Chapter 5 - Office Inspections and the Disciplinary Process Flashcards
What does “legally sufficient” mean regarding a complaint against a broker?
A complaint is legally sufficient if it contains facts indicating that a violation of any of the following has occurred:
- Florida Statute
- Any existing, legally enacted DBPR rule
- Any existing, legally enacted FREC rule
When a complaint against a broker has been filed, investigated, and found to be legally sufficient, what is the next step?
DBPR will open an investigation of the facts of the complaint.
If filer of the complaint pulls the complaint, DBPR can continue with its investigation on its own.
A copy of the complaint will be sent to the license or his attorney.
What is a stipulation in a FREC complaint investigation, and when is it used?
An agreement as to the facts of the case and the penalty reached between the Dept of Real Estate and the license e Must be approved by FREC to be effective. FREC may deny the stipulation and require additional penalties other than those agreed upon in the stipulation.
What happens at the conclusion of a formal hearing of a complaint against a broker?
The administrative law judge enters a recommended order that includes the judge’s findings of fact and conclusions of law and the recommended penalty.
What happens to a sales associate’s license when his supervising broker’s license is suspended or revoked?
It is placed on involuntary inactive status but can be reactivated by moving to another broker.
When would a notice of non-compliance be issued to a broker?
for minor violations that don’t affect the public and can be cured easily: i.e. sales associate serving as an officer of the brokerage firm; broker failing to register a trade name; improper office signage; neglecting to sign the escrow reconciliation when the account balanced.
If cure the violation within 15 days of notice, all is OK. If not, a citation may be issued (and a fine imposed)
How many days does a broker have to pay a citation or file an objection?
Thirty (30) days
What is the ONLY violation that is also a first degree misdemeanor?
Providing a rental information list that contains inaccurate or expired information.
When will a payment from the Recovery Fund NOT cause an action against a broker’s license and what costs will be reimbursed to a broker?
If the broker has complied with the FREC’s EDO and disbursed funds in accordance with it, then later the aggrieved party successfully sues the broker, the Fund will pay the broker up to $50,000.00 to cover the payment of the deposit to the successful litigant, and the broker’s attorney’s fees and court costs.
What happens when funds are paid from the Recovery Fund based on a consumer complaint, and what will be paid?
If a consumer files a claim on the recovery fund, they only get up to $50,000 for their loss. They do NOT get attorney’s fees and court costs. Must prove they got a judgment against the broker, and the broker is uncollectible to recover the claim. No more than $150,000.00 is paid out on any one broker in the aggregate.
Broker’s license will be suspended until he pays back all sums paid from the Fund, plus interest and costs.
What is the criminal penalty for practicing real estate without a license?
Third-degree felony: Fine up to $5,000 and up to 5 years in jail.
