A property management firm broker had her license suspended because the Colorado Real Estate Commission found evidence of alleged misconduct, including failing to deliver monthly rental proceeds.
Holly Dalton (also known as Holly Nuss) is the employing broker for Premiere Properties and Management, also doing business as Encore Properties.
Investigators with the state Department of Regulatory Agencies’ (DORA’s) division of real estate received “numerous complaints” from property owners who said that Dalton also failed to account for tenants’ security deposits and wouldn’t respond to email or phone messages, the commission said in a statement.
It issued a subpoena for Dalton’s business bank records and examined those records after “several attempts” to conduct an on-site financial audit were “unsuccessful.”
“The license law requires that all money received in connection with property management agreements, such as rents and security deposits, be placed in an escrow account,” said DORA Director Marcia Waters in a statement.
“There are stringent regulatory requirements for real estate brokers who handle the funds of others. These regulations are in place to ensure that consumers feel confident that the real estate brokers they conduct business with are honest, knowledgeable and competent.”
Dalton is facing license revocation, along with a maximum fine of $35,000, for the following violations:
- Failure to account for funds received
- Converting, diverting, commingling funds
- Unworthy, incompetent practice
- Dishonest dealing
- Record keeping requirements
Earlier this year, the Better Business Bureau (BBB) of Southern Colorado issued a warning to consumers, advising them not to do business with Dalton’s property management firm.
The BBB cited complaints about the brokerage’s failure to respond to written and verbal communications from property owners, and the withholding of funds for “unsubstantiated work.”