Gold Coast Chapter 6:
Florida courts have defined moral turpitude as:
"the idea of inherent baseness (lack of moral principles; bad character) or depravity (moral corruption; wickedness) in the private social relations or duties owed by man to man or by man to society".
The maximum administrative fine per violation of F.S. 475 is:
$5,000.
The order of penalties ranging from lowest to the highest is:
(Lowest) Reprimand; fine; suspension; revocation or denial (highest).
The following action is the only activity that is classified in F.S. 475 as a first degree misdemeanor, which is punishable by a fine of up to ($blank) and/or imprisonment not to exceed (blank):
* Violating the requirements concerning rental lists, information, and contracts; $1,000; One year.
There are 3 separate entities capable of imposing discipline:
- criminal courts; - civil courts; - administrative agencies.
Examples of a second-degree misdemeanor include, but are not limited to:
- disseminating false or misleading advertising; - any sales associate who collects money in connection with any real estate brokerage transaction, whether as a commission, deposit, payment, rental, or otherwise, except in the name of the employer AND with the express consent of the employer.
The licensee is allowed (blank) after receiving a Notice of Noncompliance to (blank). Failure to comply with the notice results in (blank) or (blank):
15 days; Correct the violation; Issuance of a citation; Full disciplinary proceedings.
(Step 3- Probable Cause Panel) The panel has (blank) days in which to (blank). Once a (blank) has been received, the panel has (blank) days to recommend (blank) or (blank):
15; Make a request for any additional information; Complete report; 30; Dismissal of the case or; The issuance of a formal complaint.
(Step 4- Administrative Complaint) The Commission, by rule, allows (blank) days for the respondent to file a(n) (blank). If the respondent fails to file an answer to an administrative complaint, the Commission will (blank). The (blank) requires the respondent to state (blank):
21; Election of Rights form; Proceed with a hearing; Election of Rights form; Whether or not he/she disputes the allegations in the complaint.
Once licensed, all licensees are required to report to the Department within (blank) of being (blank) or found (blank), or having (blank) or (blank) to a (blank) in any jurisdiction:
30 days; Convicted; Found guilty of; Pled nolo contendere or guilty; Crime.
Failure to notify the Commission in writing within (blank) days after pleading guilty or nolo contendere to, or being convicted or found guilty of any crime in any jurisdiction can result in (blank) to (blank) and a(n) (blank) for first offenses or (blank) for subsequent offenses:
30 days; Suspension; Revocation; Administrative fine of up to $500 to $2500; $1,000 to $5,000.
The term of probation is (blank), unless stated otherwise:
90 days.
Conspiracy:
A conspiracy occurs when a broker forms a scheme or design with another person with the intent to defraud a third party.
(Step 3- Probable Cause Panel) If probable cause exists, (blank):
A formal complaint is filed.
The civil penalty imposed for the unlicensed practice of real estate is:
A minimum of $500 and a maximum of $5,000.
Reprimand:
A reprimand is a minimum penalty for all listed violations. A reprimand is criticism from the Commission that notes that the conduct of the licensee is not considered satisfactory. A reprimand may be given with or without a letter of guidance that advises the licensee regarding conduct that is acceptable.
Merchantable title is:
A title to a real property that is clear and free from encumbrances, litigation, and other defects, and that can be readily sold to a reasonable buyer or mortgagee.
(Citation) The licensee may (blank) and pay (blank) listed in the citation or (blank). If the citation is not (blank) within (blank), the (blank) becomes (blank). The subject has (blank) from the (blank) to (blank):
Accept the penalty; The fine; Go through the formal hearing process; Disputed; 30 days; Citation; A final order; 30 days; The date that the citation becomes a final order; Pay the fine.
(Step 4- Administrative Complaint) If the Commission approves the stipulation, the Commission's final order is entered which (blank). If the Commission does not approve the stipulation, (blank):
Accepts the terms of the stipulation; The case proceeds to a hearing (Step 5).
The following are examples of actions pertaining to real estate licensees, which constitute a third-degree felony:
Acting as a broker/sales associate without being the holder of a valid and current active license; Knowingly giving false or misleading information in the course of applying for or obtaining a license; Stealing or reproducing an examination administered by the Department.
(Step 4 of disciplinary process) Once the Probable Cause Panel determines that probable cause exists, a(n) (blank), also known as a (blank), is filed against the individual who is the subject of the complaint, referred to as the (blank):
Administrative complaint; Formal complaint; Respondent.
