Chapter 6 - Complaints, Violations, and Penalties Flashcards
Who is assigned the responsibility for investigative functions related to real estate?
The Division of Real Estate (DRE)
What are the seven steps that are involved in the process of dealing with complaints of alleged violations?
- Filing the complaint
- Investigation
- Probably cause
- Formal complaint
- Informal hearing or formal hearing
- Final order
- Judicial review (appeal)
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
Is the Department allowed to initiate an investigation on their own?
Yes, if it has reasonable cause to believe that a licensee has violated a Florida statute, Department rule, or FREC rule
Furthermore, the Department may conduct an investigation without notification to anyone subject to the investigation if the act under investigation is a criminal offense
What is a summary suspension, when would it be issued, and by whom?
An emergency suspension order
In a situation where there are a lot of complaints and lots of other situations that involve many others
The DBPR secretary (or a legally appointed designee)
Are probable-cause proceedings open to the public?
No, and the remaining FREC members are prohibited from attending
What is a formal complaint and when is it filed?
An administrative complaint; an outline of allegations of facts and charges against the licensee
Issued after probable cause is found to exist
What must happen for the licensee to be entitled to an informal hearing?
The licensee-respondent must admit to the alleged facts
What is the final order?
FREC’s final decision as to innocence or guilt and the determination of the appropriate penalty
What are some examples of grounds for denial of an applicant’s request for licensure?
Neglecting to answer completely all questions on the application
Neglecting to forward the proper fees with the application request
Neglecting to correct errors or omissions on applications returned
Failing the complete successfully the required written examination
What are some examples of cause for licensure denial?
The applicant lacked qualifications to register
The applicant did not possess the character required by the provisions of Florida Statutes 455 and 475
The applicant did not possess the general competence to deal with the public, or complaints against him were received by the FREC or the DBPR
The applicant was guilty of acts that would have resulted in revocation or suspension of license had he already been licensed
The applicant acted in violation of any provision of F.S. 475.42 or was at the time subject to discipline under F.S. 475.35
The applicant received assistance or cheated while taking a state exam
What is the maximum period for which the FREC may suspend a license?
Ten years
Revocation of a license is:
Permanent
Exceptions to “permanent” revocation occur when:
A licensee has filed for renewal but has not complied with the continuing or post-licensing education requirements prior to the expiration date or when an individual filed an application for licensure that contained false or fraudulent information
What are the three types of penalties?
Administrative
Civil
Criminal
What are administrative penalties?
Possible penalties include:
Denail of an application for a license; refusal to recertify a license for renewal; revocation of a license; suspension of a icense for not more than ten years; a fine not to exceed $5,000 for each separate violation; and probation, reprimand, citation, notice of noncompliance, or other penalty
What are civil penalties?
May be enforced by the courts if a person has performed any real estate services without a license
View as being sued in a court of law
What are criminal penalties and how may it be punished?
A violation of Florida Statue 475 or any lawful order, rule, or regulation is legally a misdemeanor of the second degree
It may be punishable by a fine of not more than $500 and/or by imprisonment for not more than 60 days
What are first-degree criminal penalties?
Failing to provide accurate and current rental information for a fee
Penalty is a fine of not more than $1,000 and/or up to one year in jail
Ex. selling a rental list knowing it is incorrect
What degree felony is the unlicensed practice of real estate and how is it punished?
Third
A fine of not more than $5,000 and/or up to five years in jail
Can the FREC deny payment of compensation or direct repayment of compensation already paid?
No, but they can issue an order to deny, suspend, or revoke a license and include a stipulation that the compensation already received must be repaid before the order will be vacated (set aside)
What is the Florida Real Estate Recovery Fund?
Under the FREC; created as a separate account in the Professional Regulation Trust Fund to reimburse any person, partnership, or corporation judged by a Florida court to have suffered monetary damages (but not punitive damages) as a result of an act committed by a broker or sales associate
What is the procedure for the Florida Real Estate Recovery Fund?
- Sue licensee and win
2. If buyer/seller cannot collect money, they can go to FREC and dip into account
What is required before a claim for possible recovery be accepted?
A civil suit has to have been filed and a final judgment subsequently rendered against an individual licensee as defendant, not merely against a real estate brokerage, partnership, corporation, limited liability company, or limited liability partnership
Payments for claims arising out of the same transaction are limited, in total, to:
$50,000 or the unsatisfied portion of a judgment claim, whichever is less, regardless of the number of claimants or parcels of real estate involved in the transaction
Payments for claims based on judgments against one broker or sales associate may not exceed, in total:
$150,000
What is a breach (of duty or in contract)?
The breaking of a promise or obligation, either by an act of commission or omission; default; nonperformance