Article Courtesy of The Tallahassee Democrat

By Rocky Scott
Posted on Saturday, September 10, 2005

A clause in Golden Eagle homeowners' documents allowing Twin Action Realty to collect commission on sales it doesn't originate has been challenged in a complaint filed with the state agency that licenses real estate agents.
"I was just fed up with the whole thing," said Calynne Hill, a real estate agent and part owner of Hill Spooner & Co., after her company filed a complaint against Twin Action Realty Inc. with the Florida Department of Business and Professional Regulation.

Hill had a copy of a letter from DBPR saying the complaint had been received and was being investigated. DBPR officials would not confirm or deny the complaint, which was filed by mail Aug. 15.

Requests for comment were referred to Richard Powers, an attorney for the company.

Powers said he had not seen the complaint. He said it was up to real estate agents to be familiar with neighborhood or association covenants and restrictions and to advise potential buyers of them.

Hill said the heart of the complaint is a paragraph in the Golden Eagle Homeowners Association covenants and restrictions that allows Twin Action to collect 5 percent on home sales and 10 percent on lot sales.

The commission is to be paid to Twin Action even if the company is not involved in the sale of the lot or the home, and it must be paid each time the property is sold, according to the covenant.

Andy Graybar, a Golden Eagle resident, said the language was placed in the covenants and restrictions by the homeowners association after Twin Action purchased the land.

Graybar went to court in an effort to have the language changed, even though he is not affected by the covenant, but a judge ruled against him. He said he was appealing that decision.

Golden Eagle is off Thomasville Road, north of Bannerman Road. It began development in 1985 and includes a golf course, gated entrances and several homes in the $1million price range.

Covenants and restrictions are legal rules and regulations that apply to specific housing areas, usually divisions or subdivisions. They are public record and can be changed at a meeting of a homeowner's association.

Kevin Vaughn, president of the Golden Eagle Homeowners Association, said he was aware of the covenant in question.

He said he thought changing the covenant would involve approval of two-thirds of the more than 900 homeowners in Golden Eagle.

Covenants are not part of a mortgage. They usually are included with sales offers and should be read before any document is signed, said Nancy Linnan, a Tallahassee real estate attorney.

Twin Action bought two sections of Golden Eagle after former Tallahassee developer Mark Conner sold the property.

Hill said she listed a home on March 30 this year, and the next day, the owners were contacted by Twin Action and given a copy of the language in the homeowner's covenants and restrictions, including the commission language.

A short time later, Hill said, Twin Action filed a lien against the property, saying it was owed $41,750 in commission fees. The lien blocked the sale of the home.

Hill said the two sides negotiated, and she wound up agreeing to pay Twin Action $10,000 - half of her commission - to release the lien so the sale could go through.

Powers said he had not seen the complaint filed with DBPR, but he said he was familiar with some of the liens that have been filed by Twin Action Realty.

"I will say this," Powers said. "I have researched Florida law and not found anything that would prevent the enforcement of those covenants."

If DBPR finds in Hill's favor, the agency can take several courses of action, according to Linnan, including license suspension.

DBPR officials also would not give any indication when a ruling on the complaint might be forthcoming.