Being found guilty of fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing by trick, scheme, or device, culpable negligence, or breach of trust in any business transaction can result in a(n) (blank) and a (blank) FOR FIRST OFFENSES, or (blank) and (blank) FOR SUBSEQUENT OFFENSES:
Administrative fine of $1,000 to $2,500; 30-day suspension to revocation; $2,500 to $5,000 fine; 6 months suspension to revocation.
The Division handles (blank), (blank), and (blank) in disciplinary proceedings against licensees:
Administrative functions; Investigations; Prosecution of complaints.
The Florida Real Estate Commission (FREC or the Commission) can impose a(n) (blank) penalty against a licensee:
Administrative.
Occasionally, the Commission uses its (blank) powers to assist citizens in the event of fraud by a licensee. The Commission may make the (blank) of improperly collected commission part of the order of (blank) with a stipulation that the (blank) will not be removed until (blank):
Administrative; Return; Suspension; Order of suspension; The money is voluntarily repaid.
A complaint is a(n) (blank) by a (blank) that a (blank) of the (blank) or a (blank) has occurred. The Division handles real estate related complaints made against both (blank) and (blank). A complaint must be submitted in (blank) to (blank):
Allegation; Complainant; Violation; Law or a rule; Licensed and unlicensed individuals; Writing; The Department, Division of Real Estate Consumer Complaint Section.
(Step 5 of the disciplinary process) If a respondent does not dispute the facts, the case is brought to the Commission for (blank). The respondent is entitled to (blank) to (blank) that could (blank), if taken into consideration by the Commission:
An informal hearing; Present testimony; Explain mitigating circumstances; Reduce the punishment.
(Step 5 of the disciplinary process) If the respondent disputes material facts, the case will (blank) before a(n) (blank) from the Division of Administrative Hearings (DOAH), which is (blank) part of the (blank) or the (blank):
Be scheduled for a formal hearing; Administrative law judge; NOT; Department or Commission.
(Step 2- Investigation) After investigation of a complaint involving an UNLICENSED individual, the investigator may issue a (blank) before (blank) and (blank). The (blank) will make a decision whether to (blank) or (blank) with a(n) (blank):
Cease-and-desist order; Completing their report; Forwarding it to the OFFICE OF GENERAL COUNSEL (OGC); OGC; Close the case; Prosecute; Administrative complaint.
Minor violations may be dealt with by issuing a (blank) or a (blank):
Citation; Notice of noncompliance.
Both the Department and the (blank) can refer suspected violations of law discovered during an investigation to the (blank) for (blank) and possible (blank):
Commission; State Attorneys Office; Investigation; Prosecution.
Administrative fines may be imposed by the (blank) for (blank) in amounts up to (blank) per offense:
Commission; Violations of law or rules; $5,000.
A complaint analyst reviews the (blank) or (blank) that (blank) to determine if (blank):
Complaint form or letter; Describes the alleged violation; The complaint is legally sufficient.
A legally sufficient complaint is one that alleges a violation of law or rule has occurred and (blank). The Division must (blank):
Contains sufficient supporting evidence; Investigate legally sufficient complaints.
Conversion:
Conversion occurs when a broker uses the funds or other property that belongs to another for his/her personal or business use.
Failure to account is a form of (blank):
Conversion.
A third-degree felonies are subject to (blank), and punishable by (blank) and/or (blank):
Criminal court proceedings; Criminal fine of up to $5,000; Imprisonment of up to 5 years.
Criminal penalties are imposed by (blank). A violation of F.S. 475 may be a (blank) or a (blank):
Criminal courts; First or second-degree misdemeanor; Third-degree felony.
Corporations cannot be imprisoned, although a (blank) may be levied. Imprisonment is possible for (blank) and (blank) of corporations who are guilty of violations:
Criminal fine; Officers and directors.
A sales associate who forgets who forgets to collect an escrow deposit, as specified in a sales contract, may be charged with:
Culpable negligence.
(Step 5- Formal/Informal Hearing) The Commission may (blank) a licensee who fails to respond to a subpoena. If an unlicensed person fails to comply with a subpoena, a(n) (blank) may be obtained. Violation of the (blank) could result in a $500 fine:
Discipline; Court order; Court order.
The (blank) routinely (blank) and (blank) licensed real estate professionals to ensure compliance with rules and regulations. It determines if complaints made against licensees should be (blank):
Division; Inspects and audits; Investigated for alleged violation of the law or rules governing the profession.
A citation can be issued for specified violations by the (blank) when (blank) or if (blank) prior to the (blank):
Division; No substantial threat to the public health, safety, and welfare exists; The potential for harm has been removed; Issuance of the citation.
