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FRE - Associate Pre-licence > Chapter 06 - Violations of License Law: Penalties and Procedures (P12) > Flashcards

Chapter 06 - Violations of License Law: Penalties and Procedures (P12) Flashcards

1
Q

Penalty that can be imposed by the FREC

A

Administrative Penalty

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2
Q

Penalty that can be imposed by the courts

A

Civil or Criminal Penalties

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3
Q

Criminal penalty imposed for violation of rental list requirements

A

First-Degree Misdemeanor

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4
Q

Criminal penalty imposed for acting as a broker or sales associate without a license

A

Third-Degree Felony

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4
Q

Penalty, imposed by a court, that imposes a fine or other financial payment, typically as compensation for harm or wrongful conduct

A

Civil Penalty

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5
Q

Criminal penalty imposed for disseminating false or misleading advertising

A

Second-Degree Misdemeanor

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6
Q

Criminal penalty imposed for knowingly giving false information when applying for or obtaining a license

A

Third-Degree Felony

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7
Q

Criminal penalty imposed on a sales associate who collects money in connection with a real estate transaction other than in the name of the employer

A

Second-Degree Misdemeanor

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8
Q

Criminal penalty imposed for stealing or reproducing a DBPR Examination

A

Third-Degree Felony

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8
Q

Range of penalties for a second-degree misdemeanor (i.e. false advertising or sales associate collecting money directly from a member of the public)

A

A criminal fine of up to $500 and/or imprisonment for up to 60 days

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8
Q

Range of penalties for a first-degree misdemeanor (i.e. rental list violation)

A

A criminal fine of up to $1,000 and/or imprisonment not to exceed one year

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9
Q

Range of penalties for a third-degree felony (i.e. acting as a broker without a license, false information on a license application, stealing or reproducing an exam)

A

A criminal fine of up to $5,000 and/or imprisonment of up to five years

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10
Q

Timeframe within which an administrative complaint must be filed

A

Within five years of the time of the act causing the complaint, or within five years from the discovery of the act with due diligence

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10
Q

Circumstances that could add injury caused by an act, possibly increasing the penalty

A

Aggravating Circumstances

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11
Q

Circumstances that might reduce a penalty

A

Mitigating circumstances

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12
Q

Misstatement or omission of facts that could lead to fraud

A

Misrepresentation

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13
Q

Actions of a broker who violates his or her fiduciary duties to the principal in an agency relationship

A

Breach of Trust

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13
Q

Agent’s failure to disclose information to his or her principal that could materially affect the principal’s decision

A

Concealment

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13
Q

Action required by a broker when a question relating to the title of property arises

A

Advice the prospective purchaser to obtain title insurance or to obtain an attorney’s title opinion

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14
Q

Actions of a broker who uses escrow funds for his or her personal use

A

Conversion

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15
Q

Conversion that occurs when a broker is unable or unwilling to produce money or property that belongs to another

A

Failure to Account

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15
Q

A broker who operated in a reckless, careless, and excessively negligent manner

A

Culpable Negligence

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16
Q

Actions of two or more licensees acting together to defraud a third party

A

Conspiracy

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16
Q

Fraud that a sales associate may be charged with who forgets to collect an escrow deposit as specified in a sales contract

A

Culpable Negligence

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17
Q

Condition under which a broker may be able to use a lottery to induce a person to buy real estate

A

When no purchase is required to participate

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17
Q

Action required by a broker who knows of the existence of a lien encumbering a property

A

Broker must disclose the existence of any and all liens

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17
Q

The maximum administrative fine that may be imposed by the FREC for a violation of a law or rule

A

$5,000 per violation

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17
Q

Maximum FREC imposed penalty for misrepresentation, concealment, or obtaining a license by fraud

A

License revocation, plus a maximum fine of $5,000 per violation

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17
Q

Impact of license revocation on the licensee’s ability to practice real estate

A

Revocation permanently removes the license, preventing further practice of real estate in Florida

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17
Q

The maximum penalties administered by the FREC

A

License Revocation or Denial of License

18
Q

The minimum penalty administered by the FREC

A

Reprimand (criticism from the FREC that notes the licensee’s unsatisfactory conduct)

