disclose Well Contamination
The complaint was filed after Hernandez, acting in a broker's capacity, advised a couple interested in the property that the site had no history of water problems. A property purchase price was negotiated between Hernandez and the couple and a purchase and sales agreement was signed by the the prospective buyers on March 28, 2005 and the sellers on March 30, 2005.
The agreement stipulated that the buyers had the right to terminate the agreement if the sellers failed to obtain a satisfactory well inspection within 21 days, according to the complaint.
That condition was extended to May 25, 2005 through agreement of both buyers and sellers.
History of Coliform
The buyers delivered a $5,000 contract deposit to Hernandez on March 30, which was deposited into a Berkshire Bank account in Pittsfield on April 8, although the Berkshire Bank is "not authorized to do business in the State of Vermont," according to the complaint.
Under Vermont's real estate regulations, the banks involved with state-based real estate transactions must be licensed to conduct business in Vermont.
Also under Vermont real estate law, any contract deposits must be deposited into an appropriate account within five business days of receiving the deposit.
Records indicated that water samples taken from the property in February and March of 2000 were tested and showed high and unsafe levels of coliform, a bacteria that can cause health problems for humans. Additional samples taken in May 2005 also showed evidence of high levels of coliform, according to the complaint.
An April 2005 water sample provided by Hernandez and allegedly taken from the property did not show any evidence of coliform, according to the complaint.
Additionally, "[Hernandez] had knowledge that [Feb. and March 2000] water tests were performed but failed to inform the buyer's of the property's past history of water problems upon their inquiry," according to the complaint.
Under Vermont real estate regulations, "A licensee working for a brokerage firm,employed by a seller or seller's agent must fully and promptly disclose to all prospective buyers all material facts within the licensee's knowledge concerning the property being sold. This obligation continues until the sale is closed or has been cancelled."
Buyers Learned Of Problem Via Independent Report
The prospective buyers became aware of a problem after they received an analysis of the May 2005 test results from the testers, Berkshire Enviro-Labs, Inc.. They were also advised that the water on the property should not be used for drinking or cooking until the contamination was eliminated, according to the complaint.
Additionally, the buyers, after learning about the water problems, demanded the return of their $5,000 deposit, but the deposit was not returned until September 2005, according to the complaint.
Additionally, Hernandez did not place the deposit funds in an individual trust account during the time period that the return of the deposit was in dispute as he should have, according to the complaint.
