Chapter 6 Flashcards
The process to file a complaint in Real Estate is as follows:
- File a compliant with the Department of Business and Professional Regulation
- When the investigation is complete, it is the responsibility of the FREC to determine the guilt or innocence of a licensee or potential licensee
Next, an investigation
An investigator is appointed if the DBPR feels that the complaint is legally sufficient
An investigation
The answer is given to a Probable Cause Panel, investigating the case. All the information obtained is considered confidential until 10 days after probable cause is found
Probable Cause
Two members of the FREC are appointed by the Chairperson to review the investigator’s report and receive the investigation of the DBPR.
Probable Cause
These two members act as a grand jury: they determine if they believe there is a law violation- not guilt or innocence. They must act in a 30-day period.
Formal Complaint
If probable cause is found, a formal or “administrative” complaint is filed against the licensee involved.
The Department has a limitation of 5 years in which to file the complaint.
Formal Complaint
The licensee is notified in writing and has 20 days to file an answer. The licensee in the complaint will be issued an Election of Rights form, which will explain the hearing process.
Informal Hearing
An informal hearing is held at a meeting of the FREC, usually at its regular meeting time. The licensee is given the opportunity to be heard, to bring witnesses to support his case
Formal Hearing
A hearing officer is appointed from the Division of Administrative Hearings under the Department of Management Services, and a member of the Florida Bar in good standing for at least five years, as provided for under Chapter 120 F.S.
Final Order
is convened of all the members of FREC except those that sat on the Probable Cause Panel in the same action.
Final Order
A Final Order Panel is convened of all the members of FREC except those that sat on the Probable Cause Panel in the same act.
Final Order
The Final Order Panel receives the Recommended Order from the administrative law judge order along with exceptions.
The FREC has the power to accept, reject, reduce, or modify the Recommended Order, with the final order being submitted within 90 days of receiving the Recommended Order.
Judicial Review
The licensee may appeal to the courts if the FREC did not rule in his favor. The licensee must appeal within 30 days to the District Court of Appeals
The Florida Real Estate Commission is authorized to do
deny a license refuse to renew a license suspend a license revoke a license issue citations impose fines impose probation issue Notice of Noncompliance
When a license is denied by the FREC
a copy of the order is mailed to the applicant by registered or certified mail, setting forth the reasons for denial and advising the applicant has 21 days from date of receipt to request a hearing
A suspension of a license
considered a short term, temporary penalty that can last up to 10 yea
No licensee can act in a real estate capacity with a suspended license until the suspension is lifted
Revocation of a real estate license
is permanent and as such it is a very serious punishment
Moral Turpitude
When the Commission refuses to issue a license or renew a license if they feel that the individual does not meet qualification standards of honesty and integrity
Any of the following may be the basis for the denial of a license
- Did not file an application in the proper form or pay the correct fee,
- Did not correct an error or omission on an application,
- Did not take the examination within two years from date of application,
- Did not pass the state exam or cheated on the exam,
Did not prove qualifications for licensure, - Has a reputation for bad business dealings or incompetence,
- Is being investigated by another state for an act that would be a violation of Florida law,
- Has committed an act in the previous year that could have resulted in discipline had the applicant been licensed at the time.
A citation is
is issued for minor violations of the law when public welfare is not threatened
The licensee has 30 days to pay the citation (fine) or request a hearing.
If the licensee does not respond in 30 days, more serious discipline may occur.
Administrative Fines
The FREC has the right under law to fine anyone found guilty of a violation of Chapters 455 or 475 a fine for each violation of the law.
The fine for each offense is not to exceed $5,000 for each violation of Florida Statutes
Probation
is for a period of 90 days starting within 30 days after the filing of the Final Order.
The probation order contains specific instructions to take a class or grant an audit which must be completed in a 90-day period unless the licensee asks and is granted an extension of time.
Noncompliance Notices
is delivered by certified or registered mail
The DBPR allows 15 days for compliance and notifies the licensee of this
The Notice of Noncompliance can only be issued for an initial offense
Penalties issued by a court of law
The penalty for a First Degree misdemeanor is not more than $1000 fine (for each offense) and/or not more than one year in jail
Second Degree misdemeanor are all other licensee violations (Chapter 475) not listed above. Criminal violations include a fine up to $500 and imprisonment for a period of not more than 60 days.
Penalties issued by a court of law
Unlicensed real estate activity, and falsifying an application are third degree felonies and may be punished with a fine of not more than $5,000 and/or up to five years in jail.
Real Estate Recovery Fund
The maximum the fund can have is $1 million dollars and when it reaches that level, surcharges on licenses are suspended until the fund drops to $500,000
Individuals who are not eligible for compensation from the Fund are
a spouse of the judgment debtor
a licensed broker or sales associate who acted as a single agent or transaction broker in the transaction
a person whose claim is based on a real estate transaction where the licensee was an owner or controlled the property involved in the transaction or when the licensee was not acting as a broker or sales associate,
a person whose claim involves atransaction in which the broker or sales associate did not have a valid, current active license,
a real estate brokerage corporation, partnership, limited liability company or limited liability partnership.
