ALJDEC decisions subject to certification as final
22F-413-REL · Department of Real Estate · 2022-08-29
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
In the Matter of the Real Estate Activities of:
MARGARET POLLEY, holder of License No. BR045787000,
and
SILVER HOME RENTALS, LLC, holder of Entity License No. LC108439000,
Petitioners
No. 22F-413-REL
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: August 9, 2022
APPEARANCES: Petitioners Margaret Polley and Silver Home Rentals, LLC did not appear. The Arizona Department of Real Estate was represented by Assistant Attorney General Lynette Evans.
ADMINISTRATIVE LAW JUDGE: Tammy L. Eigenheer
_____________________________________________________________________
FINDINGS OF FACT
On or about August 7, 2018, the Arizona Department of Real Estate (Department) issued real estate broker license number BR045787000 to Margaret Polley. The license was inactive and scheduled to expire on August 31, 2022.
On or about January 11, 1995, the Department issued entity license number LC1084339000 to Silver Home Rentals, LLC doing business as Silver Home Realty AZ (Silver Home). Ms. Polley was the designated broker of Silver Home from October 12, 2018, to May 6, 2022. Silver Home’s license is scheduled to expire on August 31, 2022.
Silver Home was incorporated in Arizona on January 10, 1995. Ms. Polley became a member of Silver Home on August 8, 2018.
Audit C22-000080
On or about February 24, 2022, the Department sent Ms. Polley a letter through the online Message Center confirming the date of an onsite audit of Silver Home. The letter requested that Ms. Polley submit certain documents and records through the Message Center by March 3, 2022.
On or about March 4, 2022, the Department called Ms. Polley to inquire about the documents that were due on March 3, 2022, but had not been received. Ms. Polley responded that she had not check the Message Center and asked for an extension. The Department agreed to extend the deadline to March 7, 2022.
On or about March 7, 2022, Ms. Polley sent the Department a message explaining that health and staffing issues were causing a hardship for her to prepare for the audit and requested additional time.
The same day, the Department responded through the Message Center that it would extend the deadline for submitting documents to March 21, 2022, and move the audit date to March 29, 2022.
On or about March 29, 2022, an auditor from the Department visited the Tucson brokerage office which shared office space with a law firm. The auditor was directed to an individual who identified herself as Stephanie. When the auditor asked for Ms. Polley and stated she was there to conduct a scheduled audit, Stephanie replied that Ms. Polley would not be in that day.
The auditor provided Stephanie a subpoena with instructions that it be given to Ms. Polley.
The subpoena required that Ms. Polley appear at the Department on April 12, 2022, and provide all the requested documents for inspection.
On or about April 11, 2022, Ms. Polley sent a message through the Message Center stating in part, “I have been closing the company for the past 6 months. It has not been an easy task. I am so sorry; I do not know what else to do. I have packed up the office and have 50 bins for future information.” Ms. Polley also stated “I have severed all employees and have severed with the Arizona Corporation Commission.”
The Arizona Corporation Commission website reflects that on April 11, 2022, Articles of Termination were filed for Silver Home by authorized agent Margaret Polley.
Pursuant to A.R.S. § 32-2125(C), Silver Home’s real estate entity license terminated effective April 11, 2022.
On or about May 6, 2022, the Department issued separate Cease and Desist Orders (Orders) against Silver Home and Ms. Polley.
On or about June 10, 2022, the Department received an appeal of the Orders from Ms. Polley.
On or about July 5, 2022, the Department issued a Notice of Hearing to Petitioners setting this matter for hearing detailing the alleged violations of Department statutes.
The Department asserted that Petitioners’ conduct constituted violations of A.R.S. § 32-2153(A)(17) and (24) and A.R.S. § 32-2153(B)(8) and (11).
Petitioners did not appear at the hearing. The day before the hearing, Ms. Polley emailed Assistant Attorney General Lynette Evans, in pertinent part, as follows:
I did not want anyone to thing I just set this aside however I will not be attending the hearing . There does not seem any defense for me. Silver Homes Rentals LLC was dissolved and I have no intentions of keeping my license. . . . I am sorry I did not follow the proper protocol while closing the business.
All errors in original.
CONCLUSIONS OF LAW
The Commissioner has jurisdiction over Petitioners and the subject matter in this case.
The Notice of Hearing that the Department mailed to Petitioners at their addresses of record was reasonable, and Petitioners deemed to have received notice of the hearing. See A.R.S. § 41-1092.04; A.R.S. § 41-1061(A).
Pursuant to A.R.S. § 41-1092.07(G)(2) and A.A.C. R2-19-119(B), the Department has the burden of proof in this matter. The standard of proof is by a preponderance of the evidence. See A.A.C. R2-19-119(A).
The evidence in this matter was uncontroverted and established violations of A.R.S. § 32-2153(A)(17) and (24) and A.R.S. § 32-2153(B)(8) and (11).
Petitioners’ failure to participate in either the audit process or the hearing in this matter established that Petitioners cannot be regulated at this time.
Accordingly, the Department established grounds to revoke Petitioners’ licenses pursuant to A.R.S. § 32-2153(A)(17) and (24) and A.R.S. § 32-2153(B)(8) and (11).
RECOMMENDED ORDER
IT IS ORDERED affirming the Cease and Desist Orders issued to Petitioners.
IT IF FURTHER ORDERED revoking Margaret Polley’s License No. BR045787000 and Silver Home Rentals, LLC’s License No. LC1084339000.
In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order shall be five days from the date of the certification.
-54864001
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
001
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
-137160-45720000Done this day, August 29, 2022.
/s/ Tammy L. Eigenheer
Administrative Law Judge
Transmitted electronically to:
Louis Dettorre, Commissioner
Arizona Department of Real Estate-54864001
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
001
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
-137160-45720000