Mediation can be used for the resolution of violations that are (blank) or that (blank):
Economic in nature; Can be remedied by the subject of the complaint.
The goal of the Division's brokerage office inspection and audit program is to (blank). Each office is visited approximately every (blank). The investigators conduct both (blank) and (blank) investigations:
Ensure broker compliance with Commission rules and regulations; 3-5 years; Real estate and Appraisal.
The Commission can give consideration to either "mitigating" or "aggravating" circumstances. Mitigating circumstances are considered to be (blank), and (blank). Aggravating circumstances (blank).
Extenuating** (serving to lessen the seriousness of an offense); Reduce the degree of culpability; Add to the injury caused by the act.
Failure to account:
Failure to account is a form of conversion that occurs when a broker is required to produce money or property that belongs to another in the normal course of business and either cannot or will not produce the money or property.
No one may disseminate or cause to be disseminated any (blank) or (blank) information by any means for the purpose of (blank):
False; Misleading; Offering for sale, lease, or rent any real estate located in this state.
Administrative responsibilities include ministerial services such as:
Filing, record keeping, and other clerical functions pertaining to real estate licensees.
(Step 6 of the disciplinary process) A (blank) of the Commission reviews the administrative law judge's (blank) together with any exceptions. The (blank) is composed of (blank) except (blank). The Commission then (blank):
Final order panel; Recommended order; Final order panel; All Commission members except those who served in the probable cause finding; Enters its final order.
(Step 7- Judicial Review (Appeal Process)) If the licensee does not agree with the (blank) of the (blank), a (blank) may be filed with the Florida District court of Appeals within 30 days of the (blank). The review of the case by the district court can either (blank) or (blank) the (blank) of the (blank):
Final order; Commission; Petition for review; Final order; Affirm or reverse; Final order of the Commission.
Civil penalties are:
Fines or other financial payments imposed by a state or federal agency for violation of laws or regulations.
The Commission adopted the "Notice of Noncompliance Rule" to handle (blank) by licensees. A violation is considered to be (blank) if it (blank):
First time minor violations; Minor; Does not result in economic or physical harm to persons or adversely (harmfully or unfavorably) affect the public health, safety, welfare, or create a significant threat of harm.
(Step 3- Probable Cause Panel) The panel acts much like a (blank) to determine if (blank). It does not (blank), only (blank):
Grand jury; Probable cause exists; Determine guilt or innocence; The probability of guilt.
A notice of noncompliance must (blank) which the licensee has (blank), and (blank) the licensee on actions necessary to comply:
Identify the rule; Violated; Provide information to assist.
If a mortgage or other liens (a right to keep possession of property belonging to another person until a debt owed by that person is discharged) exist against a property, the broker must:
Inform a prospective buyer of such conditions prior to the payment of any portion of the sales price. **It is fraudulent and dishonest dealing for a broker to offer property for sale knowing that the title of a property is un-merchantable.
The Commission considers mediation to be an acceptable method of dispute resolution for certain legally sufficient complaints. Mediation is a(n) (blank) process with the objective of (blank) to (blank):
Informal; Assisting the complainant and the subject of the complaint; Reach a mutually acceptable resolution.
(Step 2- Investigation) The Department or the Division have the authority to file a(n) (blank) to enforce (blank):
Injunction in circuit court; a cease-and-desist order.
Misrepresentation can lead to fraud if statements are (blank) and (blank). Misrepresentation of value by a licensee could be considered (blank) and might lead to (blank) or (blank). Misrepresentation also includes (blank):
Intentional and relied upon; Fraud; Breach of contract; Breach of trust; Exaggeration in an opinion of value***
The Division of Real Estate (DRE or the Division) within the Department serves as (blank) between (blank) and (blank):
Intermediary; Commission; Department.
Probation:
Is a conditional arrangement in which the Commission allows a licensee to continue to practice real estate services if the licensee completes specified requirements.
Moral turpitude:
Is conduct that is considered contrary to standards of justice, honesty, or good morals.
Misrepresentation:
Is the misstatement or omission of facts.
Promise to resell:
Is when a broker makes a promise to resell or repurchase property at a future date. The broker must abide by the promise or be GUILTY OF FRAUD.
(Step 2- Investigation) Investigators cannot (blank) or (blank) concerning the case. The Department, however, can (blank) to anyone if (blank), and if (blank):
Issue a subpoena or offer an opinion; Issue a subpoena; Requested by the investigator; It is necessary to obtain information not otherwise available.
