1545 Heights Venture LLC Reprimanded $1,000 Penalty for Sales Agent Supervision Failure

9/20/2024

Hearing No. 243714_____ In the Matter of § Before the Texas Real 1545 Heights Venture, LLC § Estate Commis sion ("Respondent") § ("Commission") § Texas Real Estate Broker § Sitting In Austin, License No. 590748 § Travis County, Texas Agreed Order

Respondent neither admi ts nor denies the truth of the following Findings o f Fact and Conclusi ons of Law and agrees to the entry of this Order and assessment of an administrative penalty.

Findings of Fact

1. At all times relevant to this matter, Respondent was a licensed Texas real
   estate broker and performed brokerage activity as defined under Section 1101.002(1), Texas Occupations Code.

2. Bill Dayne Baldwin was the designated broke r of Respondent at all times
   relevant to this matter.

3. Beginning December 27, 2021, Respondent was the sp onsoring broke r for
   sales agent Jasmine Batteau. On September 19, 2024, the Commis sion and Jasmine Batteau signed an Agreed Order which revokes Ms. Batteau's real estate sales agent's license effective October 1, 2024.

4. From on or about July 18, 2023 through on or about March 2, 2024 ,
   Jasmine Batteau vi olated the Real Estate License Act (the "Act") and Commission's Rules by knowingly submitting fals ified lease applications documents in the name of Derrick Armstrong (hereinafter, "Armstrong") and by negotiating leases based on these fraudulent appl ications and other altered documents .

5. Jasmine Batteau kno wingly submitted appl ic ations in Armstrong's name for
   18 different properties. Armstrong signed lease agreements to occupy 10 different properties as the tenant. Armstrong never occupied any of the properties.

6. Jasmine Batteau negotiated the leases on behalf of Arms trong knowing
   that the applicati ons and the signed leases contained material misrepresentations including, but not limited to, who would occ upy the properties. Ms. Battea u stated to the Commission's investigator her understanding was that Armstrong signed the lease agreements with the intent to use the properties as short term rentals through an on line marketplace such as Airbnb. Ms. Batteau violated her duties as a licensed sales agent to deal honestly and fa irly with all parties and to convey accurate information to the listing agents and landlords that she dealt with in these transactions.

In the Matter of 1545 Heights Venture, L LC Page 2 of 3

1. Jasmine Batteau's multiple acts of fraud, dishonesty, misrepresentation,
   negligence, aiding and abetting oth ers to circumvent the Act, and breach of duty happened under Respondent spons orship and supervision.

2. Respondent has cooperated with TREC's investigation. Bill Dayne Baldwin
   told the Commission's inves tigator that it is not Respondent's pra ctice to review each lease to compare tenant name. Respondent's compliance coordinat or checks that all documents are complete, but they do not cross check the names on the applicati ons.

3. Respondent understands that the broke r is responsible to ensure that the
   sponsore d sales agents exercise competence and integrity when submitting lease applications and when negotiating leases on its behalf. A broker may delegate responsib ility for supervisi ng sponsored ag ent to another license holder but does not relinquish the respo nsibility for ensuring compliance with the License Act.

Conclusio ns of L aw

The acts and omissions on the part of Respondent set out in the Findings of Fact constitute the following violation(s) that a re caus e for the reprimand of the license subject to this Order pursuant to the specific violation(s) cited below. It is further cause for the assessment of an administra tive penalty:

1. 22 Tex. Admin. Code §535.2(a), by failing to properly supervise a sponsore d sales agent.

Order

IT IS ORDERED that the license subject to this Order is reprimanded. IT IS FURTHER ORDERED that Respondent pay an administrat ive penalty of $1,000 by cashier's chec ks or money orders payable to the Texas Real Estate Commission as follows.

1. For 4 payments the sum of $250 is due on the 15th of each month beginning
   on or before October 15, 2024 and ending with the final payment due on or before January 15, 2025.

2. Should the 15th day of any month fall on a weekend or legal holiday, the
   payment is due the next business day.

3. Any amounts paid by Respondent in excess of the required monthly
   payments of $250 go toward the principal amount owed and do not excuse Respondent from making regular monthly payments of at least $250 until the total sum is paid in full.

4. Respondent mu st make all payments set forth above timely and without any
   grace period or n otice from the Commission. Failure to timely pay

In the Matter of 1545 Heights Venture, L LC Page 3 of 3 automatically s uspends the license subject to this Order until all of the remaining balanc e of the administrative penalty is paid in full.

9/20/2024

Chelsea Buchholtz Date Executive Director, Texas Real Estate Co mmission Respondent affirms they are freely joining into this Agreed Order with the above Findings of Fac t and Conclusions of Law. Respondent has been afforded all administrative remedies under the law. Responde nt has been advise d of their rights to a hearing and to be represented by an attorney. Respondent waives these rights and waives all rights to a judicial review of this Order.

9/20/2024DATED:_____________________ _____________________________

1545 Heights Venture, LLC, by Bill Dayne Baldwin, its Designated Broker, Responde nt

9/20/2024DATED:_____________________ _____________________________

John J. Knopic Staff Attorney Texas Real Estate Commission