19
Q

Term that refers to a conditional arrangement in which the FREC allows a licensee to continue to practice real estate services if the licensee completes specified requirements

A

Probation

20
Q

Typical term of probation

A

90 days, unless otherwise stated

21
Q

Type of FREC-imposed penalty that temporarily prevents a licensee from practicing real estate for specified period of time, depending on the seriousness of the violation

A

Suspension

22
Q

Maximum period of suspension

A

10 years

22
Q

Possible consequence of a second suspension

A

License Revocation

23
Q

Licensee action required upon being convicted or found guilty of, or having pred nolo contendere or guilty of a crime in any jurisdiction

A

Report to the DBPR within 30 days (“Criminal Self-Reporting Document”)

24
Q

Penalty range for failure to self-notify the FREC in writing within 30 days of being convicted or found guilty of, or having pled nolo contendere to, or guilty of a crime in any jurisdiction

A

Suspension to revocation and an administrative fine of $500 to $2,500 (for first offenses) or $1,000 to $5,000 (for subsequent offenses)

25
Q

FREC use for a Notice of Noncompliance

A

Handling first time minor violations that do not result in economic or physical harm to persons or adversely affect the public health, safety, welfare, or create a significant threat or harm

26
Q

Time period within which a licensee must correct a violation after receiving a Notice of Noncompliance

A

Within 15 days after receiving the Notice

27
Q

Individual who is the subject of a formal complaint

A

Respondent

27
Q

Provided by the respondent to indicate whether he or she disputes the allegations in a formal complaint

A

Election of Rights form

27
Q

Consequence of failing to correct a violation within 15 days of receiving a Notice of Noncompliance

A

Issuance of a Citation (or full disciplinary proceedings)

27
Q

Steps in the FREC disciplinary process

A

1- Complaint
2- Investigation
3- Probable cause panel
4- Administrative/Formal complaint
5- Formal/Informal hearing
6- Final order
7- Appeal

27
Q

Conditions under which a citation can be issued by the FREC

A

For specific violations when no substantial threat to the public health, safety, and welfare exists or if the potential for harm has been removed prior to the issuance of the citation

28
Q

Actions that take place as part of the Probable Cause Panel investigation (Step 3)

A
  • Review of the investigator’s report by panel of 2 current FREC members or past members to determine the probability of guilt
  • Within 30 days, dismissal of case or recommendation for formal complaint
28
Q

Term that refers to the person who files a complaint that a violation of a law or rule has occurred

A

Complainant

28
Q

Options for licensee who has been issued a citation that requires payment of a fine as a penalty

A

Accept the penalty and pay the fine or dispute the citation within 30 days and go through the formal hearing process

29
Q

Time period after which an undisputed citation becomes a final order

A

30 days

30
Q

Type of complaint that alleges that a violation of law or rule has occurred and contains sufficient supporting evidence

A

Legally Sufficient Complaint

30
Q

Actions that take place as part of processing of a complaint (Step 1)

A
  • Investigation of written complaints against licensed and unlicensed persons
  • Complaint review to determine if they are legally sufficient, requiring investigation (Mediation may be used to resolve some complaints that are economic in nature)
30
Q

Type of order that may be issued by the Secretary of the DBPR for a complaint that is found to be of an extremely serious nature that poses an immediate and serious danger to the safety and welfare of the public

A

Summary (or Emergency) Suspension (license is immediately suspended by the Secretary of the DBPR

31
Q

Type of informal dispute resolution that may be used for the resolution of violations that are economic in nature or that can be remedied by the subject of the complaint, such as failure to maintain an office sign

A

Mediation

31
Q

Type of FREC power that is exercised by the Probable Cause Panel

A

Executive Powers

32
Q

Actions that take place as part of a complaint investigation (Step 2)

A
  • Investigation and determination of probable cause
  • Report submission to the DRE (without personal opinion or recommendations) (Crease and desist order may be issued for unlicensed individual; Complaints of a serious nature may be forwarded for possible legal action and/or result in a summary suspension order)
33
Q

