Section 6 Review Flashcards
The 7 Steps in the Disciplinary Process of a licensee implemented by FREC
Complaint Filed Investigation Probable Cause (if any found) Formal Complaint (Administrative complaint) Informal or Formal Hearing Final Order Judicial Review
How long does a licensee have to respond to a notification that a complaint has been filed against them?
20 days
If it is the licensee’s first offence and considered a minor violation the department may issue____ to the licensee as a warning?
a notice of noncompliance
The probable cause panel is made up of two FREC members. One must be__________.
a current real estate licensee
Decisions of the probable cause panel become public ___ days after probable cause has been found.
10
If probable cause is found and the offense is minor, a _________ may be issued.
letter of guidance
If probable cause is found for more serious potential violations ________________ is issued?
Formal Complaint
Licensees have what 3 choices in regards to Election of Rights if a formal complaint is filed?
Not to dispute & waive the right to be heard
Not to dispute & request an informal hearing
Dispute & request a formal hearing
Stipulations are negotiated between who?
the licensee or their attorney and the DRE attorney
Who holds the Informal hearings?
FREC
Who holds the formal hearings when a licensee disputes the charges against them?
Administrative Law Judge
Once the Administrative Law Judge issues the Recommended Order, it is reviewed by FREC who then issues ________
the Final Order
Penalties for being found guilty of complaints made against you can include:
Fines –Up to $5,000 for each offense
License Suspension – Up to 10 years
License Revocation –Permanent loss of the ability to practice real estate in the state of Florida.
A licensee has __ days to appeal a Final Order by filing a petition for judicial review or the Final Order becomes effective.
30
There are three types of penalties that can be imposed for violation of license law
Administrative penalties
Civil penalties
Criminal penalties
The DBPR/DRE has the authority to issue citations for minor violations. The licensee has __ days to accept or reject the penalty. The penalty involved with a citation are fines from $___ to $___ per infraction and a possible education component.
30 days
$100 to $500
Criminal penalties related to real estate
3rd-degree felony = up to $5k fine up to 5 yrs in prison
1st-degree misdemeanor = $1k fine up to 1 yr in prison
2nd-degree misdemeanor = $500 fine up to 60 days in jail
The unlicensed practice of real estate is what level of crime?
Third-Degree Felony
Selling a rental list that is inaccurate is what level of crime?
First-Degree Misdemeanor
Most violations are what level of crime?
Second-Degree Misdemeanor
What is in place to protect members of the public from financial damage in a RE transaction
The Florida Real Estate Recovery Fund
How much can a consumer collect from the FL RE Recovery Fund per single case of misconduct?
up to $50,000.00
How much can be collected from the FL RE Recovery Fund per Licensee?
Up to $150,000.00
What kinds of costs can be recovered from the FL RE Recovery Fund?
only actual amount lost plus Court costs and attorney fees
A payout from the recovery fund trigger what action to be taken against the licensee?
immediate suspension until the licensee has paid back the amount paid by the fund, plus interest.
what is breach of trust?
When someone in a position of trust, acts against the terms of the agreement to the detriment of the principal.
When The DBPR/DRE issues a citation for minor violations. The licensee has ___ days to accept or reject the penalty
30 Days
The penalty cost involved with a citation from DBPR/DRE are fines from $___ to $___ per infraction. Additional education could also be placed on the licensee. See Administrative Code 61J2-24.02 for a complete list under Citation Authority.
$100 to $500
what is commingle?
Mixing trust funds from another with the agent’s personal or business funds.
what is conversion of a client’s funds?
Using clients’ trust funds for your own use.
what is culpable negligence
Failing to use the same care a reasonable person would exercise in a given situation.
what is Failure to account for and deliver
Failing to produce funds held in trust
when is a formal complaint (Administrative complaint) filed?
When probable cause is found
What does the DBPR do after filing a formal complaint against a licensee?
Outlines the facts and charges
sends a copy to the licensee and their broker.
what is fraud?
Deceitful practice with the intent to deprive another of his right, or cause possible harm.
When is a complaint against a licensee legally sufficient?
if it provides accurate evidence admissible in court and sufficient to support a decision or verdict that demonstrate a violation of Florida Statutes Chapters 120, 455, 475, and 61J2 of the Florida Administrative Code.
what is the purpose of mediation?
To assist the complainant and subject of the complaint to reach a mutually acceptable resolution
Who appoints a mediator when there is a legally sufficient complaint?
DBPR
What situation typically leads to a licensee being charged with misrepresentation and fraud?
When they fail to disclose material defects that may effect the value of the property
what is moral turpitude?
dishonest and immoral conduct that is considered contrary to community standards of justice, honesty, or good morals
How long does a broker have to correct the licensee when a notice of noncompliance has been sent
15 days
what is probable cause?
Factual and evidential reasons to believe that a crime may have been committed and should be prosecuted.
When is a formal hearing required?
if a licensee is disputing the facts of the case.
what is a stipulation?
when a Licensee-respondent meets with a DRE attorney prior to a hearing to discuss a settlement /agreement as to the facts of the case and the penalty reached.
What happens if someone receives a subpoena
They are ordered to appear in court in a legal case.
Emergency suspension order (Summary suspension order)
means a licensee may not practice real estate until their case is resolved.
voluntary relinquishment for permanent revocation
A licensee that has had a complaint filed against him or her can voluntarily surrender his or her real estate license. This is a permanent loss of the license meaning the licensee may never hold a real estate license in the state of Florida again. (Not the same thing as “Voluntary Relinquishment.)
If the health, safety, or welfare of the public is in any way in danger due to a licensee who is under investigation the DBPR may issue what?
Emergency suspension order (Summary suspension order)
can a licensee make a claim for an unpaid commission against the recovery fund?
No, they would have to go after the broker who didn’t pay
a complaint must be ___________
in writing
FREC has the authority to ______ a license application, refuse to ______ a license, suspend a license up to __ years, revoke a license, impose an administrative fine, issue a reprimand.
deny
renew
10
How is the real estate recovery fund funded?
fee added to the license fee of new and renewal licenses & fines imposed and collected by the FREC.
