Sunday, July 10, 2022

Morro Bay real estate firm loses license

State officials recently took away the license of a Morro Bay real estate company that manages properties in San Luis Obispo County for not paying rent money owed to property owners.

In May, Seaside Real Estate's license was taken away by the state. The California Department of Real Estate cited negligence, incompetence, and willful disregard for real estate laws, some of which date back to 2015, according to a report by CalCoast News.


After clients said that Don Hudson and his wife, Sheri Hudson, who owned Seaside Real Estate at the time, were cheating them, the state did an audit of the company's finances for 2015 and 2016 and found multiple violations. The Department of Real Estate says that client accounts were short $187,763 in October 2016.

A state accusation says that Don Hudson mixed up accounts, didn't put accounts into trusts as the law requires, and moved $18,000 to one of his own accounts. Sheri Hudson was also not allowed to be a signer on the client accounts because she was not licensed and didn't have a bond.

In 2018, less than a year after the state filed its charge, Don Hudson gave up his broker's license on his own. Shortly after that, he gave Seaside Real Estate to his daughter, Marissa Hudson, as a gift, CalCoast reported.

Adam Sevim, the owner of three units in Morro Bay, filed a complaint with the state when Marissa Hudson did not give him $13,800 in rent from February and March 2019.

The Department of Real Estate then did another audit. Like her father, Marissa Hudson was found to have broken real estate laws through negligence, incompetence, and on purpose.

District attorneys are in charge of prosecuting real estate fraud and embezzlement. The Department of Real Estate files charges and takes away licenses.

Sevim sued Don Hudson, Marissa Hudson, and Seaside Real Estate on June 3, 2019, because they didn't give him his rent money.

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