Time when the Probable Cause Panel’s information and deliberations cease to be confidential

A

10 days following a finding of probable cause (filing of a formal complaint)

34
Q

Time period within which a respondent must file an Election of Rights form

A

Within 21 days of the formal complaint (Failure to file results in a hearing)

35
Q

Term that refers to a negotiated settlement agreement between respondent and DBPR attorneys in which the respondent, in most cases, neither admits guilt nor denies the complaint allegations, but agrees to the imposition of a negotiated disciplinary action instead

A

Stipulation (similar to a plea bargain)

35
Q

Type of FREC power that is exercised by the issuance of a formal complaint

A

Quasi-Judicial Powers

35
Q

Condition under which a Writ of mandamus is issued by the District Court of Appeals to restore the licensee’s privileges

A

If the appeal reverses the final order of the FREC

36
Q

Ctions that take place as part of the Formal Complaint handling (Step 4)

A
  • Administrative (Formal) Complaint is filed and served against the respondent
  • Respondent has 21 days to file Election of Rights form
  • Final order entered for FREC-approved stipulation or if not approved, case proceeds to hearing
37
Q

Document filed with the Florida District Court of Appeals within 30 days of the final order by a licensee who does not agree with the final order of the FREC

A

Petition for Review

37
Q

Condition under which an informal hearing is conducted

A

Respondent does not dispute the facts of the allegations in the complaint (respondent can present testimony to explain mitigating circumstances that could reduce the punishment)

37
Q

Actions that take place as part of a Formal Hearing (Step 5)

A
  • Formal hearing (licensee disputes facts) before an administrative law judge (ALJ) from the DOAH with possible subpoena of witnesses
  • ALJ submits a recommended order to the FREC within 90 days after formal hearing
  • Parties have 15 days to file exceptions to the recommended order
38
Q

Actions that take place as part of the Final Order of the Commission (Step 6)

A
  • FREC Final Order Panel (FREC members who were not on the Probable Cause Panel), reviews the ALJ recommended order
  • Final Order Panel can accept the ALJ recommended order or amend it
  • Final order is made by FREC and becomes effective in 30 days
39
Q

Condition under which a licensee may continue to practice real estate during the appeal process of a final order

A

Stay of Enforcement is issued and a Writ of Supersedeas is granted by the District Court of Appeals (will not be granted if a threat of probable danger to the welfare of the public is shown)

40
Q

Licensee’s final appeal option if the District Court of Appeals affirms the action of the FREC

A

Appeal to the Florida Supreme Court

41
Q

Purpose of the Florida Real Estate Recovery Fund

A

Reimbursing members of the public who have lost money as a result of fraudulent actions of licensees

42
Q

Conditions under which reimbursement from the Recovery Fund may be made

A
  • Member of the public must file a civil suit first against the licensee and receive a judgment
  • Licensee’s personal assets were used first but were insufficient to satisfy the judgment
43
Q

Reimbursement limitation amounts from the Recovery Fund

A
  • Single judgment limited to $50,000
  • Multiple judgments limited to $150,000
  • May collect unsatisfied portion of judgment only, not court costs or attorney fees
44
Q

License status of licensee whos actions resulted in a disbursement from the Recovery Fund

A

License is automatically suspended until the money plus interest has been repaid (bankruptcy does not relieve licensee of this obligation)

45
Q

Method by which the FREC can enforce repayment by the licensee

A

FREC has lien against all property owned by the licensee, which can be foreclosed if the money is not voluntarily repaid

46
Q

Source of funds to maintain the Recovery Fund

A

Funded by fees and fines paid by licensees

  • $3.50 per year added for new and renewal broker licenses
  • $1.50 per year added for new and renewal sales associates licenses
47
Q

Conditions under which a licensee is eligible to receive reimbursement from the Recovery Fund

A

Licensee is acting in capacity of buyer or seller only, loses money as a result of fraudulent actions of another licensee, and meets the same eligibility requirements as members of the public

FRE - Associate Pre-licence (19 decks)

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