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Real estate rep kept mum, lost license

Posted by: Jane Friedmann under Businesses in hot water, Scams, Whistleblower Updated: May 12, 2010 - 11:02 AM

Maxine Sandberg of JF Realty was fined $10,000 and lost her real estate salesperson's license for failing to fully disclose basement water problems in a Hibbing house she was helping sell, the Minnesota Department of Commerce announced last month.

The seller’s disclosure form stated “minimal spring seepage – has been repaired.” But after moving in two years ago, the buyers noticed the basement was wet. They removed paneling and found green and black stains and rotted framing.

The contractor they called to inspect the damage had previously given an estimate to Sandberg to fix it, but the repairs weren’t done.

In addition to revoking Sandberg’s license, the state fined JF Realty broker Stacey Frahm $15,000 and ordered her to complete a 30-hour broker course.

 

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