A civil fine is not considered to be a criminal punishment since:
It is primarily imposed to compensate for harm or wrongful conduct.
(Step 3- Probable Cause Panel) Prosecutors from the (blank) review the (blank) and make (blank) regarding prosecution of the case To the (blank):
Legal section; Investigative report; Recommendation; Probable Cause Panel.
Violations that involve mitigating circumstances will generally carry a (blank) penalty than those that involve aggravating circumstances:
Lesser.
(Step 5- Formal/Informal Hearing) Administrative law judges must be attorneys who have been (blank) prior to their appointment. The respondent by law must be given no less than 14 days' notice of a (blank). The issuance of a formal complaint begins exercise of the (blank) power. The administrative law judge conducts a hearing similar to a trial at which (blank) and (blank) can be presented. All proceedings are electronically recorded. The respondent has the right to (blank) or to (blank) the complaint, the right to (blank) and (blank), and the right to be (blank). The administrative law judge can issue (blank) for (blank) and compel attendance of a witness. A respondent may request that an administrative law judge (blank):
Members of the Florida Bar for at least 5 years; Formal hearing; Quasi-judicial; Testimony and witnesses; Respond to; Answer; Present evidence and cross-examine witnesses; Represented by legal counsel; Subpoenas; Witnesses; Subpoena a witness.
Investigators for the Department are authorized to issue citations and notices of noncompliance only for (blank) specified by (blank):
Minor offenses; The Commission.
(Step 2- Investigation) If the investigator finds that a complaint involves a minor violation of a Commission rule, a(n) (blank) or (blank) can be (blank) to (blank):
Notice of Noncompliance; Citation; Issued; Handle the matter without forwarding an investigative report to the legal section.
If an application for license is denied, the Department must:
Notify the applicant in writing, give reason for the denial, and inform the applicant of their right to request a formal hearing to protest the denial within 21 days.
Filing false documents:
Occurs if a broker clouds the title to real estate by filing false, void, or unauthorized documents in the public record such as liens, contracts, or deeds. The broker is GUILTY OF FRAUD.
Culpable negligence:
Occurs if a broker operates in a reckless, careless, and excessively negligent manner. Culpable negligence is negligence for which one can be held LEGALLY accountable. A sales associate who forgets to collect an escrow deposit, as specified in a sales contract may be charged with culpable negligence.
Denial of license:
Occurs if an individual is deemed by the Department to lack character or competence to deal with the public safety, or is found guilty of acts that could have resulted in the suspension or revocation of a license if the individual had already been licensed.
Concealment:
Occurs when a broker fails to disclose information to a party, to whom the broker has such a duty, and that is material to his/her decision. **Typically, a broker must disclose any fact, report, or rumor concerning the transaction to the principal. If the broker is aware of the ignorance of a customer, however, the broker may have a duty to speak as well.
Breach of trust:
Occurs when a broker violates their duties to the principal in an agency relationship. This includes any actions that put the broker's self-interests ahead of the principal's interests, acting in excess of authority, or misappropriating funds entrusted to the broker by the principal.
The offices of the Division and the Commission are located in (blank) and cannot be moved without the authority of (blank):
Orlando; The Legislature.
(Step 7- Judicial Review (Appeal Process)) During the appeal process, a licensee is (blank) unless a stay of (blank) is granted. A stay will be granted unless (blank). The District Court of Appeals issues the stay and grants a writ of supersedeas, which (blank) and allows (blank) until the case can be heard on appeal:
Out of business; Enforcement; A threat of probable danger to the welfare of the public is shown; Supersedes the action of the Commission; The licensee to continue to practice real estate.
Specified violations can be handled by the issuance of a citation that requires:
Payment of a fine as a penalty.
Revocation (blank) the license. Revocation plus a maximum fine of (blank) is the maximum penalty for misrepresentation, concealment, and obtaining a license by fraud:
Permanently removes; $5,000.
Step 5- Formal/Informal Hearings) Within 90 days following conclusion of the hearing, the administrative law judge submits a(n) (blank) to the Commission based on findings of fact and conclusions of law. The finding of fact and conclusions of the administrative law judge must be based on (blank). All parties are served copies of the (blank), with the original copy delivered to the (blank). A period of 15 days is allowed for the parties to (blank). After the 15-day period has expired, the (blank), together with any exceptions, is delivered to the Commission:
Recommended order; Clear and convincing evidence; Recommended order; Division of Administrative Hearings (DOAH); File exceptions; Recommended order.
