Chapter 6 Flashcards
What type of penalties can be imposed by FREC?
Administrative Penalties
What type of penalties can be imposed by the courts?
Civil or Criminal Penalties
What is a Civil Penalty?
Penalty imposed by the court that imposes a fine as compensation for wrongful conduct
What is the criminal penalty imposed for violation of rental list requirements?
first degree misdemeanor
up to 1 year in prison
up to $1000 fine
What is the criminal penalty imposed for acting as a broker or sales associate without a license?
Third degree felony
5 years in prison
up to $5000 fine
What is the criminal penalty imposed for disseminating false or misleading information?
Second degree misdemeanor
What is the criminal penalty imposed for knowingly giving false information when applying for a license?
Third degree felony
5 years in prison
up to $5000 fine
What is the criminal penalty imposed for a sales associate collecting money in connection with a real estate transaction other than in the name of the employer?
Second degree misdemeanor
What is the criminal penalty imposed for stealing or reproducing DBPR examination materials?
Third degree Felony
5 years in prison
up to $5000 fine
What is the range of penalties imposed for a second degree misdemeanor?
Fine of up to $500 and or jail for up to 60 days
What is the difference between mitigating circumstances and aggravating circumstances?
mitigating can make things better, reducing a penalty
aggravating makes things worse and adds on to the penalty
What is misrepresentation?
Misstatement or Omission of facts that could lead to fraud
What is concealment?
Agent’s failure to disclose material information to their principal
What is breach of trust?
when a broker violates their fiduciary duties to their principal
What is conversion?
When a broker uses escrow funds for their personal use
What is an example of culpable negligence for a broker?
a broker who operated in a reckless, careless, and excessively negligent manner, costing a sale
What is a conspiracy?
Actions of 2 or more licensees acting together to defraud a third party
When may a broker use a lottery to induce a person to buy real estate?
When no purchase is required in order to participate
What is the broker’s duty when asked about the title of a property?
The broker must advise the buyer to obtain title insurance or obtain an attorney’s title opinion
What must a broker do if they are aware of a lien on the property?
Broker must disclose the existence of the lien
What is the max amount of a fine that FREC may impose for violation of a rule?
$5000 per violation
What is the minimum penalty administered by FREC
reprimand
What is the maximum penalty administered by FREC?
Revocation of the license
What does license revocation do?
permanently removes a license, preventing further practice of real estate in Florida
What is the typical length of the probation period?
90 days
What is the maximum period of license suspension?
10 years
What could happen if your license is suspended a second time?
revocation
What must a licensee do upon receiving a conviction of a crime?
report it to DBPR within 30 days
When does FREC use notices of non-compliance?
To handle first time minor violations that do not result in economic or physical harm to persons
How long does a licensee have to correct a violation after receiving a notice of noncompliance?
15 days
What happens if you do not correct the violation given in the notice of noncompliance in a timely manner?
You are issued a citation
How many days until an undisputed citation becomes a final order?
30 days
What are the steps in the FREC disciplinary process?
1- Complaint
2- Investigation
3- Probably Cause panel
4- Administrative/Formal Complaint
5- Formal/informal hearing
6- Final order
7- Appeal
What is the name given to the person filing a complaint?
Complainant
What is the type of complaint that contains sufficient supporting evidence?
Legally Sufficient
What happens when the complaint is found to be extremely serious in nature and poses an immediate and serious danger?
Secretary of DBPR issues a Summary (Emergency) Suspension
What is the name given to the person whom a complaint is made about?
Respondent
What is an election of rights form?
Form provided by the respondent to indicate whether they dispute the allegations made in a formal complaint
What is the time period within which a respondent must file an election of rights form?
Within 21 days of the formal complaint
What is a stipulation?
When the respondent agrees to a disciplinary action without agreeing or denying the complaint allegation
When is an informal hearing held?
When the respondent does not dispute the facts of the allegations in the complaint
What is a petition for review?
Document filed with the Florida District Court of appeals within 30 days of a final FREC order when the licensee does not agree with this order
When is a writ of Mandamus issued?
When the district court of appeals restores a licensee’s privileges after a final order by FREC
What can a licensee do if the district court of appeals agrees with FREC’s original decision?
They may appeal with the Florida Supreme Court
What is the purpose of the Florida Real Estate Recovery Fund?
To reimburse members of the public who have lost money as a result of fraudulent actions of licensees
When is reimbursement from the recovery fund made?
When the member of the public files a civil suit against a licensee and receives a judgement
The licensees personal assets are used first but aren’t enough to satisfy the judgement
What is the maximum amount of the reimbursement from the Recovery Fund?
$50,000 per single judgment
Up to $150,000 for multiple judgements
Cannot recover court costs from the fund
What happens to a licensee’s license when their actions resulted in a disbursement from the recovery fund?
Their license is suspended until they repay the money with interest
How can the FREC enforce repayment to the recovery fund?
They can place a lien against all property owned by the licensee
How is the Recovery Fund funded?
By fees and fines paid by licensees
