CHARLOTTE — Opendoor is one of the largest real estate brokers in town with more than 1,600 listings, but the iBuying company is, in effect, on probation with the North Carolina Real Estate Commission in Raleigh.
“It’s a serious sanction, and I think Opendoor was prepared to accept responsibility for what happened,” said Janet Thoren, an attorney with the real estate commission.
Last year, people noticed problems with their transactions through Opendoor.
Two brokers from Opendoor are accused of, essentially, using false advertising for several properties.
Opendoor makes instant cash offers on homes online.
They agreed to a consent decree that says:
- They failed to address all material issues noted on a previous buyer’s home inspection report.
- Advertised property having a pool along with hardwood and tile floors when it did not.
- A septic permit allowed for a three-bedroom home when the property was advertised to have five bedrooms.
“These brokers agreed to what amounted to a stayed suspension, which is a very serious sanction,” Thoren said.
The brokers could have their licenses suspended if they didn’t comply with the conditions, which included 30 hours of additional instruction.
The brokers were given 12 months of probation and Opendoor was given 18 months, which means additional violations could result in a license suspension for everyone.
Opendoor released a statement that read:
“This is the first disciplinary action our brokerage or licensees received from the commission. The education offered by the commission was completed in a timely manner resulting in Opendoor’s license remaining active.”
“Consumers need to be careful in every real estate transaction,” Thoren said. “These are some of the largest transactions that the consumer will ever deal with in their lifetime.”
(Watch the video below: Action 9: Study shows 1 out of every 20 Charlotte homes are sold through iBuying)
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