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This North Carolina woman paid $320K for a custom home only to end up with 2 partial, rotting walls — and her real estate agent is suffering the consequences, too

Following years of complaints, North Carolina real estate agent Joy Cotto had her real estate license suspended for two years, reports Queen City News. Homeowners allege Cotto sold them land lots and hired her husband, Mario Cotto, to build new construction houses, but these were never completed.

“Joy is selling lots and new construction homes with her husband acting as the [general contractor], but he is not a general contractor,” said fellow real estate agent Frankie Gonzalez, Jr., in a complaint dated May 8, 2023.

The state’s Real Estate Commission handed down the suspension after multiple homeowners said they lost hundreds of thousands of dollars on homes that were never completed. One of the most vocal homeowners, Lisa Labelle, says she lost more than $320,000 after purchasing a lot and hiring Mario to build a house on it. Today, her dream home is just a few framed walls, some rotting wood and broken promises.

Labelle, too, filed an ethics complaint with Canopy Realtor Association in Charlotte, alleging that Joy Cotto hid the fact that the company her husband owned, Distinctive Homes and Development Group, had not completed a single home before Labelle contracted it to build hers.

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What the complaints against the real estate agent allege

Labelle bought a lot near Lincolnton, NC, from Joy and Mario Cotto and signed a contract for Mario to build her custom home. She wired them $158,000 to purchase the land and an existing foundation. Between that payment and when she fired Mario months later, only two partial walls were standing.

The build was supposed to be complete by April 1, 2024, but Labelle says he barely started it.

According to Frankie Gonzalez Jr., a broker who filed one of the first complaints, “The new construction homes do not progress, her communication is terrible and Mario Cotto, her husband, is non-communicative.”

A Queen City News ‘Unfinished Business’ investigation found at least two dozen additional homeowners had come forward, citing similar stories. In Lincoln and Mecklenburg counties, entire housing developments were littered with unfinished or rotting homes — all of which were connected to Joy and Mario Cotto.

The Canopy Realtor Association determined that Joy Cotto violated the Realtor Code of Ethics. The organization fined her $3,000 and ordered her to complete a 4-hour ethics course within 30 days. She complied, but it wasn’t enough to stop a North Carolina Real Estate Commission (NCREC) investigation.

NCREC Asst. Dir. Regulatory Affairs Charlie Moody told the commission, “The complaining witnesses allege that Cotto was aware that her husband was not completing the construction of the lots that they had purchased. But she continued to list the lots and sell them without any explanation or notification that there were issues with the construction.”

Even more astonishing is that Cotto served in a similar role with her previous husband. “So, we would present to you a case where we say that she should have known that these lots were not — these homes were not going to be built,” Moody said.

In May 2025, the NCREC voted to accept Cotto’s agreement to a two-year suspension of her license in exchange for the dismissal of all additional allegations. She did not admit guilt and can reapply for her license on May 21, 2027. However, Cotto must start her licensing process over, as though she was never licensed.

Labelle called the outcome “a victory,” from the perspective that no one else can become a victim but added the outcome could have gone further: “Two years’ suspension for the amount of evidence that was provided, I think it really warranted… her license being revoked and her not being able to ever sell real estate in North Carolina again,” Labelle said.

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Here’s what to do to avoid a similar situation:

Verify licenses: Use your state’s online license lookup tools to confirm the contractor or realtor is licensed and in good standing.
Check complaints: Look for disciplinary history through state boards or associations.
Read reviews and ask for references: Talk to recent clients, not just the ones they offer up. Asking friends or family for a recommendation can be a good starting point.
Watch for red flags: High-pressure sales tactics, vague contracts and upfront demands for large payments are all warning signs.
Get it in writing: Always insist on detailed contracts that clearly outline timelines, costs, materials and responsibilities. Include what happens if something goes over the proposed time, if possible. And ensure any updates or verbal agreements are reflected in the most recent version of the contract.

How to hold a shady contractor accountable

If you’ve paid a contractor and the work stalls or stops altogether, you do still have options:

Document everything

Keep a paper trail, including contracts, texts, invoices and photos of progress (or lack thereof). You’ll need this proof if you file a complaint or go to court.

Send a formal demand letter

Before escalating legally, send a written demand asking the contractor to complete the work by a specific date within reason. This shows you gave them a chance to fix things.

File a complaint with your state licensing board

If the contractor is licensed, report them to the relevant authorities. In North Carolina, complaints can be filed with the Licensing Board for General Contractors.

Consider small claims court

If the amount is under your state’s small claims limit, you can sue without hiring an attorney. This process is generally easier and more accessible for smaller claims. In North Carolina, the Small Claims Court is for disputes between $5,000 and $10,000, depending on the county.

Whether you’re building a home or buying one, the best way to protect yourself is to do your homework before hiring a realtor or contractor.

Joy Cotto’s story is a reminder that credentials alone aren’t always enough. Before you hand over your life savings, do your homework and trust your gut.