CH. 6 Violations of License Law: Penalties and Procedures

If multiple judgments are awarded against a licensee, the maximum reimbursement from the recovery fund is limited to:

$150,000

The maximum administrative fine per violation of F.S. 475 is:

$5,000

Reimbursement from the recovery fund for a single judgment is limited to a maximum of:

$50,000 or the unsatisfied portion of the judgement, whichever is less

A fee of $________ per year is added for new and renewal licenses for sales associates

1.50

The commission by rule allows:

21 days for the respondent to file an election of rights form, if there is no answer from the respondent the commission proceeds with the hearing

A fee of $_________ per year is added to the license fee for both new and renewal licenses for brokers

3.50

Rendering an opinion of title

A broker cannot render an oral or written opinion that the title to the property being sold is good or merchantable, rendering an opinion could be considered as practicing law

If the licensee does not agree with the final order of the commission:

a petition for review may be filed with the Florida District Court of Appeals within 30 days of the final order

If the probable cause panel determines that probable cause exists, an:

administrative complaint or formal complaint is filed against the licensee

The division handles:

administrative functions, investigations, and prosecution of complaints in disciplinary proceedings against licensees

The final order panel of the commission is composed of:

all members except those who served in the probable cause finding

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 it only determines the probability of guilt

Using lotteries

contests where no purchase is required may be permissable

Second degree misdemeanors

could be disseminating false or misleading advertising or any sales associate who collects money in connection with any real estate brokerage transaction, whether a commission, deposit, payment, rental, or otherwise, except in the name of the employer which may be punishable by a criminal fine of up to $500 and/or imprisonment for up to 60 days

The following violations can be mediated:

failure to maintain an office sign at the entrance of an office failure to register a branch office failure to deliver to a licensee a share of a real estate commission if the licensee obtained a civil judgement and the judgement has not been satisfied

The recovery fund is maintained by:

fees and fines paid by licensees

The division of real estate (DRE) within the department serves as a:

intermediary between the commission and the department

Probation

is a conditional arrangement in which the commission allows a licensee to continue to practice real estate services if the licensee completes specific requirements, the term is 90 days unless otherwise stated

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 product the money or property

A complaint

is an allegation by a complainant (the person who makes the complaint) that a violation of the law or a rule has occurred must be submitted in writing to the department, division of real estate consumer complaint section

A stipulation

is an alternative method to settle a charge when a respondent does not wish the matter to go to a formal hearing

Mediation

is an informal process with the objective of assisting the complainant and the subject of the complaint to reach a mutually acceptable resolution

writ of mandamus

is an order by the court to the commission to restore the licensees privilages

Moral turpitude

is conduct that is considered contrary to standards of justice, honesty, or good morals "the idea of inherent baseness or depravity in the private social relations or duties owed by man to man or by man to society" bookmaking or selling fake licenses

Suspension

is considered to be a temporary penalty, the commission may suspend the license of a licensee for a maximum period of 10 years

A legally sufficient complaint

is one that alleges a violation of law or rule has occurred and contains sufficient supporting evidence the division must investigate these complaints

Revocation

is the maximum penalty for violation of F.S. 475, it permanently removes the license.

A reprimand

is the minimum penalty for all listed violations, it is criticism from the commission that notes that the conduct of the licensee is not considered satisfactory

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

Properties with liens

it is fraudulent and dishonest dealing for a broker to offer a property for sale knowing that the title of the property is unmerchantable

Administrative fines

may be imposed by the commission for violation of law or rules in amounts up to $5,000 per offense

False or misleading advertising

no one may disseminate or cause to be disseminated any false or misleading information by any means for the purpose of offering for sale, lease, or rent any real estate located in this state

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

Culpable negligence

occurs if a broker operates in a reckless, careless, and excessively negligent manner example: 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 safely, 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 or her decision

Conspiracy

occurs when a broker forms a scheme or design with another person with the intent to defraud a third party

Conversion

occurs when a broker uses the funds or other property that belongs to another for his or her personal or personal business use

Breach of trust

occurs when a broker violates their duties to the principal in an agency relationship

The civil penalty imposed for the unlicensed practice of real estate is a minimum fine of $500 and a maximum fine:

of $5,000

Third degree felonies

punishable by a criminal fine of up to $5,000 and/or imprisonment of up to 5 years could be acting as a broker or 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

The Florida real estate recovery fund (the recovery fund) was established for the purpose of:

reimbursing those persons or entities who have suffered monetary damages as the result of violations of F.S. 475 committed by real estate licensees

The order of penalties ranging from lowest to highest are:

reprimand fine probation suspension revocation denial

A complaint analyst

reviews the complaint form or letter that describes the alleged violation to determine if the complaint is legally sufficient

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 (appeal process)

The administrative law judge can issue:

subpoenas for witnesses and compel attendance of a witness, a respondent may request that an administrative law judge subpoena a witness

If a licensee acted in the capacity of a buyer or seller only:

the licensee would be eligible to collect from the recovery fund following the same procedures as any other member of the public

The administrative complaint is served upon the licensee, who is called:

the respondent

First degree misdemeanors

violating the requirements concerning rental lists, information, and contracts is punishable by a fine up to $1,000 and/or imprisonment not to exceed one year