N
orth Carolina real estate agent Joy Cotto had her license suspended for two years after a string of complaints from homeowners who claimed she sold them land lots and hired her husband to build new homes, but these projects were never completed. Fellow agent Frankie Gonzalez Jr. alleged that Joy's husband, Mario Cotto, was not a licensed general contractor, yet he was acting as one.

    Homeowners like Lisa Labelle lost hundreds of thousands of dollars after purchasing lots from the Cotto couple and hiring Mario to build their homes. Labelle claimed she wired $158,000 for land and an existing foundation, but only two partial walls were built before she fired Mario months later. The build was supposed to be complete by April 1, 2024.

    A Queen City News investigation found at least two dozen homeowners with similar stories of unfinished or rotting homes in Lincoln and Mecklenburg counties connected to the Cotto couple. The Canopy Realtor Association fined Joy Cotto $3,000 and ordered her to take an ethics course after determining she violated the Realtor Code of Ethics.

    The North Carolina Real Estate Commission (NCREC) investigated further and found that Joy was aware of the construction issues but continued to sell lots without notification. NCREC Asst. Dir. Charlie Moody said Joy should have known better, given her previous experience in a similar role with her previous husband.

    In May 2025, the NCREC voted to accept Cotto's agreement to a two-year suspension in exchange for dismissing additional allegations. However, Labelle felt the outcome was not severe enough, saying it "really warranted" Joy's license being revoked.

    To avoid a similar situation, homeowners should verify licenses, check complaints, read reviews and ask for references, watch for red flags, and get everything in writing. If work stalls or stops, document everything, send a formal demand letter, file a complaint with the state licensing board, or consider small claims court.