Michael Scott Maclay v. Idaho Real Estate Commission

300 P.3d 616, 154 Idaho 540, 2012 WL 231250, 2012 Ida. LEXIS 35
CourtIdaho Supreme Court
DecidedJanuary 26, 2012
Docket37946
StatusPublished

This text of 300 P.3d 616 (Michael Scott Maclay v. Idaho Real Estate Commission) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael Scott Maclay v. Idaho Real Estate Commission, 300 P.3d 616, 154 Idaho 540, 2012 WL 231250, 2012 Ida. LEXIS 35 (Idaho 2012).

Opinion

W. JONES, Justice.

I. Nature op the Case

Michael Maclay (“Maclay”) appeals the district court’s decision affirming the Idaho Real Estate Commission’s (“Commission”) Final Order, which revoked Maclay’s Idaho real estate license and assessed him a $5,000 fine. Maclay is alleged to have used another person’s broker’s license to carry on Help-U-Sell List 4 Less Realty (“Help-U-Sell”), prepared incomplete brokerage representation agreements without either a price provision or a conspicuous beginning and end date, advertised listed properties without a listing broker’s licensed business name, used a new brokerage name prior to its approval by the Commission, provided misleading advertising to the public, accepted real estate fees not paid through a broker for the performance of acts requiring a real estate license, engaged in a continued or flagrant course of misrepresentation, failed to account for or remit any funds coming in his possession belonging to a brokerage, engaged in dishonorable dealings and recklessness or gross negligence, and acted as a real estate salesperson without a license. Maclay contends that the Commission’s decision is contrary to I.C. § 67-5279(3) because it is not supported by substantial evidence on the record as a whole; exceeds the Commission’s statutory authority; is made upon unlawful procedure; violates constitutional or statutory provisions; and is arbitrary, capricious, *542 and an abuse of discretion. Maclay also contends that his substantial rights were prejudiced contrary to I.C. § 67-5279(3). Because the Commission’s decision is supported by substantial evidence and the other issues under I.C. § 67-5279(3) were waived, this Court affirms the Commission’s decision.

II. Factual and Procedural Background

Michael Maclay has been a licensed real estate agent in Idaho since February 1, 2000. On March 10, 2006, he became licensed with broker John Runkle (“Runkle”) at RealTeam Real Estate Center, Inc. (“RealTeam”). 1 While working with RealTeam, Maclay arranged with Idaho property owners to pay up-front marketing fees for their properties to be listed on the Multiple Listing Service (“MLS”). 2 Some of these fees were made payable directly to Maclay. 3 Runkle, the licensed broker of RealTeam, had a conversation with Maclay regarding his up-front marketing fee strategy. During their conversation, Runkle told Maclay that before Maclay collected any up-front marketing fees, he needed to receive a letter of approval from the Commission and get his clients to sign an addendum.

Following their conversation, Runkle received a complaint from Maclay’s client, Aaron Klennert (“Klennert”), claiming that he paid an up-front marketing fee to Maclay. Runkle did not find Klennert’s listing file. Therefore, the money paid by Klennert was not paid through the RealTeam brokerage. Citing Maclay’s inability to conform to office policies, Runkle terminated Maclay’s employment on or about October 30, 2006, inactivated Maclay’s license with the Commission on February 12, 2007, and filed a formal complaint (“Complaint”) with the Commission. The Complaint alleges that Maclay took payments directly from clients, misrepresented RealTeam, and purposefully failed to turn in files and fees to the RealTeam brokerage. Runkle subsequently received several other complaints 4 from Maclay’s up-front marketing fee clients. Runkle later learned that Maclay had been utilizing his up-front marketing fee even before he joined RealTeam.

After his termination at RealTeam, Maclay became associated with owner/broker George Kucera (“Kucera”) at Help-U-Sell as a sales associate on January 12, 2007. Maclay’s license was activated on March 1, 2007. Kucera was a licensed broker in Idaho and Washington. Kueera’s Help-U-Sell franchise was dually licensed in Idaho and Washington and had offices in both states. Maclay worked in the Idaho office. Apparently, at some point, Kucera wrote a letter approving of Maclay’s up-front marketing fee strategy.

On October 8, 2007, Kucera passed away. A qualified broker was not appointed to carry on the Help-U-Sell franchise in Idaho, so Help-U-Sell’s Idaho license was terminated on October 31, 2007. As yet, Maclay has not *543 obtained an Idaho broker’s license. Maclay’s license, thereafter, was placed on inactive status.

Maclay claims that Kucera left the Help-U-Sell franchise to him by a “transition letter” or “letter of assignment” allegedly signed by either Kucera 5 or Kucera’s son, who represented Kucera’s estate after his death. Maclay also asserts that he was appointed as interim broker for the Help-U-Sell office in Washington. On November 14, 2007, Maclay filed a document with the Idaho Secretary of State to remove Kucera’s name from the assumed business name of “Help-U-Sell/List 4 Less Realty.” The national franchise for Help-U-Sell (“National Franchise”) denied that Maclay was the owner of Kucera’s Help-U-Sell franchise. The National Franchise later issued a formal cease and desist letter to Maclay.

Maclay recognizes that Help-U-Sell does not exist in Idaho “from a state licensing perspective.” Regardless, he stated that he continued to do business in Idaho through Kucera’s Help-U-Sell franchise’s website. Maclay asserts that his activities with regard to the website are not subject to Idaho real estate law because he was only offering “for sale by owner marketing.”

Two days before Help-U-Sell’s Idaho license was terminated, Alann Krivor signed two exclusive seller representation agreements for two properties located in Idaho, listing a brokerage fee. John Dohm (“Dohm”), Maclay’s assistant, designated himself and Maclay as the agents and initialed that the term of the agreement commenced on November 26, 2007. On November 28, 2007, Krivor’s properties were activated on the MLS. On the MLS, Maclay was named as the listing agent, even though Maclay was not licensed under a broker on that date, and Kirbi Swanson (“Swanson”) and Treaty Rock Realty, Inc. (“Treaty Rock”) were named as the listing broker and brokerage, respectively, even though the data sheets for these properties list Help-U-Sell as the listing brokerage.

Swanson is a licensed broker and the owner of Treaty Rock. She previously agreed to hire Maclay and Dohm as sales agents after the termination of Help-U-Sell’s Idaho license. Maclay’s and Dohm’s term of employment with Treaty Rock was for one to one and a half months and was to commence on December 2007. As a condition to his hiring, Maclay was given permission by Swanson to list Krivor’s properties with Treaty Rock when Maclay’s employment started.

Maclay denies listing Krivor’s properties prior to his employment with Treaty Rock even though he is named as the listing agent. He also denies having knowledge that any paperwork had been completed with respect to these properties, until he later became licensed with Treaty Rock. Maelay’s signature and handwriting do not appear on any of these documents, but Swanson confirmed that these listings were brought by Maclay to Treaty Rock.

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Cite This Page — Counsel Stack

Bluebook (online)
300 P.3d 616, 154 Idaho 540, 2012 WL 231250, 2012 Ida. LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-scott-maclay-v-idaho-real-estate-commission-idaho-2012.