A broker cannot (blank) a(n) oral or written opinion that the title to the property being sold is good or merchantable. (Blank) a(n) opinion could be considered as (blank), which is beyond the scope of a real estate license:
Render (provide or give); Rendering; Practicing law.
(Step 2- Investigation) At the conclusion of the investigation, the investigator submits a (blank) to the (blank) that cannot contain any (blank) or (blank) of the (blank):
Report; Division; Personal opinions; Recommendations; Investigator.
If a license is issued by mistake it will be (blank), allowing (blank). If a licensee is under investigation and voluntarily relinquishes their license, the license will be (blank):
Revoked without prejudice; The individual to reapply; Permanently revoked.
A criminal violation of F.S. 475 by a licensee would typically be classified as a (blank), which may be punishable by (blank) and/or (blank);
Second degree misdemeanor; A criminal fine of up to $500; Imprisonment for up to 60 Days;
(Step 6- Final Order of the Commission) For an unlicensed individual, the administrative law judge's findings of fact are sent to the (blank) of the (blank). The (blank) can petition the (blank) for (blank). The unlicensed party can appeal the order:
Secretary of the Department; Secretary's final order; Court; Enforcement against the unlicensed individual.
(Step 2- Investigation) If the complaint is found to be of an extremely serious nature that posed immediate and serious danger to the safety and welfare of the public, the (blank) of the (blank) can order a (blank) or (blank). This order (blank), which is followed by a full disciplinary hearing:
Secretary; Department; Summary; Emergency suspension; Immediately suspends the license.
(Step 2- Complaint) If the complaint is legally sufficient, the complaint is (blank). A (blank) is assigned and a(n) (blank) is (blank). A copy of the (blank) is delivered to (blank). The (blank) may demand information from anyone who may have pertinent information or records:
Sent to the enforcement section of the Division; Case number; Investigator; Appointed; Complaint; The individual against whom the complaint was made; Investigator.
The disciplinary process consists of 7 steps:
Step 1- Complaint; Step 2- Investigation; Step 3- Probable Cause Panel; Step 4- Administrative Complaint; Step 5- Formal/Informal Hearing; Step 6- Final order of the Commission; Step 7- Judicial Review.
(Step 4- Administrative Complaint) A (blank) is an alternative method to settle a charge when a respondent (blank). The respondent and (blank) for the Department negotiate a(n) (blank) in which the respondent, in most cases neither (blank) nor (blank). The respondent agrees to (blank). A (blank) is very much like a (blank):
Stipulation; Does not wish the matter to go to a formal hearing; Attorneys; Settlement agreement; Admits guilt; Denies the allegations in the complaint; The imposition of a negotiated disciplinary action instead; Stipulation; Plea Bargain.
(Step 6- Final Order of the Commission) For a licensee, if the final order were for (blank) or (blank), the licensee would be (blank). The final order (blank) in 30 days during which time the licensee can (blank). The respondent can either (blank) or (blank):
Suspension or revocation; Out of business; Becomes effective; Continue to practice real estate; Accept the final order; File an appeal (Step 7).
Suspension is considered to be a (blank) penalty. The Commission may suspend the license of a licensee for a maximum period of (blank). The (blank) determines the length of suspension. A (blank) suspension for a violation can result in revocation of a real estate license:
Temporary; 10 years; Seriousness; Second. ***
(Step 3- Probable Cause Panel) If the panel determines that there is no probable cause, (blank). In some cases the panel issues a (blank) in lieu (instead) of (blank) that advises the nature of its concern and the appropriate (blank):
The case is dismissed; Letter of guidance; Disciplinary action; Action required of the licensee.
(Step 2- Investigation) If the complaint is found to be of serious nature, but not an immediate threat to the public, the investigative report is forwarded to (blank) for (blank):
The legal section of the Division; Further action.
Revocation is:
The maximum penalty for a violation.
The use of notices of noncompliance citations reduces (blank) and eliminates (blank):
The number of formal complaints; The need for lengthy disciplinary proceedings.
A broker who uses lotteries or trading schemes that involve (blank) is guilty of fraud. Contests where (blank) may be permissible:
The selling of certificates or chances to induce any person to buy real estate; No purchase is required.
The Probable Cause Panel consists of:
Two current members of the Commission or past Commission members, of whom NO MORE THAN ONE CAN BE A LAY MEMBER.
"Subpoena":
Writ (a form of legal command in the name of a court) issued by the court requiring a person to appear as a witness or to provide written information in the case.