L6: Violantions Of License Law, Penalties & Procedures

Question 1

Possible answers to the Election of Rights Form in a formal complaint investigation for violations of license
(3)

Answer 1

1) Doesn’t dispute and requests hearing (FREC meeting)
2) Doesn’t dispute and waves hearing and asks for final order/penalty
3) Disputes and requests formal hearing (presided by an administrative law judge)

NB: licensee has 21 days to answer the Election of Rights Form

Question 2

(Legal terms)

Breach of trust

Answer 2

Breaking a promise or obligation by action, omission, default or non-performance.
Will be of legal or moral duty

Question 3

(Legal terms)

Moral turpitude

Answer 3

Conduct that goes against justice, honesty, good morals, or custom.
Ex. Embezzlement, larceny, robbery, bookmaking, etc.

Tends to be a subjective definition, but it’s related to someone’s inability to deal with the public in a fair & honest way

Question 4

(Legal terms)

Concealment

Answer 4

Withholding information of material facts

Question 5

(Legal terms)

Material Fact

Answer 5

A fact that if known, could cause someone to take a different course of action or make a different decision.

NB: Agents can be hold liable for not disclosing material facts or defects they should have been aware of

Question 6

(Legal terms)

Misrepresentation

Answer 6

A statement (written or oral) that is false or misleading

Can be:

• innocent (believe in it)
• negligent (should have known)
• fraudulent (intentional)

Question 7

(Legal terms)

Fraud

Answer 7

Wrongful or criminal deception intended to result in financial or personal gain

Question 8

(Legal terms)

Culpable negligence

Answer 8

Negligent conduct that’s not intentional but has a disregard for the consequences that it will probably cause

Question 9

(Legal terms)

Failure to account or deliver

Answer 9

Failure to deliver personal property to the person entitled to receive it

Question 10

Types of penalties for violations of license

Answer 10

• Administrative (FREC)
• Civil
• Criminal

Question 11

Types of criminal penalties for violations of license

Answer 11

• second-degree misdemeanor (60 days jail/$500); several cases
• first-degree misdemeanor (1y/$1k); only in 1 case: when providing inaccurate, out of date rental info to prospective tenants that pay to receive the information
• third-degree felony (5y/$5k)

Question 12

Real estate recovery fund and maximum payments

Answer 12

Fund that provides reimbursement to any person/partnership/corporation who suffered monetary damages by broker/sales associate during a real estate transaction

Maximum payments:

• claims from a real estate transaction = $50k total
• claims against one real estate licensee = $150k total

Question 13

Types of Administrative Penalties (FREC/DBPR) for violations of license

Answer 13

All imposed by FREC/DBPR:

• license denial
• notice of non-compliance (issued by DBPR) for first-time offenders only
• citation (DBPR) for minor violation (fines & $100-$500)
• probation
• administrative fine, up to $5k
• suspension, up to 10 years
• revocation of license