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Real estate seller's license is suspended

Agent rapped for nondisclosure

The Oregon Real Estate Agency has suspended local real estate agent Daniel J. Mollahan's license for 30 days following a series of transactions in which he failed to give proper disclosure.

The order, signed by OREA Commissioner Scott W. Taylor July 24, went into effect Friday.

Mollahan is an agent with Coldwell Banker Pro West and has been the firm's top producer in Jacksonville. He's also a former member of the Jacksonville planning commission.

"What creates the problem here is that we have him doing some things that if he didn't have a license would be completely legal and ethical," said Jack Graham, the agency's regulation division manager who negotiated the matter. "If you have a license and some knowledge that gives you an advantage, you have to disclose that to the other party."

The findings of fact in the stipulated final order refer to five personal transactions by Mollahan from May 19, 1999, to June 28, 2000.

The Brays sued Mollahan and Coldwell Banker Pro West but settled out of court for $30,000. Mollahan said Tuesday under terms of the settlement, there was no admission of guilt. He declined to discuss any of the other findings.

Mollahan bought and sold a second property on South Fourth Street. The property was a nonconforming lot because it didn't meet the 6,000-square-foot minimum for zoning regulations. The buyer was Sandra La Mantia.

"There is no evidence that Mollahan disclosed to La Mantia the property was a nonconforming lot, or that he discussed the inherent conflicts in representing both himself and La Mantia in the transaction," the final order stated.

Mollahan listed his own residence on East D Street on Jan. 24, 2000.

He entered into an agreement with Rand and Cynthia Lebaron. Mollahan indicated there would be no agent involved in the transaction for both parties. The $3,500 earnest money check, payable to Jackson County Title, was not delivered to his broker for processing as was required.

During 2000, the state issued 31 suspensions statewide and revoked 24 licenses (12 when brokerages went out of business and failed to give a forwarding address).

"I sort of downplay the nature of the problem," Graham said. "It isn't inherently unethical. If I thought he was dishonest, I would've revoked his license. We need to get the message across that he has to give disclosure."

Reach reporter Greg Stiles at 776-4463 or e-mail .