Failure To Disclose: Broker Who Allegedly Used Land Contract To Unload Property On Unwitting Buyer w/out Disclosing Existing Lien Faces State Real Estate Commission Disciplinary Action

In Muncie, Indiana, The Star Press reports:

• A Henry County real estate broker is facing disciplinary action for allegedly withholding mortgage information from a buyer.
  
  Three years ago, Murl Holstein of Springport sold a 1,400-square-feet apartment house/retail space, built at 2614 S. Madison St. in 1920, to Rhonda Mayse.
  
  She planned to buy the structure, next door to La Hacienda restaurant, on contract for $45,000, with $2,500 down and monthly payments of $500 until Nov. 8, 2022, according to a complaint filed by the Indiana attorney general's office.
  
  In 2007, Holstein had executed a promissory note for $100,000 and secured the debt with a mortgage on 2614 S. Madison, records show. He had promised Mutual Bank to repay the commercial loan by March 30, 2012.
  
  Holstein is accused of failing to notify Mayse that on Nov. 9, 2012 — one day after she made a partial down payment of $2,000 — he had renewed the commercial loan with the bank and continued to secure the debt with a mortgage on 2614 S. Madison. In December of 2012, Mayse paid Holstein another $1,500.
  
  On Sept. 30, 2013, Holstein filed for Chapter 13 bankruptcy, and three months later he surrendered 2614 S. Madison to the bank, which had filed a foreclosure action in court.
  
  According to the complaint, Indiana law required Holstein to provide Mayse written disclosure of the mortgage placed on the property by the promissory note.
  
  The complaint alleges that Holstein has become unfit to practice due to professional incompetence and asks the Indiana Real Estate Commission to impose appropriate disciplinary sanctions. Holstein couldn't be reached for comment. Phone numbers for his real estate office have been disconnected.

Source: Real estate broker faces discipline.