Mon, Dec 14, 2009
Lewes Realty owner’s license suspended
Questions focus on handling of rental income
A state commission has temporarily suspended Lewes Realty owner Carole Sieber’s license to practice real estate sales.

The state’s online professional license verification system does not provide specific reasons the Professional Regulation Real Estate Commission suspended Sieber, but several customers who used Lewes Realty as their rental agent say they have not been paid for rental property the company handled this summer.

Sieber wouldn’t comment on the matter, but her attorney, Donald L. Gouge Jr. said, “If people are owed money, they’ll be paid.”

Gouge said about a dozen Lewes Realty customers might not have received payment for rental units the company handled.

He said the company is reviewing its accounting books to correct the situation. Gouge declined to comment on Sieber’s license suspension.

According to a state official, although license suspensions are public information, reasons for the action are not. The official said reasons for the suspension could come out during a hearing, which will be held in January, to determine the merits of the complaint against Sieber.

Sieber’s license suspension disciplinary order followed an October hearing and, according to state documents, is based on a determination that “she would pose a clear and immediate danger to the health, safety or welfare of the public if she were allowed to continue to practice real estate.”

The business remains open and is operating under the license of Phyllis Hoag, broker of record.

Despite Gouge’s promise of forthcoming payment, Pat and Betsy Vernon said Sieber has personally promised to pay them $2,000 in rental income for their Port Lewes property, but they haven’t received a dime.

“What Lewes Realty has done is just another form of theft,” said Pat Vernon.

The Vernons said they depend on promptly receiving income from the rental property so they can meet expenses – primarily a mortgage.

The Vernons said Lewes Realty has been their rental agent since 2005, when they purchased the property, and until this year they had no problems with the company.

But the Vernons, who live in State College, Pa., said they’re growing increasingly concerned as time goes by without received payment.

Pat Vernon said he’s concerned Lewes Realty might have accepted deposits from people seeking to rent units for summer 2010 and is using that money to pay accounts owed from summer 2009.

The Vernons said for their property, all Lewes Realty had to do after receiving a 50 percent deposit for the unit is mail a lease agreement, collect the balance owed, hand keys over to the renters when they arrive and collect the keys when the renters leave.

Vernon said he’s spoken to others who rented their property through the company and who have also heard promises of payment but have received no money.

He said in a discussion with Sieber, she told him the company handled about 350 rental units in the Lewes area.

Vernon said Lewes Realty, which is paid 12 percent of whatever a property rents for, receives its money up front. He said the company is also responsible for paying City of Lewes rental taxes from rental receipts.

“Who’s going to be responsible for paying the city its tax?” Vernon wondered.

Lewes Mayor Jim Ford said rental taxes are ultimately the homeowner’s responsibility.

But Ford said if there are complicating circumstances, the city would work with property owners to find a solution. He said January is the deadline for rental taxes. Ford said for the most part, rental tax is paid on an honor basis. He said property owners could cheat the system by not obtaining a rental property license from the city, which is used as a cross-reference for payment of taxes.

Ford said real estate companies handle rental tax payment differently. He said some send property owners a check for the tax that is payable to the city, while others pay the tax directly to the city.

He said in general, Lewes doesn’t have a problem collecting rental tax, and residents keep an eye out for possible scofflaws.

A phone call to Ruth Briggs King, Sussex County Association of Realtors executive vice president, seeking comment on rental-unit difficulties, was not returned.

The Vernons are still waiting and wondering what happens next. “Every time I call Lewes Realty I get a different excuse. It’s pretty frustrating,” Pat Vernon said.


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