The New Hampshire Association of Realtors Inc., in a complaint filed with the New Hampshire Real Estate Commission, has asked that ISoldMyHouse.com be sanctioned for allegedly acting as a broker without a license.

“The Commission should require ISMH (ISoldMyHouse.com) to repay all fees collected from New Hampshire residents and also sanction ISMH at a level commensurate with the scope of violations demonstrated,” the association said in a complaint submitted on its behalf by attorneys Peter G. Callaghan and John M. Sullivan of Preti Flaherty PLLP in Concord.

Yesterday, ISoldMyHouse.com general manager John F. Gallagher denied there was any truth to the allegations.

“Basically, what it is restraint of trade,” Gallagher said. “It’s a lot of sour grapes, and it’s a desperate move on the part of the real estate lobby.”

Listings on ISoldMyHouse.com are similar to a newspaper classified ad, he said. “We’ve harnessed the power of the Internet to enable people to sell their house without a real estate agent.”

NHAR attorney Sullivan said, “The association has asked the real estate commission, who has jurisdiction over these matters, to determine whether they view under New Hampshire law that ISoldMyHouse is acting as a broker. It’s not a restraint of trade.

“There are 10,000 people in New Hampshire who have real estate licenses and follow the real estate commission’s procedures,” Sullivan said. “Some of them are members of our association and some are not, but everyone who is practicing brokerage has to have a license.”

ISoldMyHouse.com is an affiliate of East West Mortgage, whose principal owner is Commerce Bank and Trust of Worcester, Mass.

On a million-dollar house, a real estate broker’s commission is typically around 6 percent, or $60,000, but sellers can list their home on ISoldMyHouse.com for $95, Gallagher said.

“For an additional $295, they (the house seller) can be included in our newspaper ad in The Union Leader, which we run every three weeks,” he said.

New Hampshire Real Estate Commission Executive Director Beth Emmons said she could not confirm receipt of the complaint because of confidentiality guidelines. The commission is responsible for licensing and regulating real estate brokers, sales people and firms.

In general, a complaint filed with the commission will be referred to a commission member for evaluation, Emmons said.

The commission member will disclose the result of that evaluation in public at a commission meeting. Possible outcomes include a request for a hearing, a settlement agreement or a dismissal.

If there is a finding of disciplinary action, the commission can suspend, revoke or deny a license; impose a fine of up to $2,000 for each offense; require education in real estate practice; or issue letters of reprimand. The defendant has 30 days to appeal to the Superior Court.

In its complaint, the NHAR alleges that ISoldMyHouse.com:
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Lists nearly 800 New Hampshire properties and claims to “sell” hundreds of properties weekly.
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Lists properties for a fee, has a tie-in to a National Multiple Listing Service for a fee; and claims ownership of listings.
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Claims to “supply” pre-approved buyers.
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Offers legal forms and advises sellers and buyers.
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Charges fees, including charges to landlords and buyer agents.

ISoldMyHouse.com general manger Gallagher disputes the allegations.

“We don’t charge a license fee to buyer agents. That’s wrong,” he said yesterday.

“We don’t give real estate advice, no,” he said.

He said East-West Mortgage screens potential homebuyers by pre-qualifying them for a mortgage, but ISoldMyHouse.com will accept a buyer’s pre-qualification by another lender.

“We just want to make sure that people don’t go bothering home sellers if they are not financially qualified,” Gallagher said. “That’s why all mortgage companies and banks are licensed; when you call, you want to be pre-qualified to buy a house.”

“We sell hundreds of homes per week,” Gallagher said. “We are the most pro consumer Web site on the Internet as far as I can see. We’re allowing people to sell a house without paying real estate fees.”

Realtors’ attorney Sullivan responded that in the complaint they have stated “East/West Mortgage has an ‘unsatisfactory record’ with the BBB (Better Business Bureau) ... “

“As of Aug. 17, 2004, the BBB (Better Business Bureau) has 807 mortgage lenders in its database, and East/West is one of just two companies with 100 or more complaints in the last three years; 668 of the companies have no complaints,” the filing said.

“On May 26, 2004, East/West Mortgage and its parent Commerce Bank entered into a Consent Decree and cease-and-desist order with the FDIC and the Massachusetts Division of Banks in response to numerous consumer complaints after it was determined that they ‘engaged in unsafe or unsound practices and have committed violations of laws and/or regulations,’” the NHAR complaint said

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